Policy 370.10 Procurement Policies and Procedures

Policy Owner: Senior Vice President, Administration and Finance, CFO

Subject: Procurement Policies and Procedures

1. Introduction

   In accordance with University System of Maryland (USM) Policy VIII-3.00 USM Procurement Policies and Procedure (hereinafter "USM Policies") revised and approved by the Board of Regents on July 1, 2016, the University of Maryland Global Campus ("the University") has implemented Policy 370.10-Procurement Policies and Procedures (hereinafter "the University Policies") governing procurements by the University.

2. Authority and Delegation

   Pursuant to Education Article § 12-112(a), Md. Code Ann., except as provided in Section 11-203 (e) of the State Finance and Procurement Article, "the University is exempt from Division II of the State Finance and Procurement Article." The President of the University has delegated to the Associate Vice President for Procurement and Business Affairs who has the authority to implement and to delegate, as appropriate, authority to implement these policies and procedures. Authority may be delegated by the Associate Vice President for Procurement and Business Affairs, to Procurement Officers and/or other University officials ("Designees"), as deemed appropriate. Only the Procurement Officer, or other duly authorized representative, may enter into a procurement contract governed under these University Policies on behalf of the University.

3. Purpose

   These procurement policies and procedures are designed to support and facilitate the educational, research, and public service missions of the University System of Maryland and its constituent institutions through the acquisition of goods and services by applying best methods and business practices that provide for public confidence in the System and the University.

   The University Policies establish policies and procedures that are relevant to the University environment while providing for a procurement process of quality and integrity, broad based competition, fair and equal treatment of the business community, increased economy in the procurement process, and uniform procurement procedures. These values promote the purposes of State procurement law, strike a balance between needed institution self-management and the Board of Regents' responsibility to govern the System.

4. Applicability

   1. General Applicability

      1. These Policies and Procedures apply to contracts by the University for the acquisition, rental, purchase or lease of commodities, information technology, maintenance, capital improvements, construction, and architectural and engineering services (all as defined in the USM Policies).

      2. Any procurement contract that was executed before the effective date of the USM Policies shall be governed by those laws, policies and procedures in effect at the time of the contract execution.

      3. Subcontracts and sub-recipients and other agreements entered into by the University in fulfilling its obligations under federal, state, local and private grants and contracts are not procurement actions and are therefore not subject to these Policies and Procedures. Such transactions are subject to review by the University Office of Legal Affairs for legal sufficiency. The Associate Vice President for Procurement and Business Affairs shall provide purchasing oversight and control.

      4. The President, or his designee, may, from time to time, amend these policies and procedures in order that they may remain consistent with current best methods and business practices.

   2. Exclusions

      Except as specifically provided, the USM Policies and the University Policies do not apply to:

      1. The lease, sale, purchase, transfer, disposal or any other action involving Real Property or an interest in Real Property.

      2. The sale, transfer and disposal of surplus personal property.

      3. Collaborative undertakings that support the mission of the University.

      4. Reimbursement contracts for which user eligibility and cost is set by law or by rules and regulations (e.g. Medicaid, student health insurance, etc.).

      5. Intergovernmental contracts or like-business agreements.

      6. Purchases for the purposes of resale or remanufacture and subsequent resale.

      7. Agreements creating contractual employee relationships.

      8. Cultural, entertainment, intercollegiate athletic contracts, and exhibitions or displays on university property.

      9. Surveying and evaluating architecturally, archaeologically, historically or culturally significant properties, and other than as to architectural services, preparing historic preservation planning documents and educational material.

      10. Protection and administration of intellectual property rights.

      11. Housing, food and related supply or service contracts for conferences hosted or attended by the University and the operation of University conference facilities.

      12. Contracts of the University for programs and operations located or implemented out of the United States. In accordance with COMAR 21.01.03.01-1.D.(2)(c), University overseas procurements are exempt from the provisions of State Finance and Procurement Articles that otherwise apply to the University System of Maryland. That aside, acquisition, rental, purchase or lease of supplies (including equipment, vehicles and information technology requirements), services, maintenance, capital improvements and architectural and engineering services made outside of the United States shall be in accordance with written policies and procedures adopted for the European and Asian Divisions and shall be consistent with current best methods and business practices. To the extent practicable the overseas policies shall be in accordance with the procurement methods identified in the University Procurement Policy.

      13. Any procurement or contract to the extent of any conflict with a governing federal law, regulation, assistance instrument, or other requirement; or the terms of any gift.

      14. Contracts for the purchase, use, or development of curricular materials inclusive of course and library materials, in any format, equipment, and related services.

      15. Contracts for procurement related to corporate sponsored research.

      16. Revenue generating contracts such as, but not limited to, pouring rights, bookstore, vending, dining and lodging services, and the like.

      17. High Impact Economic Development Activities certified by the Board of Regents under USM Policy VIII-15.0.

          However, transactions for the above exclusions shall be handled in a businesslike manner as best serves the interest of the University. Such transactions are subject to review by the University Office of Legal Affairs for legal sufficiency. The Associate Vice President for Procurement and Business Affairs shall provide purchasing oversight and control and shall execute the necessary documentation in those instances where the contracts involve the purchasing of goods and services for which the Associate Vice President or the Director of Procurement would sign in the ordinary course of University's business.

5. Procurement Methods

   The University shall use the procurement methods, policies and procedures listed in Sections IV through XI and Appendix A of the University System of Maryland Procurement Policies and Procedures, revised and approved by the Board of Regents on July 1, 2016 ("USM Policies"), with provisions specific, to the University, as appropriate, set forth below.

   1. Simplified Procurement Procedures

      The University has determined that the $200,000 Simplified Procurement limit established in the USM Policies provides necessary flexibility to enable procurements that support and facilitate the educational, research and public service missions of the University.

      Where the Simplified Procurement order does not exceed $25,000, competition is preferred, but is not required. The Associate Vice President for Procurement and Business Affairs is responsible and has authority to handle contract administration at the University. Authority may be delegated by the Associate Vice President for Procurement and Business Affairs, the Director of Procurement, and Procurement Officers and/or other Designees, as deemed appropriate. The preferred method of purchase for these orders is the Purchasing Card in accordance with the policies and procedures set forth at the University.

      Where the Simplified Procurement order is between $25,000 and $200,000, the procurement must be handled by the University’s Office of Procurement and Business Affairs. There shall be competition to the extent practical considering such factors as the availability of vendors, dollar value of the procurement, cost of administering the procurement, time available to make the procurement including delivery time, and sound business judgment. Sole source, single bids or proposals, and emergency orders shall be approved by the Procurement Officers in accordance with guidelines established for such approval under Sections V.D.-E. of the University System of Maryland Procurement Policies and Procedures revised and approved by the Board of Regents on July 1, 2016.

      The Associate Vice President for Procurement and Business Affairs, or designee, has broad discretion in fashioning suitable evaluation procedures for simplified procurements including the procurement methods set forth in Part V herein. The procedures prescribed in Section V.B-Competitive Sealed Bidding and Section V.C-Competitive Sealed Proposals of the USM Policies are not mandatory. At the discretion of the Associate Vice President for Procurement and Business Affairs, Procurement Officers or Designee(s), one or more, but not necessarily all, of the evaluation procedures in V.B or V.C of the USM Policies may be used.

      If using price and other factors, the Procurement Officers or Designees are to ensure that quotations or offers can be evaluated in a manner that is fair, efficient and representative of good, sound business practices. Formal evaluation procedures, establishing a competitive range, conducting discussions, and scoring quotations or offers may be used but are not required. Procurement Officers or Designees may conduct comparative evaluations of offers. Evaluation of other factors, such as past performance does not require the creation or existence of a formal database. Further, such evaluations may be based on information such as the Procurement Officers’ knowledge of and previous experience with the supply or service being acquired, customer surveys, or other reasonable basis.

   2. Formal Procurement Process

      Orders that are reasonably expected to exceed $200,000 require a formal, procurement process in accordance with the procurement methods set forth in Section V of the USM Policies.

6. Approval of Award Actions

   Any procurement award action that requires review or approval by a Vice Chancellor, University System of Maryland, the Board of Regents or the Board of Public Works, shall be forwarded after review by the Associate Vice President for Procurement and Business Affairs. (See Attachment A – Summary of Reporting Requirements.)

7. Procurement Contract Execution

   1. Only the duly authorized representatives named in this policy and in accordance with University Policy 367.00, may enter into a procurement contract governed under these University Policies on behalf of the University.

   2. The University should be the final signatory in the execution of procurement contract documents. Therefore, the contract shall first be signed by the appropriate representative(s) of the contractor with the authority to bind the firm to the terms of the contract after which, the authorized signatories, or their designees, shall sign the contract documents.

   3. A procurement contract with a joint venture may involve any combination of individuals, partnerships, or corporations. The contract shall be signed by each participant in the joint venture in accordance with the USM Procurement Policies and Procedures.

   4. If so delegated by the Associate Vice President for Procurement and Business Affairs or his/her designee through the use of a Purchasing Card or other specifically delegated authority, the University Departments may procure goods and services up to $5000. All procurements greater than $5000 must be executed by the University’s Office of Procurement and Business Affairs.

8. Socio-Economic Policies

   The University shall, to the maximum extent practicable, purchase supplies and services in accordance with Title 14, Subtitles 1 and 3 of the State Finance and Procurement Article of the Annotated Code of Maryland. The University is committed to promoting business with State Use Industries, the Blind Industries and Services of Maryland, and the minority business community.

ATTACHMENT A: Summary of Reporting Requirements

1. Prior notification must be given in writing to the USM Vice Chancellor for Administration and Finance for the following:

   1. All procurements exceeding $1M:

      • Competitive Sealed Bids

      • Competitive Sealed Proposals

      • Unsolicited Proposals

      • Contracts Established by other Institutions or Agencies

      • A/E Services

   2. Sole Source procurements which:

      • Exceed $200,000

      • Involve personal services contract exceeding $50,000

2. Prior approval from the USM Vice Chancellor for Administration and Finance is required for any sole source procurement exceeding $500,000.

3. Prior approval from the USM Board of Regents is required for any procurement exceeding $5 million.

4. Prior Board of Public Works approval is required for:
   1. Capital improvement and service contracts exceeding $1 million;
   2. Modifications to capital improvement and service contracts in excess of $1 million.