2.10—Selection of Vendors

Effective: 06/23/2011
Senate Proposal: No
Responsible University Officer: Chief Financial Officer
Responsible Office: Purchasing Department

Policy Statement

Prior to completing a purchase requisition, the selection of a vendor should be made. The University selects potential vendors for their ability to economically, efficiently, and continually serve the University in its acquisitions of equipment, supplies and services. The University also promotes the use of vendors listed with socioeconomic status.

Policy Requirements

Departments are encouraged to suggest vendors on the purchase requisition with complete addresses, particularly for unusual or nonstandard items. When determining the vendor, departments are encouraged to search for vendors listed with socioeconomic status.

The Purchasing Department staff has the authority for the final selection of the vendor; however, they will follow a requisitioner’s recommendation as much as possible and will consider vendors' socioeconomic status and suspension and debarment status. Past performance of vendors and cooperation with the University are important factors in vendor selection.

Reason for Policy

The University cannot purchase efficiently from all available sources in many lines. The buying power of the University must be concentrated as much as possible with selected vendors to attain the maximum advantages of price and service, while encouraging the use of a vendor listed with socioeconomic status.

Related Policy Information

To comply with Federal Acquisition Regulations (see Additional Information section below), the University requires campus purchasing department to include the following certification on vendor purchase orders issued to a vendor where payment will be made with funds coming directly to the University from the federal government or indirectly through the state government or another agency or entity.

By accepting this purchase order, and fulfilling the terms and conditions of this order, the Supplier warrants that neither the Supplier, nor, to the best of the Supplier's knowledge, Supplier Personnel, is presently under investigation, debarred, proposed for debarment, suspended, or declared ineligible for covered transactions by any federal agency or department. The supplier also certifies that, within the past three years, the Supplier, nor, to the best of the Supplier's knowledge, Supplier Personnel, has/have not been convicted of or had civil judgment rendered against him/her for a fraudulent contract or transaction, violation of federal or state antitrust laws, or the commission of embezzlement, theft, forgery, bribery, falsifying or destroying records, receiving stolen property, or making false statements.

Exclusions

Federal Acquisition Regulations require that the University take appropriate measures to insure that persons or entities that have been suspended or debarred from receiving government funds are not allowed to provide goods or services to the University nor receive payment from the University.

Contacts

Definitions

Socioeconomic Status — A vendor who may be listed as a small business, a small disadvantaged business, a women-owned small business, a veteran-owned small business, a service-disabled veteran-owned small business or a HUBZone small business.

Suspension and Debarment Status — An individual or entity who is prohibited from participating in activities of Federal programs including but not limited to grants, cooperative agreements, contracts of assistance, loans and loan guarantees.

Vendor Selection — Determination of the socioeconomic status and the most economical, efficient, and willing source to continually serve the University.

Responsibilities

Accounting Services — Downloads, on a quarterly basis (January, April, July and October), the debarred and suspended parties list from the Excluded Parties List System (EPLS) and cross references the list against the Michigan Tech vendor database to determine if any vendors have become suspended or debarred. Immediately places any vendors found to be suspended or debarred on vendor hold within the Michigan Tech purchasing system and will be prevented from having any additional purchase orders or payments issued to the vendor.

Purchasing Department — Checks the Excluded Parties List System (EPLS) for all new vendors added to the Banner vendor database. Any vendors found to be suspended or debarred will be immediately placed on vendor hold within the Michigan Tech purchasing system and will be prevented from having any purchase orders issued to the vendor. A notation will be placed on the vendor master record indicating the date and findings of the EPLS verification.

Purchasing Manager — Contacts the vendor and asks them to notify the Purchasing Department if and when their suspended or debarred status changes.

Requisitioning Department — Ensures a search for a small business vendor is done, completes the purchasing requisition suggesting a vendor with socioeconomic status, if applicable, and forwards the purchase requisition to Purchasing Department.

Procedures

In support of this policy, the following procedures are included:

• 2.10.1 Selecting a Socioeconomic Vendor

Forms and Instructions

In support of this policy, the following forms/instructions are included:

• Purchase Requisition (with a revised date of Jun-2010) found at: https://www.mtu.edu/fso/forms/purchasing/.

Appendices

Criteria: Code of Federal Regulations for the Environmental Protection Agency awards,

40CFR31.35 states that grantees and subgrantees may not make any award or permit any award (subgrant or contract) at any tier to any party which is debarred or suspended or is otherwise excluded from or ineligible for participation in Federal assistance programs under Executive Order 12549 "Debarment and Suspension." This executive order was subsequently updated by executive order 12689 to include procurement activities.

Adoption Date

Revisions