Purchasing Policy

TBR Policy Reference: 4:02:10:00

Approved by: President's Cabinet

Original Date Effective: 2014-06-20

Last Modified: 2023-06-12

Purpose

The following statements define the purchasing policies and procedures at Jackson State Community College in accordance with the Tennessee Board of Regents Policy No. 4:02:10:00 and are subject to any and all provisions contained herein. This policy will be revised as necessary to fit the needs of Jackson State Community College operational activities and as necessary to be in conformity with the policies of the College and University System of Tennessee.

Effective January 1, 2022, Jackson State Community College entered into a partnership with TBR Shared Services to manage the bulk of JSCC’s Purchasing Responsibilities, as such we are modifying our current policy to align with TBR’s purchasing policy.

Whenever possible, the various steps concerning purchasing have been arranged in a logical manner. Descriptions of requirements are brief and an effort has been made to avoid repetition. All employees should familiarize themselves with the contents of this policy so that the procurement of goods and services can be processed in an orderly manner. Jackson State Community College reserves the right to refuse the liability encumbered for any purchases that are not within the scope of the policies and procedures outlined in this policy.

The authority for all procurement activities rests in the Office of the President or his/her designee. At Jackson State Community College, the Vice President for Financial and Administrative Affairs has been designated the authority for procurement activities. Any questions concerning the use of this manual should be directed to him/her or his/her representative.

PURCHASING PROCEDURES

SECTION I - INTRODUCTION

The purpose of this section is to provide guidance procedures concerning procurement methods, administration, award and management.

SECTION II – CODE OF ETHICS

Statement of Policy
Employees must discharge their duties and responsibilities fairly and impartially. They also should maintain a standard of conduct that will inspire public confidence in the integrity of the institutions and schools.
General Standard of Ethical Conduct

Any attempt to realize personal gain through public employment, inconsistent with the responsible discharge of that public employment, is a breach of public trust.
Employees shall base all purchases on the principles of competitive bidding consistent with policies of the Board and the institution or school.
Employees shall grant all competitive bidders’ equal consideration, regard each transaction on its own merits, and foster and promote fair, ethical and legal trade practices.
Employees shall avoid misrepresentation and sharp practices, and demand honesty in sales representations whether offered through the medium of a verbal or written statement, an advertisement, or a sample of a product.
Employees shall be receptive to competent counsel from colleagues, and be willing to submit any major controversy through the appropriate appeals processes.
Employees shall accord prompt and courteous reception, insofar as conditions permit, to all who call on legitimate business missions.
Employees shall not use without consent the original designs developed by a vendor for competitive purposes.

Conflict of Interest
It shall be a breach of ethical standards for any employee, in the performance of his or her official duties, to participate directly or indirectly in any proceeding or application, request for ruling or other determination, claim or controversy, or other particular matter pertaining to any purchase, contract, or subcontract, and any solicitation or proposal thereof, in which to his or her knowledge:

He or she or any member of his or her immediate family has a substantial financial interest; or
A business or organization in which he or she or any member of his or her immediate family has a substantial financial interest as an officer, director, trustee, partner of employee, is a party; or
Any other person, business, or organization with whom he or she or a member of his or her immediate family is negotiating or has an arrangement concerning prospective employment is a party.

The determination of whether a substantial financial interest exists shall be based upon the criteria identified in TB R Policy No. 1:02:03: 10, Conflict of Interest, Item 4 (8) 1·3. Direct or indirect participation shall include, but not be limited to, involvement through decision, approval, disapproval, recommendation, preparation of any part of a purchase request, influencing the content of any specifications or purchase standard, rendering of advice, investigation, auditing or in any other advisory capacity.

Gratuities - It shall be a breach of ethical standards for any employee or former employee to solicit, demand, accept, or agree to accept from another person, a gratuity or an offer of employment, in connection with any decision, approval, disapproval, recommendation, preparation of any part of a purchase request, influencing the content of any specification or purchase standard, rendering of advice, investigation, auditing, or in any other advisory capacity in any proceeding or application, request for ruling or other determination, claim or controversy, or other particular matter, pertaining to any contract or subcontract and any solicitation or proposal thereof.
Contemporaneous Employment Prohibited -It shall be a breach of ethical standards for any employee who is involved in purchasing to become or be, while such an employee, the employee of any party contracting with the particular governmental body by which the employee is employed.

SECTION III COMPETITIVE SOLICITATIONS

All purchases shall be based upon the principle of competitive bidding except as herein provided. Whenever possible, all specifications for materials, supplies, equipment and services shall be worded or designed to permit open and competitive bidding for the supplying of the articles, commodities or services to which they apply.

Effective January 1, 2022 the competitive solicitation process for Jackson State Community College is be handled by TBR Shared Services. Please refer to Tennessee Board of Regents Policy No. 4:02:10:00 Section VII. Procurement Process under E Competitive Solicitations under j. Bid Withdrawal, Revision, and Rejection.

Open and competitive bidding must utilize one of the following purchasing techniques:

Specifications based on brand names and produce numbers, reference to brand names, trade names, model numbers or other descriptions peculiar to specific brand products is made to establish a required level of quality and functional capabilities; it is not intended to exclude other products of that level. Comparable products of other manufacturers will be considered if proof of comparability is contained in the bid. It shall be the responsibility of the vendors, including vendors whose product is referenced, to furnish with the bid the specifications, catalog pages, brochures or other data needed to provide an adequate basis for determining the quality and functional capabilities of the product offered. Failure to provide this data may be considered valid justification for rejection of a bid;
Specifications based on standard specifications;
Specifications based on qualified products list;
Specifications based on catalogs, price lists, or price schedules;
Multi-step sealed bidding - The use of a multistep sealed bidding process is required in the acquisition of institutional computer systems involving the purchase of hardware and the development of application software. The multistep bidding process may also be used for the procurement of other products or services, when it is not practical to prepare initially definitive specifications which will be suitable to permit an award based on price. Purchase of materials or services, for which the State of Tennessee Department of General Services, Purchasing Division, has awarded a contract through the competitive bidding process, will be made without adherence to Minimum Notice and Number of Bids, if so desired, provided the vendor meets the bid specifications.

INVITATIONS TO BID

Invitations to bidders shall specify:

The time and place that bids will be received and opened;
The articles or services for which such bids are to be submitted and the specifications for such articles or services;
The amount or number of articles or services required;
The time of delivery;
The amount, if any, of any bid bond or certified checks to accompany the bid;
The amount, if any, of any performance bond which will be required if the vendor is the successful bidder,
The date bid evaluations will be available for viewing; and
Any other requirements, conditions, or information deemed necessary to the purchase.

MINIMUM NOTICE AND NUMBER OF BIDS

The number of bids required and the notice to bidders for solicitation of bids shall be as follows:

The following methods may be used to procure goods and/or services:
1. Small Dollar Purchases. Institutions may make non-recurring purchases totaling less than $25,000, cumulatively in expense or revenue, without documenting any quotes or proposals from multiple vendors. Purchasers should take appropriate steps, e.g. conducting price comparisons, processing appropriate agreement documents, etc., to ensure that such Small Dollar Purchases are made based upon terms, conditions and pricing that are in the best interest of the Institution.

Informal Solicitations. Except as provided in Section 1. above for Small Dollar Purchases, Institutions may make purchases totaling less than $100,000 in expense or revenue, including renewal terms of multi-year awards, based upon written or electronic bids. Institutions shall solicit bids, by sending written documentation specifying the good and/or service being requested with detailed specifications, to at least three (3) Responsive/Responsible Bidders/Proposers. Informal bids do not require an original signature, and bids may be electronically transmitted. Complete file documentation shall be maintained, including documentation evidencing Institution’s efforts to achieve competition.

Formal Solicitations. A formal solicitation process shall be used when the estimated aggregate total of the expense or revenue is $100,000 or more, including renewal terms of multi-year awards. Written sealed bids must be solicited from fifteen (15) vendors or the number of vendors on the Registered Vendors List--whichever is less and to all that request the specific ITB/RFQ/RFP. The Chief Procurement Officer must approve the use of less than fifteen (15) vendors. In addition, solicitations must be sent in a manner that verifies proof of delivery. Please refer to the Tennessee Board of Regents Policy No. 4:02:10:00 Section VI. Procurement Methods under A.3.a for types of formal solicitations acceptable for specific situations.

SECTION IV - PURCHASES OF GOODS & SERVICES $100 or LESS

If the items to be purchased are in the amount of $100 or less, the following 3 alternatives may be used:

An employee of Jackson State Community College has the authority to purchase goods or services required for use in the performance of his duties in the amount of $20 or less through charge accounts at certain outlets approved by the Vice President for Financial and Administrative Affairs. Any purchase made at one of these outlets in the amount of $20 or less does not require the issuance of a purchase order.
An employee of Jackson State Community College may purchase goods or services in the amount of $20 or less on a cash basis. The employee can be reimbursed in the Business Office, through a Petty Cash Voucher. The reimbursement must be accompanied by an invoice or sales ticket for the goods or services purchased, and Jackson State Community College will not pay sales tax on such purchases. A sales tax exemption number is available in the Business Office and will be provided to any employee who elects this method of purchasing items.
An employee of Jackson State Community College may purchase goods or services on a cash basis if $100 or less. These purchases can be reimbursed to the employee, by the Business Office by completing a Check Requisition (See ATTACHMENT A) made out to themselves. The receipt for all items or services purchased must be attached to the Check Requisition. The Check Requisition must be signed/approved by the same Directors, Deans, Vice-Presidents, etc. as required for any other Check Requisition or Requisition for Purchase.

NOTE - All purchases over $100 must have a Requisition for Purchase entered into the electronic SciQuest Purchasing system.

SECTION V VENDORS LIST

Jackson State Community College shall provide a list of vendors which shall be housed in SciQuest. The vendor list is maintained by TBR Shared Services and sync’d with JSCC as needed.

REMOVAL FROM VENDORS LIST

Vendors who fail to respond to a reasonable number of bids or fail to provide adequate goods or services maybe removed from the Vendors List. Reported failure to comply with bids, awards, and/or orders becomes a part of the bidder's file. If a qualified bidder repeatedly fails to respond to Invitations to Bid, the bidder can be removed from all commodity groups. Examples of failure to comply include but are not limited to:

Over shipments
Under shipments
Early Shipments
Late Shipments
Damaged Products
Defective Products
Shipments not in Conformance with Specifications
Unauthorized Substitutions
Billing Errors
Service Deficiencies
Failure to Ship

Other principal causes for temporary or permanent removal from the bid list are:

Unethical Practices
Misrepresentation of Merchandise

Failure of a vendor to perform satisfactorily in any of the above areas may result in a vendor's liability for damages to the institution.

SECTION VI -VARIOUS OTHER PROCUREMENT CATEGORIES

TERM CONTRACTS AND STATE MANUFACTURED ITEMS

When the Department of General Services (generally termed "State Contract") has executed a term contract for materials, supplies or equipment, all such purchases shall be pursuant to the term contract unless Jackson State Community College can purchase the materials, supplies, or equipment at a price lower than the term contract price. Jackson State Community College is required to purchase items and services from other State agencies, (e.g., Department of Correction, Blind Services), when such items or services are available there from and meet the desired conditions and standards.

PURCHASES FROM SMALL, MINORITY AND WOMAN-OWNED BUSINESSES

Jackson State Community College shall actively solicit bids from small, minority-owned and woman-owned businesses in order to obtain a fair proportion of goods and services from such businesses, whenever possible. On an annual basis, information regarding small and minority owned business purchasing will be filed with the Department of General Services, which will consolidate this information into a report to the Legislature. Any changes to the vendors list is made by TBR Shared Services and then sync’d with JSCC list in SciQuest.

EMERGENCY PURCHASES

Purchases of specific materials, supplies, equipment or services may be made in the open market for immediate delivery only to meet bona fide emergencies arising from any unforeseen cause. All bona fide emergency purchases must be approved by the Vice President for Financial and Administrative Affairs, and a written report on the circumstances of any such emergency justifying the purchase shall be prepared and maintained by the institution. All emergency purchases shall, if practicable, he made on the basis of competitive bids.

SPECIAL PURCHASE CATEGORIES

Sole Source or Proprietary Purchases for Goods or Services Costing $25,000or more - Sole Source or Proprietary purchases for Goods or Services Costing $25,000or more may be allowed pursuant to the following:

Sole Source Procurement- Sole source purchases are made only when items are unique and possess specific characteristics that can be filled by only one source

Proprietary Purchase-A proprietary product is one that is manufactured and marketed by a person or persons having the exclusive right to manufacture and sell the product. Marketing is generally controlled by franchises that may include competitive sales at wholesale or retail levels. When it is found that bids may be obtained from different franchises, bid invitations must be issued unless the estimated purchase is less than $25,000.
Factors to be considered in sole source and proprietary purchases Include the following:

Whether the vendor possesses exclusive and/or predominant capabilities or the items contain a patented feature providing superior utility not obtainable from similar products.
Whether the product or service is unique and easily established as one of a kind.
Whether the program requirements can be modified so that competitive products or services may be used.
Whether the product is available from only one source and not merchandised through wholesalers, jobbers, and retailers.
Whether items must be interchangeable or compatible with items already in-place.
Whether the cost of conversion, including but not limited to disruption, retraining, and replacement precludes bidding competitively.
Whether the product is to be used in an instructional setting and the intent is to provide instruction on the specific product or diversity of products.
Other justifications as approved by the Chancellor.

All properly "authorized" sole source may be procured utilizing noncompetitive negotiation.

Whenever specifications are not worded or designed to enable competitive bidding for Goods or Services costing $25,000 or more; or if they specify a single brand, the person responsible for the recommendation shall be required to justify the necessity for the specifications in writing by completing the TBR Sole Source & Proprietary Purchase Justification Form (See Jweb for all forms). This purchase request must also be approved by the Vice President for Financial and Administrative Affairs.

Purchases for Resale in Auxiliary Enterprises

Purchases of items for resale shall be made as follows:
Textbooks and other course related materials may be purchased without adherence to the Policy on Minimum Notice and Number of Bids. All textbook ordering lists and authorization forms must be maintained for audit purposes. Textbooks are handled via a third party Follett who manages the bookstore on campus.
Items for resale for which customers have expressed a preference, and/or promotional items procured under accepted retail merchandising practices, may be purchased without adherence to the Policy on Minimum Notice and Number of Bids.

Appropriate documentation shall be maintained to support the action taken.

Purchases for Libraries

Excluding Materials and Supplies Identified for Consumption by the Purchases of materials for additions to a library collection include cost of books, catalogs, periodicals, binding, audiovisual media, and other general publications. These items are capital expenditures. Each institution shall be responsible for developing purchasing policies and procedures for the library. These purchases may be made without formal bids or quotations, and appropriate documentation shall be maintained to support sole source procurement.

Acquisition of Computer Systems

Acquisition of computer systems involving the purchase of hardware with the development of application software shall be made in accordance with TBR Guidelines on Acquisition of Data Processing Equipment/Software/Services, and TBR Guidelines on Procedures for Multistep Sealed Bidding.

CREDIT CARD PURCHASES

Jackson State Community College has the following Credit Cards:

VISA Card - Main Campus
VISA Card - Athletics

The Complete Jackson State Credit Card Policy can be found at: J-Web, Work Life, Financial and Administrative Affairs, Purchasing, Credit Card Procedures.

LIFE-CYCLE COSTS

An institution shall, in a case where the State Board of Standards has adopted a rule requiring lifecycle costs to be used by the Commissioner of the Department of General Services in contracting for major energy consuming products, and may, in a case where a lifecycle cost and/or energy efficiency standard has been developed for a product by the federal government, apply such lifecycle cost and/or energy efficiency standard in the determination of the lowest qualified and responsible bidder.

DISPOSAL OF SURPLUS PERSONAL PROPERTY

Surplus property is personal property which has been determined obsolete, outmoded, unusable or no longer usable by the institution, or property for which future needs do not justify the cost of maintenance and/or storage. Disposal of such property must be in accordance with Tennessee Board of Regents Policy No. 4:02:20:00, Disposal of Surplus Personal Property. For further information see JSCC's Inventory and Surplus Property Manual.

PROHIBITED TRANSACTIONS

No personal items shall be purchased through the institution or from funds of the institution for any employee of the institution or any relative of any employee. A request to purchase items that are normally considered personal items (e.g. clothing), but are needed for business purposes, must receive presidential approval. Therefore, any request to purchase personal items for employees with institutional funds requires a business purpose justification statement. The amount of the item should be no more than $25 per item. The requisition along with the business purpose justification must be presented to the President for his approval.

No employee of an institution responsible for initiating or approving requisitions shall accept or receive, directly or indirectly, from any person, firm or corporation to whom any contract may be awarded, by rebate, gift or otherwise, any money or anything of value whatsoever, or any promise, obligation or contract for future awards or compensation. Whenever any contract is awarded contrary to the provisions of these policies and procedures, the contract shall be void and of no effect. If the violation was intentional, the employee responsible for the purchase shall be liable for any state funds paid contrary to these policies and procedures.

EXCEPTIONS

Any exceptions to the policies and procedures established herein shall be subject to approval of the Chancellor.

SECTION VII - POLICY ON APPROVAL OF CONTRACTS & AGREEMENTS

The following policy on approval of agreements will apply to Jackson State Community College as authorized by the Tennessee Board of Regents as an approval process for institutions to enter into Contracts and Agreements with second or third parties:

Effective January 1, 2022 all Jackson State Community College contracts are handled by Tennessee Board of Regents Shared Services, specifically the department of Procurement, Contracts, and Payment Services (PCPS).

The Procurement, Contracts, and Payment Services Department manages procurements, contracts, PCPS reporting, payables, travel and vendor management services (Shared Services) within the laws of the State of Tennessee, federal regulations, and the policies and guidelines of the Tennessee Board of Regents. The PCPS Division processes transactional activity for the TBR System Office, the Tennessee Colleges of Applied Technology, Jackson State Community College, and provides and manages system-wide procurements and contracts. TBR.edu

SECTION VIII - EXPLANATION OF FORMS

Check Requisition Form) - The Check Requisition form is to be used to request a check in payment of an obligation that would not normally be purchased through a requisition for purchase and subsequent issuance of a purchase order. This form can be used in the following situations:

To reimburse employees who have made purchases for Jackson State Community College in the amount of $100 or less when accompanied by proof of purchase.
To request the withdrawal of funds being held by Jackson State Community College in an agency account; example of this situation would be the withdrawal of funds by the Jackson State Community College Biology Club.
Other uses as approved by the Vice President for Financial and Administrative Affairs or listed specifically in the Check Requisition Policy.

Requisition for Purchase -A Requisition For Purchase will be entered into the JSCC electronic Sci Quest system when an employee desires to purchase goods and services when Jackson State Community College will be responsible for the liability for such purchases. The requisition for purchase must be entered by the designated department Sci Quest Requestor for such goods and services. The electronic Sci Quest system will automatically route the Requisition to all designated Approvers for the Fund#s/Org#s listed in the FOAP# of the Requisition.
After all required approvals have been entered, the electronic SciQuest Purchasing system will perform a final Banner budget check and the Purchase Order will be issued.

The purchase of the goods or services desired will be in accordance with the policies and procedures outlined in Section I.

The following is a list of the purchasing approval authority for all SciQuest requisitions. Purchase Limit Required Signatures
$0.01 and Higher Primary Approver (Deans in Academic Areas/Directors in Non-Academic Areas
$0.02 and Higher Accounting Review of FOA
$1500 and Higher Divisional Vice President
$3000 and Higher Vice President of Financial and Administrative Affair
$5000 and Higher President
Final Review - TBR Shared Services has final approval of all requisitions before being converted into a purchase order and funds encumbered.
Purchases from Agency Accounts - A paper Requisition for Purchase will be issued for purchases made from Agency Accounts. The Requisition for Purchase form is found in the /WEB/ Employee Forms/Docs. This Requisition must be signed/approved by appropriate Agency budget manager, the Dept. Dean or Director, and the Vice President of Financial and Administrative Affairs.
Purchase Order - After all required approvals have been entered into the Requisition, the electronic SciQuest system will issue the Purchase Order. The SciQuest system will automatically fax or email the Purchase Order to the vendor if the Requisition was originally entered as "Regular Order/ Distribute to vendor". The Purchase Order will not be distributed to the vendor where the Requisition was entered as: "P-Card Order" or "Standing Order The Purchase Orders (and corresponding Requisitions for Purchase) are electronically stored in the JSCC SciQuest system. The Requestor that originally entered the Requisition can view the complete Requisition and Purchase Order (including all approvals, added note, added comments, history, etc.) in the Sci Quest system; the Requestor can also print copies of the Requisition and Purchase Order if needed.
Travel Purchase Orders - A Purchase Order is issued for all approved Travel Authorizations to encumber the funds.
Processing Payments of Invoices - Invoices are received by the originator or Accounts Payable. The invoice is stamped on the date it is received and forwarded to the Accounts Payable Clerk. The Accounts Payable Clerk will determine and direct invoices to appropriate authorized personnel in the department that requisitioned the goods or services shown on the invoice. When the authorized person of the initiating department is satisfied that the goods or services have been received, and meet the specifications requested by the Purchase Order issued for the purchase of said goods and services, the invoice should be approved for payment and returned to the Accounts Payable office. When the invoice is approved and returned to the Accounts Payable office, a copy of the purchase order should accompany the invoice.
Sole Source & Proprietary Purchase Justification Form

Whenever specifications are not worded or designed to enable competitive bidding for Goods or Services costing $25,000or more; or if they specify a single brand, the person responsible for the recommendation shall be required to justify the necessity for the specifications in writing by completing this TBR form. The Vice President for Financial and Administrative Affairs must also approve all Sole Source Purchases.

SECTION IX – QUARTERLY TBR PROCUREMENT REPORTS

The following three (3) reports will be prepared and transmitted to the TBR Purchasing Office on a quarterly basis:

Contracts Report- Report Contracts for Services of $5000 or more (for Jackson State Community College).

Diversity Report - Report all Services acquired via a Request For Proposal (for Jackson State Community College & the 8 Tennessee Colleges of Applied Technology).
Small/Minority/Women-Owned Business Report - Report all Solicitations, Reponses, Awards to Small, Minority, Women Owned and Disabled Veteran Owned Businesses (for Jackson State Community College & the 8 Tennessee Colleges of Applied Technology).