Contract Authorization Policy
G1.18 Contract Authorization Policy
Contracts, Generally
The Administration, in furtherance of the public policy of efficient and responsible operation of the University, is expressly delegated the authority to enter into, execute and administer as agent of the Board of Governors, certain contracts and appropriations requiring the expenditures of funds, subject to the following terms and conditions:
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Contracts Recurring or Non-Recurring in Nature - Estimated Not to Exceed $250,000.00
Contracts for the purchase of goods and services not to exceed $250,000.00 (excluding new construction, remodeling and repair of facilities, architectural, engineering and surveying services, and long-term leases of a duration more than 24 months), whether recurring or non-recurring in nature, for which an appropriation has been made in the annual budget, or the use of carryforward funds, or the use of dedicated revenue may be processed by the Administration according to the University Procurement Procedures without reporting the same to the Board of Governors or requiring formal Board approval except as set forth in this policy, such contracts and appropriations being considered ministerial in nature, and authorized and approved by the action of the Board in approving the annual budget. Single purchases of more than $100,000.00 (< $250,000) if a bid other than the low bid is accepted should be presented to the Board for information purposes subsequent to the award.
The following purchasing activities should be presented to the Board for information purposes subsequent to the award: Single purchases of more than $100,000.00 but less than $250,000.00 if only one bid is received, or single feasible source purchases pursuant to the Procurement Procedures.
Any procurement activity that is determined to be sensitive or of significant impact to the University, at the discretion of the Chief Financial Officer, the Chancellor of the West Plains campus and/or the President of the University, should be presented to the Board for approval.
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Contracts Recurring or Non-Recurring - Estimated to Exceed $250,000.00
Contracts for the purchases of goods and services to exceed $250,000.00 (excluding new construction, remodeling and repair of facilities, architectural, engineering and surveying services, and long-term leases of a duration more than 24 months), whether recurring or non-recurring in nature, for which an appropriation has been made in the annual budget, or the use of carryforward funds, or the use of dedicated revenue, may be processed according to the University Procurement Procedures, but such contracts must be approved by the Board, by a majority vote of all members, before execution of said contract, whenever possible (provided, however, that items purchased for resale according to the University's Procurement Procedures are not required to be submitted to the Board for approval, but individual transactions exceeding $250,000.00, or contracts likely to exceed $250,000.00 per fiscal year, must be approved in writing by the appropriate Vice President or Chancellor of a branch campus prior to purchase).
Contracts, excluding short-term leases of a duration of 24 months or less, for the lease, purchase, or sale of real estate should be presented to the Board for approval, regardless of value by the Vice President for Administration and Finance or the Chancellor of the West Plains campus. Short-term leases of a duration of 24 months or less are considered contracts and are reported as required under item 1 or 2 above.
Contracts may be amended without Board approval, unless the amendment would cause the originally estimated annual value of such contracts to be exceeded by 25% or $50,000.00, whichever is less. If the amendment would cause the originally estimated annual value of a contract to be exceeded by 25% or $50,000.00, whichever is less, the recommended action should be presented to the Board for approval prior to finalizing the amendment.
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Architectural, Engineering and Surveying Services
The University adopts as a formal procedure for procurement of architectural, engineering and surveying services, the provisions of Missouri Revised Statutes, but such contracts must be approved by the Board, by a majority vote of all members, prior to the execution of said contract if such contracts exceed $250,000.00. The Vice President for Administration and Finance and the University Architect and Director of Planning, Design and Construction are delegated the authority to select and sign contracts for such sources for $250,000.00 or less without Board approval for all campuses.
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New Construction, Remodeling and Repair of Facilities
Contracts for new construction, remodeling and repair of facilities with a project budget of $250,000.00 or less may be processed according to Missouri Revised Statutes, and the University Policy Library without reporting the same to the Board or requiring formal pre-approval by the Board, such contracts being considered ministerial in nature. Management of these contracts shall be carried forth in accordance with all university policies which may include notices to proceed, proposal requests, change orders, substantial completion certificates, etc. as long as the project budget is not exceeded.
No contract for new construction, remodeling, or repair of facilities which exceeds a project budget of $250,000.00, shall be executed by the Administration until the project has been first approved by the Board.
The Board of Governors will be provided at each regular meeting of the Board for review and approval all notice of awards for construction projects that are greater than $100,000.00 that did not originally require action by the Board. These would include notices of awards to consultants and contractors.
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Change Orders
Changes in the scope of the work to be performed pursuant to any contract described in G1.18.3 through G1.18.4 above, which result in a change order approved by the Vice President for Administration and Finance or the University Architect and Director of Planning, Design and Construction, which do not cause the approved budget for the project, including a contingency for change orders, to be exceeded need not be pre-approved by the Board. However, if such change order does result in the approved budget for the project being exceeded, the change order and revised project budget must be approved by the Board prior to any work being performed pursuant thereto.
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Emergency Procedures
In those circumstances where emergency, inefficiency or waste of state resources would occur, contracts and appropriations authorized by G1.18.2, G1.18.3, G1.18.4 or G1.18.5 may be verbally approved by the Chair or Vice Chair of the Board and must then be brought to the Board for approval at the next regular meeting of the Board of Governors.
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International Purchases
Purchases by University officials located outside the U.S. originated in or intended for use at an international location, up to $100,000.00, may be purchased with locally generated funds according to procedures authorized in the Procurement Procedures, without Board approval.
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Budget Authorization
Contracts and appropriations which would exceed the major administrative area annual budget or the use of carryforward funds, or the use of dedicated revenue or not otherwise approved by the Board must be approved prior to the contract or appropriation. Appropriations and disbursements may be authorized and approved by the Board by the adoption of the annual budget, or the use of carryforward funds, or the use of dedicated revenue or subsequent Board action approving any modification.
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Delegation of Authority to Execute and Administer Contracts Appropriations, or Change Orders.
The authority to proceed and execute and administer any contracts, documents and instruments, appropriations, disbursements or change orders described in G1.18.1 through G1.18.7 above, is hereby delegated to the President of the University (who may subdelegate such authority in writing to appropriate Vice-Presidents or Chancellors of the University, or other officer or employee of the University as the President determines appropriate, either generally or specifically) and to the University Procurement officers, University Architect and Director of Planning, Design and Construction, and as otherwise set forth and subject to the requirements stated herein, or as set forth in this policy. It is the determination of the Board of Governors that such delegation is necessary to the furtherance of the public policy of efficient and responsible operation of the University, and no further action of the Board is required regarding matters and actions hereby delegated to the Administration.
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Personnel Appointments
Academic and full-or part-time regular employee appointments will be made by the Board following recommendation by the President. Academic appointments include 12-month, 9-month, semester, summer, intersession, per course and supplemental teaching assignments. Certain part-time employees may be approved by the President as authorized by Board bylaws. Academic and full-or part-time regular appointments will be approved by the Board prior to commencement of duties if possible, and if not, at the next regular meeting of the Board.
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Notice of Action by the Board
The Board shall duly note in Board minutes on any approval by the Board on any contracts requiring Board approval, as set forth in this Policy, and the Board may otherwise authorize and approve contracts by description or incorporation by reference.
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Administrative Authority
Pursuant to the rulemaking and management authority of the Board, the Administration is authorized from time to time to promulgate purchasing and facility policies and procedures in compliance with prevailing law. The Board delegates to the Administration the authority from time to time to amend policies and procedures, which shall then be observed by the Administration in all purchases of goods and services as set forth in this policy.
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Entertainment and Performance Contracts
Contracts with entertainers and performers may be approved by the Administration, provided, however, that a report of all entertainment/performance agreements executed during the prior fiscal year will be made to the Board of Governors, on an annual basis, no later than December. Such report shall include information regarding profits and/or losses for each entertainment performance (with the exception of performances scheduled by and contracted through the Student Activities Council or other student organizations).
NOTE: Nothing in this policy is intended to diminish or otherwise affect the contracting authority granted to the University’s health center and bookstore to execute any and all agreements for the purchase of goods or services for use by the health center and/or bookstore (e.g., pharmaceuticals, books, etc.).