Purchasing Requirements

ATCC is required to follow the purchasing requirements as defined in Minnesota Statute 471.345 Uniform Municipal Contracting Law or other authority granted in Minnesota Statute 16A, 16B, and 16C and referred to in the following. All contract values in this part below refer to Total Contract Value (TCV).

Purchases of $1 to $24,999

If the amount of the purchase is estimated to be less than $25,000, the purchase may be made either upon one quotation or in the open market. It is desirable, so far as practicable, to obtain two quotations. Quotations may be obtained by telephone or in written form via facsimile (FAX), delivery service, or Internet.

Purchases of $25,000 to $49,999

If the amount of the purchase is estimated to be $25,000 or more and less than $50,000, the purchase may be made either upon quotation or in the open market, at the discretion of the college. If the purchase is made upon quotation, it must be based, so far as practicable, on at least two (2) quotations which must be kept on file for a period of at least one year after receipt or as according to an applicable record retention schedule approved by the State Records Disposition Panel. Quotations may be obtained by telephone or in written form via facsimile (FAX), delivery service, or Internet. Quotations must have a specified date and time for submission. ATCC shall determine a level at which written quotes will be required. The record to be retained must include the names of vendors providing quotes, amounts of quotations, and each successful quote signed and dated.

Purchases of $50,000 to $99,999

If the amount of the purchase is estimated to be $50,000 or more but not to exceed $99,999, the purchase may be made either upon sealed bids or by direct negotiation by obtaining two (2) or more quotations for the purchase or sale when possible, and without advertising for bids or otherwise complying with the requirements of competitive bidding. Quotations must be kept on file for a period of at least one year after receipt or as according to an applicable record retention schedule approved by the State Records Disposition Panel. Quotations may be obtained by telephone or in written form via facsimile (FAX), delivery service, U.S. mail, or Internet. Quotations must have a specified date and time for submission. ATCC shall determine a level at which written quotes will be required. The record to be retained must include the names of vendors providing quotes, amounts of quotations, and each successful quote signed and dated.

Purchases of $100,000 or greater

If the amount of the purchase is estimated to be $100,000 or more, sealed bids must be solicited by public notice as outlined in the following section. Bids and documents pertaining to the award of the purchase must be retained and made a part of the permanent file or as according to an applicable record retention schedule approved by the State Records Disposition Panel. The record to be retained must include the names of vendors providing bids, amounts of bids, and each successful bid signed and dated.

Bid solicitation is not required for purchases from Minnesota Department of Administration master contracts, MN.IT Services master contracts, Minnesota State master contracts, or through cooperative purchasing agreements listed on the Minnesota State system’s office web site and authorized for use by the college. Purchases of $100,000 or more require written Minnesota State system office approval from the VC-CFO. ATCC shall submit a request for VC approval explaining the need for the purchase, the purchase amount, must verify that funds are available for paying for the purchase, and must describe what process will be used in making the award. The VC-CFO will review the request and respond in writing.

Single Source

Single Source designation is applied to an acquisition where, after a search, only one supplier is determined to be reasonably available for the required product, service, or construction item. Minnesota Statute 16C.02, subd. 18. For proposed single-source purchases less than $100,000, the request form for a single-source exception must be completed and approved by the ATCC Chief Financial Officer. For proposed single-source contracts $100,000 or greater, the request form for a single-source exception must be completed and approved by the VC-CFO prior to purchase approval.

Minnesota Department of Human Rights

Bids or proposals for purchases exceeding $100,000 must not be accepted or awarded to any consultant, contractor, vendor, or supplier who has not obtained the required certificate or received an exemption.

Businesses with more than 40 employees within Minnesota

Consistent with Minnesota Statute 363A.36, vendors who intend to bid on any purchases or contracts exceeding $100,000 and who have had on any single working day in the previous twelve (12) months more than forty (40) full-time employees within Minnesota must apply for a Workforce Certificate from the Minnesota Department of Human Rights. Bids or proposals on purchases or contracts exceeding $100,000 from vendors who have not applied for this certificate must not be accepted. An award exceeding $100,000 must not be made to vendors who have not obtained this certificate or received an exemption.

Businesses with more than 40 employees outside of Minnesota

Consistent with Minnesota Statute 363A.36, vendors who do not have more than forty (40) full-time employees in Minnesota, but who have had on any single working day in the previous twelve (12) months more than forty (40) full-time employees in the state in which their principal place of business is located, must have a Workforce Certificate or must certify that the business is in compliance with federal affirmative action requirements in order to receive a contract award exceeding $100,000.

Equal Pay

Pursuant to Minnesota Statute 363A.44, subd. 8, if the amount of the contract is valued in excess of $500,000 and the contractor has 40 or more full-time employees in Minnesota or a state where the business has its primary place of business on any single working day during the prior twelve (12) months, the contractor must obtain an Equal Pay Certificate from the Minnesota Department of Human Rights (MDHR) or claim an exemption on the Declaration Page prior to contract execution.

Exceptions to Vice Chancellor Approval

Written approval from the VC-CFO is not required for the following types of purchases where the Total Contract Value of the purchase is less than or equal to $1,000,000.

1. Utility services provided annually where no competition exists or where rates are fixed by law or ordinance.
2. Merchandise purchases for resale.

VC-CFO approval is not required for blanket encumbrances established for purchasing card programs; however, individual purchases made using purchasing cards are subject to purchasing requirements as outlined above.

Encumbrance

Funds must be encumbered prior to making an obligation through an authorized employee certifying that the accounting system shows sufficient allotment or encumbrance balance in the fund, allotment, or appropriation to meet it. An expenditure or obligation authorized or incurred prior to encumbering funds is in violation of state law and ineligible for payment until made valid and is in violation of Minn. Stat. 16A.15, subd. 3. An employee authorizing or making the payment, or taking part in it, may be liable to the state for the amount paid. A knowing violation of Minn. Stat. 16A.15, subd. 3, is just cause for the employee’s removal. The state cannot agree to indemnify third parties or hold them harmless (Minn. Stat. 16A.138; Minn. Const. Art. XI, Sec. 1). See Minnesota State Procedure 7.3.3 Purchasing Cards for requirements of credit card purchasing.

Prepayment

Minn. Stat. 16A.41, subd. 1, prohibits ATCC from paying in advance, except set 159 forth in Minn. Stat. 16A.065.

Solicitation of Bids

For purchases anticipated to exceed $100,000 in TCV, sealed bids must be solicited by public notice through publishing a minimum two (2) week notice on a State of Minnesota website or in one or more official newspaper(s). The official newspaper may be the State Register. In addition to the public notice, sealed bids may be solicited by directly notifying prospective bidders not less than seven (7) days before the final date of submitting bids. This notice must state the time and place of receiving bids and contain a brief description of the subject matter. A bid containing an alteration or erasure must be rejected unless the alteration or erasure is crossed out and the correction printed in ink or typewritten adjacent to it and initialed in ink by the person signing the bid. If bids are not submitted electronically, the bids must be sealed and, when they are read, must be opened in public at the hour stated in the notice. All sealed bids and quotations obtained must be kept on file until audited, but not less than one year or as according to an applicable record retention schedule approved by the State Records Disposition Panel.

Purchases from Targeted Group Businesses (TGBs)

Purchasing practices will include provisions for procurement from TGBs as set forth in Minnesota State System Procedure 5.14.6 and related ATCC Policy 5.14.

Code of Ethics

All ATCC employees engaged in contracting and purchasing are subject to Minnesota law applicable to state employees, including Minn. Stat. 15.43, 43A.38, 43A.39, and Minnesota State System Procedure 1C.01.

Accountability

The ATCC President must designate an employee who will have overall responsibility for complying with state and federal laws, Minnesota State Board policy, and procedures for all purchases.

Related ATCC Documents

• 5.14 Contracts, Procurements, and Supplier Diversity 

Approved by: College President

Effective Date: 3/20/2024

Next Review Date: March 2027

Archive: 5.14.1 Purchasing Guidelines