Procurement Rules

Effective October 2016

Colorado School of Mines
Procurement Rules
Table of Contents

SECTION 1.0 BACKGROUND AND PURPOSE .......................................................... 4
SECTION 2.0 AUTHORITY AND DELEGATION ......................................................... 4
SECTION 3.0 APPLICABILITY ........................................................................................ 6
A. General Applicability ............................................................................................ 6
B. Exclusions.............................................................................................................. 6
C. Waiver .................................................................................................................... 6
SECTION 4.0 ETHICS ...................................................................................................... 8
A. Conflict of Interest ................................................................................................ 8
B. Code of Ethics ....................................................................................................... 8
C. Vendor Shows ....................................................................................................... 8
SECTION 5.0 PROCUREMENT METHODS ................................................................ 9
A. General Solicitation Rules................................................................................... 9
1. Solicitation Policy .............................................................................................. 9
2. Solicitation Thresholds ..................................................................................... 9
3. Solicitation Notification ..................................................................................... 9
4. Specifications ..................................................................................................... 9
5. Solicitation Conferences .................................................................................. 8
6. Amendments to Solicitations ......................................................................... 10
7. Solicitation Receipt, Opening & Recording ................................................. 10
8. Cancel ation of Solicitations........................................................................... 11
B. Procurement Procedures for Purchases Totaling $150,000 or Less ......... 12
1. Smal -dol ar purchases - purchases totaling $4,999 or less..................... 12
2. Purchases of goods/services totaling $5,000 through $50,000 ............... 13
3. Purchases of goods/services above $50,000 but less than $150,000 .. 14
C. Procurement Procedures for Purchases totaling over $150,000 ................ 16
1. Invitation for Bids (IFB) ................................................................................... 16
2. Request for Proposals .................................................................................... 16
D. Competitive Negotiation .................................................................................... 17
1. Al owable Use .................................................................................................. 17
2. Unsuccessful IFB/RFP processes ................................................................ 17
3. Participants....................................................................................................... 18
4. Times and Locations....................................................................................... 18
5. Separate Negotiations .................................................................................... 18
6. Elimination from Process ............................................................................... 18
7. Award ................................................................................................................ 18
E. Exceptions to Competitive Solicitation Processes......................................... 18
1. Sole Source Procurements ............................................................................ 18
2. Emergency Procurements ............................................................................. 19
3. University Wide Price Agreements ............................................................... 20
4. Cooperative Purchasing Agreements .......................................................... 21
F. Price Cost Analysis ............................................................................................. 21
G. Demonstration or Sample Agreements........................................................... 22

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SECTION 6.0 CONTRACTS .......................................................................................... 23
A. Types of Contracts ............................................................................................. 23
B. Multi-Year Contracts .......................................................................................... 23
SECTION 7.0 AFTER-THE-FACT (“ATF”) PURCHASES......................................... 24
SECTION 8.0 DISPUTES & REMEDIES ..................................................................... 25
A. Types of Disputes............................................................................................... 25
B. Costs of Filing...................................................................................................... 25
C. Protests other than Contract Disputes ............................................................ 25
1. Filing of Protests .............................................................................................. 25
2. Requested Information ................................................................................... 25
3. Decision ............................................................................................................ 26
4. Stay of Procurement ....................................................................................... 26
5. Actions in Court ............................................................................................... 26
6. Entitlement to Costs ........................................................................................ 26
D. Contract Disputes ............................................................................................... 26
1. Statement of Policy ......................................................................................... 26
2. Situation Prior to Issuing Decisions .............................................................. 26
3. Final Decision .................................................................................................. 26
4. Actions in Court ............................................................................................... 27
SECTION 9.0 SUSPENSION & DEBARMENT........................................................... 28
A. Suspension.......................................................................................................... 28
B. Debarment........................................................................................................... 28
C. Master List .......................................................................................................... 29
SECTION 10.0 LOCAL, SMALL BUSINESS & DONOR BUSINESS PROGRAM 30
SECTION 11.0 PROCUREMENT RECORD INFORMATION & RETENTION ...... 31
SECTION 12.0 DEFINITIONS ....................................................................................... 32
APPENDIX A PROCUREMENT CODE OF ETHICS……….…………………….37


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Procurement Rules
Responsible Administrative Unit
Administration & Operations


Policy Contact
Issued: June 1, 2009
Asst. Vice President Financial Planning &
Revised: October 1, 2016

Business Operations:

VNichol@mines.edu


1.0
BACKGROUND AND PURPOSE

Pursuant to Section 24-101-105 of the C.R.S., on December 2008, the Board of
Trustees adopted a resolution exempting the Colorado School of Mines (“Mines” or
“University”) from the State of Colorado Procurement Code and Rules to be effective
December 2008.

These rules are designed to support and facilitate the educational, research, and public
service missions of the University through the acquisition of goods and services by
applying the best methods and business practices that provide for public confidence in
the University. Within the context of the University environment, these rules ensure a
procurement procuress of quality, integrity, broad-based competition, fair and equal
treatment of the business community, increased economy in the procurement process
and uniform procurement procedures.

Colorado School of Mines currently fol ows federal guidance 2 CFR part 215, including
without limitation paragraphs (a)(1), (2) and (3) of §215.44.

2.0
AUTHORITY AND DELEGATION

The Constitution and statutes of the State of Colorado vest the supervision of the
University in the Board of Trustees, which includes the authority for procurement. The
Board of Trustees has delegated to the President the administration of the University
pursuant to its policies, including the authority for procurement and to delegate that
authority to other University officials. Upon the effective date of these Procurement
Rules (“rules”), al procurement authority of the President of the University shal be
delegated to the University’s Assistant Vice President of Business Operations. The
Assistant Vice President of Business Operations may further delegate his/her authority
to persons in University departments for the efficient operation of the University. The
Assistant Vice President of Business Operations is the only person authorized to
purchase goods and services for the University, unless such specific delegation of
authority is made to another employee. Since no rules can cover al eventualities,
exceptional cases wil be resolved as circumstances and prudent business practices
warrant. No employee of the University is empowered to incur any obligation or make
any commitment on behalf of the University for the procurement of goods or services,
except as provided under these rules.
Consistent with the provisions of these rules, the Assistant Vice President of Business
Operations may adopt operational procedures governing the internal purchasing
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functions of the University. Operational procedures governing purchases at the
department level using the University’s procurement card, voucher requests and field
purchase orders are handled by the Control er’s Office.

Under these rules, the Purchasing Department is the final authority at the University for
selection of vendors and the sole authority for the commitment of University funds with
respect to the procurement of goods and services.

The Assistant Vice President of Business Operations may, from time to time, amend
these rules with the approval of the President of the University.

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3.0
APPLICABILITY
A.
General Applicability
These rules apply to all goods and services procured by and through the
University regardless of funding source. For the avoidance of doubt, these rules
do not apply to transactions where University funds are not expended nor to
contracts that are solely revenue producing.
B.
Exclusions
The fol owing situations are excluded from the competitive procurement
requirements included in these rules. Other than as mentioned in item 7 below,
purchases using Sponsored Program Funds and Research Funds are not subject
to this Exclusions section:

1.
The procurement is for a construction contract as delegated from State
Buildings to the Office of Planning and Construction.
2.
The procurement is between the University and a public entity including
any agency of a federal, state, county or municipal government, a school
district or other special district.
3.
The procurement is for services provided by architects, engineers,
landscape architects, industrial hygienists or land surveyors. (See C.R.S.
§ § 24-30-1401 through 24-30-1407).
4.
The procurement is for specialized professional services for speaking
engagements or teaching or research services.
5.
The procurement is for contracts and expenditures for litigation or other
legal expenses, including experts, mediators, court reporters, process
servers, witness fees, and attorney services.
6.
The procurement is for a vendor’s item procured for resale.
7.
The procurement of services from a specific vendor has been approved in
advance by the contracts or grants officer and is necessary to comply
with the specific terms and conditions of a sponsored project grant or
contract.
8.
The procurement is for the lease, sale, purchase, transfer, disposal or any
other transaction involving an interest in real property.
9.
The procurement is for an employment contract.
10.
The procurement is for insurance policies for the University and its
employees.
11.
The procurement is for a defined contribution plan administrator and/or
record keeper.
12.
The procurement is for travel related expense (e.g., airfare,
accommodations, conference events, charter transportation).
13.
The procurement is for a publicly regulated utility (e.g., water, electricity,
natural gas).
14.
The procurement is for display, performance, or use of work of art, works
of entertainment, literary works, magazine subscriptions, museum
col ections, music, film, or other copyrighted materials specific to the
purpose of the procuring department.
15.
The procurement is for library col ections in al formats, including books,
periodicals, serials, electronic resources, multimedia/streaming video, etc.
16.
The procurement is for advertising such as in a newspaper, magazine,
television commercial, radio advertisement, outdoor advertising, indoor
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display, social media, or other media outlet where the University brand or
programs are being advertised to a specific consumer segment.
17.
The procurement is for used or pre-owned equipment or vehicles,
provided that the purchasing agent has determined that competition is not
practical or would not be advantageous to the University. Such purchases
require cost or price analysis, certificate of working order and warranty
unless waived by the Assistant Vice President of Business Operations.
18.
The procurement is for component parts that are specific to existing
equipment, software that is specific to existing equipment, or
maintenance that can only be provided by the manufacture of the existing
equipment.
19.
The procurement is for dues and/or memberships.
20.
The procurement is for tuition, registration, or fees charged for trainings,
classes, conferences and seminars.
21.
The procurement is for software license renewals, software maintenance,
and upgrades to existing software used by the University.

Notwithstanding the foregoing exceptions from formal competition, the
purchasing agent may require a reasonable method of competition, price or value
comparison, or negotiation in order to assure that (i) the goods or services to be
obtained wil reasonably meet the University’s bona fide requirements; (ii) the
award of University business to a vendor or contractor is fair to al concerned;
and (ii ) known or perceived conflicts of interest are avoided or mitigated in
accordance with applicable laws.
C.
Waiver Process
The Assistant Vice President of Business Operations, in his or her sole
discretion, may grant the request of a waiver, al owing procurement rule(s) to be
waived in special circumstances. The waiver request shal include evidence that
due diligence was exercised in receiving the best deal for the University and
provides a benefit to the University at least equal to the cost and risk of not
conducting a solicitation. The Assistant Vice President of Business Operations
must ensure there is no evidence that waiving the rule(s) wil al ow for any
unethical conduct or undue preference to a specific vendor(s).
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4.0
ETHICS
A.
Conflict of Interest
The Colorado School of Mines Faculty Handbook defines the processes to be
fol owed in articulating and resolving conflicts of interest at the University. When
the Office of Business Operations has reason to believe that a conflict of interest
may exist in the procurement of goods and services, it wil direct the affected
department to comply with the procedures described in the Faculty Handbook
regarding conflict of interest. All possible conflicts of interest must be discussed
with the Office of Compliance prior to a procurement transaction.
B.
Code of Ethics
Al parties involved in the negotiation, performance or administration of University
contracts are bound to act in good faith. Any person employed by the University
who purchases goods and services, or is involved in the procurement process for
the University, shal be held to the highest degree of trust and shal be bound to
the Colorado School of Mines Procurement Code of Ethics included with these
rules as Appendix A.
C.
Vendor Shows
A vendor show is a product demonstration or exhibit held on campus, to which a
vendor invites more than one University department for the purposes of
marketing goods or services. Vendor shows include open houses, product
exhibits or product demonstrations. Al vendor shows must be approved in
advance by the Assistant Vice President of Business Operations in order to:

Protect the integrity of the University’s procurement process;
Protect the viability of the University-wide price agreements; and
Ensure fairness to al vendors.

The sponsoring University department shal notify the Assistant Vice President of
Business Operations as far in advance as possible but at least ten (10) business
days prior to the vendor show. A product or equipment demonstration to a single
University department is not a vendor show. The Assistant Vice President of
Business Operations has the final authority to determine what constitutes a
vendor show.

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5.0 PROCUREMENT METHODS
A.
General Solicitation Rules
This section applies to the purchase of goods and services, with some
exceptions. The exclusions listed in section 3.0 B Exclusions are exempted
from this section of the Procurement Rules.
1.
Solicitation Policy
It shal be the policy of the University to purchase goods and services in a
manner that affords vendors a fair and equal opportunity to compete.
Solicitations should only be issued when there is a valid procurement
need. Solicitations should not be issued to obtain estimates or to “test the
water.”
2.
Solicitation Thresholds
i.
Goods or services $4,999 or less
Campus departments have purchasing authority.
ii.
Goods or services $5,000 through $50,000
Purchases are processed at the discretion of the purchasing agent.
Three (3) quotes are required for purchases between $10,000 and
$50,000 and for al purchases made through POs using federal funds.
iii.
Goods or services $50,001 through $150,000
Competition is sought via the document quote process.
iv.
Goods or services $150,001 or greater
Competition is sought via either the invitation for bid or request for
proposal process.
3.
Solicitation Notification
An electronic solicitation notification system is the required method for
advertising competitive solicitations for goods and services made through
documented quotes (“DQ”), invitation for bids (“IFB”) and request for
proposals (“RFP”). Other methods of notification may also be used at the
discretion of the purchasing agent.
4.
Specifications
Purchasing agents shal issue goods or service specifications, which are
not unduly restrictive. Brand name specifications, brand name or equal
specifications, or qualified products lists may be used in competitive
solicitations. Furthermore, brand name specifications shal only be used
in accordance with Section 5.E.1. regarding sole source procurements.
When appropriate, specifications issued and/or used by the federal
government, other public entities or professional organizations may be
referenced by the University. Vendors may be required to certify that
these standardized specifications have been met.
5.
Solicitation Conferences
Solicitation conferences may be conducted to explain procurement
requirements. They shal be announced in the solicitation. The
conference should be held long enough after the solicitation has been
issued to al ow vendors to become familiar with the solicitation but with
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adequate time before the solicitation due date to al ow vendors time to
consider the conference results in preparing their quotes/bids/proposals.
Nothing stated at the conference shal change the solicitation unless a
change is made by written amendment posted on the electronic
solicitation notification system.
6.
Amendments to Solicitations
Amendments to solicitations shal be identified as such and may require
that the vendors acknowledge receipt of all amendments issued.
Amendments shal be posted on the electronic solicitation notification
system with sufficient time to al ow vendors to consider them in preparing
their quotes/bids/proposals. If the due date set wil not permit such
preparation, then the Office of Business Operations shal extend it.
7.
Solicitation Receipt, Opening & Recording
a.
Receipt
Each response shal show the date and time of receipt.
Responses to competitive sealed solicitations shal be stored in a
secure place until the due date and time, and shall not be opened
upon receipt, except that unidentified responses may be opened
for identification purposes. Upon verification of a solicitation
response, the response wil immediately be resealed and the
reason for opening the response wil be noted.
b.
Opening and Recording
The competitive sealed solicitation opening shall be open to the
public. Responses shal be opened, in the presence of one or
more witnesses, as soon as possible after the date and time and
at the place designated in the competitive solicitation.
c.
Confidential Data
Confidential information includes, but is not limited to, trade
secrets, privileged information and confidential commercial and
financial information furnished by the vendor and which may be
withheld from inspection by the University pursuant to the
Colorado Open Records Act, C.R.S. § 24-72-2043 (3) (A)(IV). The
vendor may submit written requests for confidentiality to the
purchasing agent pursuant to the solicitation terms and conditions.
Neither a response in its entirety nor price information wil be
considered confidential information.
(i)
The purchasing agent shal determine the validity of any
written requests for confidentiality and shal provide a
written determination of the findings to the vendor.
(ii)
If the purchasing agent and the vendor do not agree upon
the nondisclosure of confidential information, the vendor
may withdraw its response. After award, al responses
shal be open to public inspection with the exception of
confidential information.
d.
Withdrawals of Responses & Mistakes in Responses
(i)
Withdrawal of Responses Prior to the Due Date and Time:
Any response may be withdrawn prior to the specified due
date and time upon written request from the offeror.
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(ii)
Withdrawal of Responses after Due Date and Time but
Prior to Award:
The Assistant Vice President of Business Operations may
allow a response to be withdrawn after the specified due
date and time but prior to the award provided:
(a)
The vendor provides evidentiary proof that clearly
and convincingly demonstrates that a mistake was
made in the costs or other material matter provided;
or
(b)
The mistake is clearly evident on the response; or
(c)
It is found by the Assistant Vice President of
Business Operations unconscionable not to allow
the response to be withdrawn.
(ii )
Mistakes:
(a)
Confirmation of Response
When it appears from a review of the response that
a mistake has been made, the vendor wil be asked
to confirm the response. Situations in which
confirmation should be requested include apparent
errors or price unreasonably lower than other
submitted prices. Upon acknowledgment that an
error was made, the vendor may have its response
considered as is or may withdraw its response if the
conditions set forth in this section are met.
(b)
Minor Informalities
Minor informalities are matters of form rather than
substance, are evident from the response or
insignificant mistakes that can be waived or
corrected without prejudice to other vendors; that
is, the effect on price, quantity, quality, delivery or
contractual conditions is negligible. The purchasing
agent may waive such informalities or al ow the
vendor to correct them depending on which option
is in the best interest of the University.
(c)
Determinations
Any decision to permit or deny correction or
withdrawal of a response under this section shal be
supported by a written determination prepared by
the purchasing agent.
e.
Evaluation and Award
Al responses shal be evaluated as outlined in the solicitation.
Where appropriate, procurements may take into account the costs
for the ful life cycle of any resulting contract to determine total
expected cost. The purchasing agent shal ensure that the award
decision treats al vendors equitably.
(i)
The purchasing agent shal make purchases from and
award contracts to, response vendors only.
(ii)
Tie quotes/bids
Tie quotes/bids are responsive quotes/bids from
responsible vendors that are identical in price, terms and
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conditions and which meet al the requirements and criteria
set forth in the solicitation:
(a)
The award shal be made to the vendor that is a
smal business as defined by the Smal Business
Administration, if identical favorable quotes/bids are
received.
(b)
If more than one tie quote/bid is from a smal
business or if none are, the award shal be made to
the local business if identical favorable quotes/bids
are received from local and non-local business.
(c)
If more than one tie quote/bid is from businesses
that meet or do not meet (a) or (b) above then the
award shall be made to the minority (MBE) owned,
women (WBE) owned or hub zone (HZ) business if
identical favorable quotes/bids are received from
MBE/WBE/HZ business and a non-MBE/WBE/HZ
business.
(d)
If more than one tie quote/bid is from a business
that meet or do not meet (a), (b) or (c) above then
the award shal be made to the in-state business if
identical favorable quotes/bids are received from in-
state and out-of-state businesses.
(e)
If none of the above applies, the purchasing agent
shal flip a coin in the presence of another person to
determine the awarded vendor.
8.
Cancellation of Solicitations
a.
Reasons for Cancel ations
Any solicitation may be cancel ed in whole or in part at any point in
the process when it is in the best interest of the University as
determined by the Assistant Vice President of Business
Operations. Approval to cancel wil be obtained from the Assistant
Vice President of Business Operations prior to cancel ation. The
reason(s) for doing so shal be made part of the file and may
include, but are not limited to, the fol owing:
(i)
The University no longer requires the goods or services;
(ii)
The University no longer can reasonably expect to fund the
procurement;
(ii )
Proposed amendments to the solicitation would be of such
magnitude that a new solicitation is desirable;
(iv)
Ambiguous or otherwise inadequate specifications were
part of the solicitation;
(v)
The solicitation did not provide for consideration of al
factors of significance to the University;
(vi)
Prices exceed available funds and it would not be
appropriate to adjust quantities or qualities to come within
available funds;
(vi )
Al otherwise acceptable bids or proposals received are at
clearly unreasonable prices;
(vi i)
The University has reason to believe that the bids or
proposals may not have been independently arrived at in
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open competition, may have been col usive or may have
been submitted in bad faith. In this case, a notice of
rejection shal be sent to al vendors that submitted bids or
proposals; or
(ix)
The number of responses is not sufficient to ensure
adequate competition.
b.
Notice
When a solicitation is cancelled, notice of cancellation shall be
posted on the electronic solicitation notifications system.
c.
Disposition of Bids or Proposals
When bids or proposals are rejected or a solicitation is cancelled
after bid or proposals are received, the bids or proposals, which
have been opened, shal be retained in the procurement file. Bids
and proposals, which have not been opened, shal either be
returned to the vendors (upon request) or shal be disposed.
B.
Procurement Procedures for Purchases Totaling $150,000 or Less

Procurements shal not be artificial y divided so as to constitute smal -dol ar purchases
as defined under this section. Al purchases, including smal -dol ar purchases, are
subject to the requirement that prices paid be fair and reasonable (C.R.S. §24-30-
202(2)).
1.
Small-dollar purchases - purchases totaling $4,999 or less
The University has developed the fol owing mechanisms for the purchase
of most goods and some services totaling $4,999 or less. Split purchases
are prohibited.
a.
The University Procurement Card – This is the preferred method
for al purchases of goods $4,999 or less.
i. Faculty and staff may obtain a procurement card based on the
discretion of their Department Head, Vice President or
Director. Graduate students may also obtain a procurement
card with a stipulated contract start and end date. Other
persons of interest may be given a procurement card on a
case-by-case basis. The procurement card is to be used only
by the person to whom the card was issued.
ii. Al use of the Colorado School of Mines procurement card
must comply with the University’s financial policies,
procurement rules and direct charging policies (applicable to
sponsored grants and contracts). Specific purchases that are
prohibited on the procurement card include (but are not limited
to):
1. Personal purchases
2. Transactions split to work around the $4,999 Single
Purchase Limit
3. Alcohol
4. Travel (Unless using the OneCard, the Event Card, or
a waiver has been issued)
5. Chemicals
6. Purchases made from a contract without an authorized
signature
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7. Telecommunications
8. Cash or cash-type transactions such as gift cards
9. Purchases that violate mandatory price agreements
10. Purchases involving the University’s Trademark or
Logo.
iii. Procurement card holders are responsible for obtaining
appropriate supporting documentation. For every transaction
the cardholder must obtain an itemized receipt that includes
the: 1. Purchase Date
2. Vendor name
3. Transaction ID
4. Description of items purchased
5. Quantity and price of items purchased
6. Any applicable fees and shipping
The type of procurement card being used wil determine where
and how the supporting documentation must be maintained.
The Control er’s Office website provides more detailed
information.
iv. The department is responsible for al charges made on
procurement cards issued to cardholders within their
supervision. If it is determined that a charge is made on the
procurement card that is against any University Policies,
the cardholder may be personally liable for the
unauthorized charge.
v. Misuse of the procurement card according to the financial and
procurement policies wil result in the cardholder being issued
a Violation Notification. Violations are given out on a weighted
system (from 15-150 points per violation) based on the type of
violation. If a cardholder receives 150 points worth of violations
within two years, the card wil be suspended for a minimum of
six (6) months pending the completion of procurement card re-
training. Continued misuse of the procurement card beyond a
two-year period may result in the permanent suspension of the
card at the discretion of the Control er. Card abuse resulting
in fraud will result in a permanent suspension and must
be immediately reported to the Controller and the Internal
Audit Department.
The Control er must approve any exceptions to these rules
regarding the use of the procurement card.
b.
Voucher request or direct pay – University departments may work
directly with the Accounts Payable unit within the Control er’s
Office for purchases $4,999 and under were the procurement card
is not an option.
i. A voucher request and related invoice(s) may be submitted to
Accounts Payable with documented authorization to pay and
the appropriate index and account code to be charged.
ii. The Accounts Payable unit wil determine whether
documentation is adequate to make a payment or if additional
information is required before payment is made.
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c.
Field purchase orders – In cases where the procurement card or a
voucher request is not an option, University departments may
issue field purchase orders from pre-printed stock for purchases
up to $1,000. Field purchase orders and related supporting
documentation should be submitted directly to the Accounts
Payable unit for payment processing.
2.
Purchases of goods or services totaling $5,000 through $50,000
[Includes purchases less than $5,000 where neither the procurement
card, a voucher request, nor a field purchase order wil suffice.]
Purchases of these types are processed at the discretion of the
purchasing agent. Requestors are encouraged to include a recommended
vendor at the time of the request. Requestors are required to include 3
quotes supporting the requestor’s recommendation for al purchase
requests between $10,000 and $50,000 and for al purchase requests
above $3,500 made using federal funds. The purchasing agent may
evaluate the supporting documentation and place the order with any
vendor that the purchasing agent determines serves the best interest of
the University considering cost and other factors.
3.
Purchases of goods or services above $50,000 but less than
$150,000
a.
The above shall be purchased using the documented quote
process unless there is a written determination by the purchasing
agent, approved by the Assistant Vice President of Business
Operations, that a Request for proposal, Invitation for Bid, or sole
source procurement better meets the needs of the University.
b.
For goods and services procurements, neither the solicitation nor
the vendor’s response constitutes an “offer”; therefore,
responsiveness at the time of receipt is not an absolute criterion.
The purchasing agent wil determine whether or not a response is
acceptable and may compare the relative value of competing
response, not solely the price. The ensuing purchase order or
change order shal constitute an offer. The vendor may accept by
performance, unless the purchase order or change order
expressly requires acceptance by written acknowledgment.
c.
The choice of vendor for goods and services must be based on
which acceptable response is most advantageous to the
University with price/cost being a consideration. The basis for
selection must be documented and wil be final.
d.
Documented quotes must be advertised in accordance with
Section 5.A.3. Solicitations must remain posted for a minimum of
three (3) working days unless the Assistant Vice President of
Business Operations provides a written determination that a lesser
time is required in order to meet an immediate University need.
e.
The purchasing agent may negotiate with any vendor to clarify its
quote or to effect modifications that wil make the quote
acceptable or make the quote more advantageous to the
University. However, in the negotiation process the terms of one
vendor’s quote shal not be revealed to a competing vendor and
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all quotes wil be kept confidential until a purchase order or
change order is issued.
f.
Quotes may be submitted electronical y when the terms of the
solicitation permit electronic submission.
g.
Competitive reverse auctions. Contracts for goods and services
may be awarded by competitive reverse auction if the purchasing
agent determines that adequate competition can be achieved.

C.
Procurement Procedures for Purchases totaling over $150,000
1.
Invitation for Bids (IFB)

a.
Use of Invitation for Bids
Invitation for bids is a method of procurement that results in a
contract being awarded to the lowest responsive bid from a
responsible bidder based on the specifications set forth in the
solicitation. Typical reasons why an IFB may be used include:
(i)
The award wil be made on the basis of price; or
(ii)
It is not necessary to conduct negotiations with the
responding bidders about their bids.

b.
Solicitation Time
The minimum time for the IFB opening date shall be not less than
fourteen (14) calendar days after posting the solicitation on the
electronic solicitation notification system. When special
requirements or conditions exist, the Assistant Vice President of
Business Operations may shorten the IFB time, but in no case
shal the time be shortened in order to reduce competition.
Solicitation periods of less than fourteen (14) calendar days shal
be documented as to why a reduced IFB period was required.

c.
Advertisement
IFBs must be advertised in accordance with Section 5.A.3.

d.
Late Responses
Responses received after the due date and time shal not be
opened and shal be rejected as late.
e.
IFB Opening
The name of each bidder, the bid price(s) (unless otherwise
provided in the invitation for bids), and other information deemed
appropriate by the purchasing agent shal be read aloud at the
time of the IFB opening. Reading of al bid item prices may not be
reasonable or desired (e.g., in the case of lengthy or complex
IFBs). The decision not to read al bid prices shal be made by the
purchasing agent. The name of each bidder, amount of the bid,
delivery date, name(s) of witness(es) and other relevant
information shal be entered into the record and the record shal
be available for public inspection. Prior to award, copies of pricing
information not read aloud at the IFB opening shall be made
reasonably available for inspection, if requested. Other information
related to a bid, or the bid’s responsiveness, may be withheld from
inspection until questions concerning such information are
resolved. After award, al IFB/bid documents and a complete bid
analysis shall be open to public inspection except to the extent the
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University has approved a bidder’s request that information be
held confidential as set forth in Section 5.A.7.c.
f.
Award
All goods and services shal be evaluated for acceptability against
the specifications and/or brand name used as a reference and
other evaluation criteria as set forth in the IFB. Fol owing
determination of acceptability, bids shal be evaluated to
determine which bidder offers the lowest costs to the University in
accordance with the specifications, taking into account any life-
cycle cost formulas stated in the IFB.
g.
Multi-Step Sealed IFBs
A multi-step sealed IFB is a two-phase process. The first phase
(technical phase) is composed of one or more steps in which
bidders submit un-priced technical offers to be evaluated by the
University. The second phase considers only those bidders whose
technical offers were determined to be acceptable during the first
phase. At this time, those price bids wil be opened and
considered. The process is designed to obtain the benefits of
competitive sealed bidding by award of a contract to the lowest
responsive, responsible bidder and at the same time obtain the
benefits of the request for proposal procedure through the
solicitation of technical offers and the conduct of discussions to
evaluate and determine the acceptability of technical offers.
h.
Best Value IFBs
(i)
Use of the best value IFB:
A best value IFB is used where the IFB specifical y
al ows for enhancements, options and/or
alternatives. A best value IFB must include a base
bid statement.
(ii)
Written Determination:
The purchasing agent shal provide a written
determination for approval to the Assistant Vice
President of Business Operations prior to the use of
a best value IFB. The written determination must
explain why the best value IFB is appropriate for
the good or service being solicited.
(ii )
Evaluation:
The criteria or formula for evaluation must include
objective consideration of the costs and savings
and/or benefits associated with enhancements,
options or alternatives. Based on the evaluation of
the cost of the base bid, the dol ar value of
enhancements, options or alternatives and the
determination of which best meet the needs of the
University, an award shal be made to the bidder
providing the best value to the University.
i.
Competitive Reverse Auction Contracts
Contracts for goods and services may be awarded by competitive
reverse auction if the purchasing agent determines that adequate
competition can be achieved.
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2.
Request for Proposals
a.
Use of Request for Proposals (RFP)
RFPs wil be used for the solicitation of competitive sealed
proposals over $150,000 that are evaluated on the basis of factors
that include but are not limited to price. Evaluations shal be based
on the factors set forth in the RFP in order to determine which
proposal(s) best meet(s) the needs of the University.
(i)
Written Determination – The purchasing agent must
provide a written determination for approval to the
Assistant Vice President of Business Operations prior to
the use of an RFP. The written determination must explain
why the RFP is the proper method of solicitation.
(ii)
Evaluation Committee – A committee of no less than three
(3) individuals shall evaluate all responsive proposals.
b.
Solicitation Time
RFPs wil be open for a minimum of thirty (30) calendar days
unless the Assistant Vice President of Business Operations
approves a shortened timeframe in writing.
c.
Advertisement
RFPs wil be advertised in accordance with Section 5.A.3.
d.
Late Responses
Responses received after the due date and time shal not be
opened and shal be rejected as late.
e.
RFP Opening
There shal be a public opening at a date and time specified in the
RFP. The purchasing agent shal read the name of al proposers
submitting responses. A witness shal be present. Al information
other than the proposers’ names remains confidential until posting
of the notice of intent to award.
D.
Competitive Negotiation
Contracts or recurring smal dol ar procurements may be awarded by competitive
negotiation as defined on page 34.
1.
Allowable Use
a.
A contract may be awarded by competitive negotiation after an
unsuccessful invitation for bids or request for proposals process if
the Assistant Vice President of Business Operations determines
that time does not permit re-solicitation.
b.
Smal dol ar procurement agreements (smal dol ar procurements
that are recurring and are not expected to exceed 50,000 per
department per year) may be awarded by competitive negotiation
with donor, smal , local, minority, women or hub zone businesses
when it is in the best interest of the University to do so and in
accordance with Section 8 of these rules.
2.
Unsuccessful IFB/RFP processes
An Invitation for bid or request for proposal process is unsuccessful if:
a.
Al offers received are unreasonable or uncompetitive;
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b.
The low bid exceeds available funds as certified in writing by the
appropriate fiscal officer;
c.
The solicitation has been properly cancel ed in accordance with
the provisions of Section 5.A.8.; or
d.
The number of responsive offers is not sufficient to ensure
adequate competition.
3.
Participants
The competitive negotiation process shal include al vendors who
responded to the solicitation or any re-bid and may include other vendors
capable of fil ing the University’s needs. The University may also actively
encourage smal , local, women, minority, in-state or hub zone businesses
to participate in the competitive negation process or partner with vendors
who original y responded to the IFB or RFP.
4.
Times and Locations
Procurement services may set reasonable times and locations for
participation in the competitive negotiation, reflecting the fact that time
constraints are the basis for the competitive negotiation process.
5.
Separate Negotiations
Each vendor with whom procurement services negotiates shall be given a
fair and equal chance to compete. Negotiations shal be conducted
separately and independently with each vendor and in no case shal the
terms of any vendor’s offer be communicated to any other vendor until
intent to award notice has been issued. Any change in requirements shal
be communicated to al vendors.
6.
Elimination from Process
A vendor may be eliminated from the process upon a determination that
its offer is not reasonably suspected of being selected for award.
7.
Award
The award shal be made to the vendor whose offer is most
advantageous to the University. The Assistant Vice President of Business
Operations shal make a written determination that identifies the nature of
the discussions with each vendor and that states why the selected offer is
the most advantageous to the University.
E.
Exceptions to Competitive Solicitation Processes
1.
Sole Source Procurements
Procurement without competition is authorized under limited conditions and
subject to written justification documenting the conditions, which preclude the use
of a competitive process. A sole source procurement is justified when there is
only one good or service that can reasonably meet the need and there is only
one vendor who can provide the good or service. A requirement for a particular
proprietary item (i.e., a brand name specification) does not justify a sole source
procurement if there is more than one potential vendor for that good or service.
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Price is not a consideration to justify a sole source procurement. In cases of
reasonable doubt, competition wil be solicited.


a.
Continuing need for Sole Source
Procurement services shal take reasonable steps to avoid using
sole source procurement except in circumstances where it is both
necessary and in the best interests of the University. Procurement
services shal take action, whenever possible, to avoid the need to
continue to procure the same goods and/or services without
competition.


b.
Sole Source Procurement Procedures
(i)
The requesting department shal submit a sole source
justification detailing why the procurement is a sole source
along with any other pertinent information regarding the
sole source procurement; e.g. vendor quote, requisition,
literature, etc.
(ii)
Procurement services is the final authority of the approval
of sole source procurements.
(ii )
The purchasing agent shal publish al sole source
procurements for at least three (3) days on the electronic
solicitation system to al ow vendors an opportunity to
comment on the validity of the sole source.
(iv)
The purchasing agent has a duty to negotiate the most
favorable price, terms and conditions notwithstanding the
sole source nature of the procurement. The purchasing
agent is required to make a written determination that the
price is fair and reasonable.
2.
Emergency Procurements
When an emergency condition exists that prevents the use of a competitive
procurement method, the University may conduct a procurement on an
emergency basis. Emergency procurements may be negotiated on a sole source
or limited competition basis as dictated by the circumstances surrounding the
emergency.

a.
Determination of Need
An emergency condition justifies the use of an emergency
procurement when that conditions threatens one (1) or more of the
fol owing:
(i)
The functioning of the University, or its programs;
(ii)
The preservation or protection of property; and/or
(ii )
The health or safety of any person(s) or animal(s).

Emergency procurements do not include: procurements that need
to be rushed because of a failure to plan ahead; end of fiscal year
procurements; or, end of grant/contract procurements.


b.
Authority to Make Emergency Procurements
The University may make emergency procurements when an
emergency condition arises and the need cannot be met through
normal procurement methods, provided that whenever practicable,
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approval by the Assistant Vice President of Business Operations
shal be obtained prior to the procurement. In the event an
emergency arises after normal working hours, the University
department shal notify the Assistant Vice President of Business
Operations on the next working day. If the Assistant Vice
President of Business Operations determines that al criteria for an
emergency procurement were not met, then the procurement wil
be processed as an “after-the-factprocurement as set forth in
Section 7.


c.
Limits of an Emergency Procurement
The emergency procurement shal be limited to the procurement
of only the types of items and quantities or time period sufficient to
meet the immediate threat and shal not be used to meet long-
term requirements.


d.
Documentation
As soon as practicable, the University department shal prepare a
written justification, to be approved by the Assistant Vice
President of Business Operations, that sets forth the justification
for the emergency procurement. The justification shal include the
fol owing:
(i)
The basis for the emergency procurement including the
date the emergency first became known;
(ii)
A listing of the goods and/or services procured;
(ii )
A description of the efforts made to ensure that proposals
or offers were received from as many potential vendors as
possible under the circumstances; and
(iv)
The basis for the selection of the vendor.


e.
Procedures
(i)
The procedure used shal be selected to assure that the
required goods and/or services are procured in time to
meet the emergency. Given this constraint such
competition as is practicable shal be obtained.
(ii)
Any acceptable form of solicitation (e.g. written, faxed,
electronical y transmitted, phoned, etc.) may be used to
obtain proposals for an emergency procurement.
3.
University Wide Price Agreements

a.
The Assistant Vice President of Business Operations may issue
University-wide price agreements for goods and services for use
by all University departments. Such price agreements may
include, but are not limited to University initiated agreements or
cooperative agreements. The purpose of such agreements is to
promote efficiency and savings that can result from leveraging the
University’s buying power.

b.
University price agreement pricing is based on the University’s
overal anticipated volume of purchases during the agreement
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period. In order to assure the University of the least total cost of
goods or services, al University departments are required to order
needed goods or services from University price agreements where
applicable.

c.
Procurement services is responsible for publicizing al University-
wide price agreements and for monitoring compliance.

4.
Cooperative Purchasing Agreements

a.
The Assistant Vice President of Business Operations may
approve the purchase of goods or services from a cooperative
purchasing agreement if he/she finds that such purchase is in the
best interest of the University after considering the
competitiveness of pricing under the contract and the efficiencies
and cost savings of using the contract.

b.
The University may participate in, conduct, sponsor or administer
a cooperative purchasing agreement. This includes, but is not
limited to, agreements with any of the fol owing:
(i)
The federal government or an agency or other
instrumentality of the federal government;
(ii)
The State of Colorado, another state, or an agency or
other instrumentality of the State of Colorado or another
state;
(ii )
A bi-state or multi-state agency;
(iv)
A county, municipal corporation or other political
subdivision of the State of Colorado or any other state, or
an agency or other instrumentality of the political
subdivision;
(v)
Other institutions of higher education; or
(vi)
A cooperative or organization established for the purpose
of establishing contracts to aggregate the common
requirements of similar institutions for maximizing
economies of scale when soliciting bids or proposals.
Examples include the Educational and Institutional
Cooperative and the Western States Contracts Al iance.

c.
The Assistant Vice President of Business Operations may
approve a single purchase or approve ongoing participation in a
cooperative or consortium purchasing agreement as a University-
wide price agreement. The Assistant Vice President of Business
Operations has the final authority to approve the University’s
participation in cooperative or consortium purchasing agreements.
F.
Price Cost Analysis
Price cost analysis is required when there is no competition (such as a sole source
procurement or when only one response is received to a solicitation). The purchasing
agent must ensure that the price the University is paying is fair and reasonable by
completing a price cost analysis. Procurements, where appropriate, should take into
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account the costs for the ful life cycle of any resulting contract to determine total
expected cost. Additional y, federal laws mandate that the University perform price cost
analysis under certain conditions.

If, after analysis, the purchasing agent does not feel the price to be paid is fair and
reasonable, he/she wil either seek competition or negotiate with the vendor to lower the
price.
G.
Demonstration or Sample Agreements
Equipment requested by University department from vendors, or offered by vendors to
University departments, on a trial, loan, demonstration or evaluation basis does not
constitute a commitment to purchase said equipment. The University department shal
be responsible for advising the vendor that, for purchases totaling over $5,000 a
purchase order or change order wil be issued at the discretion of the purchasing agent,
and that competitive purchasing procedures shal be used as required by University
policies and procedures. If the vendor who loaned the equipment is the successful
vendor, new equipment must be supplied unless otherwise specified.

Al moving, handling, transportation and applicable instal ation costs associated with
equipment of this nature are the sole responsibility of the vendor unless otherwise
specified. The University wil not incur any costs associated with equipment that is on
trial, loaned, demonstrated, tested or evaluated unless otherwise specified.

Any agreement, which is required by the vendor, shal be executed by the appropriate
purchasing agent, regardless of dol ar value of the equipment.

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6.0
CONTRACTS
A.
Types of Contracts
Subject to the limitations of this section, any type of contract that wil promote the
best interests of the University may be used; except that the use of a cost plus a
percentage of the suppliers cost contract is prohibited. A cost reimbursement
contract may be used only when a written determination is made that such
contract is likely to be less costly to the University than any other type of contract
or that it is impracticable to obtain the goods or services required unless the cost
reimbursement contract is used. The minimum requirements for contract
formation and content are contained in Chapter 3 of the Colorado School of
Mines Financial Policies.
B.
Multi-Year Contracts
Procurement services may enter into multi-year contracts for goods and/or
services subject to funding availability. Contracts for periods in excess of five (5)
years require the written approval of the Assistant Vice President of Business
Operations.
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7.0
AFTER-THE-FACT (“ATF”) PURCHASES

Per University regulations, al after-the-fact purchases must be processed in accordance
with the Colorado School of Mines Financial Policies, Section 2.2.5. The University
considers after the fact purchases to be unauthorized transactions. It is possible that the
individual who authorized such a transaction could be held personal y responsible for the
cost associated with the transaction and or to have disciplinary measures result from the
transaction.

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8.0
DISPUTES & REMEDIES
A.
Types of Disputes
The Assistant Vice President of Business Operations is authorized to settle and
resolve any questions regarding:
1.
Any protest concerning the solicitation or award of a contract;
2.
Any controversy arising between the University and a contractor by virtue
of a contract between them, including, without limitation, controversies
based on breach of contract, mistake, misrepresentation or any other
cause for contract modification or rescission; and,
3.
As per delegation from the State of Colorado Purchasing Office, any
dispute arising from solicitations and contracts through the State
Buildings process which is initiated and managed by Planning and
Construction.
B.
Costs of Filing
Al costs associated with filing and prosecuting a protest or contract dispute shall
be borne by the protestor/contractor.
C.
Protests other than Contract Disputes
1.
Filing of Protests
a.
Subject of Protest
Protestors may file a protest on any phase of a solicitation or
award including, but not limited to, specifications, award, or
disclosure of information marked as confidential in a solicitation
offer. Protests shal be submitted in writing within seven (7)
working days after such aggrieved person knows or should have
known of the facts giving rise thereto.


b.
Form
The written protest shal include, at a minimum:
(i)
The name and address of the protestor;
(ii)
Appropriate identification of the procurement by solicitation
number;
(ii )
A statement of the reasons for the protest; and
(iv)
Any available exhibits, evidence or documents
substantiating the protest.


c.
To Whom Addressed
The protest shal be addressed to the Assistant Vice President of
Business Operations or Procurement Manager and sent to the
Office of Business Operations.
2.
Requested Information
Any additional information regarding the protest should be submitted
within the time period requested in order to expedite resolution of the
protest. If any party fails to comply expeditiously with any request for
information by the Assistant Vice President of Business Operations, the
protest may be resolved without such information.
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3.
Decision
The Assistant Vice President of Business Operations shal render a
written decision regarding the protest within seven (7) working days after
the protest is received. The decision shal be based on and limited to a
review of the issues raised by the protestor and shal set forth each factor
taken into account in reaching the decision. The Assistant Vice President
of Business Operations shal furnish a copy of the decision to the
protestor in writing.
4.
Stay of Procurement
In the case of protested RFPs only; there shal be a stay of procurement
until the decision of the Assistant Vice President of Business Operations
is rendered, unless the Assistant Vice President of Business Operations
determines that execution of a contract without delay is necessary to
protect substantial University interests.
5.
Actions in Court
If a protestor has filed a complaint in court which complaint is also the
subject of a protest filed with the Assistant Vice President of Business
Operations, the Assistant Vice President of Business Operations wil not
review the protest.
6.
Entitlement to Costs
When the Assistant Vice President of Business Operations substantiates
a protest and the protestor should have been awarded the contract under
the solicitation but, due to a defect in the University’s solicitation or
process, was not, the protestor shal be entitled to the reasonable costs
incurred in connection with responding to the solicitation. No other costs
shal be permitted and reasonable costs shal not include attorney fees.
D.
Contract Disputes
1.
Statement of Policy
The terms and conditions of University contracts establish procedures
and remedies to resolve contract and breach of contract controversies
between the University and a contractor. It is the University’s policy to try
to resolve al controversies by mutual agreement through informal
discussions without litigation. As used in these rules, the word
“controversy” is meant to be broad and all encompassing, including the
ful spectrum of disagreements from pricing of routine contract changes to
claims of breach of contract.
2.
Situation Prior to Issuing Decisions
When a controversy cannot be resolved by mutual agreement, the
Assistant Vice President of Business Operations shal review the matter
within twenty (20) working days after receiving a written request by the
contractor for a final decision and shal issue a written decision.
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3.
Final Decision
The Assistant Vice President of Business Operations shal furnish a
written copy of the decision to the contractor. The decision shal include:
a.
A description of the controversy;
b.
A reference to the pertinent contract provision(s);
c.
A statement of the factual areas of agreement and
disagreement; and
d.
The supporting rationale for the decision.
4.
Actions in Court
If a contractor has filed a complaint in court which complaint is also the
subject of a protest filed with the Assistant Vice President of Business
Operations, the Assistant Vice President of Business Operations wil not
review the protest.
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9.0
SUSPENSION & DEBARMENT
A.
Suspension
After meeting with the affected University department(s) and, where practicable,
the vendor who is to be suspended, the Assistant Vice President of Business
Operations may issue a written determination to suspend a vendor from doing
business with the University pending an investigation to determine whether
cause exists for debarment. The suspension shal not exceed three (3) months
unless a criminal indictment has been issued for an offense, which would be
cause for debarment. In such cases, the suspension may remain in effect until
after the trial of the suspended vendor.

1.
A written notice of the suspension, including a copy of the determination,
shal be sent to the suspended vendor. The notice shall:
a.
State that the suspension wil be for the period necessary to
complete an investigation into possible debarment; and
b.
Inform the suspended vendor that any person(s) representing the
suspended vendor during the suspension period may conduct no
business with the University and that any solicitation responses
received from the suspended vendor during the suspension period
shal not be considered.
2.
The suspension period wil be effective upon issuance of the notice of
suspension.
B.
Debarment
1.
A vendor may be debarred for any of the fol owing reasons:
a.
Conviction of a criminal offense in relation to obtaining or
attempting to obtain a University contract or in the performance of
such contract;
b.
Conviction under State of Colorado or federal statutes of
embezzlement, theft, forgery, bribery, falsification or destruction of
records or receiving stolen property;
c.
Conviction under State of Colorado or federal antitrust statutes
arising out of the submission of bids or proposals;
d.
Wil ful material failure to perform in accordance with the terms of
one or more contracts fol owing notice of such failure, or a history
of material failure to perform, or of material y unsatisfactory
performance of one or more contracts;
e.
The vendor is currently under debarment by any other
governmental entity which is based upon a settlement agreement
or a final administrative or judicial determination issued by a
federal, state or local governmental entity; and/or
f.
Violation of the provisions of Section 7-108-401 C.R.S., “General
Standards of Conduct for Directors and Officers.”

2.
Fol owing completion of the investigation to determine whether a vendor
has engaged in activities that are cause for debarment, the Assistant Vice
President of Business Operations may debar the vendor. A vendor may
be debarred for a period of time commensurate with the seriousness of
the offense.
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3.
A written notice of debarment shal be sent to the debarred vendor. The
notice shall:
a.
State the debarment period; and
b.
Inform the debarred vendor that any person(s) representing the
debarred vendor during the debarment period may conduct no
business with the University and that any solicitation responses
received from the debarred vendor during the debarment period
shal not be considered.

4.
The debarment period wil be effective fourteen (14) days after the notice
of debarment is sent to the debarred vendor.
5.
After the debarment period begins, the vendor shal remain debarred until
the debarment period specified expires unless a court of competent
jurisdiction or the Assistant Vice President of Business Operations deems
otherwise.
C.
Master List
The Office of Business Operations shal maintain a master list of al suspensions and
debarments. The master list containing information concerning suspensions and
debarments wil be a public record.

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10.0 LOCAL, SMALL BUSINESS & DONOR BUSINESS PROGRAM

Successful smal businesses have a positive impact on the University community and it
is important that the University promote a strong diverse business community.
Therefore, the University has established a Local, Smal and Donor Business Program
whose mission is to maximize the opportunities for local business concerns, donor
business concerns and smal business concerns, including smal , disadvantaged
businesses, woman-owned businesses, hub zone businesses, historical y black
col eges/universities and minority institutions, and veteran-owned and service-disabled
veteran-owned businesses to participate in the University’s business of procuring goods
and services at al dol ar levels.

The fol owing is a summary of provisions included in these rules that address local, smal
or disadvantaged businesses.

1.
Tie quotes/bids situations as described in Section 5.A.7.e.(ii)(a)
(b) (c) and (d).
2.
Competitive negotiation situations as described in Section 5.D.1.b.

No provision is made in these rules for set asides or preferences for smal or
disadvantaged business. However, the University endeavors to provide opportunities for
all businesses in compliance with the Federal Acquisition Regulations Sections 19 and
52. Further, the University believes it receives direct benefit from its relationships with a
diverse vendor base.
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11.0 PROCUREMENT RECORD INFORMATION & RETENTION

Procurement records may be subject to disclosure pursuant to the provisions of the
Colorado Open Records Act C.R.S. § § 24-72-1010 et seq.

Procurement records shal be retained and disposed of in accordance with applicable
records retention policies. At this time the Record Retention is three (3) years unless
research/grant related.

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12.0 DEFINITIONS

The terms defined in this section shal have the fol owing meanings whenever they
appear in these rules, unless the context in which they are used clearly requires a
different meaning or a different definition is prescribed for a particular section or portion
thereof.

Acceptable, with regard to a bid or proposal, means an offer submitted by any person in
response to a solicitation issued by the University that is in compliance with the
solicitation terms and conditions and within the requirements of the specifications
described and required therein.

Adequate competition exists if a documented quote, competitive sealed bid or
competitive sealed proposal has been conducted and at least two responsible and
responsive offerors have independently competed to provide the University’s needed
goods or services. If the foregoing conditions are met, price competition shal be
presumed to be "adequate" unless the purchasing agent determines, in writing, that such
competition is not adequate.

Advantageous means an assessment of what is in the University's best interests.

An After-the-Fact (“ATF”) purchase occurs when a department makes a purchase for
more than $5,000 before the Office of Business Operations issues a purchase order or
change order. For example, authorizing a vendor to begin work before the Office of
Business Operations issues a purchase order or change order, even though the
department has submitted a purchase requisition, is an ATF. Similarly, obtaining goods or
services on credit and subsequently submitting the invoice with a payment voucher is an
ATF unless it is a purchase specifical y al owed to be paid by payment voucher as set
forth on the voucher document.

Alternative means a choice of a different good or service that meets or exceeds the
functional requirements of the base bid.

Award means the acceptance of a bid or proposal by issuance of a purchase order or
change order and may include the execution of a written agreement to cover performance
by the vendor.

Base Bid means the minimum functional requirements of the good or service.

Best value means the lowest overal cost to the University after taking into consideration
costs, benefits, and savings.

Bid means a response from a vendor to an invitation for a bid (IFB).

Brand name specification means a specification limited to one or more goods or
services by manufacturer's names or catalogue numbers.

Brand name or equal specification means a specification that uses one or more
Manufacturer’s names or catalogue numbers to describe the standard of quality,
performance, and/or other characteristics needed to meet University requirements, and
which provides for the submission of equivalent goods or services.
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Business means any corporation, limited liability company, partnership, individual, sole
proprietorship, joint-stock company, joint venture, or other private legal entity.

Change order means a document that sets out changes to a previously issued purchase
order. A change order provides authorization to a vendor to add to or change the original
order for goods or services, as wel as, documents any change in the cost of goods or
services.
Competitive negotiation means the process of discussion and issue resolution between
a purchasing agent and a prospective vendor in order to arrange for the providing of a
good or service needed by the University. If more than one vendor is available for such
negotiation, the needs of the University must be clearly defined in advance of any
negotiations, via a specification that details ful y the University's intended procurement.

Competitive reverse auction means a computer aided bidding process through which a
pre-established group of vendors may post bids for a defined period of time and may
change their bids as desired during the bidding period.

Contract means any type of University agreement, regardless of what it may be cal ed,
for the procurement or disposal of goods or services, and includes purchase orders or
change orders.

Contractor means any entity that has a contractual relationship with the University for
the
provision of goods or services as al owed for under these rules.

Construction means the process of building, altering, repairing, improving, or
demolishing any public structure or building or any other public improvements of any kind
to any public real property. For the purposes of this code, "construction" includes capital
construction and control ed maintenance, as defined in C.R.S. § 24-30-1301.

Cost-reimbursement contract means a contract under which a contractor is reimbursed
for costs that are al owable and al ocable in accordance with the contract terms.

C.R.S. means Colorado Revised Statutes.

Determination means a written procurement decision made by the Assistant Vice
President of Business Operations, or his or her delegee, which is based on sufficient
facts, circumstances and reasoning to substantiate the decision. Each determination shal
be filed in the appropriate Procurement Department file.
Documented quote (“DQ”) means a process of soliciting informaly for fulfiling the
University's need for specific goods or services and receiving and evaluating vendor
responses. The dol ar limits for use of documented quotations shal be as stated in the
section on smal purchases and shall be conducted only by a purchasing agent.

Enhancement means components, services, or products that exceed the minimum
functional requirements and would improve the quality of the goods or services being
procured by the University.

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Field purchase orders (“FPO”) Pre-printed purchase orders not to exceed $1,000.00
that may be obtained from Shipping and Receiving.

Good means al property, whether tangible or intangible, provided by a contractor. The
term does not include land, the purchase of an interest in land, water or mineral rights,
workers’ compensation insurance, or benefit insurance for University employees.

Hub zone (“HZ”) means any business in a historical y underutilized zone as defined by
the United States Government Smal Business Administration.

In-state business means:
A.
A business that is authorized to transact business in Colorado and that
maintains its principle place of business in Colorado; or
B.
A business that is authorized to transact business in Colorado, that
maintains a place of business in Colorado, and that has filed Colorado
unemployment compensation reports in at least seventy-five percent of the
eight (8) quarters immediately before bidding on a solicitation.
Invitation for bid (“IFB”) means al documents, including those attached or incorporated
by reference, utilized by the University for soliciting bids.

Local business means any business located within ten (10) miles of the Colorado
School of Mines campus or that is a member of the Golden Chamber of Commerce or
that has an office within the City of Golden.
Minority business (“MBE”) means any business that is at least 51% minority owned or
otherwise meets the U.S. Smal Business Administration definition of a minority business
and self certifies, is certified by the National Minority Business Council, or is certified by
any Minority Chamber of Commerce or any entity of the federal government.

Option means choices of additional components, services, or goods that would serve to
provide increased value to the University beyond the base bid.

Practicable means what may be accomplished or put into practical application;
reasonably possible.

Procurement means buying, purchasing, renting, leasing, or otherwise acquiring any
goods or services. Procurement includes al functions that pertain to the obtaining of any
goods or services; including description of requirements, selection and solicitation of
sources, preparation and award of contract, and all phases of contract administration.

Procurement Card means a form of company credit card that al ows goods and some
services to be purchased and paid for without the need for an encumbrance (i.e.,
Purchase Order) being created and is designed to help the University maintain control of
smal purchases while reducing the administrative costs. Such cards are traditional y
used by companies to replace paper invoices. The University has four different company
credit cards, the P-Card, the OneCard, the Event Card, and the Ghost Card (used by the
University travel agent to pay for airfare).

Procurement Services means staff that has formal delegated authority to execute
contracts on behalf of the University. Procurement Services provides rapid analyses of
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the University’s spend and implements changes, negotiate with suppliers, and uses
University’s best practices.

Proposal means a response from a vendor to an RFP.

Protestor means any actual or prospective bidder or proposer who is aggrieved in
connection with the solicitation or the award of a contract and who files a protest.

Public entity means a state agency or institution of higher education or political
subdivision of the State of Colorado, or of another state, the federal government or any
combination thereof.

Purchase order means a document authorizing a vendor to deliver goods or services to
the University, with payment to be made at a later date. A purchase order is an offer from
the University to buy certain goods or services. The offer is accepted by the vendor when
the requested goods or services are delivered.

Purchasing agent means one of the University’s employees in the Office of Business
Operations with delegated purchasing authority from the Assistant Vice President of
Business Operations.

Qualified products list means an approved list of goods or services described by model
or catalogue numbers, which prior to competitive solicitation, the University has
determined wil meet the applicable specification requirements.

Quote means a response from a vendor to a DQ.
Request for proposal (“RFP”) means al documents, including those attached or
incorporated by reference, utilized by the University for soliciting proposals. RFPs are the
commonly used name for competitive sealed proposals.
Resale means goods that wil be purchased by a department and resold as-is. In the
case of food, items that are bought and re-sold without being altered are resale items;
items that are cut up, cooked, or otherwise processed before being re-sold are not resale
items.

Responsible means a business that has the capability in al respects to perform ful y the
contract requirements, and the integrity and reliability that wil assure good faith
performance.

Responsive means an offer, with regard to a bid or proposal, that conforms in al
material respects to the requirements contained in the solicitation.

Revenue-producing means a situation where a business pays money to the University
as a result of any activity carried on by the business with the permission or agreement of
the University. Situations that may be revenue producing wil be evaluated by the
Assistant Vice President of Business Operations on a case-by-case basis, and, if
approved as revenue producing, wil be documented in a written determination.



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Sealed means that the bid or proposal must be submitted in a manner that:
A.
Ensures that the contents of the bid or proposal cannot be opened or
viewed before the formal opening without leaving evidence that the
document has been opened or viewed;
B.
Ensures that the document cannot be changed, once received by the
University, without leaving evidence that the document has been changed;
C.
Bears a physical or electronic signature evincing intent by the bidder or
proposer to be bound. An electronic signature must comply with the
definitions and requirements set forth in the government electronic
transactions act, C.R.S. § 24-71.1-101 et seq. and its implementing rules;
and,
D.
Records, manual y or electronical y, the date and time the University
receives the bid or proposal and that cannot be altered without leaving
evidence of the alteration.

Services means the furnishing of labor, time, or effort by a contractor not involving the
delivery of a specific end product other than reports which are merely incidental to the
required performance.

Sole source procurement means a procurement made without competition, when
competition is otherwise required.

Solicitation means a request to the business community to respond to a documented
quote, invitation for bid, or request for proposal.

Specification means any description of the nature of a good or Service, or of the
physical or functional characteristics of a good or service. It may include a description of
any requirement for inspecting, testing, or preparing a good or service for delivery.

Split purchase means a procurement made of a single good or service or group of
goods or services where the procurement exceeds the cardholder’s single transaction
limit or the procurement card purchase limit and the cardholder instructed the vendor to
divide up the payments into smal er amounts, or the payment was divided among several
different procurement cards, or the procurement was requisitioned into smal er individual
orders in one day or over several days, for the sole purpose of circumventing the
cardholder’s single purchase limit or procurement card purchase limit.

Women owned business (“WBE”) means any business that is 51% women owned or
otherwise meets the U.S. Smal Business Administration definition of a women owned
business and self certifies in accordance with the rules of the State of Colorado or is
certified by the Women’s Business Enterprise National Council or by any agency of the
federal government.
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APPENDIX A
PROCUREMENT CODE OF ETHICS

Colorado School of Mines Procurement Code of Ethics

Any person employed by the Colorado School of Mines who purchases goods and
services, or is involved in the purchasing process for the University, shal be bound by this
code and shal :

1. Avoid the intent and appearance of unethical or compromising practice in
relationships, actions, and communications;

2. Demonstrate loyalty to the Colorado School of Mines by diligently following all lawful
instructions while using professional judgment, reasonable care, and exercising
only the authority granted;

3. Conduct al purchasing activities in accordance with the laws, while remaining alert
to and advising the Colorado School of Mines regarding the legal ramifications of
the purchasing decisions;

4. Refrain from any private or professional activity that would create a conflict between
personal interests and the interests of the Colorado School of Mines;

5. Identify and strive to eliminate participation of any individual in operational situations
where a conflict of interest may be involved;

6. Never solicit or accept money, loans, credits, or prejudicial discounts, and avoid the
acceptance of gifts, entertainment, favors, or services from present or potential
suppliers which might influence or appear to influence purchasing decisions;

7. Promote positive supplier relationships through impartiality in al phases of the
purchasing cycle;

8. Display the highest ideals of honor and integrity in al public and personal
relationships in order to merit the respect and inspire the confidence of the public
being served;

9. Provide an environment where al business concerns, large or smal , majority- or
minority-owned, are afforded an equal opportunity to compete for Colorado School
of Mines business; and,

10. Enhance the proficiency and stature of the purchasing profession by adhering to
the highest standards of ethical behavior.

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