Purchasing, P-Card, and Travel

Procedure Manual

Table of Contents

Travel............................................................................................................................................3A. Purpose of Regulations..............................................................................................................3

B. Official College Business...........................................................................................................3

C. Employee Responsibility............................................................................................................3

D. Travel Authorizations..................................................................................................................3

E. Blanket Authorization..................................................................................................................4

F. Local Travel....................................................................................................................................4

G. Policies Governing Travel and Expense Allowance............................................................5

H. Travel Advances...........................................................................................................................8

I. P-Card Authorized Use.................................................................................................................8

J. Travel Reimbursements...............................................................................................................8

K. Transportation by a Rental Vehicle..........................................................................................9

Procurement Card.....................................................................................................................10A. Introduction..................................................................................................................................10

B. Training.........................................................................................................................................10

C. Cardholder Separation from Nash Community College....................................................10

D. HUB Reporting.............................................................................................................................10

E. Purchasing Flexibility................................................................................................................11

F. Authorized Use............................................................................................................................11

G. Unauthorized Use.......................................................................................................................12

H. Making a Purchase & Documentation....................................................................................13

I. Requesting a VISA P-Card Checkout (Non-Cardholders)...................................................13

J. Reconciliation of Monthly Statement......................................................................................14

K. Lost or Stolen Cards..................................................................................................................14

L. Policy Enforcement....................................................................................................................14

Purchasing.................................................................................................................................16A. Purpose of Manual.....................................................................................................................16

B. Integrity.........................................................................................................................................16

C. Ethics.............................................................................................................................................17

D. Conflict of Interest......................................................................................................................17

F. Purchasing Procedures.............................................................................................................18

G. State Term Contracts................................................................................................................23

1

H. Purchasing Flexibility................................................................................................................23

I. Department of Corrections........................................................................................................24

J. Exemptions: 01 NCAC 05B .1601...........................................................................................24

K. Purchase of Used Equipment..................................................................................................25

L. Contracted Services...................................................................................................................25

M. Historically Underutilized Business Participation (HUB Vendors)................................26

N. Solicitation of Bids, Proposals & Info...................................................................................26

O. Utilities..........................................................................................................................................30

P. Demonstration by Vendors......................................................................................................30

Q. Returning Products to Supplier..............................................................................................30

R. Complaints to Vendors..............................................................................................................30

2

Travel

A. Purpose of Regulations

It is the intent of the aforementioned regulations to provide statements of policy for uniform interpretation to pay or reimburse allowable travel expenses pertaining to official travel and subsistence for official college business represented by employees, board of trustees and students.

B. Official College Business

Official college business occurs when an employee or other person is traveling to attend approved job related training, work on behalf of, officially represent, or provide a service related to the college mission. Travel that would not directly benefit the college is not reimbursable.

C. Employee Responsibility

An employee traveling on official college business is expected to exercise the same care in incurring expenses that a prudent person would exercise if traveling on personal business and expending personal funds. Excess costs, circuitous routes, delays, or luxury accommodations and services unnecessary, unjustified, or for the convenience or personal preference of the employee in the performance of official college business are prohibited. Employees will be responsible for unauthorized costs and any additional expenses incurred for personal preference or convenience.

Provided funds are available, employees who are authorized to travel on official school business will be reimbursed for expenses incurred during such travel. These reimbursements will be within the currently prescribed rates. All travel for which reimbursement is requested must have prior approval of the immediate supervisor. Travel expenses waived by the use of reward programs will not be reimbursed. Travel costs are to be charged to the appropriate department. The completed Travel Authorization Form should be submitted to the department supervisor for approval prior to the trip.

Employees are encouraged to use the College-owned vehicle(s) if available for all needed travel. However, if the College vehicle(s) is/are unavailable, a rental car or personal vehicle may be approved for travel reimbursement purposes.

D. Travel Authorizations

For college presidents only The board of trustees shall pre-authorize significant or unusual trips, etc. A travel authorization must be completed and approved for all travel not covered under blanket authorization (i.e. overnight trips, out-of-state travel, requests for excess expenses, etc.).

For employees, board of trustees and studentsAn approval form is required for travel that is necessary to conduct college business and not on a routine basis. This authorization allows the traveler to claim mileage and/or per diem reimbursements. A travel authorization form must be completed and approved for all travel not covered under a blanket authorization and must contain the following:

3

1. Name of the person(s) traveling;2. Destination(s) and purpose for which the trip will be made;3. Dates of travel;4. Source of funding (including the department/unit);5. Mileage and/or air fare, hotel and/or registration fee costs, and any other information necessary to justify the trip must be attached/included with the authorization form;6. Excess request (if needed) with justification.7. Costs to be paid with use of P-Card

The travel authorization form must secure approval of the employee’s immediate supervisor in advance for all trips prior to departure, regardless if traveling in a college owned, rental car or private owned vehicle.

E. Blanket Authorization

Blanket authorization for college presidents only – G.S. 115D-20(1) requires collegePresidents to report to the college’s board of trustees. Therefore, the College Board of trustees shall pre-authorize the President’s routine travel in the manner they see fit and determine the level of detail they require before authorizing travel, subject to State & Board of Community College guidelines. In addition, in the interest of fiscal responsibility, it is the Board’s responsibility to examine the President’s travel at their discretion.

Blanket authorization for all others, excluding college presidents – A travel approval form necessary to conduct college business on a routine basis and claim mileage reimbursement only. The Travel Authorization Form should be submitted to the department supervisor for approval and must contain the following:

1. Name of the person traveling;2. Destination(s) and purpose for travel as defined by the college, such as various site visits to monitor classes, nursing instructors commuting to local hospital(s) to conduct student clinical training, commuting to local banks to deposit daily college deposits, etc.;3. Dates of travel for example July 1, 201x – June 30, 201x;4. Source of funding; and5. Any other information necessary to justify traveling on a routine basis.

A blanket authorization form may be completed and approval secured annually. The blanket travel authorization form must be approved prior to departure for all routine travel for which reimbursement is issued.

F. Local Travel

The Local Travel Log should be used when an employee uses their personal vehicle to conduct recurring college business within the local area. The employee must record all requested information on the Local Travel Log including: Date(s) of travel, from and to locations, purpose of travel, odometer readings of vehicle driven, and source of funds to be used. The employee must sign and submit the form to their supervisor for approval before the form is submitted to the Business Office for processing. Local travel must be turned in on a monthly basis.

Examples of travel that should be reported on the Local Travel Log include: Driving from campus to an off-site instruction location, if not the employees duty

station

4

Making class visits Performing deliveries/pick-ups, etc.

In these situations, the only reimbursable expense is mileage. When travel involves registration fees, meal reimbursement, lodging, etc., employees should use the Travel Authorization Form.

G. Policies Governing Travel and Expense Allowance

Expense for travel on official business by employees, students and Board of Trustees of the College shall be reimbursed, not to exceed the following rates:

For transportation by privately owned automobiles, when round trip mileage does not exceed 100 miles (regardless of the number of days traveled) employees are to be reimbursed at the college approved rate of 45 cents per mile. When round trip mileage does exceed 100 miles (regardless of the number of days traveled), employees are to be reimbursed at rate of 33 cents per mile. Mileage should be calculated from employee’s home or duty station, whichever results in less mileage. The actual cost of road, bridge, and ferry tolls and parking expenses paid may be reimbursed with a receipt.

Current daily subsistence schedule. In-State Out-of-StateBreakfast $ 8.40 $ 8.40Lunch $ 11.00 $ 11.00Dinner $ 18.90 $ 21.60Lodging (actual, up to) $ 71.20 $ 84.10 Maximum $109.50 $125.10

Meals An authorized traveler may be reimbursed for meals, including lunches, while on official college business when the authorized traveler is in overnight travel status. The destination must be located at least 35 miles from the authorized traveler’s regularly assigned duty station (vicinity) or home, whichever is less, to receive approved reimbursement. Proper documentation (agenda or schedule) must be submitted with reimbursement to substantiate that payment for meals was necessary and accomplished. Authorized travelers may not claim reimbursement for meals included inregistration fees.

Authorized travelers may be reimbursed for meals for partial days of travel when in overnight travel status and partial day is the day of departure or the day of return. The following applies:

Breakfast: depart duty station prior to 6:00 am and extend the workday by two hours.

Lunch: depart duty station prior to noon on the day of departure or return to duty station after 2:00 pm on the day of return.

Dinner: depart duty station prior to 5:00 pm on the day of departure or return to duty station after 8:00 pm on the day of return and extend the workday by three hours.

Meal reimbursement for daily travel (when an employee is not in overnight status) is not allowable, unless the provisions for meals for conferences or events requiring employee attendance apply.

5

LodgingThe travel must involve a travel destination located at least 35 miles from the employee’s regularly assigned duty station or home, whichever is less, to receive approved reimbursement. “Duty station” is defined as location where the employee is assigned. Reimbursement to an authorized traveler sharing a room with a member of his or her family will be limited to the single occupancy rate. Reimbursement shall be substantiated by a receipt from a commercial lodging establishment.

Excess lodging authorization for in-state, out-of-state, and international travel (includingAlaska and Hawaii) must be obtained in advance from the employee’s immediate supervisor. Excess lodging is allowed when the travel is to a high cost area and theauthorized traveler is unable to secure lodging within the current allowance, or when the authorized traveler submits in writing an opinion that his/her personal safety or securityis unattainable within the current allowance. Excess lodging authorization is not allowedfor reason of convenience or personal preference for the employee.

Registration FeesRegistration fees may be paid by the college or the authorized traveler. Authorized travelers may not claim reimbursement for meals included in registration fees. To reimburse an authorized traveler for a paid registration fee, the employee must provide documentation of the expense by a paid receipt. It is the authorized traveler’s responsibility to obtain the receipt. A copy of a cancelled check used to pay a registration fee cannot be used as a valid receipt for reimbursement purposes. The employee will have to exercise due diligence to obtain a receipt in order to be reimbursed.

TransportationTravel shall be conducted in the most efficient manner and at the lowest and most reasonable cost to the college. With regard to passenger vehicle travel, whether in-stateor out-of-state, college travel policies shall:

Maximize utilization of college-owned vehicles Make use of State term contracts for short-term rentals (State Term Contract

975B Vehicle Rental Services), and Reimburse for use of personal vehicles on a limited basis.

If a college employee chooses to use a personal vehicle, actual mileage is reimbursable.Mileage is measured from the closer of duty station or point of departure to destination(and return).

Parking fees, tolls, and storage fees are reimbursable when the required receipts are obtained. Fines for traffic and parking violations are the responsibility of the employee.

Reimbursement for air, rail, or bus fare is limited to actual coach fare, substantiated by receipt. Reimbursement for baggage check-in fees is limited to actual costs substantiated by receipt. Tickets for commercial air travel may be purchased by the College or by the authorized traveler and reimbursement claimed. Travel by coach class must be utilized. Flight insurance is not reimbursable. Convenience fees added to air, rail, or bus fare for convenience to employee and not to the college are not reimbursable.

6

Reimbursement for travel between the authorized traveler’s duty station, point of departure (whichever is less) and the airline terminal, and for parking may be made under the following circumstances:

Taxi or airport shuttle – actual costs with receipts Private – note travel by privately owned vehicles earlier. Receipts are required

for airport parking claims. Use of public transportation – In lieu of using a taxi or airport shuttle, employees

can be reimbursed without receipts $5 for each one-way trip either from the airport to the hotel/meeting or from the hotel/meeting to the airport or the actual cost of the travel with the submission of receipts.

For travel involving trips other than to and from the airport, the actual costs of taxi and shuttle service fares are reimbursable when required for travel on official college business. The request must be documented with a receipt. The use of public transportation is reimbursable for actual costs with a receipt.

Tips and GratuitiesReimbursable gratuities or tips must be considered reasonable for items that are notalready covered under subsistence. Excessive tips will not be reimbursed. A reasonabletip would be one that a prudent person would give if traveling or conducting personalbusiness and expending personal funds. For further guidance, the following informationis provided when calculating a tip:

Airports: Baggage Handling/Skycaps = no more than $2 per bag; Shuttle Drivers = no more than $2 per bag.

Parking/Auto Related: Valets = $2 per car when collecting the car; Taxi Drivers =15% of the fare and $1 - $2 a bag.

Tips for handling baggage at common carrier terminals and/or when arriving at ordeparting from the place of lodging are allowed and must be itemized under "otherexpenses". Baggage tips are not counted toward the authorized subsistencemaximums, but may be claimed as miscellaneous and excessive tips must bedocumented with a receipt. Tips for room service and other hotel services are notreimbursable. The costs of laundry, entertainment, alcoholic beverages, “set-up,”between-meal snacks or refreshments, and other personal expenses are notreimbursable.

H. Travel Advances

All authorized travelers who travel on official college business may be issued advances when authorized by the immediate supervisor in order that personal funds will not be required. Eligibility for advances and reporting requirements are as follow:

College employees who have been issued college credit cards for travel purposes should not be issued travel advances unless there is substantiated justification.

7

Travel advances for occasional travel must not exceed the estimated cost of the trip and may not be issued more than five working days prior to the date of departure.

Advances must be deducted from the reimbursement request on the travel expense report that is to be submitted within thirty days after the travel period or June 30 of fiscal year, whichever comes first. A completed travel reimbursement form must be submitted even if no additional reimbursement is due.

I. P-Card Authorized Use

P-Cards may be used for the payment of seminar and conference registration, airline tickets, shuttle and taxi services, parking fees, and hotel. Meals (travel related) are NOT to be charged to the card. P-cards may be used for re-fueling of rented vehicles if not using the WEX card or personal card when travel is involved. A NCC Travel Authorization must have been completed and approved prior to these charges being made. Note on Travel Authorization charges to be paid with use of P-Card. These charges should be deducted from the subtotal and included with advances.

J. Travel Reimbursements

The bottom portion of the travel authorization form is used to request reimbursement and should be completed after travel has occurred and does not require approval if total is not over the original estimate. All expenses incurred should be documented including advances. Advances should be deducted from the subtotal reimbursement amount.

The form must be filled out completely before submitting to the Business Office for processing. The employee must always record all requested information including: Date(s) and time(s) of travel, from and to locations, purpose of travel, and number of miles driven (for private vehicle only) and source of funds to be used (Department or Unit). Receipts for registration, hotel expenses, airfare, parking, and shuttle services must accompany the form. Conference and meeting agendas/schedules must be submitted to substantiate reimbursement for meals.

Travel Reimbursements are to be submitted within 30 days of return from travel or by June 30 of fiscal year, whichever comes first. Completed travel reimbursement form must be submitted even if no additional reimbursement is due.

K. Transportation by a Rental Vehicle

For both in-state and out-of-state travel, rental vehicles shall be obtained through StateTerm Contract 975 B Vehicle Rental Services when available. Differences in cost when renting a vehicle from a class that exceeds the cost of a standard vehicle must be approved in advance by the employee’s immediate supervisor. Without such approval, the authorized traveler must pay the difference in the cost.

Authorized travelers should choose one of the following most economical means of refueling the rental vehicle:

8

Refuel the rental vehicle before returning it to the rental agency. Gas receipts for refueling the rental vehicle from a commercial gas station are required for reimbursement.

Request use of college gas card. Use of P-Card

No reimbursement will be made for additional rental insurance purchased because rental insurance is included in the state term contract price paid to the rental agency. However, reimbursement for automobile rental insurance will be permitted for individuals engaged in official college business during travel to international destinations.

Request for rental vehicle will be processed through the Business Office. Employee should submit Travel Authorization along with copy of driver’s license, identify number of passengers to select adequate size vehicle, and notify of pick-up and drop-off location, date and time to make reservation. For changes to existing reservations please contact the Business Office.

NOTE: PENALTIES AND CHARGES RESULTING FROM CANCELLATIONS: If the cancellation or change is made for the personal benefit of the employee, it shall be the employee’s obligation to pay the penalties and charges. However, in the event of accidents, serious illness, or death within the employee’s immediate family or other critical circumstances beyond the control of the employee, the college may pay the penalties and charges. Should a vendor issue a voucher as a refund, information will need to be communicated with the Business Office.

Note: For additional information regarding travel, see Section 2 of the North Carolina Community College System Accounting Procedures Manual.

9

Procurement Card

A. Introduction

Nash Community College (NCC) participates in the North Carolina State Contract 946A VISA Procurement Card (P-Card) Program. The P-Card is a payment tool, which offers an expansion of the existing NCC procurement processes. The Card allows departments to make certain transactions without having to submit a requisition for the issuance of a purchase order or a check request. Having a P-Card is a privilege that comes with responsibilities. This manual will serve as a guideline when using a P-Card. Whenever a question arises about the use of a P-Card, contact the Business Office for guidance.

The intent of the procurement card program is to provide the College with a streamlined method of payment for department related supplies, thereby reducing the volume of individual check payments to vendors. It is intended to be used by authorized staff for authorized purchases. It is not authorization to extend departments purchasing ability to acquire items not previously authorized by policy or procedure. Please refer to the Purchasing section of this manual. Purchasing and Accounts Payable audit the NCC P-Card transactions and will report and take appropriate action on any discrepancies or misuse. Abuse of the P-Card may be investigated by NCC Campus Police and/or the State Bureau of Investigation. NCC expects cardholders to exercise the same good judgement in purchases of supplies with NCC’s procurement card and same level of care and protection of the P-Card as one would with a personal credit card.

B. Training

All cardholders are required to attend an in-house training session on the use of the card. After completion of training, an agreement form must be signed stating that the P-Card user agrees to the procedures set forth in this manual. Additional training sessions may be required by the NCC P-Card Administrator if an audit reveals that unauthorized purchases have been made and/or updates deem necessary.

C. Cardholder Separation from Nash Community College

Upon retirement or resignation, the cardholder will return the P-Card to the NCC P-Card Administrator. The P-Card Administrator will work with the cardholder’s department to assure that any changes in personnel will not disrupt the purchase of goods. Purchases must be reconciled prior to departure.

D. HUB Reporting

Per G.S. 143-48. It is a policy of this State to invite and encourage participation in the procurement process from businesses owned by minorities, women, disabled business enterprises and non-profit work centers for the blind and severely disabled. HUB vendors can be searched for and identified at the following web location: http://www.doa.nc.gov/hub/searchhub.aspx. Please refer to this site when selecting vendors for purchases.

10

The College is required to file quarterly reports with the State showing the total purchases from “HUB” vendors. Bank of America will furnish NCC a quarterly report of HUB (Historically Underutilized Businesses) vendors.

E. Purchasing Flexibility

Under G.S. 115D-58.14 Community Colleges may purchase supplies, equipment, and materials that are available under State term contracts from noncertified sources, subject to the following conditions:

The purchase price, including the cost of delivery, is less than the cost under the State term contract; and

The cost of the purchase shall not exceed the bid value benchmark established under G.S. 143-53.1; and

The items are the same or substantially similar in quality, service, and performance as items available under State term contracts.

Substantially similar is defined as having comparable, but not identical characteristics in terms of quality, service and performance as items available under State term contracts.

The College must keep a detailed record of all purchases made from non-certified sources. If your P-Card purchase utilizes Purchasing Flexibility, you will need to provide quote attached to purchase.

F. Authorized Use

The P-Card is designed for repetitive commodity type purchases.

1. The North Carolina Administrative Code 01 NCAC 05B .1523 governs the P-Card Rules. At such time, the per-transaction limit shall be $2,500 including current NC sales tax and applicable freight.

2. All items that are purchased (“over the counter”, telephone or via the web) must be immediately available at the time of the P-Card transaction. No backordered items.

3. The cardholder will inform the vendor that the goods are to be taxed at the current rate even if the item is sold tax exempt. NCC is not Tax-Exempt.

4. The cardholder will comply with all State Purchase and Contract guidelines set forth in the Purchasing Procedures section of this manual.

5. The cardholder will seek and use HUB vendors in accordance with the Purchasing Procedures section of this manual.

6. Prior to use, the cardholder will check budget and will not “over spend” budget availability. The monthly spending limit on the P-card is not a reflection of actual budget.

11

7. Institutional memberships may be paid using the P-Card. Memberships are for NCC and must be in the name of NCC and not an individual employee. Individual memberships may not be paid using the P-Card and are the responsibility of the employee.

8. P-Cards may be used for the payment of seminar and conference registration, airline tickets, shuttle and taxi services, parking fees, and hotel. Meals (travel related) are NOT to be charged to the card. P-cards may be used for re-fueling of rented vehicles if not using the WEX card or personal card when travel is involved. A NCC Travel Authorization must have been completed and approved prior to these charges being made. See note below.

*Please Note: Documentation that travel expenses will be paid with a P-Card must be included with the Travel Authorization, and travel should be approved prior to these expenses being paid with a P-Card. It is the responsibility of the cardholder to ensure travel has been properly approved before charging fees.

G. Unauthorized Use

1. Splitting purchases into multiple transactions so that previously mentioned limits or state purchasing guidelines are avoided.

2. Backorders are not allowed.

3. Cash advances, alcoholic beverages, controlled substances, personal purchases, telephone calls, or monthly telephone service fees.

4. Gift Cards/Debit Cards (IRS regulations consider gift cards/debit cards to be a cash equivalent with a requirement to be added to an employee’s W-2 earnings as taxable income.)

5. Printing orders unless NCC Marketing Department and NCC Print Shop have approved the purchase.

6. Equipment purchases of any dollar amount are prohibited. This includes the purchase of laptops, netbooks, tablets, furniture and other equipment.

7. Software purchases are to be made through the E- Procurement system.

8. Meals (travel related) are not allowed since the State provides a Subsistence Rate. This rate is an allowance related to meal costs (including gratuities). Exceptions: Registration fees for conferences and seminars that include meals as a part of fee.

9. Gasoline for personally owned and college owned vehicles.

10. Contractual services (PSA or Performance Agreements/1099 vendors) should not be paid with the NCC VISA P-Card since NCC is legally responsible for reporting this income to the federal and state government.

12

When uncertain if a purchase can be made with a P-Card, contact the Purchasing Department for guidance.

H. Making a Purchase & Documentation

1. Before making a purchase, verify the P-Card’s available spending limit. This amount is not a reflection of available budget.

2. Check with the Purchasing Department regarding suppliers, State contract items, and to determine whether the purchase would need to be made through a requisition and purchase order instead of using the P-Card.

3. Confirm that the vendor agrees to accept the NCC VISA P-Card. Inform the vendor that the College is not tax exempt and all applicable taxes apply.

4. Merchandise should be shipped to 522 N Old Carriage Rd., Rocky Mount, NC 27804 or mailed to PO Box 7488, Rocky Mount, NC 27804. Under no circumstances should merchandise be received at the cardholder's residence.

5. If the cardholder does not receive the merchandise, he/she is responsible for contacting the vendor and receiving credit on the card for the merchandise. This is also true for cases of defective or merchandise returned for other reasons. Check with vendor as to their return policy to ensure return is acceptable. Please notify the Purchasing Department of these issues.

6. The vendor should not charge the P-Card until merchandise has been shipped. If a transaction appears and the merchandise has not been received, the cardholder must call the vendor to check the status of the order. If a vendor consistently delays sending an invoice/receipt for items ordered or charges a “convenience fee” for using a credit card, a P-Card should not be used with that vendor. Instead, the vendor should be informed a Purchase Order will be issued and payment will be Net 30 days.

7. All transactions are required to have a receipt. A receipt can be a charge slip, invoice, delivery ticket, etc. and must include the vendor name, date of transaction, itemized list of goods/services, unit cost and total cost. For illegible receipts, include details of purchased items. All invoices, receiving documents, credit memos, and itemized charge receipts for "over the counter" purchases of merchandise should be submitted with the monthly transaction log.

8. The authorized cardholder is responsible for all activity on his/her card. If disputing a charge, the cardholder will need to contact the Purchasing Department to complete the Bank of America Dispute Form. The Purchasing Department should be made aware of any disputes.

I. Requesting a VISA P-Card Checkout (Non-Cardholders)

A P-Card may be checked out by staff as needed from the Purchasing Department. The requester should submit a completed requisition specifying need of item(s) for P-Card purchase. All appropriate signatures and/or approvals must be completed on requisition and submitted to the Purchasing Department. Upon approval, the P-Card will be issued

13

to the requestor and signed out in the Log Book. The P-Card must be returned the same day as checkout accompanied by the detailed receipt with user’s signature.

J. Reconciliation of Monthly Statement

Monthly statements should be downloaded by cardholders for completion of P-Card transaction logs. Logs are to be completed for the month as purchases are made. Each cardholder is responsible for reconciling the monthly statement with the transaction log and corresponding receipts. The following information should be completed on the transaction log:

1. Statement closing date2. Cardholder name3. Transaction date4. Vendor name5. Brief description of items purchased. If food was purchased, please state the

reason (ex: advisory committee meeting) and the date of the event.6. Amount of purchase7. GL Code for charging of expenses8. Signature of cardholder and date

All completed transaction logs are due to the Business Office by the 10th of the month.

K. Lost or Stolen Cards

It is the Cardholder's responsibility to notify NCC Purchasing Department if the Visa P-Card is lost or stolen. If Purchasing is closed, it is the cardholder's responsibility to notify Bank of America at 1-888-449-2273 immediately and also e-mail P-card Support at nccpcards@nashcc.edu.

L. Policy Enforcement

The delegation of authority to purchase goods using the card is a privilege that automatically ceases upon separation from the college or upon reassignment to another department. The authority to enforce this policy lies with the P-Card Administrator and the Business Office.

1. Cause for Employee Disciplinary Action Fraudulent or misuse of the card, including use of the card to make personal purchases even if you intend to reimburse the college, will result in disciplinary action.

2. Cause to Suspend or Revoke Individual Card Privileges Misuse of card, or inappropriate expenditures Charges for non-approved travel Delinquent receipts Splitting transactions to circumvent transaction limits Exceeding appropriate funds available Noncompliance with state contracts

3. Reinstatement of Cards

14

All delinquent reports (transaction logs) must be turned into P-Card Administrator before consideration can be given to reinstate the account.

15

Purchasing

A. Purpose of Manual

This manual is intended to describe the laws, rules (Administrative Code), policies and procedures that must be followed in carrying out the responsibilities of a purchaser for Nash Community College. It is intended to assist with procurement questions in selecting equipment, materials, services, supplies, and printing that are necessary for the College to continue to grow and serve the needs of the citizens of Nash County.

An important core function of any state government is to wisely spend the revenue it receives from its taxpaying citizens. In North Carolina, the central authority over purchasing goods and services for all State departments, institutions and agencies is vested in the Department of Administration, and by delegation, in its Division of Purchase and Contract (“the Division” or “P&C”) through the State Purchasing Officer (SPO). Thus, the Division—and by extension, everyone performing the procurement function across State government—has primary responsibility for the prudent use of public funds and taking into account the principles of “open competition” and “transparency”.

The principle of open competition means that the State’s procurement activities generally are conducted openly, using established methods that give everyone an equalopportunity to compete for the State’s business. The State solicits its requirementspublically, and it evaluates vendor responses in an evenhanded manner based oncriteria disclosed beforehand.

The College encourages open and fair competition at all levels to ensure the taxpayers of Nash County and the State of North Carolina that their best interests are served. Price should not be considered as the absolute in the competitive arena. The lowest responsive and responsible bid is the benchmark in North Carolina's purchasing program. The lowest responsive and responsible price allows consideration of many factors, such as terms and conditions, delivery schedules and lead times, types and degrees of service required, inspection and testing procedures, transportation and delivery costs, warranties and guarantees required, and others. The purchaser's responsibility is to evaluate all the factors included in the procurement document to determine the lowest responsive and responsible offer from all offers received.

Any Nash Community College contract for the purchase or lease of any commodities, printing or services, contrary to statutes or rules, such contract/purchase shall be void and of no effect.

B. Integrity

Fairness and impartiality in all phases of the process are essential ingredients in public purchasing. Dealings with vendors and peers must be open, honest, and objective. The result of favoritism extended to either a user or seller is the same. The practice is not permissible. No matter how strongly a user may prefer a particular product over others, equivalent products must be given every reasonable consideration.

16

C. Ethics

Ethics and ethical practices are a major concern in the realm of public purchasing today. It is imperative that all public purchasing personnel be entirely cognizant of the necessity for ethical behavior. It takes only the slightest hint of impropriety to cast doubt on behavior. Sometimes, it may be even more of a perception than an actual event. Members of the staff are expected to be characterized by professional and ethical attitudes and actions, maintaining a concern and respect for the rights and feelings of their colleagues, students, and vendors.

Anyone who engages with a supplier at any level, for any reason, is involved in the purchasing process and will be held accountable to the following principles and standards of purchasing practice:

1. The purchasing power of the State shall not be used for private advantage or gain. Employees or other individuals will not process orders for articles

for ownership. 2. Avoid the intent and appearance of unethical or compromising practice in

relationships, actions and communications. 3. Refrain from any private business or professional activity that would create

a conflict between personal interests and the interests of Nash Community

College. 4. Refrain from soliciting or accepting money, loans, credits or prejudicial

discounts and the acceptance of gifts, entertainment, favors, or services from present or potential suppliers which might influence, or appear to influence purchasing decisions.

5. Do not discuss with suppliers: cost information, bid information or trade secrets. Handle all information in a confidential or proprietary nature with due care and proper consideration of ethical and legal ramifications and governmental regulations.

D. Conflict of Interest

Employees shall disclose to the Purchasing Department any potential conflict of interest of which they are aware related to the purchase of equipment, materials, goods, or services.

Except in very unusual circumstances, the College will not purchase equipment, materials, goods, or services from an employee, a member of an employee’s immediate family, or a business in which an employee or a member of an employee’s family has an ownership interest. If an exception is necessary, written disclosure of the transaction must be submitted with the purchase requisition.

E. Employee Responsibility

Any employee responsible for purchases outside the laws of the state of North Carolina shall be subject to disciplinary action by the College or the state of North Carolina. See G.S. 143-51. The North Carolina General Statutes and the North Carolina Administrative Code govern purchasing policies and procedures for community colleges. These policies

17

and procedures must be adhered to when the colleges purchase supplies, equipment, and materials, regardless of the source of funds.

The Division of Purchase and Contract’s Purchasing Manual covers the State’s purchasing procedures in greater depth and should be the primary source for purchasing information and used in conjunction with the NC Community CollegePurchasing & Equipment Procedures Manual.

F. Purchasing Procedures

I. Purchase AuthorizationAll purchases which would obligate the College for payment are the responsibility of the Vice President of Finance/CFO or persons designated by the Vice President of Finance/CFO. No employee of the College, other than the College President or Vice President of Finance/CFO is authorized to sign contracts or agreements.

II. Unauthorized PurchasesEmployees will be held responsible for any purchases made for the

College without proper authorization. The College has no obligation to reimburse an employee after an unauthorized purchase has been

made. Prior to any purchase, all requests are to be approved by immediate supervisor, and submitted to the Purchasing Department for processing.

III. Purchases for Personal Use/GainIn accordance with N.C. General Statute 143-58.1 and 01 NCAC 05B

.1510, it is unlawful for any person to use or attempt to use public purchase or contract procedures for private benefit. A violation of

this section is a Class 1 misdemeanor. College employees may not make purchases through the College with the intent of reimbursing the college.

State Term Contracts and other agreements are expressly for use by Nash Community College.

IV. Solicitation by Sales RepresentativesEmployees are not allowed to place orders directly with sales representatives. All requests to purchase by employees must be routed through the appropriate approval channels and forwarded to the Purchasing Department for processing.

V. RequisitionsA requisition must be submitted to, and approved by the Purchasing Department prior to any goods (supplies, equipment, printing, etc.), or services being charged to the College. All Purchase Orders must be initiated with a Requisition.

Requisitions may be submitted to the Purchasing Department by the following means:

18

A completed, original copy of the requisition form with all required approvals may be sent via inter-office mail (form available on the Intranet)

For users that have been given access to NC E-Procurement, requisitions may be submitted electronically with all required approvals.

Employees should not purchase items with their own funds expecting to be reimbursed by the College. The Purchasing Department has established special procedures for emergency/rush requests that the employee feels need special handling. Check with Purchasing personnel when the need arises.

Items made available in the Campus Store do not require a requisition form. However, the purchase must be approved by the immediate supervisor. Items will be billed to the purchaser’s departmental account. The majority of requisitions processed are to vendors registered in the NC E-Procurement System in which purchase orders are electronically submitted. In the case of purchasing items or services from a new vendor, the Purchasing Department will request for vendor to register with NC E-Procurement.

When purchasing equipment, the end user must coordinate the request with Maintenance to ensure the proper utilities are in place for the equipment. This may include gas, electricity, water, etc. Maintenance will determine if such service now exists or if it is to be installed, the lead time required, and any other procedures that need to be followed. Approval from Maintenance must be secured.

When purchasing technology items, the end user must also coordinate with the IT Department to ensure technology equipment and software interfaces with technology and are compatible. This will also assist IT in planning support and service for new technology. Approval from IT Department must be secured.

VI. Emergency RequestsThe College may make purchases of commodities, printing, or services in the open market in cases of emergencies. Emergencies are defined as situations which endanger lives, property, or the continuation of a vital program and which can be rectified only by immediate, on-the-spot purchases or rental of commodities, printing, or services.

The College may negotiate with a potential vendor(s) in an effort to acquire the quality of commodity, service, or printing needed at the best possible

price, delivery, terms, and conditions. Such instances will be handled in an appropriate manner. The Purchasing Department should be contacted to make them aware of the situation. If the exact cost of an item is impossible to ascertain in advance or time does not permit, an estimated cost is to be entered on the requisition. However, reasonable effort should be made to obtain the correct cost, before submitting the request.

VII. Pressing Need Requests“Pressing need” requests are defined as those that arise from unforeseen causes, including but not limited to delay by contractors, delay in transportation, breakdown of machinery or equipment, or unanticipated volume of work. Lack of

19

planning is not an acceptable reason for a “pressing need” request. Such requests will be handled through normal operating procedures.

"Pressing Need" requests will not be honored without a properly submitted requisition. If approvals are required, approvers should be notified

immediately to make them aware that a requisition has been created that requires their approval. The Purchasing Office should be contacted to make them aware of the situation. If the exact cost of an item is impossible to ascertain in advance or time does not permit, an estimated cost is to be entered on the requisition. However, reasonable effort should be made to obtain the correct cost, before submitting the request.

VIII. Delegations & Related Approval LevelsThe dollar amounts listed below represent the total requisition amounts including

shipping, installation, etc. and sales tax. For requisitions consisting of multiple pages, the requisition total will equal the grand total of all pages. Requisitions may NOT be split into multiple orders in order to avoid hitting a particular dollar threshold level.

$0 - $4,999.99Competition is not required, but good purchasing practice suggests that it should be solicited wherever possible. Term contract items must be purchased if available. Approval by immediate supervisor is required.

$5,000 - $9,999.99This dollar purchase requires a written Request for Quotation (RFQ) or an eQuote. This written solicitation must be generated by the Purchasing Department and must include terms and conditions required for the purchase. The initiator should complete a requisition and send at least three or more additional names of vendors so either an RFQ or eQuote may be submitted to the vendors. Once proposals are received, the Purchasing Department along with requesting department reviews and analyzes the results. Once approved, the Purchasing Department will submit the request for purchase. All transactions must be documented. If the initiator deems the purchase to be a sole source, then a memo from the vendor stating their sole source status should be obtained and forwarded to the Purchasing Department. If the vendor is deemed to be a sole source, then the Purchasing Department will issue an RFQ to the vendor for completion. There are NO exceptions due to fund source. Approval by immediate supervisor and/or Vice President of Finance/CFO is required.

$10,000 - $24,999.99 (Non State Contract, Non IT related item)These purchases must be referred to the Division of Purchase and

Contract (P&C). P&C will then post an invitation for bids (IFB) or an invitation for proposals (IFP) through the Interactive Procurement System (IPS) for a minimum of 10 days prior to the date designated for opening.

After the solicitation has been posted, the requestor shall not have any contact with any vendor or perspective vendor associated with the

20

bid request. Any vendor requests for information should be advised to e-mail the Purchasing Department.

Depending on the nature of the bids, a pre-bid site conference may be deemed necessary to make vendors aware of certain factors which may affect bidding. Once the Purchasing Department has conducted the bid opening on the designated date, the requestor will be notified to review the bids and select a vendor for award recommendation. In most cases, the vendor with the lowest bid will be awarded the bid, provided all criteria within the bid document specifications have been met. In rare cases when the vendor with the lowest bid is not awarded the contract, justification must be provided as to why that vendor was not recommended for awarding of the bid. The final decision for contract award rests with P&C.

If the initiator deems the purchase to be a sole source, then a memo from the vendor stating their sole source status must be obtained and forwarded to the Purchasing Department. There are NO exceptions due to fund source and the final decision for contract award rests with P&C. Approval by immediate supervisor and/or Vice President of Finance/CFO is required.

$25,000 + (Non State Contract, IT related item)These purchases must be referred to the Division of Purchase and

Contract (P&C) or the IT Strategic Sourcing Office. An Invitation for Bid or request for waiver of competition must be generated by the Purchasing Department. P&C are authorized by Administrative Rule to inquire into the need for, and the level of quality of the items and services requested. Approval by the immediate supervisor and/or Vice President of Finance/CFO are required.

IFB (Invitation for Bid)1. When the Division of Purchase and Contract or IT Strategic Sourcing

Office receives the purchase requirements, specifications are reviewed for completeness and accuracy.

2. After proposals are received at P&C and/or IT they are forwarded to Purchasing Department for review. The Purchasing Department will review along with requestor for recommendation of award.

3. Once Nash Community College recommends a supplier for contract award a written request goes before the State Board of Award for approval.

Request for WaiverDepending on the circumstances, a written request for waiver of competition can be submitted for approval. It is imperative that a strong case be drawn before such a request is forwarded. The Purchasing Department makes the final decision whether a request for waiver is constituted.

Lack of CompetitionThe purpose of soliciting offers is both to seek and obtain competition. Where only a single offer or a single acceptable offer is received or where reasonable

21

and available competition is not obtained, the reason shall be ascertained and made a matter of record.

Executive Order No. 50 (Price-Matching Preference):Pursuant to North Carolina General Statute § 143-59 (G.S. § 143-59) and Executive Order No. 50 issued by Governor Perdue on February 17, 2010, entitled “Enhanced Purchasing Opportunities for North Carolina Businesses,” a price-matching preference may be given to North Carolina resident bidders on contracts for the purchase of goods. This preference will allow a qualified North Carolina resident bidder to match the price of the lowest responsible nonresident bidder, if the North Carolina resident bidder’s price is within five percent (5%) or $10,000, whichever is less, of the nonresident bidder’s price. If the resident bidder requests and qualifies for the price-matching preference, the resident bidder will first be offered the contract award and will have three (3) business days to accept or decline the award based on the lowest responsible nonresident bidder’s price.

IX. Commodity CodesCommodity codes are identifying numbers assigned to items or types of

items, and are mandatory for every item ordered. They help the State to determine what commodities are being purchased and what

commodities should be on term contracts for better pricing. A list of the NC commodity codes are provided. They are listed in alpha-numeric order by class – clicking on the number expands the particular items listed under that class.

X. Changes to Requisitions & Purchase OrdersThe Purchasing Department changes vendors, vendor info and budget codes on requisitions as needed. Requestor will be notified of any changes required.

Any insignificant differences between a purchase order total and actual invoice total resulting in an overall increase in quantity and/or price are handled

by Accounts Payable. Any significant differences will be communicated to the end user. Written approval from a Director, Dean or Vice President authorizing the increase is required.

In cases of abnormally significant increases an additional, approved requisition may be required.

XI. Purchase OrdersWhen a properly submitted requisition has been received by the Purchasing

Department, the order will be processed as quickly as possible. Routine orders are usually processed within two working days. If the Department Copy of a Purchase Order has not been received by the initiator within five working days, and you have ascertained that all approvals have been appropriately entered, please contact Purchasing.

Purchase Orders are not faxed to vendors by the Purchasing Department. When an E-Procurement requisition is completed by the initiator, the

Purchasing Department processes the requisition. A purchase order is created

22

through Colleague via E-Procurement. E-Procurement will transmit (fax or email) the PO to the vendor by whichever means the vendor designated when they registered with the NC E-Procurement system.

XII. Blanket Purchase OrdersCertain anticipated, recurring expenses may be handled by the issuance of a Blanket Purchase Order. For example, a department requesting service of equipment within a specified time-frame (maximum time is one fiscal year). The Purchasing Department will determine if a request should be processed as a blanket purchase order.

G. State Term Contracts

A “term contract” is a contract intended to cover normal requirements for a commodity, printing, or contractual service for a specified period of time based on predicted usage. These contracts are established by P&C. The College is required by General Statute 115D-58.5 (b) to purchase all supplies, equipment and materials by contracts made by or with the approval of P&C. State Term Contracts can be searched by Alphabetical/Key Word or by contract number:

There are three basic types of term contracts: Mandatory “Statewide term contract” is established by P&C for agency

use. Convenience “Statewide term contract” is established by P&C for agency

use as a convenience. “Agency specific term contract” is established by P&C for use by an

agency when a commodity, printing or service is not covered by a statewide term contract, and the contract value exceeds the agency’s delegation.

Most of the statewide term contracts for commodities specify a minimum and maximum quantity (or dollars). Orders below the minimum shall be obtained in accordance with College procurement procedures. Orders that exceed the maximum quantity must be forwarded to P&C for processing. For needs that exceed the maximum, P&C will determine if the order should be placed with the contractor at the contract price, negotiate the price with the contractor, or solicit new offers for the requirement. In all cases, follow the instructions, which will vary by contract. Contact the Purchasing Department for guidance.

If a waiver, emergency purchase or pressing need arises, a term contract supplier should be given the opportunity to satisfy the requirement, if the requirement is covered by a term contract and time permits such action.

H. Purchasing Flexibility

Under G.S. 115D-58.14 Community Colleges may purchase supplies, equipment, and materials that are available under State term contracts from noncertified sources, subject to the following conditions:

23

The purchase price, including the cost of delivery, is less than the cost under the State term contract; and

The cost of the purchase shall not exceed the bid value benchmark established under G.S. 143-53.1; and

The items are the same or substantially similar in quality, service, and performance as items available under State term contracts.

Substantially similar is defined as having comparable, but not identical characteristics in terms of quality, service and performance as items available under State term contracts.

The College must keep a detailed record of all purchases made from non-certified sources. The record will contain the following:

1. A descriptive name of the item purchased;2. The purchase order number;3. The state term contract number for the item purchased;4. The cost of the item on the state term contract;5. The actual cost paid (including the cost of delivery but not the cost of taxes) for

the item purchased from the non-certified source;6. Savings per unit;7. Number of units purchased; and, 8. Total savings.

The College will submit an annual report of these purchases to the Systems Office for the calendar year January 1 through December 31. The College must maintain a copy of this report and documentation pertaining to these purchases for a period of three years for compliance review by P&C.

I. Department of Corrections

G.S. 148-134 - Statement of Preferential Procurement from Correction Enterprises and Exemption from Competitive Bidding:

“All departments, institutions, and agencies of this State shall give preference to Department of Correction products in purchasing articles, products, and commodities which these departments, institutions, and agencies require and which are manufactured or produced within the State prison system and offered for sale to them by the Department of Correction, and no article or commodity available from the Department of Correction shall be purchased by any such State department, institution, or agency from any other source unless the prison product does not meet the standard specifications and the reasonable requirements of the department, institution, or agency as determined by the Secretary of Administration, or the requisition cannot be complied with because of an insufficient supply of the articles or commodities required. The provision of Article 3 of Chapter 143 of the General Statutes respecting contracting for the purchase of all supplies, materials and equipment required by the state government or any of its departments, institutions or agencies under competitive bidding shall not apply to articles or commodities available from the Department of Correction..."

This preference requirement applies to all Community Colleges (except printing). A complete listing of all products and services available from the Department of Corrections is made available on their site:

J. Exemptions: 01 NCAC 05B .1601

24

1. It is not mandatory for the items and services listed below to be purchased through P&C.a. purchase of liquor;b. perishable articles such as fresh meats, fresh fruit, fresh vegetables, fresh fish,poultry and eggs;c. published material produced by others, such as newspapers, magazines, pamphlets, manuscripts, and books. Also maps, charts, globes, film, filmstrips and recordings (including tapes).d. services provided by individuals by direct employment contracts with the state;e. public utility services (gas, water and electricity);f. services provided which are subject to published tariff rates as established by the State Utilities Commission;g. services which are merely incidental to the purchase of supplies, materials orequipment such as installation services;h. contracts for construction of and structural changes to public buildings;i. personal services provided by a professional individual (person) on a temporary or occasional basis, including (by way of illustration, not limitation) those provided by a doctor, dentist, attorney, architect, professional engineer, scientist or performer of the fine arts and similar professions; the exemption applies only if the individual is using his/her professional skills to perform a professional task; a personal service may also be a consulting service;j. services provided directly by an agency of the state, federal or local government, or their employees when performing the service as a part of their normal governmental function.

2. In addition to products and services exempted by Statute, the SPO may exempt other products and services from purchase through P&C provided that the SPO makes findings: a. that competition will not enhance the price that the State would receive for the product or service; and,b. that competition will not enhance the quality of the product or service that the State would receive.

3. Soliciting competition for bakery products and dairy products shall be handled by the agency in accordance with standard procurement guidelines, regardless of the dollar value of the proposed contract, but awarded through P&C if over the agency's delegation.

K. Purchase of Used Equipment

If it appears that the acquisition of used equipment, materials or supplies is in the public interest, competitive procedures shall be followed wherever feasible. When a used item is available on short notice or is needed for the disabled, refer to Section 1.3, “Procurement Methods”, in the NC Procurement Manual, whereby a waiver of competition or emergency action may be justified. The solicitation document may or may not include a request for prices on like new products, but in either case acquisition may be made on the basis of whichever is considered most advantageous for the intended purpose. Confirmation should be made that the price of the used equipment is reasonable with respect to its age, and condition. The price of like new equipment should be included in the permanent file.

25

L. Contracted Services

Generally, terms of service contracts should not exceed a one-year term; however, an exception to this rule occurs where a vendor must make a significant investment in equipment to perform the service. In these cases, a contract term with an initial one-year term, with renewals up to five years may be considered.

M. Historically Underutilized Business Participation (HUB Vendors)

Per G.S. 143-48. It is a policy of this State to invite and encourage participation in the procurement process from businesses owned by minorities, women, disabledbusiness enterprises and non-profit work centers for the blind and severely disabled. HUB vendors can be searched for and identified at the following web location: http://www.doa.nc.gov/hub/searchhub.aspx

Please refer to this site when selecting vendors for purchases. The College is required to file quarterly reports with the State showing the total purchases from “HUB” vendors.

N. Solicitation of Bids, Proposals & Info

All orders totaling $5,000 or more will require the solicitation of bids or proposals from prospective vendors. The following sections should help end users with the understanding of and proper preparatory steps required to initiate and assist with the process.

I. Qualified Product ListIt is sometimes necessary to prequalify products and only solicit those that have been prequalified by compliance with the standard specifications for that commodity. In such cases, a list is maintained of specific products (QPL) which have been evaluated and determined to be acceptable in meeting predetermined minimum construction performance. This qualification is performed in advance of any particular purchase program or the term contract. By having a prequalification procedure, time and effort during the purchase cycle can be reduced. The qualification requirements must be established sufficiently in advance of the anticipated procurement to allow for evaluation and qualification of potential products. A contractor whose product or service has been determined not qualified will be advised in writing.

The official versions of QPLs can be found at: https://ncadmin.nc.gov/data-table/qualified-products-lists-qpls

II. Writing Equipment SpecificationsThe following questions will assist end users with defining specifications for the equipment they wish to purchase:

1. What are you buying? This should include: An accurate description of the item, item numbers, model numbers, quantity needed, and list

of additional components needed to complete the system. 2. Is this a sole source? Why? If yes, obtain letter stating such from the

vendor.

26

3. Are there specifications? These specifications should not be photocopies from literature but specifications that you can use.

4. If it is brand specific, why? What brand? 5. Is installation needed? If yes, must be included in bid or order. 6. Is training needed? Major training or general instruction to user? 7. Do you have any special delivery needs? Deadline for delivery? Inside

delivery? 8. What kind of warranty is provided or required? 9. Do you need a maintenance contract for this kind of item? 10. Would used, refurbished or demo equipment be acceptable? 11. What kind of service do you need for the equipment? 12. Is there a suggested vendor? Who? Provide contact information. 13. For purchases greater than $25,000 review the “Standard Paragraphs” on

the P&C Website.

III. Sole/Single SourceA sole source vendor is a company or person who sells a product or service that

meets the unique needs of the purchaser; generally, sole source means the one and only source for the product or service in the United States (minimum). If a manufacturer has dealers or distributors anywhere in the country, it is not a true sole source; having regional, state, or area dealers or distributors do not

constitute sole source.

IV. Waiver of CompetitionAs per 01 NCAC 05B .1401 under certain conditions, and if deemed to be in the

public interest, competition may be waived. The list of conditions permitting waiver may be viewed at: http://reports.oah.state.nc.us/ncac.asp (Title 01, Chapter 5).

If a waiver of competition is being requested for one of the reasons above, the justification must be noted on the requisition or an e-mail may be sent to

the Purchasing Department referencing the requisition. The Purchasing Department reserves the right to seek additional justification for any request for Waiver of Competition.

V. Quality Acceptance InspectionsThe Quality Acceptance Representatives' primary function is to perform quality

acceptance inspections. They are assigned to designated areas of the State and conduct acceptance inspections as required on a scheduled basis. Their duties include recommending release of payment to contractors following acceptance of the project or item, and re-inspection if necessary whenever a project is not in complete compliance at the time of the acceptance inspection. Inspection by a Quality Acceptance Representative shall be mandatory when the item costs $10,000.00 or more. The listing of commodities requiring quality acceptance inspections may be viewed at:

http://www.pandc.nc.gov/Documents/QAinspectionlist-2015_12Aug15.pdf

VI. Protest ProceduresTo ensure fairness to all vendors and to promote open competition, the College and the Division of Purchase & Contract shall actively follow-up and be consistent in responding to a vendor’s protest concerning contract awards.

27

When a vendor wants to protest a contract award, the agency responsible for handling the protest will vary according to the agency that awarded the contract. Chart below explains who to contact for protest:

Award Amount IT Related Non-IT Related Awarded/Protest Handled By

< $10,000 X Nash Community College

> $10,000 X Purchasing & Contract

< $25,000 X Nash Community College

> $25,000 X State IT Procurement

Nash Community College (Non-IT Related)When a vendor wants to protest a contract awarded by Nash Community College valued at less than ten thousand dollars ($10,000), the vendor shall comply with the following:

a) The vendor shall submit a written request for a protest meeting to the Executive Officer of NCC which shall be received within 30 consecutive calendar days from the date of the contract award. The vendor’s letter shall contain specific reasons and any supporting documentation for why they have a concern with the award. If the letter does not contain this information, or if the Executive Officer determines that a meeting would serve no purpose, then the Executive Officer may, within 10 consecutive calendar days from the date of receipt of the letter, respond in writing to the vendor and refuse the protest meeting request. Otherwise, within the 10-day period, the officer must notify the vendor that a meeting will be held.

b) If the protest meeting is granted, the executive officer shall attempt to schedule the meeting within 30 consecutive calendar days after receipt of the letter, or as soon as possible thereafter. Within 10 consecutive calendar days from the date of the protest meeting, the executive officer shall respond to the vendor in writing with the decision.

The executive officer may appoint a designee to act on the officer’s behalf under this rule.

Purchasing & Contract (P&C)P&C’s protest rules apply to contracts with an actual or estimated dollar value over ten thousand dollars ($10,000). When a vendor wants to protest a contract awarded by the Secretary of Administration valued at over ten thousand dollars ($10,000) the SPO and the vendor shall comply with the following:

a) The vendor shall submit to the SPO a written request for a protest meeting which shall be received by P&C within 30 consecutive calendar days from the date of the contract award. The vendor’s letter shall contain specific reasons and any supporting documentation for the reasons, describing why they have

28

a concern with the award. If the letter does not contain this information, or if the SPO determines that a meeting would serve no useful purpose, then the SPO may, within 10 consecutive calendar days from the date of receipt of the letter, respond in writing to the vendor and refuse the protest meeting request. Otherwise, the SPO must notify the protesting vendor within the 10-day period that a protest meeting will be scheduled.

b) If the protest meeting is granted, the SPO shall attempt to schedule the meeting within 30 consecutive calendar days after receipt of the letter, or as soon as possible thereafter. Within 10 consecutive calendar days from the date of the protest meeting, the SPO shall respond to the vendor in writing with the decision.

Nash Community College (IT Related)This procedure is used when a vendor wants to request a protest meeting regarding an award of an SITP contract valued under $25,000 where NCC issued the contract. The procedure provides instructions for the vendors and agencies on processing an SITP award protest when it is the vendor’s first protest submission for the contract.

a) The Executive Officer or a designee will review the request. If the request was not received within 15 days of the contract award, does not include specific reasons of concern, or if the Executive Officer determines that a meeting would not serve any useful purpose, the Executive Office or designee may refuse the protest meeting request. Whether the meeting is granted or refused, the Executive Officer or designee must respond in writing to the protesting vendor within 10 calendar days from the date of receipt.

b) If the Executive Officer or designee of NCC grants a protest meeting, the Executive Officer or designee must make all attempts to schedule a meeting with the protesting vendor within 30 days from the receipt of the meeting request letter. If unable to schedule a meeting within 30 days, the meeting must be scheduled as soon as possible after that. NCC will meet with the vendor on the scheduled day to collect information regarding the vendor’s concern with the award. Within 10 days of the protest meeting, the agency’s Executive Officer or designee must respond to the protesting vendor in writing of NCC decision. If the vendor challenges the decision or requests further action regarding the protest, the agency’s Executive Officer will advise the SITP CPO. The vendor may request a final decision from the State CIO through the Administrative Hearing procedures.

Forms State IT Procurement (SITP) This procedure will be used when a vendor wants to protest an SITP award valued over $25,000 where SITP issued the contract. This procedure provides instructions for the vendors, agencies, and SITP on processing an SITP award protest. It is used when SITP issued the contract and it’s the vendor’s first submission for the contract.

a) The SITP Chief Procurement Officer (CPO) will review the request. If the request was not received within15 days of contract award, does not include specific reasons of concern, or if the CPO determines that a meeting would

29

not serve any useful purpose, the CPO may refuse the protest meeting request.

b) If the meeting is refused, the CPO must respond in writing to the protesting vendor within 10 calendar days from the date of receipt of the protest. The CPO must also send a copy of the refusal letter to the SITP hearing officer. If the CPO grants a protest meeting, the CPO must make all attempts to schedule a meeting with the protesting vendor within 30 days from the receipt of the meeting request letter. If unable to schedule a meeting within 30 days, it must be scheduled as soon as possible after that. CPO will meet with the vendor on the scheduled day to collect information regarding the vendor’s concern with the SITP award. Within10 days of the protest meeting, the CPO must respond to the protesting vendor in writing of SITP’ decision. A copy of the decision letter is also sent to the SITP hearing officer. If the vendor is not satisfied with SITP’ decision, the vendor may elevate the protest to an administrative hearing level within 60 days.

O. Utilities

Routine, recurring expenses such as electricity, water and garbage collection/disposal may be processed through Accounts Payable without a Purchase Order. Service agreements must be approved in advance by the Vice President of Finance/CFO.

P. Demonstration by Vendors

Under certain circumstances the College may elect to request a vendor to demonstrate a product or service (without charge.) The demonstration shall in no way obligate the College in any way and the vendor shall promptly remove all demonstrated products at no cost to the College.

Purchase requests after a demonstration will be processed and handled in the same manner as any other requisition for purchase. The College will follow all purchasing policies and procedures as outlined.

Q. Returning Products to Supplier

The Purchasing Department must be notified prior to returning or exchanging any merchandise to a supplier within 48 hours of receiving the merchandise. Permission to return must be granted by the supplier. Information required to obtain return authorization includes, but is not limited to:

1. Purchase order number2. Item number on the purchase order3. Description of item to be returned4. Quantity to be returned5. Reason for return6. Replacement or refund requested.

Upon approval of return, the Purchasing Department will notify Shipping/Receiving for pick-up of items.

30

R. Complaints to Vendors

In order to avoid end-user disputes after receipt of goods or services, the Purchasing Department will work closely with the end-user to be sure that product descriptions, specifications, etc. will meet the needs of the end-user. The Purchasing Department will have the end-user review quotes or bids received to provide input prior to the actual award of the contract.

As per the North Carolina Procurement Manual, section 8.3, any arising issues with a vendor should first be attempted to be resolved directly with the vendor. Written communication or confirmation of verbal contact is highly recommended. If the problem is not resolved satisfactorily within a reasonable time period, or it becomes a recurring problem, then this problem should be formalized on a Vendor Complaint form and sent to the vendor and P&C. Please contact the Purchasing Officer if you are unable to resolve any vendor issues directly.

31