NOTICE TO READER:
Segments of this document in bold, italic print represent policy which can be changed only by authorization of the VMI Board of Visitors. All other segments represent procedures which may be changed by authorization of the Superintendent.
TABLE OF CONTENTS
90100 State Procurement Policies
90200 Procurement Categories and Procedures
90100 State Procurement Policies [Return to top]
The CAPP Manual dictates that all expenditures of state funds be considered essential to the operation of the Institution. Under the general rule set forth in Section 2.2-1822 of the Code of Virginia, the Department of Accounts (DOA) may question any State-funded expenditure. All State-funded expenditures (including grants and contracts) are subject to public scrutiny, and anyone authorizing a purchase should not only determine that the benefit to the Institution justifies the use of State funds, but should consider the appearance of unusual purchases on the agency and on State government in general. Since individual circumstances vary widely, adequate documentation for unusual purchases should always be included with the voucher. (ref. CAPP Manual, Section 20310).
For additional information: http://www.doa.virginia.gov/Admin_Services/CAPP/CAPP_Summary.cfm
The following list contains examples of expenditures determined to be improper use of State funds. This list is to provide general guidance to the VMI community in judging the appropriate use of State funds and should not in any way be deemed all inclusive.
Improper expenditures examples:
• Gifts or flowers
• Charitable contributions
• Alcoholic beverages
• Snacks for employees
• Departmental coffee service, machines or supplies
• Employee or retirement parties and group luncheons for employees
• Holiday cards or decorations
• Subscriptions, except for bona fide business purposes, and not to exceed one year
• Non-business related newspapers or magazines and books for classes
• Picture framing or framing of award certificates (unless property of VMI)
• Childcare services
• Replacement of stolen or lost employee personal articles
• Personal items for employees
• Employee clothing (non-uniform) or clothing repair
• Tuxedos or formal wear
• Cash advances
Procurement Officers are required to review available statewide contracts which have been competitively procured (including VASCUPP, DP&S Contracts, VDOT, VITA, BCOM, et al) in advance of any purchase and/or solicitation to determine if such contracts meet the business goals, objectives and mission of the Institute. This requirement shall apply to all Institute contracts, including contracts intended for cooperative use (i.e., E&I, GSA). The solicitation and/or award of a contract or purchase order by an authorized Procurement Officer shall constitute documentation of compliance with this requirement. No purchase or solicitation will be initiated without first complying with this requirement. No further documentation in the contract file is required.
Procurement at Virginia Military Institute is governed by the Commonwealth of Virginia Purchasing Manual for Institutions of Higher Educations and their Vendors (HEM). The HEM can be accessed at https://vascupp.org/hem.pdf
90110 Electronic Virginia (eVA) [Return to top]
Electronic Procurement in Virginia, also referred to as eVA, encompasses vendor central registration and source selection, requisitioning, soliciting and receiving formal and informal bids and proposals including tabulation and evaluation, electronic ordering, public posting, electronic invoicing, data record keeping and reporting capabilities. eVA facilitates item searches in which departments within the Institute can shop mandatory sources as well as optional use term contracts, surplus property and non-contract sources. All Institute purchase transactions, regardless of funding source, shall be processed through eVA to eVA registered vendors with the following exceptions:
- A written exception is secured from the Director of Purchasing;
- Point of sale purchases using the Small Purchase Charge Card;
- Exclusions noted below and published in the APSPM (Agency Procurement and Surplus Property Manual):
- Real estate leases
- Advertisements such as in newspapers, magazines, journals, radio, television, etc.
- Professional organizational membership dues and training classes sponsored by the professional organization when payment is made directly to the professional organization sponsoring the training class
- Conference registrations
- Petty cash purchases
- Entertainment (speakers, lecturers, musicians, performing artists)
- Accreditation fees and academic testing services
- Exhibition rental fees for exhibitions of historical artifacts or original works of art. (The rental fee may include charges other than the rental of the exhibition, such as transportation costs)
- Goods or personal services for direct use by the recipients of programs specified in the Code of Virginia, § 2.2-4345, if the procurement is made for an individual recipient. Contracts and/or spot purchases for the bulk procurement of goods or services for the use of recipients shall not be exempted
- Award of grants by agencies and institutions to public bodies or tax exempt non-profit charitable organizations. This exception does not apply to the expenditure of grant funds by agencies and institutions for the purchase of goods and/or services (see APSPM 13.8e)
- Medical (health care) services when the service is provided by a hospital or an individual licensed and authorized by law to engage in the prevention, diagnosis, or treatment of human illness, injury, or physical disability, mental health, mental retardation, substance abuse, or emotional condition. Contracts and purchase orders between the agency or institution and temporary service providers or independent laboratory testing companies are not exempt from purchasing through eVA
- Public utilities (electric, natural gas, water, sewer)
- Purchases made via closed-loop systems or automated inventory control systems for items for resale, e.g., ABC, drugs (only POS drugs)
- Purchases made using the DPS-authorized multi-state drug contract
- Purchases made using DPS Contract #91026, Express Delivery Services
- Point of Sale charge charge card purchases that are made at the site of the sale and picked up by the individual card holder (i.e., SPCC, Voyager)
- Revenue contracts, e.g., scrap, recycling or contracts with $0 payment made by the Commonwealth, e.g., contracted out bookstore, food service operations
- Government-to-government purchases, other than purchases from mandatory sources
- Purchases from public auctions (non-electronic)
- Surplus property
- Contracts with commercial fisherman for replenishment, research and stock assessment activities
- Travel and lodging
- Financing when goods/services procured from one source are being financed by another (i.e., third party) source. The financing exclusion does not apply to lease purchases
- Business and/or financial transactions to which public procurement regulations do not apply. Examples include debt service payments, Medicare and Medicaid payments, and child support payments
- Contracts with public and private hospitals, as well as pharmacy chains and independent pharmacies, that are licensed and authorized by law to dispense controlled drugs and other medications based on prescriptions written by medical practitioners licensed to engage in the prevention, diagnosis, or treatment of human illness, injury, or physical disability, mental health, mental retardation, substance abuse, or emotional condition, when the purpose of the contract is to provide on-site mentoring and practical experience to pharmacy students enrolled in state institutions of higher education
- Contracts with public and private hospitals, medical practices, and medical clinics that are licensed and authorized by law to engage in the prevention, diagnosis, or treatment of human illness, injury, or physical disability, mental health, mental retardation, substance abuse, or emotional condition, when the purpose of the contract is to provide on-site mentoring and practical experience to medical students enrolled in state institutions of higher education
- Individuals providing instructional services in conjunction with a contract between an institution of higher education, including community colleges, and a local business or industry for non-credit workforce development classes to be provided by the institution of higher education
90120 Small, Woman and Minority Owned Business (SWaM) [Return to top]
In accordance with Executive Order 33, dated August 10, 2006 "It shall be the goal of the Commonwealth that 40% of its purchases be made from small business" VMI must submit a SWaM Plan to the Department of Minority Business Enterprise (DMBE) and the Secretary of Education annually. The plan must specify the Institute's SWaM goals for procurement and must include the annual designation of a SWaM champion to ensure nondiscrimination in the solicitation and award of contracts.
In support of VMI’s SwaM goals and commitment to utilize SWaM businesses, all Small Purchase Credit Cardholders (SPCC) and staff with delegated procurement duties are to use small, women and minority-owned businesses for all purchases when such businesses are available. Purchasing Office staff will assist in locating DMBE certified SWaM suppliers or granting permission to purchase from majority (large) businesses when required.
90130 Mandatory Sources [Return to top]
The policy of the Commonwealth of Virginia dictates that certain commodities be purchased from mandatory sources. These mandatory sources are as follows:
- Virginia Correctional Enterprises (VCE) – All furniture items such as chairs, tables, desks, filing cabinets, etc.
- Virginia Industries for The Blind (VIB) – All writing instruments such as pens, pencils, highlighters, etc.
90140 State Contracts [Return to top]
Term contracts are established by the Department of General Services/Division of Purchases and Supply (DGS/DPS) to obtain more favorable pricing through volume purchasing and to reduce procurement lead-time and administrative effort. Use of these contracts is optional but is encouraged because it can reduce the amount of time needed to purchase an item by eliminating the bid process.
A complete listing may be found at:
90150 VASCUPP Contracts (Virginia Association of Schools, Colleges and Universities Procurement Professionals) [Return to top]
College of William and Mary - George Mason University -James Madison University
Old Dominion University- Radford University - Virginia Commonwealth University
Virginia Military Institute - Virginia Tech - University of Virginia
VASCUPP is a procurement group that was formed to provide opportunities for Virginia’s public colleges, universities and other institutions of higher education to effectively communicate among constituents and peers, allow for cooperative procurement, professional development, and enhancement of supplier diversity initiatives. Membership in VASCUPP was limited to those colleges that had been granted unlimited delegated purchasing authority by the state purchasing office.
Cooperative procurement contracts are available at:
90210 Small Purchase Charge Card (SPCC) [Return to top]
The SPCC is issued for cardholder use for transactions up to $2,000* with a cardholder’s monthly transaction limit up to $100,000 for the purchase of small dollar goods and services in accordance with the Institute’s policies and procedures, Agency Procurement and Surplus Property Manual and the Virginia Public Procurement Act.
Using the SPCC reduces paperwork and payments to vendors are expedited.
The SPCC should be used to purchase items costing less than $2,000.
The SPCC is the preferred method of payment for purchasing items in eVA. All SPCC purchases of goods and services, except those specifically exempted, should be purchased through eVA. Point of sale purchases, (i.e., those made at the site of sale and picked up by the individual card holder) are exempt from eVA.
Additional information regarding the Small Purchase Card Program can be obtained at:
*Does not apply to Contracting Officers or Exempted Cardholders
90220 DATATEL Purchase Orders [Return to top]
Procurements that exceed $2,000 are encumbered in the Datatel Colleague system through the entry of purchase orders and are in addition to eVA purchase orders.All purchases exceeding $2,000 must be submitted to the Purchasing Office on a requisition form for processing unless exempted in advance by the Director of Purchasing or designee.
All computers must be submitted by requisition to the Purchasing Office for processing.
90230 Sole Source Procurement [Return to top]
Sole source procurement is authorized when there is only one source practicably available for the goods or services required. Competition is not available in a sole source situation; thus distinguishing it from a proprietary purchase where the product required is restricted to the manufacturer(s) stipulated, but is sold through distributors and competition between them can be obtained. Sole source justification based solely on a single vendor’s capability to deliver in the least amount of time is not appropriate since availability alone is not a valid basis for determining sole source procurement.
All sole source procurements for non-technology goods and services over $5,000 must be approved in advance by the Superintendent or designee. The written determination, documenting that there is only one source practicably available for that which is to be procured, must be included in the procurement file. In addition, a memorandum must be attached to the request which addresses these four points:
Explain why this is the only product or service that can meet the needs of the purchasing agency.
- Explain why this vendor is the only practicably available source from which to obtain this product or service.
- Explain why the price is considered reasonable.
- Describe the efforts that were made to conduct a noncompetitive negotiation to get the best possible price for the taxpayers.
The justification shall document the basis for the determination, which should include any market analysis conducted in order to ensure that the good or service required was practicably available from only one source.
90240 Emergency Procurement [Return to top]
An emergency is an occurrence of a serious and urgent nature that demands immediate action. Emergency procedures may be used to purchase only that which is necessary to cover the requirements of the emergency. Subsequent requirements shall be obtained using normal purchasing procedures. The potential loss of funds at the end of a fiscal year is not considered an emergency.
a. For an emergency purchase required to protect personal safety or property, efforts should be directed to finding a source and directing the contractor to proceed; however, such procurement shall be made with such competition as is practicable under the circumstances (Code of Virginia, § 2.2-4303F). This does not relieve VMI from negotiating a fair and reasonable price and subsequently documenting the procurement action.
b. For other types of emergencies, competition should also be sought to the maximum extent practicable. Vendor's qualifications may be checked and verification of insurance coverage, if applicable, information on warranty offered, and any other data pertinent to the procurement.
- Written Determination. Prepare a written determination for signature by the Superintendent or designee indicating the nature of the emergency, the reason for selection of the particular contractor and include such determination with the file.
- Posting Requirements. Issue, post and/or publish required written notice. Emergency notices shall be posted on the eVA web site. For emergency procurements over $50,000, notices must be posted on eVA and at a minimum state that the procurement has been declared an emergency and must also state that which is being procured, the contractor selected, and the date on which the contract was or will be awarded.