Overview of State Purchasing

The following information is a brief overview of purchasing for the State of Michigan. Links, where available, are provided for those agencies with authority for the procurements identified:

• Goods and Services: Purchasing Operations in the Department of Management and Budget procures goods and services needed by the Executive Branch of State Government, except for the following:

• Building Construction, Remodeling, and Additions: Facilities Administration, Department of Management and Budget, (517) 373-6300

• Leasing and Purchasing Property needed by the State: Tenant & Land Services, Department of Management and Budget, (517) 335-6877

• Highway and Airport Construction and Repair: Department of Transportation

• The Legislative and Judicial branches of State Government purchase directly all the goods and services they need.

• Some State of Michigan departments have statutory authority to purchase specific types of commodities. In addition, State departments and agencies have been given delegated purchasing authority for purchases of supplies, materials, equipment and services up to $25,000. Contact the agency procurement staff for additional information on purchases made directly under this authority.

• State-supported colleges, universities, and community colleges, and local units of government and school districts, which are autonomous entities under the 1963 State Constitution. However, the Department of Management and Budget Act requires the state to extend purchasing services to these entities upon request.

• Direct human services and medical services can be purchased direct by various State Departments.

Purchasing Operations' primary objective is to procure the goods and services state agencies and departments need to perform their missions through the use of sound, prudent, and consistent purchasing practices. Political and arbitrary considerations do not affect awards. Purchasing Operations makes decisions in the state's best interests.

All vendors, whether individuals, small businesses, or large corporations, are invited to compete for the state's business. State law precludes awards to public supported institutions such as colleges and universities when there is private sector competition.

In order to best serve the interests of state government and the business community, Purchasing Operations utilizes, to the maximum extent possible, contracts of multiple year duration where it makes economic sense to do so. Therefore, products or services which lend themselves to contracts will be solicited far more infrequently than with usage that does not warrant a contract.