Procurement Cards

State agencies have been issued procurement cards which may be used for state purchases that are not on contract. This program has proven to reduce the administrative expense associated with low dollar procurements via the purchase order process. Vendors receive timely payments and are also relieved of the administrative expense of invoice the State. State cardholders are utilizing more local vendors within their community. Use of the procurement card is not allowed for health and medical services, services from vendors for which the State must provide 1099 reporting, cash advances, personal use, or travel related expenses.

Delegated Purchasing Authority

State departments and agencies have been given delegated purchasing authority for purchases of supplies, materials, equipment and services up to $25,000.

Bid Solicitations

Purchasing Operations uses a bidding document called an Invitation to Bid (ITB) for all of its solicitations. This document, along with any attachments, contains specifications and all of the information used in the bid evaluation. See Types of Solicitations for more information on RFPs.

Vendor Requests for Bids

Purchasing Operations encourages the maximum amount of competition in order to secure the best value for the state. An internet website can be used to view or download currently available bids.

Bid Deadline

Purchasing Operations must receive a bid by the bid deadline published for that particular ITB or the bid will be disqualified. All bids must be received and time-stamped by 3:00 p.m. of the due date.  It is the sole responsibility of the vendor to ensure timely submission of bids. Vendors should take into account the possibility of unforeseen delays.

Telephone/Facsimile/Email Bids

Purchasing Operations may request bids by telephone, facsimile or fax because of rapidly fluctuating market prices, emergency conditions, or to expedite the bid process. Generally, these bids must be followed up by submission of original, signed and dated documentation. This process is acceptable solely at the explicit direction of the buyer.

Bid Evaluation

Each ITB includes criteria for award. The bid evaluation will be based on this criteria.  If the value of the solicitation is $100,000 or greater, the Michigan Reciprocal Preference statute may become part of the cost evaluation. See State Laws Affecting Procurements for more information on this statute.

Awards

The state reserves the right to award by item, group of items, county, region, group of regions, or total bid. The state further reserves the right to reject any and all bids if it is determined by the State Purchasing Director that the best interests of the state will be served by doing so. In determining an award, the criteria established in the ITB will be the basis. Awards will not be made to a vendor that has been debarred.

An award may require other administrative approvals beyond Purchasing Operations such as:

• The Michigan Department of Civil Rights must affirm that the prospective vendor has not been found to discriminate in employment for all awards over a designated dollar amount.  Failure to cooperate with the Department of Civil Rights or to provide information it requests in a timely fashion may disqualify a bidder.

• The State Administrative Board must approve all awards and contract changes over designated dollar amounts. After favorable action by the Board, Acquisition Services may issue a purchase order or contract to the successful bidder.

Sole Source Awards

Purchasing Operations is committed to competitively bid all State contracts, in accordance with Governor Granholm’s Executive Directive 2005-3.  Today, 100% of the solicitations handled by Purchasing Operations are competitively bid, giving Michigan businesses of all sizes a fair and open opportunity to win State business.

There are rare cases when sole source contracts are in the best value of the State of Michigan.  These deal with the health and safety of Michigan’s residents, and include:

1. Procurement of goods or services is necessary for the imminent protection of public health or safety or to mitigate an imminent threat to public health or safety, as determined by the Director of the Department of Management and Budget or his or her designated representative.

2. Procurement of goods or services is for emergency repair or construction caused by unforeseen circumstances when the repair or construction is necessary to protect life or property.

3. Procurement of goods or services is in response to a declared state of emergency or state of disaster under the Emergency Management Act, 1976 PA 390, MCL 30.401 to 30.421.

4. Procurement of goods or services is in response to a declared state of emergency under 1945 PA 302, MCL 10.31 to 10.33, or a declared state of energy emergency under 1982 PA 191, MCL 10.81 to 10.89.