Material & Disbursement Services (MSD)
POLICY 8
Effective Date: 03/01/1998
Last Modified Date: 11/13/2003
Definition
In an effort to use its large-scale purchasing power to reduce statewide purchasing costs for common items, the State has vendors compete for State (term) contracts. To obtain the best prices for all State agencies, the contracted vendor normally is promised all State purchases for specified items for a period of one to two years. Because these contracts are for a given period, they are referred to as term contracts.
Obligation to Purchase through Contract Vendors
The University, as a State agency, is required to refer to the appropriate State contract vendors when we purchase equipment or supplies with public funds. When an item on State contract has unnecessary features, does not have the particular features needed, or costs more than the price available through full and open competition, the University will purchase outside the State contract. In these circumstances, however, conclusive documentation in the form of competitive bids must be provided by Purchasing Services for consideration by the State Purchase and Contract Division.
List of Current Contracts
A list of all current state term contracts can be viewed online at the North Carolina Purchase and Contract Web site.
House Bill 975 Flexibility
State term contracts are available for the user's convenience (but are not required to be used) if either of the following two conditions apply:
- less than 30% of the money used for the purchase is from appropriated funds, from the State General Fund, or received as tuition; OR
- more than 50% of the money used for the purchase is from contract and/or grant funds.
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