Policies & Procedures Manual - Elizabeth City State University

400.1.9Adopted: 06/14/05ELIZABETH CITY STATE UNIVERSITYState Term ContractsState Term ContractsIn an effort to use its large scale purchasing power to reduce statewide purchasing costs forcommon items, the state has vendors compete for state (term) contracts. To obtain the best pricesfor all state agencies, the contracted vendor is guaranteed all state purchases for specified itemsfor a period of one to two years. Because these contracts are for a given period they are referredto as term contracts.ECSU is obligated to PurchaseThe first thing ECSU must do is to determine if the item or contractual service is avail able fromone of the statewide term contracts established by the NC Division of Purchase and Contract. Ifso, then the order must be placed with the appropriate contractor listed. If more than onecontractor is listed, then the one that will best satisfy your needs or the one that is identified as aHUB (Historically Underutilized Business) vendor should get the order.After determining that the item or contractual service is not covered by a statewide term contract,the next step will be to determine if the item or contractual service is available from a termcontract established by ECSU. If so, then the order is to be placed with the appropriate contractorin accordance with the terms of that contract.Because we are a state agency, when we purchase equipment, supplies, or services with publicfunds, we must purchase these items from the appropriate State Contract vendors. In situationswhere an item on state Contract has unnecessary features or does not have the particular featuresneeded, we may be able to purchase outside the state contract. In these circumstances, however,conclusive documentation in the form of a “justification memorandum” must be provided forconsideration by the Purchasing Division and/or the State Purchase and Contract Division.A term contract is not an “Approved List” . It is a legally binding agreement between the Stateand the awarded vendor to buy and sell certain items at certain prices for a specific, period oftime. It is not a list of “ceiling” or “approved” prices. At no time is it legal for agencies, school,etc.,. to purchase contract items from other sources at the same or lower prices.Provisions do exist for the purchase of equipment that cannot be met by term contracts and forunusual quantities of term contract items when it has been determined by the NC Division ofPurchase and Contract that this type of acquisition is in the best interest of the State.