Contract and Purchase Approval Guidelines

Contract and Purchase Approval Guidelines — Quick Introduction

Minnesota State’s contract and purchase approval process ensures fiscal accountability, compliance with Board Policy 5.14, and transparency in all procure-to-pay activities. These guidelines outline when contracts and purchases require additional validation or approval based on total contract value, duration, and type of transaction.

Overview

• Contract and purchase thresholds are based on Total Contract Value (TCV), including amendments and extensions.
• JAGGAER is used for contracts and sourcing, while Workday supports requisitions, purchase orders, and payments.
• Validation and approval requirements apply at specific thresholds: $100K, $1M, $3M, and for terms longer than five years.

Approval Thresholds

• Contracts ≥ $100K: Verify all documentation including Workforce/Equal Pay certificates, insurance, and appropriate approvals in JAGGAER.
• Contracts ≥ $1M: Must be recorded on the BOT tracking spreadsheet and reviewed by system finance leadership.
• Contracts ≥ $3M: Require formal Board of Trustees approval before execution.
• Contracts > 5 years: Must clearly document sourcing rationale and allowable term in the solicitation or justification file.
• Purchases ≥ $3M: Require BOT approval prior to issuance of a purchase order in Workday.

Other Key Review Areas

• Requisitions ≥ $100K: Must include contract reference, MDHR verification, and campus CFO approval prior to routing to the Vice Chancellor for Finance and Facilities.
• Purchase Order Change Orders ≥ $100K: Require justification in comments, approval validation, and cost impact documentation.
• Single Source: Must comply with the approved Single Source Supplier Process.

Resources and References

• Contract Resources
• Contract Processing Guidelines by Dollar Threshold
• Checklist for Contract Creation
• Electronic Signature Management (ESM) Community