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
View Full Guidelines