Current through Register Vol. 48, No. 38, September 20, 2024
a) Introduction. It
is the policy of SURS to obtain goods and services in the most economical
manner in order to guarantee the efficient utilization of SURS resources.
Resources of SURS shall be committed only with proper approval, as detailed in
this Section.
b) Purchase Orders.
Employees requesting goods or services that cost more than $500 and that are
not part of a formal written contract shall complete a SURS purchase order form
and receive written approval from the person designated by the Executive
Director as the Procurement Officer prior to placing the order. Purchases of
less than $500 do not require a purchase order, but must be within the
authority of the employee to purchase.
c) Contract Policy. It is the policy of SURS
to standardize the form and content of its contracts with public and private
bodies in order to ensure compliance with applicable State law, to ensure
fairness to all parties, and to maximize uniformity of language.
1) Standard Addendum. In order to simplify
the contracting process, SURS has developed a standard contract addendum that
includes certifications considered advisable or required by State law. The
standard addendum shall be completed and attached to (or incorporated within)
all contracts and purchase orders entered into by SURS, but shall not be
required for purchase orders of $25,000 or less. Any variation from the terms
of the standard addendum shall be approved by SURS' General Counsel. The
standard addendum may be revised by the General Counsel from time to
time.
2) Written Contracts
A) Execution Requirements. All expenditures
in excess of $25,000 that are not otherwise covered by any exemption stated in
this Section shall require a written contract reviewed and approved by legal
counsel to SURS. Contracts in any amount shall be executed by the Executive
Director or his or her designee, unless executed by the President of the Board.
No goods or services may be acquired, nor work commenced (unless the vendor
specifically assumes the risk of non-payment in the event no contract is
entered into), prior to the execution of a contract as provided in this
Section. A copy of each contract shall be retained by the Chief Financial
Officer.
B) Signature Requirements
i) Except as provided in subsection
(c)(2)(B)(ii), contracts in excess of $250,000 require the signatures of the
Executive Director, the Chief Financial Officer and the General
Counsel.
ii) In addition to the
requirements of subsection (c)(2)(B)(i), all contracts with persons who are
fiduciaries with respect to any investments of SURS shall also be signed by the
President of the Board, or his or her designee, except that the Executive
Director's signature is sufficient with respect to investment management
agreements or other contracts with Board-approved investment service providers
and contract amendments with existing Board-approved investment service
providers. The Executive Director shall provide a report of such execution,
with a description of any contract or amendment executed, to the Investment
Committee of the Board at the next regularly scheduled meeting.
d)
Documentation and Bidding - Expenditures in Excess of $50,000
1) Employees shall seek to obtain the best
value for SURS. Efforts to obtain the best value for SURS shall be documented
where possible and retained by SURS. Expenditures in excess of$50,000 require
bids from at least three different sources, unless otherwise provided in this
Section. Sole source procurements, or other procurements with fewer than three
bids, for expenditures in excess of $50,000 shall be justified and documented.
If two or more identical bids are received, if an attempt to bribe an employee
is made, or other irregularities are discovered by a SURS employee, the General
Counsel and the Internal Auditor shall be notified.
2) All procurements in excess of $50,000,
unless otherwise provided in this Section, shall be advertised in the official
State newspaper, in the Illinois Procurement Bulletin, in SURS procurement
bulletins, in appropriate media, or through electronic means such as the
Internet. Notice shall be published on at least 3 separate dates with a minimum
of 14 days between the first and the last publication date.
3) All procurements for goods and services in
excess of $50,000, unless otherwise provided in this Section, shall be awarded
by competitive proposals. Each request for proposal shall set forth a
description of the items or services being procured, the material contractual
terms and conditions, and the criteria for evaluating proposals. Awards made
pursuant to competitive selection procedures shall be awarded to the
responsible offeror whose proposal is determined to be most advantageous to
SURS. SURS may directly negotiate with any offeror as to the terms of a
proposal. Competitive proposals may be used to procure, but are not limited to,
professional and artistic services, including legal, medical and related
services, investment management and consulting, electronic data processing
equipment, software and services, and telecommunications equipment, software
and services.
4) The following
procurements do not require advertising or the use of competitive proposals:
A) Individual contracts for goods, services
or construction not exceeding $50,000;
B) Emergency procurements, such as when there
exists a threat to public health or safety, or when immediate expenditure is
necessary in order to protect against loss of or damage to SURS property or
interests, or to prevent or minimize disruption in SURS services, or when
necessary to prepare for anticipated litigation, enforcement actions, or
investigations, or to protect the integrity or confidentiality of SURS records.
A written determination must be made that an emergency exists; and
C) Utilities and other sole-source
items.
e)
Purchasing
1) Employees are allowed to make
purchases provided that the goods or services are budgeted for, and a purchase
order (for purchases in excess of $500) is completed and has written approval
in advance of placing the order, or a formal contract (for purchases in excess
of $25,000) is executed, and the provisions of this Section are complied with.
Employees other than those designated by the Executive Director are not allowed
to make purchases of office supplies, computer equipment, or
software.
2) SURS shall not pay
Illinois sales tax. Employees must direct the vendor to exclude Illinois sales
tax from invoices. Employees should also ask if discounted State rates are
available for purchases.
3)
Invoices should be approved for payment within 30 days after the receipt of the
invoice. Approval should not be given for goods and services that do not
conform to SURS' requirements. The vendor shall be promptly notified in writing
if SURS does not approve an invoice for payment and shall be advised of the
reason for the denial. If approval is made after 30 days, a full explanation
should be attached to the invoice.
4) Advance payment for goods and services is
discouraged. If advance payment is required, the employee shall complete a
certification as specified in Section 9.05 of the State Finance Act
[30
ILCS 105/9.05] . In the event that a voucher is
submitted for advance payment, the voucher shall state on its face that the
goods or services are being procured pursuant to a formal written contract the
terms of which require advance payment. If it is not possible to execute a
written contract, the voucher shall so state. The certification is not required
for payment of conference fees, purchase of travel tickets, purchase of
periodicals, and required deposits of less than $500. The certification shall
be in the following format:
"I certify that the goods or services specified on this
contract or purchase order were for the use of this agency and that the
expenditure for those goods or services was authorized and lawfully incurred;
that the goods or services meet all the required standards set forth in the
purchase order or contract to which this certification relates; and that the
amount shown on this voucher is correct and is approved for payment."
Insert following sentence in certification if
applicable:
"It is not possible to execute a formal written
contract."
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