1. Application of Policy

• This policy applies to all situations where there will be a contractual relationship or terms established in writing with a third-party except capital construction and facility maintenance and repair, and where the purchase of fixed facility equipment acquisitions will involve a contract.
• Purchases of insurance are not subject to these bidding and contract requirements.

2. Contract Thresholds
Thresholds are determined based on the total contract amount for the initial term of the contract, not to include renewal periods. All contracts shall conform to the following thresholds for bidding and contract signature approvals.

2.1. All Contracts Except for Consulting Agreements and Revenue Sharing Contracts

• • Contracts less than $25,000
    • Signed by the Executive Director
    • No bid is required when the contract will be less than twenty-five thousand dollars ($25,000). If it is determined by NSWERS that solicitation of bids for contracts costing less than twenty-five thousand dollars ($25,000) would result in a lower cost or better service, informal bids may be secured by telephone or in writing.
    • No contract is required for repair or maintenance services less than twenty-five thousand dollars ($25,000) to moveable equipment, vehicles, and furnishings.
  • From $25,000 but less than $150,000
    • Signed by the Executive Director
    • The contract is awarded using a formal bid process. If it is not possible to get three (3) bids, the process and reasons should be documented.
  • $150,000 but less thanks $300,000
    • Contract is awarded based on a competitive sealed bid process.
    • Signed by the Executive Director
  • $300,000 and above
    • Contract is awarded based on a competitive sealed bid process
    • Requires Executive Council approval or Executive Council authorization for the Executive Director to approve.
    • Signed by the Executive Director

2.2. Consulting Contracts

• • Contracts less than $75,000
    • Signed by the Executive Director
    • No bid required when the contract will be less than seventy-five thousand dollars ($75,000). If it is determined by NSWERS that solicitation of bids for contracts costing less than seventy-five thousand dollars ($75,000) would result in a lower cost or better service, informal bids may be secured by telephone or in writing.
  • From $75,000 but less than $150,000
    • Signed by the Executive Director
    • The contract is awarded using a competitive sealed bid process. A minimum of three (3) bids is necessary. If it is not possible to get three (3) bids, the process and reasons should be documented.
  • $150,000 or more
    • Requires Executive Council approval or Executive Council authorization for the Executive Director to approve.
    • Signed by the Executive Director
    • Contract is awarded based on a competitive sealed bid process.

2.3. Revenue Sharing Contracts

• • Should utilize a sealed bid RFP process
  • Must have Executive Council approval
  • Signed by the Executive Director

3. General Bid Requirements

3.1. Minimum Number of Bidders
If services are to be purchased by competitive sealed bidding, NSWERS shall prepare standards and specifications for the RFP in such a manner it will be possible for three (3) or more vendors to submit competitive bids. If bids cannot be obtained from three (3) bidders, bids may be accepted from a fewer number of bidders than three (3), upon documentation of the bidding process, including the companies contacted.

3.2. Bid Timelines
The RFP shall state the manner, day and time upon which bids shall be returned, received and opened.

3.3. Bid Preference
When a public bid is to be awarded to the lowest bidder, a Nebraska residential bidder shall be allowed a preference over a nonresident bidder from a state, which gives or requires a preference to bidders from that state. The preference shall be equal to the preference given or required by the state of the nonresident bidder. This provision shall not apply to any contract for any project upon which federal funds would be withheld because of such provisions.

3.4. Nondisclosure
No person who is in charge of any bids prior to the time fixed for opening, shall open them prior to the time or otherwise disclose to any bidder the contents, amount or other details of any rival bid.

3.5. Lowest Bidder
All purchases of services shall be made from the lowest bidder, taking into consideration the best interest NSWERS, the quality of the materials proposed to be supplied, conformity with specifications, the purposes for which required, and the times of delivery. In determining the lowest bidder, in addition to price, NSWERS may develop criteria specific to a purchase or may give the following elements consideration when appropriate:

• • The ability, capacity and skill of the bidder to meet the specifications;
  • The character, integrity, reputation, judgment, experience and efficiency of the bidder;
  • Whether the bidder can meet the delivery expectations;
  • The performance on past awarded bids;
  • The previous and existing compliance by the bidder with laws relating to the contract;
  • The life-cycle costs of the personal property in relation to the purchase price and specific use of the item;
  • The performance of the materials, taking into consideration any commonly accepted tests and standards of product usability and user requirements; and
  • Such other information as may be secured having a bearing on the decision to award the bid.

3.6. Bid Rejection
Any or all bids may be rejected, including the bid of any bidder who has failed to perform a previous contract with NSWERS or the State of Nebraska. In any case, where competitive bids are required and all bids rejected, and the proposed purchase is not abandoned, new bids shall be called for as in the first instance.

4. Compliance Requirements

4.1. Contract Execution
No work should be performed under the contract until it has been signed by all parties. No contract, lease, or purchase agreement that requires approval by the Executive Council or Executive Director shall be signed or finalized in any form until authorized by the Executive Council or Executive Director.

4.2. Contract Cancellation
Contracts can only be cancelled by individuals who are authorized to sign contracts on behalf of NSWERS.

4.3. Non-Appropriation Clause
No contract may commit funds for a future fiscal year, unless specific funding has been identified in a Legislative appropriation bill or an appropriate cancellation clause has been inserted in the contract.

4.4. Contract Negotiation and Authorization
The Executive Director is responsible for negotiating and signing contracts. 4.5. Executive Council President Clause The President of the Executive Council can execute and sign a contract in place of the Executive Director.

4.6. Contract Reporting
Contracts over one hundred fifty thousand dollars ($150,000) and all subsequent change orders, addenda and amendments over fifty thousand dollars ($50,000) shall be reported to the Executive Council.

4.7. Contract Form

• • The NSWERS standard contract forms are to be used whenever possible.
  • In cases where there are no alternatives to using vendor contract forms, the applicable provisions of the appropriate NSWERS form need to be incorporated into the contract.
  • If an online user agreement (sometimes referred to as a “click-through agreement”) is required for a purchase, the terms and conditions are to be approved by the Executive Director.

4.8. Equal Opportunity Statements
All contracts will contain equal opportunity statements to ensure compliance with Federal Government requirements associated with Title VI and Title VII of the Civil Rights Act of 1964, and other appropriate equal opportunity procurement policies.

4.9. Drug-Free Workplace
All contractors and vendors responding to bids with NSWERS must establish and provide proof of a drug-free workplace policy or submit a statement that they are in compliance with the State of Nebraska’s Drug-Free Workplace requirement.

4.10. Fair Labor Standards Compliance
All bids shall include a statement that they are complying with and will continue to comply with the fair labor standards in the pursuit of their business and in the execution of the contract on which they are bidding. Fair labor standards shall mean wages paid and conditions of employment as are paid and maintained by at least fifty percent (50%) of similar businesses. If it is shown that any contractor submitting a bid has not complied with fair labor standards, such lack of compliance shall be the basis for disqualification of the bid.

4.11. Independence and Conflict of Interest

• • While an employee, as a prospective user, may informally seek information and confer with a vendor about services and prices, negotiation for purchase of services must be done in compliance NSWERS policies.
  • The principal purchasing agent shall retain responsibility for assuring compliance with procurement procedures.
  • If correspondence is carried on between a prospective use and a vendor, copies of such correspondence shall be included, along with other price documentation accompanying a purchase order, to the extent determined appropriate by the principal purchasing agent.
  • No employee shall be financially interested, or have any beneficial personal interest, directly or indirectly, in the purchase of any services, nor in any firm, partnership, corporation or association furnishing them. No such person shall receive or accept directly or indirectly from any person, firm or corporation submitting any bid or to whom a contract may be awarded, by rebate, gift or otherwise, any money or other thing of value whatsoever, or any promise, obligation or contract for future reward or compensation.

4.12. Threshold Adherence
All services shall be bid as a single whole item. In no case shall services be divided or broken up in order to produce several small contracts, which are of an estimated value below that required for bidding.

4.13. Work Eligibility Status
Contractors that are an individual, LLC, or sole proprietorship must complete the “United States Citizenship Attestation Form”. All other contractors shall register and use a federal immigration verification system to determine the work eligibility status of new employees physically performing services within the State of Nebraska.

4.14. Disabled Veteran or Enterprise Zone Act Preference

• • In accordance with state law, when a state contract is to be awarded to the lowest bidder, a resident disabled veteran or a business located in a designated enterprise zone under the Enterprise Zone Act shall be allowed a preference over any other resident or nonresident bidder, if all other factors are equal.
  • Resident disabled veteran means any person who resides in the State of Nebraska, who served in the United States Armed Forces, including any reserve component or the National Guard, who was discharged or otherwise separated with a characterization of honorable or general (under honorable conditions), and who possesses a disability rating letter issued by the United States Department of Veterans Affairs establishing a service-connected disability or a disability determination from the United States Department of Defense.
  • The resident disabled veteran must own and control a business or, in the case of a publicly owned business, more than fifty percent (50%) of the stock must be owned by one (1) or more persons that meet the definition of a resident disabled veteran. The management and daily business operations of the public business must also be controlled by one (1) or more persons meeting the definition of resident disabled veteran.

4.15. Federal Funding
When services are purchased with federal funds, federal purchasing requirements must also be followed. For those purchases meeting the federal definition of a “covered transaction”, the purchaser shall verify that the potential vendor has not been suspended or debarred.

5. Contracts Delegated to NSWERS
The following contracts do not require review and approval by the Executive Council, but must adhere to approval and bidding requirements, if appropriate:

• Any contracts that establish placements for students to complete work-based learning experiences, such as an internship, assistantship, clinical placement, etc.
• Any contract for the purchase of supplies and commodities used in the regular course of business operations.
• Any contract for the purchase of a license to use a mailing list, email list, or similar list of contracts.
• Any contract for trash services, cable television and internet services.

6. Exceptions, Emergencies, and Sole Sourcing

6.1. Exceptions to Bidding Requirements
The following are exceptions to the bid requirements. Documentation justifying the exception should be kept on file by NSWERS:

• • Software license renewals.
  • Technology resource maintenance contracts.
  • Purchasing services from a previously competitively bid government contract, including the State of Nebraska, the University of Nebraska System, or a multi-state compact contract.
  • When pricing has been established by the federal General Services Administration.
  • Placement of ads or advertising.
  • Purchase of insurance

6.2. Emergency
Emergency purchases shall be documented and submitted for approval by the Executive Director. Executive Director approval of an emergency automatically includes the suspension of bidding requirements as appropriate for each emergency. Emergency shall mean any situation where it is necessary to purchase something to:

• • Avoid the loss of life, health, safety, or property.
  • Respond to time limits established by an external authority.
  • Ensure the continuation of an essential NSWERS service, function, utility, facility or computer/software system.
  • Avoid, correct or repair a situation outside the control of NSWERS, including detrimental negligence or acts of an employee, natural or manmade disasters, and security or data compromise.

6.3. Sole Source
Documentation to purchase based on sole source without competitive bids or proposals shall be documented and given approval by either the Executive Director or President of the Executive Council. A sole source purchase is when there is only a single feasible or sole source for the services. A single feasible or sole source exists when:

• • Services are proprietary and only available from the company or a single entity.
  • The same vendor/contractor of an installed pilot project system is required to install expansions to that system.
  • Factory authorized maintenance services must be utilized in order to maintain a warranty or integrity of system.
  • Only one (1) type of product or solution or software exists for a specific application.
  • The services of a particular provider are unique, e.g. entertainers, authors, etc.
  • Based on current research, it is determined that only a single entity services the region in which the services are needed.

7. Contracts Requiring Executive Council Approval at Any Amount

7.1. Educational or Research Partnerships

• All contracts establishing collaborative, educational or research partnerships require Board approval. Contracts, Memorandum of Understandings, or Agreements establishing collaborative, educational or research partnerships between the NSWERS and external entities must be approved in advance by the Executive Council and signed by the Executive Director.
• Contracts that are solely for the purpose of exploring the potential for future substantive contracts do not require approval of the Executive Council and shall be signed the Executive Director.

8. Consultant Contract Guidance
The Executive Council recognizes the value and financial savings that may accrue from the use of experienced consultants to the Executive Council, staff and faculty on special aspects of NSWERS programs. Since NSWERS cannot include in its personnel appointments all the highly qualified and widely experienced people on all phases of NSWERS operations, the Executive Council will therefore contract from time to time, as appropriate, with individuals or groups for special consulting services.

8.1. CPA Firms, Lobbyist and Search Consultants
The hiring and retention of personnel, excluding annual auditors which are approved by the Executive Council, hired for a duration greater than five (5) days shall be approved by the Executive Director. The Executive Director is delegated the responsibility for selecting and negotiating these services on behalf of the Executive Council. The Executive Director shall determine if a contract is necessary. A competitive process is not required. In each instance the Executive Director shall notify the Executive Council.

8.2. Legal Services
All legal services shall be coordinated through the Executive Director.

8.3. System Consultants
The Executive Director is delegated the responsibility for selecting and negotiating on behalf of the Executive Council all other special consulting contracts for NSWERS where the total cost is expected to be under one hundred fifty thousand dollars ($150,000). Such contracts shall be signed by the Executive Director or President of the Executive Council.