Procurement of Goods and General (non-P/T) Services
MnDOT Policy #FM017
Revised: October 21, 2021
Please go to the MnDOT Org Chart to find specific contact information: Org Chart.
Responsible Senior Officer: Deputy Commissioner/Chief Administrative Officer
Policy Owner: Director, Office of Administration
Policy Contact: Materials Management Section Director, Office of Administration
The Minnesota Department of Transportation must comply with the state policies issued by the Minnesota Department of Administration, Office of State Procurement (OSP) , governing the procurement of goods and general (non-P/T) services.
As part of this policy, MnDOT has published the Procurement of Goods and General (non-P/T) Services Processes and Procedures. The processes and procedures are incorporated into this policy and provide details about the procurement process and procurement documentation.
MnDOT is committed to achieving equity in its procurement of goods and general services by remaining knowledgeable on procurement laws and rules, including bid process, the Targeted Group/Economically Disadvantaged/Veteran-Owned vendor requirements, Equity Select Program and use of contracts.
Any violation of this policy or the Procurement of Goods and General (non-P/T) Services Processes and Procedures may result in disciplinary action, up to and including dismissal.
- Ensure that MnDOT staff comply with applicable laws, rules, policies, and procedures, including the ALP Manual.
- Establish and maintain a procurement process that MnDOT employees must use to purchase goods and general (non-P/T) services.
- Establish internal controls that protect the agency and its employees.
- Reinforce compliance with the MnDOT Code of Ethics Policy and Minnesota Statutes §43A.38 regarding the Code of Ethics for employees in the Executive Branch.
All MnDOT employees must comply with MnDOT policies and are responsible for the appropriate use of all procurement methods, including purchasing cards, fleet cards, and emergency cards. Employees must adhere to the highest ethical standards when conducting state business.
Key stakeholders with responsibilities under this policy include:
- Materials Management Section
- Offices and Districts
- Requesters of Goods or Services
- ALP-Certified Buyers
- Authorized Approvers
- Receivers of Goods or Services
Authority for Local Purchase (ALP)
A delegation from the Commissioner of Administration to individuals in agencies of state government to directly purchase certain goods and services.
Note: To obtain this delegation, an individual must attend the Department of Administration’s certification class and pass a test. Employees must complete an EIOR and the training representative will register them for the class. MnDOT’s Director of Materials Management must approve all requests to attend the class prior to registration. MnDOT’s Director of Materials Management may further restrict ALP authority levels for an individual or within the agency.
Electronic Inter-Office Request (EIOR)
The electronic process used for the request and approval of a purchase/contract.
Office of State Procurement (OSP) – Acquisitions Team
The Acquisitions Team of the Minnesota Department of Administration Office of State Procurement (OSP) provides leadership and service to government entities in the acquisition of goods and services in a socially and environmentally responsible manner.
Note: The Acquisitions team is responsible for the efficient, timely and cost-effective delivery of goods and services that will improve the quality and productivity of Minnesota government. See the Office of State Procurement website for more information on the laws and rules governing state contracting.
The act of obtaining or buying goods and services and must be conducted in accordance with statewide policies, state statutes, rules, and regulations on procurement.
Note: The process includes preparing and processing a purchase, as well as receiving and approving payment, and often involves:
- Purchase planning
- Purchase approvals
- Standards determination
- Specifications development
- Supplier research and selection
- Value analysis
- Price negotiation
- Executing the purchase
- Receipt of the goods and/or services
- Contract administration
- Inventory control
- Disposals and other related functions
Separation of Duties
An internal control practice designed to reduce the opportunity for errors and to protect employees. Duties are separated so that no one person carries out all phases of a business transaction from beginning to end.
SWIFT (Statewide Integrated Financial Tools)
The online financial, procurement, and reporting system used by the State of Minnesota.
TG/ED/VO Vendor (Targeted Group/Economically Disadvantaged/Veteran-Owned)
A vendor certified by the Office of State Procurement as meeting certain criteria. A “TG” vendor is a business owned by a woman, a person in a racial minority, or a person with a substantial physical disability. “VO” is a certified veteran-owned business and an “ED” vendor is a business located in an area of Minnesota that has been determined to be economically disadvantaged. For further information, see TG/ED/VO Small Business Procurement Program, Minnesota Department of Administration.
MnDOT Office of Administration - Materials Management Section (MMS)
- Provide guidance in the implementation of and compliance with state procurement laws, rules, policies, and procedures, including the ALP Manual.
- Provide leadership, policy development, direction, and support to MnDOT employees on issues involving all aspects of procurement, improvements, standardizations, technology system modifications and enhancements.
- Assist with regional materials management issues, when requested.
- Identify process improvements and recommend best practices.
- Provide direction in identifying business needs or solutions for procurement.
- Identify or confirm the need for materials management and procurement training.
- Provide support and training for MnDOT’s EIOR System, Mobile Inventory Application, purchasing cards, procurement, inventory processes, and SWIFT.
- Ensure all personnel assigned to purchasing roles have security clearance access and training.
- Support the annual evaluation of SWIFT access and mitigating controls to ensure role assignments are accurate for employee-specific duties by meeting MMB and MnDOT internal control requirements.
- Provide an effective and efficient procurement process and serve as liaison to the Department of Administration, Minnesota Management & Budget, and MnDOT.
Office or District
- Ensure implementation and compliance with state procurement laws, rules, policies, and procedures, including the ALP Manual.
- Provide tactical direction such as planning (spending plan and biennial budget), leadership, local inventory education, decision-making, local procedures, and resources for the district and office staff.
- Investigate business opportunities to foster and support partnerships in purchasing, where appropriate.
- Gather input from office or district staff and customers to develop and recommend alternatives to procurement or inventory processes to maximize long-term effectiveness and sustainability.
- Identify and communicate issues and achievements to the Materials Management Section and peers, with the goal of continuously improving the overall agency materials management process.
- Ensure that EIOR is used for purchasing requests and electronic approvals prior to making a financial obligation on behalf of the State of Minnesota with the exception of inventory replenishment purchases, FleetFocus™M5 repair part requests, purchasing cardholder transactions, and contracts or agreements that are tracked in other MnDOT applications.
- Maintain a current list of employees who are authorized to approve EIOR requests and regularly provide updates to the Materials Management Section.
- Ensure the buyer uses SWIFT for the procurement process and encumbers all funds before products are ordered.
- Ensure the separation of duties.
- Report all purchasing violations through the electronic EIOR reporting process.
Requester of Goods or Services
- Request all goods and general (non-P/T) services through the EIOR process, with the exception of the exempt items and services (as listed in the Procurement of Goods and General (non-P/T) Services Processes and Procedures).
- Provide adequate information about the item (specifications, available vendors, and estimated cost).
- Ensure the selected approver has the appropriate level of authority.
- Ensure multiple EIORs are not used to circumvent approval and bid requirements.
- Monitor the progress of the EIOR process.
- Ensure no commitment is made to a vendor prior to the issuance of a purchase order.
- Contact the Procurement Supervisor if goods are not received.
- Maintain certification and remain knowledgeable on procurement laws, rules, policies, and procedures, including the ALP Manual.
- Comply with all procurement laws, rules, policies, and procedures, including checking the TG/ED/VO list when required.
- Determine the method of procurement according to the procedures and statewide policies once the approved EIOR is received.
- Document EIOR requests processed with a purchasing card using the EIOR number recorded on the description line of the purchase card log.
- Ensure submitted EIOR requests are approved by an individual with the proper purchasing authority level.
- Solicit bids as required by statewide policy and document in SWIFT.
- Encumber and dispatch orders, specifications, and documents to vendor.
- Process all requests and orders following the highest ethical standards, Minnesota Statutes §43A.38 and the MnDOT Code of Ethics Policy.
- Oversee and approve purchases conducted by non-certified employees up to $5,000.
- Promote fair and open competition.
- Work with Accounts Payable staff to ensure product or service is invoiced at the proper price.
- Review EIOR requests (i.e. funding, quantity, and items), and approve or disapprove, as appropriate.
Receiver of Goods or Services
- Verify and document the quantity and condition of goods and/or services received.
- Process the receipt in SWIFT or complete the Product Receipt Form, if required, in a timely manner to ensure the state meets the 30-day prompt pay requirements.
Policy Owner (Director, Office of Administration)
- Review the policy every two years, or whenever the Department of Administration makes changes to its statewide policy, to ensure the policy remains up-to-date.
- Ensure the procedures, forms, supporting documents, and training associated with the policy remain current.
- Work with the Policy Coordinator to revise the policy and/or confirm its accuracy.
- Communicate policy revisions, reviews, and retirements to stakeholders.
Processes, Procedures, and Instructions
- Procurement of Goods and General (non-P/T) Services Processes and Procedures
- ALP Manual (OSP - secure)
- EIOR Buyer's Guide
- Make Requests Using EIOR
- IT Storefront
- Minnesota Statutes Chapter 16C
- MnDOT Purchasing Card Use Policy
- Department of Admin Encumbrance and Contract Execution Policy 21-01 (OSP – secure)
- Materials Management iHUB site
- Business Data Catalog (BDC) – accessible from iHUB
- MnDOT’s Policy Website
July 16, 2016
- Policy 5.1, Procurement of Goods and General (non-P/T) Services
- Effective: May 4, 1999
- Revised: April 11, 2005
- Guideline 5.1.G-1, Purchasing Card Use
- First Revision: October 21, 2021
This policy's next scheduled review is due October 2023.