General Authority and Compliance

• The Purchasing Department is the central authority for KSU and is responsible for management and oversight of the purchasing process, including the development of detailed purchasing regulations, forms, and training materials.
• KSU adheres to Kentucky's Model Procurement Code (KRS Chapter 45A) and all applicable KSU policies, administrative regulations, and state and federal policies. This includes requirements for competitive bidding, contract management, and ethical conduct.
• All purchases are made from Board-approved operating and capital budgets. Department heads are responsible for ensuring funds are available prior to initiating a purchase request.

Methods of Procurement and Thresholds

• The method of procurement will be determined by the Purchasing Department based on the estimated cost of the goods and services, the nature of the purchase, and applicable laws and regulations.
• Small Purchases. For purchases below $100,000, simplified procedures may be used. Generally, the purchasing requirements for small purchases are as follows:
• oPurchases less than $5,000: One (1) quote is required.
• oPurchases between $5,000 and $49,999.99: Two (2) quotes are required.
• oPurchases between $50,000 and $99,999.99: Three (3) quotes are required.
• Competitive Sealed Bidding/Proposals. Purchases of $100,000 or more will require a competitive bid process (e.g., invitation for bids (IFB) or request for proposals (RFP)) unless the items can be purchased from an existing authorized government contract (e.g., state master agreements, cooperative purchasing agreements compliant with KRS 45A.300).
• oThe formal bid process involves public advertisement, issuance of detailed specifications or scope of work, receipt of sealed bids/proposals by a specified deadline, public opening (for IFBs), and evaluation by a committee, leading to an award to the lowest responsive and responsible bidder or the offeror providing the best overall value.
• oSpecifications for bids and proposals will be drafted to promote overall economy for the purposes intended and to encourage competition in satisfying KSU's needs, and shall not be unduly restrictive.
• Sole-Source and Noncompetitive Negotiations. In certain limited circumstances, where it is determined that only one (1) source is practicably available for a good or service (sole source), or when a competitive process is not feasible or in KSU's best interest (noncompetitive negotiation, pursuant to conditions in KRS 45A.095), a direct procurement may be made. Such procurements require robust written justification, review and approval by the Purchasing Department, and may require higher administrative approval depending on the value.
• Emergency Procurements. In the event of an emergency that threatens health, safety, or critical KSU operations, procurements may be made with expedited procedures. All emergency purchases must be documented, including justification for the emergency declaration, and reported to the Purchasing