NNNGO Financial Policy and Procurement Policy
NNNGO “Best Practice”
For procurements over #5,000,000, an open competition must take place.
- Basis of award cost or price. Whenever possible, the Organization must engage in affirmative efforts to utilize small businesses, and minority owned firms
- Price should be one of the factors in the evaluation of responses, but the Organization is not required to take the
lowest price if other factors are important to the decision.
- There should be an objective method for selection, and any factors for evaluation and selection should be listed in the procurement documents.
- Awards shall be made to the bidder or offeror whose bid is responsive to the solicitation and is most advantageous to the Organization (price, quality and other factors considered).
A bid may be rejected when it is in the Organization’s interest to do so.
At a minimum, procurement records must clearly show how the Organization:
- Executed price sampling for small purchases;
- Selected the method of procurement and the type of contract to be used;
- Determined which bids or proposals to accept and which to reject; and
- Determined the basis for the contract cost or price.
The Organization has an overall system of contract administration to ensure proper oversight and management of procurement actions. The Organization is responsible for evaluating contractor performance and documenting, as appropriate, whether contractors have met the terms, conditions and specifications of the contract. This may include progress inspections, interim products, inspection of goods delivered, and other such methods that provide assurance that the goods or services purchased are being delivered within the scope of the contract.
- The method of procurement is documented and records maintained for five years after final payment is made;
- All activities are carried out and costs are incurred in compliance with applicable requirements; and
- Before payment is made, services performed are adequate and consistent with the contract scope of services.
Download here: Download Procurement Policy PDF file