MakeHaven Procurement Policy

MakeHaven Procurement Policy

The policy set forth in this document establishes standards and guidelines for the procurement of supplies, equipment, construction, and services to ensure that they are obtained as economically as possible through an open and competitive process, and that contracts are managed with good administrative practices and sound business judgment.

Code of Conduct

A Code of Conduct shall govern the performance, behavior and actions of the Organization, including Board members, employees, directors, volunteers, or agents who are engaged in any aspect of procurement, including – but not limited to – purchasing goods and services; awarding contracts and grants; or the administration and supervision of contracts.

1. No employee, officer, director, volunteer or agent of the Organization shall participate in the selection, award or administration of a bid or contract if a conflict of interest is real or apparent to a reasonable person.

Also see MakeHaven Conflict of Interest Policy

2. Conflicts of interest may arise when any employee, officer, director, volunteer or agent of the Organization has a financial, family or any other beneficial interest in the vendor firm selected or considered for an award.

3. No employee, officer, director, volunteer or agent of the organization shall have decision making power to do business with, award contracts, or show favoritism toward a member of his/her immediate family, spouse’s family or to any company, vendor or concern who either employs or has any relationship to a family member; or award a contract or bid which violates the spirit or intent of Federal, State and local procurement laws and policies established to maximize free and open competition among qualified vendors.  Disclosure, recusal and decision making procedures described in the MakeHaven Conflict of Interest Policy should be followed for any potential conflict of interest.

4. The Organization’s employees, officers, directors, volunteers or agents shall neither solicit nor accept gratuities, gifts, consulting fees, trips, favors or anything having a monetary value in excess of $25 dollars from a vendor, potential vendor, or from the family or employees of a vendor, potential vendor or bidder; or from any party to a sub-agreement or ancillary contract.

5. As permitted by law, rule, policy or regulation, the Organization will pursue appropriate legal, administrative or disciplinary action against an employee, officer, director, volunteer, vendor or vendor’s agent who is alleged to have committed, has been convicted of or pled no contest to a procurement related infraction. If said person has been convicted, disciplined or pled no contest to a procurement violation, said person shall be removed from any further responsibility or involvement with grants management, procurement actions or bids.

Selection

The Organization should avoid the purchase of unnecessary items. The purchaser should seek competitive offers where possible to obtain the best possible quality at the best possible price.

All procurement transactions will be conducted to provide – to the maximum extent possible – free and open competition among suppliers. 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.
• 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.

Budgeting
Part of the process is finance committee is given report and reviews monthly the budget status.

The Executive Director is individually authorized to make prudent purchases as allowed by the board-approved budget. The Executive Director will inform the Treasurer when any budget line is expected to exceed the budgeted amount by 10% or more. Purchases that are beyond the board approved budget, or any purchase of $5,000 or more, require approval of President or Treasurer.

Documentation

Procurement records must clearly show:

• Title or description of items
• Receipt or other written documentation documenting vendor, price, item and date.

Recurring purchases, such as monthly services need only receipts for the first interval. Records should be maintained for five years after final payment is made.

Contract Administration

The Organization is responsible for evaluating contractor performance and documenting, as appropriate, whether contractors have met the terms, conditions and specifications of their 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.

Budget Decision Making and Contracting

This describes the decision making authority for spending within the limits of the approved budget. Committees are always advisory, with the staff person making the final spending decision unless a specific written voted on delegating a portion of that budget to the committee’s authority.

Escalation Trigger requires staff create a purchase order in Xero to be approved by Executive Director. Executive director’s decisions are also constrained by previously referenced requirements to get board officer permission for large or over budget purchases.

Purchases that require Escalated Permission from the executive director require written agreement of the Executive Director. The may be in an email if clearly an explicit approval but it is preferred that requests are submitted as purchase orders in xero: https://go.xero.com/app/!VMz7W/purchase-orders/new

Delegation to Committee

Authority for spending may be delegated to a committee in two ways.
1) Staff Delegation: the staff member working with the committee agrees to accept or heavily weigh the committee recommendation. The staff person still maintains authority to spend as they see best for organization and may choose in opposition to recommendation of committee (although maybe asked to explain why). This system allows staff to move forward more quickly than the formality of a committee gatekeeper, committees still may vote their recommendation so it is on the record. This issi the most common way of operating.
2) Board Delegation: The board of directors may by official vote delegate an amount in a budget line to be under the direct control of a committee. These funds are then restricted to the guidelines set by the board which may be at the discretion of the chair of committee or only by majority vote of committee. Funds delegated by board are supported by staff (arranging and making actual purchase) but decision making rests where board delegates.

Log of Deligations

Procurement Policy Updated:

10/23/2017

Revised: 1/27/2021
Reviewed Revised 6/12/2026