Dear Luther Seminary Community,
We would like to take this opportunity to remind all members of the Luther Seminary community to review the Luther Seminary Vendor and Purchasing Policy. This policy can be found on MyLutherNet in the financial policies section. It has come to our attention that there have been a few instances where the policy was not followed, which has prompted new process changes in the business office.
Moving forward, the business office will be conducting monthly reviews of vendor balances by department and making inquiries if deemed necessary.
In cases of large, multi-dimensional projects (exceeding $15,000 with a lengthy timeline and multiple deliverables), a Request for Proposal (RFP) should be sent out, and at least three bids/quotes must be received. Prior to engaging the vendor, documentation of the competitive bids and the rationale for the selected vendor must be submitted to the Business Office, usually accompanied by a signed contract.
For other purchases, where the total annual fiscal year spending with a specific vendor amounts to $15,000 or more (with or without a contract), the department must either obtain at least three competitive bids/quotes or complete and submit an explanation for single/sole source selection. It is strongly encouraged to adhere to the competitive bid process, except in rare instances where it may not be feasible.
Additionally, it is essential to note that vendors with annual fiscal year spend greater than $15,000 must undergo the competitive bid process at least once every three years to ensure the ongoing receipt of the best price, quality, and services. The Business Office requires documentation for all three bids and the rationale behind the vendor selection or sole source determination.
We kindly request that all those involved in vendor engagement and invoicing processes familiarize themselves with the Luther Seminary Vendor and Purchasing Policy as soon as possible. Within the policy document, you will find the necessary forms to complete for compliance purposes.
Thank you for your attention to this matter. If you have any questions or need further assistance, please do not hesitate to contact the Business Office.