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N.C. Department of Environment and Natural Resources

NC Department of Environment and Natural Resources
Purchase & Services - Questions?

Purchase & Services

Frequently Asked Questions

Contracts Unit

QUESTION: When is a contract required?

ANSWER: A contract is required whenever State/Federal funds will be used to pay for a service (other than utilities or equipment maintenance), provided by an individual or a public or private agency or firm.

QUESTION: How long does it take to get a contract?

ANSWER: The time required to complete the contract process will vary depending on who it is with and the amount of the contract:

a. Approval for contracts with individuals, other governmental agencies or direct client services is delegated to the Department and these contracts can be processed in about two (2) weeks.

b. Contracts with nongovernmental agencies, private non profit agencies or the private sector that are in excess of $10,000.00 annually must be approved by DOA, Purchase and Contract. These contracts could require three to four weeks to process.
Please note that these times presume the receipt of adequate materials and availability of funds properly budgeted.

QUESTION: How can a service be purchased as a direct pay under $750.00 ?

ANSWER: Policy and procedures to pay directly for services are being developed - until these are finalized it will be necessary to document the service requirements and expected deliverables and payment arrangements. A purchase order for services can be issued in lieu of a contract.

Purchasing Commodities

QUESTION:
Is a telephone quote or a written Request for Quotation required if an item(s) is sole source?

ANSWER: Yes. Even if the item(s) is sole source, a quotation (telephone/written, whichever is appropriate in the circumstances) is required.

QUESTION: Why do purchases of "like" items that are not on state contract have to be approved by the Department of Administration/Division of Purchase and Contract? What backup documentation is required?

ANSWER: Because purchases from State term contracts are mandatory, purchases for item(s) which are similar to the term contract item(s) must be reviewed/approved by the Department of Administration/Division of Purchase and Contract. You must attach a justification letter detailing why the similar item on term contract will not meet your needs.

QUESTION: How do you determine if an item is on State term contract?

ANSWER: Access the Department of Administration/Division of Purchase and Contract home page through the Internet. Use the term contract index listing to search by commodity number, alpha listing, keyword cross reference or computers. Please contact the Purchase and Services/Purchase and Contract staff if you require further clarification concerning if item is covered by state term contract.

QUESTION: What is the policy regarding NC Correction Enterprises product preferences?

ANSWER: Per NC General Statute 148-70, all Departments, Institutions and Agencies of the State shall give preference to Department of Correction products in purchasing articles, products and commodities. In other words, if the product can be obtained from Correction Enterprises, it must be purchased from Corrections. If Correction Enterprises can not meet your specifications (i.e. delivery, matching existing, etc.) an exemption letter from the Department of Correction must accompany that particular purchase request.

QUESTION: May State term contract item(s) be purchased direct?

ANSWER: No, you may not purchase state term contract item(s) direct. Note: if the item(s) required does not meet the term contract minimum specified, then they may be purchased direct. This minimum dollar amount refers to the amount to use the State term contract, not the minimum dollar amount for transportation charges. If the State term contract does not specify a minimum order quantity, then all purchases must follow state term contract rules which require the issuance of a purchase order.

Lease

QUESTION: How long does it take to obtain an extended lease agreement after we have provided a complete package to Purchase and Services?

ANSWER: Agency Lease - 1-2 days providing all required information is received; State Property Lease - 1-2 weeks generally, if all required information is received; Formal Lease - approximately four (4) months depending on timing for Council of State approval.

QUESTION: When does the Council of State meet to approve my lease?

ANSWER: The Council of State meets the first Tuesday of each month at 9:00 a.m. in room 5034 of the Administration Building.

QUESTION: I have two leases covering space I occupy. They expire at different dates. May I combine the two leases so I will only have to deal with one?

ANSWER: No. Each lease is set by the beginning date and ending date. If needed, you could perhaps request to go on a month-to-month status for a few months (less than 6) until both leases would end on the same date. You could then combine your needs and request one lease.

Insurance

QUESTION: Do I need to have All-Risk insurance?

ANSWER: Division office decision - All-Risk for computers is advised, cost is relatively inexpensive, .30 per $100.00 of value. Miscellaneous equipment is .40 per $100.00 of value and the risk on likelihood of loss or damage versus cost of coverage should be weighed by division office.

QUESTION: Can my program move into an office space before my lease is executed?

ANSWER: No. The lease will define a starting date and an ending date, otherwise, problems could arise between landlord and lessee over payment for leased space and cause problems for the Controller's Office, who issues checks for lease payments.

QUESTION: I just purchased equipment and I missed the cut-off for requesting All-Risk, can I still get the equipment covered?

ANSWER: Yes. Anytime during the year, All-Risk can be requested on equipment. However, after information is submitted each year around April - May, you probably will not be invoiced until the next year at renewal time.

QUESTION: I'm a State employee and had a lap top computer that belonged to me in a State vehicle. It was broken into and the lap-top stolen. Could I be reimbursed? We had all-risk coverage.

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