IS-1804 Central Purchasing

Financial Administration

Approved: 7/7/2020
Revision 1: 10/04/2023


The Central New Mexico Community College Purchasing Office is organized to serve the procurement objectives of the College and is responsible for updating departments on policy and procedure revisions. IS-1804 applies to CNM’s Purchasing Office, while purchases by CNM Ingenuity, Inc. and the CNM Foundation may be subject to different guidelines. 

In order to ensure compliance with State of New Mexico purchasing statutes, the CNM Governing Board Guide & Policy Manual, and all federal and state laws; all purchases of supplies, materials, equipment, and services for CNM will be made through the Purchasing Office, unless otherwise stated in College policies or procedures. All money received by a department of CNM, regardless of its source, is considered to be CNM funds and is to be expended under the procedures set forth herein. 

The Chief Procurement Officer (CPO) has delegated authority to departments for purchases less than or equal to $5,000 including any allowed taxes for CNM Procurement Card (P-Card) transactions as designated in IS-1814 Procurement Card. However, the CPO reserves the right to review purchases for final approval. Purchases exceeding $5,000 may be allowed by the CPO after review and issuance of a written approval. 

The Governing Board has adopted a GAA Governing Board Policy to be followed for Community Relations Expenditures and General Activity Account (GAA) purchases. CNM funds may not be used for personal gain or use, or for items as designated in Section 11 (below). 

Every attempt will be made to act fairly in obtaining Invitation for Bids (IFBs), Request for Proposals (RFPs), and information for preparation of bid and proposal requirements and specifications. CNM will attempt not to favor one firm, individual, or company over another in obtaining information for preparation of specifications. IFBs will be awarded to the lowest responsible bidder, giving due consideration to price, quality of product, best value, and time of delivery. (Section 13). All purchases, except as stated in IS-1814 Procurement Card, may require a valid purchase order. 

Procurement requirements shall not be artificially divided (split) to avoid competitive requirements. Orders placed in such a manner may be determined to be the obligation of the person originating such a purchase. 

Property Control is responsible for disposing of all CNM property, except property to be used as a trade-in or exchange. No other person or department is authorized to sell or exchange any item at any time without prior approval from the CNM Business Office.

1. Conflict of Interest

Pursuant to Government Conduct Act, Chapter 10, Article 16 NMSA 1978, except as permitted by the University Research Park Act; “It is unlawful for a public officer or employee to take an official act for the primary purpose of directly enhancing his own financial interest or financial position including participation directly or indirectly in a procurement when the employee knows that the employee or any member of the employees immediate family has a financial interest in the business seeking or obtaining a contract. NMSA 1978 §13-1-62 defines “immediate family” as a spouse, children, parents, brothers and sisters.” 

2. Gifts and Gratuities

No employee of CNM, in particular those engaged in the procurement function including, but not limited to buyers, shall accept favors, gifts, or gratuities of more than nominal value either directly or indirectly from any supplier, representative, or business firm. This applies to every employee regardless of the nature of position at CNM. 

3. Subcontractor Kickbacks

3.1 The Anti-Kickback Act of 1986 (41.U.S.C.51-58) was passed to deter subcontractors from making payments and contractors from accepting payments for the purpose of improperly obtaining or rewarding favorable treatment in connection with a prime contract or subcontract. 

The Act: 

Prohibits any person from:

  1. Providing, attempting to provide, or offering to provide any kickback; 
  2. Soliciting, accepting or attempting to accept any kickback; or
  3. Including, directly or indirectly, the amount of any kickback in the contract price charge by a subcontractor to a prime contractor or a higher tier subcontractor or in the contract priced charged by a prime contractor to the United States; and
  4. Imposes criminal penalties on any person who knowingly and willfully engages in the prohibited conduct addressed in paragraph (1) of this subsection; and
  5. It also provides for the recovery of civil penalties by the United States from any person who knowingly engages in such prohibited conduct and from any person whose employee, subcontractor, or subcontractor employee provides, accepts, or charges a kickback. 

3.2 Individuals who become aware of violations of this provision shall immediately report the incident to the CNM Internal Audit Department. 

4. Unauthorized Purchases

4.1 Purchases not properly authorized in advance by the CPO will require a written statement of justification to the respective vice president by the person originating such a purchase. In instances where the division is not under a vice president’s purview, the justification statement shall be directed to the Vice President of Finance & Operations. Such purchases will be considered on a case-by-case basis; the respective vice president may approve or deny the request as required in IS-1816 Pay on Invoice. 

4.2 A willful violation of the procurement code is a fourth degree felony for purchases over $50,000 and a misdemeanor offense for purchases less than $50,000. NMSA 1978 §13-1-199. To avoid this penalty, departments must ensure that a purchase order or P-Card purchase is in place before receiving goods or services or notification of emergency is given to and approved by the CPO. 

4.3 Purchases made without proper approval may become the personal obligation of the person originating such a purchase. 

5. Payment for Purchases

5.1 State law does not permit for payment in advance of delivery of goods and services. Suppliers generally will invoice CNM for goods and/or services as they are delivered. (For allowable exceptions, see section 7). 

5.2 Unless specifically excluded within this policy, no warrant, check, or other negotiable instrument shall be issued in payment for any purchase of services, construction, or items of tangible personal property unless the receiving department certifies that the services, construction, or items of tangible personal property have been received and meet specifications. 

5.3 CNM’s payment terms for non-construction related purchase order transactions are net 30 days from date of acceptance of the invoice.  CNM departments have 15 days from receipt of invoice to accept invoice as accurate. Exceptions to this policy are: 

  • Terms that offer discounts for prompt payment, such as 2% 10 days Net 30 days, or 
  • Terms that have been agreed to by the supplier and CNM’s Central Purchasing Office 

5.4 CNM’s payment terms for a construction related purchase order transaction allows for seven days to reject and 21 days to pay starting from the date that the Architect certifies the pay application request. 

6. Prepayments

6.1 A prepayment is a request for payment before goods/services have been received. A prepayment is an exception to CNM policy that requires that all goods and/or services must be received before payment can be approved. Prepayment should only be made when a vendor requires it for certain commodities (i.e. software, books, etc.), or when prepayment is the normal form of payment (i.e. memberships, subscriptions, conferences). 

6.2 All supplier prepayments require the approval of the Central Purchasing Office. 

6.3 Per NMSA 1978 §13-1-98(J), prepayments may not exceed ten thousand dollars ($10,000).

7. Purchase Order Cycle

The usual purchasing cycle involves: 

  • Determination of requirements by the department requesting a purchase 
  • Department creates a purchasing requisition (PR) 
  • Purchasing Office determines and administers appropriate procurement method 
  • Additional approvals may be required 
  • Purchasing Office issues purchase orders and/or contracts 
  • Supplier supplies materials or services 
  • Supplier provides invoice 
  • Receiving department or requester certifies receipt 
  • Supplier payment processed through Accounts Payable

8. Tax Exemption

8.1 CNM is considered a local governmental entity and is exempt from all applicable federal and most State taxes. New Mexico Gross Receipts Tax (NMGRT) should be paid for services and construction projects only. 

8.2 CNM’s State Tax Exempt Certificate Number is 01-714409-004. Tax exemption is for CNM purchases for College use only and not for purchases for personal use. 

9. Unallowable and Restricted Purchases

9.1 The following are examples of unallowable and restricted purchases on any College account. The list should not be considered all-inclusive but merely a guide for purchases that are not allowed. 

  • Alcoholic beverages (except for instructional use) 
  • Annual fees on credit cards 
  • Compensation for personal service 
  • Donations 
  • Fines, Penalties 
  • Gross receipts taxes on goods 
  • Holiday decorations 
  • Items for personal gain or use 
  • Meals including business meals and luncheons (except GAA, grant, or Foundation approved) 
  • Occasion cards, flowers, and gifts (condolence, birthdays, going away parties) for personal or business occasion/events 
  • Performers and professional entertainers (restricted) 
  • Personal care products (tissue, lotions, antibiotic gel, cleansers) except preapproval for student use (advisement, financial aid, etc.) 
  • Prescription Drugs/Controlled Substances 
  • Purchases of any product or service from a supplier that would violate an exclusive or semi-exclusive supply and price relationship established by the Purchasing Office (e.g., bookstore). 
  • Retirement gifts – restricted to commemorative items with a maximum value of $100.00 
  • Tickets for athletic or entertainment events (except GAA, grant, or Foundation approved) 

9.2 Some purchases may be allowed against a College fund but are not allowed to be purchased using a P-Card, IS-1814 Procurement Card. P-Cards allow expenditure of funds prior to review and are not intended to be used for all transactions. Inappropriate purchases made with a P-Card may require refund from the supplier or reimbursement by the cardholder and will be tracked as a misuse or decline violation.

10. Price Agreements

Price agreements may be available for many standard equipment systems and services that are repetitively requisitioned and may have been competitively solicited 

11. Purchase Thresholds

11.1 The Purchasing Office shall purchase all materials and services by issuing purchase orders in accordance with State of New Mexico Procurement Code requirements. Separate purchases of the same or similar materials or services from the same supplier at the same time or about the same time shall be considered a single purchase. 

11.2 The Purchasing Office will assist in obtaining quotes/bids greater than $60,000 and maintain the necessary documents for audit purposes. 

11.3 The following are minimum requirements for transaction thresholds excluding applicable taxes: 

Purchase Amounts

Basis for Award


Small Purchase $20,000 or less

Best obtainable price

Documentation demonstrating best obtainable price must be maintained by Department for auditors’ inspection. 

$20,001 to $59,999

Lowest or most advantageous price 

Up to 3 written quotes (or use price agreement including cooperative agreements). Grants require three quotes provided for amounts above $20,000. 

$60,000 or more

Lowest price and/or most qualified

Formal Invitation for Bids/Request for Proposals issued by the  Purchasing Office (or utilized price agreement including cooperative agreements). 

11.4 These minimum requirements for transaction thresholds apply to open order purchases (Open Orders PO and Blanket Purchase Orders). 

11.5 If an existing Price Agreement is not available, a single purchase in an amount greater than $60,000 shall be made only after notice that an IFB or RFP will be received. An IFB or RFP will be sent to vendors via CNM’s online bidding system. 

11.6 After an IFB opening, the CPO or designee will indicate who the apparent responsive low bidder is and forward a copy of the bid results to the department for review. If the lowest bid is rejected, the department must state in writing why the bid did not meet specifications and recommend whether to accept the next lowest bid or to reject all bids. The CPO or designee will reissue an IFB if no responses are obtained or if all bids are rejected. If approval has been given, from the department, to accept the low bidder, CPO or designee will distribute the purchase order and contract resulting from an IFB. 

12. Lowest Responsive Offer 

Purchases shall be made at the lowest prices possible, with equal consideration given to quality, availability and/or best value. 

13. Resident Suppliers 

A New Mexico Resident Business supplier shall be extended an in-state preference for IFBs and RFPs as defined in the State of New Mexico Procurement Code NMSA 1978 §13-1-22. The supplier must have a valid in-state certificate issued by State of New Mexico Taxation and Revenue that should be submitted with their bid or offer. This stipulation does not apply to purchases involving federal funds. 

14. Requests for Proposals (RFP)

14.1 When the CPO or designee makes a determination that the use of IFB is impractical, the purchase shall be made by issuing an RFP. 

14.2 A department should submit a funded and approved purchase requisition (PR) and provide specifications and scope of work for the services or items to be procured. Each RFP shall state the relative weight to be given to the factors in evaluating the responses. The CPO or designee will work with the requesting department to determine the evaluation criteria. 

14.3 Negotiations may be conducted with the supplier whose proposal shows the most promise for selection for award. The content of any proposal shall not be disclosed to other suppliers until award is made. The award shall be to the supplier whose proposal is the most advantageous to CNM. 

15. Electronic Bidding

The Purchasing Office utilizes an electronic bidding system for the distribution, receipt, analysis, and scoring of offers, IFBs and RFPs. 

16. Wage Rates

Public works projects where the cost exceeds $60,000 excluding tax, wage rates will be requested from the New Mexico Department of Workforce Solutions. 

17. Building Repairs, Remodeling, and Construction

17.1 Requests for repairs or maintenance should be processed on a work order through the CNM Footprints system. 

17.2 Requests for alterations to buildings, electrical, plumbing, carpentry work, and related items should be submitted to the Physical Plant Department (PPD).  PPD will make a determination as to the project delivery method and will ensure that all applicable codes and state regulations related to building alterations are followed. 

17.3 Requests for planning and design of these projects should also be made through EOC. 

17.4 All contractors awarded a purchase order must have appropriate licensure for the type of work to be performed at the time they submit their offer, and prior to the start of a project must provide a Certificate of Insurance, and when applicable, a Performance Bond, and a Labor and Material Payment Bond. 

17.5 Detailed information regarding construction purchasing policies, procedures, licensing requirements, bonding, and insurance can be obtained from the Purchasing Office. 

18. Bonding and Insurance

18.1 Construction contractors shall have in force, during the life of any contract, insurance as required by the contract documents. The contractor shall purchase and maintain statutory limits of workers compensation, public liability, and automobile liability insurance at the time of signing of the contract. The Certificates of Insurance shall be executed by an insurance company authorized to do business in the State of New Mexico. CNM and the Governing Board shall be included as a loss payee and/or additional insured. 

18.2 Bonds 

  • Bonds required for public works projects over $25,000 
  • Bonds must be equal to 100% of the purchase order 

18.3 Public liability insurance shall include as a minimum the following coverage: 

  • $400,000 per person/$750,000 per occurrence plus $300,000 for medical and $200,000 for property damage for a total maximum liability of $1,000,000 per occurrence. 
  • Vehicle Liability Insurance shall include the following coverage: 
    • Bodily injury, each occurrence, excluding medical and medically-related expenses $750,000 
    • Property Damage, each occurrence: $200,000

19. Construction Policy and Procedures

19.1 All construction projects shall be accomplished in conformance with the policies outlined in Chapter 13, Article 4 of the New Mexico Statutes. 

19.2 Master Plan Projects for major construction projects (exceeding $1Million) will be submitted to the Governing Board for approval per the Governing Board Guide & Policy Manual. Change orders must be made within budgeted funds which include the contingency fund. The intent of the contingency fund is to meet unexpected costs due to unforeseen conditions found during construction. 

20. Change Orders - Construction Projects

20.1 The CNM Physical Plant Department (PPD) is responsible for initiating all construction project change orders. The Vice President for Finance and Operations approval is required to authorize all construction project purchases $100,000 or greater. Change orders will be issued for corrections of errors in the plans and specifications only for that portion of the cost that would have been included in the bid price had the error not been made. 

20.2 No change order will be issued when corrections needed are the result of the contractor’s misinterpretation of the contract documents. This is the contractor’s responsibility. 

20.3 When corrections needed are the result of the design professional’s error or omission, PPD with assistance from the Purchasing Office will negotiate a resolution as part of the services provided. 

20.4 Change orders that increase the approved cost of a Master Plan project by more than ten percent (10%) will require the approval of the Capital Outlay Committee. 

21. Federal Government Purchases

21.1 All federally-funded purchase requisitions and purchase orders should identify the funding source, the type of award and agency award number. The issuing department should clearly identify and mark all purchase requisitions that include federal and/or grant funding so that it is clear to the CPO the amounts that are federally or grant funded. 

21.2 When procurement involves the expenditure of federal funds, the procurement shall be conducted in accordance with mandatory applicable federal law and regulations, NMSA 1978 §13-1-30-B. When mandatory applicable federal law or regulations are inconsistent with the provisions of the Procurement Code, compliance with federal law or regulations shall be deemed in compliance with the Procurement Code. 

21.3 It is the responsibility of the originating department to ensure that contracting officer approval is obtained when required. 

21.4 The originating department is responsible for meeting the federal agency funding source requirements. 

21.5 Purchase Orders over $20,000 shall contain all flow-down clauses as required by the Federal Acquisition Regulations (FAR). 

21.6 On all procurements involving the use of federal funds, the Grants & Contracts Office will work with Purchasing to ensure that the following certifications are in place when applicable: 

  • Certification Regarding Debarment, Suspension, Proposed Debarment, and other Responsibility Matters – (FAR 52.209-5 and OMB A110, Appendix A.8). Certification and Disclosure Regarding Payments to Influence Certain Federal Transactions (Anti-Lobbying) – (FAR 52.203-11 31 U.S.C. 1352). (Contracts-purchases $150,000 or more) 
  • Small Business Subcontracting Plan (FAR 52.219-9) (Contracts – purchases $700,000 or more) 
  • Certificate of Current Cost and Pricing (FAR 15.403.4) (Contracts – purchases $750,000 or more) 
  • Cost Accounting Standards (CAS) (FAR 52.230-3) (Contracts – purchases $750,000 or more) 

21.7 Compliance with this paragraph is required on all applicable subcontracts. For awards that require certification regarding debarment, suspension, proposed debarment and other responsibility matters, verification that the supplier is not on the Excluded Parties List of Suppliers shall be included in CPO documentation. 

22. Small and Disadvantaged Business Concerns

22.1 CNM intends that businesses and small business concerns owned and controlled by socially and economically disadvantaged individuals shall have maximum practicable opportunity to participate in the performance of federally-funded contracts. 

22.2 In accordance with 45 CFR Part 74.43, the Purchasing Office shall ensure that there is maximum competition among contractors and that positive steps are taken to assure that minority firms, women-owned businesses, and labor surplus firms are utilized. 

23. Non-Employee Travel Expenses

Reimbursement of non-employee lodging expenses is covered by Business Office guidelines. 

24. Maintenance and Service Agreements

24.1 A maintenance/service agreement is a contract between CNM and a supplier, authorizing the supplier to perform routine maintenance and service on equipment owned or leased by a department. 

24.2 When renewing a maintenance/service agreement, it is the department’s responsibility to provide the Purchasing Office with updated rates from the supplier. The make, model, serial number, and CNM tag numbers (if any) should be included on all maintenance and service agreements. 

25. Contractual Agreements

25.1 Lease Agreement:The acquisition of tangible personal property by means of a contract in which the leasing agent (supplier) conveys to the lessee (CNM) the use of the property for a specified term. At the end of the lease term, the tangible personal property is either returned to the leasing agent or CNM may have the option to purchase the tangible personal property. Leases are non-taxable transactions. 

25.2 Multi-term Contracts: A multi-term contract for items of tangible personal property or services may be executed for any period of time deemed to be in the best interests of CNM, not to exceed four years (in some cases ten years), provided that the term of the contract and conditions of renewal or extension are included in the specifications, that funds are available for the first fiscal period at the time of contracting, and that the lease is in accordance with New Mexico regulations. Payment and performance obligations for succeeding fiscal periods shall be subject to the availability and appropriation of funds. 

25.3 Rental Agreement: A rental agreement is a term agreement involving payment for use of goods (example copiers). At the end of the rental agreement, the goods are returned to the supplier. Rentals are taxable transactions. 

26. Lease/Buy Analysis of Equipment

26.1 The originating department must provide the following information on all purchase requisitions for the lease or lease/purchase of any type of equipment: 

  1. Cost of the item, if it was to be purchased instead of leased or rented
  2. Interest rate, number of payments, amount of down payment, and any other significant terms of the lease agreement
  3. Date of the first payment to be made, if known
  4. Total amount to be paid over the term of the lease, including both principal and interest
  5. Maintenance costs included in the monthly payment
  6. Buy-out option 

26.2 If the total lease amount (see (d) above) exceeds the cost amount calculated (see (a) above), a justification for leasing versus direct purchase should be submitted to the Purchasing Office.

27. Purchase Requisition

27.1 Purchase Requisitions are the on-line requisitions entered into Workday by a department. Regardless of the dollar amount a department is required to enter a PR and have an approved Purchase Order or P-Card transaction in place prior to obtaining goods and services. 

27.2 The Purchasing Office will assist in obtaining quotes and issue online IFB or RFP on all PRs as required (section 10 above). 

28. Amending Purchase Orders (PO) (Purchase Order Revisions)

When amending purchase orders (amounts, extensions, etc.), the department will initiate an online change request in Workday that indicates the needed changes/modifications to an existing purchase orderIf the change/modification causes the total purchase order amount to exceed $100,000.00 including tax, the file will be routed for approval from the Vice President of Finance & Operations. Once all approvals are met, the file will be routed to the Purchasing Office. If any approval is denied throughout the process, the request will be routed back to the department with a notification of denial of the request. 

29. Inspection of Items Received

29.1 All Purchase Orders for single items will be sent to Shipping & Receiving for initial delivery. Exceptions to this policy can only be approved by the Purchasing Office. In the event an exception is requested, the requester must specify the delivery location in Workday when initiating the purchase order. 

29.2 Shipping & Receiving will be responsible for initial inspection, coordination of and delivery to the appropriate departments, and inventory tagging of single tangible personal property items $5,000 or greater. If items processed through Shipping & Receiving do not conform to the PO specifications, Shipping & Receiving will assist in administering the return or other corrective actions with the supplier. 

29.3 For items delivered directly to the originating department, the department will be responsible for inspecting and accepting or rejecting deliveries. If the order does not conform to the PO specifications, the originating department must coordinate with the appropriate buyer in the purchasing Office for return or other corrective actions with the supplier. 

29.4 If Shipping & Receiving or the originating department finds that items received are not acceptable, notification to the supplier shall occur as quickly as possible. On all returns, written authorization from the supplier to return merchandise must be obtained before merchandise is returned. Certain suppliers may levy a restocking fee. 

30. Tangible Personal Property Purchases of $5,000 or More

All single item or a system comprising multiple items of tangible personal property purchases of $5,000 or more are tagged by Shipping & Receiving and are assigned to the inventory custodian in Workday. Permanent equipment is defined as property that cost greater than $5,000, retains its original shape or appearance; is non-expendable (usually more feasible to repair than replace), with a one year or longer life expectancy. 

31. Information Technology Services (ITS) Related Purchases

All ITS related purchases for software, use of network, computers, laptops, notebooks, and tablets must be preapproved by the CNM ITS Department in Workday prior to processing any purchase order or via email for procurement card transactions. The appropriate IT spend category must be selected by the requestor on the purchase requisition. 

32. Marketing Communication Office (MCO) Approvals Required

Use of CNM’s logo and colors for use in newspaper legal, display, and position advertisements, clothing and other related purposes. shall require MCO approval. For purchase requisitions, it is mandatory to upload an MCO approval during the initial Workday process. In the case of purchases made using a P-Card, an MCO approval must be emailed to the P-Card administrator before the transaction is initiated  

33. Petty Cash Purchases

CNM purchases not exceeding $50 per receipt and $25 per item may be made in the name of CNM when necessary, provided receipts for payment are obtained at the time the purchases are made. Such payments shall not include taxes (except payments for services). Reimbursement to employees who have paid cash for the item will be made by means of a Petty Cash Voucher. Employees will not be reimbursed for taxes unless services were involved. Petty Cash Purchases is covered in IS-1806 Petty Cash Purchases. 

34. Membership Renewals

Any first-time subscription or membership must get President’s Office approval and attach the approval to the purchase documentation. Membership renewals do not require approval by the President’s Office.

35. Reimbursable Purchases

35.1 An employee may purchase goods and/or services out of pocket and process a spend authorization and an expense report in Workday when an urgent situation exists. An urgent situation is defined as a situation where a purchase is required due to some urgency of need and cannot follow the standard purchasing procedures, either for lack of access to a departmental Procurement Card or requisitioning, as it occurs after normal working hours. Purchases which could have been reasonably pre-planned or anticipated are not considered urgent. 

35.2 A spend authorization and an expense report must be processed and accompanied by a justification memo documenting the urgent need and the receipts that indicate that no balance is due. All receipts must be identifiable as to payee, and nature and amount of expenditure. Any information not on the receipt must be added by the department; all such additions must be attested to by the employee’s signature on the receipt. 

35.3 The process of urgent purchases does not authorize exceptions to or deviations from New Mexico statutes or procurement code regulations. 

35.4 Purchases of items offered at a conference/seminar or other similar purchases while on travel should be coordinated through the department’s P-Card holder. 

36. Procurement of Used Items

When procuring a single used item with an estimated cost of five thousand dollars ($5,000) or more, the procurement shall be treated as if procuring new items. 

37. Trade or Exchange

37.1 Departments are not authorized to sell, trade, or dispose of any item of any reasonable value at any time. This function shall be handled by the Purchasing Office only. When a purchase involves a trade or exchange as partial payment, a description of the property and the CNM tag number is required on the PR. 

37.2 When appropriate, the Purchasing Office will inform prospective bidders of the location where the used property can be examined. The sale price of the new article and the trade-in allowance for the used item must be stated separately. The difference between the sale price of the new article and the trade-in allowance shall be deemed the bid of the seller. 

37.3 When trading or exchanging used items with estimated values exceeding $5,000 as partial payment on new item(s), a written independent appraisal of the item(s) to be traded or exchanged is required. 

37.4 Tagged personal property cannot be deleted from the CNM property inventory without prior approval of the Governing Board. Equipment deletions will be reported to the State Auditor. See IS-1410 Equipment Inventory Adjustment. 

38. Brand-name Specifications

38.1 Unless the Purchasing Office makes a determination that the essential characteristics of the brand names included in the specifications are commonly known in the industry or trade; brand-name or equal specifications shall include a description of the particular design, function or performance characteristics which are required. 

38.2 The Purchasing Office shall seek to identify sources from which the designated brand-name items can be obtained and shall solicit competitive prices. If only one source can supply the requirement, the procurement shall be made under Sole Source Procurement, section 39. 

39. Sole Source (Noncompetitive) Purchases

39.1 If the department originator determines that a noncompetitive purchase must be made, a Sole Source Justification form must be completed and submitted to the Purchasing Office. 

39.2 A contract may be awarded without competitive IFBs or RFPs, regardless of the estimated cost, when the CPO makes a determination, after evaluating the Sole Source Justification submitted by the department, and after conducting a good-faith review of available sources and consulting the originating department, that there is only one source for the required service, construction, or item of tangible personal property. The Purchasing Office shall conduct negotiations, as appropriate, as to price, delivery, and quantity in order to obtain the price most advantageous to CNM. 

39.3 Sole source procurements are required to be posted on the State of New Mexico Sunshine portal and CNM website for 30 days prior to award. CNM is required to post specifications/scope of work for requested goods/services, proposed supplier, amount of purchase, and justification for sole source. The Sole Source Justification Form will be subject to public scrutiny and will require expanded details. If the sole source justification is “per terms of grant or contract driven”, the department should include justification of why it is required for grant/contract and why other substitutes are not acceptable. 

39.4 Suppliers will be able to view potential sole source award and challenge or protest. If the 30 day posting period elapses without a challenge, a sole source purchase can be awarded. If the sole source is challenged, a formal IFB or RFP may be required. Departments will need to plan well in advance of a sole source purchase. 

39.5 The Purchasing Office will perform price or cost analysis on sole and single source procurements.

40. Emergency Purchases

40.1 An emergency condition is a situation that creates a threat to public health, welfare, safety, or property such as may arise by reason of floods, epidemics, riots, equipment failures, or similar events. The existence of the emergency condition creates an immediate and serious need for services or construction that cannot be met through normal procurement methods. An emergency procurement is permissible when an emergency condition exists. Purchases which could have been reasonably pre-planned or anticipated shall not be considered an emergency condition. 

40.2 A department shall inform the CPO of an emergency condition and request authorization for emergency procurement prior to directing a supplier to provide goods or services. CPO shall authorize departments to make emergency procurement, provided that such emergency procurements shall be made with such competition as is practicable under the circumstance. 

40.3 The department shall follow up with a written emergency justification form within three business days of event. The CPO will post the emergency justification form on its website for three business days in accordance with State of New Mexico Procurement Code.