Requirements

Every supplier is accountable to meet the requirements and past satisfactory performance may not be a guarantee of acceptability in the future.

Suppliers who do not comply with the requirements may find limited future business with MSU, and may also experience late payment or non-payment. Three conditions in particular must be noted:

  • Order fulfillment requires a corresponding purchase order (PO) or MSU Procurement Card.
  • Prior written approval of University Services Purchasing is required for any changes in the delivered product or service.
  • Invoice requirements must be satisfied to receive payment.

Supplier Eligibility
All prospective suppliers are eligible to solicit business from MSU. Purchasing selects the suppliers who meet the requirements of each requisition processed for bidding or order placement. All else being equal, MSU buys American and supports Michigan industry. The Supplier Diversity Program supports businesses that are woman-owned, minority-owned, small, or otherwise disadvantaged.

New suppliers are invited to contact the Purchasing Department to schedule a meeting with the appropriate buyer. Following the meeting, suppliers are to complete the Supplier Information Form PDF.

PO Requirements
Purchases made by MSU require a PO or an MSU Procurement (Credit) Card. It is the supplier’s responsibility to obtain a valid PO. Potential suppliers should know that certain products may not be purchased with the MSU Procurement Card, and refrain from entering into those transactions.

Changes to POs
Any change in the product or service provided by a supplier from that specified in the PO must be approved in writing by MSU Purchasing before the supplier provides the goods or services. Changes include but are not limited to description, quantity, price, or terms which differ from the original PO.

Quotation Requirements
In addition to the PO, a bid process to seek multiple written quotations may be required. Payment discounts and freight terms will be used in determining the best value in the competitive bid process.

  • Orders with an estimated value under $10,000 may be bid at the buyer’s discretion.
  • Orders with an estimated value over $10,000 must be competitively bid.

Request for Quotation (RFQ)
An RFQ is a solicitation requesting price, terms, conditions, and service requirements where the estimated value is less than $50,000. The RFQ states the date the quotation must be returned to the Purchasing Department. Suppliers must submit quotations on or before the due date. Quotations received after the due date may not be honored. Information on how and where to submit a quotation is contained within the RFQ. Orders with an estimated value over $50,000 must undergo a sealed bid process.

Sealed Bids
Sealed bids are solicited for acquisitions estimated at $50,000 or more. Sealed bids are to be submitted at any time prior to the specified opening date and time. Telephone, e-mail, or facsimile responses are not accepted. Information on how and where to submit a sealed bid is contained within the RFQ.

Sealed bid openings are open to the public. Recording devices of any kind are not permitted at bid openings. Late bids are not opened or considered.

Payment Terms
Terms are "Net 30" of invoice date unless negotiated otherwise and confirmed in writing on the PO. If discounts are available, more expedient payment can be arranged.

Other Solicitations

Request for Proposal (RFP)
An RFP requests information when services are being procured. Price is not the only deciding factor in service comparisons.

  • Request for Information (RFI)
    An RFI requests written information about the capability of a supplier to provide a specific product or service, or to obtain information about new technology. An RFI may be followed by an RFQ.

Invoice Requirements
The invoice must reference only one (1) PO and must contain:

  • A valid MSU PO number. This is to include all prefixes and the release number when applicable.
  • The current name and "remit to" address of the supplier.
  • Distinguishable, separately invoiced items, each with a description, price, and language matching the language and sequence of the PO.
  • The freight bill number or tracking number.

Submit invoices by US mail or by fax unless otherwise noted on the PO. See Accounts Payable/Invoice Audit for information.

Routing Requirements
Non-compliance with the following shipping instructions and those on the PO resulting in a cost increase, may cause the cost differential to be deducted from the supplier invoice. Payment to you may be delayed.

Small Parcel
United Parcel Service and Federal Express Ground should be used for all parcel shipments to MSU. All parcel shipments are considered FOB Destination. The supplier is responsible for all carrier claims.

Use of Preferred LTL (Less-Than-Truckload) Carriers
Prepaid Shipments
MSU recognizes that historically, "Prepaid Freight" terms enabled the supplier to select the carrier. The present-day demands of supply chain management require MSU to maintain visibility of all inbound shipments to our receiving facilities and off-campus locations. Therefore, suppliers must utilize MSU-preferred LTL Carriers for "Prepaid Freight".

Collect Shipments
All shipments that weigh between 300 and 5,000 pounds that are not delivered in supplier's own truck are to be shipped (LTL) using MSU-preferred carriers. Shipping terms are "Freight Collect".

MSU requires use of Con-way Freight as the preferred LTL carrier.

Expedited and Special Handling Services
Air Express Shipment Requirement
All parcel orders requiring air transport (individual package weight will not exceed 100 pounds) will ship "FedEx Air - Bill Recipient".

Van Line Carriers Requirement
Suppliers will submit a transportation quotation to the MSU buyer for review and comparison. The quotation will include product dimensions, packaging, and handling requirements.

Packaging Requirements
It is the responsibility of the supplier to ensure that proper packaging is used and that the contents of the package are adequately and securely packed, wrapped, and cushioned for transportation:

  • All packages must display the MSU PO Number on the shipping label or the package itself. LTL shipments require the PO to be submitted on the carrier bill of lading.
  • The weight of each carton shipped parcel carrier will not exceed 150 pounds.
  • Use a strong container with all parts intact.
  • Use box sealing tape designed for shipping.
  • Remove all old labels, hazardous material indicators, and other shipment markings.
  • Wrap items separately, using adequate cushioning material; protect items on top, bottom, and sidewalls of carton.
  • Use environmentally compatible cushioning materials when feasible.
  • Use a single address label that has a clear, complete return and delivery address.

Hazardous Materials Packaging Requirement
It is the responsibility of the supplier to ensure compliance with the Code of Federal Regulations 49 (CFR 49) and packaging requirements governing hazardous materials. This includes proper identification, labeling, marking, packaging, and emergency response information.

International Procurement Requirements
All international suppliers are required to submit a pro-forma invoice for review and validation. The pro-forma invoice must provide the following information:

  • The name and address of the foreign shipper and/or manufacturer.
  • The name and address of the importer of record and consignee.
  • A full and accurate description of the imported merchandise; including the Harmonized Tariff number.
  • Quantity of the merchandise being imported with net weights and measures included.
  • The unit price of the imported commodity.
  • INCO Terms 2000 - DDU or DDP must appear on the commercial shipping invoice.
  • Invoice date.
  • Invoice number and PO.
  • A detailed breakdown of any and all prepaid freight and insurance charges associated with the transaction of sale.
  • All discounts offered and or taken.
  • Any selling commissions must be detailed on the invoice.
  • Invoice must be in English.
  • A complete invoice value.
  • Country of origin of the imported merchandise.
  • A name of a "responsible person" as the preparation party of the invoice.
  • A statement of commodity use.
  • Confirmation of inbound gate and broker information detail.
  • Type of packaging (International Wood Packing Materials Regulations may apply).