Purchasing Policy and Procedure
Conflict of Interest
All NAU employees will comply with the State of Arizona conflicts of interest laws. It is the responsibility of the NAU employee to learn the requirements of the laws and to comply with them. Substantial civil and criminal penalties may result to the NAU employee from failure to comply with the laws.
Any University employee who has, or whose relative has,
a substantial interest in any contract
sale, purchase or service to the University
shall make known that interest to the University and shall
refrain from participating in any manner in such contract, sale, purchase or service.
The procurement of supplies, equipment, or services
from any employee or business owned by any employee of the University is not authorized unless
it is made through public competitive bidding conducted by the NAU Purchasing Services department. Purchasing
Services is not required to request competitive bids for
procurement of small dollar value merely to allow University
employees to bid.
All specifications, including those prepared by
architects, engineers, consultants and others for university
contracts, shall seek to promote overall economy for the
purposes intended and encourage competition in satisfying
the university's needs and shall not be unduly restrictive.
The spouse, child, child's child, parent, grandparent, brother or sister of the whole or half blood and their spouses and the parent, brother, sister or child of a spouse.
(a) An NAU employee or a relative of an NAU employee who is a non-salaried officer of a nonprofit corporation.
(b) An NAU employee or a relative of an NAU employee who is a landlord or tenant of the contracting party.
(c) An NAU employee or a relative of an NAU employee who is an attorney of a contracting party.
(d) An NAU employee or a relative of an NAU employee who is a member of a nonprofit cooperative marketing association.
(e) An NAU employee or a relative of an NAU employee whose ownership is less than three per cent of the shares of a corporation for profit, provided the total annual income from dividends, including the value of stock dividends, from the corporation does not exceed five per cent of the total annual income of such officer or employee and any other payments made to him by the corporation do not exceed five per cent of his total annual income.
(f) An NAU employee or a relative of an NAU employee who is a public officer or employee in being reimbursed for his actual and necessary expenses incurred in the performance of official duty.
(g) An NAU employee or a relative of an NAU employee who is a recipient of public services generally provided by the incorporated city or town, political subdivision or state department, commission, agency, body or board of which he is a public officer or employee, on the same terms and conditions as if he were not an officer or employee.
(h) That of a public school board member when the relative involved is not a dependent, as defined in section 43-1001, or a spouse.
(i) That of a public officer or employee, or that of a relative of a public officer or employee, unless the contract or decision involved would confer a direct economic benefit or detriment upon the officer, employee or his relative, of any of the following:
(i) Another political subdivision.
(ii) A public agency of another political subdivision.
(iii) A public agency except if it is the same governmental entity.
(j) An NAU employee or a relative of an NAU employee who is a member of a trade, business, occupation, profession or class of persons consisting of at least ten members which is no greater than the interest of the other members of that trade, business, occupation, profession or class of persons.
Any pecuniary or proprietary interest, either direct or indirect, other than a remote interest.
Employees must make known any actual or potential conflicts
of interest by completing the form entitled
of Substantial Interest". This is an on-going responsibility
of all NAU employees. Disclosure
forms shall be returned to Purchasing
Services, Building 47A, PO Box 4124.
Each buyer in Purchasing Services shall have an updated summary
of "Disclosure of Substantial Interest" information
and shall refer to it, as part of normal purchasing procedures,
in order to identify potential conflicts of interest. All
related party transactions shall be recorded on a central
log in Purchasing Services.
In the event that one or more bidders or offerors who are
employed in any capacity by Northern Arizona University present
a bid or proposal to provide goods or services to the University,
the following requirements shall be enforced:
1) No employee of Northern Arizona University shall supply
to Northern Arizona University any equipment, material,
supplies or services unless pursuant to an award or contract
let after public competitive bidding through the Purchasing Services department.
2) Any bid or proposal received from an employee who
has not filed a Disclosure of Substantial interest form
with the Director of Procurement disclosing the specific
business, activity or other relationship that creates
the potential conflict of interest in the award or contract
at issue, will be rejected, or if awarded, shall be subject
Sources: Arizona Revised Statutes §38-501 to 38-510