Purchasing and Contracts

NSHE Language

Recently, the Nevada System of Higher Education (NSHE) has updated their procedures and guidelines manual to include language for tier 2 and subcontractor reporting and state licensing requirements. UNLV has implemented these directives and will provide clarification towards compliance.

Tier 2 & Subcontractor Reporting Requirements

1. The Nevada System of Higher Education supports equal opportunity for minority owned, women-owned, and other small disadvantaged business concerns (MWDBE) to compete for contracts awarded by NSHE. NSHE also supports efforts to encourage local businesses to compete for NSHE contracts. In some situations, MWDBE and local business concerns may not have the depth or full capability to meet all the requirements of large contracts. Nevertheless, NSHE supports finding opportunities for such MWDBE and local business concerns to participate as subcontractors or Tier 2 suppliers in large contracts.

   To encourage prime contractors to provide this opportunity on prime contracts for the purchase of goods or services that exceed $1,000,000, part of the bid evaluation may include the bidder's historical and anticipated commitment to Tier 2 MWDBE and local subcontractor/local supplier spending. In addition, bid documents and resulting contracts for the purchase of goods or services that exceed $1,000,000 must, at a minimum, contain a requirement for the prime contractor/supplier to annually report expenditures with MWDBE business concerns, and to also annually report expenditures with local subcontractors. These annual reports pertain only to expenditures that are directly attributable to the NSHE prime contract. The annual report should contain the following information:

   1. The name, address, phone number, and type of each local, women-owned, minority and/or disadvantaged subcontractor (Tier 2 supplier or local subcontractor). If a business concern meets more than one definition (e.g. local and women-owned, or minority and women owned), that should be identified;

   2. A description of the goods or services purchased; and

   3. The amount of expenditures with the subcontractor attributed to the prime contract for the 12 month period.

   4. Exceptions to this reporting requirement may be established by the Vice Chancellor of Administrative & Legal Affairs in situations where the contract is unlikely to generate Tier 2 or local subcontractor spending, or if there are legal impediments. Institutions or business centers may adopt more detailed requirements and may also apply similar reporting requirements for contracts under $1,000,000. Federal contracts and grants may also have more detailed requirements for MWDBE spending.

2. Definition of Local Subcontractor. "Local subcontractor" is intended to mean a business concern that is

   1. owned 51% or more by Nevada residents,
   2. is headquartered in Nevada, or
   3. a majority of employees of the business are Nevada residents.

3. Definition of Disadvantaged Business Enterprise (DBE). "Disadvantaged Business Enterprise" is intended to mean a business concern owned by a minority or woman that is at least fifty-one percent (51%) unconditionally owned by one or more minority or women individuals who are both socially and economically disadvantaged, or a publicly owned business that has at least fifty-one percent (51%) of its stock unconditionally owned by one or more such individuals and that has its management and daily business controlled by one or more such individuals. Individuals who certify that they are a member of named groups, i.e. African Americans, Hispanic Americans, American Indians and Alaska Natives (Eskimos and Aleuts) and Asian and Pacific Island Americans are to be considered socially and economically disadvantaged.

4. Definition of Minority Business Enterprise (MBE). "Minority Business Enterprise" is intended to mean a business concern owned by one or more minority individuals that is at least fifty-one percent (51%) unconditionally owned by one or more minority individuals, or a publicly owned business that has at least fifty-one percent (51%) of its stock unconditionally owned by one or more such individuals and that has its management and daily business controlled by one or more such individuals. Individuals who certify that they are a member of named groups, i.e. African Americans, Hispanic Americans, American Indians and Alaska Natives (Eskimos and Aleuts) and Asian and Pacific Island Americans are to be considered socially and economically disadvantaged.

5. Definition of Women-Owned Business Enterprise (WBE). "Women-Owned Business Enterprise" is intended to mean a business concern owned by one or more women that is at least fifty-one percent (51%) unconditionally owned by one or more women, or a publicly owned business that has at least fifty-one percent (51%) of its stock unconditionally owned by one or more such individuals and that has its management and daily business controlled by one or more such individuals. 

State Business License Requirements

A person conducting business for profit in Nevada is required to have a current Nevada business license pursuant to NRS 76.100

1. unless the entity is either
   1. a non-profit corporation or
   2. meets the requirements for an exemption and has filed the appropriate notice of exemption with the Nevada Secretary of State.

All purchase orders and contracts for business services to be provided in Nevada should, at a minimum, contain a verification by the vendor that the organization has a current Nevada business license, is a non-profit corporation or has filed an for an appropriate exemption. For contracts in excess of $25,000, a business license number and information demonstrating good standing with the State of Nevada is required. If necessary, a contract may be initiated with a business that has an application for a state business license pending.