Hi
As far as I am aware the Bibliography part of Word is not customizable but several pieces of software exist (which I am sure you might get your dept to purchase as they'll be useful). Biblioscape 9 cost $49 for educational use and should do the job you want. Alternatively Reference Manager will work too but more expensive.
For MAC users there's a plethora of options but sadly not so many for windows.
Also try putting your references in as "endnotes" which can then be collated at the end of a section say chapter...might work for you
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