Competition between suppliers is one of the most effective ways to ensure that a product or service is secured at the most favorable price and terms. Additionally, the University is the recipient of federal funds and therefore must comply with Federal Acquisition Regulations (FAR) that mandate competitive bidding and require supplier diversification. Based on audit requirements, the University must certify that all transactions comply with the University’s policies - not just those that are federally funded.

Procurement Services reviews all vendors for potential regulatory deficiencies, including suspension and debarment listings maintained by the System of Award Management (SAM) and the Office of Foreign Assets Control (OFAC). The University may not enter into agreements if a vendor is debarred, suspended, or declared ineligible by a statutory or regulatory authority.

A form of competitive bidding is required for products or services with an aggregate total value of $10,000 or more. In these instances, a minimum of three bids is required and must be included with the contract request and/or requisition as evidence. Please note, the splitting of purchases through contractual obligations to meet the micro dollar purchase limit is a violation of this policy. The bid amounts include the total term of the contract (example: a blanket contract of $8000 for five years is a $40,000 contract). Bids should be solicited whenever the items can be purchased from multiple sources. Upon request, Procurement Services will assist in locating potential suppliers and obtaining pricing and product availability information. In certain circumstances, competitive bids are not appropriate, and the requirement may be waived as outlined in the “Non-Competitive Proposal - Single & Sole Source Justification Form Required” section below. The minimum bid requirements have been established based on dollar thresholds to promote competitive bidding as summarized below and detailed in corresponding sections:

Purchase Type	Contract Value	Bidding Required	Documentation Requirement
Micro Dollar	Under $10,000	No	Sole bid/quote
Small Dollar	$10,000 - $100,000	Yes	Minimum of 3
Request for Quote	Greater than $100,000	Yes	Minimum of 3
Request for Proposal (RFP)	Greater than $100,000	Yes	Please contact Procurement Office for assistance
Single/Sole Source	Greater than $10,000	No	Single/Sole Source Form and relevant supporting documents
Preferred Vendor	N/A	No	Sole bid/quote
Consortium Partner	N/A	No	Documentation from sourced contract through consortium to include bids, RFP, final contract, amended contracts

When the total cost for goods and certain services is greater than $100,000 and the buyer knows exactly what product or service is wanted or needed and the buyer only needs to know the price, a Request for Quote (RFQ) is required.

When the cost of goods and certain services is $100,000 or greater and the goods or services to be procured may be complex and/or not have standardized specifications, the Request for Proposal (RFP) process is required. An RFP may be needed if the following conditions exist:

multiple solutions are available that will fit the need.
numerous suppliers can provide the exact solution.
there is a requirement to determine the “best value” of the supplier’s available solutions.
products/services for the project cannot be specified.
different skills, expertise, and technical capabilities are required from the suppliers.
the lowest price is not the only determining criterion for awarding the contract.

The RFP process brings structure to the procurement decision by outlining requirements, articulating evaluation criteria including relative importance, and communicating formal activities such as a pre-bid meeting/conference in a single document. An RFP should include standard University requirements maintained by Procurement as well as requirements specific to the product/service being sought. Specifications must be precise and describe the technical specifications for the product or service. The description should include the range of acceptable characteristics or minimum acceptable standards and not contain parameters that unduly restrict competition.

Potential suppliers should not participate in the requirement development of the RFP. Suppliers that participate in the requirement development of the RFP will be disqualified from the bidding process for the RFP. For all transactions requiring formalized bids, the department is encouraged to consult with Procurement Services once an RFQ/RFP has been drafted. Procurement will work with the department to ensure the process is completed following University policy and applicable Federal guidance and regulations. If you are unsure if an RFP or RFQ is required for your purchase, please contact the Procurement Services office.