Sole Source / Competitive Bid Policy
This policy will outline the requirements for competitive bids on goods and services purchased by the College.
November 15, 2010
Office with Primary Responsibility
Offices with Secondary Responsibility
Reason for Policy
Procurement Services personnel, as agents of the College are responsible for the procurement of materials, equipment and services from the most reliable sources. The procurement process involves researching and negotiating with vendors to acquire the products at the best competitive pricing, while considering quality, delivery and service. This policy calls for obtaining the best bids based on prices and other pertinent factors related to the specific purchase. The policy explains the three threshold levels that have been established to promote competitive bidding and increase efficiency of the procurement process. The policy also includes the process for making sole source purchases.
Scope: Who should know this policy?
Any employee responsible for procuring or paying for goods or services, including employees working in Finance Centers.
Good business practice and the responsibility for the expenditure of College funds requires the College follow a policy of obtaining competitive bids/quotations. Purchases shall be made on the basis of competitive prices, considering quality, suitability, delivery and service. College policy requires acceptance of the best bid. When determining the best bid, prices and other factors Are to be considered.
To ensure objectivity and eliminate unfair competitive advantage, suppliers (i.e., vendors) who participate in the development or drafting of specifications, requirements, requests for quotes or proposals must be excluded from competing for such purposes.
To avoid potential conflicts of interest, no employee, officer, or agent of the College should participate in the selection, award, or administration of purchases or contracts in which, to his or her knowledge, the employee, immediate family, or partner has a financial interest in the supplier's organization.
The following guidelines have been established to promote competitive bidding. Requestors should realize that these are *minimum* requirements and that bids should be solicited, whenever the goods or services can be purchased, from several different, responsible suppliers. Upon request, Procurement Services will assist departments in locating potential suppliers and obtaining pricing and product availability information for any threshold level.
Purchases up to and including $9,999.99
For purchases less than or equal to $9,999.99, requestors should follow their own judgment in identifying potential suppliers. If the goods or services can be obtained from a contracted/preferred supplier, it is required that the requestor purchase from this source. A list of contracted/preferred suppliers is available in the Procure-to-Pay Guide.
Purchases between $10,000 - $24,999.99
All purchases over $10,000.00 but not exceeding $24,999.99 require at least three (3) quotations be obtained from suppliers if not utilizing a contracted/preferred supplier. All quotations must be in written form so they can be attached to the requisition. If there are limited sources of supply or the low bid is found unacceptable because of some factual circumstance, the department head or principal investigator should write a clear, concise, and factual justification for not accepting the lowest bid. If the requestor is unable to identify three suppliers, Procurement Services should be contacted to assist in identifying additional suppliers.
Purchases over $25,000
All purchases over $25,000 require the requestor to contact Procurement Services to conduct more formal bid process. Procurement Services will work with the requestor to directly solicit bids and provide a tabulation of bids for the requestor's review and evaluation.
There are a few circumstances and items excluded - in all or part from the competitive bid policy. Failing to anticipate needs resulting from poor planning is not an exception to this policy. Certain situations which may justify purchases without following the competitive bid procedures are as follows:
- Items purchased from current College, state, federal, or other cooperative contract or pricing agreement.
- Emergency purchases when:
-Human life, health or College property is in jeopardy.
-Repairs of equipment involve hidden dangers.
-Repairs are immediately needed for equipment where delay would lead to higher expense.
- Items purchased for resale; such as the Computer Store, where a separate procedure is in effect.
- Items procured solely from a government agency.
- Library acquisitions (books, periodicals and films).
- Items which are proprietary (software, etc.).
- OEM (Original Equipment Manufacturer) requirements for equipment under lease, rental, warranty or maintenance.
- Agency specified vendor.
- Design compatibility with existing equipment.
The cognizant department manager or principal investigator should submit a written, clear, but concise statement that justifies waiving the competitive bidding process. Final responsibility in determining whether an item is a proprietary item and may be purchased from a sole source rests with the Director of Procurement Operations, the Manager of Strategic Sourcing, Contract Manager, or Buyer.
A sole source purchase is one where an good or service can only be purchased from a single source. This situation makes it impossible to obtain competitive bids. The requisitioning department shall furnish documentation to justify why the technical characteristics inherent in the item make it essential to purchase the particular good or service. Written documentation of some form of price or cost analysis is required on all sole source purchases with an aggregate expenditure in excess of $10,000. Appropriate documentation may include copies of published price lists, advertised pricing in established magazines, journals, and newspapers, and similar indices. Final responsibility in determining whether an item is a proprietary item and may be purchased from a sole source rests with the Director of Procurement, the Sourcing Manager, a Contract Manager or Buyer.
Solicitations for Quotes
Solicitations for quotes shall set forth all requirements that the bidder must fulfill for their bid to be evaluated by the College. Solicitations should be based upon a clear and accurate description of the technical requirements. Complete information should be provided including but not limited to, quantity, description, delivery requirement, special conditions, drawings, specifications, bid due date and time. Specifications or requirements should not unduly restrict competition. Whenever a "brand name or equal" description is used to define performance or other salient requirements, the specific features of the named brand must be clearly specified.
When evaluating quotes, consideration may be given but not necessarily limited to, the following: price, bidder’s previous record of performance and service, ability of bidder to render satisfactory service in this instance (i.e., training, maintenance and repairs), availability of bidder's representative to call upon and consult with the end users, quality and conformance to specifications, delivery schedule, life expectancy, warranty and disposal value.
Unsuccessful vendors shall be notified that the bid is closed and awarded. It is not necessary to note the successful bidder. The College reserves the right to reject any bids, waive informalities and award the contract in the best interests of the College.
Exclusions / Exceptions
Ramifications if policy is breached
If this policy is breached, the College is at risk for not passing its audits from various auditing agencies. This could affect the amount of grant money awarded to the institution.
Contacts / Responsibilities
The procedures vary depending on the dollar threshold of the goods or services being procured.
If the good or service can only be purchased from a single source, the individual requesting the good or service is required to fill out and sign the Sole Source Justification Form. The Form and any other pertinent information should be sent to the appropriate departmental Super User or the Finance Center Super User to be entered into the Oracle system.
The Sole Source Justification Form must be completed for goods or services purchased from a single source or when the supplier offering the lowest bid is not accepted.