13. BID POLICY

Tufts University requires that any purchase over $10,000 complies with FAR regulations and Competition and Price Reasonableness rules. A completed and signed “Supplier Justification Form ” must accompany eRequisitions $10,000 and greater. All purchases should represent sound business decisions and follow price reasonableness rules.

COMPETITIVE BIDDING

Tufts University requires competitive bidding and documentation for every purchase order $10,000 and over (with the exception of Facilities Contractor Procurement; see Contractor Procurement policy below).  Representatives within the Purchasing Office are expected to promote competition and ensure advantageous pricing by soliciting bids from a minimum of three suppliers and to select the lowest bidder able to meet the requirements. For orders $10,000 and over, the quotations must be written. Requesters of quotations must retain documentation of these bids/quotations in department files for audit purposes.

NON-COMPETITIVE SUPPLIER SELECTION

On occasion, Purchasing is unable or may choose not to competitively bid the requirements. These situations involve selected or sole sources. A selected source: alternative suppliers exist in the competitive market, but the buyer chooses a particular supplier because of technical requirements (precision, reliability) or past performance by other suppliers (poor service, availability of parts). A sole source: no other supplier capable of fully meeting the requirements exists. Sole sources should be the exception, not the rule.

COST/PRICE ANALYSIS

Tufts University also requires documentation verifying that all purchases represent sound business decisions and that prices are fair and reasonable. Purchasing must conduct a cost/price analysis for all non-competitive purchase orders and fully document this analysis for purchase orders $10,000 and over. Documentation can be based on the price of previous and similar purchases, current price lists, catalogs, advertisements and negotiated pricing agreements.

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