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.
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.
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.