The Federal Acquisition Regulation (FAR) defines a small purchase as $100,000 or less. Tufts University requires that any purchase over $10,000 (90% of the small dollar purchase threshold of $100,000) comply with FAR regulations and Competition and Price Reasonableness rules. A completed and signed “Supplier Justification Form ” must accompany requisitions $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). Buyers 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
Occasionally, a contract administrator 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 purchase represent sound business decisions and that prices are fair and reasonable. The contract administrator 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 (supplier partnerships).
FACILITIES CONTRACTOR PROCUREMENT & BIDDING POLICY
The objective of this policy is to ensure that jobs are awarded fairly and equitably with prudent use of University funds; and that pricing, quality, and timeliness are all considered in the procurement of contracted services. The bidding requirements quoted below are established to promote competition and ensure advantageous pricing.
- Emergency projects and Non-Emergency projects – $1-$10,000
No formal bid process is required. Typically, Tufts Purchasing policy requires competitive bidding and documentation for every purchase order $10,000 and over. However, based on historical information and experience with certain suppliers in the field, a list of competitive suppliers has been “pre-selected” and approved as competitive suppliers. A “Supplier Justification Form ” must accompany orders $10,000 and over.
- Non-Emergency projects – Single-trade $10,000-$15,000; Multi-Trade $10,000 to $25,000: At least two verbal bids must be solicited using the best available information. These verbal bids must be documented (contractor information, date submitted, price, etc.) on a supplier Justification Form, and submitted for file and review by campus directors.
Exceptions to this policy should be infrequent and be for valid reasons, not for convenience. When single sourcing is necessary (for reasons such as emergency, or proprietary systems) the reasons must be clearly documented in writing on the Supplier Justification Form and put in the appropriate job file. If selection is made for reasons other than low bid, this decision must be reviewed with and approved by the Director of University Facilities and the rationale and supporting documentation put on the Supplier Justification Form. That documentation should then be put in the PO packet and the job file. For emergency situations the good of the University and common sense should always prevail (see first bullet above).
- Non-Emergency Single trade projects $15,000 to $50,000, and multiple-trade projects $25,000 to $50,000:
These projects must have three written proposals from eligible and qualified contractors. Detailed drawings and specific “bid documents” may not be available for these types of projects, but every effort should be made to ensure that contractors are pricing comparable specifications. The Purchasing Department should be a part of this procurement process whenever goods and services relating to equipment and/or furniture are involved.
- Construction projects $50,000 and greater:
These projects will normally have design drawings and formal specifications. With these documents a formal bidding process must be followed. This will include written invitations to multiple contractors accompanied by all relevant documents, a specific submission format and deadline, a formal bid opening, a formal Supplier Justification Form to be completed and signed at the time of the bids being opened. At least two Tufts representatives will be present at the bid opening, including a representative from the Purchasing Department.
