BID POLICY:
The Federal Acquisition Regulation defines a small purchase as $25,000 or less. Tufts University requires that any purchase over $5,000 (20% of the small dollar purchase threshold of $25,000) comply with Competition and Price Reasonableness procedures.
COMPETETIVE BIDDING
Tufts University requires competitive bidding and documentation for every purchase order $5,000 and over. Buyers are expected to promote competition and ensure advantageous pricing by soliciting bids from a minimum of three vendors and to select the lowest bidder able to meet the requirements. For orders $5,000 and over the quotations must be written. Requestors of quotations must retain documentation of these bids/quotations in department files for audit purposes.
NON-COMPETETIVE SUPPLIER SELECTION
Occasionally, a buyer is unable or chooses 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 is capable of fully meeting the requirements. Sole sources should be the exception, not the rule.
COST/PRICE ANALYSIS
Tufts University also requires documentation verifying that all purchase prices are fair and reasonable. The buyer must provide documentation of cost/price analysis for all non-competitive purchase orders $5,000 and over. Documentation can be based on the price of previous and similar purchases, current price lists, catalogs, advertisements and negotiated pricing agreements (vendor partnerships).
To obtain a supplier justification/price verification form for such documentation, click here
