Procurement Decision Process
Responsibility Matrix
Per UND purchasing policy
| Resposibility | Department | Procurement |
|---|---|---|
| Legal review | Yes | at times |
| Initiating Bid/RFP/Alternate Procurement/Purchase Request forms | Yes | No |
| Obtain IT approval | Yes | No |
| Obtain Certificate of Insurance | Yes | at times |
| PDC Approval for furniture | Yes |
No |
| Draft contract | Yes, if under $10K |
Yes, if >=$10K |
| Route contract for signature | Yes if under $10K |
Yes if >=$10K |
| Maintain documentation | Yes if under $10K |
Yes if >=$10K |
| Prepare/manage/communicate with vendors during bid process | No |
Yes |
Procurement Bid/RFP Process
The procurement process (Bid/RFP) is then used to evaluate competing products or services to make an award decision. A procurement totaling $10,000 that does not meet sole source criteria, needs to be sent out for competitive pricing by Procurement or an approved delegate.
Reasonable estimated value should be assigned to a procurement to ensure that the proper level of authority, competition and documentation is achieved. For commodities, the entire amount of the procurement price, including shipping and handling and all other related charges, such as installation or maintenance agreements, is to be included. For services, the entire amount of a service contract includes the initial term and all possible extension and renewal options. For example, the value of a one-year contract estimated at $15,000 per year with 3 renewal options is $60,000.
Request For Proposal (RFP)
Request for Proposal (RFP) means a process by which sealed proposals are received in response to a solicitation for a certain commodity or service for which cost will not be the only factor to a successful proposal.
In the most general terms, an RFP is preferred when the commodity or service cannot be evaluated by cost alone. RFP process must include procedures for identifying eligible vendors, developing a comprehensive requirements document, specifying unique needs, negotiating mutually acceptable contract terms and list minimum proposal requirements. Specific times and dates for bid opening must be specified.
- Seeking solutions to solve a problem
- Seeking unique products or services
- Allow vendors to propose solutions
Bid/Quotes
Does the department have to take the lowest priced bid or quote?
Yes, when using a quote or bid. Award is made to the responsible bidder whose bid is the lowest price and responsive to the specifications and other solicitation requirements. If the lowest bidder is not selected, the department is required to complete the Purchase Justification Form stating why the lowest bidder is not acceptable. Work with the buyer to obtain form and attach to the Purchase Requisition.
Can I place two separate orders so bids/quotes will not be required?
A procurement cannot be artificially divided to fall under $10,000. For commodities, the entire amount of the procurement price, including shipping and handling and all other related charges, such as installation or maintenance agreements, is to be included. For services, the entire amount of a service contract includes the initial term and all possible extension and renewal options. For example, the value of a one-year contract estimated at $15,000 per year with 3 renewal options is $60,000.
If a procurement total is $10,000 or greater it needs to be sent for competitive pricing by Procurement Services or an approved delegate. Even though the separate items may be under the $10,000 limit, the combined total dollar amount will be greater than the $10,000 limit.
Contracts
Contracts are needed for a procurement over $10,000. UND recommends using standard agreements as these agreements have been pre-approved by the General Counsel's Office ensuring risk mitigation and timely processing of payments. When installation for equipment is necessary a contract should be utilized. Templates are available on the PPS website under forms.
Service Contracts
When a department services to be performed under $10,000, this service contract needs to be completed by the department before services begin. Contact Procurement & Payment Services for services over $10,000.
Follow the Contractual Signature Listing for the appropriate signature.
Conducting Market Research
Best procurement practices and UND procurement practice indicate if a service/commodity is expected to be above $10,000, market research is acceptable to get up to speed. However, market research does not replace the procurement process; it is intended to help determine Bid/RFP requirements. During market research do not provide vendors advance information that would give them an unfair advantage in the procurement process. Also, internet research or asking peers from other schools is valid research. This process promotes fair and open competition while minimizing our risk of vendor disputes and allows our process to be open and transparent. For the purchases under the procurement thresholds, quotes can be obtained the supplier directly by the Department.
Sole Source Purchase
SBHE policy 803.1 defines a sole source purchase to mean the commodity or service is unique and that the vendor, to the best of the requestor’s knowledge and belief, based on the thorough research of the requestor, is the only vendor able to furnish the commodity or service.
Sole source requests based on personal preference, cost or price, perceived quality, vendor performance, delivery time, trade-in allowance or no cost options or accessories, other special packages or deals are not permitted; rather, these items may be considered in evaluating bids or proposals.
Reference the Alternate Procurement Form number on the Purchase Requisition document. The APR form in located in Jaggaer.
Debarred or Suspended Vendors
UND must search for excluded (debarred) parties in SAM. UND is not permitted to purchase good/services from parties that are excluded (debarred).