Bid Limits
Purchases from $10,000 to $49,999
The Purchasing Department is responsible for soliciting quotations, either verbally or via fax or email, unless the purchase meets one of the exception criteria listed in the “Exceptions to the Bidding Process” section below. To initiate the request for quotation process, departments should send a requisition and specifications to Purchasing. Please contact the buyer if we can assist with writing specifications.
When quotations are necessary, at least three potential sources must be contacted whenever possible. Departments are welcome to indicate suggested sources on the requisition, giving names of sales representatives and phone numbers for companies with which the university may not have done previous business. The buyer may include additional sources, if known.
-
Writing Specifications
The goal of the request for quote (RFQ) process is to obtain the best possible quality and price for the goods or services being purchased. The quality stems directly from how well the specifications have been written. Buyers are trained in this area and are glad to be of assistance. Please remember specifications must describe all criteria desired to evaluate the quotations, including delivery time. -
Awarding the Order:
Procurement processes at the university are governed by the state procurement code which requires selection of the “lowest responsive and responsible offer.” Departments are not required to accept the lowest bid if it does not meet solicitation specifications. If this is the case, departments must document what specifications were not met and then accept the next lowest offer meeting all specifications. Approval from the buyer is required prior to placing an order based on a solicitation.
For Purchases $50,000 and Higher
Formal bids must be solicited by the Purchasing Department using an “advertised bid” process, unless the purchase meets one of the exception criteria listed in the “Exceptions to the Bidding Process” section below. To initiate the bidding process, send a requisition and specifications to Purchasing. The guidelines in the prior section about “Writing Specifications” and “Awarding the Order” also apply to the formal bid process.
Once appropriate specifications are written, the invitation for bid (IFB) must be sent to potential suppliers and a public notice must be posted for at least seven (7) calendar days prior to the bid due date. The Purchasing Department buyer facilitates the entire process. The IFB process may require ten days to two weeks or longer, depending on the length of time suppliers need to prepare their responses. Please contact Purchasing as soon as possible when such purchases will be necessary.
Exceptions to the Bidding Process:
If a state contract or University of Utah agreement is in place for the goods or services you are purchasing, there is no need to solicit quotations or bids. We strongly encourage the use of state contracts when available and when they meet pricing and service requirements. If you decide not to use an available state contract or university agreement, you must use the appropriate bid process described above.
When there is only one source from which goods or services may be purchased, bidding may not be required. If the purchase amount is $10,000 or more, written approval must be obtained by the buyer prior to issuing the purchase order. Consideration of sole source requests requires written justification from the requesting department. If the buyer is aware of additional sources, bids must be obtained.
If the goods/services were bid previously and one of the two following situations occurred, then you may reference the prior PO number on your requisition and new bids may not need to be solicited:
-
- The prior bid included a renewal clause; or
- The prior bid was solicited within one year and the market conditions have not changed significantly in that period of time.
“Unless specifically approved in writing by the director of purchasing or by a University officer as defined in Policy 3-004, orders or commitments for Procurement by University employees are not binding on the University, except as permitted by University regulation (see Rule R3-100D). Individuals who do not comply with University policy when placing Procurement orders may become personally liable to the Supplier for the contract price.”