For Goods & Services purchases that exceed $150,000
And for goods and services price agreement contracts
Purchases of Goods and Services, including Personal Services, that are estimated to exceed $150,000 require a formal advertised solicitation process performed by Purchasing.
The Purchasing Department will work with the Cost Center to complete these processes:
- Invitation to Bid (ITB):If the selection is based on price, an ITB is used.
- Request for Proposal (RFP): If other criteria are to be considered, such as customer service or experience, an RFP may be used.
| Purchase Process: |
Need --> Funding --> Quote/Bid --> Contract --> Delivery/Performance --> Payment
- Step 1 - Identify the need:
- What is needed, for what purpose?
- What is the estimated cost?
- Are funds available?
- Has the Cost Center Administrator approved?
- Step 2 - Develop a Statement of Work and (or the evaluation criteria for an RFP):
- The Who/What/When/Where/How of the needed good(s)
- This is precise description of the physical or functional characteristics
- Step 3 - Submit a Bid Info Form to Purchasing
- The Cost Center must appoint a District Representative (Project Manager).
- Step 4 - Purchasing creates solicitation document
- FYI: Solicitation Templates
front-end solicitation documents are created by the Purchasing
Department for the District Representative.
- If you know of vendors to send the solicitation to, provide name, fax, Email etc to Purchasing
draft of the solicitation document is forwarded to the District
Representative who finalizes the document* (see yellow highlighted
areas in the solicitation document).
- When a legal advertisement is required, it is issued to the Daily Journal of Commerce and paid for by the Purchasing Department.
- Step 5 - Choose the Vendor - working with Purchasing after bids or proposals are received, evaluate the vendor offers to select the vendor that
best meets your needs: lowest price, best delivery, etc. in accordance with the established selection criteria (evaluation factors).
- Step 6 - Contract process:
- If a requirements type contract, Purchasing has Vendor sign a Price Agreement contract. Then each Cost Center creates IFAS PR to PO to Vendor
- If a 'fixed quantity' type contract, Cost Center creates IFAS PR to PO to Vendor
- see the PR Manual
- Step 7 - Vendor performs: Know your 'Rights': You want:
- the right service
- delivered at the right place
- at the right time
- in the right condition (the way you want it)
- in the right quantity (time/hours, reports/results/deliverables)
- at the right cost
- to the right customer (end-user)
- Step 8 - Change Order Procedure -To increase the dollar amount of a PO in this category:
- See change order page for additional information
- Communicate with the vendor (usually the vendor calls you with a price change)
- Negotiate with the vendor regarding the change
- ENSURE that the amount of the change does not exceed 25% of the original PO amount
- Email the Purchasing Department: firstname.lastname@example.org to change the PO, for complete details see the PR Manual
- Step 9 - Payment:
- The Vendor will issue and invoice
- The amount must match the quote
- Step 10 - Contract close-out. Cost Center receives PO online with IFAS
- Step 11 - Troubleshooting. If anything goes 'sideways' contact Purchasing immediately.
ORDERS TO VENDORS MUST NOT BE MADE OVER THE PHONE . . . ALWAYS use a District PO.
Note on 'Bid Shopping':
Never tell Vendor "A" what Vendor "B" quoted until after you have
awarded the order. Doing this is called bid shopping, and is unethical. A
Vendor may attempt to persuade you to give an order to him/her, after
you divulge their competitions' pricing, by offering a lower price. DO
NOT allow any vendor to attempt to re-quote their price - they should have
quoted the best price the first time!