Uniform Guidance Procurement Standards

• Threshold: Under $10,000

• Defined as less than $10,000

• No competitive quotes are required and it is up to the grantee to determine whether or not the price is reasonable

• Standard also requires that purchases be distributed equally among qualified suppliers to the extent practical

•  Use of strategically sourced Preferred Vendor Contracts does not conflict with this requirement

• Departments and schools should purchase products and services from Contracted Vendors whenever possible

• Multiple quotes are not required for purchases under $10,000

• Contracts & Grants approves all requisition requests when sponsored dollars are used

• Multiple quotes are not required for purchases under $10,000

• Aggregate dollar amount must not exceed $10,000 unless the product or service is purchased from a Contracted Vendor

• Purchases need to be reasonable, allocable, and allowable

• Threshold: between $10,000 and $250,000

• Simple and informal procurement for services, supplies, or other property greater than $10,000 but less than $250,000

• Grantees are required to receive quotations from an adequate number of sources

• Quotes from an adequate number of sources must be obtained for purchases $10,000 to $15,000

• Formal bids must be solicited for purchases of $15,000 or more unless the product or service is purchased from a Contracted Vendor

• Formal bids cannot be solicited by the department/school

• A copy of any quotes received by the department need to be attached to the requisition

• Formal bids must be solicited for purchases $15,000 to $250,000 when sponsored dollars are being used unless the product or service is purchased from a Contracted Vendor

• All formal bids must be solicited by Procurement

• Current policy of requiring formal bids for purchases over $15,000 or more would stay in place when non-sponsored dollars are used.

• The departments will have access to an inventory listing of all equipment on campus to reduce the duplication of purchases.  Procurement will also perform a secondary check for duplication

• Threshold: over $250,000

The Federal government's preferred procurement method for construction (when certain conditions apply) and for goods/services where price will be the main consideration for selecting the winning bidder.  If sealed bids are used, the guidance outlines five explicit requirements to follow including:

1. Bids must be solicited from an adequate number of known suppliers and provide sufficient time to respond.
2. Invitation for bids must be publicly advertised and define the items or services in order for the bidder to properly respond.
3. Bids must be opened at the time and place prescribed in the invitation for bids and, for local and tribal governments, the bids must be opened publicly.
4. Firm fixed-price contract award will be made in writing to the lowest responsive, responsible bidder.
5. Any or all bids may be rejected if there is a sound documented reason.

• Formal bids must be solicited for purchases of $15,000 or more unless the product or service is purchased from a Contracted Vendor

• Formal bids cannot be solicited by department/school

• OVPRED (when using sponsored dollars) and OVPFA (for state dollars) will be the final approver for all requisitions $25,000 or more

• Bids for purchases of $250,000 or more will need to be formally solicited by Procurement when sponsored dollars are being used

• Current policy requiring formal bids for purchases over $15,000 would stay in place when non-sponsored dollars are used

• Bid spreadsheet needs to be attached to the PO

• Threshold: over $250,000

The Competitive Proposal Method is used when there are critical factors to consider beyond just price.  Both fixed-price and cost-reimbursement type contracts can be used and certain general requirements must be followed including:

1. Requests for Proposals (RFP's) must be publicized.
2. All evaluation factors must be identified in the RFP along with their relative importance. 
3. Proposals must be solicited from an adequate number of qualified sources.
4. There must be a written method for conducting technical evaluations of the proposals received and selecting recipients.
5. Contract must be awarded to the responsible firm whose proposal is most advantageous to the program, with price and other factors considered.

• Formal bids must be solicited for purchases of $10,000 unless the product or service is purchased from a Contracted Vendor

• Formal bids cannot be solicited by department/school

• Contracts & Grants approves all requisition requests when sponsored dollars are used

• OVPRED (when using sponsored dollars) and OVPFA (when using state dollars) will be the final approver for all requisitions for $25,000 or more

• Formal bids for purchases $250,000 or more will need to be formally solicited by Procurement when sponsored dollars are being used

• Current policy of requiring formal bids for purchases over $15,000 would stay in place when non-sponsored dollars are used

• Bid spreadsheet needs to be attached to the PO

• Sole source

The non-competitive proposal also called a "no-bid" contract or sole-source procurement applies in very specific situations that eliminate the need for competition in the solicitation process.

Non-competitive proposals apply to any procurement greater than $10,000 and are used when there is adequate "justification for other than full and open competition".

This can occur when one or more of the following are met:

• The goods/service are only available from a single source
• The grantee needs to meet a public exigency or emergency
• The Federal awarding agency has provided prior authorization
• After soliciting a number of sources, the grantee determines that there is inadequate competition

• A Sole Source Justification needs to be attached to the requisition

• Contracts & Grants approves all requisition requests when sponsored dollars are used

• OVPRED (when using sponsored dollars) and OVPFA (when using state dollars) will be the final approver for all requisitions for $25,000 or more

• Department/school office must attach a Sole Source Justification Form to the requisition for purchases $10,000 or more when sponsored dollars are being used

• Current policy of requiring a Sole Source Justification Form be attached to the requisition for purchases over $15,000 would stay in place when non-sponsored dollars are being used

FAQs

Complex Acquisitions--Competitive Proposal Process

• Procurement Services webpage for the bid process will be updated
  • The email address for departments/schools to send bid requests to is purch@uah.edu
• Bid opportunities will be posted on the Procurement website with a bid due date and time (meeting advertisement requirement)
• Vendors are to submit all bids through Vendor Registry 
  • Bids will be kept in a central electronic folder until after the formal bid due date (meeting sealed bid requirement)
• Bid results will be summarized, Procurement will make an award decision in consultation with the department
• Department will initiate requisition so an official purchase order can be sent to the vendor