Competitive Bid Policy
Effective December 1, 2006, Boston University formally adopted policies supporting competitive bidding and general procurement. The referenced Memorandum announced these policies. Download memo here.
1. Scope
This policy applies to all Boston University employees and other University representatives.
2. Intent
All Boston University materials and services shall be purchased at a price no higher than others could obtain for like products or services of similar quality and in similar quantities.
3. Responsibilities
Any Boston University employee participating in a procurement process shall (a) purchase materials and services at the “best value” or lowest total cost, which takes into account not only purchase price, but also compliance with technical or functional specifications, product availability, ordering and invoicing processes, service standards, accounting compliance and regulatory requirements; (b) be responsible for the review, evaluation, and documentation of each element of total cost; and (c) be able to justify the economic, research, and/or educational need for the procurement decision.
4. Available Resources
The Office of Purchasing Services is an available resource for units or departments to solicit vendor proposals, obtain quotations, or to negotiate new master supply agreements.
5. Documentation
- At any time a representative of Sponsored Programs, Procurement Operations, Grant Accounting, Internal Audit or a Boston University authority designated as a budget approver may request from the requisitioner bid documentation, which shall include the following: (a) invitations to bid including technical/functional specifications, vendor proposals, price quotations or cost estimates, (b) basis for vendor selection, (c) basis for award cost or price, and/or (d) approved justification for other than full and open competition.
- Boston University Master Supply Agreements can be used for purchases involving either grants or University funds without supporting documentation because they already reflect competitive bid processes and/or market pricing.
6. Compliance
Purchases charged to sponsored accounts must conform to the minimum procurement standards set forth in the Office of Management and Budget CIRCULAR A-21, CIRCULAR A-110, CIRCULAR A-133, (FAR) Federal Acquisition Regulations, and/or any other applicable sponsoring agency requirement. For purchases that are part of a sponsored program with the Department of Defense, the Coast Guard or NASA, agency notification may be required under 10 U.S.C. 2306 before any purchase that exceeds the greater of $100,000 or 5 percent of the total estimated cost of the contract. Documentation of agency notification and/or consent must be attached with the requisition prior to purchase.
7. Procedure
- Purchases < $25,000 – Bids and solicitations from a vendor for less than $25,000 are the responsibility of the requesting authority or department to determine “fair and reasonable” pricing. Depending on the complexity of the intended procurement, determination of best value should include, but is not limited to, competing price quotations and/or references to purchases under Boston University Master Supply Agreements. Departments shall retain bid data supporting purchases (paper or electronic) to the minimum extent and duration necessary for management review of the intended procurement.
- Purchases > $25,000 – For any vendor purchase greater than $25,000, bid documentation demonstrating that the best value has been chosen must be forwarded along with the requisition prior to purchase.
- Purchases > $100,000 – Purchases involving a multi-year commitment or total purchases greater than $100,000 shall be awarded to a vendor only after a competitive bid process has taken place including (a) an assessment of the market and the supply base, (b) written “scope of work” and “award criteria”, (c) a Request for Proposal (RFP) drafted and distributed to vendors, (d) an analysis of vendors’ responses to the RFP, and (e) execution of a written contract or purchase agreement prior to award.
8. Conflict of Interest
All procurement transactions shall be conducted in a manner that ensures free and open competition to the maximum extent practicable. Boston University employees or members of their families should not directly or indirectly own a “significant” financial interest in any business entity doing business with Boston University unless: (a) employees have fully disclosed these interests, in writing, on the Conflict of Interest Disclosure Form as defined under Boston University’s Conflict of Interest Policy; (b) the employees’ duties at Boston University will not require them to make decisions that could be influenced by these interests; and (c) the referenced business relationship has been reviewed and approved by the Compliance Committee and is subject to the oversight of the Audit Committee.
9/8/2006