3.6 Waiver of Bid Process 

A Waiver of Bid is a required document needed to bypass the competitive bid process. A Waiver of Bid requires a proposal from only one source, can be used in unique circumstances (where applicable), and requires a detailed justification. This process is utilized in lieu of an informal or formal bid process. University units must submit the completed Waiver of Bid Request Form with the requisition. UPS will ensure that the request meets an allowable justification and will perform a supplier check to ensure that the supplier is not on a debarred list. This does not guarantee that UPS, or the Board of Governors of Rutgers, The State University, will approve the request.

For federal awards, in situations where there is no price competition for bids $250,000 or more, profit must be negotiated as a separate element of the price.

If the request is not approved, UPS will help the unit identify a supplier and facilitate an informal or formal bid process.

All waivers of bid requests of at least $1M and under $5M are approved by the Chief Financial Officer (CFO) or the CFO’s appointed delegate before the execution of the contract or issuance of the purchase order. The CFO has authority to require Board of Governor’s approval. All waivers of bid requests of $5M or greater require approval Board of Governors. Generational waivers of bid and waivers of bid for pass-through contracts shall be exempt from Board of Governors approval.

Emergency procurement shall be approved by the Chair of the Board of Governors and the Chair of the Board of Governor’s Finance and Facilities Committee prior to the execution of the contract or issuance of the purchase order. A memo and supporting document are submitted for ratification by the entire board at the next Board of Governors meeting.

• Notice of such purchase is presented to the CFO (memo outlining the nature of the emergency purchase)
• CFO engages both Chairs and obtains their concurrence with the emergency procurement
• Procurement accepts waiver of bid requests and authorizes the emergency purchase
• Procurement prepares formal justification memo and presents this at subsequent F&F committee meeting followed by formal Board adoption

Waiver of Bid purchases on federal funds are subject to pre-procurement review by the federal awarding agency. An agency may request that units or UPS forward related documents for the agency’s review.

Waiver of Bid Justifications for Non-Federal Funds:

A. Sole Source Justifications:

• Highly unique or specialized professional services

• Leasing of space

• Required by grant or existing public contract/proposed agreement with another public entity or government agency

B. Technical Evaluations:

• Highly unique or specialized professional services

• Leasing of space

• Required by grant or existing public contract/proposed agreement with another public entity or government agency

• Demolition equipment

• Proprietary hardware/software

• Standardization (continuity of existing equipment or related service)

C. General Justifications:

• Change order (adding to existing order)

• Favorable terms (subject to evaluation by UPS)

• Pilot project/trial/experiment

• Required by grant or existing public contract/proposed agreement with another public entity or government agency or a specific supplier required by the contract

• Purchase under Medicaid 340B

• Other pass-through purchases

• Generational procurement

Bid Waiver Justifications for Federal Funds:

• Goods or services can only be provided from one supplier.

• After solicitation of a number of potential sources, competition is determined inadequate

• Public exigency, meaning life, safety, or health of the public must be sustained through immediate delivery of products or performance of services.

• The federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from Rutgers University.

Once it has been confirmed that the good or service is Waiver of Bid eligible, units will need to do the following:

1) Create a requisition in RU Marketplace.

2) Complete the Waiver of Bid Request Form.

3) UPS to review the form for approval and make contact if there are any issues or questions.

4) Attach Waiver of Bid Request Form and proposed contract to the requisition, if required.