3.4 Sourcing Methods (Supplier Selection)

If neither an internal or University-Contracted Supplier meets the needs of the unit, the purchase of goods or services must go through a supplier selection process. The specific process is determined by the value of the purchase. Units must not split purchases to avoid the requirements of a higher value supplier selection process. The following sourcing methods must be utilized:

Purchases Under $50,000

3.4.1 Quote and Quick Order All requisitions of purchases of goods and services under $50,000 (the Low Value purchase range) must have an accompanying quote from the supplier before a purchase order is issued. UPS does not need to be involved in these transactions but is available to assist as needed. Goods or services below $50,000 are considered Low Value and can be awarded without soliciting competitive quotations if the unit considers the price to be reasonable. Rutgers units should distribute Low Value purchases equitably among qualified suppliers, and specifications should neither reference nor be written specific to a particular brand, model, or company. See Make a Purchase on the UPS website.

Units must do the following prior to issuing quotes:

• Determine if excess or surplus university equipment or property can be used

• Ensure that the purchase is not for unnecessary or duplicative items

• Ensure that that small and local businesses are used when possible (contact the Supplier Management Unit within University Procurement Services)

Please review the How to Buy section of the UPS website for a complete list of necessary activities before making a purchase.

Quick Orders

For goods and some services under $50,000, it is possible to issue a quick order, only if the purchase is not on a blanket order or a part of multiple smaller orders placed to bypass the $50,000 threshold and isn’t on the list of restricted items. Units must review the List of Restricted Items before issuing a quick order. Professional Services of any value are not to be procured through Quick Orders. With Quick Orders, the RU Marketplace system automatically reviews purchase requests and issues a purchase order.

3.4.2 Informal Bid

All purchases of goods and services totaling at least $50,000 and below $250,000 are considered to be in the Informal Bid Range and must include a price or rate quote from more than one supplier. UPS does not need to be involved in these transactions but is available to assist as needed. A minimum of 2 quotes should be included in order to benchmark the product. Specification should be generic in nature to allow sufficient competition (no particular brand, model, or company), and quotes should not include suppliers that developed, or assisted in the development of, specifications, requirements, or statements of work, nor include suppliers with a conflict of interest.

See the Informal Bid Intake Form for the applicable checklist needed to submit a requisition (for purchases not utilizing a university contract).

The lowest price may not always be the best value. Units should consider the total cost of ownership, which includes the purchase price, freight cost shipping and handling, inspection, quality, rework, maintenance, disposal, and other associated costs. Units should contact the applicable Procurement Team for assistance if needed, in the total cost of ownership analysis.

See 5.0 Ordering Goods and Services for step-by-step ordering detail. Units must do the following prior to issuing quotes (the below are incorporated in the Informal Bid Intake Form):

• Determine if excess or surplus university equipment or property can be used

• Ensure that the purchase is not for unnecessary or duplicative items

• Perform a lease versus purchase analysis where appropriate

• Ensure that that small and local businesses are used when possible (contact the Supplier Management Unit within University Procurement Services)

A Waiver of Bid is required when there are circumstances where competitive procurement may not be possible and neither the Informal Bid nor the Formal Bid methods apply. See 3.5 Waiver of Bid Process below.

Purchases $250,000 and Greater

3.4.3 Formal Bid

Goods and Services procured with a value of $250,000 or greater are considered to be in the Formal Bid Range and require a Formal Bid process. Units are required to contact the Strategic Sourcing Manager to begin this process, using the RU Marketplace Sourcing Director “Request Sourcing Event”. Before initiating a competitive bid, refer to Find Products and Services to determine if the purchase can be made through a University contract.

A Waiver of Bid is required when competitive procurement is not possible and neither the Informal Bid nor the Formal Bid methods apply. See 3.5 Waiver of Bid Process.