Policy Approval Authority | President |
Responsible Division | Division of Administration and Finance |
Responsible University Office | Procurement Services and Contract Management |
Responsible Officer(s) | Director |
Contact Person | Antoinette Bridges |
Primary Audience |
Faculty
Staff |
Date Submitted to Policy Library | 11-01-2019 |
Status | Active |
Adoption Date | 11-01-2019 |
Last Review Date | 11-01-2019 |
Policy Category/Categories |
Finance / Risk Management
|
In conducting small purchase procurements for commodities (supplies), services, and construction, the University shall use practices that ensure maximum reasonable competition and promote small businesses, diversity, transparency, and other statutory requirements. Small Purchases is defined as services or supplies under the threshold of $100,000.
Departments shall seek diverse vendors (minorities, females, persons with disabilities and veterans) for purchases greater than or equal to $20,000.00 and under the small purchase limit by soliciting at least one quote from a Business Enterprise Program (BEP) certified diverse vendor (women, minorities, persons with disabilities & veterans), when available.
A requisition (including open orders) that is less than the small purchase limit ($100,000), but greater than or equal to $20,000 must include written documentation demonstrating competition from multiple vendors (PSCM Quote Form 2019-1). Small purchases should be made from the vendor that offers the lowest cost or the best value to the University.
The individual submitting a purchase requisition shall document that quotes were solicited from multiple vendors, including diverse vendors and small businesses. If the University does not receive multiple quotes, documentation demonstrating the reasons why must be submitted (uploaded as an attachment in the Peoplesoft system (P2PO), along with the purchase requisition using the Small Purchase Waiver form.
If a purchase requisition is submitted for a vendor that is not the lowest-cost vendor, the individual submitting the requisition must complete the Small Purchase Waiver form, documenting the justification for the request.
Small purchase limits may be adjusted annually or by rules promulgated by the Chief Procurement Officer for Higher Education and published on the Illinois Procurement Bulletin for Public Institutions of Higher Education.
Pursuant to changes in the Illinois Administrative Code, the University is required to establish practices that ensure maximum, reasonable competition and promote small businesses, diversity, transparency, and other statutory policies. Documentation of each purchase must be maintained in the procurement file. This policy outlines the procedures to meet these requirements. See 44 IL Admin Code 4.2020 for additional information.
The Illinois Procurement Code (30 ILCS 500/20) states the applicable source selection and contract formation requirements. This policy is applicable to all purchases subject to the Illinois Procurement Code that are below the small purchase limit ($100,000).
A requisition for supplies (commodities), services and construction that is greater than or equal to $20,000, shall include documentation demonstrating competition from multiple vendors. A minimum of two quotes is required, with one from a certified BEP vendor is required. This document must include either:
The small purchase should be made with the vendor that offered the lowest cost and/or best value. If a purchase requisition is submitted with a purchase to a vendor other than the lowest cost vendor, the individual submitting the requisition must complete the Small Purchase Waiver Form documenting the justification for the request.
Competition can be demonstrated by (Note: Use a consistent method of engaging vendors for the same procurement):
PSCM Quote Form 2019-1 is an example to support obtaining written quotes or documenting verbal/internet quotes.
Note: Obtaining quotes for items that are not similar in nature is not considered "reasonable competition."
Departments have a shared responsibility to consider small and diverse businesses in this competitive process. Small and diverse businesses can be identified by searching the Illinois Department of Central Management Services' Business Enterprise Program (BEP) and Small Business Set-Aside Program directories or by contacting Procurement Services & Contract Management department.
Purchases for supplies or services that are not prohibited or restricted and are less than $20,000 may be purchased through Peoplesoft (P2PO) purchase requisition as the normal process. Allowable purchases for supplies that are less than or equal to $5,000 may be purchased using a Purchase Card (P-Card). If possible, competition should be sought by Departments and/or cardholders making these purchases.
Requisitions for open orders require the same level of competition as other small purchases. When an open order is for a catalog of items, the requester should use historical purchase information to determine the quantities and types of products being purchased, in order to compare pricing catalogs from multiple vendors. Catalog items are considered to be a vast array of items one vendor can provide. For example if the requester routinely buy cleaning solutions, cleaning towels, brooms, mops, etc., then the requester should seek quotes from multiple vendors for the common items procured.
The purchases identified below are exempt from the Procurement Code and competition does not need to be demonstrated.
Competition does not need to be demonstrated if a purchase is made under an existing contract, as competition was established through the initial solicitation/award process. Examples of where a small purchase may be made under an existing contract include:
Dividing or planning procurements to avoid use of competitive procedures (known as 'stringing') is prohibited. A review for potential string may occur when the total value of three or more purchases for the same or similar items exceed the small purchase limit during any 12-month period. The Purchasing Director and State Purchasing Officer will jointly determine if a competitive or other consolidated procurement is warranted.
Exclusive: Vendor is the only one capable of providing specified product or service (e.g. unique part for a device or maintenance).
Emergency or schedule requirement: Failure of a device/device part, unusable device/device part, and/or incompatible device/part required an immediate purchase to avoid loss of data, research results, programmatic delays or harm to program participants.
Processing time Vendor turnaround time to produce the good or service facilitates research and programmatic timelines required under the award.
Compatibility: The item purchased must be integrated into an existing device, experiment or research effort, or instructional sequence.
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