Request for Proposals and Request for Bids
With certain limited exceptions, purchases exceeding $50,000 are required by the ABOR University Procurement Code to be awarded as a result of sealed competitive bids (RFB) or proposals (RFP). In accordance with ABOR University Procurement Code 3-803 (C)(1), The University Director of Procurement and Contracting Services has determined that the competitive proposal process (RFP) is usually in the best interests of the University and is the better means of promoting fair and open procurement for the following reasons:
- Observation that bidding only, based on the low bid dollar amount, often results in acquisition of lower quality of goods;
- Price competition alone does not necessarily result in fair competition or favorable pricing;
- Awards based on comparative evaluation of price, quality, performance capability and other qualitative factors usually prove the most advantageous to the University;
- Prior procurement experience indicates that competitive sealed proposals usually result in contracts that better serve the University's interests.
Therefore, all University purchases which exceed an aggregate dollar amount of $50,000 should be awarded in accordance with a sealed competitive proposal (RFP) process. However, some purchases may more appropriately be made by competitive bids (RFB), for example, when the sole determining factor in such selection process is pricing. Therefore, authority is hereby delegated to each Buyer to determine the appropriate procurement method. Difficult or unclear situations shall be discussed with the Director.
ABOR University Procurement Code Policy 3-803.D.1 states (in part): Any procurement which does not exceed the aggregate dollar amount of Fifty thousand dollars shall be restricted, if practicable, to Small Businesses.
For procurements exceeding an aggregate dollar amount of $5,000 ($2,500 on Federal money) and not exceeding $50,000, the Buyer shall conduct an informal solicitation (i.e., fax, phone, email, or written) to a minimum of 3 vendors. Only Small Businesses shall be included in the solicitation, unless it is determined impracticable by the Buyer and so documented.
Related Link: Tax Information
Page last updated January 28, 2009
