Policy Title: Contact With Sales Representatives

Effective: February, 1996

Revised: August 2006

University personnel having a need to contact sales representatives about a particular brand name or product may contact the vendor for the required information. If you need assistance, call one of the Procurement and Contracting Services Department Buyers. University personnel who are approached by sales representatives should remind them to contact the Procurement and Contracting Services Department as well. Sales representatives are instructed by Procurement and Contracting Services to call and make an appointment if they want to contact a University department about their products.

When writing to prospective suppliers for information, University personnel must include the statement, "information requested for planning and budgeting purposes only. Purchase Order will be issued by the Procurement and Contracting Services Department when a procurement decision is made."

Policy Title: Selection of Vendors

Policy Number: 4.2

Effective: February, 1996

Revised: September 2006

Authority for the final selection of the vendor is the responsibility of the Procurement & Contracting Services Department. We encourage the departments to submit the names and addresses of known vendors and we will add to the selection list from our file.

Vendors are selected for their capability to serve the needs of the University in the most economical and efficient manner possible. Past performance and cooperation are important factors. Vendors must comply with the Equal Opportunity Act (Executive Order 11246, as amended) since it is the policy of the University to promote the full realization of equal employment opportunity through an Affirmative Action program.

Departments should keep the Procurement & Contracting Services Department informed of transactions which work well for them, as well as those on which problems arise.

Policy Title: Small Business Supplier Diversity Program

Policy Number: 4.3

Effective: July, 1996

Revised: October 2007, August 2006, June 2006

As part of the effort to increase the amount of business the University of Arizona does with small business (herein called targeted businesses, which includes socially and economically disadvantaged (minority-owned) businesses and women-owned businesses, and to comply with ABOR University Procurement Code Policy 3-803.D.1, awards shall be made utilizing the following procedures:

1. The Arizona Board of Regents University Procurement Code requires that all purchasing transactions exceeding an aggregate dollar amount of $50,000 be awarded on the basis of sealed competitive proposals (RFP) or bids (RFB). In addition to this requirement, the University will make a good faith effort to include Arizona targeted businesses in at least 50% of those businesses solicited. Any procurement whose dollar value does not exceed $50,000 shall be awarded to a targeted business, if practicable, in accordance with the University of Arizona procurement policies and procedures contained herein.
2. Any purchase that does not exceed an aggregate dollar amount of $5,000 should be made via the P-Card, Arizona BuyWays, or Stores Blanket Order. Departments are encouraged to make purchases from targeted Arizona businesses wherever possible in support of the University's overall Small Business Supplier Diversity Program goals. Vendors will be recruited to participate in the University Procurement Card program and a best effort will be made to assure that targeted businesses are included according to their availability and ability to provide the required goods and services.
3. Any product or service identified as and obtained under federal subcontracting plans which does not exceed an aggregate dollar amount of $50,000, shall be awarded to targeted businesses where possible to contribute towards the achievement of the established goals as set forth in the submitted subcontracting plan. Such awards will be made in accordance with procedures promulgated by the University's procurement officer on the basis of the lowest responsive and responsible bid or proposal. Where this is not practical, documentation will be required explaining why such utilization is impractical to demonstrate our "good faith" efforts in support of the submitted subcontracting plan.
4. Multiple awards, at the discretion of the Buyer or purchasing unit, may be made for any major University procurement where more than one source of goods and services exists and such practice will not result in a degradation of the product, service or price supplied to the University. Such awards will allow targeted businesses to compete effectively on specific portions of major university procurements and is an appropriate mechanism to increase business activity between the University and targeted businesses.
5. Any procurement’s made from large distribution vendors who are able to document that products were acquired from a targeted business, shall be considered as acquired from that particular small business type in the fulfillment of the University's Small Business Supplier Diversity Program goals. A report reflecting the sales volume from each targeted business type will be requested on a monthly or quarterly basis and applied to the targeted business categories.
6. The Procurement & Contracting Services Department in collaboration with Facilities Design & Construction will require all design consultants and general contractors to report subcontract, material and equipment purchases from targeted business concerns for project contracts in excess of $100,000. Through this collaborative effort the general contractor would utilize these business concerns on a "best effort" basis for their subcontracting and vendor activity. A Design Consultant or General Contractor Subcontracting Report would be required prior to receiving final payment.
7. Refer to Section 6.19 of this Manual for Federal Reporting requirements.

The following resources may be utilized in finding qualified targeted businesses:

Tucson Regional Economic Opportunities, Inc.
WWW.treoaz.org

Tucson Hispanic Chamber of Commerce
president@thcc.us

Tucson-Southern Arizona Black Chamber of Commerce
info@tsabcc.com

Grand Canyon Minority Supplier Development Council
office@gcmsdc.org

National Association of Women Business Owners (NAWBO)
info@nawbotucson.org

Central Contractor Registration
http://www.ccr.gov/

For further information contact Ernie Webster, Supplier Diversity Manager, at 621-2888.

Policy Title: Supplier Lists

Policy Number: 4.4

Effective: February, 1996

Revised: August 2006

The Procurement & Contracting Services Department maintains a list of vendors who wish to be included in University competitive solicitations. A competitive solicitation, either in the form of a Request For Proposal (RFP) or a Request for Bid (RFB), will be solicited from those vendors who the Procurement & Contracting Services Buyer determines will stimulate viable competitive offers.

Policy Title: Request For Bids (RFB)/Proposal (RFP)

Policy Number: 4.5

Effective: September 1, 2006

Revisions: June 2008, August 2006, June 2006, May 2005, February 1996

With certain limited exceptions, purchases exceeding $50,000 are required by the ABOR Procurement Code to be awarded as a result of sealed competitive bids (RFB) or proposals (RFP). In accordance with ABOR University Procurement Code Policy 3-803.C.1, The University Director of Procurement and Contracting Services has determined that the competitive proposal (RFP) process is usually in the best interests of the University and is the better means of promoting fair and open procurement for the following reasons:

    1)   Observation that bidding only, based on the low bid dollar amount, often results in acquisition of lower quality of goods;

    2)   Price competition alone does not necessarily result in fair competition or favorable pricing;

    3)   Awards based on comparative evaluation of price, quality, performance capability and other qualitative factors usually prove the most advantageous to the University;

    4)   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, for example, when the sole determining factor in such selection process is price. 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.

The Director of Procurement and Contracting Services has determined that transactions not exceeding $5,000, procured directly by the campus community in accordance with FRS Departmental Manual Policy 9.18 Small Dollar/Direct Purchase Procedures, which includes the Purchasing Card P-Card); Arizona BuyWays; and Stores Blanket Orders, are impracticable to mandate awarding to Small Businesses. The Director has also determined that it is impracticable to require Departments to document why small dollar purchases were not made from a Small Business when purchases are made in accordance with FRS Policy 9.18. Departments are encouraged to use the P-Card for these transactions whenever possible. They are also encouraged to make efforts to identify Small Business for these purchases. The use of the P-Card, Arizona BuyWays, or Stores Blanket Orders will not only streamline purchasing but will allow departments to have greater purchasing flexibility, and generally is more efficient and cost effective for the University.

ALL transactions, including blanket orders, processed by Procurement and Contracting Services not exceeding $50,000 SHALL be restricted to Small Business unless it is impracticable. Departments will be required to provide documentation to Buyers to justify any purchase in this category not awarded to a Small Business. The Buyer has the authority to, and shall, document all transactions not awarded to Small Businesses. Documentation for not awarding to Small Business will be based on one, or more, of the following: 1) Price; 2) Delivery Date; 3) Not available from Small Business/Buyer Experience; 4) Contract Vendor (e.g., UA, State, E&I, GSA, etc.); 5) Continuity in Research; 6) Sole Source; 7) Match existing; 8) Hotel/Conference/Food/Business Entertainment.

For procurements not exceeding $25,000 (less than $2,500 on Federal money) the type and amount of competition necessary to select a supplier will be determined by the Procurement and Contracting Services Buyer. The Buyer will take into consideration: 1) Small Business; 2) Need; 3) Market; 4) Time Constraints; 5) Delivery Requirements; 6) Availability; and 7) Other Factors (e.g. quality, price). The Buyer's professional determination of the type and amount of competition necessary to select a supplier need not be documented, UNLESS the supplier is not a Small Business. The Buyer's signature on the purchase document is sufficient evidence that this professional determination has been made. Departments will be required to provide documentation to Buyers to justify any purchase that is not awarded to a Small Business.

For procurements over $25,000 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. Departments may conduct the informal solicitation, and send the documentation to purchasing as an attachment to the requisition (dpr). Departments will be required to provide documentation to Buyers to justify any purchase that is not awarded to a Small Business.

Independent Contractor and Consultant services shall be procured in accordance with FRS Policy 9.12.

All purchases utilizing Federal money require that: 1) Blanket Orders be subject to an existing University contract and 2) all expenditures exceeding $10,000 have Buyer substantiation of selected source and pricing.

All sealed vendor responses are to be opened at a public proposal/bid opening. This mandatory requirement includes purchases of all supplies, equipment, insurance and contractual services exceeding $50,000 made by the University. The Buyer is to make a good faith effort to include Small Business Program targeted businesses for at least fifty (50%) of those vendors solicited. Sealed RFP's and RFB's will be posted on our web site, if practicable, and may be advertised. The only exceptions to this RFP/RFB requirement, is the provision for emergency procurements or sole source procurements. An emergency exists if there is a threat to health, welfare, or safety; or if a situation exists which makes compliance with this competitive process impractical, unnecessary or contrary to public interest. Emergency procurements will be made with such competition as is practical under the circumstances and must be documented by the completion of the form "JUSTIFICATION FOR EMERGENCY PURCHASE" with approvals obtained as stipulated on the form. A departmental request for a sole source purchase must be documented by completion of the "JUSTIFICATION FOR SOLE SOURCE PROCUREMENT" form and approved by the Director of Procurement and Contracting Services or designee.

For further information concerning these Purchasing Policies, contact one of the Procurement and Contracting Services Buyers.

Procurement of Design and Construction Services - Procurement authority has been delegated to the Director of Facilities Design and Construction (FDC) for the procurement of design and construction services and manage all new construction, renovation, and remodeling projects. Projects of less than $25,000, labor only, and maintenance projects may be handled by in-house Facilities Management forces.

Policy Title: Supply Sources

Policy Number: 4.6

The Buyer will make purchases on the basis of specifications furnished by the requesting department. The determination of a desirable quality to accomplish necessary results will be a joint decision between the user and the Procurement and Contracting Services Department.   Many vendors make alternate proposals which afford the University a better value while either meeting or exceeding the specifications.

Policy Title: Federal Pre-Award Certifications

Policy Number: 4.7

Effective: November, 1998

Revised: January 2003

Federal Acquisition Regulations (FAR) require the University to obtain certain pre-award certifications from the vendor selected for a purchase order award when the source of funding is either a Sponsored Projects grant or contract. These applicable FAR certifications will normally be obtained from the vendor through the normal proposal/bid solicitation process. In the event of a sole source procurement where a formal solicitation may not be issued, the sole source vendor must complete the applicable pre-award certifications as required by FAR before a purchase order award can be made by the University. The FAR certifications to be obtained, the applicable FAR provisions, and related dollar thresholds are as follows:

Certification Regarding Debarment, Suspension, Proposed Debarment, and Other Responsibility Matters – FAR 52-209-5 and A-110, Appendix A.8. [required for contracts >$25,000 and grants >$100,000]
Certification and Disclosure Regarding Payments to Influence Certain Federal Transactions (Anti-Lobbying) – FAR 52-203-11 and A-110, Appendix A.7. [required for grants and contracts >$100,000]
Clean Air and Water Certification – FAR 52-223-1. [required for grants and contracts >$100,000]

Policy Title: Sole Source

Policy Number: 4.8

It may be necessary to procure equipment, supplies or service from a sole vendor source. This means that there is only one source of supply for your purchase requirement. This should be the exception rather than the normal rule. Examples of a sole source procurement are:

• Items which must be compatible with existing equipment or systems and are available only from the original manufacturer.
• Items that have specific features essential for the completion of the task or project at hand that are available from only one source of supply.

Preference for one vendor, product or service following any market studies, quotation, acquisition or demonstration/testing by a department does not constitute a sole source. These preferences must be determined through a competitive proposal/bid process issued by the Procurement and Contracting Services Department.

Submission of sole source justification, brand name and other essential data, even though accepted by Purchasing, does not negate the requirement to obtain pricing confirmation from the specified vendor which may be in the form of a written proposal/bid.

Information as to why the item is needed pertains to budget justification and is not acceptable for a sole source determination. Remember, if your requirement is available from more than one source, it is not considered a sole source.

Policy Title: Price Analysis

Policy Number: 4.9

Price analysis is the examination and evaluation of quotation or bid for a specific product or service without consideration of separate cost elements. Examination and evaluation of a price consists of, but is not limited to, one or a combination of the following techniques:

• Comparison of price quotations from two or more qualified vendors
• Comparison with established catalog or market prices.
• Comparison with the price(s) of a recent purchase of a comparable quality of the same functionally similar products.
• Comparison with target price developed independently of the Procurement and Contracting Services  Department staff.
• Comparison with the G.S.A. price schedule.

• The solicitation did not include a sufficient number of qualified vendors commensurate with the size and complexity of the requirement.
• The vendor/subcontractor offering the lowest price has failed to pass on to the University the advantage it has over other competitors as a result of start-up or other nonrecurring expenses previously absorbed by prior sales.
• On the basis of price analysis, the lowest price is not reasonable.

Policy Title: Subcontracts

Policy Number: 4.10

Effective: February, 1996

Revised: August 2006

1. Requisitioner is responsible for developing a Statement of Work (SOW) which is within the general scope of the prime contract or grant, and is to be furnished with the requisition.

2. Requisitioner is responsible for establishing technical/scientific/financial reporting to be required by the subcontract in consonance with prime contract report requirements. Sponsored Projects is responsible for establishing other subcontract report requirements including patents, property and fund expenditures on cost reimbursement subcontracts and billing/payment requirements.

3. The requisitioner is responsible for formal acceptance of the subcontract product (i.e.: final report, services, hardware, as applicable).

4. Sponsored Projects is responsible for establishing and incorporating general provision clauses required to be flowed down from the prime contract and grant, together with other special provisions as required.

5. Sponsored Projects is responsible for cost or price analysis of subcontract proposals and for securing rate verification from federal agency sources.

6. Sponsored Projects is responsible for post award subcontract administration.

Policy Title: Insurance

Policy Number: 4.11

LIABILITY INSURANCE: All University employees acting in good faith in the course and scope of their employment with the University have the following liability insurance coverage:

• Commercial General Liability: Covers harm to others and their property resulting from your acts as an employee.
• Commercial Auto Liability: Covers harm to others and their property resulting from your use of a University vehicle and some non-University vehicles.
• Professional Liability: Covers harm to others and their property while employed and acting in a professional capacity by the University. Specific examples include medical malpractice, architects, engineers, errors and omissions.
• Workers' Compensation and Employers' Liability: Covers injury to all University workers and supervisors.

• Fire Extended Coverage, Boiler and Machinery, Movable (Personal) Property, Vehicles, Employee Fidelity, and Other Money and Security Losses. Real property is covered at replacement cost and all other property is covered at actual cash value.

• Mexican Insurance: A blanket policy covers University vehicles driven into Mexico. Call Risk Management at 621-1790 to get vehicle specific documents needed in Mexico.
• Group Insurance: A policy covering injury to volunteer workers or other specific groups.

For further information regarding any insurance coverage questions contact:

Insurance Officer
Dept. of Risk Management and Safety
University Services Building #300A
(520) 621-3391

Policy Title: Leases

Policy Number: 4.12

Effective: February, 1996

Revised: August 2006

All forms of Lease, Lease Purchase or Rental Agreements for material or services must be signed on behalf of the University by the Contracting Office, or a Buyer.

Regardless of the time period involved in these agreement types, a formal University Purchase Order will be issued. The using department should define the type of Agreement on the requisition (dPR) indicating whether it is a new or renewal agreement.  A copy of the Agreement shall accompany the dPR if available.

Prior to accepting Agreements as submitted by the requisitioning department, Procurement and Contracting Services will perform an analysis to determine the economic soundness of lease versus purchase for the goods or services required. Some of the factors that will be considered in making this lease versus purchase determination are as follows:

• TITLE: Who retains title to the equipment?
• LIABILITY: Who is responsible if equipment is stolen or damaged?
• INSURANCE: Does the vendor carry sufficient insurance on his/her employees when rendering services and/or is the equipment adequately insured?
• MAINTENANCE: Are all maintenance costs included in the original cost of the lease or is the University responsible for maintaining the equipment at its own expense?
• PAY BACK PERIOD: If the University were to make an outright purchase, what is the pay back period, and what credits are accumulated in the event that a Lease Purchase Agreement is executed?
• FUND AVAILABILITY: Does the requisitioning department have sufficient budget funds or, in the event of grant or contract funds, does the funding provide for this type of expenditure?

Lease purchase or capital leases are also reviewed by FSO to determine the appropriateness of the transaction, with particular emphasis on the interest rate charged and the effect of creating additional institutional debt. After this review, the transaction must be approved by the Senior Vice President of Business Affairs before final approval can be completed.

Lease or Lease Purchase Agreements must have flexible cancellation provisions which will allow the University to discontinue such agreements if further appropriation funding from state, federal, or other legal sources is reduced or terminated. This is especially important for Sponsored Projects and for University service centers that "recharge" costs to federal funds.

For further information, contact Procurement and Contracting Services at 621-1747, or the Contracting Office at 626-3919.

For information concerning lease, purchase, or sale of real estate, contact Real Estate Administration at 621-1813.

Policy Title: Contracts

Policy Number: 4.13

Effective: February, 1996

Revised: August 2006

All contracts, vendor agreements, software license and other documents containing terms and conditions binding The University of Arizona require the approval and signature of the University Contracting Office, or a Buyer. If these documents are signed without proper authority, both legal and financial difficulties can result for you, your department, and the University.

If you have questions regarding this requirement please call the Contracting Office at 626-3919.

Policy Title:  University Wide Contracts & Strategic Alliances

Policy Number: 4.14

Regardless of the dollar amount, when a University-wide contract or Strategic Alliance exists, first consideration in filling a department’s/unit’s need should be given to products/services covered by the contract. These contracts fulfill all requirements covered under Federal and State regulations.

Strategic Alliance suppliers/vendors have made significant and valuable commitments to the University. Departments/units should give their full support in helping to enhance the unique mutually beneficial relationship by: (1) being aware of the purpose of these alliances and related benefits, and (2) assuring that alliance participants are not viewed as simply “suppliers/vendors” because they can provide expertise that can be used to the department’s/unit’s advantage in resolving problems and issues. As part of their role within the Campus Community, it is important that Strategic Alliance company representatives be viewed by University departments/units as consultants and advisors.

No department/unit will be required to utilize a product/service that does not meet its need. However, whenever it is deemed necessary to deviate from a University-wide contract or strategic alliance, a valid justification is required. Reasons which constitute a valid justification include but are not limited to: availability, delivery time, quality, continuity and price.

The above validation requirement is predicated on the fact that in order to meet its legal obligations the University must have a rationale for purchases outside these arrangements. That process is outlined below:

a) When a University-wide contract or Strategic Alliance product/service will not satisfy the department’s/unit’s need, and a purchase is being made in accordance with FRS Policy 9.18 (Small Dollar/Direct Purchase Procedures), the written documentation providing the justification for deviation from a University-wide contract or Strategic Alliance is the responsibility of the end user. Documentation shall be maintained with the transaction records in the department’s/unit’s files. For PCard transactions, the written documentation will be maintained in the department’s/unit’s files, while the transaction documentation is stored as imaged documents in ISW.

b) When a transaction involving a purchase is outside of an existing University-wide contract or Strategic Alliance and is submitted by the unit to Purchasing for processing (regardless of the dollar amount) a written explanation and request to the Procurement Officer must be submitted with the requisition (dpr).

An appeals process for resolving disputes with Procurement Officer’s decisions is in place. The ultimate adjudicators of such disputes are the Senior VP for Business Affairs or the Executive VP and Provost, or their designee as appropriate.

  List of University Wide and Strategic Alliance Vendors

TABLE OF CONTENTS

PURCHASING