Material & Disbursement Services (MSD)
POLICY 7
Effective Date: 03/01/1998
Last Modified Date: 11/13/2003
Competition Required
One of the basic principles of public purchasing is to obtain competition by soliciting multiple quotes/bids whenever possible. Purchase requisitions over $5,000 that designate only one source or brand/model as being capable of fulfilling the requiring activity's needs must be accompanied by conclusive documentation (justification memorandum) that explains why the specified product and/or source is singularly able to meet those needs and no other product or source can do so.
Waiver of Competition
The normal competitive bidding procedure may be waived in the following circumstances:
- for Small Order purchases (see MSD Policy 9). Individuals authorized to use the Small Order Procedure must search for best-value products before expending University funds
- where the needed product or service is available from only one source of supply
- where standardization or compatibility is the overriding consideration and such compatibility/standardization can be achieved only through the purchase of a unique product
- where products are bought for "over the counter" resale
- where a particular product or service is desired for educational, training, experimental, developmental, or research work (must explain why other products/services do not meet user's needs)
- where the requirement is for an authorized cooperative project with another governmental unit(s) or a charitable non-profit organization(s)
- where performance or price competition is not available
- where a particular medical product, service, or prosthetic appliance is needed
- where additional products or services are needed to complete an ongoing job or task
Justification Required
On some highly technical items, there will be only one known source or a brand-specific item that will satisfy the requirement. To support such a waiver or limitation of competition, send a justification memo with the Purchase Requisition. Forward the justification memo to Purchasing Services for approval and include the following information:
- name and address of the suggested supplier;
- technical specifications that make the equipment unique;
- names and addresses of other vendors that make similar equipment, and details of the ways such equipment fails to meet required specifications; and
- any other information that supports the uniqueness of the requested item(s).
Supporting Documents
Copies of all correspondence, including any vendor quotations received in the selection of the special equipment, should also accompany the Purchase Requisition.
Limited Use
There is generally competition for any type of equipment or supplies used by the University, so this process should be used only in exceptional circumstances.
Additional Information
See also:
MSD Policy 6, Solicitation of Bids and Quotations
MSD Policy 11, Emergency or "Pressing Need" Purchases
MSD Appendix 2, Justification Memorandum
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