RF Procurement Policy

Effective Date:

January 14, 2016

Supersedes:

Bids and Proposals Policy

Policy Review Date:

July 2017

Issuing Authority:

Research Foundation President

Responsible Party:

Chief Financial Officer

Contact Information:

518-434-7050

rffinance@rfsuny.org

Reason for Policy

The purpose of the Research Foundation for The State University of New York ("Research Foundation" or "RF") Procurement Policy is to promote open and free competition in procurement transactions to the maximum extent practical, so that procurements are priced competitively and meet the technical, programmatic, and/or performance requirements of the purchase. The RF has elected to accept the grace period for implementing the new procurement standards in the OMB Uniform Guidance as codified in 2 CFR Part 200. This policy is in compliance with OMB Circular A-110. The new procurement standards will be implemented by the RF to be effective on July 1, 2018.

The policy governs all procurement transactions made by all RF operating locations and the RF central office, whether the purchases are made using Unrestricted Funds or funds from a sponsored program or contract.

Statement of Policy

All purchases require selection of vendors, suppliers, products, or services that meet the RF’s technical, programmatic, or performance requirements for the goods and services and that are reasonably priced.

Suppliers that develop or draft specifications, requirements, statements of work, or requests for bids or proposals for a procurement must be excluded from competing in any resulting procurement.

Any and all bids or offers may be rejected when it is in the Research Foundation's best interest to do so.

When Bids and Proposals are Not Required

Competitive bids or proposals are not required for the following procurements:

  1. Purchases made under contracts with the State of New York, Consortiums, or through campus central stores or Service Centers.
  2. Purchases up to $200,000 from certified small, minority, or women-owned businesses.
  3. Purchases that qualify as a Sole Source procurement because the product or service procured is unique to one source or the requirements for the product or service can only be met by one supplier or contractor.
  4. Purchases that qualify as Single Source procurement because of limited circumstances that justify procurement without open competition.

Documentation Requirements for Single/Sole Source Procurements

All Single or Sole Source procurements require documentation of solicitation elements that includes a clear and accurate description of the technical and programmatic requirements for the material, product, or services being procured. The RF Single/Sole Source Form or campus equivalent form must be used to document all single or sole source procurements prior to the date of the initial purchase, except as otherwise specified in this policy.

When Bids and Proposals are Required

For all other procurements not identified above, solicitations of bids or proposals are required as follows: The "Total Purchase Amount" must be based on the reasonably expected aggregate total dollar amount of the purchase of the specified goods or services from the specified vendor or supplier within a twelve (12) month period commencing on the date of purchase. If the procurement is reasonably expected to continue longer than 12 months the Total Purchase Amount must be based on the reasonably expected value as specified in the agreement with the vendor or supplier. The expected purchases must not be artificially divided, and unjustified single/sole source procurement must not be used for the purpose of circumventing the thresholds for required solicitation of bids.

Total Purchase Amount

Requirement for Solicitations of Bids or Proposals

up to $50,000

No requirement for solicitations of bids or proposals. When the same suppliers are used repeatedly or on an ongoing basis for various procurements within this range, pricing and quality of the goods and services must be reviewed periodically and the results maintained in a supplier procurement file.

$50,000 to $100,000

Solicitation of bids or proposals required, and procurement requires selection from a minimum of three written or verbal quotes.

over $100,000

Solicitation of written bids or proposals required, and procurement requires selection from a minimum of three written bids or proposals.

The competitive bid process or the Single/Sole Source justification related to procurement is limited to the period defined by the agreement with the vendor including any agreed-upon extensions or options for extensions or renewals. If a change to or renewal, extension, or continuation of a procurement that was not competitively bid would result in an actual aggregate expenditure that exceeds the thresholds for required solicitation of bids, it must be approved by an RF Officer or operations manager after a Single/Sole Source justification documenting that the failure to determine the reasonably expected aggregate amount on the date of initial purchase was reasonable and justified.

Vendor Solicitation Requirements

Solicitations of bids for purchases of goods and services under sponsored grants subject to Office of Management and Budget Circular A-110 must comply with A-110 Requirements. Prior to issuance of a purchase order or establishment of a commitment with suppliers selected for purchases or services in excess of the small purchase threshold under 41 U.S.C. 403 (11) (currently $100,000) on a federal project, the Research Foundation must receive vendor certification that they are not debarred, suspended, ineligible, or voluntarily excluded from participating in federal non-procurement transactions.

The vendor solicitation process must be documented, and vendor solicitations must be retained in the files for procurements exceeding the small purchase threshold. Refer to "Documentation for Purchasing and Payment Activities Procedures" for more information.

All transactions and activities related to purchasing goods or services from a supplier must comply with the Research Foundation "Conflict of Interest Policy." All purchases of goods or services from Unrestricted Funds must comply with the Research Foundation Unrestricted Fund Expense Policy.

Some form of cost or price analysis must be made and documented in the procurement files for all purchases. Price analysis may be accomplished in various ways including the comparison of price quotations submitted, market prices, or similar assessments.

The RF must make positive efforts to utilize small businesses, minority-owned firms, and women's business enterprises, whenever possible, and must comply with OMB Circular A-110 and the terms of any grant or contract with sponsor and must comply with Federal Acquisition Regulation (FAR) requirements when subcontracting with suppliers from labor surplus areas, small businesses, and small disadvantaged business concerns.

Files(s) containing supplier (vendor) and purchasing documentation must be maintained at RF operating locations and be made available upon request in accordance with Office of Management and Budget Circular A-110 and any applicable disclosure requirements of sponsors

Responsibilities

The following table outlines the responsibilities for compliance with this policy:

Responsible Party

Responsibility

Office of Record

Each operating location Office of Record is responsible for the development and maintenance of documentation

Every individual who initiates, processes, reviews, approves or records financial transactions on behalf of the RF.

Responsible for administering this Policy.

Outside parties

Outside parties who supply goods or services to the RF or bid on solicitations from the RF are responsible for compliance with applicable portions of this policy.

Operations Managers or designee

Responsible for oversight and management of implementation of this Policy at Operating Locations

Definitions

Circular A-110: Office of Management and Budget (OMB) Circular A-110

Federal Acquisition Regulations: Regulations set out at 48 CFR1 or at http://www.arnet.gov/far/.

Consortiums: Purchasing groups that collaborate on procurement opportunities resulting in lower purchase price of goods and services by aggregating the purchase power of members.

Sealed bid or proposal: A supplier's written statement of a price and any other information requested, in response to a solicitation for a bid or proposal, that is received in a sealed envelope, then opened and evaluated by the RF in a meeting.

Service Centers: Operating unit(s) within the institution (SUNY or RF) that provide a service or group of services or products or group of products to users – principally within the institution for a fee.

Verbal Bid or Proposal: A supplier's oral statement of price and any other information requested, made in person or on the telephone, in response to an RF solicitation for a bid or proposal.

Written Bid or Proposal: A supplier's written statement of price and any other information requested, in response to an RF solicitation for a bid or proposal.

Related Information

Documentation Guidelines for Purchasing and Payment Activities

Excerpts of Unallowable Costs

Forms

RF Single/Sole Source Form

Change History

Date

Summary of Change

October 24, 2016

Updated pursuant to OMB extension.

December 26, 2014

Updated to note that the RF has elected to accept the one year grace period for implementing the OMB Uniform Guidance procurement standards as codified in 2 CFR Part 200.

December 7, 2012

Changed policy name to "RF Procurement Policy", strengthened sole source documentation requirements and clarified when sole sourcing can be used. Effective 3/15/2013

December 2, 2003

Updated to reference New York State Executive Order 127 (Disclosure for Procurement Contracts Policy) documentation requirements and clarified when sole sourcing can be used.

 

 

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