2.4 Contracts

2.4.1 CONTRACTS AND COMPETITIVE BIDS

Administrative Responsibility: Associate Vice President for Business Services / Procurement

PURPOSE

Routine contracts for the purchase of supplies, equipment or the services of independent contractors requiring the expenditure of budgeted funds in excess of $25,000 shall be awarded on the basis of competitive bids. For further details on this requirement, please see Wayne State University Statutes 2.81.01.080 - Routine Contracts.

SCOPE

This Policy applies to all WSU employees and external contractors involved in the procurement of goods and services for the University, whether as an administrator within a Department or Unit, or the final end user of such goods and services. This policy includes acquisition both by the requisitioning / purchase order (PO) process and by Procard.

DEFINITIONS

The following are terms and definitions of some commonly used terms in contracting or competitive bidding:

Contracts	Any document between Wayne State University and an external entity for the sale of goods or services (i.e. construction contracts, research agreements, banquet agreements, and the University purchase order).
eCFR Code of Federal Regulations	The Electronic Code of Federal Regulations (e-CFR) is a regularly updated, unofficial editorial compilation of CFR material and Federal Register amendments produced by the National Archives and Records Administration's Office of the Federal Register (OFR) and the Government Printing Office. See APPM Policy 2.9 - Procurement-Standards-for-NIH-and-Other-Federal-Grants
Vendor or Supplier	A company or individual who provides goods and/or services to the University.
Request for Information (RFI)	This is a process initiated by Procurement when a need has been identified by a department for either goods or services, and it is necessary to obtain general budgetary information, seek industry specifications, or search the market place for potential sources of supply.
Request for Proposal (RFP)	This is a formal process initiated by Procurement when a need has been identified by a department for specialized goods or services. This process is used when a competitive bid for lowest dollar alone may not necessarily determine the best value for the University.
Request for Quotation (RFQ)	This is a formal bid request initiated by Procurement. This process is used when exact goods or specific services have been identified and the lowest bid (with acceptable delivery, finance terms and service after the sale) will be awarded the order.

POLICY

University purchase made with federal grant or contract funds must also comply with all standards set by the Federal Office of Planning and Management's Uniform Administrative Requirements, Cost Principles, & Audit Requirements for Federal Awards; Title 2, Subtitle A, Chapter II, Part 200 Procurement Standards Sections 200.317 through 200.326. Also see APPM Policy 2.9 - Procurement-Standards-for-NIH-and-Other-Federal-Grants)

The Request for Proposal and Request for Quotation processes are conducted by Procurement & Strategic Sourcing. Competitive bids are obtained by Procurement & Strategic Sourcing. Bids may be formal (sealed) or informal (facsimile transmission or e-mail), bids with the full understanding, on the part of the vendors, that confidentiality cannot be maintained and that meeting University deadlines cannot be guaranteed due to potential transmission delays.

The Request for Proposal (RFP) is a complex and lengthy process that is very effective in researching the market and obtaining best value for the University. The RFP process is typically used when seeking to obtain services; such as construction/renovation, elevator maintenance, property management, software acquisition, vending services, auditing services, etc.

The RFP process requires heavy involvement of the Requesting Department, PASS, and other end users. A calendar of events is established, and careful attention is given to all specifications and requirements. The RFP process may take one to two months or more to complete, depending on complexity, the availability of the units, the accuracy of the specifications, and the response of the participating vendors. It is imperative that Departments work closely with Procurement & Strategic Sourcing to ensure compliance with University policies and procedures.

Exceptions to the competitive bid requirement or request for proposal process may be granted in the following situations:

The Associate Vice President of PASS has the authority to grant exceptions as follows: purchases when there is only a single known source of supply; purchases where scientific or professional judgment require the use of specified goods or instruments; and in cases of emergency. If there is a legitimate reason to forgo a competitive bid, a written request must be submitted to the Associate Vice President of PASS for consideration.
The Vice President and Chief of Staff (CoS) and the CFO have the authority to grant exceptions for contracts with firms or independent contractors who offer specialized services and expertise in areas traditionally related to the needs of the operating units, such as auditors, consultants, executive search firms, etc., where a public bid would not be appropriate.

PROCEDURE

Responsibility	Action
Department	Determine if a request will be for $25,000 or more. If greater than $25,000, a competitive bid or Request for Proposal process is required. For all contracts that are to be signed by the PASS Director, Associate Vice President and/or CFO, the bid or Request for Proposal process is to be conducted by Procurement & Strategic Sourcing. The responsible department, college or division must provide all supporting documents. Exceptions to the bid policy may be granted under the following circumstances: Routine contracts for goods or services where there is a single source of supply, Scientific or professional judgment requires the purchase of specified goods or instruments, In case of an emergency; The requestor must document the necessity for an exception to bid in a "request for bid waiver" memorandum to the Associate Vice President of PASS. A bid waiver request form is available on the Procurement website. There are instances where the procurement of highly specialized professional services may not be appropriate for a competitive bid or the RFP process. In those cases, the requestor must document the circumstances in a request for bid waiver form to the CoS. The form should state the capabilities/reasons for selecting the person/organization, and any other facts to be considered in determining whether to waive the competitive bid requirement. This form must be approved by the head of the School/College/Division prior to submission to the CoS. If the conditions in points 2 or 3 above do not apply, contact Procurement & Strategic Sourcing to initiate the bid process or the Request for Proposal process.
Chief of Staff	Review request for bid waiver and approve or deny request. If denied, note denial on the form and return to department. If approved, sign the request for bid waiver and return to department.
PASS Department	Review all documents for appropriateness and completeness. Determine need for a competitive bid or RFP. Prepare documents and distribute to vendors; accept bids/proposals on the established due date, and analyze responses. If exception to bid was requested, review and approve or deny the request. If request is denied, notify department and initiate the competitive bid or RFP process. If the vendor is not in the WayneBuy or Banner data base, the buyer must complete a Vendor Action Request form. The Vendor is required to submit a signed IRS W-8 or W-9. All information must be verified by PASS before an order is issued. Any person who is an employee of the University cannot be a University Vendor without advance approval by the Board of Governors. Please note: If a Vendor fails to provide accurate information and/or the IRS forms, or if a potential conflict of interest exists, the order will be denied. Issue purchase order, as outlined in APPM 2.3 the Purchase Order Process.

APPENDICES

N / A

RELATED UNIVERSITY/BOARD POLICIES

2.81.01 Contract Awards

Effective Date: Prior to 2000

Revised Date: 6/18/2018

Reviewed Date: 6/18/2018

To be reviewed, at minimum, every three years and/or revised as needed by: Associate Vice President for Business Services / Procurement

Next Review By Date: 6/1/2021

SUPERSEDES POLICY

N / A

HISTORICAL DATES

04/04/2017, 05/01/2016, 01/01/2013, 04/01/2012, 09/01/2010, 08/01/2009

Policies and Procedures

APPM Administrative Policies and Procedures Manual