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Procurement Services - Supplier Selection, Competition, Awards, and Debriefings


Policy

Subject Area: Procurement Services
Policy Title: Supplier Selection, Competition, Awards, and Debriefings
Policy / Procedure No: PUR002
Responsible Office: Procurement Services

PURPOSE: To establish the policy for selection criteria used in making business awards.

DEFINITIONS:

  • Award Justification: An explanation of the rationale for a business-award recommendation.
  • Bid Summary: A summary of competitive bids solicited for a business transaction.
  • Business Award: Entering into a legally binding business relationship with an external supplier. The commitment to do business may occur by issuing a purchase order or by executing a contract. Refer to Procurement Services policy PUR001.
  • Debriefing: Process of informing unsuccessful bidders of the outcome of competitive bidding.

    SCOPE: Applies to all Northeastern University employees.

    POLICY:

    1. Competitive bidding is required for any requisition exceeding $3,000. Written quotations are required for transactions exceeding $3,000.

    2. The competitive bid requirement may be waived under certain circumstances -- e.g., for a vendor who is the sole source, contract supplier, single approved source, only supplier that can meet deadline. The circumstances must be described in the award justification.

    3. Requisitions over the $3,000. bid threshold must include a bid summary and an award justification. Providing a bid summary and award justification is optional for transactions under $3,000.

    4. Purchasing decisions are not based solely on price. The total cost of ownership is considered when making a decision to do business. Criteria in determining total cost of ownership includes:

    1. quality
    2. supplier reliability and financial strength
    3. warranties
    4. ability to meet/satisfy schedules
    5. management depth
    6. pricing

    5. Requisitioners may make purchase recommendations, but the authority to make a business award resides with Procurement Services.

    6. Vendor requests for debriefings may be granted. Unsuccessful bidders can be advised of weaknesses / deficiencies of their proposals. Under no circumstances may any pricing information (dollars and/or percentages) be provided. Debriefings should only be conducted by Procurement Services personnel.