The Tulane Procurement Policy adopted in April 2024 specifies that all requisitions:
- less than $5000 require one informal quote
- between $5000-$9999 require one written quote (can be from a small business)
- between $10,000-$24,999 require two written quotes (one from a Small Business if applicable)
- for $25,000 or more require 3 quotes (one from a Small Business if applicable)
Purchasing will return, unapproved, any requisition that does not adhere to the new Tulane Procurement Policy. Returned requisitions can be resubmitted with proper documentation for Tulane compliance.
If competition is impractical or if substitutions are not acceptable, then an approved sole source justification letter stating why no other suppliers were considered is required. Please attach a valid sole source justification letter to the requisition. Sole source justification letters must be dated and attributed. Note that a sole source justification is not an explanation of why the purchase is necessary, but rather a justification for considering only a single source for the purchase and why no competitive quotes were sought.
In addition, for grant funded requisitions the university needs to show that the selected supplier is not excluded or barred from participation in government procurements. A firm's status regarding government grant spending can be checked at http://SAM.gov.
The quotes or justification must be provided, and SAM.gov status must be verified as part of the requisition approval process before final approval can be given and a PO issued.
Competitive Written Quotes
Competitive quotes must be solicited from the identified suppliers based on a clear and accurate description of the requirements for the material, product or services to be procured. As much as practical, quotes should be for comparable goods and services so a direct comparison can be made.
Purchasing Buyers can assist in soliciting quotes, or, if necessary, facilitate a formal bid process. Direct participation by the requester and other departmental or organizational personnel will be necessary to determine requirements and solicit quotes/bids.
The final selection of a supplier need not be based solely on price. Other factors can be considered, but the rationale for the final decision must be documented and included with the requisition.
Sole Source Justification
If the requested goods or services can only be obtained from a single supplier, this is referred to as "sole source." Sole source does not mean that a particular supplier is preferred, but that the goods or services cannot be obtained from any other source. Sole source designation may be applicable in the instances listed below. This list may not be all inclusive:
- Property or services can be obtained only from one firm or individual
- Competitive bidding is precluded because of the existence of patent rights, copyrights, secret processes, control of raw materials or similar circumstances
- Procurement of electric power or energy, gas, water, or other utility services where it would no be practical to allow other suppliers to provide such services
- Procurement of technical services in connection with the assembly, installation, or servicing of equipment of a highly technical or specialized nature
- Procurement of parts or components to be used as replacements in support of equipment specifically designed by a particular manufacturer
- Procurement involves construction where a contractor is already at work on the site, and it would not be practical to engage another contractor
- Procurement where only a single vendor in a market has the capacity to provide and/or maintain the equipment being purchased
- Procurement of compatible additions to existing equipment where a differing manufacturer's equipment would be impractical for the specific need
- As necessary to meet physical design
- Procurements where specialized research services and data points should remain consistent, due to continued or prolonged sample testing. Often during multiyear grant award projects
- The requisitioned product will be made available to research participants by Tulane and there are legitimate ethical and/or operational reasons to utilize a specific product for the benefit of there search project or its participants
- To comply with the university's standards programs
- embodying specific characteristics essential to the proposed application not found in items of other manufacturer.
In determining whether a request meets sole source criteria, consider these questions:
- Does independent research through Internet searches or discussions with subject matter experts corroborate that the item is available only from a single source?
- Does the request demonstrate the uniqueness of items or services to be procured from the proposed contractor or supplier (e.g., compatibility or patent issues, etc.)? Does the request demonstrate and support how it determined that the item or service is only available from one source (e.g., market survey results, independent agency research, patented or proprietary system)?
- Does the request demonstrate a significant need for contractor’s expertise linked to the current project (e.g., knowledge of project management, responsiveness, experience of contractor personnel, and/or prior work on earlier phases of project)?
When applying for sole source consideration of a request, a full explanation or justification from the requisitioning department covering the reasons for such restriction is required. Note that sole source justification is not concerned with why it is necessary to procure a particular item or service. Instead, The justification must address the need to procure it from the specific supplier named in the requisition.
Summarize the full rationale for requesting that a supplier be considered the sole source for an order and compose as a sole source justification letter and attach to the requisition. In addition to the sole source rationale, the letter must also be dated and the justification attributed.
Government Grant Funding
For grant funded requisitions, Tulane must document that the selected supplier is not excluded or barred from participation in government procurements. Before submitting a grant funded requisition, the requester should check the firm's status regarding government grant spending at http://SAM.gov.
If a firm is excluded or barred form participation in government procurement, Tulane may not utilize the supplier for grand funded purchases and the requisition will be rejected.
After verifying status in SAM.gov, the Tulane Buyer will include a screen shot of the verification with the completed requisition.
For more detail of these and other Purchasing policies, please see the Tulane Purchasing Policy and Procedures Manual. (updated April 2, 2024)
