Summary
Tulane purchase policy requires three competitive quotes for all requisitions for POs greater than $25,000. 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. Requisitions totaling more than $25,000 cannot be approved without either three competitive quotes OR an approved sole source justification letter.
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.
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.
Full Description
See section 5.0 of the Tulane Purchasing Policy and Procedures Manual.
For all requisitions for items or services totaling $25,000 or more, Tulane requires that either three competitive written quotes, or a valid sole source justification be provided. 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.
To reiterate, requisitions greater than $25,000 cannot be issued by Tulane unless these requirements are met: competitive written quotes, OR valid sole source justification, AND, for grant funding, verification of government grant spending status.
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.
Department of Materials Management 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.
Note that 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 simply preferred, but that the goods or services cannot be obtained from any other source. Sole source criteria include:
- Repair or replacement parts
- Supplementary components of the same manufacturers
- As necessary to meet physical design
- To comply with the University's standards programs
- Property or services can be obtained only from one source
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 does *not* address why it is necessary to procure a particular item or service, but rather why the request is being submitted without considering any other suppliers to provide the required goods or services.
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.
