Making a Purchase
Departments are required to adhere to the following bidding thresholds:
Informal Competitive Process
Purchases with a total cost under $50,000 can be obtained through an informal competitive process by obtaining (unless explicitly identified each purchase request must be submitted via a requisition).
Purchases up to $1,000 – The University does not require the issuance of a purchase order for purchases up to $1,000 in total. These purchases can be made as a Direct Buy via the Payment Request Form.
Purchases between $1,001 – $10,000 – Purchases between $1,001 – $10,000 – The University requires the submission of one (1) quote obtained from a qualified source.
Purchases between $10,001 – $25,000 – The University requires the submission of two (2) quotes obtained from a qualified source.
Purchases between $25,001 – $49,999 – The University requires the submission of three (3) quotes from a qualified source.
Formal Competitive Process
Purchases of goods and services in excess of $50,000 shall be obtained through a formal competitive process unless otherwise exempt. The Director of Procurement Services will determine the competitive process to be used. Invitation to Bid (ITB), Invitation to Negotiate (ITN), and Request for Proposals (RFP) are the formal competitive processes. In collaboration with departments, Procurement Services will prepare formal bid documents and make recommendations for awards.
Frequency, term limits – Purchases of goods and services that are reoccurring may be solicited on a multiyear basis provided that the specification/scope of work remains constant from year to year. Solicitations beyond first year should be optional with a maximum term length of 36 months unless otherwise approved by the Purchasing department.
Repetitive Purchases – Procurement Services will conduct periodic audits to identify these scenarios and coordinate with the department to conduct such bidding process as needed.
Sole source – In cases where a purchase valued above $5,000 cannot be competitively bid, it is necessary that a Sole Source Justification be attached to the purchase requisition when it is submitted to Purchasing. A supplier is considered a Sole Source in cases where only one product can meet the specification described by the requisitioner and only one supplier can provide that product nor does a viable substitute exist for that product. A Sole Source Justification should include sufficient detail to fully defend the position that a substitution of product or supplier is not possible.
Emergency – In cases of emergency, solicitation of competitive quotes may be waived when the doing so thereof causes delay that adversely affects the health, safety or welfare of the University’s students, faculty/staff, property or community. The Purchasing Department shall be noted immediately and the authorization to proceed shall reside with the individual’s respective Vice President or designee.
Waivers – IT Renewals, Entertainment, Speakers, Timing/Service
In some cases, conducting a bid process is neither feasible nor practical. The following are examples of goods/services where the bidding requirements may be waived, subject to the approval of the Purchasing department:
- Software agreements – Renewal of software licensing or maintenance agreements when the annual projected cost was considered during the initial purchase of said software or procurement of alternatives would necessitate a change in previously purchased software that is not cost effective.
- Time Sensitive – Waiveable only to the extent that the delay thereof would cause unnecessary costs or lack of service to students.
- Government entities
- Continuation of Services – Waiveable only to the extent whereby continued work is contingent on prior work completed.
Out of pocket Expenses – Materials and/or supplies needed for office spaces / classrooms / labs and other business purposes must be obtained using either the procurement card, paid by a requisition, or a payment request form. Items must be purchased through the department using the university’s procurement process. Supplies are not to be individually purchased unless pre-approval has been obtained.
All bid waivers are subject to the review and approval of Procurement Services.
OTHER PURCHASING MECHANISMS
The University is authorized to purchase goods and services utilizing the following cooperative purchase agreements and organizations:
- NJ State Contract
- Federal Government – General Services Administration
- NJ Higher Education Purchasing Association
- Association of Independent Colleges and Universities in New Jersey
- Coalition for Cost Savings
- US Communities
- E&I Cooperative
- National Joint Powers Alliance
For assistance utilizing these contracts, including availability of goods/services, pricing, terms, etc., please contact the Purchasing department.
When purchasing under any of these contracts or cooperative purchasing groups, vendors must reference on their quote or departments in their requisitions a contract number or other identifier related to the applicable mechanism.
All purchases of goods and services under these contracts and/or cooperative purchasing groups are subject to review and approval of the Purchasing Department.