301 - Competitive Thresholds
Procurement Services 301: Competitive Thresholds
Purpose
To provide information on competitive bidding requirements so departments can appropriately plan purchases.
Reference
University of Alaska Procurement Manual (not available online)
Definitions
Competitive Bidding: The process of requesting price quotations on an item or service.
Policy
Competitive Requirements
Alaska statutes and university procurement regulations require that purchases in excess
of $5,000 be competed to ensure that the university is getting the best value as it
procures goods and services to support its mission. The process includes, written
or verbal specifications submitted to potential vendors or contractors requesting
them to submit pricing via an informal quote or proposal for goods or non-personal
services with a value of $5,001 to $50,000; or a formal bid or request for proposal
for goods, non-personal or professional services over $50,000.
A university procurement officer will formulate the specifications and/or scope of
work in the documents based on the information provided by the department on the requisition,
in supporting materials or in verbal communication. Vendors are generally given a
standard amount of time to respond to university solicitations. However, sometimes
changes to the original quote, bid or proposal are necessary and an amendment is prepared.
An amendment will usually provide the vendors additional time to respond to the new
terms of the solicitation. Because of the possibility of changes, be sure to plan
ahead for larger dollar purchases as they often take much longer than smaller purchases.
Exemptions from Formal Competition There are items and services that are, by their nature and of necessity, exempt from
competitive procedures. Nevertheless, all exempt purchases are subject to a standard
of price reasonableness. Examples of exempt items and services include awards, institutional
memberships, art acquisitions, subscriptions, publications, speakers and performers.
Effective: 10/25/2005
The following table shows the form of competition required depending on the type of purchase and the dollar amount.
|
Goods and Non-Personal Services |
|
|
AMOUNT OF PURCHASE ORDER OR |
REQUIRED PROCUREMENT ACTION |
|
$0 to $5000 |
No required competition. Purchases made |
|
$5001 to $50,000 |
For goods: Competition through a request |
|
Over $50,000 |
For goods and non-personal services: |
|
Professional Services |
|
|
AMOUNT OF PURCHASE ORDER OR |
REQUIRED PROCUREMENT ACTION |
|
$0 to $50,000 |
No required competition. Purchases made |
|
Over $50,000 |
Formal solicitation through a request for |