Purchasing and Business Services Manual (PUR)

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Effective: 7/1/1996

Revised: 11/1/2011

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PUR 305–02: Bidding Requirements for Procurements Costing at Least $25,000 but Less than $50,000

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Purpose

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To specify the extent of competition required for procurements costing at least $25,000 but less than $50,000

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Sources

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Arizona Board of Regents Policy Manual - 3-801.D.1., 3-803
University policy

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Applicability

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Procurements costing at least $25,000 but less than $50,000

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Policy

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Cost

Procurement requirements will not be divided artificially or fragmented into increments or components less than $25,000 to circumvent the applicable competitive bidding requirement. Requisitions for the same commodity from the same department within a short time period may be considered an artificial division of a procurement.

Estimated Cost

All procurements with an estimated cost of at least $25,000 but less than $50,000 per transaction shall be based on the informal bid process. Per ABOR 3-801.D.1, all procurement under $50,000 and under must be awarded to small businesses unless it is impracticable. At the discretion of the buyer, procurements of at least $25,000 but less than $50,000 may be based on the more formal competitive sealed bid or proposal process.


Competition

Procurements costing at least $25,000 but less than $50,000 will be made on the basis of informal, competitive bidding and may be solicited on the telephone, orally, or in writing. Informal bids need not be opened publicly. Price information received from any quotation will not be disclosed to the public until after award of the order.

Phone/Oral Quotations

When a department needs a quick turnaround, one or two specific items with an aggregate dollar value of less than $50,000 can be quoted verbally. The buyer must summarize each quotation on a telephone quotation sheet and attach it to the requisition.

Fax or E-Mail Quotations

Any order with an aggregate dollar value of less than $50,000 can be quoted informally by fax or e-mail. The buyer processes an informal fax sheet from the Purchasing LAN shared directory. The fax sheet includes complete specifications of all items to be quoted. Bids are solicited from at least three suppliers. Bid turnaround time is approximately one day to one week.


Purchasing Manager Approval

The buyer obtains approval of the respective purchasing manager if any of the following is true:

  1. The transaction is a sole source purchase.
  2. The buyer desires to place the order after only one quotation was received.
  3. No small businesses were solicited.
  4. The circumstances of the transaction make the informal bidding process unnecessary or contrary to the best interests of the university.

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Exceptions

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Sole source, emergency, and professional service procurements exempted by the Board of Regents, and design and construction-related consultant services that are selected in accordance with either PUR 402–02, “Professional Design Services Costing $250,000 or Less,” or PUR 402–03, “Professional Design Services Costing More than $250,000 and Construction Services.”

Additional exceptions to bidding requirements are explained in PUR 306–02, “Waiver of Bidding Requirements for Procurements Costing $50,000 or More.”

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Cross-References

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For related information on bidding, see:

  1. PUR 303–03, “Preparation of Specifications and Response Evaluation Criteria”
  2. PUR 305–01, “Bidding Requirements for Procurements Costing Less than $25,000”
  3. PUR 306–01, “Bidding Requirements for Procurements Costing $50,000 or More”
  4. PUR 306–02, “Waiver of Bidding Requirements for Procurements Costing $50,000 or More”
  5. PUR 501–01, “Information to Vendors”
  6. PUR 501–02, “Advertising for Bids”

    and

  7. PUR 501–03, “Bid Security and Performance and Payment Bonds.”

For related information on sole source and emergency procurements, see:

  1. PUR 303–02, “Sole Source Procurement/Justification”

    and

  2. PUR 307–01, “Emergency Orders.”

For information on Special Procurements, see the PUR 400 section.


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