|Note:||At the request of the provost, a vice provost, or a vice president, this policy has been posted in the interim between scheduled posting dates by University Policy Manuals Group because it has significant and urgent importance for the university community. This policy will be included in the publication process by the next feasible posting for online policies and procedures.|
PUR 502–03: Award of Contract for Goods and Services
To define the basis of awarding contracts for goods and services
Arizona Board of Regents Policy Manual - 3-803
Contracts shall be awarded to the lowest responsible and responsive bidder whose bid conforms in all material respects to the requirements and criteria set forth in the ITB. Tax levied by any political subdivision of the state is not to be considered as a factor in determining the low bidder. Prompt payment discounts (“cash discounts”) will normally not be considered in determining the lowest bidder unless specified in the bid invitation, and then only if the cash discount period is 15 days or longer.
In case of a tie for low cost, the award will be made by drawing lots. At least one witness in addition to the buyer will be present when lots are drawn, and the results will be recorded and included in the contract file.
The contract shall be awarded to the responsible proposer whose proposal is the most advantageous to the university, taking into consideration the evaluation factors set forth in the RFP. No other factors or criteria may be used in the evaluation. Numerical weighting may be assigned to specific criteria but is not required. Price will be a factor, but the award will not necessarily be made to the proposer offering the lowest price.
The lowest cost in either bids or proposals may be measured as life-cycle cost and takes into consideration transportation costs, energy costs, ownership costs, inspection costs, administration costs, opportunity costs, and other costs.
The chief procurement officer of Purchasing and Business Services may authorize a contract award to more than one supplier when it is in the interest of the university to have more than one source of supply for particular goods or services, or when a single supplier cannot provide all of the university’s requirements in a timely manner.
It may be in the university’s interest to make a multiple award to ensure a supply of critical goods or services, to reduce acquisition costs, or to increase the university’s business activity with small disadvantaged businesses.
While multiple awards are possible, the preferred procedure is to make a single award for each commodity or category of commodity.
The award of contract for purchases not exceeding $100,000 in total cost shall be made to the supplier that satisfies the university’s requirements for quality, delivery, and price. As a general practice the award will be made to the supplier offering materials or service at the lowest cost to the university. However, the chief procurement officer may authorize a contract award to a small disadvantaged business if the supplier demonstrates the ability to satisfy quality and delivery requirements at a cost that is competitive.
The chief procurement officer may authorize a negotiated purchase not exceeding $50,000 in total cost.
Certain items are normally purchased through a negotiation rather than through a competitive solicitation. Examples include but are not limited to used vehicles, used aircraft, and used scientific equipment. Upon request of the chief procurement officer, any individual authorized to sign a Request for Waiver of Bidding Requirements form may authorize a negotiated procurement for transactions of $100,000 or more.
For more information on the award of contracts to small businesses and small disadvantaged businesses, see PUR 503–01, “Small Business and Small Disadvantaged Business Program.”