Policies and Procedures

The Board of Regents requires all contracts for purchasing Goods and Services and other specific contracts to be processed through University Procurement unless, because of the contract’s peculiar nature or value, the contract is specifically exempt. Processing includes routing the requisitions to receive the appropriate approvals, ensuring reasonableness and fairness of price, legal review, negotiations, and other procurement-related activities.

Timing. Depending on complexity (cost, type, availability, negotiations, etc.), departments should expect processing to take up to 30 days or more. Departments should consider this timeframe when planning projects, needs, and making other purchasing decisions.

This document contains information about the Board of Regents of the University of Oklahoma Credit, Loans, and other Financial Requirements.

Link to Financial Requirements

Acquisition Hierarchy for Goods and Services. The purchase of Goods or Services must follow the University’s acquisition hierarchy. This means that each of the following procurement vehicles shall be used in this order unless the Supplier does not have the needed Good or Service or cannot meet certain other requirements. Departments and employees may not use PCards, travel cards, or other funding sources to circumvent this hierarchy. In most instances, Goods and Services provided by mandatory University-wide contracts, consortium agreements, and statewide contracts are available in the OU Marketplace under the same terms and conditions.

·       Auxiliary Enterprises and Service Units

·       OU Marketplace

·       Mandatory University-wide contracts

·       Consortium or cooperative agreements entered by the University

·       Statewide contracts entered by Oklahoma’s Office of Management and Enterprise Services (“OMES”) through a competitive bid for which the University qualifies

·       Open market acquisitions

Acquisition Hierarchy Flowchart

University Auxiliary Enterprises and Service Units (“Auxiliary Enterprises”) provide Goods and Services to University departments and third parties. The Board of Regents prohibits University departments from acquiring Goods and Services provided by Auxiliary Enterprises from third parties without obtaining the Auxiliary Enterprises’ permission.

1.      Auxiliary Enterprises and Service Units Defined. An auxiliary enterprise is an entity that furnishes goods or services to students, faculty, or staff, and that charges a fee directly related to, although not necessarily equal, the cost of the goods or services.  

2.     University Auxiliary Enterprises. The University considers the departments set forth in Table 1 as Auxiliary Enterprises.  This list, however, is not exhaustive.

3.     Auxiliary Enterprises Policies. This policy does not alter, amend, or change any policy implemented by an Auxiliary Enterprise relating to providing goods and services to departments, including pricing, scheduling, justification requirements, and exceptions. Accordingly, Auxiliary Enterprises, at their discretion, may exclude certain Goods or Services from this requirement or impose additional requirements on the department. Departments should contact the Auxiliary Enterprises to determine whether any such policies, exceptions, or requirements exist.

4.     Responsibilities. Departments are responsible for obtaining permission from an Auxiliary Enterprise to acquire a Good or Service from a third party. Departments must provide documentation demonstrating the grant of permission or otherwise attest in writing that such permission was given. 

5.     Procurement Processing. Failure to provide documentation from an Auxiliary Enterprise will delay processing the department’s requisition. If a department fails to provide adequate documentation concerning the grant of permission from the Auxiliary Enterprise, University Procurement may request the department provide additional information, contact the Auxiliary Enterprise, or deny the requisition. 

A fair and reasonable price means the cost or price charged for a good or service is fair to the University and supplier. There are seven ways to demonstrate the cost or price of a good or service is fair and reasonable.

• Compare proposed prices received in response to the solicitation. Adequate price competition establishes price reasonableness. This is the most commonly used method.
• Compare previously proposed prices and previous University and commercial contract prices with current proposed prices for like items. The comparison’s validity and the reasonableness of the previous price(s) must be established. Previous University contracts cannot be older than three years.
• Use parametric estimating methods/application of rough yardsticks to highlight significant inconsistencies that warrant additional pricing inquiry. Comparing the proposed price per square foot for a certain type of building construction against an established commercial standard is an example of this technique.
• Compare competitive published price lists, published market prices of commodities, similar indexes, and discount or rebate arrangements. The University can seek discounts from published price lists based on volume buying.
• Compare proposed prices with independent University cost estimates. A contractor-developed cost estimate may not be used in place of a University cost estimate.
• Compare proposed prices with prices obtained through market research for the same or similar items. Trade journals, newspapers, and economic indexes can provide useful comparative information.
• Analysis of pricing information provided by the offeror. This “catch-all” category includes information that does not fall into the other categories. It cannot be the sole basis for determining fair and reasonable costs.

The first two methods are preferred. However, if there is a lack of adequate price competition (first technique) or insufficient information from the previous contract to determine a price to be fair and reasonable (second technique), the employee must use one or more other techniques appropriate to the circumstance.

University employees cannot execute a contract or bind the University without appropriate authority. The Board of Regents grants the President the power to delegate signature authority to appropriate University executives, officers, directors, and employees. Only those delegated this authority may enter contracts or bind the University. Any University employee executing a contract without such authority may face disciplinary action and be individually liable for any damages, losses, or other costs associated with binding the University without proper authority.

Signature authority is limited to amounts and types of contracts and cannot be delegated to another employee. For example, an employee may only be authorized to execute contracts less than $50,000, while another employee can only execute contracts with no direct financial cost, like some academic affiliation agreements.

The Administration and Finance Office maintains an updated list of employees with signature authority. If questions arise concerning the existence or extent of an employee’s authority, please contact the Assistant to the Chief Financial Officer or the Office of Legal Counsel.

Contracts specifically requiring processing by Procurement include:

• Any purchase above $5,000
• Any purchases involving a contractual document of any kind, or if it is a type of product or service that reasonably involves a contractual document
• Leases and the acquisition or disposition of real property
• Acquiring or disposing of surplus property
• Use licenses for software and technology or those that affect the University’s intellectual property
• Service contracts
• Purchases involving radioactivity, laboratory, space maintenance, and minor construction
• Purchases involving any other special product or service that requires prior approval from a University department with special responsibility and authority over such product or service
• Air charter services and travel
• All other contracts requiring Board approval or signature not otherwise exempted from Procurement processing

Exceptions. Because of their unique nature or value, certain purchases or contracts do not require processing by University Procurement. Other than processing, exempt purchases remain subject to the same requirements for competition, review, approval, and pricing. Departments must provide University Procurement with a final copy of any contract exempted from the processing for storage, cataloging, and retention purposes.

This processing exemption only applies to the below contracts. Whether such a contract is exempt shall be determined by the Associate Vice President of Procurement or designee, in consultation with the Office of Legal Counsel and the executive officer of the department responsible for the contract.

• Purchases by University departments from University Auxiliary Enterprises, Service Units, or other University units engaged in the resale of products or services in accordance with their mission
• Purchases up to $50,000 of legal, medical, accounting, consulting, architectural, engineering, interior design, appraisal, landscape design, real estate agency, or similar professional services, only when such services are ordered by executive-level officers of the University pursuant to University-wide matters of importance, and only when such services represent discrete short-term engagements with specific terminal objectives.
• Employment Agreements, Settlement Agreements, or other agreements necessary to maintain or protect a recognized privilege
• If governed by a separate policy, individual travel costs (airfare, hotel, ground transportation, conference registrations, etc.) by employees attending conferences, seminars, and other similar events while on official University business
• Architectural, engineering, construction, design consultants, and construction Management services related to major real property construction and renovation of University capital assets
• Purchases of goods or services between University departments food services, printing services, and maintenance and repair of working spaces
• The sale of University goods and services for compensation, not including surplus property
• Such other purchases as may be identified by University policy or as approved by the Board

The Office of Legal Counsel must review all contracts to ensure that certain legal limitations are not waived, ignored, or otherwise abridged and to avoid obligating the University to any terms or conditions that may conflict with the State Constitution, statutes, or case law, and avoids binding the University to any duties or liabilities against its best interests. This legal review occurs during procurement processing.

As a steward of state and taxpayer resources, the University requires that goods and services be acquired through competition. An open, competitive process ensures fair and equitable treatment of potential suppliers, avoids conflicts of interests, increases the value to the University, protects against fraud, waste, or misuse, and builds trust and confidence in University processes.

There are two types of competition. The first type of competition (informal competition) is the effort by one or more suppliers to obtain business from the public, and prices are generally made publicly available and driven by markets, buyers, and sellers. The second type of competition (formal competition) is the formal process of soliciting bids, quotes, and other proposals and comparing them to each other to identify the supplier(s) offering a good or service that provides the best overall value to the University. Formal competition requires following the University’s solicitation policies, including, but not limited to public notices, submission of proposals, sealed bids, bid evaluations, and other processes ensuring contracts are awarded openly and competitively. The University considers any contracts established by cooperative associations and state and federal entities that meet the criteria for formal competition as openly and competitively bid.

The University relies on three solicitation methods: informal, formal, and non-competitive. Each method of solicitation is outlined in policy with its requirements and conditions. Regardless of the method of solicitation, all costs or prices of goods and services must be fair and reasonable.

1.    Competition Required. It is the Board’s policy to acquire goods and services through a competitive selection process that is fair, open, and objective to achieve optimum value and quality and serve the best interest of the University and the public. An open, competitive process ensures fair and equitable treatment of potential suppliers, avoids conflicts of interest, increases the value to the University, protects against fraud, waste, or misuse, and builds trust and confidence in University processes.   Competition can be conducted through a formal or informal process. This policy outlines the process for informal competition.

2.     Informal Competition. To reduce administrative burdens and acquire goods and services more efficiently, goods or services can be acquired by informal competition as set forth below. Regardless of price, if a good or service is available in the OU Marketplace or from an existing University, cooperative, or statewide contract, the department must purchase the good or service from that source.

3.     Informal Competition Requirements. The acquisition of goods or services through informal competition must include the following:

3.1.          Description. A written description of the type of goods, services, or work the Supplier will provide, including expected deliverables, timelines, quantities, and other related information. 

3.2.         Quotes. Obtain the quotes required by the acquisition amount as set forth above. A quote can include an email from the Supplier, an official quote on the Supplier’s letterhead, website snapshots, facsimile, or telephone.

3.2.1.     Quotes Exceeding Threshold Amounts. If at least half of the quotes exceed an Acquisition Amount threshold, the requirements of the next Acquisitions Amount threshold apply. For example, if the employee reasonably believes the purchase of a good is less than $25,000 but receives a quote exceeding $25,000, the department must obtain an additional quote. Similarly, if the employee reasonably believes the acquisition of services is less than $150,000 but receives two quotes for more than $150,000, the service must be acquired through formal competition.

3.2.2.     Fair and Reasonable. All prices quoted to the University must be fair and reasonable as defined by University policy. 

3.3.         Documentation. Quotes should be documented on the Informal Competition Worksheet and provide copies of all quotes, product descriptions, correspondence, and other information obtained or provided by the Supplier.

4.      Processing. The department shall submit all quotes and other information to University Procurement via a requisition in PeopleSoft. University Procurement shall review the sufficiency of quotes, conduct additional market research, obtain additional quotes, evaluation criteria and scores, and any other necessary steps to ensure the acquisition satisfies University procurement policies. If University Procurement determines that the requirements in Section 3 or as otherwise set forth in this policy have not been met, including the fairness or reasonableness of price, availability under an existing contract, or other requirements, the department shall be advised of the deficiency, which shall be corrected or remedied before proceeding with an acquisition.  

5.     Supplier Selection. The University shall select only the Supplier(s) offering the Lowest and Best value to the University. Lowest and Best does not mean the lowest cost or price. In determining the Lowest and Best, the department shall treat each Supplier equally and fairly.   

5.1.          Lowest and Best Defined. “Lowest and Best” means the offer that is most advantageous in all material respects to the University’s requirements and is determined by multiple factors, including, but not limited to, price, skill, business practices, previous work record, experience, financial resources, quality of materials, facilities, personnel, service reputation, and ability to comply with state, federal, and local laws.

5.2.         Selections to Other than Lowest Cost. If the Supplier that is not the lowest price is selected, the bases justifying the selection shall be documented and retained for the duration of the resulting contract or as required by law. Personal or professional preference cannot serve as a justification.

5.3.         Risk. Supplier risk shall be assessed in accordance with University policy.

5.4.         Rejection of Supplier. The Associate Vice President of Procurement (or designee) reserves the right to reject a Supplier(s) if the quotes are unreasonable, do not meet the University’s needs, exceed funding, or awarding the Solicitation to the Supplier(s) violates University policy or is not in the University’s best interest. In such an instance, the decision will be documented.

6.     Approval, Authorization, Reporting. Other than the requirements outlined in this Policy, all acquisitions made through informal competition remain subject to other University policies, including, but not limited to, conflicts of interest, review, approval, reporting, and monitoring.   

The University requires formal competition for the purchase of Goods or Services over   $150,000.  Formal competition includes two methods of Solicitation - (i) Invitation to Bid and (ii) Competitive Proposals.

1.                Definitions. Capitalized terms used in this Formal Competition Policy shall have the same meaning as defined below and as set forth at Policies and Procedures (ou.edu). 

1.1.           “Bid” means a Bidder’s response to a Solicitation.

1.2.           “Bidder” means a Supplier that has submitted a response to a Solicitation. Bidder shall also include potential Bidders. 

1.3.           “Competitive Proposal” shall have the meaning as defined in Section 4

1.4.           “Invitation to Bid” or “ITB” shall have the meaning as defined in Section 3

1.5.           “Lowest and Best Bidder” means the Bidder(s), based on the evaluation criteria, determined to be the most responsive, responsible, and advantageous Bidder whose Bid conforms in all material respects to the requirements and criteria in Solicitation including, but not limited, price, skill, business practices, previous work record, experience, financial resources, quality of materials, facilities, personnel, service reputation, and ability to comply with state, federal, and local laws. Bidders failing to provide the required information or proof of insurance shall not be considered the lowest and best.

1.6.           “Non-Responsive Bid” shall have the meaning as defined in Section 6.8.

1.7.           “Requests for Proposal” or “RFP” shall mean Competitive Proposal.

1.8.           “Responsive Bid” means a Bid that complies with Bidding instructions, accepts terms and conditions, and satisfies other non-evaluative requirements set forth in the Solicitation.

1.9.           “Solicitation” means an Invitation to Bid or a Competitive Proposal, as applicable.

1.10.        “Evaluation Team” shall have the meaning as defined in Section 2.

2.                Evaluation Team. After the need for a Good or Service is identified and a decision that procuring the Good or Service through Formal Competition is required or in the best interest of the University, an Evaluation Team shall be established.  The Evaluation Team shall consist of (i) representatives from the department seeking to obtain the Good or Service, (ii) a Contract Specialist, (iii) subject-matter experts (IT, Financial Services, Facilities, etc.), (iv) key users, and (v) other employees capable of assisting the University in preparing and evaluating the subject of the Solicitation.  See Appendix A for additional information on the Evaluation Team.

3.                Invitations for Bids.  The University uses an Invitation to Bid (“ITB”) (sometimes referred to as a Request for Quote or Request for Bid) when a department seeks to procure a specific Good or Service, including the type and amount, on the basis of a fixed or uniform rate.  The University issues ITBs to Bidders to obtain specific information about pricing, costs, delivery, and related information for the particular Good or Service. Because an ITB does not include negotiations with Bidders after the University receives and opens Bids, it must include a purchase description and all contractual terms and conditions applicable to the purchase.

4.                Competitive Proposals.  The University uses Competitive Proposals when an ITB is either not practicable or not advantageous. Competitive Proposals are used when there is a need to evaluate or compare Goods and Services based on the merits of responsive proposals, including, but not limited to, quality, function, price, and trade-offs between each, or when the primary consideration in determining the award may not include price.  Competitive Proposals allow the University and Bidders to clarify, change, or modify proposals after opening if adequate precautions are taken to treat each offeror fairly and to ensure that information gleaned from competing proposals is not disclosed to other Bidders.

4.1.           Request for Proposal. All Competitive Proposals shall be solicited through a Request for Proposal (“RFP”).

4.2.           Competitive Proposals Required for Specific Goods and Services.  The Associate Vice President may determine that specific categories of Goods and Services are not practicable or advantageous to procure through an Invitation to Bid, in which case such purchases shall be made by Competitive Proposal.

4.3.           RFP Content.  In addition to the content required for all Solicitations as set forth in Section 0, an RFP shall include a statement (a) that discussions or negotiations may be conducted with Bidders who submit proposals determined by the University to be reasonably susceptible to being selected for the award, but that proposals may be accepted without such discussions; and (b) of when and how price should be submitted.

5.      Solicitation Preparation and Content. A Solicitation must include, at a minimum:

5.1.           Other Information.  In addition to the minimum requirements, the University may include in the Solicitation other terms, conditions, language, or requirements as necessary to achieve the Solicitation’s purpose, satisfy legal obligations, or as determined to be in the University’s best interest. 

6.                Process and Requirements.  The following process and requirements apply to all Solicitations in addition to other processes or other requirements set forth in this Policy.

6.1.           Public Notice. The University shall give adequate public notice of the Solicitation to allow potential Bidders to review the Solicitation and prepare responses.  The public notice shall provide sufficient information concerning the Solicitation, including the Goods or Services desired, important dates and deadlines, and other appropriate information.

6.1.1.      Time. The University shall publish or advertise a Bid for a minimum of 30 days unless a shorter time is deemed necessary for a particular procurement as determined by the Associate Vice President for Procurement. 

6.1.2.      Publication. The University will publish all solicitations on the University of Oklahoma’s Public Sourcing Site (OU Public Sourcing Site) and, if necessary, other appropriate University media. Note: University Procurement may, at its discretion, conduct independent market research to identify potential Bidders. Departments may assist University Procurement by identifying potential Bidders. However, University Procurement may, at its discretion, reject the Bidders.  The potential Bidder’s inclusion does not indicate whether the Bidder is responsible with respect to a particular procurement or otherwise capable of successfully performing the contract.

6.1.3.      Distribution. The University shall distribute Solicitations to Suppliers registered in the OU Supplier Portal using automated notices to Suppliers who may be interested or provide the same or similar Goods and Services as required in the Solicitation.

6.2.           Solicitation Cancellations or Withdrawal. At any time and without prior notice, the University reserves the right to cancel, withdraw, or not award any Solicitation issued under this Policy without notice or liability. 

6.3.           Pre-Opening Activities.

6.3.1.      Pre-Bid Conference. The University may, at its discretion, conduct one or more pre-Bid conferences to explain requirements or respond to questions. The University will provide notice of the pre-bid conference through the electronic bidding system. Nothing stated at the pre-Bid conference shall change the Solicitation unless a change is made by written amendment. A summary of the conference shall be uploaded to the University’s electronic bidding system and made available to interested Suppliers. If a transcript is made, it shall be a public record.

6.3.2.      Pre-Bid Questions. Bidders may submit questions and requests for clarification regarding the meaning or interpretation of any part of the Solicitation before the deadline established for receiving such questions using the electronic bidding system. Pre-bid questions must be concise, identify the relevant document, and include specific section references. The University’s response and answers to the pre-bid questions shall be made available in the electronic bidding system to Bidders..

6.3.3.      Amendments.  The University may amend the Solicitation at any time before opening.   Notice of such amendments shall be posted to the electronic bidding system, which will notify potential Bidders. Such amendment may provide or extend response deadlines to allow potential Bidders to review the amendment and prepare, revise, or withdraw responses. A Bidder that submitted a Bid prior to the amendment and Bid opening shall acknowledge receipt of the amendment by the specified Bid response due date and time.

6.3.4.      No Reliance on Oral Statements. No oral responses, explanations, clarifications, answers, or other communications by the University shall alter, amend, or change a Solicitation’s terms, requirements, or contents.  Only written amendments or modifications the University makes publicly available may amend or modify a Solicitation.  Bidders are responsible for periodically checking the University’s Procurement website until the bid closes to obtain information relating to the Solicitation, including, but not limited to, amendments, modifications, answers, clarifications, etc.

6.4.           Bid Submission.  All Bids shall be submitted using the University’s electronic bidding system.  Bids submitted in the system shall be received in such a manner that the time and date of submittal, along with the Bid’s contents are securely stored until the time and date set for Bid opening.

6.4.1.      Bid Format.  Suppliers must provide responses in the form, content, structure, and format required in the University’s electronic bidding system..  A Bidder’s failure to comply with the content, structure, and format requirements may result in the Bid being non-responsive.

6.4.2.      Bid Modifications and Withdrawal. A Bidder may modify or withdraw a Bid by written notice. The University must receive the written notice at the location designated in the Solicitation before the time and date set for Bid opening.

6.4.3.      Late Bids.  The University considers any Bids, modifications, or withdrawals received after the time and date set for receiving Bids as late. The University will not consider any late Bids or modifications.  The University, in its sole discretion, may consider late withdrawals.  Bids, modifications, or withdrawals that would have been timely received but for the action or inaction of University personnel directly involved in the Bidding activity will not be considered late Bids, if properly demonstrated by a Bidder.

6.5.           Bid Opening. There shall be no publicly held Bid openings. Bids shall be opened on the date designated in the Solicitation. The amount of each Bid, and such other relevant information, together with the name of each Bidder shall be recorded. After Bid opening, no changes in Bid prices or other provisions of Bids prejudicial to the interest of the University, or fair competition are permitted.  The opened Bids shall be available for public inspection except to the extent the Bidder designates trade secrets or other proprietary data as confidential. 

6.6.           Bid Mistakes and Corrections. No mistake or correction to a Bid may be made except as set forth in this Section 6.6.

6.6.1.      Before Opening.  A Bidder may correct mistakes discovered before the Bid opening by withdrawing or correcting the Bid as set forth in Section 6.4.1. 

6.6.2.      After Opening. The University presumes that all Bids are correct.  However, if a Bidder or the University discovers a mistake in the Bid or believes a mistake exists, either may request, in writing, that the Bid be verified or corrected. 

6.7.           Determination. When a Bid is corrected or withdrawn, or correction or withdrawal is denied, under Section 6.6.2, the Associate Vice President of Procurement (or designee) shall prepare a written determination showing that the relief was granted or denied and the bases for the determination.

6.8.           Non-Responsive Bids. After opening, University Procurement staff shall view all bids to determine whether the Bids are responsive.  A responsive Bid is a Bid meeting all the requirements, conditions, and prerequisites. University Procurement may, in its sole discretion, reject a Bid as non-responsive if it does not conform in all material respects to the Solicitation. A Bidder’s request to modify or correct a Non-Responsive Bid shall be treated as a Bid mistake and such policies shall apply.  Table 4 includes a non-exhaustive list of examples

6.9.           Bid Evaluation.   Any Bidder’s offering which does not meet the acceptability requirements shall be rejected. The Evaluation Team shall document and record its evaluation.  A Bidder’s request to modify or correct a Non-Responsive Bid shall be treated as a Bid mistake, and such policies shall apply.

6.10.        Responsiveness not Evaluation Criteria.  A Bidder’s responsiveness to the Solicitation shall not be considered evaluation criteria. 

6.10.1.   Cost and Price.  Regardless of whether they are specifically listed as evaluation criteria, costs, prices, fees, and other matters impacting such (discounts, rebates, transportation costs, fuel or delivery fees, total life cycle costs, etc.) shall always be considered as evaluation criteria.

6.10.2.   Results. The decision regarding Bidder or Bidder evaluations or recommendations for the award shall not be announced in any public manner or forum, including board meetings until the contract has been awarded.

6.11.        Bid Rejection. The University shall reserve the right to reject any or all Bids if the University determines, in its sole discretion, that the Bids are unreasonable, do not meet the University’s needs, exceed funding, or awarding the Solicitation is not in the University’s best interest. The University may also reject any Bid for the reasons set forth in Table 5, which shall not act or serve as a limitation on the University’s ability to reject Bids. 

6.12.        Bid Evaluation. Responsive Bids shall be evaluated by the Evaluation Team using solely the evaluation criteria and requirements set forth in the Solicitation.  The Evaluation Team assesses and compares Bids to determine which Supplier(s) to award the Bid. Evaluation Criteria include any questions, document requests, and presentations in the Solicitation. The Evaluation Team shall document and record its evaluation in the electronic bidding system. 

6.12.1.   Responsiveness is not Evaluation Criteria.  A Bidder’s responsiveness to the Solicitation shall not be considered evaluation criteria. 

6.12.2.   Cost and Price.  Regardless of whether they are specifically listed as evaluation criteria, costs, prices, fees, and other matters impacting such (discounts, rebates, transportation costs, fuel or delivery fees, total life cycle costs, etc.) shall always be considered as evaluation criteria.

6.12.3.   Results. The decision regarding Bidder or Bidder evaluations or recommendations for the award shall not be announced in any public manner or forum, including board meetings until the contract has been awarded.

6.11          Pre-Award Negotiations. If it is in the University’s best interest, after the Bid submission deadline but before an award, the University may engage in pre-award negotiations with Bidders whom the University determines to be reasonably susceptible to being selected for award.  The purpose of the pre-award discussions or negotiations is to ensure a full understanding of, and responsiveness to, the Solicitation. 

6.11.1      Equal and Fair Treatment. All Bidders the University determines to be reasonably susceptible to being selected for the award shall be accorded fair and equal treatment concerning any opportunity for discussion and revision of proposals, and such revisions may be permitted after submissions and before award for the purpose of obtaining the best and final offers. There shall be no disclosure of any information derived from proposals submitted by competing Bidders in conducting discussions.

6.11.2     Best and Final Offers. The University may establish a common date and time for submitting the best and final offers by Bidders. Best and final offers shall be submitted only once, after which time no discussion of or changes in the best and final offers shall be allowed. Bidders shall also be informed that if they do not submit a notice of withdrawal or another best and final offer, their immediate previous offer will be construed as their best and final offer. Best and final offers will be used to determine the best value or the Lowest and Best Bidder.

7.                Award. Unless canceled, withdrawn, or rejected, contracts shall be awarded to the Lowest and Best Bidder(s). The University may award the Contract to more than one Bidder by awarding the Solicitation by item or groups of items or may award the Solicitation on an all or none basis, whichever is deemed to be in the best interest of the University.

7.1.           Notice. Notice of award shall be made available to the public by identifying the Bidders on the University Procurement’s website or through other means. A notice of award to a Bidder may be in the form of a purchase order or other payment mechanism or in the form of a mutually executed contract.

7.2.           Contract. A contract resulting from the Solicitation shall not be entered or effective until the Evaluation Team receives all required approvals, including risk assessments, Regent authorizations, etc. 

8.                Prohibition. No Person, company, or Bidder shall be permitted to submit a response to or be awarded a Bid involving any Solicitation in which they assisted in preparing.

Absent exceptional circumstances, all purchases of Goods and Services should be made through an open and competitive process. An open, competitive process ensures fair and equitable treatment of Suppliers, avoids conflicts of interest, increases value, protects against fraud, waste, or misuse, and builds trust and confidence in University processes.  

The University uses three methods of solicitation for all purchases. These methods include formal competition, informal competition, and non-competitive procurement. This policy sets the requirements for purchasing Goods and Services under the non-competitive procurement method of solicitation. Non-competitive purchases are restricted and should only be used to address special needs or circumstances during emergencies, as outlined in this policy. There are two non-competitive purchase categories: Sole Source Contracts and Emergency Purchases.

1.                Sole Source Contracts. A sole-source contract (sometimes called a “no-bid contract”) is a contract awarded to a single Supplier through a non-competitive process. Because no competitive process occurred, the University should only enter sole-source contracts when justified and necessary to meet the University’s needs. Accordingly, the University may enter a sole source contract for Goods and Services only when the Goods or Services are restricted to one Supplier or brand name because of the specifications needed by the department or specific restrictions imposed by a fund’s provider. A Good or Service available in the OU Marketplace, an existing University, or a Statewide contract cannot be acquired via sole source.

1.1.  Process for Requesting Sole Source Purchase. The department seeking a sole-source contract must provide appropriate justification. The justification should include all information and materials demonstrating the restrictions or requirements. Sole source justification may exist when the Good or Service is (i) only available from one source, (ii) unique, special, or involves specific professional or technical expertise; (iii) compatible with existing equipment or systems, (iv) an addition to limited or proprietary systems like increase in licenses, updates, specialized replacement parts, etc., (v) limited or available within specific geographical boundaries or sales territories. The department shall complete the Sole Source Justification Form and include all appropriate or necessary documentation supporting the sole source request. The cost must be fair and reasonable.

1.2. Considerations. When submitting a sole source justification, departments should consider the following.

·       A requirement for a particular proprietary Good or Service is insufficient justification if there is more than one potential Supplier for that Good or Service.

·       The cost of a Good or Service alone is not sufficient justification. 

·       Absent harm to the University, a timing delay by itself is not sufficient justification.   

·       Personal or professional preference cannot serve as a justification.

·       All justifications must be based on objective, verifiable criteria or information.

·       A single response to a solicitation is not sufficient justification.

1.3. Examples. A non-exhaustive list of justified sole source purchases is below:

·       Only one manufacturer makes the Goods

·       Donation, grant, award, or other agreement names a specific brand or Supplier

·       Goods must be identical to equipment already in use to ensure compatibility with existing equipment or systems and is available only from one Supplier

·       Maintenance or repair (including replacement parts) by the original equipment manufacturer

·       Patented or copyrighted materials available only from the patent or copyright holder

·       Medical or surgical decision by a medical professional, where a specific brand is required for patient care

·       Service provider is singularly qualified based on their expertise, background, or specialized talent, knowledge, or experience that is necessary for the task

·       Market Survey determined that other Suppliers cannot satisfy the University’s needs or requirements

1.4   Sole Source Acquisitions Using Federal Funds. Federally funded sole source purchases are limited to (i) Goods or Services available only from a single source (describe the steps taken to determine there are no other Suppliers, (ii) a public exigency or emergency for the requirement does not permit a delay resulting from Informal or Formal Solicitations, (iii) the Federal Awarding Agency or PTE expressly authorizes noncompetitive proposals in response to a written request from the University, or (iv) after solicitation of a number of sources, competition is determined inadequate.

1.5   Sole Source Determination. The Associate Vice President of Procurement (or designee) shall review and approve all sole source justifications.

1.6   Sole Source Limitations. To ensure the University continues to purchase Goods and Services through open and competitive processes, sole-source contracts shall be limited to one year, after which Procurement will reassess whether requirements or market conditions have changed to no longer justify a non-competitive, sole-sourced contract.

1.7   Purchasing Processing Required. Other than the requirement for competition, sole-source contracts must comply with all University processing, review, and approval requirements.

2.               Emergency Purchases. During an Emergency Condition, the Associate Vice President for Procurement may make or authorize others to make emergency procurements when a threat exists to public health, welfare, or safety.

2.1.1.       Emergency Condition Defined. As used in this Section 2.1.1, Emergency Condition means any condition creating a threat to public health, welfare, or safety where a delay in obtaining Goods or Services would seriously threaten University operations, the preservation or protection of property, or the health or safety of any person. Emergency Conditions include significant emergencies declared by the President; National Weather Service forecasted weather events, hurricanes, tsunamis, floods, ice storms, landslides or similarly cataclysmic occurrences, or other acts of God; extended power outages; epidemics, pandemics, or related outbreaks if declared by the World Health Organization or federal government; county, state, or national declaration(s) of emergency as issued by an authorized government entity; war, acts of terrorism, or acts of public enemies; sabotage, riots, or civil disturbances; or material destruction of facilities.

2.1.2.      Limitations. Emergency procurement shall be limited to those Goods, Services, or construction items necessary to meet or alleviate the Emergency Condition. The cost must be fair and reasonable.

2.1.3.      Reporting and Documentation. All material purchases made during an Emergency Condition shall be reported to the Board at the earliest opportunity but no later than the next regularly scheduled meeting. 

1.      Market Research. Procurement can provide market research to identify and determine available acquisition sources, suppliers, and alternative solutions meeting University and departmental needs or requirements.  Market research includes, but not be limited to, general pricing information, including primary cost drivers; availability of products and sources; industry revenues; economic factors; environmental considerations; new or emerging technologies; and competitive factors, such as quality, product features, and typical lead time.

2.      Requests for Information. A Request for Information (“RFI”) is a tool the University can use when performing Market Research or seeking information about goods or services.  Because an RFI seeks only to educate and inform the University, it does not create any obligation on either the University or any responding Suppliers. The RFI can help the University develop other Solicitations, modify project plans, identify different technical or financial solutions, or better understand the marketplace. Using RFI’s to assist in planning and sourcing goods and services is highly recommended.

3.      Content.  Any RFI should, at a minimum, include the following information:

3.1.           Statement of Purpose and Objectives. This section should provide an overview of the information the University seeks from potential Vendors.  It is helpful to include a description of the need or project, current practices, the potential scope of work, and other relevant information a Vendor may need to provide more accurate responses. 

3.2.           Supplier Responses.  This section asks potential Suppliers to provide general information about themselves and offers potential solutions to help the University meet objectives, including, but not limited to, potential costs (but not quotes), the availability of Goods and Services, other risks the University has not considered, and other questions directed at informing or educating the University about its underlying need or objective.  All Suppliers must be provided with the same questions.

4.      Publication and Time.  The University shall publish or advertise the RFI for a minimum of 21 days unless a shorter time is deemed necessary on the University of Oklahoma’s Public Sourcing Site (OU Public Sourcing Site) and, if necessary, other appropriate University media. Suppliers must provide responses before the posted deadline or closing.

5. Response Submission.  All Supplier responses shall be submitted using the University’s electronic bidding system.  Responses submitted in the system shall be received in such a manner that the time and date of submittal, along with the contents of the response, are securely stored until the time and date set for opening. The University is not required to review or respond to any Supplier-provided response.

5.      Meetings. The University always reserves the right to ask Suppliers to demonstrate or clarify responses, conduct interviews, and request demonstrations.

6.      Roles and Responsibilities.  Procurement is responsible for issuing all RFIs, acting as the Supplier contact, gathering responses, scheduling demonstrations, obtaining clarifications, and other procurement-related activities.  Representatives from the department and other University subject-matter experts are required to develop the Statement of Purpose and Objectives and what information and questions to seek from the Supplier.  All parties should conduct independent market research to identify potential Suppliers. 

It is unlawful to split or separate any purchase or contract into smaller purchases to evade, circumvent, or avoid any dollar limits, requirements for solicitation or competition, contract review, or other procurement policies. Employees engaging in such activity may be subject to disciplinary action and civil or criminal liability.

The acquisition of goods and services by the University must be conducted following University policies and processes. However, there may be circumstances where it is in the University's best interests to provide limited exceptions to procurement processing policies to avoid, prevent, or alleviate serious physical or financial risks, harm, injury, or loss. This policy sets forth how procurement processing exceptions can be requested and authorized. 

As stewards of state resources, the University is obligated to acquire goods and services in a competitive, fair, and transparent process. Accordingly, exceptions will only be granted in exceptional circumstances.

1.      Exception Requests. The department seeking an exception contract must complete the Request for Procurement Exception Form and submitted with the requisition or voucher. Submitting the form does not guarantee that it will be approved. 

1.1.           Justification. The department must outline the bases for the exception request, including what procurement policies or requirements (formal competition, number of quotes, purchasing hierarchy, etc.), mitigating factors, the potential for irreparable injury or loss, and steps taken to comply with University procurement policies. All justifications must be based on objective, verifiable criteria or information.

1.1.1. Absent harm to the University, a timing delay by itself is not sufficient justification. 

1.1.2. That there is only one supplier of Goods or Services may not be sufficient justification.   

1.2.           Documentation. The department should include all information and materials supporting the exception request. 

1.3.           Authorization. The form must be executed by the department head or other executive administrator with appropriate signatory authority. By executing the requesting employee and department head attest that all facts and information are, to the best of their knowledge, true and accurate, and (ii) the exception request is made in good faith and not to unlawfully circumvent any University policy. 

2.     Exception Review and Approval. University Procurement shall review each exception request to determine whether it should be granted. Only the Associate Vice President of Procurement, or designee, in their sole discretion, may approve a processing exception. The Associate Vice President of Procurement may grant conditional exception by placing specific restrictions or requirements, including, but not limited to, time limitations, costs, additional approvals, or other procurement processing requirements deemed to be in the best interests of the University.  

3.     Prohibition. The Associate Vice President of Procurement shall not be granted requests that (i) may directly or indirectly violate applicable laws or University policy, (ii) change approval and reporting requirements, (iii) increase signatory authority, or (iv) do not involve procurement processing.

Procurement Processing Exception Form

1.  Prohibition against Doing Business with the University. The University shall not enter Contracts with or do business with Suppliers that are debarred or suspended by a federal or state government entity or are otherwise excluded from or ineligible to participate in federal or state procurement or contracting activities. Additionally, Suppliers performing services on the University’s behalf shall not use the services of any debarred persons in any capacity in performing such services.

2.  Cause for Suspension. The Associate Vice President of Procurement may suspend a Supplier by serving the Supplier a notice to show cause why the Supplier should not be suspended. Cause for suspension shall be any of the following reasons:

3. Suspension Notice. The Associate Vice President of Procurement shall send written notice of suspension to a Supplier within five (5) business days of the Associate Vice President of Procurement’s decision. The notice shall designate the suspension period, which shall begin three (3) business days from the date of the notice and shall expire no later than the end of the period specified in the notice.

4. Supplier Suspension Appeal. A Supplier may appeal a suspension in writing to the Associate Vice President of Procurement within five (5) business days of receipt of the suspension notice; however, the Supplier shall be suspended pending a determination of the appeal. The Associate Vice President of Procurement shall affirm or deny the appeal in writing to the Supplier.

4.1. If the Associate Vice President of Procurement affirms the Supplier’s appeal, the Associate Vice President of Procurement shall reinstate the Supplier.

4.2.  If the Associate Vice President of Procurement denies the Supplier’s appeal, the Supplier may appeal the denial to the Procurement Risk Management Committee as set forth in Section 10.

5.Supplier Request for Reinstatement. A suspended Supplier may request reinstatement from the Associate Vice President of Procurement before the Supplier’s suspension period ends. The Associate Vice President of Procurement may consider reinstating the Supplier upon submission by the Supplier of documents that indicate a change of conditions.

6. Supplier Reinstatement. If the Associate Vice President of Procurement reasonably believes that the Supplier can satisfy requirements for the performance of University Contracts, the Associate Vice President of Procurement shall send written notice of reinstatement to the Supplier.

7. Cause for Debarment. The Associate Vice President of Procurement may debar a Supplier resulting in the Supplier becoming ineligible to enter Contracts with the University. Upon debarment, the Associate Vice President of Procurement shall cancel all existing Contracts with the University. The Associate Vice President of Procurement may serve the Supplier a notice to show cause why the Supplier should not be debarred. The debarment shall be for no more than three (3) years. Debarment shall be for any of the following reasons:

7.1. conviction of an individual or business entity guilty of a felony involving fraud, bribery, or corruption;

7.2.  conviction of an individual or business entity of a misdemeanor involving a gift, donation, or gratuity an individual or business entity gives to an official of the Associate Vice President of Procurement, an immediate family member of an official of the Associate Vice President of Procurement, or any University employee;

7.3. conviction of an individual or business entity of a felony involving the Anti-Kickback Act of 1974; or

7.4. debarment by federal or state government entities.

8. Debarment Considerations. The Associate Vice President of Procurement shall consider factors of this subsection when considering the debarment of a Supplier.

8.1. Disassociation. The efforts, if any, of the Supplier to disassociate itself from individuals and business entities responsible for convictions.

8.2. Imputed Business Entity. Conviction of an individual may impute a business entity, affiliate, or associate of the individual.

8.3.  Imputed Individual. Conviction of a business entity may impute an individual, affiliate, or associate of the business entity.

8.4. Time Period. The period during which the acts leading to a conviction of the individual or business entity occur.

8.5.  Failure to Respond to Inquiries. Failure of the individual or business entity to respond to inquiries by the Associate Vice President of Procurement regarding factors that may lead to debarment.

8.6. Other Factors. Any other factors regarding the Supplier that the Associate Vice President of Procurement determines appropriate.

9. Associate Vice President of Procurement’s Options. Upon review and consideration of factors relevant to the proposed debarment of a Supplier, the Associate Vice President of Procurement shall take one of the following actions and provide written notice of the action to the Supplier:

9.1. Decline to Debar. Decline to debar the Supplier.

9.2. Suspension. Suspend the Supplier as Associate Vice President of Procurement determines appropriate.

9.3. Debarment. Debar the Supplier for a period that shall begin three (3) business days from the date of the final order of debarment and expire no later than the end of the period specified in the order.

10.    Reinstatement after Debarment. A debarred Supplier may submit a written request for reinstatement to the Associate Vice President of Procurement. The Associate Vice President of Procurement shall consider information provided to determine whether reinstatement is merited and shall provide written notice of the reinstatement approval or denial.

11.    Supplier appeal to Procurement Risk Management Committee. A Supplier may appeal a debarment or a denial of reinstatement by the Associate Vice President of Procurement to the University’s Procurement Risk Management Committee within ten (10) business days of receipt of the debarment notice or the denial of reinstatement notice.

12.    Notice. Upon the later of the expiration of appeal times or five (5) days after the Procurement Risk Management Committee’s decision, if the Supplier is suspended or debarred, the Associate Vice President of Procurement shall send appropriate notice to federal and state government entities as appropriate.