University and Purchasing Policies and Guidelines
3.1 - General Payment and Sourcing Policy Statement
3.2 - External Funding Regulations and Guidelines and Taxes
3.3 - Developing Specifications and Statements of Work
3.4 - Competitive Bidding Standards
3.5 - Environmental Sustainability Initiatives
3.6 - Policy Statement on Using Small Businesses
3.1 General Payment and Sourcing Policy Statement
Only individuals who are authorized in writing to commit University entrusted funds can make purchases on behalf of 黑料门University. Tools for making purchasing commitments include Procurement Cards (called Pro-Cards at LUC), Purchase Orders (issued by buyers), and web ordering. Check Requisitions can also be submitted by 黑料门staff to pay vendors--see For details concerning the proper use and other policies and procedures governing the University’s Procurement Card Program, please see the . All expenditures must be approved by a departmental individual with budget authority. For specifics on transactions exceeding $5,000, prior to the issuance of a commitment, please refer to: .
Potential suppliers are evaluated during sourcing events, chosen by a selected team based on established criteria. Suppliers selected to be Pre-Qualified Suppliers are listed in Purchasing's Pre-Qualified Supplier Directory (on the Purchasing webpage) and promoted by the Purchasing Department during interactions with faculty and staff. Pre-Qualified Suppliers are expected to accept ProCards (or otherwise provide for electronic ordering and payment capabilities) and agree to pre-determined terms and conditions of sale. 黑料门works to ensure small, disadvantaged, women-owned, veteran-owned, service disabled veteran-owned, and HUBZone businesses are given the opportunity to bid on needed materials and services.
For consistency, some external funding agency guidelines must be applied to purchases regardless of the funding source. Others are just good business practices followed by many universities.
3.2 External Funding Regulations and Guidelines and Taxes
黑料门University Chicago receives external funding and must conform to the minimum procurement standards set forth in the OMB Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards in the Federal Register (2 CFR 200) in order to maintain an approved purchasing system and its continued flow of external funding. These standards include provisions for free and open competition to the maximum extent practicable to ensure that qualified suppliers have an opportunity to bid on needed materials and services. Detailed information on related government regulations can be found at and . Purchasing has outlined required documentation in the following two documents:
Buyers Actions Matrix: This matrix details the Buyer’s required actions (including approval of required documentation) when committing University funds. The matrix's requirements are broken out by 1) source of funding (i.e. external vs internal) and 2) status of supplier to be used (i.e. Pre-Qualified Vendors don't require multiple quotes if the purchase is under $150K.)
Purchasing Checklist and Bid Summary Form: The Purchasing Checklist requires 1) Justification of the supplier to be used and 2) Justification of the price to be paid (i.e. determination of price reasonableness). The Purchasing Checklist details the options that can be used for those justifications, including the required documentation for non-competitive purchases (e.g. sole/single source). See Section 4.0 Supplier Selection of this Purchasing Manual for more information.
Taxes: As a non-profit educational institution, 黑料门University Chicago is exempt under Subtitle D of the Internal Revenue Code, Miscellaneous Excise Taxes, 26 U.S.C. 4041 (26 CFR parts 40 through 299) from Federal Excise Tax and from payment of the Illinois Sales and Use Tax (exemption No. E9989-4408-07) on all transactions directly related to University operations. University Procurement Cards have the University’s Illinois tax exemption number embossed on the front side of the card. Suppliers who insist on having an Illinois Department of Revenue Tax Exemption Certificate should be directed to contact the 黑料门Purchasing Department at (312) 915-8780. Sales tax exemption status may not be applicable for purchases in other states. Employees who pay sales and use tax when making purchases external to the 黑料门purchasing systems (e.g. using personal funds) may not be reimbursed for sales tax, if paid. Other taxes (like room or occupancy, city, use, etc.) are applicable and 黑料门University is obligated to pay these charges.
3.3 Developing Specifications and Statements of Work
When seeking bids for expensive or technically complex goods or services, it is desirable to obtain firm pricing. Bidders should be provided a detailed description of the project (Statement of Work for services or specs for products) which addresses: Scope of work --detailed to at least include who is responsible for what, required deliverables (e.g. reports, prototypes), schedules/milestones, and who has rights to data or developed works. Other inclusions to consider as applicable: quality measures, award flow-down terms, subcontractor parameters, performance criteria, communications plan, and insurance requirements (defined by LUC Risk Mgmt).
If the work you are sourcing is more suited to a variable rate (vs fixed bid), be sure to get a quote that includes not just the hourly rate (by role), but also any rate for overtime if it's expected. In the request for quote, have the supplier include any other fees or expenses they might apply (travel, equipment rental, etc.) Product specifications should include be detailed and might include manufacturer and model/part number, size/dimensions, speed, purity, color, and any add-on features not included in the base product.
Users are encouraged to reach out to Purchasing when assistance is needed with SOW, scope or specifications development.
3.4 Competitive Bidding Standards
Competitive bidding (and the completion of the Purchasing Checklist and Bid Summary Form as documentation of such) are required when a single order or transaction (using any University payment method) commits funds totaling $5,000 or greater to a non Pre-Qualified Supplier. (Note: if using a Pre-Qualified supplier, the threshold at which you need competitive bids is raised to $150,000 or greater.) A complete Checklist is required even for non-competitive sourcing (i.e. sole or single source). Detailed rationale is required, and evidence of price/cost analysis (determination of price reasonableness) must be included to meet audit requirements. All expenditures must be approved by a departmental individual with budget authority.
The Office of Management & Budget’s General Procurement Standards require “all procurement transactions be conducted in a manner to provide, to the maximum extent practical, open and free competition. The recipient of federal funds shall be alert to organizational conflicts of interest as well as noncompetitive practices among contractors that may restrict or eliminate competition or otherwise restrain trade. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, invitations for bids, and/or requests for proposals shall be excluded from competing for such procurements. Awards shall be made to the bidder whose bid or offer is responsive to the solicitation and is most advantageous to the recipient, price, quality and other factors considered. Solicitations shall clearly set forth all requirements that the bidder or offeror shall fulfill in order for the bid or offer to be evaluated by the recipient."
Cost/Price Analysis: For those purchases that require the completion of the Purchasing Checklist and Bid Summary Form, the determination of price reasonableness must be demonstrated (with supporting documentation) and submitted to the Purchasing Department. Any externally funded order of $25,000 or more using a non Pre-Qualified Supplier should be coordinated through the Purchasing Department prior to the selection of the source. Certain external awarding agencies may require additional cost/price analysis: refer to the agency’s Notice of Award for additional specific requirements. Note that any federally funded order exceeding $700,000 is subject to Public Law 87-653, Truth in Negotiations Act, and price reasonableness must be justified through cost analysis if the pricing was not established through adequate competition.
Taxes: As a non-profit educational institution, 黑料门University Chicago is exempt under Subtitle D of the Internal Revenue Code, Miscellaneous Excise Taxes, 26 U.S.C. 4041 (26 CFR parts 40 through 299) from Federal Excise Tax and from payment of the Illinois Sales and Use Tax (exemption No. E9989-4408-07) on all transactions directly related to University operations. University Procurement Cards have the University’s Illinois tax exemption number embossed on the front side of the card. Suppliers who insist on having an Illinois Department of Revenue Tax Exemption Certificate should be directed to contact the 黑料门Purchasing Department at (312) 915-8780. Sales tax exemption status may, or may not, be applicable for purchases in other states. Procurement Services can ascertain if there is an exemption available in other states. Employees who pay sales and use tax when making purchases external to the 黑料门purchasing systems (e.g. personal funds) may not be reimbursed for sales tax, if paid. Other taxes (like room or occupancy, city, use, etc.) are applicable and 黑料门University is obligated to pay these charges.
3.5 Environmental Sustainability Initiatives
黑料门University Chicago is committed to (and continually strengthens its sustainability efforts with our campus partners. Buyers and users should utilize suppliers and service providers that make use of, to practicable extent, materials and services that support the University’s sustainability mission. This should include efforts to conserve energy and water resources, support efficient delivery and supplier programs and reduce waste through reducing, reusing and recycling. The Purchasing Department leverages current supplier relationships to raise awareness of the need to reduce our environmental impact and maximize resource efficiency.
3.6 Policy Statement on Using Small Businesses
黑料门University Chicago is committed to supporting small business enterprises, including socially and economically Small Disadvantaged Businesses, Small Women-owned Businesses, Small Veteran-owned Businesses, Small Disabled Veteran-owned Businesses and HUBZone Businesses in its purchasing programs. Categories of socially and economically disadvantaged small business enterprises are defined in FAR 19.001 while small business enterprises are defined by the federal government in FAR 19.102, and are subject to further guidance under 2 CFR 200.321.
A Small Business Enterprise is defined as an independently owned and operated concern, including its affiliates, that is not dominant in the field of operation in which it is bidding on government contracts, and qualified as a small business under the criteria and size standards in 13CFR Part 121 (see FAR 19.102)
A Small Disadvantaged Business is defined as a small business concern, owned and controlled by individuals who are both socially and economically disadvantaged, as defined by the Small Business Administration at 13CFR Part 124, the majority of earnings of which must directly accrue to such individuals. This term also means a small business concern owned and controlled by an economically disadvantaged Indian tribe or Native Hawaiian organization which meets the requirements of 13CFR 124.112 or 13CFR 124.113, respectively. In general, 13CFR Part 124 describes a small, disadvantaged business concern as a small business concern.
A Small Women-owned Business is defined as a small business concern in which at least 51% of the concern is owned and day-to-day managed and controlled by women, or in the case of a publicly owned business, at least 51% of the stock is owned by women, with one or more women managing and controlling the daily operation of the business.
A Small Veteran-owned Business is defined as a small business concern in which at least 51% of the concern is owned and day-to-day managed and controlled by veterans (as defined at 38 U.S.C. 101[2]), or in the case of a publicly owned business, at least 51% of the stock is owned by veterans, with one or more veterans managing and controlling the daily operation of the business.
A Small Disabled Veteran-owned Business is defined as a small business concern in which at least 51% of the concern is owned and day-to-day managed and controlled by disabled veterans (as defined at 38 U.S.C. 101[2]), or in the case of a publicly owned business, at least 51% of the stock is owned by disabled veterans, with one or more disabled veterans managing and controlling the daily operation of the business.
A HUBZone is defined as a historically underutilized business zone, which is an area located within one or more qualified census tracts, qualified non-metropolitan counties, or lands within the external boundaries of an Indian reservation.
A HUBZone Business is defined as a small business concern that appears on the List of Qualified HUBZone Small Business Concerns maintained by the Quinlan School of Business. On foreign campuses, these definitions will remain applicable, but references to US government regulations may not apply.
Providing Equal Opportunity
To be sure that the University does not overlook such suppliers who might be able to supply the item(s) or service(s) needed, the following guidelines are established:
- Contact 黑料门Buyer/Purchasing Manager to assist in identifying small, disadvantaged, women-owned, veteran-owned, disabled veteran-owned and HUBZone businesses.
- Consider breaking large orders into separate groupings to give small businesses a greater opportunity to supply items (competition requirements are still applicable).
- Contact a 黑料门Buyer/Purchasing Manager when developing specifications for what is needed.
- When using competitive bidding, give small, disadvantaged, women-owned, veteran-owned, disabled veteran-owned and HUBZone business suppliers the opportunity to submit bids.
Click here to continue to section 4.0 Supplier Selection
3.1 - General Payment and Sourcing Policy Statement
3.2 - External Funding Regulations and Guidelines and Taxes
3.3 - Developing Specifications and Statements of Work
3.4 - Competitive Bidding Standards
3.5 - Environmental Sustainability Initiatives
3.6 - Policy Statement on Using Small Businesses
3.1 General Payment and Sourcing Policy Statement
Only individuals who are authorized in writing to commit University entrusted funds can make purchases on behalf of 黑料门University. Tools for making purchasing commitments include Procurement Cards (called Pro-Cards at LUC), Purchase Orders (issued by buyers), and web ordering. Check Requisitions can also be submitted by 黑料门staff to pay vendors--see For details concerning the proper use and other policies and procedures governing the University’s Procurement Card Program, please see the . All expenditures must be approved by a departmental individual with budget authority. For specifics on transactions exceeding $5,000, prior to the issuance of a commitment, please refer to: .
Potential suppliers are evaluated during sourcing events, chosen by a selected team based on established criteria. Suppliers selected to be Pre-Qualified Suppliers are listed in Purchasing's Pre-Qualified Supplier Directory (on the Purchasing webpage) and promoted by the Purchasing Department during interactions with faculty and staff. Pre-Qualified Suppliers are expected to accept ProCards (or otherwise provide for electronic ordering and payment capabilities) and agree to pre-determined terms and conditions of sale. 黑料门works to ensure small, disadvantaged, women-owned, veteran-owned, service disabled veteran-owned, and HUBZone businesses are given the opportunity to bid on needed materials and services.
For consistency, some external funding agency guidelines must be applied to purchases regardless of the funding source. Others are just good business practices followed by many universities.
3.2 External Funding Regulations and Guidelines and Taxes
黑料门University Chicago receives external funding and must conform to the minimum procurement standards set forth in the OMB Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards in the Federal Register (2 CFR 200) in order to maintain an approved purchasing system and its continued flow of external funding. These standards include provisions for free and open competition to the maximum extent practicable to ensure that qualified suppliers have an opportunity to bid on needed materials and services. Detailed information on related government regulations can be found at and . Purchasing has outlined required documentation in the following two documents:
Buyers Actions Matrix: This matrix details the Buyer’s required actions (including approval of required documentation) when committing University funds. The matrix's requirements are broken out by 1) source of funding (i.e. external vs internal) and 2) status of supplier to be used (i.e. Pre-Qualified Vendors don't require multiple quotes if the purchase is under $150K.)
Purchasing Checklist and Bid Summary Form: The Purchasing Checklist requires 1) Justification of the supplier to be used and 2) Justification of the price to be paid (i.e. determination of price reasonableness). The Purchasing Checklist details the options that can be used for those justifications, including the required documentation for non-competitive purchases (e.g. sole/single source). See Section 4.0 Supplier Selection of this Purchasing Manual for more information.
Taxes: As a non-profit educational institution, 黑料门University Chicago is exempt under Subtitle D of the Internal Revenue Code, Miscellaneous Excise Taxes, 26 U.S.C. 4041 (26 CFR parts 40 through 299) from Federal Excise Tax and from payment of the Illinois Sales and Use Tax (exemption No. E9989-4408-07) on all transactions directly related to University operations. University Procurement Cards have the University’s Illinois tax exemption number embossed on the front side of the card. Suppliers who insist on having an Illinois Department of Revenue Tax Exemption Certificate should be directed to contact the 黑料门Purchasing Department at (312) 915-8780. Sales tax exemption status may not be applicable for purchases in other states. Employees who pay sales and use tax when making purchases external to the 黑料门purchasing systems (e.g. using personal funds) may not be reimbursed for sales tax, if paid. Other taxes (like room or occupancy, city, use, etc.) are applicable and 黑料门University is obligated to pay these charges.
3.3 Developing Specifications and Statements of Work
When seeking bids for expensive or technically complex goods or services, it is desirable to obtain firm pricing. Bidders should be provided a detailed description of the project (Statement of Work for services or specs for products) which addresses: Scope of work --detailed to at least include who is responsible for what, required deliverables (e.g. reports, prototypes), schedules/milestones, and who has rights to data or developed works. Other inclusions to consider as applicable: quality measures, award flow-down terms, subcontractor parameters, performance criteria, communications plan, and insurance requirements (defined by LUC Risk Mgmt).
If the work you are sourcing is more suited to a variable rate (vs fixed bid), be sure to get a quote that includes not just the hourly rate (by role), but also any rate for overtime if it's expected. In the request for quote, have the supplier include any other fees or expenses they might apply (travel, equipment rental, etc.) Product specifications should include be detailed and might include manufacturer and model/part number, size/dimensions, speed, purity, color, and any add-on features not included in the base product.
Users are encouraged to reach out to Purchasing when assistance is needed with SOW, scope or specifications development.
3.4 Competitive Bidding Standards
Competitive bidding (and the completion of the Purchasing Checklist and Bid Summary Form as documentation of such) are required when a single order or transaction (using any University payment method) commits funds totaling $5,000 or greater to a non Pre-Qualified Supplier. (Note: if using a Pre-Qualified supplier, the threshold at which you need competitive bids is raised to $150,000 or greater.) A complete Checklist is required even for non-competitive sourcing (i.e. sole or single source). Detailed rationale is required, and evidence of price/cost analysis (determination of price reasonableness) must be included to meet audit requirements. All expenditures must be approved by a departmental individual with budget authority.
The Office of Management & Budget’s General Procurement Standards require “all procurement transactions be conducted in a manner to provide, to the maximum extent practical, open and free competition. The recipient of federal funds shall be alert to organizational conflicts of interest as well as noncompetitive practices among contractors that may restrict or eliminate competition or otherwise restrain trade. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, invitations for bids, and/or requests for proposals shall be excluded from competing for such procurements. Awards shall be made to the bidder whose bid or offer is responsive to the solicitation and is most advantageous to the recipient, price, quality and other factors considered. Solicitations shall clearly set forth all requirements that the bidder or offeror shall fulfill in order for the bid or offer to be evaluated by the recipient."
Cost/Price Analysis: For those purchases that require the completion of the Purchasing Checklist and Bid Summary Form, the determination of price reasonableness must be demonstrated (with supporting documentation) and submitted to the Purchasing Department. Any externally funded order of $25,000 or more using a non Pre-Qualified Supplier should be coordinated through the Purchasing Department prior to the selection of the source. Certain external awarding agencies may require additional cost/price analysis: refer to the agency’s Notice of Award for additional specific requirements. Note that any federally funded order exceeding $700,000 is subject to Public Law 87-653, Truth in Negotiations Act, and price reasonableness must be justified through cost analysis if the pricing was not established through adequate competition.
Taxes: As a non-profit educational institution, 黑料门University Chicago is exempt under Subtitle D of the Internal Revenue Code, Miscellaneous Excise Taxes, 26 U.S.C. 4041 (26 CFR parts 40 through 299) from Federal Excise Tax and from payment of the Illinois Sales and Use Tax (exemption No. E9989-4408-07) on all transactions directly related to University operations. University Procurement Cards have the University’s Illinois tax exemption number embossed on the front side of the card. Suppliers who insist on having an Illinois Department of Revenue Tax Exemption Certificate should be directed to contact the 黑料门Purchasing Department at (312) 915-8780. Sales tax exemption status may, or may not, be applicable for purchases in other states. Procurement Services can ascertain if there is an exemption available in other states. Employees who pay sales and use tax when making purchases external to the 黑料门purchasing systems (e.g. personal funds) may not be reimbursed for sales tax, if paid. Other taxes (like room or occupancy, city, use, etc.) are applicable and 黑料门University is obligated to pay these charges.
3.5 Environmental Sustainability Initiatives
黑料门University Chicago is committed to (and continually strengthens its sustainability efforts with our campus partners. Buyers and users should utilize suppliers and service providers that make use of, to practicable extent, materials and services that support the University’s sustainability mission. This should include efforts to conserve energy and water resources, support efficient delivery and supplier programs and reduce waste through reducing, reusing and recycling. The Purchasing Department leverages current supplier relationships to raise awareness of the need to reduce our environmental impact and maximize resource efficiency.
3.6 Policy Statement on Using Small Businesses
黑料门University Chicago is committed to supporting small business enterprises, including socially and economically Small Disadvantaged Businesses, Small Women-owned Businesses, Small Veteran-owned Businesses, Small Disabled Veteran-owned Businesses and HUBZone Businesses in its purchasing programs. Categories of socially and economically disadvantaged small business enterprises are defined in FAR 19.001 while small business enterprises are defined by the federal government in FAR 19.102, and are subject to further guidance under 2 CFR 200.321.
A Small Business Enterprise is defined as an independently owned and operated concern, including its affiliates, that is not dominant in the field of operation in which it is bidding on government contracts, and qualified as a small business under the criteria and size standards in 13CFR Part 121 (see FAR 19.102)
A Small Disadvantaged Business is defined as a small business concern, owned and controlled by individuals who are both socially and economically disadvantaged, as defined by the Small Business Administration at 13CFR Part 124, the majority of earnings of which must directly accrue to such individuals. This term also means a small business concern owned and controlled by an economically disadvantaged Indian tribe or Native Hawaiian organization which meets the requirements of 13CFR 124.112 or 13CFR 124.113, respectively. In general, 13CFR Part 124 describes a small, disadvantaged business concern as a small business concern.
A Small Women-owned Business is defined as a small business concern in which at least 51% of the concern is owned and day-to-day managed and controlled by women, or in the case of a publicly owned business, at least 51% of the stock is owned by women, with one or more women managing and controlling the daily operation of the business.
A Small Veteran-owned Business is defined as a small business concern in which at least 51% of the concern is owned and day-to-day managed and controlled by veterans (as defined at 38 U.S.C. 101[2]), or in the case of a publicly owned business, at least 51% of the stock is owned by veterans, with one or more veterans managing and controlling the daily operation of the business.
A Small Disabled Veteran-owned Business is defined as a small business concern in which at least 51% of the concern is owned and day-to-day managed and controlled by disabled veterans (as defined at 38 U.S.C. 101[2]), or in the case of a publicly owned business, at least 51% of the stock is owned by disabled veterans, with one or more disabled veterans managing and controlling the daily operation of the business.
A HUBZone is defined as a historically underutilized business zone, which is an area located within one or more qualified census tracts, qualified non-metropolitan counties, or lands within the external boundaries of an Indian reservation.
A HUBZone Business is defined as a small business concern that appears on the List of Qualified HUBZone Small Business Concerns maintained by the Quinlan School of Business. On foreign campuses, these definitions will remain applicable, but references to US government regulations may not apply.
Providing Equal Opportunity
To be sure that the University does not overlook such suppliers who might be able to supply the item(s) or service(s) needed, the following guidelines are established:
- Contact 黑料门Buyer/Purchasing Manager to assist in identifying small, disadvantaged, women-owned, veteran-owned, disabled veteran-owned and HUBZone businesses.
- Consider breaking large orders into separate groupings to give small businesses a greater opportunity to supply items (competition requirements are still applicable).
- Contact a 黑料门Buyer/Purchasing Manager when developing specifications for what is needed.
- When using competitive bidding, give small, disadvantaged, women-owned, veteran-owned, disabled veteran-owned and HUBZone business suppliers the opportunity to submit bids.
Click here to continue to section 4.0 Supplier Selection