Procurement Services' Policy Manual

Vendor Selection

Bidding Procedures

The competitive bidding process for goods and services is useful for several reasons. The bidding process:

• allows the buyer to make an informed and objective choice among potential vendors
• encourages competition among vendors
• creates a standard for the buyer to compare price, quality, and service
• gives the buyer a list of qualified vendors for future bids

The requisitioning department is encouraged to work with Procurement Services early in the requisitioning process. Quotations are required for all orders greater than $5,000.

RFB Process

A request for bid (RFB) is an invitation for vendors to bid on established standards or specifications that are:

• Generally for a one time purchase of a product
• Driven primarily by pricing

Department Led Bids

For items less than $25,000, departments can utilize the Request for Bid Form to obtain bids from vendors. The following are some tips on preparing bids:

1. Utilize bidding templates established by Procurement Services in conjunction with the Office of General Counsel.
2. All vendors should receive identical copies of the RFB or RFP and any subsequent changes in the bid specification.
3. All vendors must be notified in writing via an addendum if the bid specifications change. Every consideration should be given to allow sufficient time for all bidders to accommodate the requested changes, bid extensions are allowed if requested and appropriate. All vendors should be notified of the extension in writing via addendum. If the deadline is extended for one vendor, it must be extended for all.
4. Specify a deadline for submitting all bids. The deadline should be reasonable to provide time for quality responses.
5. When the bids are received, the buyer should sign, date and indicate the time that each is received. All competitive bids are confidential and should never be used as a bargaining tool.

In all instances, colleges/departments must adhere to the University's Ethical Principles regarding purchasing goods and services.  

Procurement Services Led Proposals

If the bid is over $25,000, or a college/department would like assistance obtaining bids, contact the Procurement Services person responsible for the commodity/service according to the buy.nd.edu (new and specific link to the commodity is being developed) web site. Departments are encouraged to suggest suppliers if known. Procurement Services will manage the bid process and send prospective suppliers a written description of the goods or services needed on a standard Request for Bid (RFB) form. This process ensures that all bidders receive the same information and the requesting department is relieved of the burdens of dealing with multiple vendors. Special instructions and deadlines will also be communicated. Planning ahead for purchases, providing descriptions that are accurate and complete, and indicating any time constraints help this process move smoothly.

Procurement Services will evaluate the bids and submit a recommendation to the departments. A Vendor Selection Form will be prepared and forwarded to the departments. A letter of justification must be submitted to Procurement Services if a user specifies that the product or service should be purchased from a particular vendor even though other vendors sell a similar product or service at a lower price. This letter must provide sufficient justification for the selection

RFP Process

A request for proposal (RFP) is an invitation for vendors to submit a proposal for a product or service based upon a concept or scope of work. RFPs:

• are more complex and lengthier than a RFB;
• generally end up with long-term relationship;
• have various selection criteria and includes items such as quality, company stability, price, reputation, and terms and conditions;
• involve a selection/evaluation committee representing a cross-section of University constituents make selection recommendation;
• may request a Pre-Proposal Conference where vendors are invited for a presentation and will have the opportunity to ask questions.

RFPs request similar information contained in the RFB, but also request a statement from vendors on how they plan to meet stated objectives and what unique contributions they would make towards achieving the goals outlined in the proposal. Vendors shall be asked to outline how they plan to meet specific challenges the proposal, i.e., time constraints or on-site training for end users.

RFPs are broken into three (3) different categories: Procurement Services led, college/department led, or a hybrid. Procurement Services led bids generally involves commodity items or areas within the department. An example is office supplies. Departmental led bids involve complex commodities where specific knowledge is within a department. An example of this is any Human Resources RFP for benefits. In these cases, Procurement Services provides support regarding the RFP process, selection process, and vendor contact. Finally, some RFPs involve expertise from Procurement Services and colleges/departments (hybrid). An example of this is furniture, where Interior Design, Office of University Architect and Procurement Services each have expertise and would contribute to the specifications and performance requirements.

Bid/Proposal Evaluation

When evaluating bids/proposal, the requisitioning departments and Procurement Services shall give consideration to the selection criteria established by the departments in conjunction with Procurement Services. Typical criteria are:

• Price
• Bidder's previous record of performance, service, and references
• Ability of bidder to render value-added services (training, maintenance, etc.)
• Delivery schedule
• Warranty
• Terms and conditions
• Disposal value

If the lowest bid/proposals is found unacceptable because of one or more factors above, the department manager/Procurement Services representative shall document a concise and factual justification for the decision in written form. The Assistant Vice President for Procurement Services has the ultimate responsibility for determining if the justification for the decision supports the decision should there be disagreement about the award.

Tips on evaluating bids/proposals:

1. Narrow the field by determining which vendors are "responsive". A "responsive" bid provides all of the information asked for and addresses all of the issues in the RFB or RFP. Eliminate bidders who are unresponsive.
2. Look carefully at proposed prices. Be wary of a vendor who substantially underbids his competitors. They may be "low-balling" to win the bid, but the product may be of inferior quality, not meet specifications or the vendor may be unable to meet the delivery requirements. A substantially lower price might also indicate that the vendor has misunderstood or misinterpreted the requirements.
3. If appropriate, obtain and evaluate samples.
4. Consider the vendors' past performances by checking references, after-sale support and services, technology, and the creativity used to meet the buyer's requirements or objectives.

When evaluating bids special attention shall be given to vendors that fall into the Supplier Diversity Program.

The University reserves the right to reject any bids and award contracts in the best interest of Notre Dame. Disputes shall be directed to the Assistant Vice President for Procurement Services.