The University of Texas Medical Branch at Galveston Section 2.0

THE UNIVERSITY OF TEXAS MEDICAL BRANCH AT GALVESTON ISSUED DATE: 07/01/08 LOGISTICS/ACQUISITION OPERATING PROCEDURES REVISED DATE: 05/08/12 ------SECTION 2 PROCUREMENT SUBJECT 2.14 SOLICITATION AND AWARD OF COMPETITIVE PROCUREMENTS

GENERAL INFORMATION

This procedure is issued to establish effective guidelines for the solicitation and award of all Informal (verbal) Quotations, Invitation to Bids (ITBs), and Requests for Bid (RFB).

AUDIENCE

Applicable to all Procurement Staff and designated Satellite Buyers.

GUIDELINES

The Guidelines 1 through 4 below represent the minimum requirements for competitive solicitations. It may be in the best interest to use a more rigorous bidding method for more complex solicitations.

1. Spot Market – $0 to $5,000

Procurements where the total value is from $0 to $5,000 are awarded to the best source based on “best value” criteria, and must have a confirming written quote for the awarded supplier if over $1,000.

2. Informal – $5,001 to $50,000

Procurements where the total value is from $5,001 to $50,000 are to be competitively bid utilizing the following informal bid process:

A. The Buyer shall, at a minimum, request written quotes from the suggested source and two (2) HUBs.

B. Once the quotes are received, the Buyer shall first determine whether each quote complies with the terms, conditions and requirements of the Solicitation and if it is in compliance with the Solicitation instructions (e.g., deadline, etc.). The Buyer shall then tabulate all compliant quotes utilizing the “Tabulation Sheet” (ref. Attachment A) and determine “best value” supplier.

C. If the Department’s suggested source is not selected for award, quotation differs from the Department request, or requires technical evaluation by the Department, then the Buyer shall then send a “Bid Award Recommendation Letter” to the Department for review and approval/determination (ref. Attachment B).

D. If the Departments selection differs from the Buyer’s recommendation, the procurement must be reviewed and approved by the Purchasing Supervisor/Manager.

3. Formal – $50,001 to $99,999

Procurements where the total value is from $50,001 to $99,999 are to be competitively bid utilizing the following formal bid process:

Note: the formal process maybe utilized for procurements below $50,000, if applicable, based on complexity, scope, risk, etc., and must follow the requirements of Guidelines 4 & 5 below.

A. All solicitations shall be in the form of an Invitation to Bid (ITB) (ref. Attachment C).

B. The Buyer shall, at a minimum, request sealed written bids/proposals from the suggested source and all applicable HUBs that can be identified from the CMBL. If less than three (3) written bids/proposals are received in response to the solicitation, the procurement shall be reviewed by the Purchasing Supervisor/Manager for validity.

C. Once the bids are opened, the Buyer shall first be determined whether each bid complies with terms, conditions and requirements of the ITB and is in compliance with the ITB instructions (e.g., signed bid, etc.). The Buyer shall then tabulate all compliant bids utilizing the “Tabulation Sheet” (ref. Attachment A) and determine “best value” supplier.

D. If the Department’s suggested source is not selected for award, bid differs from the Department request, or requires technical evaluation by the Department, the Buyer shall then send a “Bid Award Recommendation Letter” to the Department for review and approval/determination (ref. Attachment B).

F. If the Departments selection differs from the Buyer’s recommendation, the procurement must be reviewed and approved by the Purchasing Supervisor/Manager.

4. Formal – $100,000 or Greater

A. All solicitations shall be in the form of a Request for Bid (RFB) (ref. Attachment D).

B. Except for the template, and as applicable, the RFB shall follow the same process as a Request for Proposal (ref. Logistics/Acquisition Procedure 2.35)

5. Posting of Bids – $50,001 or Greater

A. All competitive solicitations greater than $50,001 shall be submitted to the “Bid Clerk” in electronic form.

B. The Buyer shall perform the following actions:  Provide the Bid Clerk & Hub Coordinator with an electronic copy of the solicitation.  Post the solicitation on Purchasing’ website

C. The Hub Coordinator shall perform the following actions:  List the solicitation on UT System’s “Opportunity Listing”

6. Receipt of Formal Bids – $50,001 or Greater

All formal bids submitted to Purchasing shall be received and secured by the Bid Clerk (ref. Logistics/Acquisition Procedure 2.15). If for any reason a bid is sent to a Buyer, or other staff member, it should immediately be given to the Bid Clerk

7. Single Response to a Competitive Procurement

In the event UTMB receives only one response to a competitive procurement solicitation, the Buyer shall complete the “Single Bid Response” form (ref. Attachment E) and submit it to their Purchasing Supervisor/Manger for review and approval prior to award.

EXCEPTIONS

1. The following purchase types shall be processed in accordance with applicable policies and procedures:

 Sole-Source  Request for Proposal  Professional Services  Construction Services  Procurements from Committed Contracts  Procurements from Non-Committed Contracts 2. Any other exceptions must be in writing by formal addendum to this procedure or other formal written exception by the Purchasing Agent.

REFERENCES

Logistics/Acquisition Procedure 2.10 (Best Value Procurement) Logistics/Acquisition Procedure 2.15 (Opening Formal Written Bids/Proposals) Logistics/Acquisition Procedure 2.35 (Request for Proposal)

2.14 Solicitation and Award of Competitive Procurements

Approved: Jeffery Bonnardel, C.P.M. Chief Purchasing Agent

Attachments: A – Tabulation Sheet B – Bid Award Recommendation Letter C – ITB Template D – RFB Template E – Single Bid Response Form