Procurement Policies

For purchases under $10,000, Department Sponsors are not required to receive prior approval from the Procurement Office. Department Sponsors should use their best judgment and seek at least one verbal quote when determining if the purchase is necessary and of best value. Intentionally splitting a purchase over $10,000 into smaller increments to avoid competitive bidding will be considered a violation of this policy.

Departments are no longer required to issue a Purchase Order to vendors. In the event a vendor requires a purchase order to be generated, a requisition should be submitted and Accounts Payable will provide the requesting department with the PO to send to the vendor.

Informal competition is required for standard purchases of goods or services. The Department Sponsor is responsible for independently seeking written quotes for the purpose of validating the price and quality for reasonableness. Acceptable quotes include web searches, email communications, public product listing, etc. Department Sponsors must include quotes with requisition submissions and receive approval from the Procurement Office before a purchase is made. If the purchase involves a contract, the Department Sponsor must send the Contract Review Form with attached quotes to the Procurement Office for approval before it is submitted to Risk Services. The number of quotes required depends on the following thresholds:

• $10,000-$49,999: Two written quotes from comparable and qualified sources
• $50,000-$99,999: Three written quotes from comparable and qualified sources

Purchases of goods and services should be evaluated based on best value and not exclusively on price. In order to remain in compliance with Uniform Guidance, Department Sponsors are required to provide a brief rationale if the lowest price is not selected out of the quotes obtained. Provided all bidding requirements have been met, Department Sponsors can expect a decision within two business days after submission. If you are having difficulty finding quotes, the Procurement Office can be consulted for assistance.

Formal competitive bidding is required for purchases $100,000 and over. Some of the most common types of competitive solicitation methods include Request for Proposals and Request for Quotes. Department Sponsors must consult the Procurement Office to initiate the competitive bidding process. The Procurement Manager will help the Department Sponsor determine the best method of procurement and prepare the necessary documentation to issue to potential vendors.

Renewal Policy

PLU Contract Renewal Policy

Context: All contracts at PLU undergo initial review to achieve the most favorable terms possible. Contract renewal periods are another opportunity to engage with the vendor and ensure that the services provided and costs continue to be favorable for the University.

Objective: The objective of this policy is to provide guidelines for the renewal of contracts and subscription services at Pacific Lutheran University. The standard contract term is a maximum three (3) year initial contract with an optional maximum two (2) year renewal term to ensure efficient contract management and vendor relationships. The initial and renewal terms for contracts may be executed in shorter periods, granted the total length of the engagement with the vendor does not surpass the above standards without a renewal evaluation. 

Policy:

1. Contract Review:
   • It is the department’s responsibility to keep track of upcoming expirations and reach out to Procurement prior to the 90 day deadline to ensure proper review. Contracts eligible for renewal must be reviewed by the Procurement Department at least 90 days prior to the expiration date.
     • Special attention should be given to contracts with auto-renewal and exit clauses extending beyond 90 days.
   • The Procurement Office has supplied departments with a vendor contract tracking spreadsheet to assist in this process. 
   • Contracts will be assessed based on performance, pricing, terms, and vendor reliability.
2. Renewal Evaluation:
   • The Procurement Department will evaluate the option for contract renewal based on the following criteria:
     • Vendor performance and compliance with contract terms.
     • Market competitiveness and pricing.
     • Changes in university requirements or services.
3. Renewal Process:
   • Under normal circumstances, departments will negotiate terms and conditions with vendors, however, if necessary, the Procurement Department will assist discussions with the vendor regarding contract renewal terms and conditions.
   • Contract negotiations will be conducted to ensure favorable terms for the university.
4. Approval Process:
   • If approved, renewal proposals will be submitted by the department to the appropriate authority through the contract submission portal found on the Risk Services Webpage.
5. Documentation:
   • Departments will ensure that key terms, renewal dates, and any modifications to the original contract are clearly documented. 
6. Compliance and Monitoring:
   • Compliance with the Contract Renewal Policy will be monitored and enforced by the Procurement Department.
   • Regular audits will be conducted to ensure adherence to the policy and identify areas for improvement.

Exceptions: Exceptions will be forwarded by Vice Presidents for approval by Executive Counsel. 

An exception to bidding requirements may be granted by the Procurement Office in the event the product or service can only be obtained from a Sole Source. Such circumstances may include:

• Existence of patents, copyrights, proprietary information, property rights etc.
• The vendor or agency is the only one that can meet the required timeline of a project
• The product or service is explicitly required by a federal awarding agency
• Inadequate competition – bids were solicited but none were received
• Unique properties from a sole source that cannot be found elsewhere
• The product or service to be obtained must be compatible with product or service already acquired by the University
• Continuation, maintenance or update of an ongoing service
• Time does not permit competitive bidding due to a public emergency. A “public emergency” is classified as the need to correct or prevent an emergency health, environmental or safety hazard and/or enable the emergency repair or replacement of existing equipment essential for daily operations.

Sole Source Justification

In the event a purchase of goods or services $10,000 or more fits within the aforementioned sole source circumstances, a Sole Source Justification Request must be submitted to the Procurement Office for approval. Once approved, the request will be maintained for future reference. An expiration date will be determined by the Procurement Office after which point Department Sponsors should re-evaluate if the vendor would still be considered a Sole Source. Requisition submissions for a vendor that is an approved Sole Source do not need to be accompanied by alternative quotes.

Under Uniform Guidance, Sole Source Justification for federal funding is limited to the following circumstances:

• Aggregate purchase amount does not exceed micro-purchase threshold of $10,000
• Product or service is only available from a single source
• Public emergency does not permit time for competitive bidding
• Bids were solicited but competition was deemed inadequate

Preferred Vendors

Competitive bidding is not required for standard purchases made through a preferred vendor for which a contract has already been negotiated by the University. Requisitions submitted to the Procurement Office for approval do not need to include alternative quotes.

Preferred Vendor Policy 

1. Purpose This policy establishes guidelines for identifying and utilizing preferred vendors to optimize purchasing decisions, promote efficiency, and ensure compliance with university policies and procedures. 
2. Definition of Preferred Vendor: A preferred vendor is a supplier or service provider that has been selected to provide specific goods or services to the university based on a rigorous evaluation process. Preferred vendors are chosen for their ability to meet or exceed the university’s quality, pricing, service, and delivery standards.
   
3. Selection of Preferred Vendors 

Vendor Evaluation Criteria: 

1. Quality: Products or services must meet or exceed university standards.
2. Pricing: Competitive pricing and discounts are essential. 
3. Service: Responsive and timely customer service is required. 
4. Delivery: Reliable and timely delivery is expected. 
5. Financial Stability: A strong financial position is important. 
6. Compliance: Adherence to university policies and legal regulations. 
7. Diversity: PLU has a passion to actively seek out and engage with locally owned businesses that are also diverse in terms of ownership (e.g., women-owned, minority-owned, LGBTQ+-owned, veteran-owned, WA state and/or locally owned). 

Selection Process: a preferred vendor could be identified based on any one, or a combination of the factors below: 

1. Campus Need: The need for a preferred vendor should be evaluated against cross campus needs to identify and mitigate duplicative services, etc. 
2. Request for Proposals (RFPs) or Requests for Qualifications (RFQs): Formal solicitations may be issued to identify potential vendors. 
3. Vendor Evaluations: A thorough evaluation of vendor proposals or performance will be conducted.
   – Evaluation Committee of primary service users. 
4. Negotiations: After selected, Negotiations may be conducted to finalize terms and conditions; and, 
5. Contract Execution: Formal contracts or purchase agreements will be executed with preferred vendors. 

Contract Award:

1. A Contract will be awarded to the vendor chosen as a preferred vendor for the agreed upon good or service. 
2. The contract will be good for three academic years and eligible for a two year renewable extension. If the University is satisfied with the vendor, there is opportunity for ongoing renewal to establish long term relationships as long as pricing stays competitive. 
3. Continuity of service: Once the contract term is fulfilled, the vendor will be eligible to submit an updated proposal for preferred vendor consideration. Proposals submitted will be included in the contract terms and PLU will hold the vendor responsible for the proposed service.
4. Utilization of Preferred Vendors 

Prioritization and implementation: Whenever possible, university departments should prioritize the use of preferred vendors for their purchasing needs. 

Exceptions: In certain circumstances, exceptions to the preferred vendor policy may be granted with appropriate justification and approval from Procurement and/or Risk Services. 

5. Monitoring and Review 

Performance Monitoring: The performance of preferred vendors will be monitored regularly. Department sponsors are responsible for maintaining good records and communicating early with campus partners and vendors when vendor performance is substandard; or when performance is laudatory. 

Periodic Review: The list of preferred vendors will be updated every other academic year to ensure continued compliance with policy requirements and communication with the campus community. 

6. Policy Ownership and Administration Pacific Lutheran University Procurement office in partnership with Risk Management is responsible for the administration of this policy.

Group Purchasing Organizations are designed to leverage the purchasing power of many institutions. By partnering with other GPO members, PLU can obtain discounts from vendors through collective buying power. Pricing negotiations are executed by the GPO, relieving departments and the University as a whole from the competitive bidding process. A list of Group Purchasing Organizations that PLU is a part of have been provided below.

• E & I Cooperative Service – Nonprofit Organization specializing in education
• Omnia Partners – Cooperative that operates across many different industries
• Sourcewell – Provides contracts for both educational and government sectors
• OETC – Consortium for educational technology products

Pacific Lutheran University is also registered with the Washington State Department of Enterprise Services and is, therefore, eligible to use State Contracts.