Market Research/Obtaining Quotations
Note: all information below regarding market research and obtaining quotations can be found in sections 2.0 and 7.2 (respectively) of the Policy of Procurement and Engagement of Services ("POLICY").
MARKET RESEARCH: The right to perform and engage in market research for goods and services is encouraged of all University faculty, staff and employees. Market research will be performed by procurement personnel of the University if the initiator chooses not to be involved in this aspect of procurement. The authorized acquisition action in solicitation, negotiation, commitment, purchase, or engagement of services is reserved by authority as described in statement 1 of the POLICY. Market research is defined as the information gathering from potential suppliers of estimated price, product description, features, mechanisms, operational characteristics, specifications and availability or manner of performance of goods, equipment or services that pursue the identification of, or solutions to, the needs of an employee of the University.
OBTAINING QUOTATIONS: The University "small dollar procurement threshold" is established at $25,000.00 and below. Procurement documentation for this threshold shall be performed and controlled to demonstrate that the prices for goods or services requested are fair and reasonable as determined by informal assessment of readily available open market pricing information in published form, telephone quotations of price and availability, price comparisons to recent open market purchases, or, by professional, academic or administrative current market knowledge and expertise in the industry or market related to the acquisition. Such price reasonableness analysis may be certified by the employee who gathered the information or initiated the request of acquisition. Documentation will be the completion of the "RECORD OF PURCHASE" form provided on the reverse side of the University Purchase Request or "University Departmental Purchase Order or any automated procurement system method authorized by the Director or Associate Vice President for Finance." Such documentation shall serve as the procurement file for the small dollar procurement threshold. If the small dollar amount of procurement is $5,000.00 or less, no written documentation of price reasonableness is required, and the signature of the initiator in the procurement process shall serve to substantiate that informal price analysis as presented by the price shown on the requisition or order document has been determined elsewhere or by other means.
For more information, please view Procedure 5.062: Price Reasonableness by Analysis Methods for Purchases Greater than $5,000, Less than $25,000.