Overview
In general, it is the practice of the University of California (UC) to meet its need for goods and services at the lowest overall total cost or best value, while affording maximum opportunities to those who wish to become suppliers to the University.
Competitive bidding defined
Soliciting price quotes from multiple qualified bidders demonstrates that purchasers have exhibited due diligence and are manage expenditures in compliance with policy. The University of California and UCSF have minimum thresholds for compulsory competitive bidding, but also encourage gathering bids on smaller purchases when possible.
Threshold for bidding requirement
In general, policy requires that all purchase agreements involving an expenditure of more than $100,000 annually, be competitively bid. For more detail, review UCOP Business and Finance Policy B-43.
Transactions $100,000 or more must have a new or existing formal competitive bid. This must be performed by a Supply Chain Management buyer. The buyer will evaluate a minimum of three qualified bids before moving forward with the requisition.
- If this transaction is using a UCSF or UC systemwide agreement, include the bidding number from that bid. If you do not know that number, please contact your department-assigned buyer.
- If bidding has not already occurred, contact your buyer to start the process. Note that specific bidding activities may take weeks or months. We advise you to contact your buyer early in the process.
Purchasers will complete the source selection price reasonableness form embedded in BearBuy.
Soliciting bids for transactions under threshold
The UC Office of the President also strongly encourages, when appropriate, that procurement transactions under $100,000 be competitively bid.
The best method to demonstrate price reasonableness is actually to document the competition’s pricing for the product you’re purchasing. For instance, having pricing from at least one other source and then documenting that within the BearBuy requisition is a best practice.
Learn more about Source Selection and Price Reasonableness documentation here.
Advantages of Purchasing with Certified Small and Diverse Business
To help reduce barriers in participation, the University of California’s (UC) targeted procurement program features a streamlined purchasing process within a certain dollar threshold when purchasing with SLD businesses. All non-construction UC contracts and procurements that cannot be purchased through an existing strategically source agreement between $10,000 to $250,000 are eligible. The streamlined process involves:
- Submission of informal quotes
- One quote for purchases $10,000 up to $100,000
- Two quotes for procurements of $100,000 up to $250,000
- Direct quote to award (no request for proposal, no advertising, instant awards, no protests) Use the Explorer Professional Tool to search for qualifying SLD suppliers.
Use the Explorer Professional Tool to search for qualifying SLD suppliers.
To learn more about supplier diversity initiatives, visit our Campus Supplier Diversity and Inclusion Program.