Using the Amount-Based Purchase Order Form

When buying goods (excluding equipment) or common services based on a dollar-amount limit rather than quantity, you would use the Amount-Based Purchase Order (PO) form within BearBuy. The dollar amount on an amount-based PO enables UCSF to have a supplier issue multiple invoices against a single PO. The amount-based PO is what suppliers often refer to as a blanket PO.

Common services, such as one-time equipment repair and DNA sequencing, can be purchased using the BearBuy Amount-Based PO form. Please also refer to Buying Common Services for additional guidance. If you do not have a specific service provider in mind, contact your department’s assigned Procurement Buyer for assistance in identifying suppliers for consideration.

When using the Amount-Based PO form:

  1. The not-to-exceed price or estimated contract value can be entered into the Price field on the form. If you are expecting a fixed or not to exceed price, note this in the Product Description field.

    Keep in mind that the not-to-exceed dollar amount (price) will have a tolerance of 10 percent or $500, whichever is less.
     
  2. Under the Health Insurance Portability and Accountability Act (HIPAA), UC is responsible for protecting access, use and disclosure of protected private patient information referred to as Protected Health Information (PHI) that a contractor will have access and or be exposed to. If PHI and HIPAA are involved, select “HIPAA” in the drop-down box on the BearBuy Form next to where it states, “If the supplier has access to Protected Health Information (PHI), select HIPAA. Otherwise select NO.”

    Note: If PHI/HIPAA is applicable and UC PHI is being transmitted or stored outside the University’s systems, you must initiate an IT Security assessment as soon as possible so as not to hold up release of your PO for this assessment.

Source Selection and Price Reasonableness


When making a purchase on a single requisition, using either federally funded dollars for goods or services of $10,000 or more, or non-federally funded dollars for goods or services of $25,000 or more, you must document both Source Selection and Price Reasonableness per Federal and/or UC/State policy/guidelines. This information must be documented in BearBuy.
 
Source Selection
Refers to the process of selecting and contracting with the most qualified proposal that meets UCSF’s requirements. There are four options for Source Selection that can be selected:

  • New or Existing Bid – 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 bidding has not occurred, contact your department-assigned buyer. Specific bidding activity may take weeks or months, we advise you to contact your buyer early in the process. 
  • Non-Formal Quotes –For transactions under $100,000, competitive non-formal (informal) quotes can be obtained by the department making the purchase, in lieu of the formal bidding process. The department should collect a minimum of three informal quotes from different vendors and attach them to the BearBuy requisition.
  • Registered Small Business –Transactions under $100,000 are qualified to be exempt from providing three informal quotes if using a Registered Small Business. 
  • Sole Source – Transactions under $100,000 where there is only one solution or option that meets UCSF’s requirements. If selected, you will be required to complete both the Sole-Source Justification and the Price Reasonableness portions of the BearBuy form. 
Price Reasonableness

The price paid by the University must be reasonable, one that does not exceed what would be incurred by a prudent person in a competitive business.  Required by the California Public Contract Code and FAR (Federal) provision. This information must be documented in the BearBuy requisition.
 
Documenting Reasonable Price: Back up your entries with listings, price histories, or other data. An auditor should not have to question anything. The following provides guidance on price reasonableness:

  • Need not be the lowest price available but offers the highest total value to the University
  • Can be established by market test, price or cost analysis, or the experience and judgment of the Procurement/Supply Chain Manager. Such judgment considers total value to the University
  • For transactions above $100,000, reasonable price is established through formal competitive bidding unless they are exempt from bid, in which case, a reasonable price is established via an adequate market test, set by applicable law or regulation, or supported by an appropriate price or cost analysis

The following are examples of how to substantiate Price Reasonableness, together with a discount (discount alone is not justifiable), in order of preference:

  1. Price competition – comparison of quotes
  2. UCOP(University of California Office of the President), State, or GSA contract pricing, or comparison with prices under existing contracts
  3. Prior price history with same vendor, same items over the past year
  4. Comparison with current, or recent prices for a similar item(s) with another vendor
  5. Market research, catalog or established price list (sales to general public - screen shot ok)