A. Determination of Need

The Purchasing Department has developed a list of preferred suppliers who are committed to providing the university with specified goods and services at discounted rates. Before creating a Request for Information, Proposal or for Quotes, contact Purchasing to determine if departmental needs can be met by a University supplier, an existing contract or by using internal university resources (print shop, food services, marketing).

For all other purchases, if the dollar value of the purchase exceeds the University's competitive bidding thresholds, the initiating department, working with Purchasing, must obtain at least three competitive bids or quotes in writing. The formality of the bidding process is determined by the level of financial commitment and discussions between the department and Purchasing. When an RFP or RFQ is contemplated, formulation of the bid solicitation request should begin at least three (3) months before the product or service's estimated delivery or start date.

Regardless of the acquisition method used, documentation, authorization, compliance with university procedures and conflict of interest integrity is the responsibility of the initiating department, as is responsibility for verifying the actual receipt of goods or services, in the quantity, quality or manner ordered.

B. Preparation of the Bid Request

As a general matter, RFPs are used when departmental needs can be met in several ways, the ultimate product is uncertain, or the scope of work could change. An RFP allows competing vendors to price and describe proposed methodologies or processes for meeting the department's stated need. Most service purchases should use an RFP to request competitive bids. An RFQ should be used when a purchase has clearly defined parameters and the scope of work is unlikely to change. RFQs provide clear specifications for the desired good or service, thus are most appropriate when the item sought is standardized and supplier products are very similar.

With Purchasing's assistance, the following baseline bid request data should be developed:

• A clear and accurate description, including specifications, of the requested product or service, as a whole or broken out by components 
• Professional skills and qualifications 
• Deliverables, timetables, schedules 
• Technical or business requirements 
• Software or hardware functionality 
• Warranty / fitness for use expectations 
• Anticipated associated service (installation, maintenance, training, upgrades, handling fees) 
• Payment terms

If the lease of property is being considered, the department and Purchasing must work with the Finance Office to determine if a lease or purchase is the better financial option for the university to entertain.

C. Vendor Selection

Federal regulations and best business practices require that awards be made to vendors whose responses to solicitations are the most advantageous to the University, based on quality, price and other relevant factors. Accordingly, an analysis of the cost of goods or services sought must be performed by the requesting department and documented as part of the vendor selection record. Any personal interest or relationship between a vendor and any LIU employee involved in the acquisition process must be disclosed.

Every effort should be made to utilize suppliers who can certify that they meet federal and state standards for small, disadvantaged, minority and/or women-owned vendors.

Bids and quotes submitted to the university are to be held in strictest confidence. Under no circumstances should vendors be given information about bids or quotes from competing sources.

D. University Contracts

To expedite the procurement process, the university has developed a series of contracts for use when the goods or services in question require total payments in excess of $5,000, or $25,000 for construction work. Form A is for professional or consultancy services of any kind; Form B is for computer software and information technology services. Form C is the University's standard contract for construction projects. Other useful forms are located in the Purchasing Department database.

Some situations will require modification of a university form or approval from the operational area's university Officer or Director. For example, the Vice President for Academic Affairs authorizes academic affiliations and off-campus course offerings; if a financial account is needed to receive or distribute funds, the Vice President for Finance also must approve. The Office of Sponsored Research approves agreements funded by public or private grants that require substantive work by investigators at LIU or elsewhere. Campus Facilities manage architectural, general contracting, engineering and other services for construction, renovation, maintenance and alteration projects for the university.

In other situations, a university contract may not suffice. Whenever a vendor or third party proposes a new agreement or lease, it must be reviewed by Counsel's Office to ensure that that all necessary provisions are included, and that risk is not inappropriately transferred to LIU. The review process for contracts requiring review by Counsel's Office, the Finance Office or Risk Management should be started at least one (1) month before the anticipated effective date.

The types and level of insurance coverage required by the University's contracts and indemnification riders have been determined by the University's Risk Manager, Counsel and the Vice President for Finance, but may be modified to fit the circumstances of a particular engagement. Indemnification provisions establish the circumstances in which parties to the contract will hold each other harmless, should a claim or suit arise out of the transaction, activity or services specified in the contract.

All agreements – whether a university contract or not – must be signed by an authorized representative of the vendor, certificates of insurance produced and the agreement reviewed and formally approved by the appropriate University officials BEFORE any work, the delivery of goods or services, or the usage of any university facilities may commence.