Sole Source: the term used to designate that there is only one supplier that exists that is capable of providing a particular item or service.

 

Single Source: the term used to designate that even though a product or service is available from various sources, it must, for specific and justifiable reasons, be purchased from one specified supplier.

 

The reasoning for a sole/single source purchase from a non Pre-Qualified Supplier needs to be substantiated by providing a written explanation on the Purchasing Checklist and Bid Summary Form.  The price must also be justified.   For Pre-Qualified Suppliers, the Purchasing Department administers the selection process and documents the justification for selection.  

 

Should a departmental user wish to add a supplier(s) to the Pre-Qualified Supplier Directory, the Purchasing Director will work with the user to ensure the bid process met established procurement standards, including federal guidelines if applicable. 

 

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In order to obtain the best possible pricing and to remain compliant under Uniform Guidance 2 CFR 200.318–326, FAR regulations and University policies, competitive bidding must be conducted to the maximum extent possible, as follows:

 

Less than $5,000: The purchase of goods and services by a buyer should be made by contacting Pre-Qualified Suppliers first, but may be made directly from any responsible supplier (within the guidelines of this manual) of his/her choice. If a non Pre-Qualified Supplier is chosen, the Buyer has an obligation to determine and secure reasonable prices on behalf of the University.

 

Equal to or greater than $5,000 with non Pre-Qualified Suppliers: A minimum of three (3) competitive quotations (two if approved by Purchasing) or a documented attempt to obtain three (3) quotations, but only receiving two responses, are required when obtaining goods and services from non Pre-Qualified Suppliers. The Purchasing Checklist and Bid Summary Form must be submitted to document the quotation process.

 

Equal to or greater than $25,000 with non Pre-Qualified Suppliers: Three (3) or more competitive quotations, or a documented attempt to obtain three (3) quotations but only receiving two responses, are required when obtaining goods and services from non Pre-Qualified Suppliers. If the amount is over $30,000, these must be written. A Purchasing Checklist and Bid Summary Form must be utilized to document the quotation process.

 

Any bid solicitations where an individual order is expected to exceed $25,000 with non Pre-Qualified Suppliers must be conducted with the assistance of Loyola Purchasing due to the additional requirements for proper documentation and determination of price reasonableness. Bid solicitation can be a team effort between Purchasing and the requestor/researcher, or the Buyer can run the competitive process him/herself within the appropriate dollar limitations.  The requester needs to define the bid requirements/scope.  Purchasing will retain bid records in its central repository for 7 years.

 

The types of solicitation that can be used are: Request for Quote (RFQ): Request for Proposal (RFP): Request for Information (RFI): (Reference the Definitions Section 1.4 of this manual)

 

Pre-Qualified Supplier: If a Pre-Qualified Supplier Agreement is in place, the source selection process was conducted prior to the initiation of the Pre-Qualified Supplier relationship. Further competition during the term of that agreement is not required, unless the Buyer has knowledge of substantial changes in the marketplace for that commodity, or above certain dollar limitations as
identified in the Buyer Actions Matrix.

 

Competitively Bid Items from Member Cooperatives: Items that can be purchased under competitively bid contracts through a Cooperative in which the University is a member i.e., Educational & Institutional Cooperative (E&I), the Association of Jesuit Colleges and Universities (AJCU), U.S. Communities, National IPA, and the Horizon Resource Group may, at the discretion of the Purchasing Manager, be exempt from competitive bidding requirements, since competitive bidding was conducted at the time the Cooperative contract was awarded.

 

Sole Source Purchases: If competition is determined to not be feasible due to the sole source nature of a product/service or supplier, and the order equals or exceeds $5,000 with a non Pre-Qualified Supplier, a written sourcing justification and a determination of price reasonableness is required prior to the commitment being made.

 

Single Source Purchases: If competition is determined to not be feasible due to a single source nature of an item, service or supplier, and the order equals or exceeds $5,000 with a non Pre- Qualified Supplier, a written sourcing justification and a determination of price reasonableness are required prior to the commitment being made.

 

Sponsor-owned Items Controlled by Loyola University Chicago: Goods/equipment that will be controlled by Loyola, but are purchased with sponsor funds and will remain the property of the sponsor, shall be purchased according to the provisions of the sponsor agreement.

 

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Loyola University Chicago will only conduct business with reputable and stable suppliers who are capable of providing the goods and services required. US suppliers must provide either a Federal Identification number or a Social Security number and sufficiently complete a Supplier Information Form indicating business size, type, NAICS number, classification, and product/services line(s), and a Substitute W-9 (domestic) form. Failure to provide such information may necessitate the locating of a different
supplier to satisfy the requirement.

Loyola Purchasing will ensure that Pre-Qualified Suppliers do not appear in the U.S. Government Lists of Parties Excluded from Federal Procurement or Non-Procurement Programs or are identified on the anti-terrorist list. Buyers are responsible for this suspension and debarment verification when non Pre-Qualified Suppliers are used on federal government grants, cooperative agreements or contracts in accordance with Executive Order 12549, Executive Order 12689, and 48 CFR 909.4.  

 

A written certification from the supplier is also required when federal funds are being used. Therefore, when non Pre-Qualified Suppliers are being used, the person making the commitment to the supplier is responsible for obtaining the certifications. All certifications shall be kept on file in the Purchasing Department. The Supplier Conflict of Interest and Compliance Certification Form can be located on the Purchasing website.

 

To qualify suppliers, Purchasing may request a Dun and Bradstreet or other business financial and background informational reports to determine the financial stability and acceptableness of suppliers who require significant pre-payments or with whom Loyola University has no previous experience. Purchasing will also work to develop new suppliers by inspecting products and facilities. The expertise of the campus community will be utilized to ensure that suppliers can achieve technical requirements. Supplier files maintained by Purchasing may also contain historical experience information. Purchasing will review Pre-Qualified Suppliers periodically and compare with Dun and Bradstreet and other ratings to ensure the continued stability of those suppliers. 

 

The University must select suppliers who offer the greatest total value for the products and services purchased. The University will employ techniques to develop small, small disadvantaged, small women-owned, small veteran-owned, small disabled veteran-owned and small HUBZone businesses capable of providing the products and services needed by the Institution.

 

Purchasing will request, as directed by Accounts Payable, that all suppliers complete either a Domestic or International Supplier Information Form and either a W-8 (foreign) or Substitute W-9 (domestic), as required, tax withholding form in order to obtain full and proper information and to enter the supplier into the automated Lawson payment system.

 

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Loyola University Chicago will suspend or remove a supplier from the solicitation process if any of the following causes occur on one or more Procurement Card transactions, purchase orders, Web-orders or contracts:

 

• Unsatisfactory performance (i.e., poor performance, delivery or default on one or more ProCard transactions, purchase orders or contracts, including any provision of contract terms, for construction service or products/services, including but not limited to over-shipments, undershipments, providing damaged or defective goods, making unauthorized substitutions, billing errors, unallowable billings, service deficiencies, or poor workmanship) unless the unsatisfactory performance is caused by acts beyond the control of the business, such as acts of God, acts of war, terrorism, fires, or strikes (force majeure).
• Conviction of the business or an officer or principal shareholder for commission of a criminal offense in connection with obtaining, attempting to obtain or performing a contract or subcontract.
• Violation of anti-trust or other laws or statutes including those relating to the submission of bids.
• Bankruptcy or pending bankruptcy of the supplier.
• Unethical practices or violation of Loyola University’s policies (including misrepresentation on certifications).
• Inclusion on the US Government Lists of Parties Excluded from Federal Procurement or Non-Procurement Programs or the anti-terrorist list.

The Loyola Purchasing Manager has the authority to suspend a business, for cause, from participating in the University’s solicitation process or in University business. In order for a supplier to modify or shorten the suspension period, supporting documentation must be submitted to the Purchasing Manager, including but not limited to:

 

• Bona fide change in ownership and management of the business
• Elimination or mitigation of the cause for which the suspension was imposed 

Upon termination or expiration of the suspension period, the supplier shall be eligible to participate in the bidding process or receive University business. If a supplier is suspended a second time for the same cause, permanent suspension may result.

 

Delivery Issues or Failure to Perform 

 

Further steps required in instances of delivery or performance problems are:

 

• It is the responsibility of the requesting department experiencing dissatisfaction with the supplier performance to notify the Loyola Purchasing Manager, in writing, of the complaint.
• Purchasing will review the facts through discussions with the requesting department to determine the appropriate course of action. If an action is required with a University Pre-Qualified Supplier, the Purchasing Department will take the lead in resolving the issue.
• The requesting department may be required to provide specific details and reasons for dissatisfaction, in writing.

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Evaluation of strictly technical considerations, i.e., design and operating characteristics, are the responsibility of the requestor. It is the Buyer’s responsibility to negotiate all elements of the non Pre-Qualified Supplier purchase (i.e., price, quality, delivery dates, delivery methods, sale terms and conditions, etc.) with the supplier. When assistance is needed in interpreting any of these elements, the Purchasing Manager should be consulted (University Legal Counsel may also need to be consulted on
complex matters).

It is important that anyone making a purchase for the University with a non Pre-Qualified Supplier take note, where appropriate, to supplier terms and conditions and to insure that the language is fair to both parties. Negotiation should be used to make the best overall purchase. Anyone making a purchase with University Entrusted Funds can use Loyola Buyer/Purchasing Manager to assist them in the terms and conditions negotiation process.

 

Change Notices: Any time a contractual change is made to a sale agreement, all agreed upon changes should be documented. The Buyer should send the supplier a copy of the change documentation. This process will assist in determining liability or responsibility if there is a dispute with the supplier. For assistance in writing a change notice, contact the appropriate Loyola Buyer or Purchasing Manager.

 

 

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