1. All purchases of either a single item or multiple items on a single PO should have either a quotation or bid under the following minimum guidelines:
1.1 Purchases <$5,000 require routine price checking. 1.2 Purchases between $5,000 and $25,000 require a minimum of three quotations. The names of the companies, the names of the individuals preparing the quotes, and the quote amounts must be noted in the justification section of the requisition and documentation must be attached to the requisition. No PO will be issued until this information is reviewed by Purchasing. 1.3 Purchases >$25,000 require a minimum of three written bids. A formal bid process will be used. All documentation of the bid process, including participants must be submitted with the requisition and reviewed by the Purchasing Manager before any commitment is made. 1.4 When a bid is required, the requisitioning department is responsible for specifying all requirements such as price, quantity, technical specifications, concise scope of work, quality expectations, delivery date required, supplier's terms, insurance requirements, additional rates and fees (permits, certifications) etc. 1.5 There may be specific instances where obtaining quotes or bids is not feasible. This includes situations where a particular supplier is the only source for an item or service, or when a particular supplier must be used due to special circumstances.
1.5.1 A sole source is defined as the ONLY supplier for a particular item or service. For each order over $5,000, when competition is determined not to be feasible due to the sole source nature of a product, service or supplier, a Sole Source Justification Form must be completed during the requisition process. 1.5.2 A single source is defined as a supplier chosen based on having an immediate past experience, special delivery capabilities, proprietary rights, compatibility with existing equipment or supplies, specific design or performance features essential to maintaining continuity, availability of parts or maintenance, or for lack of time in true emergency situations. For each order of this type that is over $5,000, a Single Source Justification form must be completed during the requisition process.