As a public institution, UC encourages competitive bidding, as it helps the university obtain services at the lowest possible cost.
There are multiple situations where departments are to attach one or more supplier price quotes to their Aggie Enterprise Requisition, if not purchasing from one of the Aggie Enterprise catalogs or an established university purchasing agreement. These price quotes help demonstrate that due diligence was taken in the identifying and selecting the most appropriate supplier for the requested purchase. When competitive bidding is required, the Procurement & Contracting Services team completes all necessary steps of the bidding process.
Competitive Bid Requirements
Independent Consultants
Current law requires any consulting agreement over $100,000 be competitively bid, though the university strongly encourages consulting contracts in excess of $50,000 be bid. Note that the $100,000 threshold is the total contract amount, not just the cost for the first phase.
It is imperative to develop a total project budget to ensure that all phases can be completed within the no-bid threshold. If they cannot, the project must be bid at its inception.
NOTE: Section 10515 of the California Public Contract Code strictly limits a consultant’s ability to perform services, procure goods or supplies, or take any action related to Consultant’s findings and recommendations pursuant to this agreement. If you believe the consultant should complete specific tasks that may result from the outcome of their review, please inform Business & Revenue Contracts when your original request for an RFP (Request for Proposal) and/or agreement is submitted.
Independent Contractor and Vendor Agreements
As with independent consultants, current law requires any independent contractor agreements and agreements with vendors over $100,000 be competitively bid. Note that the $100,000 threshold is the total contract amount, not just the cost for the first phase.
It is imperative to develop a total project budget to ensure that all phases can be completed within the no-bid threshold. Any service agreements between $50,000 and 100,000 do not need to be competitively bid so long as the price is justifiable—typically by obtaining three quotes.
Professional Services
Contracts for professional services (see Category B on Agreement Types page) are not legally required to be competitively bid as long as the price is justifiable (the price must be proven to be fair and reasonable). However, competitive bidding is strongly encouraged whenever possible.
Revenue Agreements
For revenue agreements, if the university will be receiving a commission or payment based on the presence of or an activity of a contractor, the contractor will be financially benefiting from the university. So long as the financial benefit is substantial and exclusive only to one contractor, a competitive bid should be held to allow all interested parties to have the opportunity to bid on the partnership.
Competitive Bidding Requirement Exemptions
If a purchasing situation arises where a department feels there is only one qualified supplier that can fulfill the specific request for goods and services, and the department wishes to waive any applicable competitive bid requirements that are completed by Procurement & Contracting Services, the requesting department is required to fully complete the following two forms and attach them to the applicable Aggie Enterprise Requisition document:
- Source Selection & Price Reasonableness Justification Form
- Individual Disclosure Statement for Proposed Sole Source Purchase
See the Sole Source Knowledge Based Article for more information and instructions.
Additional Information
Procurement & Contracting Services has a responsibility to substantiate that all payments made to contractors are fair and reasonable. For this reason, if a competitive bid process is not required, the requesting department may be contacted for additional information about pricing and the reason for selection of a particular contractor.
Requesting departments should electronically attach copies of quotes and proposals received from other service providers to their Aggie Enterprise non-catalog Requisition request.