The University of California is required to obtain the lowest overall cost, while affording the maximum opportunity to all suppliers that can provide a specific product or service.
"The University shall meet its need for goods and services at the lowest overall cost while affording the maximum opportunity practicable to those who wish to become suppliers to the University." (PPM 350-10)
Purchasing agreements that have been negotiated with UC buyers meet price comparison requirements. The department complies with the price justification requirement by ordering items in AggieBuy or citing the agreement number on their Requisition in KFS. You do not need to include any price justification documentation when using a university agreement, thus using an agreement is the preferred procurement method.
Open Supplier Departmental Purchases
Each open supplier purchase (generally those below $10,000) requires price justification by the department. Departments should compare the prices of at least three suppliers (web suppliers, previous orders, or new suppliers) before placing an open supplier order on a Procurement Card or a Requisition in KFS. There may be restrictions on the price comparison process if purchasing with contract and grants. Check with the funding source if in doubt.
The departmental Request for Quotation form (available on the Forms page) can be used to secure prices from three or more suppliers for a delegated purchase. This form contains all the required information necessary to obtain accurate price quotes.
KFS Requisitions that Route to Procurement & Contracting Services
The Procurement & Contracting Services buyer assigned to a Requisition is responsible for conducting the necessary procurement functions.
The Procurement & Contracting Services buyers and analysts are trained professionals and are required to follow university policies to qualify suppliers, establish reasonableness of price, make an award and write the contract/order per the policies and procedures established by the University.
It is the buyer's responsibility to determine whether competition is required and to conduct the procurement, regardless of any departmental-supplied information on KFS requisitions. Departments may suggest suppliers on the Requisition for Procurement & Contracting Services to consider, but Procurement & Contracting Services will make the final supplier determination.
Supplier Price Quotes
A formal supplier price quote is a proposal with price/delivery/terms provided on company letterhead or company stationery. Typically, formal quotes will include a quote number, payment terms, delivery terms, expiration date of quote, terms and conditions, etc. The following do not constitute an official quote: email quotes, hand written notes on blank paper, and verbal/telephone quotes.
Quotes are not necessary when purchasing through AggieBuy or when purchasing against an established purchasing agreement in KFS.
The following scenarios require the use of one or more quotes:
- Request for Independent Consultant work: 3 supplier quotes required
- Request for Transactions at or above $10K and below $50K: 1 supplier quote required
- Request for Transactions at or above $50K and below $100K: 2 supplier quotes required
To expedite the processing of your KFS transactions in Procurement & Contracting Services, the requesting department should provide quote(s), whenever possible. Increased processing time is required if the buyer in Procurement & Contracting Services has to obtain the supplier quote(s).