The procurement of goods and services, whether using Institutional funds or sponsored funds, requires compliance with CSU Procurement rules and regulations.  When using sponsored funds, there may be additional sponsor terms and conditions that must be followed.  Therefore, it is important to understand how CSU and sponsor rules and regulations impact the procurement of goods and services needed to carry out work under a sponsored agreement.

Recently, Farrah Bustamante and Adriann LaRue with CSU Procurement Services, shared with the research community on things to know before making a purchase.  Understanding how procurement works at CSU may help avoid delays in the procurement process.

Purchases $5,000 or less

Small dollar purchases, up to $5,000, can be made with an automatic purchase order, University procurement card or Kuali disbursement voucher.  All grant-related purchases should be allowable and allocable to the sponsored agreement and made in accordance with CSU and sponsor regulations.

Purchases greater than $5,000

Procurement Services should be contacted for purchases greater than $5,000.  Depending on whether the purchase is for a good or service, there may be requirements for the Institution to provide documented quotes or issue an invitation for a bid or request for proposal.  These processes take time, so be certain to contact Procurement Services early.

Waiver of Competitive Bidding

Procurement transactions for goods greater than $10,000 or $25,000 or greater for services require competitive bidding.  There may be times when it makes sense to request a noncompetitive procurement for goods or services normally requiring a competitive bid.  For example, if an item or service is only available from a single vendor (sole source) or if a specific item is needed in order to continue a line of research, then it may make sense to seek a waiver of the competitive bidding process.  In these cases, a justification must accompany the purchasing requisition.

Factors that may necessitate a waiver of the competitive bidding process include, but are not limited to:

• Only one supplier is capable of providing supplies or services (sole source);
• The requested product is an integral part or accessory to existing equipment;
• Service is requested for existing equipment which can only be completed by the manufacturer or designated service provider;
• Requested product or service is essential in maintaining research continuity;
• Requested service requires unique skills or performance specifications; or
• The urgency of the proposed purchase and if a compelling need can be clearly demonstrated. Note: Lack of planning is not a justification for an urgent need!

 Small Business Program

Federal contracts exceeding $700K in total costs (direct and indirect costs) require a small business subcontracting plan.  This plan must specify dollar and percent goals for contracting with small, HUBZone (Historically Underutilized Business) small, small disadvantaged, small women-owned, veteran-owned small, and service-disabled veteran-owned small businesses.  This plan should be in place PRIOR to contract award.

Contact Adriann LaRue, Small Business Liaison Officer, Procurement Services, as soon as you receive an RFP (Request for Proposal) that requires a small business subcontracting plan.  Adriann can assist in drafting a plan and certifying vendors who meet SBA (Small Business Administration) qualifications.

Bottom line

When making a procurement greater than $5,000, contact Procurement Services.  Additionally, share information with Adriann LaRue regarding small businesses with which you work; and invite Procurement Services to your departmental meetings and meetings with PIs to learn more about CSU purchasing policies and to avoid unnecessary delays in the procurement process.