Purchasing Checklist Instructions

Instructions for Completing the Purchasing Checklist and Bid Summary Form 

A)  Must be completed a) for all purchase transactions that equal or exceed $5,000 and that are to be committed to a non Pre-Qualified Supplier; and b) for all purchase transactions that equal or exceed $150,000 to be committed to a Pre-Qualified Supplier. 

B) The completed form must be sent to the Purchasing Department (Purchasing@luc.edu) upon submittal of a purchase requisition. 

C)  Supplier Selection

• Describe the goods and/or services being procured: Describe the product(s) or service(s) in enough detail so that an auditor, who may know nothing about what you’re procuring, will be able to understand what is to be acquired (e.g. product name, part/model number, included accessories, etc. for items; major deliverables in the Scope of Work for services.) Refer to and attach related documentation.
• List the three most competitive quotations/proposals solicited and received: Bidding suppliers should be given the same Requirements Document (that you will write) which details the minimum requirements/specifications on which they will base their quote/proposal.  Potential vendors should be sent the requirements at approximately the same time, with their quote/proposals due by a certain date.
• Supplier/Consultant Selected (aka "Supplier Selection": The rationale for selecting a particular supplier needs to be documented. The Checklist details the acceptable reasons for choosing a source:
  • Low Bidder - To establish price competition (required unless the supplier is truly a "single or sole source"), obtaining three quotes/bids (for items/services that meet your defined minimum requirements) is considered the most effective method, often referred to as "3 bids and a buy".  If only two quotes/bids can be obtained, Purchasing may waive the requirement for the 3rd (depending on the price of the item and how its purchase is being funded), or Purchasing may help you find the third.
  • Best Evaluated Responsible Offer – If multiple suppliers provided bids/offers, and the one that was evaluated to be best was not the low bidder, detailed justification for that determination (of "best value" for LUC) needs to be documented.  When soliciting bids that will be evaluated on factors other than just price alone, that evaluation criteria needs to be documented before the solicitation, as well as the weighting assigned to it.  For example, criteria can include (in addition to price):  Experience supporting LUC, supplier's local presence, supplier's minority ownership, supplier's dedicated customer service, etc.  Each criterion should be assigned a weighting, with price usually assigned at least 50% of the overall decision in choosing the awarded supplier.
  • Sole Source/Non-Competitive Purchases - In a sole-source purchase, the absence of price competition may be acceptable only when specific criteria are met.  Be advised that Uniform Guidance (federal rules pertaining to Procurement) scrutinizes the use of Sole (or Single) Source purchases (in 2 CFR 200.320), limiting them to four distinct justifications:
    • Product/service is only available from a single source
    • Public Emergency Procurement
    • Federal Awarding Agency Authorization (i.e. the awarding agency specifically authorizes a non-competitive procurement after a written request from the Non-federal entity)
    • Inadequate competition after solicitation of multiple sources

D) Price/Cost Analysis Based On: Every purchase subject to this Form's use (including sole/single source designations) must have a documented price reasonableness determination.  Methods to determine price reasonableness include:

• Adequate Price Competition – At least two of three (or more) bids are deemed adequate and acceptable, with quotes usually falling within a competitive range (2% to 10%, depending upon the commodity or service). This documentation can be used to demonstrate price reasonableness for low bid and best evaluated responsible offer source selections.
• Historical Pricing – This method can be used if a purchase for the same (or almost exact) item was made (on a Purchase Order) previously, generally within the last twelve months. The previous purchase must have had an adequate and acceptable “determination of price reasonableness” analysis performed at that time.
• Price Sold to Federal Government – This method can be used if it can be documented that the supplier has recently sold the same or substantially similar items/services to the government for the same or nearly the same price. Documentation can be a copy of an invoice or a purchase order or a copy of contractor Internet price list page (example, contractor’s Government or GSA price list). 
• Supplier's Catalog Pricing or (Market) Price List – This method can be used if the supplier has current catalog pricing (generally found on its website) accessible by the general public. Documentation should consist of a copy of the catalog or website page that contains the product, as well as the dates the price is in effect/valid.
• Price Sold to Federal Government – This method can be used if it can be documented that the supplier has recently sold the same (or a substantially similar) item/service to the government for the same (or nearly the same) price. Documentation can include a copy of an invoice or purchase order, or a link to a contractor internet price list page (e.g. contractor’s Government or GSA price list). 
• Identification in a Notice of Award (Grant/Contract) – This method can be used if the award references a proposal that a) specifically identified the manufacturer, model and the price (only if a supplier quotation accompanied the proposal), or b) identified a specific person with an hourly rate for fixed price for that person.  This documentation demonstrates that the contracting officer has accepted the price as being deemed reasonable by the proposer.  The final price cannot exceed the budgeted line item in the award.Note: If the award is a federally funded contract or purchase order (not a grant), then the proposer must formally provide rationale with the proposal to determine price reasonableness at the time of the proposal before this method of price reasonableness is acceptable. Under FAR regulations (ref: FAR Part 15.404-3 Subcontracting Pricing Considerations), it is the responsibility of the proposer to determine price reasonableness, either at the time of proposal or at the time an acquisition is made. It is not the responsibility of the contracting officer. Documentation (copy of the award pages related to the acquisition and any supporting documents (e.g. copies of quotations, in-house estimates, other customer invoices, GSA pricing, etc.) supporting either of the above situations must be provided to the Purchasing Department.
• Comparison to In-house Estimate – This method can be used if an in-house expert (researcher, developer, engineer, etc.) has created a breakdown of estimated cost prior to the issuance of the solicitation, and that broken out estimate can then be used to compare the proposed supplier price to determine reasonableness.  Major price differences must be justified. 
• Comparable Customer’s Invoice – This method can be used if the supplier is willing to provide a recent invoice for the same or similar items/services sold to another educational or research institution at the same/similar price.
• Cost Analysis – This method can be used if a cost analysis is performed that breaks down the price elements to include direct costs (e.g. labor, materials, capital, etc,) as well as indirect costs (e.g. overhead, G&A, and profit.)

E) Certificate of Current Cost and Pricing: If federal government funds are being used and the order is equal to or exceeds $750,000, cost and pricing data should be obtained in accordance with FAR Part 15.403 and 15.406-2, as applicable.

F) Small Business Utilization: When using federal funds under contracts, Public Law requires that certain types of small businesses must be used to the maximum practicable extent. If none of these types of businesses are solicited, it must be explained why not. If they were solicited and not chosen, that must also be explained. For all other procurements, use of small businesses is strongly encouraged by Loyola, as well as by federal, state, and local agencies and other institutional and private providers of funds.

G) Small Business Utilization Plan: If federal government funds are being used, and the subcontract is equal to or exceeds $750,000, and the sub-award is to an entity other than a small business, a Small Business Plan must be acquired from the sub-awardee in accordance with FAR 52-219-9.

H) Identification and Approval: Once the Checklist has been completed, the person who is filling out the Checklist is noted, and the department (for which the items/services are being ordered) is also noted.  Next, the departmental approval signature (must be that of someone other than the requester or the person filling out the form) needs to be provided.  Finally, the completed Checklist must be submitted to the Purchasing Department (at purchasing@luc.edu) for review and acceptance.