502.03

Northern Arizona University
Purchasing Policy and Procedure

Award of Contract

POLICY:

The award of a contract for purchases costing less than $50,000 shall be made to the supplier that satisfies the University's requirements for quality, delivery, and price. As a general practice, the award will be made to the supplier offering materials or service at the lowest cost to the University. However, the Director of Procurement may authorize a contract award to a small, disadvantaged business if the supplier demonstrates the ability to satisfy quality and delivery requirements at a cost that is competitive.

REQUEST FOR QUOTATION (RFQ)

Contracts shall be awarded to the lowest responsible and responsive bidder whose bid conforms in all material respects to the requirements and criteria set forth in the Request for Quotation (RFQ). Tax levied by any political subdivision of the state is not to be considered as a factor in determining the low bidder. Prompt payment discounts ("cash discounts") will normally not be considered in determining the lowest bidder unless specified in the bid invitation, and then only if the cash discount period is fifteen (15) days or longer. If the bid is awarded to other than the low bidder, the reasons shall be clearly documented in the bid file.

In case of a tie for low cost, award will be made by drawing lots. At least one (1) witness in addition to the buyer will be present when lots are drawn, and the results will be recorded and included in the contract file.

REQUEST FOR PROPOSAL (RFP)

The contract shall be awarded to the responsible proposer whose proposal is the most advantageous to the University, taking into consideration the evaluation factors set forth in the Request for Proposal (RFP). No other factors or criteria may be used in the evaluation. Numerical weighting may be assigned to specific criteria but is not required. Price will be a factor, but award will not necessarily be made to the lowest proposer.

COST

The lowest cost in either bids or proposals may be measured using life cycle costing, taking into consideration transportation, energy cost, ownership costs and other associated costs.

MULTIPLE AWARDS

A contract may be awarded to more than one (1) supplier only when a single supplier cannot provide all of the University's requirements in a timely manner.

It may be in the University's interest to make a multiple award to ensure a supply of critical goods or services or to reduce acquisition cost. The reasons for making a multiple award shall be documented in the bid file.