When is a Competitive Solicitation Required?
State of Washington and Federal purchasing rules require that purchases over the Direct Buy Limit be competitively solicited in the absence of a contract, funding source mandate, or a sole source justification. Procurement Service buying staff are responsible for issuing competitive solicitations.
Competition requirements are met by Procurement Services issuing an RFx (Request for Quote, Request for Bid, Request for Quotations and Qualifications, or Request for Proposal). Completion time for the RFx varies based on complexity and value of the goods and/or services. Procurement Services works with the requesting department and other experts in developing the timeline, specifications, and/or statement of work (SOW) for the RFx, and in the evaluation process.
The solicitation process is typically determined by the risk associated with the dollar amount of the purchase.
Cumulative Purchases Over the Direct Buy Limit
Unless purchased from a contract vendor, or deemed a valid sole source, a purchase expected to exceed the Direct Buy Limit, regardless of the period of time, must be purchased competitively through Procurement Services. Such purchases are initiated by the campus customer by submitting a request to Procurement Services or consult a Procurement Services Category Expert for guidance.
MWBE (Minority and Woman Owned Business)
The University of Washington endeavors to promote inclusiveness for all business enterprises and especially to increase the level of participation for diverse businesses through many avenues, including the purchases made by UW. Procurement Services has a goal of spending 6% of campus goods and services expenditures with State of Washington Office of Minority and Women Business Enterprises (OMWBE) Certified Minority Business Enterprise (MBE) and 4% with OMWBE Certified Women Owned Businesses (WBE). Competitive solicitations are one method Procurement uses to meet these goals:
- Informal solicitations are those solicitations between $10,000 and $100,000 that require limited competition and do not require advertising. Informal solicitations require quotes from a sufficient number of vendors to validate price reasonableness. Informal Solicitations should be sent to at least 3 vendors and must include one (each) OMWBE certified MBE and WBE, in accordance with RCW 28B.10.029.
- Formal solicitations are those solicitations over $100,000 (over the life of the purchase) that must be formally advertised and provide broad competition. These solicitations are posted in WEBS (Washington Enterprise Business Solution), both to comply with state law and to maximize opportunities for small and diverse businesses.
INFORMAL COMPETITION | INFORMAL / FORMAL COMPETITION | FORMAL COMPETITION
|
|---|---|---|
| Solicitation is not required to be advertised | The solicitation may or may not be advertised | Advertising is required |
| Risk associated with purchase is low to moderate | Risk associated with purchase is moderate to high | Risk associated with purchase is high |
| Solicitation may take from 1-4 weeks* | Solicitation may take 4-6 weeks* | Solicitation may take 8-10 weeks or longer* |
| Item(s) specifications are clear | Limited specifications and/or specifications need to be developed | Many iterations to develop final specifications and evaluation criteria |
| Award is based on price and/or minimal non-price factors with little or no negotiations | Evaluation team/criteria to be developed | Significant involvement by campus customer(s), Purchasing, potential suppliers and successful supplier |
| Award based upon price as well as non-price factors/terms and conditions | Long-term, campus-wide contract possible | |
| Limited supplier negotiations | Contract may be made available to other institutions | |
| Award based upon price as well as non-price factors as well as other terms and conditions | ||
| Complex supplier negotiations | ||
Notes Time frame(s) may vary based on complexity of procurement and market. This diagram is meant only to illustrate the sequence of steps in a typical procurement. State procurement policies require that a complex solicitation be available to suppliers for a minimum of 45 days. Life of the Project If purchasing services for multiple years and the anticipated total spend over the life of the project will be over $100k, a formal solicitation is required. Solicitations valued between 100k - 150k are required to be awarded to the lowest responsive and responsible bid from a small business (as defined in RCW 39.26.010(22)(a) or veteran-owned business, unless none of these businesses are responsible and responsive to the solicitation. Click here for guidance to roles for campus, Purchasing and suppliers during the solicitation process. | ||