Number IPP 14

Dated: 05/30/12
Replaces: 11/17/10

Internal Policy and Procedures

Waiver of The Competitive Process



The competitive bid process may be waived if it is determined with acceptable justification that competition is neither practical nor in the best interest of the State. UW-Madison has authority to waive competition up to $24,999.99. A governor's waiver is required for $25,000.00 and over.



I.           Transactions between $5001.00 and $25,000.00

1.       The agent must review the provided justification to determine if acceptable. If documentation is not provided in one of the following formats listed, the agent must contact the department to resolve. Documentation is to be properly labeled and retained in the vendor file. Delegated agents must retain justification in their file for audit purposes.

1.1       A Non-Competitive Purchase form (see PPP #19).

1.2       A memo from the department detailing why a waiver of competition is justified.

1.3       Detailed note written on the requisition. The agent may enter requisition action or photocopy the requisition for the vendor file (see #5 below).

2.       If after attempting to take competitive bids the agent determines the transaction is a sole source, agent must document the justification (see #5 below).

3.       A firm price quote must be obtained from the vendor.  If over $5,000, the quote must be in writing.

4.       The agent must indicate the appropriate UW-Madison waiver authority on the purchase order as (xx)-9999 (XX=current fiscal year) in the waiver field. Some transactions may be waived based on an existing waiver, below are justification letters that may be used.
JL 101 - Display and Classified Advertising
JL110 - Medical or Scientific Testing and Analyzing Services
JL106 - Maintenance and Repair Parts (Sole Source)
JL105 - Professional Entertainment and Performing Artists
JL104 - Computer Software (Sole Source)
JL102 - Alcoholic Beverages for Resale
JL111 - Book Manuscript Editing, Design, Editorial Typing & Marketing Services

5.       The agent must enter the requisition action "WAIV" upon releasing the purchase order. WAIV requires a detailed explanation or a note to "See justification on file" (more than one requisition action screen may be required). See PRO-501 for acceptable circumstances.

II.        Transactions $25,000.00 and over (not applicable to delegated agents)

            Unless an emergency situation exists (refer to PRO-501, a governor's waiver takes 6 to 10 weeks to be approved or denied. Use of the competitive process is desirable when possible to minimize delays in processing the transaction.

1.         Follow section I, items 1 through 1.2 above.

2.         A request for purchasing approval (RPA) packet must be routed for the required review and approval of Purchasing Services Director, UW-Madison Vice Chancellor-Administration, the Department of Administration and the Governor.

3.         The RPA packet (available via the web forms page) contains the following forms which the agent, in accordance with section I, item 3 above, is required to complete and forward to Bid Processing for processing. The agent will electronically reassign the requisition to "BID."

  • Request for Purchasing Approval/Authority (DOA-3046)
  • Request for Purchasing Approval/Authority Checklist Memo to Director of DOA Procurement (DOA-3046-A)
  • Waiver form
  • Request for Contractual Services [for service only]
  • Justification letter from department(s)
  • Copy of Requisition (if one attached)
  • Copy of previous RPA form (if a renewal)

 3.1       Bid Processing will tickle for appropriate time for each level of approval and advertise as follows:

3.1.1    1 week "PND AVCBS SIGNATURE"
(AVCBS = Assistant Vice Chancellor for Business Services, Martha Kerner)

 3.1.2    After VCBS signature is received, waivers are posted to the Public Notices website (see Procedures for Using Public Notices Website) per PRO-601. Alternatively, a legal notice may be placed in the official state newspaper. (Wisconsin State Journal).

 3.2       Upon written or verbal approval from DOA, Bid Processing enters approval numbers on the system. The bid jacket is forwarded to the agent and a purchase order may be issued using UW waiver number as purchase authority on the purchase order.

3.3       If approval is denied, the bid jacket is returned to the agent.

3.3.1    The agent will contact the department to decide whether to bid or cancel the requisition.

3.3.2    If the department decides to bid, the agent will begin the bid process.

3.3.3    If the department decides to cancel, the agent must cancel the requisition on the purchasing system and notify Bid Processing of the action taken. Bid Processing will cancel the waiver on the purchasing system and file it with the dead waivers.

PPP #19 (Non-Competitive Purchases)
PRO-601  (Legal/Public Notice)
PRO-501 (Waiver of Bidding Process)