Number PPP 19

Effective 8/13/07
Replaces 1/8/02

Purchasing Policy and Procedure

Non-Competitive Purchases

1. POLICY:
State of Wisconsin purchasing policy states the competitive bidding process is the preferred method for purchasing supplies or services and is to be used in every case unless it can be determined, and justified, that competitive bidding is neither practical on a given procurement, nor in the best interest of the University. A waiver of the bidding process may be requested on a case by case basis by submitting a completed Non-Competitive Purchase Request form with the requisition.

1.1 For transactions up to $24,999.99, UW-Madison Purchasing Services has authority to waive the competitive process.

1.2 For transactions $25,000.00 and above, Wisconsin law stipulates only the Governor may waive the competitive process.

NOTE: When requesting a non-competitive purchase over $25,000.00, additional information and justification may be required by UW- Madison Purchasing Services, UW System Administration, the State Bureau of Procurement, or the Governor's staff may ask for additional information during the process. Unless an emergency situation exists, a Governor's waiver takes from 6 to 8 weeks to be approved or denied. Use the competitive process whenever possible to minimize delays.

2. CONTACTS:
If you have any questions regarding non-competitive purchase requests or this policy, please contact the purchasing agent responsible for the commodity area or see PPP24, Special State Purchasing Programs.

3. USAGE:
Non-competitive purchases may be made when necessary and appropriate. Generally, the criteria is that the item(s) or service(s) is not available from any other source or that an emergency situation exists. Refer to 2.2.1 below.

PROCEDURE FOR REQUESTING NON-COMPETITIVE PURCHASES

1. PREPARE THE REQUISITION: Process a completed external requisition with Non-Competitive Purchase Request form through normal approval channels to Purchasing Services. The requisition should be completed as outlined in the External Requisition Tutorial. For emergency transactions and special handling requests, see "How To Get An Emergency Transaction (ET) Processed".

2. PREPARE THE NON-COMPETITIVE PURCHASE REQUEST FORM Check one or more reasons for the request and provide justification for requesting a non-competitive purchase. Supply sufficient detail so Purchasing Services has the necessary information on file to justify the use of a waiver instead of competitive bidding. Purchasing Services will approve or deny a waiver of competitive bidding on a case by case basis.

2.1 UNAVAILABLE FROM ANY OTHER SOURCE List all contacts and efforts made to verify the waiver. A minimum of 2 other contacts must be made. In the case of supplies or equipment, particular attention should be given to the manufacturer/dealer network. While a product may be made by only one manufacturer, that same product may be distributed by several different dealers. 2.1.1 Include the following for each contact:

  • Contact's first and last name.
  • Company Name.
  • Telephone number, with area code.
  • Date contacted.
  • Relationship to item or service, i.e. dealer, manufacturer, broker, consultant.

2.1.2 Describe in detail the unique aspect or nature of the item(s) or service that precludes bidding. Compatibility with existing as follows:

  • Attachment must fit equipment/equipment must fit attachments.
  • Must match existing item such as dye lots for carpeting, colors of painted surfaces.
  • Unforeseen need for additional quantities of a specific integral component or material for an ongoing experiment. Use of an alternate may put the experiment at risk.
  • Purchase of other manufacturer's supplies or accessories may void existing warranties.
  • Purchase of product allows for interchangeability of parts and accessories.

2.2 EMERGENCY. Include an explanation of the situation. In most cases some attempt at competitive bidding is feasible and appropriate.

2.2.1 An emergency purchase situation is one which threatens public health, safety or welfare. ALL the following conditions exist: a) was unforeseen; calls for immediate action; cannot be responded to using established procurement methods; or b) exists as the result of proclamation by the governor.

2.2.2 Please note the following are not acceptable criteria for an emergency non-competitive purchase: Expiration of funds; Administrative delay or confusion in processing the necessary paperwork for purchasing approval, including expiration of a previously received quotation.

Complete the blanks for required signatures, telephone numbers, dates, and requisition number and attach the Non-Competitive Purchase Request Form to the requisition. If the purchase is an emergency, also attach an Emergency Transaction Request Form. (see http://www.bussvc.wisc.edu/acct/forms.html)

NON-COMPETITIVE PURCHASE REQUEST FORM (see http://www.bussvc.wisc.edu/purch/forms.html)

NOTE: Supply sufficient detail to justify the use of a waiver instead of competitive bidding. Failure to do so may result in delays while additional information is obtained. Purchasing Services will determine the appropriateness of waiving the bid process on a case by case basis.

Addendum to PPP 19

I have reviewed your requisition number #######. The dollar amount is greater than $25,000.00 and you have identified the vendor as a sole source for the product or service. Based on these conditions, we will need to request a Governor's Waiver of bid. Please refer to PPP 19 for more information.
The waiver request requires a detailed justification memo from Purchasing Services explaining why we require this product or service and why it can only be supplied by this company. We will need a letter of justification from you to assist us in preparation of the request. Your letter to us should be written in clear layperson language that can be understood by someone not involved in or familiar with your research, grant or program and the equipment you are interested in acquiring.

Your memo must include the following:

1. A detailed summary description of the equipment including what it does, why it is unique and can be purchased only from this company.

2. Describe your research, grants or programs. A detailed description on your research, grants or programs, including how much money is involved, funding source(s) and percentage, and who the work will benefit, etc.

3. A clear statement for the need of the equipment. This can include:
· Compatibility with other like equipment*
· Interchangeability of parts and supplies
· Requirements of a grant or research project naming this equipment
· Consistency of data with like or same equipment at this or another location
· "Cutting Edge" technology only available with this equipment.

*If you use compatibility, please describe the other equipment, research projects, departments, etc. with which it must be compatible.

4. Please describe the effect there would be on your research grants or programs if we didn't purchase the equipment from this vendor

5. Provide information that demonstrates how the quoted price reflects market value. Valid comparisons include:
· Comparable equipment purchased from this vendor or other vendors. (Published price lists)
· What other customers have purchased this equipment and for what price.

Please be advised that the timeframe involved in a Governor's Waiver is usually a minimum of 6-8 weeks. Once we receive your justification letter, you may be contacted for additional information prior to preparing a memorandum for the governor. You will receive a draft for your review for accuracy and completeness before it is submitted to the Governor.

Please call me at ________ with any questions or concerns regarding this request.

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