When preparing to purchase equipment, supplies, or services, thought should be given to the request to vendors. At ISU, pricing is requested by either direct bidding based on known equipment specifications and performance (Request for Quotation or RFQ) or by stating performance criteria and inviting vendors to propose equipment, systems, or services to achieve the desired level of performance (Request for Proposal or RFP).

As a general rule, equipment should be bid using an RFQ if there is a particular item or system on the market that will meet your requirements. Proposals should be requested if you are uncertain whether there is a item or system available to produce the results you hope to obtain.

A Request for Proposal is the most flexible way for requesting bids. Because a proposal is result driven, it allows the end user(s) to consider a variety of bid solutions for a given situation.

Feel free to discuss your needs with a purchasing agent, who can help you determine the best process for a particular acquisition.

Perhaps the most important aspect of purchasing in a public institution is the development of product/service specifications for bidding. The Iowa Board of Regents and Federal Government both require fair and open competition based on generic specifications. Careful formulation of bid specifications will help insure that offered items meet your needs. Bids not meeting your requirements can be rejected if the original specifications were objective and based on the necessary function and performance of the items or services desired. The Purchasing Department encourages faculty and staff involvement in preparing bid specifications.

When preparing specifications, it is helpful to begin with a brief statement describing how the goods or services will be used. This allows vendors to provide an offering more suited to your requirements and can be of assistance should the products or services later prove unsatisfactory.

Specifications for goods should be based on the functional or technical performance of the products. Considerations such as uniformity, durability, reliability, sensitivity, stability, expansion capability, resolution, power output, processor speed, ability to run particular software, and/or ability to perform a required task, methodology, etc. should be addressed.

Specifications for services should be based on your needs with a detailed outline of how you expect the services to be performed, with specific time lines and performance benchmarks clearly defined for each time period.

Proprietary features must not be included in the specifications unless your required use is dependent upon performance derived from such features.

As a public institution, we must avoid making specifications too restrictive and, thus, preventing competition. Features, which do not have a direct bearing on the product’s performance as it relates to your intended use, should not be included. If your specifications are too "tight", you may find that a product, which is able to meet your functional requirements and is less costly, may have to be rejected for not meeting specifications. In this case, your requirements may need to be rebid with revised specifications. Bid documents are considered to be legal offers to buy. If a vendor should suspect that specifications have been written expressly to eliminate his or her products from consideration, that vendor may elect to protest the bid or the resultant award.

Specifications should conclude with a brief statement of the expected performance of the products. This also may be stated as a formal performance test. Test results may be required as a submittal with the vendors bid response and used as an evaluation criteria. A required performance standard may need to be demonstrated before the product is accepted and payment is made.

Developing specifications for proposals is somewhat different than the process listed above. When preparing the requirements for a request for proposal, the required performance must be clearly defined. Vendors are free to propose alternate products or services that will meet required performance standards. Submission of test data or product samples may be required as part of your specifications. Data may be from samples, which vendors submit as part of the proposal process, or be the results of tests performed on known standards.

For specialized purchases, multiple award criteria also may be specified. The basic criteria used at ISU include such considerations as ability to meet functional specifications, cost, references, warranty, and delivery. Additional criteria can be added to meet specific needs and help in the selection of compliant products.

Value	Classification	Minimum Bid Requirements
$1 - $9,999	Supplies	Orders may be processed based on estimated cost. Fax quotes, phone quotes, or letter quotes from at least one vendor may be prudent.
$5,000-$9,999	Equipment	Purchasing agent's discretion is utilized to determine pricing method and need for competitive bidding. Any equipment purchase requires a minimum of one phone, fax, or written bid (offer) be obtained to establish fixed pricing.
$10,000-$99,999	Equipment/Supplies	Requires three or more written competitive bids be obtained.
$100,000 or *	Equipment/Supplies	Requires three written quotations be obtained via formal sealed bidding procedures.

* Equipment with a unit cost greater than $250,000 or a total purchase cost of $500,000 to $1,000,000 will be submitted to the Board Office for approval. Equipment costing more than $1,000,000 will be submitted to the Board for approval.

Bids ranging from $10,000 - $99,999 generally are let for a minimum of 14 days, longer if bids must be sent to either coast. Formal sealed bids of $99,000 or greater generally are let for at least 30 days. Bid solicitations may be let for longer than the period indicated, should the situation warrant.

Federal grant recipients may be required to utilize federal small businesses for some items purchased on the grant. In some cases, federal procurement practices will differ from those of the University. For more information concerning purchasing on a federal grant or contract, please contact Sponsored Programs Accounting (294-4569) or the Purchasing Department (294-4860).