Rensselaer Polytechnic Institute must conform to the minimum procurement standards set forth in the Office of Management and Budget Circulars A-21 and A-110 in order to maintain its flow of Federal research funding. In addition, Rensselaer's policies must be consistent with Federal Acquisition Regulations. These standards include provisions for:

Free and open competition to the maximum extent practicable

Purchasing is responsible for ensuring that qualified vendors have an opportunity to bid on needed material and services. Purchasing will help campus clients identify sources when only one source is known. Free and open competition results in impartiality for both the buyer and the seller.

• For acquisitions in excess of $5,000, a minimum of 2 bids will be obtained; however, it is recommended that 3 bids be obtained whenever possible.
• For acquisitions smaller than $5,000, 1 quote will be sufficient for purchase, however buyers may obtain more quotes to ensure the lowest pricing. 

Justification for non-competitive purchases

Purchasing is responsible for ensuring that campus clients provide the rationale for sole/single source purchases. Further information is contained in Policy 2.1 and Policy 2.2.

Rationale for pricing being fair and reasonable

Purchasing is responsible for documenting that prices paid are fair and reasonable.

Determination of this can be done through various methods:

• Bidding
• State Contract Pricing
• Competitively bid Consortium Pricing
• Comparison to other vendors providing similar products or services
• Comparison to a substantially similar item
• Education discount provided by vendor to all educational institutions
• Adequate percentage discount from commercial list price
• Independent University estimates
• Market Price
• Pricing based on prior competition
• Sale of the same item to other educational purchasers
• Price Negotiations

Whatever method is used for determining fair and reasonableness of pricing, it must be documented and retained with the purchase documentation

Utilization of small, small disadvantaged, and woman-owned businesses

Purchasing is responsible for ensuring that these types of businesses are given opportunities to bid on needed material and services. Purchasing will help identify and develop these sources.

Applicable Federal guidelines must be applied to all purchases regardless of source of funds. Rensselaer will participate in all audits including a Contractor Procurement System Review (CPSR) conducted by the Office of Naval Research and the Small Business Administration and will correct any deficiencies noted by these agencies.

Click here for information on Federal Acquisition Regulations (FAR)

Revised 3/02, 11/05