Integrated CSU Administrative Manual

CSU POLICY

Section:   CSU POLICY MANUAL FOR CONTRACTING & PROCUREMENT

Section 5000 Policies

Policy Number:  5501.0

Policy Title: Solicitation Thresholds for ITR Goods and Services

Policy Effective Date:  April 28, 2008

Last Revision Date:  
(see revision history)

POLICY OBJECTIVE

To establish system wide contracting and procurement policy as required by Education Code 89036.

POLICY STATEMENT

Except in cases when it has been determined that only one source will properly meet the needs of the CSU, these solicitation thresholds shall apply:

 

100  Acquisitions less than $50,000 from Certified Small Business

Acquisitions that are estimated to be less than $50,000 may be awarded to a Certified Small Business without competition and without advertising in the California State Contracts Register.  However, whenever there is reason to believe a price quote from a single source is not fair and reasonable the campus shall obtain at least two price quotations from responsible suppliers.

 

200  Acquisitions equal or greater than $50,000 and less than $100,000 from Certified Small Business

Acquisitions that are estimated to be equal to or greater than $50,000 and less than $100,000 may be awarded to a Certified Small Business without advertising in California State Contracts Register, as long as price quotations have been obtained from two or more small businesses.

 

300  Acquisitions less than $50,000

  • Acquisitions that are estimated to be less than $50,000 may be awarded when the price has been determined to have met fair and reasonable standards.  The attainment of the standard of “fair and reasonable” may be determined by, but not limited to, one of the following techniques:
  • Catalog or Market Price – The price offered is supported by an established and verifiable catalog or market pricing medium issued by a responsible supplier and/or through an established reputable forum.  In addition, the pricing structure provided is one that a prudent buyer would accept as a reasonable representation of existing market value.
  • Price Comparison – A buyer has obtained and documented quotes or offers within the last 18 month period from other responsible suppliers which provides evidence that a price obtained is deemed fair and reasonable.
  • Historical Pricing – A buyer is able to demonstrate that other transactions occurring in the past 18-months show prices for similar acquisitions, which provides evidence that a price obtained is deemed fair and reasonable.
  • Controlled Pricing – law or regulation sets the price offered.
  • Informal solicitation process.

Campuses may also define “fair and reasonable” attainment techniques that provide the best value to the CSU.

Acquisition of IT services of $5,000 or more must be advertised in the California Contracts Register.

 

400  Acquisitions equal to or greater than $50,000 and $500,000

or less

Acquisition of ITR requirements that are estimated to be equal to or greater than $50,000, and $500,000 or less may be the result of an informal solicitation process that includes advertising in the California Contracts Register as:

  • Solicitations for IT goods in excess of $100,000
  • All solicitations for IT services
  • Solicitations that include both IT goods and services:
    • Advertisement must include both IT goods and services portions when the portion attributable to IT goods is in excess of $100,000
    • Advertisement may be limited to advertising the IT service portion of the solicitation when the IT goods portion is $100,000 or less

An informal solicitation process may provide for submittal of written or verbal quotes from vendors.

Evaluation of Bids or Proposals for Electronic & Information Technology (E&IT) Goods

A. Best Value Solicitations

If the Section 508 accessibility standards are applicable to the E&IT goods being procured and the solicitation is based on best value criteria, then compliance with Section 508 accessibility standards must also be included into the best value evaluation using the relative weightings specified in the solicitation document.

Contracts shall be awarded based on the proposal that provides the most value-effective solution to the CSU’s requirements, including, unless exempted, Section 508 accessibility standards requirements.

B. Invitation for Bids

For solicitations where award is based on lowest priced responsive bid and section 508 accessibility standards are applicable to the E&IT goods being procured then the bid’s compliance to these standards must also be evaluated. Award must be made to the firm that submitted the lowest priced responsive bid that also meets or exceeds the acceptable level of Section 508 compliance as defined by campus authority for Section 508 compliance.

In the event that more than one bid is evaluated to be the lowest priced responsive bid then award must be made to the firm submitting the bid that best meets Section 508 accessibility standards.

In the event that none of the bids submitted meet Section 508 accessibility standards, the market research efforts to procure an accessible product must be documented and award may be made to the lowest responsive and responsible bidder.

 

500  Acquisitions greater than $500,000

Acquisitions of ITR requirements estimated to result in contracts greater than $500,000 shall be awarded as the result of a formal solicitation process.

 

APPLICABILITY AND AREAS OF RESPONSIBILITY

 

REVISION HISTORY

 

RESOURCES AND REFERENCE MATERIALS

Useful Guidelines:

 

Related Principles:

 

Sound Business Practices:

 

Laws, State Codes, Regulations and Mandates:

Reference: Government Code Section 14838.5(c)

Reference: Government Code 11135, CSU Executive Order 926, CSU Coded Memo AA-2007-04, Title II of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 and following), Sections 508 of the Rehabilitation Act of 1973, as amended (Section 508)

 

COGNIZANT OFFICE(S)

CO Manager:

Tom Roberts
Director, Contract Services & Procurement
CSU Office of the Chancellor
troberts@calstate.edu

Subject Expert:

Tom Roberts
Director, Contract Services & Procurement
CSU Office of the Chancellor
troberts@calstate.edu

Affinity Group:

Procurement and Support Services Officers

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