State of Alabama Bid Law and University Guidelines for Purchases

According to the state of Alabama bid law, any request for like or similar products and/or services which total $7,500.00 or more must be competitively bid. The University of Alabama is considered one entity by state law, therefore, purchase requests for like or similar items or items to like or similar vendors that cumulatively total $7,500.00 or more within a fiscal year period are subject to the competitive bid law. The buying staff will continue monitoring their areas of concentration and establishing standing contracts for repetitive purchases which can be anticipated for supplies, equipment, and services in order to issue purchase requests quickly and insure compliance with the state bid law. (See Appendix for list of standing bids/contracts)

Upon receipt of a purchase request, if the buyer cannot reasonably anticipate purchasing like or similar items that cumulatively total over $7,500.00 during a fiscal year period, the following guidelines will prevail:

$1 - 1999.99 A purchase order will be issued with a minimum of one (1) verbal quotation obtained from the vendor by the requesting department.

$2,000.00 - 7,499.99 If not available on a standing bid or State Contract, one (1) written quotation must be obtained and submitted with an approved purchase requisition and a purchase order will be issued to the specified vendor. (Written quotations or other information pertaining to an electronic purchase requisition should be forwarded to the appropriate buyer with the requisition number referenced.)

EXCEPTIONS:

a) If the buyer can anticipate purchasing like or similar items which will exceed $7,500.00 in a fiscal year period, a competitive bid is required.

b) Two additional quotes must be obtained if the vendor is UA employee-owned.

c) The buyer will advise the ordering department when she is aware of more competitive pricing.

d) Standing bids will be established if items are of a repetitive nature and the buyer anticipates like or similar purchases to exceed $7,500.00 during a fiscal year period.

e) Only one written quotation is required for a unique product or service which can be considered a single source, i.e. an addition to existing equipment, repair of existing equipment, or products or services only available from the manufacturer with no dealers or distributors marketing the product or service. A detailed memo from the requestor explaining the nature of the requirements for the single source item must be submitted to the Purchasing Department referencing the electronic requisition number.

$7,500.00 + Formal competitive bids must be obtained.

EXCEPTIONS:

a) Those items available on standing bid or State Contract.

b) Products or services exempt from the state bid law due to the uniqueness which classifies them as incapable of competitive bid or a unique product or service which can be considered a single source, i.e. an addition to existing equipment, repair of existing equipment, or products or services only available from the manufacturer with no dealers or distributors marketing the product or service. A detailed memo from the requestor explaining the nature of the requirements for the single source item must be attached to the requisition.

c) Situations which warrant a declaration of emergency affecting the health, safety, or convenience of the public. Such emergencies can only be authorized by the President of the University.