Sourcing
Search for university-wide contracts
Competitive bid process
Review existing contracts or create a new contract
Buying methods
Shipping and receiving
Invoice and payment requirements
Sourcing is a collaborative approach for selecting suppliers of products and services designed to consolidate and leverage the university’s spend to reduce costs while delivering the highest quality. When initiating a search for a supplier of goods or services, units should first search for products and services from the available internal service providers and University-wide contracts negotiated by Procurement in Marketsite+ or through the Find Products & Services search tool.
Purchases Under $50,000
In accordance with SPG 507.01, authorized unit end users may commit funds on behalf of the university using a Purchase Order or purchasing card (PCard). Department end users are not authorized to sign contracts.
If a unit is unable to identify a contracted U-M supplier, Procurement Services recommends:
- Determining the needs of goods and/or services
- Identifying potential sources
- Collecting multiple quotes
- Selecting the best overall value supplier(s)
You may purchase directly from suppliers unless the item is on the restricted commodities and special approvals list.
Purchases $50,000 and Greater
The U-M Regents require that all transactions $50,000 and greater be competitively bid. Competitive bidding is the process that allows Procurement Services to properly survey the marketplace and evaluate a number of factors in addition to the purchase price. SPG 507.01 details responsibilities required of both the purchasing unit and Procurement Services. Exceptions to the $50,000 bid limit include orders placed under some University-wide contracts.
Competitive Bid Process
Procurement Services will work with the unit to help establish detailed specifications or scope of service and a list of potential sources. Buyers utilize a number of tools in the purchasing process depending upon the extent of the information required to identify suppliers and prepare a Request for Information (RFI) /Request for Quote (RFQ) /Request for Proposal (RFP)- collectively referred to as “RFx”.
It is important to note during the entire bidding process, Procurement manages all of the supplier coordination and communication. This way each Supplier receives consistent information at the same time and has the same expectations for the return of information. If any changes are made after the sourcing event has been issued, all bidders must be notified in writing. Final decision of award is a joint decision between the requesting party and Procurement Services based on overall best value. Once a supplier is selected, the contracting or ordering processes are initiated.
Unit’s Role
For transactions $50,000 and greater, units should submit a Sourcing Request Form to Procurement Services as soon as the need is known, so we can begin research for the sourcing event. The sooner Procurement Services is involved, the smoother the process. Click here for additional information on completing the Sourcing Request Form.
Procurement’s Role
- Facilitate the competitive bid process
- Negotiate with suppliers to achieve the best value
- Communicate updates and project-specific timeline expectations based on the request