Original Issuance Date: October 15, 2019
Last Revision Date: August 22, 2024
1. Policy Purpose
The purpose of this policy is to establish competitive procurements as the preferred method for awarding contracts and establishing dollar thresholds for evaluating suppliers.
2. Responsible UW System Officer
UW System Director of Procurement
3. Scope
This policy applies to contracts for goods and services awarded using the Board of Regents authority. This policy does not apply to contracts for Architectural and Engineering (A/E) services or construction.
4. Background
The Board of Regents of the University of Wisconsin System is authorized by Wis. Stat. § 36.11(1)(b) to purchase goods and services supporting the educational and research mission of the university. This authority is used to purchase goods and services not typically purchased by other state agencies nor found in statewide mandatory contracts. This authority is also used to purchase goods and services statutorily assigned to the university.
Competitively awarding contracts is the preferred method for contracting for goods or services in order to obtain the best value for the university system. When competition is not available, noncompetitive negotiations can be used. There are a number of tools that can be used to award contracts.
This policy establishes the dollar thresholds that determine the level of evaluation and type of procurement process required by the university to award a contract to a supplier.
5. Definitions
Procurement Lead: A purchasing staff member who is trained and has experience in conducting sealed bids and competitive proposals.
6. Policy Statement
UW System institutions have the responsibility to competitively award contracts in order to obtain the best contract value. When competition is not available noncompetitive negotiations must be followed.
The value of a contract shall be determined by estimating how much the UW System will pay a supplier for their goods or services or by how much revenue the UW System may earn from a supplier for the total life of the contract, including all option periods.
The dollar thresholds for evaluating suppliers are listed below. High risk services may be a reason to use a more formal process to evaluate a supplier.
- Simplified bidding can be used up to $149,999.
- Formal sealed bidding or requests for proposals must be used at $150,000 or above.
Noncompetitive negotiations can be used to award a contract. UW System Administrative Policy 540, Non-Competitive Procurement Contracts, sets out the level of approvals at the different dollar thresholds.
7. Related Documents
2 CFR 200.318
UW System Administrative Policy 540, Non-Competitive Procurement Contracts
8. Policy History
Revision 1: August 22, 2024
First approved: October 15, 2019
9. Scheduled Review
August 2029