(Updated Aug. 1, 2023)
▼ Professional Services
- As long as the price is justifiable, contracts for professional services are not legally required to be competitively bid on.
- However, competitive bidding is strongly encouraged where possible.
▼ Consulting Services
- Under the current law, any consulting agreement exceeding $100,000 is mandated to undergo competitive bidding.
- Note: The $100,000 threshold is the total contract amount, not just the cost for the first phase.
- Develop a total project budget to ensure all phases can be completed within the no-bid threshold.
- If all phases cannot be completed within the no-bid threshold, the project must be bid at its inception.
▼ Contractor and Vendor Agreements
- Like independent consultants, the existing law mandates competitive bidding for independent contractor agreements and agreements with vendors exceeding $100,000.
- Note: The $100,000 threshold is the total contract amount, not just the cost for the first phase.
- Develop a total project budget to ensure all phases can be completed within the no-bid threshold.
- Service agreements between $50,000 and $100,000 do not require competitive bidding, provided the price can be justified.
- Usually, obtaining three quotes justifies this.
- Service agreements between $50,000 and $100,000 do not require competitive bidding, provided the price can be justified.
▼ Revenue Agreements
- In situations where the university stands to receive a commission or payment based on a contractor's presence or activity, it implies a financial benefit for the contractor involving the university. If this financial benefit is substantial and exclusively limited to one contractor, conducting a competitive bidding process is recommended. This ensures that all interested parties have the opportunity to bid on the partnership.