2.06 Procurement

Last Revised: June 30, 2025

Effective: April 9, 2025

Refer Questions to: Director, Strategic Sourcing

Scope

This policy applies to all offices and divisions of Gallaudet University.

Policy Statment

This policy establishes the parameters of a procurement program and application of best business practices to acquire the supplies, materials, goods, property, equipment, and services, including professional services, necessary to support and facilitate the instructional and service mission of Gallaudet University.

 

Policies and Procedures

The University does not purchase goods and services for the private use of any employee or student. The use of the University’s name, funds, pricing schedules and tax exemption status for personal purchases is strictly prohibited. In all procurement activities, the University encourages open competition and does not enforce quotas or identity-based preferences.

2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a high level of formal documentation to meet the procurement standards, beginning with required organizational policies and procedures surrounding the procurement process. All direct procurements made by Gallaudet University involving the expenditure of Federal funds will be made in accordance with 2 CFR Sections 200.318 through 200.327. Gallaudet University is not required to follow these specific procurement policies for the procurement of any goods or services that are not directly paid for with Federal funds. The policy provides written documentation of the University’s procurement policy and meets the requirements of the standards set forth in 2 CFR Sections 200.318 through 200.326.

 

Competition

Notwithstanding any below guidance to the contrary, all procurement transactions must be conducted in a manner that provides full and open competition. In order to ensure objective contractor performance and eliminate unfair competitive advantages, contractors that develop or draft specifications, requirements, statements of work, invitations for bids, or requests for proposals will be excluded from competing for such procurements. Some examples of situations considered to be restrictive of competition include, but are not limited to, the following:

• Placing unreasonable requirements on firms in order for them to qualify to do business with Gallaudet University;
• Requiring unnecessary experience and excessive bonding;
• Noncompetitive pricing practices between firms or between affiliated companies;
• Executing noncompetitive contracts with consultants that are on retainer contracts;
• Specifying only a “brand name” product to be offered; and
• Any arbitrary action in the procurement process.

 

METHODS FOR PROCUREMENT

General Guidelines

All procurement transactions, regardless of method or dollar value, must maximize open and free competition. Gallaudet University shall not engage in procurement practices that may be considered arbitrary or restrictive. Procurements shall be made using one of the following methods in accordance with 2 CFR § 200.320 “Procurement methods”:

(1) procurement by micro-purchases,

(2) procurement by simplified acquisition,

(3) procurement by competitive sealed bids,

(4) procurement by competitive proposals, or

(5) procurement by non-competitive proposals.

 

A summary of the appropriate usage of the various procurement methods is shown in the table below; additional detail regarding each of the procurement methods follows.

 

*Reference No PO, No Pay Policy (A&O Policy 2.06b)

 

Regardless of the procurement method being used, bids will be accepted only from those contractors who have a proven record of an ability to successfully complete the scope of work being bid.  References should be requested along with the contractor’s bid proposal.  Any contractors submitting a bid must produce (along with their bid documents) written proof of liability insurance and worker’s compensation coverage. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance and financial and technical resources in awarding contracts.

In addition, all solicitations must contain a clear and accurate description of the technical requirements for the material, product, or service to be procured. This description must not contain features that unduly restrict competition. All solicitations must identify all requirements that the bidders must fulfill and all other factors that will be used by the University in evaluating bids or proposals. Finally, the University must ensure that all solicitations include enough qualified sources to ensure maximum open and free competition.

1. Micro-purchases are the acquisition of supplies or services that cost, in aggregate, no more than $50,000.00. Micro-purchases may be awarded without soliciting competitive bids if the Gallaudet University Strategic Sourcing Department considers the price to be reasonable.

2. Simple Acquisition is a relatively simple and informal procurement method for securing services, supplies, or other property that cost no more than $250,000. Price or rate quotations must be obtained from an adequate number of qualified sources. As a general rule, a minimum of three bids should be obtained and documented.

3. Sealed Bids must be publicly solicited and a firm fixed price contract (lump sum or unit price) will be awarded to the responsible bidder whose bid is the lowest in price while conforming to all material terms and conditions of the solicitation. The sealed bid method is the preferred method of procuring construction, if the following conditions apply:

• A complete, adequate, and realistic specification or purchase description is available;
• Two or more responsible bidders are willing and able to compete effectively for the business; and
• The procurement lends itself to a firm fixed price contract and the selection of the successful bidder can be made largely on the basis of price.

In addition to the above, the following requirements apply:

• Bids must be solicited from a sufficient number of known suppliers who are given adequate response time prior to the date set for opening the bids;
• The invitations for bids must accurately and comprehensively define the items or services in order for the bidder to properly respond;
• All bids should be opened at the time and place identified in the invitation for bids;
• A firm fixed price contract will be made in writing to the lowest responsive and responsible bidder; and
• Any or all bids may be rejected if there is a sound documented reason for doing so.

4. Proposals This procurement technique is generally used when conditions are not appropriate for sealed bids and more than one source submits an offer and either a fixed price or cost-reimbursement contract is awarded. When the proposal method is used, the following requirements apply:

• Requests for proposals (RFP) must be publicized and identify all evaluation factors and their relative importance;
• Proposals must be solicited from an adequate number of qualified sources; for purposes of this policy, three proposals are generally deemed to be adequate;
• The Gallaudet University Strategic Sourcing Department must have a documented method for conducting technical evaluations of the proposals received and for selecting recipients;
• Contracts must be awarded to the responsible firm whose proposal is most advantageous to the program, with price and other factors considered; and in the event that Gallaudet University is procuring architectural/engineering professional services, the most qualified competitor would be selected subject to negotiation of fair and reasonable compensation.

5. Noncompetitive Proposals Noncompetitive negotiations may be used when one or more of the following circumstances apply:

• The aggregate amount of the procurement transaction does not exceed the micro-purchase threshold;
• The item being procured is available only from a single source;
• The public need or emergency nature of the procurement will not permit a delay resulting from a competitive solicitation;
• The Federal awarding agency expressly authorizes noncompetitive proposals in response to a written request from Gallaudet University; or after solicitation of a number of sources, competition is determined to be inadequate.

In instances where a contract is awarded using noncompetitive negotiations, the University must clearly document its position and rationale for doing so. Noncompetitive contracts must be approved by the University’s Strategic Sourcing Department.

 

Unnecessary or Duplicative Items

Gallaudet University must avoid the acquisition of unnecessary or duplicative items. When appropriate, an analysis of lease vs. purchase alternatives should be made.

 

CONTRACTS

Generally, all procurement transactions in excess of $10,000 will be memorialized and supported by a written contract. Where it is not feasible, or it is impractical to prepare a contract, a written finding to this effect will be prepared and some form of documentation regarding the transaction will also be prepared. All contracts will contain language, which allows Gallaudet University the opportunity to cancel any contract for cause. Examples of cause include (but are not limited to) demonstrated lack of ability to perform the work specified, unwillingness to complete the work in a timely fashion, cancellation of liability insurance or worker’s compensation by the contractor, failure to pay suppliers or workers, unsafe working conditions caused by the contractor, failure to secure materials adhering to BABA, failure to comply with Davis-Bacon wage laws (where applicable), failure to keep accurate and timely records of the job, or failure to make those records available to Gallaudet University (on request) or any other documented matter which could cause a hardship for Gallaudet University if a claim should arise or the work not be completed on schedule at the specified cost.

In addition to other provisions that may be required by the Federal awarding agency, all contracts made by the University under any Federal award must contain the following provisions, as applicable:

• Adherence to Build America, Buy America Act (BABA) requirements under the Infrastructure Investment and Jobs Act (“IIJA”), Pub. L. 117-58;
• In the event that the University awards a prime construction contract in excess of $2,000 for Model Secondary School for the Deaf or Kendall Demonstration Elementary School, the contract must include a provision for compliance with the Davis-Bacon Act;
• Contracts for more than $10,000 must address termination for cause and for convenience by the University, including the manner in which the termination will be affected and the basis for settlement;
• All contracts in excess of $100,000 that involve the employment of mechanics or laborers must include a provision for compliance with 40 U.S.C. 3702 and 3704. In short, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours; work in excess of the standard work week is permissible only if the worker is compensated at a rate of at least one and half times the basic rate of pay for all hours worked in excess of 40. In addition, no laborer or mechanic may be required to work in surroundings or under working conditions which are unsanitary, hazardous, or dangerous;
• Contracts for more than $250,000 must address administrative, contractual, or legal remedies in instances where contractors violate or breach contract terms, and provide for sanctions and penalties as appropriate;
• All contracts that meet the definition of “federally assisted construction contract” must include the equal opportunity clause provided under 41 CFR 60-1.4(b).
• Contracts and subgrants in excess of $250,000 must contain a provision that requires the awardee to agree to comply with all applicable standards, orders, or regulations issued pursuant to the Clean Air Act and the Federal Water Pollution Control Act, as amended. Violations must be reported to the Federal awarding agency and to the EPA;
• Contractors that apply or bid for an award exceeding $100,000 must certify that it has not and will not use Federal funds to pay any person or organization for influencing or attempting to influence an officer or employee of any Federal agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant, or other award and, finally,
• The contractor or subrecipient must comply with the requirements of 37 CFR Part 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts, and Cooperative Agreements,” as applicable.

Contractual Arrangements with Students, Faculty, Staff, and Family Members

The University may on occasion enter into contractual or procurement agreements with students, faculty, teachers, staff, or members of their immediate families. An acquisition of goods and services from a business in which an employee has an interest may be prohibited unless full disclosure of the background facts is presented in writing in accordance with the Conflict of Interest policy.

Former employees may be awarded consulting agreements; however, during the first two years following separation, the daily rate for the consulting agreement may not be more than ten percent (10%) above the former employee’s last daily rate with the University.

Notwithstanding the aforementioned, faculty, teachers, staff, and former employees cannot be issued income on a W-2 and earnings via a 1099 within the same calendar year.

 

Debarment and Suspension

A contract or sub-grant must not be made to parties listed on the government-wide exclusions in the System for Award Management (SAM). SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by Federal agencies, as well as parties declared ineligible under statutory or regulatory authority. Non-federal entities are prohibited from contracting with or making sub-awards under covered transactions to parties that are suspended or debarred. Gallaudet University must confirm that all new contractors, consultants, and sub-recipients are not listed in SAM Exclusions. In addition, the contractor must disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award.

 

DOCUMENTATION

All source documents supporting any given transaction (receipts, purchase orders, invoices, RFP/RFQ data and bid materials) will be retained and filed in an appropriate manner. Where feasible, source documents pertinent to each individual procurement action shall be separately filed and maintained. Where it is not feasible to maintain individual procurement files, source documents will be filed and maintained in a reasonable manner (examples include chronologically, by vendor, by type of procurement, etc.). Whatever form of documentation and filing is employed, the purpose of this section is to ensure that a clear and consistent audit trail is established. At a minimum, source document data must be sufficient to establish the basis for selection or rejection, basis for cost (including the establishment of reasonableness of cost), rationale for method of procurement and contract type, and basis for payment.

 

CODE OF CONDUCT 

Conflict of Interest

A conflict of interest occurs when an employee, officer, agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties identified above, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. No employee, officer, or agent of the University may participate in the selection, award, or administration of a contract supported by a Federal award if they have a real or apparent conflict of interest. In the event that a conflict of interest, real or apparent, exists, the employee, officer, or agent of Gallaudet University must notify the appropriate officials of Gallaudet University of the potential conflict prior to any bid or awarding of a contract and recuse themselves from the decision making process.

Acceptance of Gratuities

No employee, officer, or agent of Gallaudet University shall solicit or accept personal gifts, gratuities, or favors from contractors/subcontractors or suppliers and potential contractors/subcontractors or suppliers, if such acceptance obligates or could be construed to obligate the University to conduct further business with that contractor/subcontractor or supplier. Occasional association with contractor/subcontractors and suppliers at luncheons or dinners and the acceptance of small advertising novelties are helpful in establishing business rapport and are not considered unethical.

Disciplinary Actions

Any Gallaudet University employee, officer, or agent who knowingly and deliberately violates the provisions of this Code of Conduct may be open to legal action including up to and including termination. Any contractor or potential contractor who knowingly and deliberately violates the provisions of these procurement standards will be barred from future transactions with Gallaudet University.

 

 

Approved by: Gallaudet University Administration