R765.  Regents (Board of), Administration.
R765-571.  Delegation of Purchasing Authority.
R765-571-1.  Purpose.
	The purpose of this rule is to establish a procurement process for institutions in the state system of higher education.

R765-571-2.  References.
	2.1.  Utah Code Title 53B- Higher Education
	2.2.  Subsection 53B-1-102(4) - State System of Higher Education.  These institutions are empowered to sue and be sued and to contract and be contracted with under the general supervision of the board.
	2.3.  Subsection 53B-7-101(10) - State System of Higher Education.  Each institution may do its own purchasing, issue its own payrolls, and handle its own financial affairs under the general supervision of the board.
	2.4.  Utah Code Title 63G, Chapter 6A - Utah Procurement Code
	2.5.  Utah Code Subsection 63G-6A-106(a) - Procurement Authority

R765-571-3.  Definitions.
	3.1.  Applicable Rulemaking Authority:  as it relates to a state institution of higher education, the State Board of Regents.
	3.2.  Head of a Public Procurement Unit:  as it relates to an institution of higher education of the state, the president of the institution of higher education, or the president's designee.
	3.3.  Procurement Officer: as it relates to a state purchasing unit, the head of the state purchasing unit, or a designee of the head of the state purchasing unit.

R765-571-4.  Delegation of Authority.
	As outlined in Title 63G, Chapter 6a, effective May 1, 2013, the Utah Board of Regents is the body designated with rulemaking authority over procurement for institutions of Higher Education.  The Board delegates to each institution the authority to adopt and administer procurement policies, rules and processes that are in conformance with the Utah Procurement Code and this general policy.  Each president, or designee, is given authority over procurements at their respective institution.

R765-571-5.  Guiding Principles.
	Each institution is charged to provide efficient and timely procurement services, that maximize the institution's resources and promotes its instruction, research, extension, and professional service programs.  Each institution shall strive to obtain the maximum value for each dollar expended, utilizing open competition and impartial evaluation of alternate products.  They should also foster fair, ethical, and legal trade practices, which develop a strong vendor community and promote public trust in the institution and the system of higher education.

R765-571-6.  Small Purchases.
	Each institution shall establish policies, rules, and processes governing small purchases.
	6.1.  Each institution shall establish the maximum expenditure that may qualify as a small purchase.
	6.2.  Each institution may establish expenditure thresholds and procurement requirements related to those thresholds in relation to small purchases, including, but not limited to:
	6.2.1.  Purchasing Cards (P-Card)
	6.2.1.1.  The purpose of a purchasing card program is to establish a more efficient, cost-effective method of purchase and paying for low-dollar transactions.  Institutions shall establish procedures that govern card issuance, card-holder training, and the auditing of purchasing card transactions.
	6.2.2.  Requests for Quotation (RFQ)
	6.2.2.1.  Institutions are charged to seek competition whenever practicable.  RFQs involve soliciting quotes from two or more known vendors.  Each institution should establish procedures regarding the acceptance of phone, fax, and email quotes.
	6.2.3.  Small-dollar Purchase Orders
	6.2.4.  Reimbursements
	6.2.5.  Petty Cash

R765-571-7.  Solicitations.
	Each institution shall formally solicit competition for all procurements over the maximum small dollar expenditure established by the respective institution, unless the procurement falls under R765-571-8, Exceptions to the Solicitation Process, as required by law.  Each institution shall establish policies, rules, and processes governing solicitations, including:
	7.1.  Invitation for Bid (IFB):  The Invitation for Bids is used to initiate a competitive sealed bid procurement.
	7.1.1.  An IFB shall include a purchase description, and all contractual terms and conditions applicable to the procurement.
	7.1.2.  A minimum of ten (10) days shall be provided for response.
	7.1.3.  IFBs must be publically advertised as outlined in the Procurement Code.
	7.1.4.  Bids shall be submitted using a sealed bid process.
	7.1.5.  Bids shall be opened publically in accordance with the Procurement Code.
	7.1.6.  Bids shall be evaluated based on the requirements set forth in the IFB, which may include objective criteria.  Criteria not included in the IFB may not be used to evaluate bids.
	7.1.7.  Contracts shall be awarded with reasonable promptness by notice to the lowest responsible and responsive bidder whose bid meets the requirements and criteria set forth in the IFB.
	7.1.8.  IFBs may be performed in multiple steps as outlined in the Procurement Code.
	7.2.  Request for Proposal (RFP):  An RFP process may be used instead of the IFB process if the procurement officer determines, in writing, that the RFP process will provide the best value to the institution.
	7.2.1.  An RFP shall include a scope of work, all contractual terms and conditions applicable to the procurement, and the manner in which proposals are to be submitted.
	7.2.2.  A minimum of ten (10) days shall be provided for response.
	7.2.3.  RFPs must be publically advertised as outlined in the Procurement Code.
	7.2.4.  Proposals shall not be opened publicly.
	7.2.5.  Proposals shall be handled as outlined in the Procurement Code
	7.2.6.  A committee of at least three (3) individuals shall be appointed to the evaluation committee
	7.2.7.  The evaluation committee will rate proposals based on the criteria outlined in the RFP.  Criteria not included in the RFP may not be used to evaluate proposals.
	7.2.8.  The RFP process may be conducted in multiple steps, including presentations/discussions and requests for best and final proposals.
	7.3.  Request for Information (RFI):  The purpose of an RFI is to obtain information, comments, or suggestions from potential bidders or offerors before issuing an IFB or RFP.  An RFI is not a procurement process.
	7.4.  Request for Supplier Qualification (RFSQ):  An institution may prequalify potential bidders or offerors to provide any type of procurement item and limit participation in an IFB or RFP to the prequalified potential bidders or offerors.
	7.4.1.  RFSQs shall include they type of procurement item to which it relates, the scope of work, the minimum criteria for prequalification, and period of time during which the list will be used.

R765-571-8.  Exceptions to the Solicitation Process.
	Each institution shall establish policies, rules, and processes governing exceptions to the solicitation process, as required by law, which may include, including:
	8.1  Sole Source Procurement:  Sole Source Procurement is not permissible unless a requirement is available from only a single supplier.  A requirement for a particular proprietary item does not justify a sole source procurement if there is more than one potential bidder or offeror for that item.  The determination as to whether a procurement shall be made as a sole source shall be made by the head of the purchasing agency, or designee.  In cases of reasonable doubt, competition should be solicited.  The following are examples of circumstances which could necessitate sole source procurement:
	8.1.1.  where the compatibility of equipment, accessories, or replacement parts is the paramount consideration;
	8.1.2.  where a sole supplier's item is needed for trial use or testing;
	8.1.3.  where a sole supplier's item is to be procured for resale;
	8.1.4.  where public utility services are to be procured.
	8.2.  Emergency Procurement:  Emergency procurement is appropriate when an emergency condition exists that limits the capability of the institution to obtain competition. An emergency condition is a situation which creates a threat to public health, welfare, or safety such as may arise by reason of floods, epidemics, riots, equipment failures, or such other reason as may be proclaimed by the President of the institution.  These procurements shall be made in accordance with the Procurement Code.

R765-571-9.  Protests.
	Aggrieved bidders, offerors, or potential bidders or offerors, may protest the solicitation's specifications or award decision in accordance with the Procurement Code.  The aggrieved party may appeal a protest decision in accordance with the Procurement Code.  Each institution shall establish policies, rules, and processes governing protests related to procurement in accordance with the Utah Procurement Code.

R765-571-10.  Ethics.
	Individuals employed by institutions of higher education must discharge their duties impartially so as to assure fair competitive access to procurement.  Employees should conduct themselves in such a manner as to foster public confidence in the integrity of the system of higher education.

KEY:  procurement, education
Date of Enactment or Last Substantive Amendment:  April 28, 2015
Authorizing, and Implemented or Interpreted Law:  63G-6a-104; 65G-6a-403