Section 1720-01-04-.05 - COMPETITIVE METHODS OF CONTRACTING(1) Competitive contracting methods must be used unless justification exists for non-competitive methods or informal agreements under 1720-1-4.06. Competitive methods are proposal solicitation and verbal negotiation. In both cases, when the vendor (firm) has been selected, a standard contract should be used whenever possible (see Appendix B).(a) Soliciting Proposals. When soliciting formal, written proposals from potential vendors (firms), the following procedures should be followed. 1. A Request for Proposal (see Appendix D) should be prepared by the requesting department and should contain: (i) A description of the technical requirements for the service to be procured. The proposal should not contain features that unduly restrict competition and should be sufficiently detailed for vendors.(ii) A request that the cost and noncost sections of the proposal be submitted as separate items.(iii) The time and place to deliver proposals. (Note: The request for proposal should provide a reasonable amount of time for vendors to consider the evaluation factors prior to the deadline for submission.
(iv) The time that proposals will be opened.(v) A statement that the University reserves the right to reject any and all proposals and/or to negotiate further with any or all potential vendors after proposals are received.(vi) The University's standard terms and conditions.(vii) A statement of factors to be considered in proposal evaluations, including:(II) Sufficient resources to perform the work adequately;(III) Qualifications of staff to be assigned to the work, determined from resumes submitted (education, position in firm, and years and types of experience will be considered);(IV) Vendor's understanding of work to be performed, determined by evaluating the time estimates for performing each step in the total services proposed;(V) Price per unit of service; and(VI) Vendor's terms and conditions.(viii) A statement specifying any points that may be assigned and/or evaluation instructions that may be used for evaluating the factors listed above. (Note: The appropriate Chief Business Officer [or campus contract officer] must approve the use and type of any formula, model, or criteria that may be used in evaluating cost proposals.)2. The appropriate Chief Business Officer (or campus contract officer) should send the completed Request for Proposal to all known potential vendors (not more than 15 different vendors are required). A record must be maintained of the vendors who are sent requests.3. Noncost sections of proposals for each contract will be opened at the time specified in the Request for Proposal. Cost sections will not be opened until the evaluation of the noncost sections of the proposals has been completed. Proposals will be available for public inspection during reasonable hours on working days after the completion of evaluation by the University.4. Appropriate University personnel will analyze proposals and conduct verbal negotiations if considered advisable. The University may conduct as many negotiation sessions as considered necessary. Proposals will be analyzed on the basis of factors pertinent to the service in question. Contracts will be awarded to the vendor (firm) who offers the best terms, and neither price nor technical factor should be the sole criterion.
5. A vendor (firm) is selected, and an appropriate contract is drafted.(b) Verbal Negotiation. When two or more sources can provide the desired services, verbal negotiation of the terms of a contract is permitted in any of the following cases: 1. Urgent need for the services prevents formal advertising;2. Total value of the desired services does not exceed $3,000.00;3. Rates payable for the services are regulated by law; or4. No acceptable proposals have been received. The originating department must provide the campus/unit contract office with sufficient documentation to justify the verbal negotiation method as part of the review process. The campus/unit contract office will certify that the contract meets the criteria for verbal negotiation before it is executed on behalf of the University.
Tenn. Comp. R. & Regs. 1720-01-04-.05
Original rule filed March 29, 1978; effective June 14, 1978. Repeal and new rule filed May 27, 1986; effective August 12, 1986. Amendment filed September 20, 1999; effective January 28, 2000.Authority: T.C.A. 49-9-209, "Public Acts of Tennessee, 1839-1840", Chapter 98, Section 5 and "Public Acts of Tennessee, 1807", Chapter 64.