Procurement Methods

In accordance with the University System of Maryland (USM) Procurement Policies and Procedures and UMBC Procurement Procedures, purchases with an estimated total value of $25,000 or less qualify as small procurements. Departments are prohibited from intentionally dividing or splitting procurements to circumvent applicable procurement requirements.

The following procedures apply:

• Competition is not required, but departments are encouraged to obtain competitive pricing whenever practical to ensure the University receives the best value.
• Purchases under $5,000 should be made using the University Purchasing Card (P-Card) whenever possible and in accordance with the University’s P-Card Policies and Procedures. Confirming orders should be avoided.
• If a P-Card cannot be used, the department should submit a requisition to Procurement for processing. Requests are generally processed within one business day, unless additional review is required (e.g., contract terms and conditions, legal review, or other compliance requirements).
• Departments should follow sound procurement and business practices by documenting that pricing is fair and reasonable. Recommended practices include:
  • Obtaining pricing from at least two vendors, when practical, through telephone, email, supplier websites, or online catalogs.
  • Retaining documentation supporting the pricing (e.g., written quotations, website screenshots, email quotes, or catalog pricing).
  • Including the pricing documentation with the requisition submitted to Procurement.

Although competition is not required under $25,000, documenting that pricing is fair and reasonable is considered a procurement best practice and supports audit readiness.

In accordance with the University System of Maryland (USM) Procurement Policies and Procedures, procurements with an estimated total value between $25,000 and $200,000 are processed by the Department of Procurement. These procurements require competition to the greatest extent practicable, considering factors such as vendor availability, the complexity of the procurement, delivery requirements, administrative costs, and sound business judgment.

Departments may not intentionally divide or split procurements to circumvent established procurement requirements or delegated purchasing authority.

Department Responsibilities
To initiate a simplified procurement, the requesting department should:

• Submit a completed requisition to Procurement.
• Clearly define the scope of work or specifications, including delivery requirements, estimated value, suggested suppliers (if known), and any other information necessary to facilitate the procurement.
• Attach any supporting documentation, such as quotes, specifications, or technical requirements.
• If requesting a sole source procurement, include a completed Sole Source Justification Form with the required supporting documentation.

Once the requisition is received, Procurement will determine the most appropriate procurement method based on the nature, complexity, and estimated value of the purchase.

A Competitive Sealed Bid, also known as an Request for Bids (RFB), is a formal procurement method used when the University’s requirements can be clearly and completely defined, and award is based primarily on the lowest responsive and responsible bidder meeting all solicitation requirements.

In accordance with the University System of Maryland (USM) Procurement Policies and Procedures, the Department of Procurement works collaboratively with the requesting department to develop the solicitation, including technical specifications, contract terms, and any applicable special requirements. The solicitation is publicly advertised using appropriate procurement platforms and methods designed to maximize competition, promote fairness and transparency, and provide all interested vendors with an equal opportunity to compete.

The Procurement Officer is responsible for managing the solicitation process, issuing any necessary amendments, facilitating the bid opening, evaluating bidder responsiveness and responsibility, and recommending an award in accordance with applicable USM Procurement Policies and Procedures.

Depending on the complexity, scope, and value of the procurement, a formal Competitive Sealed Bid typically requires 30 to 90 days to complete. Additional time may be required for highly complex procurements, Board of Public Works approval (when applicable), contract negotiations, or other required reviews.

Competitive Request for Proposals (“RFP”) – two step process in which there is a separately received, evaluated and scored technical proposal and financial proposal. Generally used where the requirements of the procurement are difficult to quantify and award will be based on factors other than cost. Due to the complexity of the RFP documents and the evaluation process, this process typically takes 30 – 90 days.

To the extent practicable, solicitations must be published in a manner that best meets the needs of the solicitation for a minimum period of five days. Publication may be accomplished by posting the solicitation on the Procurement bid board, on the eMaryland Marketplace website, trade journals, UMBC’s electronic bid board, etc. Procurement will work closely with requesting department to establish the specifications and criteria for the RFP.

A Request for Qualifications (RFQ) is a competitive procurement method used to evaluate and identify firms or individuals based primarily on their qualifications, experience, technical expertise, past performance, and demonstrated ability to perform the required services.

Unlike procurement methods where price is a primary factor in the initial evaluation, an RFQ focuses first on determining which respondents are best qualified to meet the University’s needs. Respondents may be asked to provide information regarding their organizational experience, key personnel, relevant projects, professional credentials, references, and approach to providing the required services.

Based on the evaluation of qualifications, the University may establish a shortlist of the most qualified firms and proceed with additional discussions, requests for technical or price proposals, interviews, negotiations, or other steps as permitted by the applicable procurement process

Sole Source Procurement may be used when a procurement can only reasonably be fulfilled by a single supplier and the circumstances are appropriately documented and justified. The requesting department must provide sufficient justification, subject to review and concurrence by Procurement, demonstrating why a competitive procurement is not feasible or appropriate.

The department must complete the Sole Source Justification Form and provide detailed information addressing the following:

1. Need for the Service or Commodity – Describe the specific business need and why the procurement is necessary to support the University’s operational, academic, research, or programmatic requirements.
2. Distinctive Qualifications or Capabilities – Explain what makes the proposed supplier, service, or commodity uniquely qualified or capable of meeting the University’s requirements and why those characteristics are essential.
3. Availability of Other Sources – Describe the market research or other efforts undertaken to identify alternative suppliers, products, or services and explain why those alternatives cannot reasonably satisfy the University’s requirements.
4. Impact if the Proposed Supplier Is Not Selected – Explain the operational, financial, technical, programmatic, or other significant impact to the University if the proposed supplier is not selected.

A preference for a particular supplier, prior experience with a supplier, convenience, or time constraints alone are generally not sufficient justification for a sole source procurement.

Upon approval of the sole source justification, Procurement will obtain and review the supplier’s pricing and, as appropriate, negotiate pricing, terms, and conditions to ensure the procurement represents the best value and is in the best interest of the University.

Emergency Procurement may be used when a sudden, unexpected, and unforeseen circumstance requires immediate action to protect public health, safety, welfare, property, University operations, or other critical interests.

An emergency procurement is not intended to address situations resulting from inadequate planning, avoidable delays, expired contracts, failure to submit a request timely, or lack of available funding. When an emergency exists, the urgency of the situation may make it impractical to follow the University’s standard competitive procurement procedures. However, competition should be obtained to the greatest extent practicable based on the circumstances and time available.

The requesting department must document the circumstances supporting the emergency procurement, including the nature of the emergency, the immediate need, the potential impact of delaying the procurement, and the basis for the supplier selected. The Emergency Procurement Form must be completed and submitted to Procurement for review and approval.

Cooperative Purchasing Agreements provides the University the opportunity to utlize contracts established by other higer education institutions, public agencies, governmental entities, or recognized purchasing cooperatives. These agreements provide an opportunity to obtain goods and services through competitively established contracts while benefiting from economies of scale, favorable pricing, and streamlined procurement processes.

The Department of Procurement may participate in a cooperative solicitation with other entities or utilize an existing cooperative contract when it is determined to be appropriate, compliant with applicable procurement requirements, and in the best interest of the University.

Departments should contact Procurement before engaging a supplier or making a purchase under a cooperative agreement to confirm that the contract is eligible for University use and that the proposed purchase is within the scope and terms of the cooperative contract.