Competitive Bidding
Thresholds
If a good or service is available from an available contract or supplier competitive bidding isn't applicable.
*Follow Policy BS09 Initiating Purchases from Vendors Outside the University, including evidence of competitive pricing is required for acquisitions equal to or greater than $25,000 (but may also be used for purchases under $25,000, such as for federal programs with a lower limit of $10,000 in accordance with Uniform Guidance (2CFR 200): The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.) or other sponsored awards when the goods or services required can be clearly defined.
Sole Source
Request a non-catalog item in PSUbuy and attach a Sole Source Justification Form* for Central Procurement's review and approval.
Examples
Approved
- Patented provider of custom-designed parts.
- Manufacturer is the only reseller of parts compatible with existing onsite machinery.
- Provider is the only expert in the United States on the research of insect species.
- Supplier is the only reseller of their designed software for measuring injury related to brain waves.
Not Approved
- You worked with the company for many years.
- You looked at other sources and liked this supplier the best.
- This is the only company that can digitally print.
- Your 50-person event is tonight, and this is the only caterer who can support us at this time.
Routing
- Request a non-catalog item in PSUbuy and attach a Sole Source Justification Form* for Central Procurement's review and approval.
Training
*Forms may be used in legal proceedings to challenge a competitor.
Reverse Auctions
Buyers schedule a live, real-time, virtual bidding event with qualified and preselected suppliers for a large number of standard items with common specifications, such as vehicles, furniture, and audiovisual equipment. If you are unsatisfied with the bids, Penn State can reject the auction results.
Why choose a reverse auction?
Choosing a reverse auction instead of a traditional written bid or proposal can typically save money.
How do I start the reverse auction process?
Use the Procurement Search Tool to identify the responsible buyer for the good you would like to purchase. The buyer will research the starting price.
How long does a reverse auction last?
An auction could last a few minutes to a couple of hours, depending on the items auctioned. Events for commodity items can be completed in a few minutes, while more complex items or multiple lots of items can require more time as suppliers sharpen their pencils behind the scenes.
Where are reverse auctions held?
Buyers attend the live event in Central Procurement's conference room. Requesters are welcome to attend.