3.1 - General Policy Statement
3.2 - External Funding Regulations and Guidelines
3.3 - Developing and Writing Specifications, Statements of Work (SOW) and Bids for Services
3.4 - Competitive Bidding and the Purchasing Checklist & Bid Summary Form
3.5 - University Procurement Card Program
3.6 - Policy Statement on University Environmental Sustainability Initiatives
3.7 - Policy Statement on Using Small, Disadvantaged, Woman-owned, Veteran-owned, Service Disabled Veteran-owed and HUBZone Businesses

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3.1 General Policy Statement

Only individuals who are authorized in writing to commit University Entrusted funds can make purchases on behalf of Loyola University.

Tools for making purchasing commitments are:

Procurement Card: a University issued corporate liability, corporate billed, credit card used for supplier payment purposes. Authorized Cardholders use the ProCard, (within pre-established guidelines) for purchasing goods whenever standard University terms and conditions are acceptable to the supplier.

Purchase orders: these are processed by University Buyers through the Lawson Financial System.

Web ordering: can be accomplished with the use of a ProCard.

Check Requisitions: Finance form completed by Loyola personnel for payment of selected purchases. Please access the following link for complete Payment Requisition information.

Potential suppliers are evaluated by the Purchasing Department and a selected evaluation team based on established criteria.

Those selected to be Pre-Qualified Suppliers are listed in the University’s Pre-Qualified Supplier Directory and promoted by the Loyola Purchasing Department during interactions with faculty and staff.

The link to review Loyola’s Pre-Qualified Suppliers can be found on the Purchasing website.

Pre-Qualified Suppliers are encouraged to accept the ProCard, or otherwise provide for electronic ordering and payment capabilities, and accept pre-determined terms and conditions of sale.

Contacting Suppliers: Suppliers may be contacted directly to obtain detailed information about a product or service, or to obtain the information needed to resolve technical questions. Purchasing Department Buyers can assist in this process.

3.2 External Funding Regulations and Guidelines

Loyola University Chicago receives external funding and must conform to the minimum procurement standards set forth in the OMB Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards in the Federal Register (2 CFR 200) in order to obtain and maintain an approved purchasing system, and to maintain its continued flow of external funding. These standards include provisions for free and open competition to the maximum extent practicable.

The Purchasing Department and Award recipients are responsible for ensuring that qualified suppliers have an opportunity to bid on needed material and services. Purchasing can help Award recipients identify sources when only one source is known. Free and open competition results in impartiality for both the buyer and the seller.

Buyers Actions Matrix
This matrix indicates Buyer’s necessary actions when spending University Entrusted Funds. This form indicates dollar ranges applicable to Pre-Qualified and Non Pre-Qualified Suppliers and the necessary steps that must be taken, and documentation which must be generated regarding the purchase(s).

Justification for non-competitive purchases
Purchasing and award recipients are responsible for ensuring that adequate rationale for sole/single source purchases is provided (further information is contained in Section 4.0 – Supplier Selection).

Rationale for pricing being fair and reasonable
Purchasing and Authorized Buyers and those dealing directly with suppliers are responsible for determining and documenting that prices paid are reasonable.

Utilization of small, small disadvantaged, small women-owned, small veteran-owned, small service disabled veteran-owned and small HUBZone businesses
Purchasing and Authorized Buyers are responsible for ensuring that these types of businesses are given opportunities to bid on needed materials and services. Purchasing can assist in identifying these sources.

Some external funding agency guidelines must be applied to all purchases regardless of source of funds for consistency, and some are just good business practices which have been adopted by the University. Loyola University Chicago will participate in all audits and will use its best efforts to correct deficiencies.

Click here for a link to the Federal Acquisition Regulations (FAR) or here for the appropriate Uniform Guidance.

3.3 Developing and Writing Specifications, Statements of Work (SOW) and Bids or Services

When obtaining bids for expensive or technically complex goods or services, it is desirable to obtain firm pricing. To do this, a complete, detailed description of the project (Statement of Work) is necessary for services, and should include the following information:

Concise scope of work: should be sufficiently detailed so that the supplier has no questions about what is to be accomplished, and who has the responsibility for each task. The scope should include items such as desired methodology, testing, analysis, documentation, training, rights in technical data, etc.

• Deliverables: that is, what you expect to receive as a result of the completion of the service – results, type of reports, prototypes, etc.
• Schedule, including critical milestones: if the schedule is of utmost importance, the consequences of not following it must be stated.
• The University, OMB (Federal Office of Management and Budget), FAR (Federal Acquisition Regulations) or other sponsor terms and conditions (flow downs) applicable to the proposed order.
• Performance criteria, reporting structure/frequency, etc.
• Quality expectation (technical parameters).
• Site peculiarities, hazards, safety requirements, regulations, etc.
• Subcontractor parameters: may subcontractors be used? If so, what are the limitations and required approvals?
• Information regarding experience, references from past projects and resumes of essential employees.
• If the type of work or service will require the supplier to come on University property, University insurance requirements must be conveyed and accepted. Purchasing will obtain insurance requirements from Loyola Risk Management.
• Examples of rates and fees to be requested in a bid package for services might include the following:
• Hourly rates: for particular type(s) of personnel required for the project
• Required permits, licenses and certifications
• Overtime rates
• Expenses (daily or monthly)
• Equipment rental rates
• List of Materials and charges
• Anticipated future charges

Specifications should be developed for goods and include, at a minimum, the following information:

• A description of the item being procured (including manufacturer, size, speed, color, shape, purity, etc.)
• The model number or part number, if known
• A description of any added on features not in the base product

Users are encouraged to work with Loyola Purchasing (Buyers/Purchasing Manager) when assistance is needed in the development of Statement of Work or specifications.

3.4 Competitive Bidding and the Purchasing Checklist & Bid Summary Form

Competitive bidding and the completion of a Purchasing Checklist and Bid Summary Form are required when a single transaction a) commits funds at $5,000 or greater using a non Pre-Qualified Supplier, or commits $150,000 or greater using a Pre-Qualified Supplier; with any university payment vehicle. The checklist must also be completed any time a consultant or sole/single source is being used. Adequate rationale must be provided for non-Competitive source selections. Evidence of price/cost analysis (determination of price reasonableness) must be included to meet audit requirements. All checklists must be complete, accurate and adequate.

The Office of Management & Budget’s General Procurement Standards require that “all procurement transactions be conducted in a manner to provide, to the maximum extent practical, open and free competition. The recipient of federal funds shall be alert to organizational conflicts of interest as well as noncompetitive practices among contractors that may restrict or eliminate competition or otherwise restrain trade. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, invitations for bids, and/or requests for proposals shall be excluded from competing for such procurements. Awards shall be made to the bidder or offer or whose bid or offer is responsive to the solicitation and is most advantageous to the recipient, price, quality and other factors considered. Solicitations shall clearly set forth all requirements that the bidder or offeror shall fulfill in order for the bid or offer to be evaluated by the recipient. Any and all bids or offers may be rejected when it is in the recipient's interest to do so.”

Cost/Price Analysis: For those purchases that require the completion of the Purchasing Checklist and Bid Summary Form, the determination of price reasonableness must be addressed on the 2nd page of the form, and then the form, with all supporting documentation, must be submitted to the Purchasing Department. Any federally funded order exceeding $700,000 is subject to Public Law 87-653, Truth in Negotiations Act, and price reasonableness must be justified through cost analysis if the pricing was not established through adequate competition or the item(s)/service(s) is not commercial, or a price analysis cannot be performed. Any externally funded order exceeding $25,000 using a non Pre- Qualified Supplier should be coordinated through the Purchasing Department prior to the selection of the source. Note: Certain external awarding agencies may require additional cost/price analysis. Refer to the agency’s Notice of Award for additional specific requirements.

Taxes: As a non-profit educational institution, Loyola University Chicago is exempt under Subtitle D of the Internal Revenue Code, Miscellaneous Excise Taxes, 26 U.S.C. 4041 (26 CFR parts 40 through 299) from Federal Excise Tax and from payment of the Illinois Sales and Use Tax (exemption No. E9989-4408-07) on all transactions directly related to University operations. University Procurement Cards have the University’s Illinois tax exemption number embossed on the front side of the card. Suppliers who insist on having an Illinois Department of Revenue Tax Exemption Certificate should be directed to contact the Loyola Purchasing Department at (312)915-8780. Sales tax exemption status may, or may not, be applicable for purchases in other states. Procurement Services can ascertain if there is an exemption available in other states.

Employees who pay sales and use tax when making purchases external to the Loyola purchasing systems (e.g. personal funds) may not be reimbursed for sales tax, if paid.

Other taxes: (room or occupancy, city, use, etc.) are applicable and Loyola University is obligated to pay these charges. Approvals: All expenditures must be approved by a departmental individual with budget authority. For specifics on transactions exceeding $5,000, prior to the issuance of a commitment, please refer to: Approving Requests in Excess of $5000. 

3.5 Procurement Card Program Policy Statement

At Loyola University Chicago, authorized Cardholders may use Procurement Cards, within the University established guidelines, to acquire goods and services from suppliers. For details concerning the proper use and other policies and procedures governing the University’s Procurement Card Program, please see the ProCard Policy and Procedure Manual.

3.6 Policy Statement On University Environmental Sustainability Initiatives

Loyola University Chicago is committed and continually strengthens its sustainability efforts with our campus partners. Buyers and users should utilize suppliers and service providers that make use of, to practicable extent, materials and services that support the University’s sustainability mission. This should include efforts to conserve energy and water resources, support efficient delivery and supplier programs and reduce waste through reducing, reusing and recycling. The Purchasing Department leverages current supplier relationships to raise awareness of the need to reduce our environmental impact and maximize resource efficiency. ‌

3.7 Policy Statement on Using Small Businesses

Loyola University Chicago is committed to supporting small business enterprises, including socially and economically Small Disadvantaged Businesses, Small Women-owned Businesses, Small Veteran-owned Businesses, Small Disabled Veteran-owned Businesses and HUBZone Businesses in its purchasing programs.  Categories of socially and economically disadvantaged small business enterprises are defined in FAR 19.001 while small business enterprises are defined by the federal government in FAR 19.102, and are subject to further guidance under 2 CFR 200.321.

A Small Business Enterprise is defined as an independently owned and operated concern, including its affiliates, that is not dominant in the field of operation in which it is bidding on government contracts, and qualified as a small business under the criteria and size standards in 13CFR Part 121 (see FAR 19.102)

A Small Disadvantaged Business is defined as a small business concern, owned and controlled by individuals who are both socially and economically disadvantaged, as defined by the Small Business Administration at 13CFR Part 124, the majority of earnings of which must directly accrue to such individuals. This term also means a small business concern owned and controlled by an economically disadvantaged Indian tribe or Native Hawaiian organization which meets the requirements of 13CFR 124.112 or 13CFR 124.113, respectively. In general, 13CFR Part 124 describes a small, disadvantaged business concern as a small business concern.

A Small Women-owned Business is defined as a small business concern in which at least 51% of the concern is owned and day-to-day managed and controlled by women, or in the case of a publicly owned business, at least 51% of the stock is owned by women, with one or more women managing and controlling the daily operation of the business.

A Small Veteran-owned Business is defined as a small business concern in which at least 51% of the concern is owned and day-to-day managed and controlled by veterans (as defined at 38 U.S.C. 101[2]), or in the case of a publicly owned business, at least 51% of the stock is owned by veterans, with one or more veterans managing and controlling the daily operation of the business.
A Small Disabled Veteran-owned Business is defined as a small business concern in which at least 51% of the concern is owned and day-to-day managed and controlled by disabled veterans (as defined at 38 U.S.C. 101[2]), or in the case of a publicly owned business, at least 51% of the stock is owned by disabled veterans, with one or more disabled veterans managing and controlling the daily operation of the business.

A HUBZone is defined as a historically underutilized business zone, which is an area located within one or more qualified census tracts, qualified non-metropolitan counties, or lands within the external boundaries of an Indian reservation.

A HUBZone Business is defined as a small business concern that appears on the List of Qualified HUBZone Small Business Concerns maintained by the Quinlan School of Business. On foreign campuses, these definitions will remain applicable, but references to US government regulations may not apply. 

Providing Equal Opportunity

To be sure that the University does not overlook such suppliers who might be able to supply the item(s) or service(s) needed, the following guidelines are established:

1. Contact Loyola Buyer/Purchasing Manager to assist in identifying small, disadvantaged, women-owned, veteran-owned, disabled veteran-owned and HUBZone businesses.
2. Consider breaking large orders into separate groupings to give small businesses a greater opportunity to supply items (competition requirements are still applicable).
3. Contact a Loyola Buyer/Purchasing Manager when developing specifications for what is needed.
4. When using competitive bidding, give small, disadvantaged, women-owned, veteran-owned, disabled veteran-owned and HUBZone business suppliers the opportunity to submit bids.

Click here to continue to section 4.0 Supplier Selection