Competitive Bidding
Determine competitive bidding and sole source requirements based on purchase value.
Thresholds
Check available contracts and suppliers before using competitive bidding thresholds.
Policy and Compliance Requirements
- Follow Policy BS09 Initiating Purchases from Vendors Outside the University.
- Provide evidence of competitive pricing for acquisitions equal to or greater than $25,000.
- Competitive pricing documentation may also support purchases under $25,000, including:
- Federal programs with a $10,000 threshold under Uniform Guidance (2CFR 200)
- Sponsored awards when goods or services can be clearly defined
Sole Source
Non-catalog purchases of $25,000 or more from a specific manufacturer require a Sole Source Justification Form (Microsoft Form). Submitted Sole Source Justification Forms may be used in legal proceedings to challenge a competitor.
Examples of Approved Sole Source Justifications
- 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 specific insect species
- Supplier is the only reseller of proprietary software for measuring brain-wave–related injury
Examples Not Approved Sole Source Justifications
- Long-standing relationship with a supplier
- Preference based on previous interactions
- Claimed exclusivity for a common service (e.g., digital printing)
- Time-sensitive procurement without exploring alternatives (e.g., last-minute event catering)
Form Submission
Attach the Sole Source Justification (Microsoft Form) to a non-catalog purchase requisition for Central Procurement review and approval.
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.