Solicitation of Bids and Quotations

Section 4:2 Revised  02/12/2007

The Statutes of the State of North Carolina require the solicitation of written bids by the State Purchase and Contract Division when the total purchase is $5,000 or more. UNC Charlotte requires informal bids for any total purchase over $5,000.  Phone quotes may be utilized for amounts $5,000.  Solicitation of bids and quotations on orders for more the $25,000 but less than $500,000 is generally the responsibility of the University but bid requests must be posted on the State's internet site (IPS). State regulations specify that at least three competitive bids be obtained, if possible, for those purchases under the University delegation.

The Purchasing Department, following University policy, solicits bids or quotations on items being purchased with an estimated cost exceeding $5,000.00. This action is necessary in order to officially determine the price, terms, and conditions of the vendor whose product is being sought. Purchase requests with a total dollar value less than $5,000 usually processed to the source identified by the department unless purchasing has reason to believe there may be a more competitive source or the product or service is available from a Historically Underutilized Business (HUB).

Information submitted in a successful bid is used by the Purchasing Department as a basis for preparing the Purchase Order. The University Purchase Order contains instructions to vendors that prohibit a vendor from accepting an order for shipment unless the vendor meets the printed conditions obtained through the quotation.

If competition is received from the Bid solicitation, the requesting department will be consulted before the order is placed. Justification from the user is necessary if the lowest bid meeting specifications and requirements is not selected.

When there is a question about this justification being within the guidelines of the General Statute, it may be forwarded to the State Purchase and Contract Division for their review before a purchase order is placed.

Solicitation of competitive bids and quotations is the responsibility of the Purchasing Department. Any quotations requested by a department cannot be considered official and are to be used only as information for the department. Generally, solicitation of quotations by a department only delays the placing of the Purchase Order and should be done only in conjunction with obtaining technical information about an item.

In issuing Purchase Requisitions for materials, sufficient lead time must be given to solicit bids, evaluate the bids, place the order, and effect delivery.

Two to Five working days are generally required to solicit quotations and place a Purchase Order for requirements under $5,000. Bids from $5,000 to $25,000 usually take from Three to Ten days.  Formal bids solicited by the University over $25,000 require approximately Fifteen to Twenty days. An additional Three to Ten days should be allotted to evaluate the bids, and place the order.

It is not permissible to divide requirements to keep them under the $5,000.00 figure and avoid the formal, bidding procedure.