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Commonwealth of VirginiaProcurement Manual for Institutions of HigherEducation and their VendorsThe Procurement Manual for Institutions of Higher Education and their Vendors specifies those policies whichgovern the procurement processes at specifically designated publicly-funded colleges and universities who areeligible to be or are governed by Subchapter 3 of the Restructured Higher Education Financial and AdministrativeOperations Act, § 23-38.88 et seq. of the Code of Virginia and Chapters 824 and 829, Acts of Assembly, 2008 andas re-codified by § 23.1 -1000 et seq. of the Code of Virginia and Chapters 588, Acts of Assembly, 2016. Thesepolicies are structured to support the mission of higher education and to comply with the principles of the VirginiaPublic Procurement Act and are in compliance with the individually adopted, “Rules Governing Procurement ofGoods, Services, Insurance, and Construction by a Public Institution of Higher Education of the Commonwealthof Virginia” (hereafter referred to as ‘The Governing Rules’, see Appendix A).The Commonwealth is a national leader in excellence in higher education with a diverse group of Institutionswhich satisfy higher education's missions--teaching, research, public service and patient care. In meeting thismission, Institutions are also ethically and legally charged to be good stewards of public funds.The Governing Rules state that "competition be sought to the maximum feasible degree," and that "procurementprocedures involve openness and administrative efficiency." It also states that "individual public bodies enjoybroad flexibility in fashioning details of such competition."On this solid foundation, this Manual was constructed to meet several goals: Support the mission of Higher EducationMaximize competitionComply with the Code of Virginia as it relates to Higher EducationComply with the “Rules Governing Procurement of Goods, Services, Insurance and Construction”Present a clear, concise policy document which is specific to the procurement departments of fullydecentralized Institutions of Higher EducationProvide the flexibility to Institutions to design their own small purchase proceduresProvide information to vendors which seek to compete for the Institutions' businessStreamline policies to facilitate public and private sector cooperationDemonstrate Higher Education's commitment to fair and ethical business practices.The Manual was written to create one comprehensive reference source for Institutions and their vendors, reducingduplication of information and reproduction costs. Any information in other resources which govern Institutions'specific expenditures, such as capital outlay, is not included. Instead, specific manuals or agencies are treated asresources.The Manual, originally submitted in June 1995, was written under the authority of the Appropriation Act of 1994,Section E 330. It complied with the mandates of the Higher Education Decentralization Pilot Program, approvedby the Secretary of Finance, in consultation with the Secretaries of Administration and Education and the Directorof the State Council of Higher Education for Virginia. In 2005 and 2007, it was accepted by the CommonwealthPage 1 of 53

of Virginia as the governing manual for those schools granted operational authority in procurement through theRestructured Higher Education Financial and Administrative Operations Act and again in 2009 was accepted asthe governing manual for all schools receiving operational authority in procurement through individualMemorandum of Understanding pursuant to Chapters 824 and 829 Acts of Assembly of Virginia, 2008.It is in the spirit of stewardship, a greater mission, and support of the leadership of the Commonwealth, that thisManual is maintained and utilized by these Institutions of Higher Education:College of William and MaryGeorge Mason UniversityJames Madison UniversityLongwood UniversityOld Dominion UniversityRadford UniversityUniversity of Mary WashingtonUniversity of VirginiaVirginia Commonwealth UniversityVirginia Military InstituteVirginia TechThese Institutions often operate collaboratively (in whole or part) as the Virginia Association of State Collegeand University Purchasing Professionals (VASCUPP) and in support of cooperative procurement initiativeson the part of the Virginia Higher Education Procurement Consortium (VHEPC).The Manual was revised June 2021.Key to AbbreviationsInstitutions of Higher Education InstitutionsProcurement Manual for Institutions of Higher Education and Their Vendors The ManualVirginia Information Technology Agency VITARules Governing Procurement of Goods, Services, Insurance and Construction The Governing RulesInvitation for Bid; Invitation for Bids; Invitation to Bid IFBRequest for Proposals RFPElectronic Virginia Procurement System eVASmall, Women-owned, Minority-owned, or Disabled Veteran-owned Businesses SWaMVirginia Department of Small Business and Supplier Diversity SBSDVirginia Association of State College and University Purchasing Professionals VASCUPPReturn to the Beginning of Manual or to the Table of ContentsPage 2 of 53

Table of ContentsBeginning of ManualCommonwealth of Virginia Procurement Manual for Institutions of Higher Education and their Vendors . 1Section 1 - Authority and Responsibilities . 6A. Introduction . 6B. Authority and Responsibility . 6C. Federal Grants . 7D. Authority to Sign Purchase Orders and Contracts . 7E. Procurement Records . 7F. Surplus Property. 7Section 2 - Methods of Procurement . 7A. Selection of Procurement Method . 7B. Small Dollar Purchases. 8C. Competitive Sealed Bidding. 8D. Competitive Negotiation . 9E. Sole Source . 10F. Emergency . 11G. Reverse Auctioning . 11H. Public Auction . 11Section 3 – Preparing the Solicitation . 11A. Specifications . 12B. Vendor Assistance in Specification Preparation . 12C. Comments or Questions Regarding Specifications . 13Section 4 –Requirements within the Solicitation. 13A. Bonds. 13B. Response Time . 13C. Vendor Registration/SBSD Certification . 13D. Prebid or Preproposal Conferences . 14E. Amending or Withdrawing Bids or Proposals by Vendors. 14F. Alterations to Bids or Proposals . 14G. Late Bids or Proposals. 14H. Cancellation or Rejection of Bids or Proposals. 14I. Mistakes in Bids or Withdrawals of Bids .15J. Denial of Withdrawal of Bid . 16K. Electronic Signature . 16Page 3 of 53

Section 5 – Additional Factors in Vendor Selection. 16A. Freight . 16B. Small, Woman-owned, Minority-owned Businesses (SWAM) . 16C. Cash Discounts . 16D. Determination of Price Reasonableness . 16E. Contract Pricing Arrangements. . 17F. Preference for Virginia Coal Used in the Institution . 17G. Recycled Content. 17Section 6 – Additional Vendor Information . 17A. Term Contracts . 17B. Unsolicited Proposals . 18C. Taxes . 18D. Insurance . 19E. Drug-Free Workplace . 19F. Purchases from Cooperative Contracts . 19G. Cooperative Procurement . 20Section 7 – Exceptions to Competitive Requirements . 21Section 8 - Procurements with Special Considerations . 22A. Information Technology . 22B. Construction . 23C. Printing, Copyright and Trademark . 25D. Individual Services . 25E. Legal Services and Expert Witnesses . 25F. Department of Corrections . 25G. Nonprofit Sheltered Workshops of Virginia . 25H. Rental, Lease, or Installment Purchase of Goods . 26Section 9 - Contract Administration and Vendor Performance . 26A. Contract Modification Restriction . 26B. Assignment of Contract . 26C. Contract Renewal or Extension . 26D. Special Types of Contracts . 27E. Purchase Order, Authority, and Shipment . 28F. Delivery and Receipt of Goods . 28G. Complaints on Vendor's Goods or Services . 30H. Billings and Invoices . 33Section 10 - Remedies, Protests, and Disputes. 35A. Ineligibility (Governing Rules §47) . 35Page 4 of 53

B. Appeal of Denial of Withdrawal of Bid (Governing Rules §48) . 36C. Determination of Non-responsibility (Governing Rules §49) . 36D. Protest of Award or Decision to Award (Governing Rules §50) . 37E. Effect of Appeal Upon Contract (Governing Rules §51) . 38F. Stay of an Award During Protest (Governing Rules §52). 38G. Contractual Disputes (Governing Rules §53). 38H. Legal Actions (Governing Rules §54) . 38Section 11 - Ethics, Conflict of Interests, and Freedom of Information . 40A. Standards of Conduct (Governing Rules §57). 40B. Vendor Seminars . 40C. Documentation of Files and Public Access to Procurement Records. 41D. Virginia Freedom of Information Act (Governing Rules §34) . 41Appendix A -- Resources . 42Appendix B -- Definitions . 43Appendix C -- NAEP Code of Ethics . 52Appendix D -- SWaM Procurement Programs . 53Page 5 of 53

Section 1 - Authority and ResponsibilitiesA. IntroductionThe designated Institutions of Higher Education are eligible to become or are currently governed throughManagement Agreements or Memoranda of Understanding authorized through the Restructured HigherEducation Financial and Administrative Operations Act of 2004 and Chapters 824 and 829 of the Acts ofAssembly, 2008 and as re-codified by § 23.1 -1000 et seq. of the Code of Virginia and \ Chapters 588, Actsof Assembly, 2016. These Institutions embrace the fundamental obligation to the general public to ensurethat purchases are accomplished in accordance with the intent of the laws enacted by the Virginia GeneralAssembly. The Governing Rules govern each Institution’s procurement of goods, services and insurance andstates that:To the end that the Institution shall obtain high quality goods and services at reasonable cost, that allprocurement procedures be conducted in an open, fair and impartial manner with avoidance of anyimpropriety or appearance of impropriety, that all qualified vendors have access to the Institution’sbusiness and that no offeror be arbitrarily or capriciously excluded, it is the intent of the governing bodyof the Institution that competition be sought to the maximum feasible degree, that procurement proceduresinvolve openness and administrative efficiency, that individual public bodies enjoy broad flexibility infashioning details of such competition, that the rules governing contract awards be made clear in advanceof the competition, that specifications reflect the procurement needs of the purchasing body rather thanbeing drawn to favor a particular vendor, and that the purchaser and vendor freely exchange informationconcerning what is sought to be procured and what is offered. The Institution may consider best valueconcepts when procuring goods and nonprofessional services, but not construction or professional services.Professional services will be procured using a qualification-based selection process. The criteria, factors,and basis for consideration of best value and the process for the consideration of best value shall be asstated in the procurement solicitation.This statement highlights the use of competition to the maximum feasible degree. Conducted properly,competitive procurement responds to user needs, results in public confidence in the integrity of publicpurchasing, and provides fair access for the private sector to public sector business.If there is to be a contract between an Institution of Higher Education and a nongovernmental vendor, theGoverning Rules and the regulations of the Procurement Manual for Institutions of Higher Education andTheir Vendors apply regardless of the source of funds by which the contract is to be paid or in the absence ofany monetary consideration flowing to either party.B. Authority and ResponsibilityAll purchases made by an Institution shall be in accordance with the Governing Rules and such rules andregulations as prescribed in this document. Any revision to the Governing Rules will be included as a changeto this Manual. Institution presidents have the ultimate responsibility to ensure that the acquisition of goodsand services is in compliance with the Governing Rules, executive orders, appropriations, other regulations,and this Manual.Page 6 of 53

C. Federal GrantsRestrictions on the use of funds are frequently imposed by the granting federal agency. If the federal grant orcontract funds contain conditions that are in conflict with the Governing Rules, the Institution must requestand obtain a written determination from the Institution’s president or designee that the acceptance of the grantor contract is in the public interest. Such determination shall state the specific provisions of the GoverningRules in conflict with the conditions of the grant or contract.D. Authority to Sign Purchase Orders and ContractsThe Institution designates in writing those persons authorized to sign purchase orders and contracts. Dollarthresholds are established, as applicable, for each signatory authority. A copy of the written authorizationmust be on file in the Institution’s procurement department.E. Procurement RecordsThe procurement department awarding a contract or purchase order is responsible for maintaining all recordsrelating to the procurement process.F. Surplus PropertyEach Institution shall develop a policy and procedures for disposal of surplus materials. Such policy shallprovide for the sale, environmentally-appropriate disposal, or recycling of surplus materials by the Institutionand the retention of the resulting proceeds by the Institution.Section 2 - Methods of ProcurementThere are seven (7) typical methods of procurement for goods and nonprofessional services. Only competitivenegotiation will be used in procuring professional services (see Appendix B for definition of professionalservices). This section outlines those methods and the requirements that shall be met by both the Institution andthe vendor.A. Selection of Procurement MethodPurchases not expected to exceed the competitive threshold established by law (currently 200,000 1), shallbe made in accordance with small purchase policies and procedures of each Institution.If the purchase is over the competitive threshold established by law (currently 200,0001), Institutions shallutilize competitive sealed bidding or competitive negotiations. In certain circumstances, it may be in the bestinterest of the Institution to utilize sole source, emergency, public auction or reverse auctioning procurementmethods as authorized by the Governing Rules.Page 7 of 53

B. Small Dollar PurchasesThe Governing Rules allow Institutions of Higher Education to establish and implement its own small dollarpolicies and procedures for purchases not expected to exceed the competitive threshold established by law(currently 200,0001). The policies and procedures should encourage competition to the maximum feasibledegree, provide fair access for vendors to small dollar purchases, and maintain flexibility to minimizeadministrative hardship for the private sector. Copies of these policies and procedures are established andmaintained by each Institution.C. Competitive Sealed Bidding1. Invitation for Bid (IFB)Competitive sealed bidding is used for procurements where clear and concise specifications can be writtenand pricing schedules can be established. Price, responsiveness and responsibility are the basis of selectionand award. In competitive sealed bidding, the Invitation for Bid is the solicitation document used to specifythe goods and services or scope of work, all contractual terms and conditions and instructions to bidders.Public notice of the Invitation for Bid shall be at least 10 days prior to the date set for receipt of bids bypublication on the Department of General Services' central electronic procurement website, eVA. Publicnotice also may be published in a newspaper of general circulation or on other appropriate websites, orboth. In addition, bids may be solicited directly from potential contractors. Any additional solicitationsshall include businesses selected from a list made available by the Virginia Department of Small Businessand Supplier Diversity. (Governing Rules §4)2. Negotiation with Lowest Responsible BidderBids are solicited from developed bidders list(s) based on commodity or services and/or by directsolicitation or through e-procurement for competitive sealed bids. Sealed bids are publicly opened. Assoon as practical, bids are evaluated and an award is made to the lowest responsive and responsible bidder.Any bidder who, despite being the apparent low bidder, is determined not to be a responsible bidder fora particular contract shall be notified in writing. (Refer to Section 10, "Remedies, Protests, and Disputes")Unless canceled or rejected, a responsive bid from the lowest responsible bidder shall be accepted assubmitted, except that if the bid from the lowest responsible bidder exceeds available funds, the Institutionmay negotiate with the apparent low bidder to obtain a contract price within available funds; however,such negotiation may be undertaken only under conditions and procedures described in writing andapproved by the Institution prior to issuance of the IFB. "Available funds" are those budgeted by theInstitution for the requirement and designated as such prior to issuing the solicitation. (Governing Rules§15)Page 8 of 53

3. Responsible BidderA responsible bidder is determined as a vendor which: is a regular dealer, supplier or an authorized dealer of the goods or services offeredhas the ability to comply with the required delivery or performance schedule, taking intoconsideration other business commitmentshas a satisfactory record of performancehas a satisfactory record of business integrityhas the necessary facilities, organization, experience, technical skills, and financial resources tofulfill the terms of the purchase order or contract4. Responsive BidderTo be considered for an award, a bid must comply with the terms and conditions and specifications in theIFB. Failure to comply with the requirements set forth in the IFB may result in a bid being declarednonresponsive; for example: failure to sign a bid, or to return the required bid documents, substitution ofvendor's terms, deletion of terms and conditions stated in the IFB, failure to offer a product or service thatmeets the requirements of the IFB, etc. may be grounds for this finding.5. Multiple AwardsMultiple awards may be made when provided for in the solicitation.6. Informalities & Best InterestThe Institution shall have the right to accept or reject any and all bids, to waive informalities, to makeawards in whole or in part, and make awards in the best interest of the Institution.D. Competitive Negotiation1. Request for Proposal (RFP)Competitive negotiation is a method for purchasing goods and services under which vendors are solicitedby a Request for Proposal. The Request for Proposal includes all terms and conditions and is the tool usedduring the competitive negotiation process to describe in general terms what will be purchased and tospecify the criteria used to evaluate proposals. Price may be considered but need not be the soledetermining factor. Public notice of the Request for Proposals may be given at least 10 days prior to thedate set for receipt of proposals by publication in a newspaper or newspapers of general circulation in thearea in which the contract is to be performed to provide reasonable notice to the maximum number ofofferors that can be reasonably anticipated to submit proposals in response to the particular request. Publicnotice also shall be published on the Department of General Services' central electronic procurementwebsite, eVA and may be published on other appropriate websites. In addition, proposals may be soliciteddirectly from potential contractors. (Governing Rules §4)Page 9 of 53

2. Goods and Non Professional Servicesa. Ranking of Qualifications and NegotiationsIn the competitive negotiation process for goods and non-professional services, the Institution reviewsproposals according to selection criteria included in the RFP. Negotiations shall typically occur withtwo or more offerors deemed to be fully qualified and best suited among those submitting proposals.If a written determination is made that only one offeror has made the best proposal, a contract may benegotiated and awarded to that offeror. This applies to the purchase of goods and nonprofessionalservices only.b. Final ContractThe final written Contract will reflect documentation of the mutual understanding of the Institutionand vendor reached as a result of negotiations.3. Professional Servicesa. Ranking of Qualifications and NegotiationsIn the competitive negotiation process for professional services, the Institution shall engage inindividual discussions with two or more offerors deemed ful

Jul 23, 2021 · University of Virginia Virginia Commonwealth University Virginia Military Institute Virginia Tech These Institutions often operate collaboratively (in whole or part) as the Virginia Association of State College . procurement procedures be conducted in an open