Original Issuance Date: October 15, 2019 (withdrawn on November 1, 2019)
Reissued Date: October 26, 2020
Last Revision Date: April 20, 2023
1. Policy Purpose
The purpose of this policy is to establish a policy and procedure when awarding a non-competitive contract to a supplier for goods or services, and to assign contract approval thresholds for non-competitive contracts.
2. Responsible UW System Officer
UW System Director of Procurement
3. Scope
This policy pertains only to goods and services that fall under the Board of Regents procurement authority. This policy does not apply to contracts for Architectural and Engineering (A/E services) or construction.
4. Background
There are circumstances in which there is only one supplier who can provide goods or services. This policy identifies the policy and procedures for contracting with those suppliers.
5. Definitions
Cost Analysis: The review and evaluation of individual cost elements in a supplier’s proposal. A cost analysis is used when competition does not exist and involves federal dollars.
Cost Review: A review of the contractor’s price to determine if it is reasonable.
Delegated Approver: Person or Persons delegated approval responsibility, or a subset of such approval responsibility, by the Procurement (Purchasing) Director or Vice President/Chancellor for Finance and Administration as applicable. These delegations should be made in writing.
Purchasing Director: The person responsible for procurement delegation at UW System Administration (UWSA), UW-Shared Services (UWSS), or on individual campuses. The title may vary by campus.
6. Policy Statement
Non-competitive negotiation may be used to purchase a product or service that can be obtained only from one source. The requestor must demonstrate, and the Purchasing department must concur, that only one source exists, that the price is reasonable, and that noncompetitive negotiation is in the best interests of the institution. If the contract involves federal funds a cost analysis must be documented to the contract file. For all non-competitive procurement contracts, a justification describing why the contract is non-competitive and either a cost review or a cost analysis must be placed in the file.
One or more of the following circumstances may serve as the basis for using a noncompetitive negotiation:
- The service is unique or of a proprietary nature available from only one source.
- Grant monies are involved, that cannot qualify as an exemption, that require subcontracts and specify the subcontractor.
Non-competitive contracts using federal funds and valued over $150,000 must be formally published before the contract is finalized.
Non-competitive contracts valued up to and including $149,999 must be approved by the UW System institution’s Purchasing Director or their Delegated Approver.
Non-Competitive contracts valued from $150,000 to and including $499,999 must be approved by UW System institution’s Purchasing Director or their Delegated Approver and the institution’s Vice President/Chancellor for Finance and Administration or their Delegated Approver.
Non-competitive contracts valued from $500,000 to and including $1,000,000 must be approved by the UW System institution’s Purchasing Director or their Delegated Approver and the institution’s Vice President/Chancellor for Finance and Administration or their Delegated Approver and may be reviewed by the UW System Office of General Counsel, or UW-Madison’s or UW-Milwaukee’s office, prior to contract signature.
Non-competitive contracts valued over $1,000,000 must be approved by UW System institution’s Purchasing Director or their Delegated Approver and the institution’s Vice Chancellor for Finance and Administration or their Delegated Approver and reviewed by the UW System Office of General Counsel or the campus legal office at UW-Madison or UW-Milwaukee. Regent Policy Document 13-1, General Contract Approval, Signature Authority, and Reporting, and Regent Document 25-4, Strategic Planning and Large or High-Risk Projects, further define if Board of Regents approval is also necessary.
7. Related Documents
UW System Administrative Policy 236, Utilization of Independent Contractors
Regent Policy Document 13-1, General Contract Approval, Signature Authority, and Reporting
Regent Policy Document 25-4, Strategic Planning and Large or High-Risk Projects
8. Policy History
Revision 3: April 20, 2023
Revision 2: March 21, 2023
Revision 1: June 7, 2022
Reissued: October 26, 2020
First approved: October 15, 2019 (Withdrawn on November 1, 2019)
9. Scheduled Review
March 2028