Evaluation of price or cost analysis
While the requisitioner and Purchasing agents should always give high consideration to the pricing offered by the vendor when reviewing competitive bids, the University must also consider other compelling factors, such as product availability, delivery pricing and reliability, vendor integrity, and business or research continuity in making the final decision.
Many purchase orders are subject to a competitive bid requirement. See the section on “Solicitation of bids and quotations” above and the sections on “Documentation required for purchases over $10,000” and “Contracts” below.
Before placing an order, vendor pricing is compared to New York State contracts, and appropriate purchasing consortium, e.g., Educational and Institutional Cooperative, The Greater New York Hospital Association (GNYHA), Amerinet, and AMDEC, pricing and the best of these price options is taken. Pricing for specific commodities by vendors for the University may be negotiated independently of New York State contracts and consortium agreements. These commodities are negotiated at a fixed price for a specified amount of time as stipulated by contractual agreement between the University and the vendor.
Where appropriate, an analysis is made of lease and purchase alternatives to determine which would be the most economical and practical procurement for the University.
With regard to University supplies to be carried by the Stockroom, broad categories, e.g., reusable glassware, chemicals, molecular biology reagents, tissue culture media, cell culture materials, are bid out for competitive pricing by the Purchasing Department. A minimum of three bids is sought.
All transactions are subject to review for market price discounts, fluctuations of shipment, inside delivery costs and fuel surcharges as related to fuel availability and or national economic predictors or fuel pricing.
Purchasing works aggressively with vendors to keep shipping costs as low as possible. End users should not enter shipping costs as a line item on requisitions as these costs will vary based on shipment method, distance from supplier warehouse, hazmat charges, U.S. Customs Duty and special delivery charges, dry ice and packaging charges and fuel surcharges and upon the ultimate arrangements made by Purchasing with the vendor.