Guidelines for Obtaining Quotes
University of Maine System (UMS) Administrative Practice Letter
Section VII-A outlines University policy for the competitive
procurement process. For all purchases between $5000 and $25,000, the
University must obtain written quotes before making a commitment to buy
goods or services. Purchases over $25,000 require a formal competitive
process administered by the UM Purchasing Department. Please review APL
VII-A for complete information. This section of our
website contains a form that can be used when obtaining quotes and
explains some of the things that need to be considered when doing so.
UM employees Providing the
quote form and these guidelines is not, in any way, meant to indicate
that you need to get the quotes yourselves. You may if you wish (in
which case you should use the form), but we are always available to do
the work for you.
Other universities in the UMS
You may use the RFQ form but please check with the people on your campus
that are responsible for the Purchasing function to find out whether
they would like you to get the quotes or if they do it for you.
How many quotes should be obtained?
By policy we need to get three or more, if possible. There are
situations where you will not be able to obtain more than one or two
quotes. On those occasions document your attempt to obtain three and
explain the circumstances that resulted in less. Do not obtain a quote
from a company with whom you do not intend to do business.
How to use the form
Print off a form for each company
from which you intend to get a quote.
In the upper left hand corner, fill
in the date you send out the request. The request should be sent to all
vendors on the same day.
Fill in your name, address etc. in
the section called "Return Quote to:"
Fill in as much of the company
information as you have.
Provide a specific date for the
return of the quotes; the same date should be used for all quotes.
Fill in the quantity and description
of the goods or services you are seeking. (Services may require
insurance read about insurance requirements in APL VII-A before obtaining
quotes.)
The rest of the form is for the
vendors to fill out. Mail or fax the form to the vendors and wait for
the results to come in!
DO NOT CONTACT A VENDOR TO CHANGE A
PRICE AFTER THE QUOTES ARE IN !!!
Doing so would be highly unethical for a public institution. Each
vendor has been given a fair and equal chance to quote; by giving any
vendor a second opportunity you put the University at risk for serious
criticism and you jeopardize future requests for quotes by the
University from the vendor community.
Always document the process
Keep copies of all quotes received. By policy we are to maintain
records documenting purchases for 5 years. (For UM, the Purchasing
Department will maintain the records.)
Pricing
Make certain that you know what you are paying for and that you
understand the pricing. If you have any questions, have the vendor
clarify the pricing for you. Check the vendors calculations fairly
often vendors make mathematical errors that you can easily discover.
Freight Terms
The most favorable terms for the university are FOB destination
prepaid. This term is stated on the quote form. "FOB (free-on-board)
destination" defines ownership of the shipment and means that the
supplier owns, and is liable for, the shipment until it reaches your
loading dock or other designated place. Should the shipment be lost,
damaged or destroyed before it gets to you, the shipper is responsible.
All quotes should contain this term, however some companies will not
agree to it. If you dont mind accepting responsibility for the shipment
before it is delivered, you can agree to "FOB Origin" terms, but insist
that the quote include the cost of shipment. All companies can give you
that information and if it is not part of the quote, you could be
charged an exorbitant shipping fee. The freight term "prepaid and added"
means the supplier will be invoiced by the carrier for freight charges
but it will be added to your invoice.
Payment Terms
"Net 30" is what you will see most often; it means that the vendor
expects payment within 30 days. However discount terms, such as "2/10
net 30" (a 2% discount if paid within 10 days) can provide savings and
may even make a vendor the "low bidder". Call your Purchasing or
Accounts Payable department for an explanation of any unfamiliar payment
terms.
Warranty
Check terms. Know when the warranty begins and ends. In some (high
end equipment) cases the warranty should begin when the equipment is
installed, tested and has been accepted by the University.
Insurance
If you are buying services and/or the vendor will come onto
University property for more than a delivery, insurance is important.
Read about insurance requirements in APL VII-A
Installation and other unique
requirements
Be sure to include any unusual requirements that you are expecting
of the vendor when you issue the request for quotations.
Feedback
Please provide feedback on the form to
meakin@maine.edu.
