XI. Laws and Regulations Impacting UNM Purchasing

This chapter will cover competitive procurement requirements, or “bid limits.”                            

a. Dollar Limits

       i.          Small Purchase

 Goods Up to $10,000

Goods up to $10,000 are considered a small purchase.  Goods and services combined will be treated as a service.  The cost of the goods must be substantiated.  This may be accomplished by obtaining verbal or formal quotes; comparing recent orders; monitoring the market or Internet research.

Examples of substantiation:

Goods up to $10,000 a cost comparison verbally may be acceptable.

Greater than $5,000 - informal quotes or formal, written quotes may be acceptable.  Three or more quotes should be your goal. 

Services up to $5,000

Services up to $5,000 are considered a small purchase.  Goods and services combined will be treated as a service.  The cost of the services must be substantiated.  This may be accomplished by obtaining verbal or formal quotes; comparing recent orders; monitoring the market or Internet research.

ii.   Goods from $10,000.01 - $20,000

For goods that are more than $10,000 and less than or equal to $20,000, UNM Purchasing Department Buyers must obtain one quote or other documentation which describes the price and product required.  A list of commodity codes and Buyer assignment is located at http://purchase.unm.edu/Staff%20and%20Commodities.html

NOTE:  Splitting an order to avoid competition is prohibited by state statute.

iii.  Goods from $20,000.01 - $60,000

For goods that are more than $20,000 and less than or equal to $60,000, UNM Purchasing Department Buyers must obtain three quotes.  One quote is acceptable if a contract exists, at the buyer’s discretion the purchase is urgent, or based on the fair value per the Buyer’s experience.

iv.  Services from $5,000.01- $60,000

For services (or goods and services combined) that are more than $5,000 and less than or equal to $60,000, UNM Purchasing Department Buyers must obtain three quotes, unless an informal bid process has occurred or there is an existing contract.  One quote is acceptable if a contract exists, at the buyer’s discretion the purchase is urgent, or is based on the fair value per the Buyer’s experience.

v.   Goods or services over $60,000

$60,000 is the State bid limit.  Formal Competition is required.  This requires an informal bid, an existing contract, or three quotes.  Only one quote is required if  a contract exists, at the buyer’s discretion the purchase is urgent, or based on the fair value per the Buyer’s experience.  If the bid is a sole source bid, it is subject to being posted in the sunshine portal for 30 days and is subject to

vi.  All Services over $60,000

Examples of Professional Services are Architects, Archaeologists, Engineers, Land Surveyors, Landscape Architects, Medical Arts Practitioners, Scientists, Management and Systems Analysts, Certified Public Accountants, Registered Public Accountants, Lawyers, Psychologists, Planners, Researchers, and persons or businesses providing similar services.

vii. Service Provider Questionnaire

A Service Provider Questionnaire is required for all services, unless the vendor is a universal service provider.  The SPQ form can be found at http://purchase.unm.edu/spq-form/index.html.  SPQs must be submitted to Financial Services when requisitions are submitted.  If the SPQ is not received within 5 business days, the requisition will  be denied.  If an SPQ is not required, the statement at the top of the USP list must be included in the email to Financial Services, or the requisition will be denied immediately.

b. Request for Proposal/Invitation for Bid

Request for Proposal (RFP), and Invitation for Bid (IFB), are mechanisms to competitively solicit competitive value and pricing for goods and/or services.  A Request for Proposal is utilized when factors other than, but not excluding, cost are important evaluative factors in making an award decision.  An Invitation for Bid is utilized when the sole determinant of an award is based on cost alone. 

Each University competitive requirement is unique; therefore, working directly with the Purchasing Department Buyer assigned to the commodity your goods and/or service are categorized under will provide you with the best guidance on how to proceed. 

NOTE:  Request of Proposal (RFP), and Invitation for Bid (IFB), must be publicly advertised and provide a minimum of 10 business days for interested parties to respond to the solicitation.  Therefore, it is imperative to take action and contact the Purchasing Department as soon as you are aware of a purchasing requirement that may be needed for your organization.

The Purchasing Department is here to assist you in obtaining the

best VALUE and COST for your organization.

A list of commodity codes and assigned Buyers is located at http://purchase.unm.edu/Staff%20and%20Commodities.html 


c. GSA, SPD and Price Agreements

The Procurement Code allows the contracting for goods and services under existing contracts that have already been formally competed subject to the following conditions:

  • GSA CONTRACTS (General Services Administration)

The University may utilize established GSA Contracts if the vendor is willing to extend such pricing to the University.  Such willingness must be indicated in writing as well as a copy of the contract.  If a vendor is able to provide pricing “at” or  “below “ a GSA contract, that vendor may be awarded upon proof of such pricing. 

  • SPD Agreement (State Purchasing Division)

The State of New Mexico routinely solicits competitive pricing and establishes agreements with vendors who provide commonly used goods and services.   The University may utilize established SPD agreements, provided all Terms and Conditions of the Agreement are followed to include quantity.

  • UNM PRICE AGREEMENTS

The University routinely competes and establishes Agreements with vendors who provide commonly used goods and services for the University. Examples of such Agreements are Bottled Water, Car Rental, Hotel, Computer Equipment, IT Services, Laundry Services, Security Services and Shipping.

  • SOLE BRAND/SOLE SOURCE

A contract may be awarded without competitive sealed bids or competitive sealed proposals regardless of the estimated cost when the purchasing agent or a central purchasing office makes a determination, after conducting a good-faith review of available sources and consulting with the using agency, that there is ONLY one source for the required service, construction, or item of tangible personal property.  The price must be proven reasonable, or justified; price alone does not justify a sole source.

Sole Source for Services and Sole Source/Brand Forms may be downloaded from the Purchasing Department Website.