Sales Tax & Quotes:
Federal requirements for justifying price rationale on Form A include the total cost of the acquisition, inclusive of tax (but excluding use tax) and shipping/handling as presented on the vendor quote. If the base cost of your equipment/services is $9,999.99, tax and applicable shipping will bring the acquisition over the competitive quote requirement of $10,000. (For more information, see "Cost or Pricing Data" here.)
All Grant and Contract-funded purchases over $30,000 must not be entered into with a Debarred or Suspended supplier, per FAR 52.209-6. Campus Purchasing will work with the supplier and the System for Award Management (SAM) database to ensure your vendor is not Debarred, and that the supplier certifies to the Anti-Lobbying Act.
When only one bid is received in response to a competitive bid solicitation, you do not have price competition. If you decide to award on the basis of a single submitted bid price, you must justify that the price is fair and reasonable. At a minimum, you should compare the bid price to your own in-house estimate, and/or past prices paid for the same or substantially similar item(s) in the past. For purchases that meet this criteria above the Simplified Acquisition Threshold (currently set at $250,000), profit must be negotiated and included in your price reasonableness statement. For more on profit, view "How do I justify profit in a federal non-competitive justification?" on the Procurement FAQs page.
- Utilize Price Analysis (obtaining multiple quotes) wherever possible; competition should be sought with all federal orders, and will speed up the process of your order.
- If at all possible, use a UCOP Agreement Primary or Co-Primary (not Price Schedule) supplier; using contract pricing will also speed up your order, and is encouraged by the Funding Agency.
- Price Reasonableness is a requirement of Government, per FAR 15.4; the government is looking to ensure the price paid is fair and reasonable. A sole source as a justification for price reasonableness is not allowed. Use the research you conducted to find this product as part of your price reasonableness justification. You can use prior costs, similar product costs, established price lists, or market research as your justification.
- If using a Sole Source, be sure to answer the question completely. We are looking for specific features or parameters to explain why this is the only vendor that can provide the purchase.
- Utilize registered Small Businesses up to the $100,000 threshold. Using small business will also speed up your order, and is encouraged by the Funding Agency.