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1.5.2 Invitation to Bid (ITB) - Purchase Value Greater Than $50,000

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A. Guidelines

When the expected value of the goods or services exceeds $50,000, a formal solicitation process is required.  The following guidelines apply to the Invitation to Bid (ITB) solicitation method:

  • An ITB is generally used when the good or service lends itself to a precise set of specifications, such as manufacturer part number (or equivalent), size, weight, voltage, CPU capacity, etc.
  • The evaluation of the ITB is based upon the best value criteria established in Texas Education Code 51.9335(b), with price and delivery often being weighted more heavily
  • ITB opportunities are sent to known suppliers who provide the good or service, however, the opportunity is also publically posted allowing any supplier to submit a response
  • Terms and conditions that will govern the resulting purchase order or contract are included in the ITB document
    • Suppliers may note exceptions to cerrtain terms and conditions; however, the Office of Contracts and Procurement may disqualify a supplier for not accepting the posted terms and conditions

B. Procedure

  1. Departments submits a requisition in the PeopleSoft system that includes a list of all required items.
  2. Department staff who will be responsible for answering supplier questions or evaluation of bid responses must complete a Non-Disclosure / Conflict of Interest Statement before the ITB is issued.
  3. Contract and Procurement (CNP) staff will complete the ITB document and prepare the ITB document to include:
    1. a full description of all required items
    2. instructions for the bidder on how to submit pricing, delivery information and other required information
    3. submittal instructions and the deadline by which to submit their response
    4. terms and conditions which will govern the purchase order or contract
  4. The ITB is posted for a minimum of two (2) weeks on the Texas Comptroller of Public Accounts Electronic State Business Daily (ESBD) website.
  5. Bids received are held until the bid opening date. Suppliers are permitted to attend bid openings and request that bidder names be read aloud.
  6. CNP staff notifies the department of which bidder(s) are selected and obtains the departments agreement. Multiple awards are possible in order to achieve the overall best value for UT System.
  7. All suppliers who submitted bids are notified by CNP staff when an award has been made.
  8. CNP staff will issue a purchase order to the awarded supplier. In cases where a contract may be more appropriate than a purchase order, CNP staff will initiate the contracting process.