How To Obtain QuotesPresented by:Dean Hudson

Robin Strickland

Office of Procurement and Business Services

April 2011

Where to start?

Determine the “Who, What, When, Where and Why”

Who is this for?...consider current/future users

What is it?...a product, service or combination…what exactly is needed…what are the characteristics and specifications

When is the product or service needed?...currently or in the future…delivery dates, start dates, frequencies

Where is the product or service needed?...consider now and future…any special delivery or installation instructions

Why is this commodity or service needed?

Other Considerations

Estimated usageLead timesPayment and shipping termsBidder site visitsSamplesCheck to see if the product is offered through a state contract (access state sites through Office of Procurement and Business Services web site, or contact June Barfield at ext. 2122)

Ok. I know what I need…let’s get those quotes!

South Carolina Consolidated Procurement Code

Section 11-35-1550. Bid procedures on procurements up to fifty thousand dollars ($50,000.00).

(b) Purchases over two thousand five hundred dollars to ten thousand dollars ($2,500.01 to $10,000.00). Solicitation of written quotes from a minimum of three qualified sources of supply must be made and documentation of the quotes attached to the purchase requisition for a small purchase over two thousand five hundred dollars but not in excess of ten thousand dollars. The award must be made to the lowest responsive and responsible sources.

CCU Procurement Operations Manual

Small Purchases

B. Purchases from $2,500.01 to $10,000.00The Procurement Office or purchase initiator will verbally* solicit written quotations from a minimum of three sources of supply. Documentation of the quotes shall be attached to the purchase requisition. The award shall be made to the lowest responsive and responsible source.

(*While verbal contact is allowed, the preferred method is to solicit quotes by fax or e-mail.)

Request For Quote Form (RFQ)

available from web site for your use in obtaining quotes

Obtaining Quotes

Obtain 3 or more

Internet page printouts are not acceptable – call or e-mail the company

Make sure the prospective vendor is someone you would do business with

Allow a reasonable time for vendors to return quotes

Got my 3 (or more) quotes…now what?

Quote Review

Pricing: understand the pricing…clarify questions with the vendor…check calculationsFreight Terms: most favorable for CCU is FOB (free-on-board) Destination – the vendor owns and is liable until deliveredPayment Terms: “Net 30” is most common – vendor expects payment within 30 daysWarranty: check terms – should begin when the equipment is installed, tested and acceptedInsurance: if the vendor will come on campus, evidence of insurance is needed (see Office of Risk Management’s web site)

Things to remember…

Don’t contact a vendor to change a price after the quotes are in – not ethical. Each vendor has been given a fair and equal chance and giving any vendor a second chance jeopardizes future requests.

Document the process: keep copies of all quotes received, correspondence, etc.

Prepare Purchase Requisition

Purchase Requisition input available through the web-based University forms. Complete and print. Attach all pertinent quotes and correspondence

Route through all appropriate approval channels

Technology related purchases require approval of your IRC or other IT personnel

Purchases that exceed $10,000…

Gather all the “who, what, when, where and why” information for Procurement – this is very helpful for the buyer

The Office of Procurement and Business Services will handle the quote process (Procurement Operations Manual)

Advertisement in the South Carolina Business Opportunities journal – opens competition

Questions?

Office of Procurement and Business Serviceshttp://www.coastal.edu/procurement/