Step 1: Determine the Total Contract Value (TCV)
The Total Contract Value (TCV) is the estimated cost of your purchase, including the initial contract period, any optional renewals, and the total potential spend. The TCV determines the competition threshold and procurement method required.
- How to Calculate TCV: Add the cost of the initial term plus any potential renewals or additional spend over the life of the contract. For example, a 1-year contract for $50,000 with two optional 1-year renewals at $50,000 each has a TCV of $150,000.
- Why It Matters: The TCV ensures you follow the correct process based on the full financial commitment, not just the initial cost.
Step 2: Identify the Competition Threshold
VCU’s procurement process varies based on the TCV. Below are the thresholds, methods, and estimated timelines:
Up to $10,000: Delegated Authority
- Overview: Departments have delegated authority to make purchases up to $10,000 without involving University Purchasing.
- Process: Issue a purchase order directly to the vendor through RealSource or use a P-Card. Ensure the price is reasonable and document the transaction.
- Note: Departments must still follow VCU’s fundamental obligations, such as ensuring fairness and obtaining high-quality goods at a reasonable cost.
$10,000+ to $200,000: Small Purchase
- Overview: Purchases in this range use informal “small purchase” methods to streamline the process while ensuring competition. Typically managed by Purchasing, departments may lead these efforts if they collaborate with Procurement to ensure compliance and adherence to proper procedures.
- Methods:
- Best Value Acquisition (BVA): Award based on multiple criteria (e.g., quality, delivery, vendor experience), not just price. Requires soliciting at least four Small Business and Supplier Diversity (SBSD) certified firms.
- Request for Quote (RFQ): Award based on the lowest price. Also requires soliciting at least four SBSD certified firms.
- Process: Submit a requisition in RealSource. University Purchasing will manage the BVA or RFQ process.
- Timeline:
- BVA: 15-60+ days, depending on the complexity of the purchase and vendor responses
- RFQ: 5-15+ days, depending on the complexity of the purchase and vendor responses.
Over $200,000: Formal Process
- Overview: Purchases above $200,000 require a formal competitive process to ensure transparency and compliance. Managed by Purchasing only.
- Methods:
- Request for Proposal (RFP): Seeks proposals and awards to the best proposal based on multiple criteria (e.g., quality, cost, vendor capability). Involves competitive negotiation and formal public posting.
- Invitation for Bid (IFB): Uses competitive sealed bidding, awarded to the lowest-priced responsive, responsible bidder. Requires clear specifications.
- Process: Submit an over $10,000 requisition in RealSource. University Purchasing will conduct the RFP or IFB, including public posting and evaluation.
- Timeline:
- RFPs: Typically 90-125+ days, depending on complexity, public posting requirements, and evaluation process. Complex projects may take longer.
- IFBs: Typically 45-90+ days, depending on complexity.
Step 3: Consider Alternative Procurement Methods
In addition to the standard methods above, alternative approaches may apply depending on your purchase:
Cooperative Procurement (Any Dollar Amount)
- Overview: VCU can use cooperative contracts established by other public entities (e.g., state or national associations) to streamline purchasing.
- Process: Work with University Purchasing to identify and utilize an existing cooperative contract. This can apply to any TCV range.
- Timeline: Varies widely—can be as quick as 5-10 days if a contract is readily available, but may take longer if additional quotes or negotiations are needed.
- Note: Departments are encouraged to seek cooperative contracts to save time and leverage pre-negotiated terms.
Other Methods (TCV Over $10,000)
- Sole Source: Used when a product or service is only available from one source. Requires justification and approval by University Purchasing.
- Timeline: A minimum of 5-15+ days after submitting the requisition and justification, due to required market analysis and documentation. Complex cases may take longer.
- Form: Access the Sole Source Justification Form
- Emergency: For urgent purchases where delay would cause serious harm. Requires justification and approval.
- Timeline: Can be expedited to 1-5+ days, depending on the urgency and Purchasing’s approval process.
- SBSD Certified Firm Spot Award: A one-time, non-recurring purchase under $200,000 from a SBSD Certified firm. Encourages supplier diversity.
- Timeline: Similar to small purchases, typically 1-10+ days.
Step 4: Check for Exceptions to Competition
Purchases over $10,000 typically require competition, but certain exceptions exist. These exceptions have specific limits ($200,000 or unlimited) and are numbered EC #1 to EC #39, matching the existing spreadsheet.
How to Use Exceptions
- Submit a requisition in RealSource with a brief justification (e.g., “EC #17—proprietary software, only one vendor”).
- University Purchasing will review and approve if it qualifies.
- Timeline: Expect a minimum of 5-15 days for review and approval, plus additional time for vendor delivery.
Exceptions to Competition
Below are all 39 exceptions, grouped by category for clarity:
Arts, Events, and Media
| Exception Area | Description | Dollar Threshold |
|---|---|---|
| Game Officials | Referees, officials, and umpires for athletic events | $200,000 |
| TV / Radio | Televised or radio programs (e.g., athletic events, televised conferences, etc.) whereby specific stations are selected because of market demographics | $200,000 |
| Performing Arts / Media Services | Writers, musicians, designers (e.g. set designers, musical design/composition, sound design artists), choreographers, photographers, videographers, and related social media services | $200,000 |
| Arts / Exhibitions | Rental fees for exhibitions of historical artifacts or original works of art. (The rental fee may include charges other than the rental of the exhibition, such as transportation costs) | $200,000 |
| Advertisements | Advertisements in newspapers, magazines, journals, radio, television, social media, digital platforms, etc. | $200,000 |
| Speakers / Perf Artists | Speakers and performing artists | Unlimited |
Education and Research
| Exception Area | Description | Dollar Threshold |
|---|---|---|
| Books / Subscriptions | Print or electronic books and subscriptions, printed materials, reprints, film rentals, videocassettes, DVD, slide presentations, online streaming, etc., when only available from the producer or protected distributors | $200,000 |
| Registration Fees | Conference attendance, to include: conference registration, course fee, seminar fee, training fee, and tuition | $200,000 |
| Acad / Res Consults | Academic, Enrollment, and Research consulting, and related services | $200,000 |
| Edu Institutions | Purchases from the Federal government, states and their agencies, academic institutions (public and private), public bodies, and non-profit organizations | Unlimited |
| Academic Testing | Academic testing and evaluation services | $200,000 |
| Accrued Fees | Accreditation fees | $200,000 |
| Equipment Testing or Eval. | Equipment testing or evaluation (limited to purchases of quantities considered necessary for complete and adequate testing) | $200,000 |
| Training / Instruction / Workshops | Training sessions, instructional services, and workshops | $200,000 |
Travel and Conferences
| Exception Area | Description | Dollar Threshold |
|---|---|---|
| International Purchase / Non-domestic Consumption | Purchases made by a university employee or agent while located in another country and the required goods/services are purchased from a vendor located in that country and the purchased goods/services will be used in the country where they are purchased | $200,000 |
| Foreign Grp Travel | Group travel in foreign countries | Unlimited |
| Conf Fac / Svcs | Conference facilities and services NOTE: Only when facility has exclusive or preferred service providers are those services exempt from competition. |
Unlimited |
| Participation in Athletics Events | Participation in intercollegiate athletic tournaments and events including team travel and lodging, registration and tournament fees | Unlimited |
Equipment and Maintenance
| Exception Area | Description | Dollar Threshold |
|---|---|---|
| Maint & Repair | Maintenance and repair for high-cost, sophisticated equipment where there is no known competitor and service must be purchased from the manufacturer of the equipment (i.e., void warranty) | $200,000 |
| Used Equipment | Purchases of used equipment | Unlimited |
Health and Professional Services
| Exception Area | Description | Dollar Threshold |
|---|---|---|
| Transplants | Transplants, related transplant services, and implants | $200,000 |
| Med / Health Svcs | Services provided by public and private hospitals, medical practices, medical clinics, and individuals that are licensed and authorized by law to engage in the prevention, diagnosis, or treatment of human illness, injury, physical disability, mental health, special needs, substance abuse, or emotional condition | $200,000 |
| Facilitators / Mediators | Facilitators and Mediators | $200,000 |
| Pharmacies / Medical Residencies | Pharmacies participating in pharmacy student in-service programs wherein all qualifying facilities are eligible and other medical related training programs (e.g., medical residencies) *If exceeding 200k additional justification is required |
$200,000* |
| Legal Svcs | Purchase of legal services, provided that the Office of the Attorney General has been consulted, or expert witnesses or other services associated with litigation or regulatory proceedings | Unlimited |
Technology and Utilities
| Exception Area | Description | Dollar Threshold |
|---|---|---|
| Exclusive Svcs | Specialized software licenses and applications, websites, browser plugins, subscriptions, electronic databases, software-as-a-service (SAAS), and maintenance or upgrades of existing software already purchased | $200,000 |
| Utilities | Utilities – electricity, natural gas, water, etc. | Unlimited |
Other Common Exceptions
| Exception Area | Description | Dollar Threshold |
|---|---|---|
| Sponsorships | Contributions/donations/sponsorship made by a university | $200,000 |
| Honoraria | Honoraria | $200,000 |
| Pass-Throughs | Pass-through procurements (examples include, but not limited to, contracting for alumni functions for which the institution is reimbursed by the alumni and materials purchases for students by a faculty member using state funds and for which the students fully reimburse the institution) | $200,000 |
| Real Estate | Real estate leases | $200,000 |
| Gov-to-gov | Purchases from governmental sources | Unlimited |
| Special Sectors | The purchase of goods or services that are produced or performed by or related to: Persons, or in schools or workshops, under the supervision of the Virginia Department for the Blind and Vision Impaired; Nonprofit sheltered workshops or other nonprofit organizations that offer transitional or supported employment services serving the handicapped; Private educational institutions; or Other public educational institutions |
Unlimited |
| Mem / Assoc. dues | Memberships and Association dues | Unlimited |
| Grant sub-awards* | Sponsored research grant sub-awards and contract sub-awards, not to include the purchase of goods or services by the Institution. *Ryan White services specified in the grant are exempt |
Unlimited |
| Royalties | Royalties | Unlimited |
Step 5: Submit Your Purchase
Follow these steps to complete your purchase:
For Purchases Up to $10,000
- Issue a PO: Issue a purchase order in RealSource or use a P-Card.
- Supporting Documentation: Retain documentation for audits and attach it to RealSource when applicable/appropriate.
- Contracts: For orders up to $10,000, VCU prefers to avoid contract reviews when vendors provide paperwork.
- Our Solution: When possible we will issue a Purchase Order (PO) referencing the firm's Statement of Work (SOW)—no signing needed.
- How It Works
- Option 1: Submit vendor docs (e.g., SOW) in RealSource, get approvals, and issue a PO.
- Option 2: If a signature is required, use Contracts+ in RealSource for contract review.
For Purchases Over $10,000
- With Competition: Submit a requisition in RealSource. University Purchasing will manage the BVA, RFQ, RFP, or IFB process.
- With an Exception or Alternative Method: Submit a requisition in RealSource with a justification (e.g., “EC #17—proprietary software” or “Sole Source—only one vendor”). Purchasing will review and approve if it qualifies.
- Contracts: For over $10,000, Purchasing will coordinate with the Contracts Team for review of legal sufficiency, compliance, and risk.