**INACTIVE POLICY**

For Current Policies:
Policy Table of Contents

 


                      UNIVERSITY OF VIRGINIA
           FINANCIAL AND ADMINISTRATIVE POLICIES MANUAL



TITLE:  PROCUREMENT OF PROFESSIONAL AND            POLICY:  VII.A.9x 
        NON-PROFESSIONAL SERVICES                                  
                                                                   

Introduction

The Virginia Public Procurement Act, effective January 1, 1983,
describes how to obtain goods and services.  The emphasis of the
Act is to use competition to the maximum extent possible when
buying goods and services from non-governmental sources. 
Competition, when feasible, will enhance the University's ability
to obtain quality goods and services at the best price, providing
equal access to public business without favoritism.

See also policy VII.A.2, "Purchase of Goods from Outside Vendors."

The Act provides two types of formal competitive procedures: 
competitive sealed bidding and competitive negotiations.  With
competitive sealed bidding, one process for procuring non-
professional services, Purchasing issues a written invitation
for bid, describing the services to be procured,
the contractual terms and the bidder qualifications.  Competitive
sealed bidding is best used when the characteristics and quality
can be described specifically.  Price is the determining factor in
making an award.

If competitive sealed bidding is not practicable or advantageous,
Purchasing uses competitive negotiation. 
This method may be used to procure non-professional services and is
required to procure professional services. In this case, Purchasing
issues a Request for Proposal (RFP)
describing the services needed in general terms and the mandatory
and preferred contractual terms.  Although competitive negotiation
is used primarily to procure services, it is sometimes used to
procure hi-tech equipment, especially medical and research
equipment.  With competitive negotiation, price is not necessarily
the determining factor, although it may be, and the University has
the flexibility to negotiate for mutually satisfactory agreements.

Note:  This policy does not apply to certain professional services
and contracts procured by Facilities Management as follows:

 Facilities Management's Architectural and Engineering Services
 Division procures the professional services of architects,
 landscape architects, engineers, and land surveyors using
 competitive negotiation.

 Facilities Management's Construction Management Division procures
 construction contracts using competitive bidding.

Definitions and Descriptions

Competitive Sealed Bidding:  Purchasing issues a formal invitation 
for sealed bids with detailed specifications.
The contract is awarded to the lowest priced,
responsive and responsible bidder meeting the prescribed
specifications.  This method may be used to procure non-
professional services.

Competitive Negotiation:  The process is mandatory when procuring
professional services and one method to procure non-professional
services.  The process entails Purchasing and Materials Services
issuing a written RFP describing, in general terms, the service(s)
to be procured, the evaluation factors, and the applicable
contractual terms.  After proposals are received in response to a
RFP, professional and non-professional services are evaluated
differently.

Professional Services:  Services strictly defined to include work
performed by accountants, architects, land surveyors, landscape
architects, lawyers, physicians, optometrists, or professional
engineers.  When procuring one of these services, the department
and Purchasing jointly engage in individual
discussions with all offerors considered fully qualified,
responsible, and suitable.  The offerors may elaborate on their
qualifications, may give non-binding estimates of total project
costs, and may discuss methods to use in setting prices.  Once
Purchasing and the department select the top
ranked offeror, individual discussions are held to negotiate a fair
and reasonable price.  If an agreement cannot be reached with the
top firm, the University will attempt to reach an agreement with
the second ranked firm.

NOTE:  Virginia statues require that the Attorney General represent
the Commonwealth and every State institution, agency, or entity in
all civil matters and most criminal matters.  No outside legal
assistance may be procured except with authorization of the
Attorney General obtained in accordance with procedures outlined in
Section 2.1-122 of the Virginia Code. Authorization to procure
outside legal assistance will be granted only if the Attorney
General determines that it is impractical or uneconmical to render
the required legal service or, because of the service required, the
Attorney General's office is unable to render such service.

Non-professional Services:  Any service not specifically identified
as professional services.  When procuring a non-professional
service, a different procedure is used.  Purchasing and Materials
Services and the department select two or more offerors deemed
fully qualified and best suited according to the RFP factors.
Negotiations are then conducted with these offerors, with
Purchasing and the department selecting the best. 
Price is considered, but is not necessarily the sole
determining factor. 
                          
Processing Requests

For non-professional services, departments must provide written
justification when requesting non-University, non-State services. 
The justification must state why University or State resources
cannot economically or efficiently provide the services.

See also Procedure 7-15, "Procuring Professional and Non-
Professional Services."

EVALUATING PROPOSALS

                  Individual                              Highest
                  Discussions                Lowest    Professional
                   with all     Selective  Responsive  Qualities and
  Procurement     qualified   Negotiation  Responsible     Price
    Method         Offerors    Conducted     Bidder    Consideration

COMPETITIVE                                            Price is the
SEALED                                                 only 
BIDDING               No           No          Yes     consideration.


COMPETITIVE NEGOTIATIONS

(For) 
Non-
professional 
Services              No*          Yes          N/A         Yes

Professional 
Services              Yes          Yes          N/A         Yes


*The requesting department and Purchasing may decide to hold 
discussions with all offerors, but there is no
requirement to do so.   
                                           
                                                                   
ISSUED BY:                                                 01/01/89
Chief Contracting 
Officer                        7.1.9.1