Indiana University Institutional Policy - Purchase Order Award Criteria

SUBJECT: Purchase Order Award Criteria

SOURCE: University Purchasing Department

POLICY NO: P - 5.5

DATE ISSUED: February 18, 1992

DATE REVISED: March 1, 2000

RATIONALE:

Cost may not be the sole criteria considered in the award of purchase orders.

POLICY:

Awards shall be made employing a combination of the following criteria:

  1. Degree to which the item(s) or service quoted will best fill the university's requirements
  2. Price includes freight, payment terms, and life-cycle costing
  3. Delivery date
  4. Service
  5. Everything being equal, purchase will be made from local, State and U.S. vendors, in that order

DEFINITIONS:

Life-cycle costing includes total acquisition price, installation, annual operating and maintenance costs, and residual value.

PROCEDURE REFERENCE:

CROSS REFERENCE:

RESPONSIBLE ORGANIZATION:

University Purchasing Department

Last Reviewed: March 1, 2000