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University Purchasing Overview

The goal of the Procurement Department is to satisfy the university’s requirement for goods and services promptly at the best value and lowest practicable cost for that value. Our procurement processes and practices conform to the Restructuring Management Agreement and the Commonwealth of Virginia Procurement Manual for Institutions of Higher Education and their Vendors. These regulations apply to all university departments, suppliers, activities, and funds regardless of the original source of the funds being used.

The practice of public Procurement has several fundamental obligations:

  • To obtain high quality goods and services at a reasonable cost
  • To conduct procurement activities in a fair and impartial manner
  • To provide all qualified suppliers access to public business and
  • To ensure that no bidder is arbitrarily or capriciously excluded

Service Level Expectations

Because of the decentralization and automation of the procurement process (HokieMart), procurement procedures have been greatly simplified and streamlined over the years. Procurement’s goal is to complete the processing of requisitions valued under fifteen thousand dollars ($15,000) within five (5) working days after receipt barring complex negotiations. More complex and higher value procurements will take longer for Request for Proposals (RFP). Regardless of time expectations for completion of the purchase, a buyer should be in communication with the contact person who prepared the HokieMart requisition within forty eight (48) hours of it arriving in Procurement (following all approvals) and being assigned a requisition for processing.

Checks and Balances

Virginia Tech’s procurement system and procedures continue to be established and refined to create checks and balances to ensure the university is properly procuring goods and services. However, it is the expectation of every individual who plays a part in the purchasing process to follow the rules, procedures, policies of the university, and be good stewards of university funds, regardless of the source of funds.

Classification of Purchases

$10,000 or less

Departmental Delegations

Competition is not required but encouraged. Department confirms price and prepares a HokieMart requisition. HokieMart will convert the requisition to a purchase order (PO) and deliver it to the supplier.

Over $10,000 to $200,000

Informal or Small Purchases

The department will prepare a HokieMart requisition and the workflow will carry the requisition to procurement where competition will be obtained. A minimum of three (3) quotes will be solicited by phone, fax, or unsealed bid.

Note: Procurement buyers may, in their sole discretion and in the best interest of the university, place an order with a suggested source without seeking further competition for goods and services not exceeding ten thousand dollars ($10,000) in value.

Over $200,000

Formal or Large Purchases

The department will prepare a HokieMart requisition and the workflow will carry the requisition through any required intermediate approval steps then to procurement. Procurement will solicit at least six (6) sources in writing, using either competitive sealed bidding or competitive negotiation, advertising is required.

Types of Purchases

Emergency

An emergency is an occurrence of a serious and urgent nature (not lack of planning) that demands immediate action. Full justification of the purchase is required. Justification should relate to health, safety, or protection of property. If time permits, contact Procurement before making the purchase. Competition is not required but should be obtained, time permitting. As soon as feasible, submit a HokieMart requisition and emergency justification and a confirming purchase order will be issued.

Waiver of Competition (formerly Sole Source)

Contact Procurement for further guidance.

Previously Owned or Used Equipment Valued up to $100,000

Competition not required, the department will prepare a HokieMart requisition up to two hundred thousand dollars ($200,000). If above two hundred thousand dollars ($200,000), procurement will issue a purchase order.

Note: This classification does not include factory rebuilt, demonstration, or remanufactured equipment.

Request for Proposal

A Request for Proposal (RFP) is a formal procurement process soliciting qualified suppliers to submit a proposal to Virginia Tech. All proposals are subjectively evaluated and scored and negotiations are conducted with top offerors. Awards can be made to multiple proposers if stated that it is an option. The RFP allows awards to be made based on best value (all things considered) and not strictly on low price.

Invitation for Bid

An invitation for bid (IFB) is a formal procurement process soliciting qualified suppliers to submit their lowest price for goods or services well defined by the university. Award is based strictly on lowest price with a responsible and responsive bidder. Negotiations are not allowed.