Competitive Bid Policy

SJSU's policy of awarding contracts to suppliers requires that we meet our needs for products and services at the lowest overall cost and the highest practical quality while affording the maximum opportunity practicable to those who wish to become suppliers to SJSU. See also Bidding Thresholds.

There are 4 conditions for awards:

  • Less than $100,000
  • Between $100,000 and $250,000
  • More than $250,000
  • Sole Source or Sole Brand
Type Justification
< $100,000

For orders estimated at less than $100,000, competition is sought if the Buyer determines that competition is desirable to:

  • Acquire the best price and/or delivery.
  • Develop a source.
  • Confirm prices.
  • Other compelling business reasons.

It is our standard business practice to confirm that reasonable prices have been quoted before making a commitment.
$100,000 to $250,000

Acquisitions for commodities and services estimated at between $100,000 and $250,000 will require informal bidding.

Also Note: Certified Small Businesses may also be awarded contracts without a formal bidding process as long as 2 price quotes have been obtained by the Procurement Team.

For more information, see our Small Business Program.
> $250,000

All purchase contracts involving an expenditure of more than $250,000 for products and/or services shall be awarded based on the formal competitive bid process with awards being made to the lowest responsible bidder meeting specifications on our Requests for Bids, and the highest ranked vendor on our Requests for Proposals.

Awards shall be determined on the basis of one of the following methods:

  • Cost alone.
  • On a cost per quality point basis.

Many CSU or campus-wide pricing agreements have been established as a result of the competitive bid process. Once such contracts or agreements are established, SJSU Buyers can purchase products and services against them without being constrained by any additional requirement for competition.

Sole Source or Sole Brand

The requirement for competitive bidding of products and services in excess of $100,000 shall not apply when the Chief Procurement Officer [CPO] determines that a product or service is unique or proprietary, single or sole source which is defined as:

A product or service the characteristics and functions of which are such that only a single product or service will properly satisfy the University's needs and all other products or services will be unacceptable for such needs.

For more information, see our Selection of Suppliers Policy.