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Handbook of Business Procedures

Date published: 
Last revised: 
Issued by: 

March 5, 2012
October 29, 2015


Part 7. Purchasing - Table of Contents


A. Guidelines

When the expected value of the goods or services exceeds $50,000, a formal solicitation process is required. The following guidelines apply to the Invitation to Bid (ITB) solicitation method:

  • An ITB is used when the decision to award the contract is made solely on the basis of price and delivery.
  • An ITB is normally used when the procured good or service lends itself to a precise set of specifications, such as manufacturer part numbers, size, weight, number of classes, etc.
  • ITB opportunities are sent to known suppliers who provide the good or service. An ITB opportunity is also publically posted on the BidWeb website and on the Texas Comptroller of Public Accounts Electronic State Business Daily (ESBD) website so that any supplier may submit a response.
  • Terms and conditions that govern the contract are contained within the ITB. Suppliers can note exceptions to certain terms and conditions; however, the university may disqualify a supplier for not accepting the posted terms.

B. Procedure

  1. The department submits a POINT Plus PB4 requisition document that includes a list of all required items.
  2. Anyone who will be answering bidder questions or reviewing bid responses must complete a Non-Disclosure/Conflict of Interest Statement before the ITB is issued. The designated purchasing buyer will provide the form.
  3. The purchasing buyer drafts an ITB document, which includes:
    1. a full description of all required items
    2. instructions for the bidder on how to submit pricing and delivery
    3. submittal instructions and the deadline by which to submit the bid
    4. terms and conditions
  4. The ITB is posted for a minimum of two weeks.
  5. Bids received are held until the bid opening date. Suppliers are permitted to attend bid openings and can request that bids be read aloud.
  6. The Purchasing Office tabulates the bids.
  7. The purchasing buyer notifies the department of which bidder(s) are selected and obtains the department’s agreement. Multiple awards are possible in order to achieve the lowest cost and/or fastest delivery to The University of Texas at Austin.
  8. All bidders or proposers are notified by the Purchasing Office when an award is made, and the results are publically posted on the Texas Comptroller of Public Accounts Electronic State Business Daily (ESBD) website.
  9. The purchasing buyer issues a purchase order to the supplier. In cases where a contract may be more appropriate than a purchase order, the Purchasing Office will notify the Business Contracts Office, which will work with the department to develop a contract.



Part 7. Purchasing - Table of Contents