How To Obtain Quotes Presented by: Dean Hudson Robin Strickland

1. How To Obtain Quotes Presented by: Dean Hudson Robin Strickland Office of Procurement and Business Services April 2011

2. Where to start?

3. Determine the “Who, What, When, Where and Why” Who is this for?...consider current/future users What is it?...a product, service or combination…what exactly is needed…what are the characteristics and specifications When is the product or service needed?...currently or in the future…delivery dates, start dates, frequencies Where is the product or service needed?...consider now and future…any special delivery or installation instructions Why is this commodity or service needed?

4. Other Considerations • Estimated usage • Lead times • Payment and shipping terms • Bidder site visits • Samples • Check to see if the product is offered through a state contract (access state sites through Office of Procurement and Business Services web site, or contact June Barfield at ext. 2122)

5. Ok. I know what I need…let’s get those quotes!

6. South Carolina Consolidated Procurement Code Section 11-35-1550. Bid procedures on procurements up to fifty thousand dollars ($50,000.00). (b) Purchases over two thousand five hundred dollars to ten thousand dollars ($2,500.01 to $10,000.00). Solicitation of written quotes from a minimum of three qualified sources of supply must be made and documentation of the quotes attached to the purchase requisition for a small purchase over two thousand five hundred dollars but not in excess of ten thousand dollars. The award must be made to the lowest responsive and responsible sources.

7. CCU Procurement Operations Manual Small Purchases B. Purchases from $2,500.01 to $10,000.00 The Procurement Office or purchase initiator will verbally* solicit written quotations from a minimum of three sources of supply. Documentation of the quotes shall be attached to the purchase requisition. The award shall be made to the lowest responsive and responsible source. (*While verbal contact is allowed, the preferred method is to solicit quotes by fax or e-mail.)

8. Request For Quote Form (RFQ) available from web site for your use in obtaining quotes

9. Obtaining Quotes • Obtain 3 or more • Internet page printouts are not acceptable – call or e-mail the company • Make sure the prospective vendor is someone you would do business with • Allow a reasonable time for vendors to return quotes

10. Got my 3 (or more) quotes…now what?

11. Quote Review • Pricing: understand the pricing…clarify questions with the vendor…check calculations • Freight Terms: most favorable for CCU is FOB (free-on-board) Destination – the vendor owns and is liable until delivered • Payment Terms: “Net 30” is most common – vendor expects payment within 30 days • Warranty: check terms – should begin when the equipment is installed, tested and accepted • Insurance: if the vendor will come on campus, evidence of insurance is needed (see Office of Risk Management’s web site)

12. Things to remember… • Don’t contact a vendor to change a price after the quotes are in – not ethical. Each vendor has been given a fair and equal chance and giving any vendor a second chance jeopardizes future requests. • Document the process: keep copies of all quotes received, correspondence, etc.

13. Prepare Purchase Requisition • Purchase Requisition input available through the web-based University forms. Complete and print. • Attach all pertinent quotes and correspondence • Route through all appropriate approval channels • Technology related purchases require approval of your IRC or other IT personnel

14. Purchases that exceed $10,000… • Gather all the “who, what, when, where and why” information for Procurement – this is very helpful for the buyer • The Office of Procurement and Business Services will handle the quote process (Procurement Operations Manual) • Advertisement in the South Carolina Business Opportunities journal – opens competition

15. Questions? Office of Procurement and Business Services http://www.coastal.edu/procurement/