Cost comparison

[marieb...@gmail.com]

When reviewing price comparisons it is challenging to get the PI and/or purchaser to document why the want a certain item and how they can be sure they got the best price. Uniform guidance allows website searches and company price lists. Also UG considers the time frame for delivering.

[Edie Nelson]

I agree.  I just had a cost comparison come through that basically stated that they liked working with the vendor.  It seems like I have go through this with them every year.  I told them that they can provide that as a reason for selection but only after they provide additional options.  Sometimes getting the additional options gets them thinking about using the lower cost option....if anyone has a succinct argument for price comparisons, I would welcome it.

[Nicole Pilman]

A succinct argument for price comparisons is that University policy requires it for purchases of $10,000 or more.  

This definition found in the "Purchasing Goods and Services" Policy may be helpful as you communicate with PIs the information required for the price comparison:

Reasonable Price

This is a price that can be shown to be not excessive and consistent with current market prices. Reasonable price may be ascertained by sending out a Request for Bid (RFB) or Request for Proposal (RFP) to three or more competitors and comparing bids/proposals, or by comparing a quoted price to one or more of the following:

• Comparison to previous purchases
• Comparison to peer institution's purchase
• Comparison to similar purchases
• Cost / Price breakdown of all charges + markup
• Knowledge of the market