Best Practices and Procedures

The following information offers insight into Pitt’s supplier best practices and procedures regarding spending with local and small businesses, in support of the Plan for Pitt.

University Goals for Local and Small Spend

• Purchasing Services and Strategic Sourcing are responsible for tracking and reporting local and small spend for all departments, responsibility centers, and the University as a whole. Each fiscal year, addressable spend is identified, categorized, and audited to produce an annual report that shows local and small spend by department. This data is used to establish goals based on a spend average and compare progress toward those goals.

• Information including upcoming projects, expiring contracts, and other planned purchases are used to create a 3-5 year goal for local and small spend.

• Strategic Sourcing and Purchasing Services staff will periodically review local and small spend goals and opportunities for each responsibility center, communicating this information to responsibility center leaders and directors of administration through regular emails and annual spend reviews.

Good Faith Efforts in Local and Small Spend for Non-construction Purchases

Purchasers are asked to make a good faith effort when completing non-construction purchases. Review the following guidance to ensure a good faith effort as a purchaser:

• Begin each purchase by determing the project budget
• Follow the guidelines in accordance with the dollar amount of the purchase
• If additional assistance is necessary, contact Jennifer Barnes, Supplier Engagement and Sustainability Manager.
• If no local or small businesses are identified, proceed with potential list of suppliers.
• Actively participate in review, scoring, interviewing, and debriefing of local and small  suppliers as a part of the Request For Information (RFI) and Request For Proposal (RFP) process.

Guidelines in Accordance with the Purchase Dollar Amount

Purchases Under $15,000

1. Determine if product or service is offered through an existing University-wide Contracted Supplier. University Policy FN 07 requires the use of University-wide contracted suppliers, when available, for the product being purchased.
2. If there is no University-wide Contracted Supplier available, the purchasers should search for local and/or small businesses first, using these resources

Purchases Estimated to be $15,000.01 - $75,000

1. Determine if product or service is offered through an existing University-wide Contracted Supplier. University Policy FN 07 requires the use of University-wide contracted suppliers, when available, for the product being purchased.
2. If there is no University-wide Contracted Supplier available, the purchaser should conduct and select a supplier through a competitive bidding process (reference Policy FN 07). The competitive bidding process should include good-faith efforts outlined in the Standard Operation Procedure (SOP) for RFPs which includes, but may not be limited to:
   • Sharing solicitation opportunities with Pitt partners and community organizations
   • Organizing pre-solicitation meeting or event to attract local and small bidders
   • Editing RFP language in response to feedback from pre-solicitation session(s)
   • Requiring non-local and small suppliers to create plans for local and small business engagement
   • Participation in debrief session offered to provide constructive feedback to unsuccessful bidders

Purchases Estimated to be Above $50,000.01

1. Determine if product or service is offered through an existing University-wide Contracted Supplier. University Policy FN 07 requires the use of University-wide contracted suppliers, when available, for the product being purchased.
2. If there is no University-wide Contracted Supplier available, the purchaser should follow their department's standard RFP process which may include contacting the procurement specialist assigned to their RC.
3. Allow at least six weeks for Purchasing Services due diligence and RFP timeline planning
4. Cooperate with good-faith efforts outlined in the Standard Operating Procedure (SOP) for RFPs which includes, but may not be limited to:
   • Sharing solicitation opportunities with Pitt partners and community organizations
   • Organizing pre-solicitation meeting or event to attract local and small bidders
   • Editing RFP language in response to feedback from pre-solicitation session(s)
   • Requiring non-local and small suppliers to create plans for local and small business engagement
   • Participation in debrief session offered to provide constructive feedback to unsuccessful bidders

Unmet Goals or Failure to Follow Procedure

Should the agreed upon spend goal (developed in consultation with the department) not be met by the specified deadline, Strategic Sourcing and Purchasing Services staff members may request a report of good-faith efforts undergone by responsibility center or department. Reports must include specific names of companies contacted for awards under $15,000, copies of correspondence between department staff and procurement specialist or supplier engagement and sustainability manager showing inability to award purchase to a local or small business. Remedy for when goals are unmet may include:

• Review of communications with suppliers
• Increased overview of future purchase
• Increased restriction of Directed Sole Source Justification Form