Purchasing Definitions

Preferred Vendors

Preferred Vendor relationships at NU are established one of two ways:

1. A contract is established based on the results of a formal competitive bid process managed by PRS.  Current providers of these products/services on campus are invited to submit a proposal.  The vendor(s) that are awarded contracts were determined to represent the best value to the University.  Department and school representatives (some of your peers) are involved in the evaluation and decision making process.

1. A pricing agreement is established based on a negotiation between the vendor and PRS (not as a result of a formal competitive solicitation).  These agreements are established because it has been determined to be in the best interest of the University to establish a relationship with these vendors.  Some of the reasons are that there is a strong University preference for the product or service offered by a particular vendor, the product or service needed is proprietary, unique, or exclusive in nature, the individual amount per transaction may be very low, etc.

Departments and schools are strongly encouraged to utilize Preferred Vendors for the following reasons:

• It has been determined that Preferred Vendors deliver the best overall value to the University based on price, delivery capabilities, quality, past performance, training, financial stability, etc.

• Consolidation of usage drives up volume, which is what provides incentive for vendors to offer the best possible price to the University.

• It minimizes duplication of effort.  Departments and schools are not required to solicit other bids when choosing to utilize a Preferred Vendor because this activity has already been performed by PRS and the terms and conditions have already been established.

• Service levels are higher because these vendors have more of a commitment to the University and the contract or agreement allows us to build a relationship with them.  PRS is therefore able to hold these vendors more accountable in order to make sure the products and services being provided meet your expectations.

• Eventually it will be much easier to order from preferred vendors due to the implementation of the new financial management and e-procurement system.

Some contracts that are established may be exclusive. These contracts are usually for very specific purposes and only the resulting contract will be used for that particular product or service. Exclusive contracts are established as a result of a formal competitive solicitation that may be handled by Purchasing Resource Services, University Services, or by an individual department or school. These contracts represent a much higher level of commitment on behalf of the University.

• Intercampus Bus Service
• Vending
• Institutional Food Service
• On-campus Banking Services
• Refuse Pick-Up
• IT & Telecom related Products and Services