Number: SOP-PURCH-07
Subject: Auctions and Reverse Auctions
Summary: Justifications that must be provided in order to purchase item at auction with university funds.
Source: University Procurement Services
Date of Issue: 12/04/2008
Date of Revision: 05/28/2019
Rationale
The University may find that its interests are best served by utilizing auctions. These auctions may be traditional auctions as well as on-line, reverse auctions. Regardless, departments require the pre-approval of the University Purchasing Department before engaging in either types. Auctioning sites, such as eBay, are not a permissible source as there are no safe means to adequately protect the University's funds. University policy, internal audit and state statutes require that all expenditures be protected and assure value received for payment.
Procedure
In the event that University Procurement Services identifies that a transaction utilizing an auction process best serves the interests of the University, the purchasing department may utilize or authorize the use of an auction transaction. University employees must secure prior approval from the purchasing department to conduct such transactions.
When an item is only available through an auction site there must be a compelling reason to seek a waiver. If a waiver is necessary, the following should be provided to Purchasing in writing for review and approval:
- Link to the auction event that provides product and price
- Justification
- no other known source
- item(s) discontinued or no longer available
- price is significantly less and of equal quality than any other source