Approved Vendor/Supplier Program

Rice University Division of Information Technology
Office of Procurement and Vendor Relations
November 4, 2004

Rice University operates under the philosophy of decentralized buying and dealing primarily with University approved Approved Suppliers in its acquisition of products and services.

Additionally, Rice University incorporates commodity management strategies, which allows the University to negotiate best price and service agreements for specific goods and services and to formalize the relationship with certain suppliers. This strategy ensures the best overall value to the University community and increases business potential for suppliers. Suppliers of goods and services that are part of these negotiated commodity groups participate in a proposal and negotiation competition to qualify for status as a Rice University Approved Supplier. Once Approved Suppliers have been selected for each commodity group, those companies become the primary suppliers to the University.

The University’s process has advantages to both the supplier and University users. For the supplier, the main features are pre-negotiated terms and conditions for each order, speed of payment, one-time negotiation of terms and conditions, the ability to market products to the entire campus with the Division of Information Technology’s assistance, and the potential for a higher volume of business. For Rice University personnel, this process provides

(A) a list of Approved Suppliers who have already accepted

• negotiated commercial and/or federal government terms and conditions of sale,
• negotiated pricing or discount structures, and
• University performance standards;

(B) a decreased amount of effort, number of purchase orders, and documentation required on each order;

(C) a decreased volume of invoice processing;

(D) the capability for the University to accept prompt payment discounts.

Selection of Approved Suppliers is based upon a competitive bid/proposal process and the supplier’s meeting of certain criteria established by Rice University. To become a Approved Supplier, a company must comply with certain Rice University requirements for the program. Those requirements are as follows – The supplier:

A. Quality of Service Considerations:

• must be willing to negotiate any supplier pre-established minimum order quantities or amounts;
• must be willing to negotiate delivery requirements (i.e., desk-top delivery versus central receiving, etc.);
• must be willing to guarantee delivery schedules as identified at the time of order;
• must ship all orders F.O.B. Destination, Freight Pre-paid and Allowed;
• must agree to only provide products/services that meet or exceed all industrial safety standards;
• must provide a reasonable, industry competitive warranty for all products and services;
• once properly informed, must have the ability to assure compatibility with existing equipment;
• must offer a minimum thirty (30) day product evaluation/acceptance period;
• must identify/appoint a single point of contact for placement of orders;
• must identify a technical point of contact to provide product/service technical advice;

B. Economic Considerations:

• must be willing to pre-negotiate a definitive price or a discount pricing structure which will not be upwardly modified for a period of one year;
• must be willing to negotiate price increase limitations over the life of any agreement;
• must guarantee that prices are the lowest considering volume discounts, educational discounts and governmental discounts;
• must be willing to allow the University to retain the right to compete any single transaction which exceeds $100,000.00.

C. Mode of Operation Considerations:

• must sign a Approved Supplier Purchase Agreement;
• must accept the University’s Approved Supplier Purchase Agreement (PSPA) General Terms and Conditions and all other referenced documents, including federal government flowdowns and certification requirements;
• must have the ability to accept a MasterCard Credit Card (called the Rice University Purchasing Card) at the time of order, or accept an Electronic Funds Transfer (EFT);
• must be willing to work toward direct web ordering capabilities, including the ability to handle the University’s five (5) digit accounting code, and/or interface directly with the University’s Banner (Oracle), Release 11.02 automated financial system (and future upgrades);
• must provide a packing slip in all deliveries that identifies the University’s price for the item(s);
• must be willing to accept a thirty (30) day no-charge return policy;
• must be able to provide monthly usage reports per University specifications.

There may be cases where, in the best interests of the University, one or more of the above identified requirements may not be invoked. In such cases, the potential Approved Supplier must still meet all other requirements (or negotiate a mutually acceptable alternative). Any resulting agreement must be approved by the Manager, Procurement & Vendor Relations, prior to the formalization of the Approved Supplier relationship.