28.3.3 Vendor Selection

In principle, selection of vendors must be conducted by competitive procedures which ensures fairness and transparency such as competitive bidding (tender). Supply Store

The Supply Store is operated and managed by the Procurement and Supplies Section as a basic resource of the University’s daily procurement of research and office supplies. Requesting Units may use the Supply Store with the approval by the Budget Holders, within the procurement amount of less than 1.5 million JPY. Direct Orders

In situations with delegated Procurement Authority by where the procurement amount does not exceed 1.5 million JPY, Requesting Units may proceed to vendor selection at their own discretion by preliminary approval of the Budget Holders while maintaining economic efficiency and fairness. Making an intentional split order to adjust the total amount is not acceptable and would be inappropriate. Splitting order to avoid best value comparable analysis and competitive bidding is not acceptable either. For each Direct Order, only an official authorized purchase order form provided by the University must be used in principle, however, an exceptional procedure stipulated separately by the Vice President for Financial Management may be applied in cases when it is difficult to follow the said procedure. Purchase Request

Excepting the cases within delegated Procurement Authority by, only the Procurement Departments may procure goods, services and construction on the University’s behalf. Requesting Units must ask relevant Procurement Department for vendor selection and contract through a request with preliminary approval by the Budget Holders (Purchase Request). Best Value Comparable Analysis

When the procurement amount is not less than 1.5 million JPY and less than 3.0 million JPY(or, if the Requesting Unit is a research unit or section managed by the Provost, is not less than 1.5 million JPY and less than 5.0 million JPY), the Procurement Departments may select the vendor via the best value comparable analysis based on the price information, such as official quotations submitted by two or more vendors. Bidding Process

When the procurement amount is not less than 3.0 million JPY (or, not less than 5.0 million JPY if the Requesting Units is a research unit or sections managed by the Provost)or by necessity, the University will engage in competitive bidding in a manner that creates a fair, open, and competitive environment for qualified vendors, and that also secures the best value possible. Methods of competitive bidding and other competitive procedures are stipulated at 28.5.2 and 28.5.3. Such procedures must be conducted by the Procurement Departments. Criterion for determining the successful bidders is the lowest price bid or the most economically advantageous bid in the competitive bidding, excluding cases under different stipulations in 28.5.2 and 28.5.3. Vendor Selection without Competition

The University may conduct vendor selection for a procurement amount of more than 5.0 million JPY without competitive bidding (tender) procedures subject to the approval of the Procurement Committee in the following cases:

  • Single source for goods, services or construction, therefore making irrelevant competitive procedures. This exception must be made by the Procurement Committee on the basis of a rational reason for selecting the vendor including specifications and condition of the concerned goods, services or construction. Requesting Units must prepare the justification for selecting the vendor including above features for their examination. The Committee decision is disclosed on the University’s website.
  • Procurement in Emergency Situations (28.2.11)
  • Others as stipulated in the 28.5.2 Contract Management Stipulations, Article 14

In cases when the procurement amount exceeds 1.5 million JPY and does not exceed 5.0 million JPY, when it is difficult to conduct best value comparable analysis by above reasons, the University may conclude a contract without competitive procedures with review by the Section Leader of Procurement Departments on the same justification for selecting the vendor. The Section Leader of Procurement Departments may ask the Rules and Compliance Section Leader for a consultation of confirmation if necessary.

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