Policy number: 4.8

Policy section: Business & Finance

Revised Date: January 2, 2019

1.  Definitions

Definitions of capitalized terms are set forth in Appendix A.

2.  Policy Statement

It is the policy of the University that University-wide pricing arrangements with Preferred Vendors and Exclusive Vendors are negotiated with vendors to provide end users with competitive, fair, and open contracts that comply with applicable University policies, laws, and regulations.

3.  Purpose

The University has negotiated agreements with Preferred Vendors and Exclusive Vendors in order to:

1. best meet the needs of the University community;
2. ensure the quality of products and services received; and
3. take advantage of the University’s buying power to achieve favorable pricing.

4.  Applicability

Each University Division and all University Personnel purchasing goods or services for University business purposes must comply with this policy.

5.  Vendor List

The University maintains a list of Preferred Vendors and Exclusive Vendors on the Purchasing Department’s website. 

6.  Scope of the Policy

1. When an Exclusive Vendor is identified, each University Division and all University Personnel purchasing goods or services for University business purposes are required to purchase from the Exclusive Vendor when buying a product or services offered by the Exclusive Vendor.
2. When Preferred Vendors are identified, each University Division and all University Personnel purchasing goods or services for University business purposes are encouraged to purchase the given product or services from the Preferred Vendors.
3. Exceptions to the use of a Preferred Vendor or an Exclusive Vendor must be obtained in advance from the Purchasing Department.
4. If a lower price or better quality product or service is found with a vendor that is not a Preferred Vendor or an Exclusive Vendor, the information should be shared with the Purchasing Department in order to allow the University to continually improve its relationship with vendors.

7.  Penalties for Non-Compliance

Violations of this policy may result in the employee being personally financially responsible for the purchase and/or subject to disciplinary action up to and including termination or legal action.

8.  Questions

Questions about this policy may be directed to the Vice President for Business and Finance.

Appendix A: Definitions

“Preferred Vendor” means a vendor that has signed a written contract with the University agreeing to pricing concessions based on anticipated volume levels, with the understanding that SMU end users are expected to request pricing from the Preferred Vendor before contacting other vendors.

“Exclusive Vendor” means a vendor that has signed a written contract with the University to provide specific pricing discounts for the University based on anticipated volume levels, with the understanding that University end users are required to purchase from the Exclusive Vendor unless a specific exception has been approved by the Purchasing Department.

“University Division” means each School, College, division, office, department or program.

“University Personnel” means faculty, staff, students, volunteers and contractors.

Revised: January 2, 2019

Adopted: June 29, 2015