Vendor Selection Policy

To establish fair and transparent practices for selecting and managing vendors, ensuring high standards of quality, reliability, and cost-effectiveness.

This policy applies to all contractors and vendors engaged by Earlham College, including the School of Religion.

1. Contractor: An individual or business engaged by the organization to perform specific tasks or services under a defined agreement, typically for a limited duration and governed by the terms of their service agreement. Contractors operate independently and are not considered employees of the organization. Examples include freelancers, consultants, or subcontractors.
2. Procurement: The process of sourcing, purchasing, and receiving goods or services.
3. Request for Proposal (RFP): A formal document issued by Earlham, requesting vendors submit proposals for the completion of a project or provision of a service.
4. Vendor: A third-party entity—individual, company, or organization—that provides goods, services, intellectual property, or operational support to the organization. They may be engaged for short-term or long-term needs and can range from critical infrastructure providers to routine service suppliers.

Earlham does not discriminate on the basis of legally protected characteristics when awarding contracts. Earlham selects vendors on the basis of cost for service, timeliness, quality, and experience in higher education or similar environments. Local vendors are preferred when other factors are equal. Additionally, Earlham evaluates potential vendors against the following requirements:

1. General Principles: Vendors must demonstrate a strong industry reputation and relevant experience. Earlham avoids entering into contracts with companies that have been found responsible for serious or repeated instances of discrimination, pollution, labor or human rights violations, health or safety violations, or unlawful political activity.
2. Insurance Requirement: All contractors, vendors or service providers coming on to Earlham premises to do work or provide services are required to have insurance. Insurance is necessary to cover any claims or losses for which the contractor/vendor may be responsible.
3. Competitive pricing: Earlham will prioritize contracts with vendors who offer competitive pricing and who are able to provide documentation of demonstrating reasonableness of price. A “reasonable” price means a “fair market price” based on normal competitive conditions.
4. Information Security Compliance: All contractors, vendors and service providers must be in full compliance with data security requirements as outlined in this policy.

1. A preferred vendor is an approved vendor who has been further qualified through Campus Services to receive a designation that directs employees to consider this vendor for particular goods and services, to the maximum extent feasible, compared to all other approved vendors. This status directs attention to a specific vendor in return for favorable terms, conditions, responsiveness, quality, and/or pricing deemed to be of such value that further quotes and/or competitive bidding is not necessary within reasonable, appropriate standards as described in the procedures.
2. Campus Services shall maintain a list of preferred vendors, and will update this list annually by September 15. To compile such a list, Campus Services will consult with and seek input from responsible administrators in Accounting, Information Technology Services, and other departments on campus.
3. Earlham reserves the right to revoke a vendor’s “preferred status” at any time for any reason.

1. Insurance: Policy specifications include Bodily Injury and Property Damage Liability, Independent Contractors Liability, Contractual Liability, Product Liability and Completed Operations Liability in an amount not less than $1,000,000 combined single limit, per occurrence, and $1,000,000 aggregate.If a product or service, in the opinion of Earlham College, represents an unusual or exceptional risk, additional insurance for that product or service may be required.
2. Data Security: Earlham contractors, vendors or service providers must adhere to Earlham’s Information Security Policy. Additionally, contractors, vendors or service providers must be in full compliance with the following data security requirements:
   • Health Insurance Portability and Accountability Act (HIPAA) – Contracts with third parties that handle protected health information (PHI) should adhere to the same general guidelines as other contractual relationships in which the University is involved.
   • Family Educational Rights and Privacy Act (FERPA) – Contracts with third parties that handle education records, including PII data (FERPA), shall adhere to the same general guidelines as other contractual relationships in which the University is involved.
   • General Data Protection Regulation (GDPR) – Contracts with third parties that handle personal data (PD) from a European Union (EU) citizen are involved; the third party will likely have to adhere to GDPR, including honoring the rights of data subjects, including where data can or cannot be stored.
   • Vendors handling “Internal” and/or “Restricted” data (as defined by the Data Classification Policy) must document appropriate safeguards. ITS will review these safeguards, and any exceptions must be approved by the CIO.
3. Disclosures: All vendors are to disclose:
   • If any of their partners, owners, shareholders, principles are related to officers or Trustees of Earlham College (including the School of Religion;
   • If any of the above have done work for Earlham College under any vendor name other than the current vendor name;
   • If any of the above are currently under contract with Earlham College under any other vendor name.
4. Certain departments, such as Information Technology Services and Campus Services, may establish further contractual obligations based on the nature of the services provided.
5. All procurements must adhere to the Purchasing and Contract Authority and Responsibility policy.
6. Grant-funded purchases must also comply with the Business Expense Policy (see Part XIV: Charging Costs to Sponsored Projects).
7. While providing services on Earlham’s campus, all vendors are subject to Earlham policies on discrimination and harassment, including the Nondiscrimination and Anti-Harassment Policy and the policy on Sex-Discrimination and Sex-Based Harassment.

Vendors engaged with Earlham College are expected to adhere to the following principles:

• Engage in legal and contractually sound business practices.
• Promote fair and respectful interactions with Earlham College, its employees, and other third parties.
• Ensure Earlham College is obtaining maximum value for each dollar spent.
• Display a commitment to the environment and to society.
• Be committed to workplace and product safety.
• Obtain consent from the originator of proprietary ideas and designs before using them.
• Reject all forms of discrimination and harassment.
• Display professionalism, fairness, and reliability in all business relations.

Earlham College employees must avoid any real or perceived conflicts of interest in vendor selection and contract administration. Refer to the Employee Handbook for detailed policies on conflicts of interest.

Earlham College generally does not enter into purchase agreements with students, faculty, staff, or members of their immediate families. In an instance in which a contract with or purchase from an individual described is in the best interest of the college, documentation of the reasons for the decision must be sent to the CFO, COO or Controller for approval before a contract is signed or a purchase is made.

1. Earlham College requires the follow levels of documentation based on purchase amounts:
   • For purchases at $20,000-$49,999:  Multiple price quotes must be obtained to ensure fair pricing and value.
   • For purchases exceeding $50,000: Multiple written quotes must be documented, though a formal request for proposal (RFP) process is not required. These written quotes do not need to be formal bids but must clearly detail the pricing.
   • For purchases using federal funds (whether directly or passed through an entity like the State of Indiana) the following thresholds apply.
     • Purchases less than $10,000 — Goods and services may be purchased without requesting competitive price or cost quotes. The purchaser should consider if the price is reasonable based on research, experience, purchase history, or other information.
     •  Purchases from $10,000 to $249,999 —Quotes from at least two sources must be obtained. These quotes can be obtained orally, in writing, via a vendor price list, or online search. Selection is not required to be based on price, other considerations (such as quality) may justify the selection of the vendor with a higher price. Rationale for selection is to be documented by the purchaser.
     • Purchases $250,000 or greater — Goods and services must be selected based upon written requests for proposals (RFP). The RFP should include a description of the technical requirements for the material, product, or service to be provided and identifies all requirements which vendors must fulfill. The RFP may include a set price or request price bids as a part of the proposal process. Competitive proposals from a minimum of two vendors is required. Alternatively, a sealed bid process may be used as detailed in 2 CFR 320. For recurring items, the college recommends completing an RFP process every five years or less.
2. Exceptions to these requirements include:
   • Renewal of contracts and/or services previously authorized under the Purchasing and Contract Authority and Responsibility and the Financial Policies;
   • Items or services purchased from an appropriate, preferred vendor;
   • Other exceptions identified by the Chief Operating Officer, Chief Financial Officer, or Controller. These may include:
     • When only one vendor can satisfy the product or service requirements
     • Where there is an immediate need for action that does not allow for delay
     • For grants, when there is approval from the Awarding Agency – the awarding agency expressly authorizes a noncompetitive procurement in response to a written request from Earlham.
3. Procurement for construction projects is managed as part of the overall project and may follow separate procedures.
4. All professional service contracts must be reviewed and approved according to the Purchasing and Contract Authority and Responsibility policy. Preference is given to existing vendor relationships that are working well.

Accounting and Campus Services oversee general vendor selection, vendor performance reviews, and annual review of this policy.

Revisions to this policy are approved by the Chief Financial Officer.