Paying Fair and ReasonablePrices
University of Maryland employees authorized to spend University funds have a fiduciary responsibility to ensure that those funds are spent wisely. Our cardholders and their reviewers assume this responsibility by ensuring that prices paid for goods and services are fair and reasonable. This reminder note is prompted by recent media accounts that some vendors charged exorbitant prices to State agencies for maintenance and housekeeping supplies. One vendor gave the State employees kickbacks, in the form of clothing, electronics, and gift cards, in exchange for ordering their overly priced products. Some of the employees who accepted kickbacks have since been fired. Others are now facing criminal charges.

Since the media accounts are fresh in our minds, this is a good opportunity for us to review practices that will ensure we are making good purchasing decisions:

  • Remember that you are spending University funds and should always act as a good custodian of these funds. You know best the items you need to do your job – always look for the best value.
  • For all purchasing card purchases, we need an itemized receipt, showing the items purchased and their unit costs.
  • Never accept gifts or gratuities from vendors.
  • Do not allow vendors to intimidate you into buying something you don’t need or could buy somewhere else at a lesser cost.
  • Remember to check prices from other vendors for large orders or large single purchases. Just because a particular vendor had the best deal last time doesn’t mean they will now.
  • “Stringing” or splitting purchases to avoid the single transaction limit is prohibited.
  • State law requires campus to support the State of Maryland socioeconomic programs by using State Use Industries, certified sheltered workshops, certified minority vendors and small business reserve programs as opportunities exist. New master contracts have been established by the University. A list of these contracts as well as a list of certified minority preference vendors and certified small businesses is available at the Procurement & Supply website
  • Reviewers are responsible for ensuring that prices paid are reasonable.