Bidding and Contracting Process Overview

The Strategic Sourcing team, within the Supply Chain department, facilitates all bidding and contracting of materials and services. These processes are performed within the UP SourceHub system.


The Strategic Sourcing purchaser will work with the requester of the material or service to identify all requirements and specifications to be included in the bid. When a bid is fully developed, it will be issued to the bidder list for response by a certain deadline. While the bid is open, bidders have the option to submit questions and clarification items regarding the bid through the Q&A process. The purchaser and any internal collaborators will receive email notification of any questions or responses that have been submitted through the Q&A tool.  Click here to learn more about the bid Q&A process.

Once a bid closes, the purchaser will evaluate all bidder responses and conduct any further bidding/negation activities as applicable. Once all bidding/negotiating activities conclude, the purchaser will prepare an award recommendation to be presented for approval. Once the award recommendation is approved, the award is then finalized in the system and the formal contracting process can begin.


The Strategic Sourcing purchaser will coordinate the contracting process with each Supplier. The contracting process is initiated by UP sending the Supplier a proposed contract. The Supplier will receive the proposed contract and can either accept the document as is or redline the document with requested changes. If the Supplier accepts the contract, they will apply their eSignature and revert to UP. If the Supplier submits redlined changes, those changes are sent back to the purchaser for review. The purchaser will collaborate with the necessary parties (Law, Insurance, Requester, etc.) to accept or modify the Supplier’s recommended changes.

Once UP and the Supplier have mutually agreed on all contract terms, the Supplier will confirm acceptance by applying their eSignature and revert to UP. UP will also apply eSignature at which point the contract is fully executed and available for use. The contract requester will be notified once the contract is executed.

If the contract request is for a one-time service project/new service contract, a PO is issued directly to the Supplier for the value of the contract following contract execution.