Policy 5203 - Basic Purchasing Procedures and Small Purchase Requirements
Revision Date: 8/27/2010
Responsible Office: Purchasing Officer
Reference: BJ 2010-16
PURCHASES UP TO $5,000
No competitive bidding or purchase order is required. Even though competitive bidding is not required, each department is responsible for obtaining a purchase price that is competitive and reasonable. This purchasing authority is delegated to each budget unit approved by Purchasing. Purchases under $5,000 must be kept to a minimum and reserved for those unforeseen needs. Advanced planning to consolidate quantities and secure bids will eliminate the overuse of this privilege.
Purchases of $5,000 or less made on the State of Louisiana LaCarte Purchasing Card are also exempt from the competitive bidding requirements.
The splitting of purchases in order to circumvent the bid law and to stay within the bidding thresholds is not permitted.
All delegated authority is subject to revocation by the purchasing department for over-use or abuse.
PURCHASES OVER $5,000, but less than $15,000
No competitive process is required for purchases not exceeding five thousand dollars ($5,000) per single purchase transaction.
Price quotations shall be solicited from three (3) or more bona fide, qualified vendors for purchases exceeding five thousand dollars ($5,000) but not exceeding fifteen thousand dollars ($15,000).
Quotations may be made by telephone, facsimile, or other means and shall be awarded on the basis of the lowest responsive quotation. Whenever possible, at least one (1) of the bona fide, qualified vendors shall be a certified small and emerging business or a small entrepreneurship. Agency files shall document and list all solicited vendors and each vendor's contact person, summarize quotations received, indicate the successful vendor and state the reason why any lower quotation was rejected. Agency files should also contain written confirmation of the quotation from the successful vendor; or
Soliciting three quotations may be waived when making purchases from a Small Entrepreneurship or Small and Emerging Business that is currently certified by the Louisiana Department of Economic Development, when the price is determined to be reasonable. Reasonable is a best value determination based on price, delivery, service, and/or any other related factors. This determination is to be maintained in the file, or;
Soliciting three quotations may be waived when purchasing in-state. A business analysis must determine that in-state prices are equal or better than two other current price comparisons. Comparisons may include, but are not limited to, state contract prices, General Services Administration (GSA) prices, or similar resources. Comparison documents are to be maintained in the file.
Departments are not permitted to split or artificially divide purchases to circumvent these bid requirements.
PURCHASES OVER $15,000, but less than $25,000
The Purchasing Department will send facsimile or written solicitations to at least five (5) bona fide, qualified bidders, two (2) of which must be Certified Small and Emerging Businesses (whenever possible). Facsimile solicitations will allow for bids to be accepted for a minimum period of five (5) calendar days. Written solicitations will allow for bids to be accepted for a minimum period of ten (10) calendar days.
Solicitations are to be on the Purchasing Department’s forms containing complete, competitive specifications, the quantity required, terms and conditions, delivery point and other information sufficient for a supplier to make an acceptable bid.
The Purchasing Department (after receiving award recommendations from issuing department) will review the quotations and place the order with the lowest responsive bidder.