Policy 5203 – Basic Purchasing Procedures and Small Purchase Requirements
Revision Date: 1/23/2017
Responsible Office: Purchasing Officer
Reference: JBE 2016-39
PURCHASES UP TO $5,000
A. 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
B. 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, a small entrepreneurship, or a veteran or service-connected disabled veteran-owned 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.
- When the price is determined to be reasonable, the requirement to solicit three (3) quotations may be waived when making purchases from a small and emerging business, a small entrepreneurship, or a veteran or service connected disabled veteran-owned small entrepreneurship that is currently certified by the Department of Economic Development. 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.
- Soliciting three (3) quotations may be waived when purchasing from a business registered with the Secretary of State as domiciled in Louisiana. 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
These solicitations must be on the Purchasing Department’s bid 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.
C. Price quotations shall be solicited from five (5) or more bona fide, qualified vendors for purchases exceeding fifteen thousand ($15,000) but not exceeding twenty-five thousand dollars ($25,000).
- Quotations may be made by facsimile or written means and shall be awarded on the basis of the lowest responsive price quotation received. Whenever possible, at least two (2) of the bona fide, qualified vendors shall be certified small and emerging businesses, small entrepreneurships, or a veteran or service-connected disabled veteran-owned small entrepreneurship. Agency files shall document and list all solicited vendors and each vendor’s response, summarize quotations received, indicate the awarded quotation, and state the reason why any lower quotation was rejected.
- The requirement to solicit certified small and emerging businesses, small entrepreneurships, or veteran or service connected disabled veteran-owned small entrepreneurships is waived for those agencies that post on LaPAC, Louisiana’s internet based system for posting vendor opportunities and award information.
- A minimum of three (3) working days shall be allowed for receipt of quotations.
- All written or facsimile solicitations shall include the closing date, time, and all pertinent competitive specifications, including quantities, units of measure, packaging, delivery requirements, ship-to location, terms and conditions, and other information sufficient for a supplier to make an acceptable quotation. Precautionary measures shall be taken to safeguard the confidentiality of vendor responses prior to the closing time for receipt of quotations. No quotation shall be evaluated using criteria not disclosed in the solicitation.