Policy 5207 – Purchase Requisitions are not to be Artificially Divided
Revision Date: 8/27/2010
Responsible Office: Purchasing Officer
Reference: LRS 39:1551; BJ 2010-16; LRS 38:2181-2320
In accordance with Executive Order BJ 2010-16, any procurement not exceeding the amount established by executive order of the Governor may be made in accordance with small purchase procedures prescribed by such executive order, except that procurement requirements shall not be artificially divided so as to constitute a small purchase under this section.
In other words, a department cannot submit two or more requisitions to the same vendor or similar vendors in order to avoid the formal solicitation of competitive sealed bids.
Artificial division of purchases can be outlined as follows:
- Department submitting two or more requisitions to the same vendor, similar vendors, or for like or similar commodities in order to avoid bid requirements or to avoid the formal solicitation of sealed bid.
- Multiple requisitions received in the Purchasing Department on the same day, or within the same week or month to the same vendor, similar vendors or for like or similar commodities.
- Multiple requisitions staggered to arrive in the Purchasing Department with the same requisition date and/or sequential requisition numbers to the same vendor, similar vendors or for like or similar commodities.
- Recurring pattern of requisitioning over the course of a fiscal year for like commodities from the same vendor or similar vendors.
Individual departments will be held accountable to the Legislative Auditors for violations of these regulations.
The Purchasing Department will attempt to enforce these regulations by combining requisitions it interprets in possible violation of the Executive Order. If requisitions are combined by the Purchasing Department, the necessary bids will be solicited unquestioned, unless the requisition is accompanied by a suitable explanation for dividing a purchase.
In a few cases, there are daily or weekly recurrences of small noncompetitive purchases necessary to perform unanticipated remedial maintenance.