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Intermediate Procurement

What is an Intermediate Procurement?

An Intermediate Procurement is a competitive solicitation for products or services with a contract value exceeding $25,000 but not more than $250,000. For this type of procurement, an agency must seek at least three informally solicited competitive price quotes or competitive proposals from prospective contractors and must post a notice of competitive solicitation through OregonBuys.

When to Use Intermediate Procurement

Agencies must make their Buy Decision in the priority order specified in administrative rule. Before selecting an open market method, such as Intermediate Procurement, an agency must first determine that the procurement need cannot be met through a higher priority.

An agency must consider the total cost over the life of the contract in determining the procurement type. An Intermediate Procurement process may be used when the contract award is greater than $25,000 but does not exceed $250,000. In certain instances, an agency may exceed this threshold where the bids or proposals to a solicitation minimally exceed the Intermediate Procurement threshold despite an initial good faith estimate that the procurement would be equal to or less than $250,000. In these instances, the agency must document the basis for the original estimate under $250,000 and the process used. In addition, if the value of the contract exceeds $250,000, the agency must submit the final negotiated contract to the Attorney General for the required legal sufficiency review.

An agency must not fragment or otherwise divide awards for the purpose of keeping the value of the procurement below $250,000. If there is a reasonable chance that an agency may amend the contract so that it exceeds $250,000, then it should consider other procurement methods.

How to Process Intermediate Procurements

An agency can select among the following methods to solicit three quotes or proposals for an Intermediate Procurement:
  • Request for Quote – An agency can use this method to request and document informal quotes. Quotes can be solicited by email, phone or fax.
  • Invitation to Bid – An agency can use this method to request responses to a more detailed specification. Bids can be solicited through this method by email, phone or fax.
  • Intermediate Request for Proposals – An agency can request informal proposals using this method to provide a detailed scope of work. Responses to an Intermediate Request for Proposals can be received by email, in person or through the mail.
  Resource: DAS Procurement Services has provided templates for soliciting informal quotes or proposals.

The Intermediate Procurement process is characterized by a shorter posting period, with consideration for a minimum seven-day posting for procurements exceeding $100,000. This period, however, may be shortened if the agency determines that it is in the public’s interest and it will not substantially affect competition. A protest period, if any, is at the discretion of the agency DPO.

Best value may serve as the basis for contract award of an Intermediate Procurement. In other words, an agency may take price into account, as well as other considerations including experience, expertise, product functionality, suitability, and contractor responsibility.

Intermediate Procurement offers an agency some flexibility in the procurement process such as incorporating provisions for multiple interview rounds into the solicitation. Procurement activities, including pre-proposal conferences, site visits, product demonstrations and negotiations are permitted as long as they are disclosed in the solicitation.

Note: If the cumulative value of the original contract price and all amendments exceeds either $250,000 or 125 percent of the original contract price (whichever is greater), an agency must obtain prior approval according to the Special Procurement process.