What is a Small Procurement?
A Small Procurement is a procurement of products or services valued at $10,000 or less. Small Procurements do not require the use of the competitive process. An agency may award a contract for a Small Procurement in any manner deemed practical or convenient.
When to Use Small Procurements
Agencies must make their Buy Decision in the priority order specified in administrative rule. Before selecting an open market method, such as Small Procurement, an agency must first determine that the procurement need cannot be met through a higher priority.
Before selecting its procurement type, an agency must consider the total cost over the life of the contract. When the contract award will not exceed $10,000, the agency may use a Small Procurement process. An agency should not use the Small Procurement option for regular or repeated purchases of the same items, and an agency must not fragment or otherwise divide awards for the purpose of keeping the value of the procurement below $10,000. If there is a reasonable chance that an agency may amend the contract to more than $12,500 over the life of the contract, then it should consider other procurement methods.
How to Process Small Procurements
The Small Procurement method allows an agency to directly award a contract. A Small Procurement has few constraints and therefore typically reduces administrative costs. Because of its relatively low monetary value and general low risk, a Small Procurement does not require use of any contract form, template, or solicitation template.