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.
|Eliminate Buy Decision procurement methods
||1. Determine if the needed product or service can be fulfilled using mandatory methods outlined in the Buy Decision.|
- If yes, use the appropriate mandatory method of procurement.
- If no, determine contract value to assess appropriate open market method.
|Determine contract value
||1. Is the total life cycle cost, including amendments, within the Small Procurement threshold?|
- If yes, conduct Small Procurement.
- If no, assess alternative methods.
Note: to determine the total life cycle cost of the procurement an agency should consider:
- Shipping and freight.
- Installation costs.
- Maintenance costs.
Additionally, if there is a reasonable chance that the contract may be amended, the cumulative amendments may not increase the value of the contract to more than $12,500 over the life of the contract.
||1. Request quotes, as applicable, from suppliers.|
2. Select awarded supplier.
- While statute doesn't require competition for Small Procurements, agencies are encouraged to provide for as much competition as is practicable.
- Any quotes received from suppliers should be documented and included in the procurement file.
- While price is often the most common factor used for award; best value, which may include delivery schedule or other factors, can be used to justify an award.
- The agency should document its choice of supplier and include the justification for award in the procurement file.
||1. Award and execute contract according to agency-designated authority.|
Note: in lieu of executing a contract, an agency may be able to use a purchase card (SPOTS card) as its method of payment for Small Procurements. Certain limitations exist on the use of SPOTS cards for small purchases. For details, an agency should reference the State Purchasing Card policy prior to use.
|Update procurement file
||File applicable documentation of the purchase in the procurement file.|