Small Purchase Limits

Section 1 Section 1.2020  Small Purchase Limits a)         Application 1)         Individual procurements of $100,000 or less for supplies or services may be made without notice or competition. These small purchase maximums shall be subject to the annual cost of living increases set forth in subsection (a)(3). 2)         Procurements for construction and construction related services of $100,000 or less, or as increased to reflect increases in the consumer price index as determined by the CPO-GS. 3) Each April, the CPO-GS will determine the CPI adjustment to the small purchase thresholds applicable for the next fiscal year. If the CPI is greater than zero, the thresholds identified in Section 20-20(a) of the Code will be reduced in an amount that, with the CPI increase, would result in the small purchase thresholds remaining as stated in subsection (a)(1). By July 1, 2019 and every five years thereafter, the CPO-GS will review the small purchase thresholds to determine if a modification to the thresholds is needed.  If a modification is needed, the CPO-GS will consult with the PPB. b)         Determination of Small Purchase Status 1)         In determining whether a contract is under the small purchase limit, the stated price or value, as applicable, of the supplies or services plus any optional supplies and services, determined in good faith, shall be utilized.  When the value is calculated month-to-month or in a similar fashion, the amount shall be calculated for a 12 month period. 2)         If only a unit price or hourly rate is known, the contract shall be considered small and shall have a not to exceed limit applicable to the type of procurement (see subsection (a)). 3)         If, after signing the contract, the actual cost of completing the contract is determined to exceed the small purchase amount, and the SPO determines that a supplemental procurement is not economically feasible or practicable because of the immediacy of the State agency's needs or other circumstances, the SPO must follow the procedures for sole source or emergency procurement, whichever is applicable, to complete the contract. c)         The CPO-GS may establish policies and procedures to manage the use of the small purchase method of source selection.  The SPO may establish additional policies and procedures applicable to State agencies under the SPO's jurisdiction. d)         If there is a repetitive need for small procurements of the same type, the State agency shall notify the SPO who shall consider whether issuing a competitive sealed bid or proposal for procurement of those needs is in the best interests of the State.