015-010 Procurement Limits Policies: State Agencies

015-010 Procurement Limits Policies: State Agencies Procedures for the Acquisition of Information Technology Equipment, Software, and Services by Procurement Type and Total Lifecycle Cost for State Agencies By law, all acquisitions of information technology must be approved by ITS. ITS has delegated this responsibility to agencies for certain types of purchases and lifecycle cost limits. Note that these thresholds are based upon total lifecycle costs and that there are situations in which actual monies paid is not the sole determinant of the requirement for a competitive procurement process. For purchases in which (1) the value of the goods and services exceeds bid limit, (2) there is a competitive market, and (3) there is potential for vendor profit from the project, contracts must be awarded based on an open and competitive process that allows the state to compare offerings to obtain the best product, service, and value, regardless of monies paid directly to the vendor by the state entity. The competitive process ensures the state’s requirements are well- defined, project contracts are negotiated to protect the state’s interest, and the vendor selected is the one with the most advantageous combination of cost and services. The table below defines the procedures and the required approvals for each category and project lifecycle cost range. For current Director Approval thresholds, see Section 018-030. Procurement Type/Lifecycle Cost $.01 - $5,000.00 $5,000.01 - up to but not over the dollar amount established in Section 31-7-13(c) In excess of the dollar amount established in Section 31-7-13(c), up to Director Approval Threshold Above Director Approval Threshold Regular Competitive Procurement • Delegated to Agency • May purchase without advertising or otherwise requesting competitive bids • Delegated to Agency • May purchase without advertisement for bids, provided at least two competitive written bids have been obtained • You must select the lowest quote • Requires ITS approval: CP-1 in MAGIC • Advertisement & receipt of competitive bids required by law • Requires ITS Board approval • Requires ITS approval: CP-1 in MAGIC • Advertisement & receipt of competitive bids required by law • Requires Business Case • Requires IT Security Risk Assessment Cooperative Purchasing Agreement No delegation. Regardless of lifecycle cost, ITS statute and policy require ITS review and approval of all cooperative purchases of technology. No delegation. Regardless of lifecycle cost, ITS statute and policy require ITS review and approval of all cooperative purchases of technology. No delegation. Regardless of lifecycle cost, ITS statute and policy require ITS review and approval of all cooperative purchases of technology. No delegation. Regardless of lifecycle cost, ITS statute and policy require ITS review and approval of all cooperative purchases of technology. Procurement Type/Lifecycle Cost $.01 - $5,000.00 $5,000.01 - up to but not over the dollar amount established in Section 31-7-13(c) In excess of the dollar amount established in Section 31-7-13(c), up to Director Approval Threshold Above Director Approval Threshold Telecommunications Systems and Services (See Acquisition of Telecommunications Services by State Agencies for more information) No delegation. ITS has conducted these procurements on behalf of the state and has contracts in place that must be used by agencies for telecommunications systems and services (voice and data). See ITS Telecommunications Contracts for State Agencies for details. No delegation. ITS has conducted these procurements on behalf of the state and has contracts in place that must be used by agencies for telecommunications systems and services (voice and data). See ITS Telecommunications Contracts for State Agencies for details. No delegation. ITS has conducted these procurements on behalf of the state and has contracts in place that must be used by agencies for telecommunications systems and services (voice and data). See ITS Telecommunications Contracts for State Agencies for details. No delegation. ITS has conducted these procurements on behalf of the state and has contracts in place that must be used by agencies for telecommunications systems and services (voice and data). See ITS Telecommunications Contracts for State Agencies for details. Note: ITS contracts have already received Board approval. Agency acquisitions of services from these contracts do not require additional Board action. Procurement Type/Lifecycle Cost $.01 - $5,000.00 $5,000.01 - up to but not over the dollar amount established in Section 31-7-13(c) In excess of the dollar amount established in Section 31-7-13(c), up to Director Approval Threshold Above Director Approval Threshold Sole Source Procurement • Delegated to Agency • May purchase without advertising or otherwise requesting competitive bids • Requires ITS approval: CP-1 in MAGIC • Submit Sole Source Certification Request with vendor and agency documentation to ITS 3-5 weeks before purchase (Note: Agency Head or Designee must sign the sole source request) • Requires ITS approval: CP-1 in MAGIC • Submit Sole Source Certification Request with vendor and agency documentation to ITS 3-5 weeks before purchase (Note: Agency Head or Designee must sign the sole source request) • Requires ITS Board approval • Requires ITS approval: CP-1 in MAGIC • Submit Sole Source Certification Request with vendor and agency documentation to ITS 2-4 months before purchase • Requires Business Case • Requires IT Security Risk Assessment (Note: Agency Head or Designee must sign the sole source request) Procurement Type/Lifecycle Cost $.01 - $5,000.00 $5,000.01 - up to but not over the dollar amount established in Section 31-7-13(c) In excess of the dollar amount established in Section 31-7-13(c), up to Director Approval Threshold Above Director Approval Threshold Exemption from ITS Not applicable: Already delegated to agency Not applicable: Already delegated to agency (Note: ITS cannot exempt a sole source procurement > $5,000) • Requires ITS approval: CP-1 in MAGIC • Advertisement & receipt of competitive bids required by law (conducted by the Agency after exemption is approved by ITS) • Submit Exemption Request to ITS 2-4 weeks prior to advertising the procurement • Requires ITS Board approval • Requires ITS approval: CP-1 in MAGIC • Advertisement & receipt of competitive bids required by law (conducted by the Agency after exemption is approved by ITS) • Submit Exemption Request to ITS 4-6 weeks prior to advertising the procurement • Requires Business Case • Requires IT Security Risk Assessment Express Products Lists (EPLs) • Delegated to Agency • Access EPL on ITS website • Follow instructions on specific EPL • Delegated to Agency • Access EPL on ITS website • Follow instructions on specific EPL • Delegated to Agency up to EPL limit • Access EPL on ITS website • Follow instructions on specific EPL • See EPL Planned Purchase Procurement Type/Lifecycle Cost $.01 - $5,000.00 $5,000.01 - up to but not over the dollar amount established in Section 31-7-13(c) In excess of the dollar amount established in Section 31-7-13(c), up to Director Approval Threshold Above Director Approval Threshold EPL Planned Purchase Not applicable Not applicable Purchase above EPL limit: • Requires approval letter from ITS Executive Director and CP-1 • Requires that project be in current IT Plan submitted by agency to ITS & equipment /software needed must appear on a current EPL • ITS planner contacts agency concerning Planned Purchases during review of agency's plan. Call your planner or submit an EPL Planned Purchase Request to ITS to initiate a Planned Purchase prior to being contacted. Requires ITS Board approval • Requires approval letter from ITS Executive Director and CP-1 • Requires that project be in current IT Plan submitted by agency to ITS & equipment /software needed must appear on a current EPL • ITS planner contacts agency concerning Planned Purchases during review of agency's plan. Call your planner or submit an EPL Planned Purchase Request to initiate a Planned Purchase prior to being contacted (at least 2 weeks prior to ITS Board Meeting). • Requires Business Case Procurement Type/Lifecycle Cost $.01 - $5,000.00 $5,000.01 - up to but not over the dollar amount established in Section 31-7-13(c) In excess of the dollar amount established in Section 31-7-13(c), up to Director Approval Threshold Above Director Approval Threshold Emergency Procurement (where delay is detrimental to the interests of the State) Not applicable • Requires ITS approval: CP-1 in MAGIC • Submit Emergency Purchase Request Form with vendor and agency documentation to ITS before purchase • (Note: Agency Head or Designee, if approved by ITS, must sign the Emergency Purchase Request Form) • If request approved, submit post-purchase documentation following the purchase • Requires ITS approval: CP-1 in MAGIC • Submit Emergency Purchase Request Form with vendor and agency documentation to ITS before purchase • (Note: Agency Head or Designee, if approved by ITS, must sign the Emergency Purchase Request Form) • If request approved, submit post-purchase documentation following the purchase • Requires ITS Board approval • Requires ITS approval: CP-1 in MAGIC • Submit Emergency Purchase Request Form with vendor and agency documentation to ITS before purchase • (Note: Agency Head or Designee, if approved by ITS, must sign the Emergency Purchase Request Form) • Requires Business Case • Requires IT Security Risk Assessment • If request approved, submit post-purchase documentation following the purchase Procurement Type/Lifecycle Cost $.01 - $5,000.00 $5,000.01 - up to but not over the dollar amount established in Section 31-7-13(c) In excess of the dollar amount established in Section 31-7-13(c), up to Director Approval Threshold Above Director Approval Threshold Emergency Procurement (where delay threatens health or safety of any person or preservation or protection of property) Not applicable • Submit to ITS the Emergency Purchase Form signed by the Agency Head or Designee, if approved by ITS, along with the post-purchase documentation as soon as practicable after the emergency purchase • Submit to ITS the Emergency Purchase Form signed by the Agency Head or Designee, if approved by ITS, along with the post-purchase documentation as soon as practicable after the emergency purchase • ITS loads a CP-1 to MAGIC so the vendor payment can be processed • Submit to ITS the Emergency Purchase Form signed by the Agency Head or Designee, if approved by ITS, along with the post-purchase documentation as soon as practicable after the emergency purchase • ITS loads a CP-1 to MAGIC so the vendor payment can be processed • ITS Board informed of emergency Procurement Type/Lifecycle Cost $.01 - $5,000.00 $5,000.01 - up to but not over the dollar amount established in Section 31-7-13(c) In excess of the dollar amount established in Section 31-7-13(c), up to Director Approval Threshold Above Director Approval Threshold E-Government Procurement NOTE: Due to the different vendor business models for E-Government services and products, the procurement approach is not governed by the total expenditure but by the true market value, as determined by the complexity and size of the project. See Sections 001-020 and 001-025 of this handbook for additional information on Electronic Government procurements. • Cost category must be based on true market value, not funds paid to vendor by agency • Requires DFA approval for any payment functionality • Follow process outlined in 001- 025 Approvals for Internet-based Applications and Services • Cost category must be based on true market value, not funds paid to vendor by agency • Requires DFA approval for any payment functionality • Follow process outlined in 001- 025 Approvals for Internet-based Applications and Services • Cost category must be based on true market value, not funds paid to vendor by agency • Requires DFA approval for any payment functionality • Follow process outlined in 001- 025 Approvals for Internet-based Applications and Services • Cost category must be based on true market value, not funds paid to vendor by agency • Requires DFA approval for any payment functionality • Requires ITS Board approval if true market value exceeds Director Approval Threshold • Follow process outlined in 001- 025 Approvals for Internet-based Applications and Services • Requires Business Case • Requires IT Security Risk Assessment