Executive Order KBB 07-10
authorizes the governor to establish procedures for the procurement of small purchases
with the caveat that "procurement requirements shall not be artificially divided
so as to constitute a small purchase under this Section." In other words, a budget unit
cannot submit two or more requisitions to the same vendor or similar vendors in order to
avoid competitive bid requirements or to avoid the formal solicitation of competitive
sealed bids.
Executive Order KBB 07-10
establishes the following small purchase requirements:
- Purchases up to $1,000 - no quotes required
- Purchases over $1,000 to $5,000 - informal quote to at least 3 sources
- Purchases over $5,000 to $25,000 - written or fax bid to at least 5 sources
Artificial division of purchases can be outlined as follows:
- Budget unit submitting two or more requisitions of $1,000 each or less for the identical
commodity on the same day or within the same week.
| Example: | (1) desk @ $450 & (1) desk @ $600 received 2/21/2007 |
- Budget unit submitting two or more requisitions of $1,000 each or less to the same vendor
on the same day or within the same week.
| Example: | (1) desk @ $800 to Acme Office Company received 4/13/2007 |
| | (1) chair @ $250 to Acme Office Company received 4/15/2007 |
- Budget unit submitting two or more requisitions of $1,000 each or less to similar
vendors* for identical or similar commodities** on the same day or within the same week.
| Example: | (2) balances = $522 to Acme Scientific received 5/16/2007 |
| | (8) beakers = $312 to Wholesale Lab Supply received 5/16/2007 |
| | (9) thermometers = $288 to Best Buy Labs received 5/16/2007 |
* Similar vendors are suppliers selling products within the same industry
category, i.e., athletic, automotive, data processing, electrical, medical, office,
scientific, etc.
** Similar commodities are items which possess general characteristics within the same
industry category, i.e., athletic, automotive, data processing, electrical, medical, office,
scientific, etc.
- Budget unit head submitting separate requisitions for the same requester totaling $1,000
each or less which meet criteria 1, 2 or 3 above.
- Recurring pattern of requisitioning over the course of a fiscal year exceeding $5,000
for the same commodity from the same or similar vendors*.
The Purchasing Department will combine requisitions it interprets in possible violation of
the Executive Order and it will solicit the necessary bids unless the requisition is
accompanied by a suitable explanation (Artificial Division Exception
Form) for dividing a purchase. In a few cases there are daily or weekly
reoccurrences of small non-competitive purchases necessary to perform unanticipated
remedial maintenance. However, such exceptions are to be handled with a prior
Purchasing approved purchase requisition.
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