Scope of Purchasing Authority - 100.2

Acquisition Methods and Dollar Thresholds

Purchasing authority dollar thresholds are tied to acquisition methods.  Some acquisition methods are complex and considered high risk while others are not; this is a factor for assigning varied dollar thresholds.

The Purchasing Authority Unit (PAU) determines the appropriate dollar thresholds for state departments based on factors detailed in this chapter of the SCM.  State departments are each issued a Purchasing Authority Approval Letter (PAAL) that explains the specific authority granted dollar thresholds vary by state department.

Most dollar thresholds identified throughout the SCM exclude sales and use tax, finance charges, postage, and handling charges.  Shipping charges are also excluded from the dollar threshold limits unless the shipping charge is included in the evaluation such as FOB Origin, Freight Collect, or FOB Destination.  The exception to this policy are dollar thresholds established by law or by another state’s cooperative agreement and where fees and charges are not specifically exempt from the dollar threshold.

The maximum dollar threshold for the Small Business/Disabled Veterans Business Enterprise (SB/DVBE) Option acquisition method includes all taxes, fees and charges.

Creating Leveraged Procurement Agreements (LPA)

Pursuant to Public Contract Code (PCC), Sections 10290-10290.3, 10298-10299; 12101.5, state departments are not authorized to create LPAs when conducting acquisitions under purchasing authority granted by the DGS/PD PAU.

“Competitive” Purchasing Authority

“Competitive” purchasing authority is generally granted at lower dollar levels than Leveraged Procurement Agreement (LPA) purchasing authority due to the complexity and risk associated with these acquisitions.

NON-IT GOODS AND SERVICES

Competitive Levels

Characteristics

Minimum

Between

$100.00 and $4,999.99

Lowest dollar threshold of authority available. Low risk. Advertising in the California State Contracts Register (CSCR) is not required. No formal protests are available to suppliers. The Fair and Reasonable procurement method is commonly used at this level. Phone quotes are acceptable. Appropriate for state departments with a small procurement office and that conduct very few, low dollar value procurements.

Standard 1

Between

$4,999.99 and $50,000.00

Informal level. Phone quotes are acceptable in certain circumstances. Written solicitations are advisable but not required in certain circumstances. Advertising in the CSCR is not required.

Standard 2

Between

$50,000.01 and $100,000

Informal level. Written solicitation is required. Advertising in the CSCR is required. Departments must be granted Standard 1 level of authority and have experience conducting procurement activities at this level prior to applying for authority to conduct at Standard 2 level.

Formal

Above $100,000.00

Formal level. Written solicitation (Invitation for Bid) is required. Advertising in the CSCR is required. Protest provisions are required. Award to Other Than Low Bidder procedures apply. Departments must be granted Standard 2 level of authority and have experience conducting procurement activities at this level prior to applying for authority to conduct formal procurement activities.

IT GOODS AND SERVICES

Competitive Purchasing Authority Levels

Characteristics

Minimum

Between

$0.00 and $4,999.99

Lowest dollar threshold of authority available. Low risk. Advertising in the California State Contracts Register (CSCR) is not required. No formal protests are available to suppliers. The Fair and Reasonable procurement method is commonly used at this level. Phone quotes are acceptable. Appropriate for state departments with a small procurement office and that conduct very few, low dollar value procurements.

Standard 1

Between

$5,000 and $500,000

Informal level. Phone quotes are acceptable for IT goods transactions valued less than $50,000. Written solicitations are required for: Any IT service transaction that exceeds $4,999.99. Any IT goods transaction that exceed $50,000.00. Any IT goods and services transaction where the service portion exceeds $4,999.99. Advertising in the CSCR is required for IT goods in excess of $50,000 and for IT services in excess of $4,999.99. Departments must be granted this level of authority and have experience conducting procurement activities at this level prior to applying for authority to conduct at Standard 2 level.

Standard 2

Between

$500,000.01 and $1,000,000

Informal level. Phone quotes are not permissible. Written solicitation is required. Advertising in the CSCR is required. Departments must be granted Standard 1 level of authority and have experience conducting procurement activities at this level prior to applying for authority to conduct at Standard 2 level.

Formal

Above $1,000,000

Formal level. Dollar threshold for formal solicitations is granted on a case-by-case basis. Written solicitation (Request for Proposal) is required. Advertising in the CSCR is required. Protest provisions are required. Award to Other Than Low Bidder procedures apply. State departments must be granted Standard 2 level of authority and have experience conducting procurement activities at this level prior to applying for authority to conduct at Formal level.

Exceeding Purchasing Authority Thresholds

State departments may not execute a Non-Competitively Bid (NCB) contract, release a solicitation (such as an Invitation for Bid, Request for Quote, or Request for Offer), nor execute any other type of contract that exceeds or is expected to exceed the state department's approved purchasing authority. Exceptions and options are listed below:

1. Emergency contracts (natural disaster) as defined by Public Contract Code, Sections 1102, 10340, 10302, 12102, and 12102.1 may exceed a state department’s purchasing authority dollar thresholds without prior approval.
2. Transactions that are subject to DGS oversight and that exceed or are expected to exceed a state department's purchasing authority must be submitted to the DGS/PD as followings (choose one):
   1. Requisition to the One-Time Acquisitions Unit (OTA). For instructions refer to the:
      • One-Time Acquisitions Webpage
      • FI$Cal’s Job Aids/FAQ Webpage

      OR

   2. Purchasing Authority Increase Request (PAIR) to the Purchasing Authority Unit (PAU). Requests must not exceed maximum dollar thresholds noted in this chapter.