Classifying the Purchase - 303

Importance of Properly Classifying Purchases

It is important to properly classify proposed procurements to apply relevant laws, policies, and procedures to the procurement process and resulting contract.  For the most part, each acquisition type (i.e. Information Technology) is governed by different areas of law within the Public Contract Code (PCC) and therefore proper classification allows for the appropriate application of laws and subsequent policy and procedures.

Proper classification of proposed procurements is essential to determine:

• If the state department has the appropriate level of purchasing authority to conduct the procurement.
• If the procurement needs to be conducted by and under the procurement authority of the California Department of Technology (CDT).
• If certain procurement activities apply, such as advertising, type of solicitation document, etc.
• If additional approvals and/or waivers are required.
• Which contract terms and General Provisions to incorporate, reference, and/or attach.

Inaccurate classification of a proposed procurement may result in:

• Program or project delay.
• Waste of time and effort, ultimately wasting taxpayer money.
• Loss of funding.
• Disputes, protests, and/or lawsuits.
• Illegal contracts.

Help for Classifying Purchases

Departments that need assistance to determine the classification of a purchase after reviewing the available resources should first consult with their department’s Purchasing Authority Contact (PAC). The following may also be contacted for applicable situations:

• Purchases conducted under delegated purchasing authority: PAMS@dgs.ca.gov
• Purchases conducted by DGS/PD: DGS/PD/One Time Acquisitions
• Purchases made as part of a reportable IT project: The California Department of Technology (CDT).

Final Authority

The ultimate decision for the classification of acquisitions resides with DGS Deputy Director, Procurement Division.