1,507: Basic Purchasing Procedure
Revised: December 2021
Small Dollar Purchases (less than $5,000.00): Purchases of supplies and services, less than $5,000.00, shall be made using the most effective and efficient means available, while maintaining adherence to basic purchasing policies. These methods most commonly include purchasing cards (p-cards) or purchase orders, giving preference to contracted suppliers whenever possible.
Purchases of $5,000.00 to $25,000.00 or $10,000.00 for Federal funding: Purchases of supplies and services, up to $24,999.99, or $9,999.99 if using Federal funds or if the purchase may be transferred to Federal funds at a later date, shall adhere to basic purchasing policies. Purchase orders for the acquisition of goods and services of $5,000.00 or more are issued only by Purchasing following submittal of a properly approved and funded requisition. Purchases in this range must be documented with a quotation or reference to a price list from the recommended supplier.
Purchases using Federal Funds of $10,000.00 to $49,999.99: Purchases in this range of goods and services using Federal funds or if the purchase may be transferred to Federal funds at a later date require quotations from two or more responsible suppliers before a purchase order is issued.
Purchases of $25,000.00 to $49,999.99: Purchases of goods and services in this range require quotations from two or more responsible vendors before a purchase order is issued.
Purchases in amounts that exceed $50,000.00: Purchases of supplies, equipment, and services, other than capital construction, valued at $50,000.00 or more, will be awarded after Purchasing completes a formal bid-proposal process.
The bid threshold for capital construction projects is $100,000.00. For the purposes of determining the bidding threshold the total cost of the requirement normally includes any options, add or deduct alternates, and trade-ins, for the life of the contract including option years.
Requirements for more than one written quotation and/or formal bids-proposals may be waived by the Purchasing Department when it is in the best interests of NSHE. The purchasing file shall be documented prior to the processing of a purchase order as to the circumstances when competitive quotes or solicitations are not obtained.