Demolition/Abatement Constracts (Folders 1-2)

Home Browse Search

Chapter 4: Methods of Selection http://www.fta.dot.govlfta/library/adminBPPman/sect 40.htm purchase and pay for micro-purchases; ~ • agencies are encouraged to delegate micro-purchase authority to employees of the agency who will actually be using the supplies or services being purchased;l3 • contract clauses are not required for micropurchases; and • documentation to support micro-purchases is to be minimized.~ A recent report by the General Accounting Offic~ that addresses use of credit cards by Federal agencies is expected to result in more relaxed guidance being issued by the Federal agencies and increased usage of the credit card. The report discusses the savings in time and money that an agency can realize by utilizing credit cards for micro-purchases and the fact that there has been no apparent increase in procurement fraud through the utilization of these cards. There is no absolute guidance that can be given in this area as to what works best or even well. The authority to use micro-purchases is intended to provide a very flexible procurement method which will allow you to buy low-priced items in a cost-efficient manner. 4.2 SMALL PURCHASES UIItEMENT Sma11 purchase procedures may not be used if the services, supplies, c~r other property costs more than $100,000. If small purchases procedures are used, price or rate quotatia:ns sha11 be obtained from an ade uate number of ualified sources. FTA Circulaz 4220.1D & 9.b. DEFINITION Small Purchase - Acquisition of services, supplies or other properry that cost less than the federal simplified acquisition threshold, currently fixed at $100,000. Small Pwchase Procedures - Those relatively simple and informal proeurement methods used to make sma11 purchases. If these procedures are used, price or rate quotations sha11 be obtained from an adequate number of qualified sources. DISCUSSION As a method of procurement, smatl purchase procedures recognize that up to some statutory level (5100,000 for federal procurements) it coutd cost more to conduct formal eompetition than the value ezpected to be yielded by the formal competition. This p~rocedure requires obtaining only limited competition from an "adequate" number of "qualified" saurces (at least two). Solicitations and quotations for small purchases may be either oral or written. Best Practices State and Federal Thresholds - As with most other procurement methods, it is important that you determine the dollar threshold for small purchases in your state taw and Iocal requirements. In many cases, the definition will not define a small purchase but, rather, will establish at what dollar value competitive sealed bids or proposals are required -- e.g., "before a contract can be awarded in excess of $15,000, the procedures of this statute relating to competitive seal~d`bids or competitive sealed proposals 5 of 45 0 I/ 10!97 13:0922