Common use of PROCUREMENT BY SMALL PURCHASE PROCEDURES Clause in Contracts

PROCUREMENT BY SMALL PURCHASE PROCEDURES. Small purchase procedures are those relatively simple and informal procurement methods for securing services, supplies, or other property that do not cost more than the "Simplified Acquisition Threshold" in accordance with 41 U.S.C. 1908 (2 CFR 200.88) (currently set at $150,000) and where procurement by sealed bid is not required. If small purchase procedures are used, price or rate quotations shall be obtained from an adequate number of qualified sources to insure that the selection process is competitive. Records of these price or rate quotations should be maintained in the project files. Please note that 2 CFR 200 states that “the sealed bid is the preferred method for procuring construction.” Therefore, the non-Federal entity should carefully evaluate Construction Contracts, even if they are under the Simplified Acquisition Threshold, to determine whether they should be procured by sealed bid. 1. Rationale for using small purchase procedures 2. Written criteria of materials or scope of work used to obtain quotes 3. Clearly dated records of price or rate quotations from an adequate number of qualified sources

PROCUREMENT BY SMALL PURCHASE PROCEDURES. Small purchase procedures are those relatively simple and informal procurement methods for securing services, supplies, or other property that do not cost more than the "Simplified Acquisition Threshold" in accordance with 41 U.S.C. 1908 (2 CFR 200.88) (currently set at $150,000250,000; increased from $150K by HUD in 3/2019) and where procurement by sealed bid is not required. If small purchase procedures are used, price or rate quotations shall be obtained from an adequate number of qualified sources to insure ensure that the selection process is competitive. Records of these price or rate quotations should be maintained in the project files. Please note that 2 CFR 200 states that “the sealed bid is the preferred method for procuring construction.” Therefore, the non-Federal entity should carefully evaluate Construction Contracts, even if they are under the Simplified Acquisition Threshold, to determine whether they should be procured by sealed bid. 1. Rationale for using small purchase procedures 2. Written criteria of materials or scope of work used to obtain quotes 3. Clearly dated records of price or rate quotations from an adequate number of qualified sources