Procurement Guidelines

Micro Purchases

• Simple, informal method of purchasing items of a lower threshold of up to $10,000 per purchase.
• Purchases can be made without soliciting competitively as long as the price is considered to be reasonable.
• To ensure fairness in procurement, when using a micro purchase threshold, it is encouraged to use all competitive vendors that are available and willing to provide the goods and services at a reasonable price.

Small Purchases

• Simple, informal method of purchasing for items of supply or services with a cost not to exceed $150,000.
• Price quotes from an adequate number of qualified sources of supply.
• Issuance of a unilateral purchase order.

Sealed Bidding
Conditions of use:

• A cost over $150,000
• Concise and unambiguous specifications
• Three or more responsive and responsible bidders available
• Firm fixed price type of contract or purchase order
• Selection based on price

Requirements:

• Public advertising
• Written solicitation with clear specifications
• Solicitation of an adequate number of vendors or potential contractors
• Public bid opening
• Awarded to the supplier offering the lowest price and has been determined to be responsive and responsible

Competitive Negotiations (Request for Proposal, Request for Qualifications, A-E Contracts, Construction Contracts)
Conditions for use:

• A cost over $150,000
• Selection to be based on other than price alone
• Cost reimbursement type of contract

Requirements:

• Public advertising and direct solicitation
• Insure an adequate number of qualified sources
• Evaluation criteria stated in solicitation
• Establish methods for technical evaluation
• Determine which vendors are appropriate for further negotiations
• Select the vendor whose proposal is most advantageous to FAHA 

Noncompetitive Negotiation or Bid

Limited to single source or if no other bidders or vendors can be identified after solicitation or advertising

Conditions of use:

• The vendor or bidder provides a unique or singular service or supply item
• Emergency condition whereby life or property is in immediate danger - This method may only be used to alleviate the specific emergency. Subsequent actions to correct the situation or condition require that competitive procurement methods be used.
• Unavailable data or information about item or service needed
• HUD authorizes the use of noncompetitive proposal
• The vendor or bidder is the only source for equipment or materials presently used by FAHA.

Cooperative Purchasing/Intergovernmental Agreement

• A state and/or local cooperative or intergovernmental agreement
• Agreement may be used to purchase or use common supplies, equipment or services
• Decision to use this form of agreement is based on economy and efficiency