AUTHORIZATION REQUIREMENTS FOR PURCHASES
1. Purchases up to $1,000. All procurements of services and goods in an amount less than $1,000 may be approved by the Department Director, provided such procurements have been budgeted for within the department and are in line with the budgeted purposes and responsibilities of said department. A Department or Division may not spend a maximum of $50,000 in a fiscal year with an individual vendor using the small purchase limit. This rule cannot be used for ongoing services. Contracts at this limit, if required, can be executed by the Purchasing Agent. No quotes are required at this limit.
2. Purchases over $1,000 and up to $5,000. All procurements of services and goods in an amount over $1,000 and up to $5,000 must have a purchase order approved by the Department Director and the Purchasing Agent prior to initiating the purchase. Descriptions of items or services will use sufficient and descriptive terminology to allow the reviewer to understand what is being purchased and why, part numbers by themselves are not sufficient. When the individual procurement item cost is more than
$1,000 for one or more items AND the total procurement is less than $5,000, the Department or Division must obtain competitive quotes. All purchases between this limit shall be made after obtaining a minimum of two bids. The agency must purchase the item/service from the supplier offering the lowest quote meeting specifications unless one is of a higher and better quality. Contracts at this limit can be executed by the Purchasing Agent. See Exhibit A for the required quote sheet. See Exhibit B for the required the Purchase Order.
3. Purchases over $5,000 and up to $15,000. All goods, services, and equipment over $5,000.00 but less than $15,000.00 require (at a minimum) three (3) written quotes from three (3) different vendors. Quotes may be provided by fax, mail, e-mail, or by printing listed prices from vendor websites. The Purchasing Agent may require the department to conduct an RFP to ensure pricing is competitive. A waiver of the required minimum number of quotes will be granted by the Purchasing Agent or designee upon a showing that a diligent effort was made to obtain the quotes or a Sole Source justification has been provided and approved. All quotes (and wavier, if applicable) shall be submitted electronically with the requisition or contracted award as part of the formal purchasing record. The Department Director must sign the quote selected for the procurement.
Once quotes have been obtained, the method of procurement is determined by type of expenditure and total cost, as follows:
a. Goods/Equipment under $10,000.00 – San Juan County Purchase Order.
b. Goods/Equipment between $10,000.00 and $15,000.00 – may constitute a capital purchase and requires assistance from the Purchasing Agent and requires a San Juan County Purchase Order with appropriate terms and conditions.
c. Services between $5,000.00 and $15,000 – County approved Contract is required executed by the San Juan County Board of Commissioners unless delegated to the Purchasing Agent.
Documentation of the solicitation of three quotes or reference to the exemption of those requirements must be attached. Purchases within this range will need a County approved contract.
4. Purchases over $15,000 and up to $50,000. Purchases over $15,000 require a written contract to be approved in an open meeting. Purchases between $15,000 which are ongoing services must be put out for competitive bid with a public notice. All procurements of services and goods in an amount over $50,000 must be put out for competitive bid with a public notice and to be prepared and approved by the Department Director, Supervisor, Purchasing Agent and San Juan County Board of Commissioners (See section of Competitive Bids for requirements).
5. Purchases over $50,000. Acquisitions of goods, equipment or services over $50,000.00 are subject to the following requirements, depending on type of expenditure and total cost:
a. Goods/Equipment/Services over $50,000.00 – RFP and County Approved Contract.
b. Building Improvements over $50,000.00 – RFP and County Approved Contract.
c. Road Department and Public Works Projects under $150,000.00 – Three (3) written quotes from three (3) different vendors (see details in previous section) and County Approved Contract.
d. Road Department and Public Works Projects over $150,000.00 – RFP and County Approved Contract.
6. Avoidance of approval and written contract requirements. Purchases shall not be divided into smaller purchases for the purpose of evading the approval process required by this policy, or for the purpose of avoiding the need to obtain a written contract.
7. Sole Source Procurement. Conditions For Use of Sole Source Procurement:
a. Sole source procurement shall be used only if a requirement is reasonably available from a single supplier. A requirement for a particular proprietary item does not justify sole source procurement if there is more than one potential bidder or offeror for that item.
b. Examples of circumstances which could necessitate sole source procurement are:
i. where the compatibility of equipment, accessories, replacement parts, or service is the paramount consideration;
ii. where a sole supplier's item is needed for trial use or testing;
iii. procurement of items for resale;
iv. procurement of public utility services.
v. The determination as to whether a procurement shall be made as a sole source shall be made by the purchasing agent. Each request shall be submitted in writing by the using agency. Such officer may specify the application of such determination and its duration. In cases of reasonable doubt, competition should be solicited. Any request by a using agency that a procurement be restricted to one potential contractor shall be accompanied by an explanation as to why no other will be suitable or acceptable to meet the need.
