Threshold Guidelines
| Dollar Value | Requirement |
|---|---|
| $0-$2,500 | Items under $500, are required to be on a P-card. Items over $500 can use a P-card or submitted in Bengal Buy. Prices should be reasonable. Obtaining a quote is suggested. Processing time 7-10 business days. |
| $2,500.01-$50,000 | Submitted in Bengal Buy. Price justification is required. 2-3 competitive quotations. If the department has obtained quotations, please send over with requisition. If sole source or single source, documentation from the department is required. See guidelines for sole/single source. |
| $50,000.01-$125,000 | Submitted in Bengal Buy. For non-state contracts - Notification in the Contract Reporter required. At least three written bids. If sole source or single source, documentation from the department is required. Price justification required. See guidelines for sole or single source. All bidding should go through Procurement Services. Processing time 3-5 weeks. |
| $125,000.01-$250,000 | For non-state contracts - Notification in the Contract Reporter, at least 5 formal sealed bids. Forms required - Vendor Responsibility, ST220, Lobbying Law, and Consultant Law, if applicable. If single or sole source, documentation from the department/supplier is required. Processing time 3-5 weeks. NOTE: If the award is not made to the low bidder, or a bid protest is received, or it is a sole or single source, prior approval from the Attorney General and the Office of the State Comptroller is required. Processing time - over 5 weeks. Items purchased from state contracts - no Contract Reporter, bids or approvals required. |
| Over $250,000 | For non-state contracts - All of the above, plus approval at the Office of the State Comptroller and Attorney General's Office. Processing time - over 5 weeks. Items purchased from state contract, no Contract Reporter, bids, approvals required. |
SINGLE SOURCE PURCHASE JUSTIFICATION
DEFINITION: A Single Source procurement is one in which two or more vendors can supply the commodity, technology and /or perform the services required by an agency, but the department selects one vendor over the others.
Departments must state the circumstances leading to the selection of the vendor, any alternatives considered, rationale for selecting the vendor and how it was determined that the price was fair and reasonable.
GUIDELINES for Substantiating Single Source
Past experience with a particular issue and this vendor has the historical knowledge or was the original installer.
Experience with similar projects at other agencies or at other levels of government.
Demonstrated expertise.
Capacity and willingness to respond to an emergency situation.
PRICE JUSTIFICATION:
- Competitive quote but other suppliers could not meet specifications.
- Comparison to product catalog.
- Comparison to similar product/service.
- Published price lists.
- Prices quoted are less than or equal to, those quoted to other governmental agencies.
- Records of previously bid items that were similar.
- Proven industry standard.
Documentation should be on departmental letterhead, signed and sent to Procurement Services with the requisition.
SOLE SOURCE PURCHASE JUSTIFICATION
DEFINITION: Sole source procurement is one in which only one supplier can provide the commodity, technology and /or perform the services required.
Every order, not on State Contract, that cannot be competitively bid, and is over $2500, must be documented as a sole source. The explanation must be maintained in the Procurement file.
The explanation must have three components:
l. Why is the item/service unique?
2. How do you know that there is only one source for this item/service?
3. The basis upon which the price/cost was determined to be fair and reasonable.
GUIDELINES for Substantiating Sole Source
l. Why is the item/service unique?
A description of the feature(s) that make the item/service unique and why you need this uniqueness.
Compatibility with, or component of, an existing item; provide enough detail to demonstrate that compatibility is necessary.
Original manufacturer/supplier, i.e. software, license.
Supplier holds a service contract and must supply parts to accomplish a contract.
Emergency order and no other supplier available at the time.
Proprietary purchase, no other supplier available.
2. How do you know that there is only one source for this item/service?
Advertise in the Contract Reporter and receive only one response (over $50,000).
Requested quotations and no one else responded.
Google search.
Proprietary purchase, no other supplier available.
Phone calls to competitors.
3. Price Justification
- Comparison to product catalog.
- Comparison to similar product/service.
- Published price lists.
- Prices quoted are less than or equal to, that quoted to other governmental agencies.
- Records of previously bid items that were similar.
- Proven industry standard.
Documentation should be on departmental letterhead, signed and sent to Procurement Services with the requisition.
Public Officer's Law, section 73(4)(a)(i), states that no State employee shall sell any goods or services having a value in excess of twenty-five dollars ($25.00) to any state agency unless such goods and services are provided pursuant to an award or contract let after public notice (Contract Reporter) and competitive bidding. The State Ethic's Commission has interpreted competitive bids to mean sealed bids.
This section of the Law was put in place to ensure a fair, open and competitive process and to avoid the appearance of a conflict of interest or favoritism being given to agency employees or state employees in general.
Buffalo State College will only enter into an agreement to conduct business with a state employee owned company after advertising in the Contract Reporter and conducting formal sealed bids.
The definition of EMERGENCY from the State Finance Law is:
"...an urgent and unexpected requirement where health and public safety, or the conservation of public resources, is at risk."
A failure to properly and timely plan in advance for a procurement, which then results in a situation in which normal procurement practices cannot be followed, does NOT constitute an "emergency".
Under $2500 - the department may use the Procurement Card to make a purchase. If the Procurement Card is unavailable, call Procurement (878-4113) immediately. We will work with you to expedite the purchase.
Under $50,000 - contact Procurement Services immediately, if possible. Obtain at least two quotations if possible. State Contract items do not require bids. Follow up with a purchase requisition and a written memorandum signed by the appropriate department head, describing the emergency in detail and requesting the order be processed under "Emergency" guidelines. Include price justification.
Over $50,000 - contact Procurement Services, if possible. If on state contract, a purchase may be made immediately. Otherwise, obtain at least two quotations if possible, and notification in the Contract Reporter is required. Where publication is not feasible due to the emergency nature of the commodity or service, and after approval by a campus senior officer, a verbal request for approval of an exemption, followed up with a written request, must be made to the Office of the State Comptroller (OSC), they will respond verbally as soon as practicable, and follow up with a written confirmation of its determination (item 7553,ll.A.5)
Emergency procurements are exempt from the formal competitive selection requirements, but the College must be able to justify and document the nature of the emergency and the selection of the vendor and establish reasonableness of price in the procurement record.
- Preferred Sources - Per New York State Finance Law Sec. 162: we are required by law to purchase commodities and services from Preferred Sources if a Preferred Source offering meets our needs for form, function, and utility.
- Anti-Sweatshop/Fair Labor Standards SUNY Policy - http://www.suny.edu/sunypp/documents.cfm?
- Minority/Women Owned SUNY Policy - www.suny.edu/sunypp/documents.cfm?doc_id610
- Lobbying Law - #139 for purchase orders over $15,000 - a bidder is restricted from making "contacts" (defined in the law as communications intended to influence the procurement) from the date of the notice of intent to solicit offers/bids to the date of the final award. The agency must record all contacts. www.suny.edu/sunypp/documents.cfm?doc_=430
- Vendor Responsibility - required documentation for all orders over $100,000 http://www.osc.state.ny.us/vendor/vendor_index.gtm
- ST-220, state tax form. Requires contractors awarded certain state contracts valued at more than $100,000 to cerify to the Tax Department that they are registered to collect New York State and local sales and compensating use taxes. www.tax.ny.gov/pdf/publications/sales/pub223.pdf Form located at http://www.tax.ny.gov/pdf/current_forms/st/st220
- Contract Reporter - purchases over $50,000 must be published in the Contract Reporter www.nyscr.org
- Buffalo State University Child Protection Policy-SUNY Buffalo State is committed to protecting the safety and well-being of children who participate in university-related programs and activities, whether on or off campus, or utilize campus facilities for activities including, but not limited to, sports camps, academic and personal enrichment programs, and research studies. Child Protection Policy (buffalostate.edu)
- University Policies - College Policies and Administrative Policy Library