Procurement Guidelines

• Micro Purchases:
• • Purchases less than $10,000
  • Price quotes from an adequate number of qualified sources of supply
  • Issuance of purchase order
• Small Purchases:
  • More than $10,000 but less than $50,000
  • Reasonable number of quotes, preferably three (3)
  • Quotes may be obtained orally (either in person or by phone), by fax, in writing, e-mail or E-Procurement
  • Reasonableness of price

Sealed Bidding:

• Conditions
  • Purchases greater than $50,000 and that are not competitive proposals
  • Non-competitive proposals
  • Two or more responsive and responsible bidders available
  • Firm fixed price contract
  • Selection based on price
• Requirements
  • Public advertising
  • Written solicitation with clear scope of work
  • Solicitation of an adequate number of vendors or potential contractors
  • Public bid opening
  • Award to the supplier offering the lowest price and has been determined to be responsive and responsible

Competitive Proposals:

• Conditions
  • Procuring professional services that will exceed the small purchase threshold of $50,000
  • Selection to be based on other than price alone
  • Request for Proposal (RFP)
• Requirements
• • Public advertising and direct solicitation
  • Ensure an adequate number of qualified sources
  • Evaluation criteria stated in solicitation
  • Establish methods of technical evaluation
  • Determine which vendors are appropriate for further negotiations
  • Select the vendor whose proposal is best for VHA
  • Noncompetitive Negotiation or Bid

Non-Competitive Proposal:

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