- Direct Purchase Authority means the authority granted to agencies by the Department of Administrative Services (DAS) to make certain routine purchases within the direct purchase dollar amount thresholds and prudent cost benefit.
- Debit means any disbursement that does not require or reference a purchase order and/or Payment Card. In terms of an agency's direct purchasing authority, a debit is a purchase of $500.00 or less that does not require a written purchase/sales contract.
- Purchase means to buy, rent, lease, lease purchase, or otherwise acquire supplies or services. "Purchase" also includes all functions that pertain to the obtaining of supplies or services, including description of requirements, selection and solicitation of sources, preparation and award of contracts, all phases of contract administration, and receipt and acceptance of the supplies and services and payment therefor.
- Purchase Order means a document created by the Ohio Administrative Knowledge System (OAKS) that details the purchase transactions and serves to encumber the necessary appropriation to support the purchase. The purchase order represents the required written agreement or contract for non-payment card purchases greater than $500.00.
- Services mean the furnishing of labor, time, or effort by a person, not involving the delivery of a specific end product other than a report which, if provided, is merely incidental to the required performance. "Services" does not include services furnished pursuant to employment agreements or collective bargaining agreements.
- Supplies means all property, including but not limited to equipment, materials, insurance, and other tangible assets, but excluding land or a permanent interest in land.
- Verbal Quote means a price quote verbally received from a vendor supplying a good or service. The term "verbal" indicates that the agency received the price quote in a non-written form from the vendor and may or may not have documented it for purchasing comparisons or records.
- Written Quote means a price quote received in writing from the vendor supplying or providing a good or service. The term "written" indicates the written document or e-mail originates from the vendor, not the agency or state employee seeking price quotes.
- Competitive selection means either of the following procedures for making purchases:
- Competitive sealed bidding under section 125.07 of the Revised Code;
- Competitive sealed proposals under section 125.071 of the Revised Code.
Required Sources of Supply
Where a supply or service is available from or through a particular state agency, regardless of the price, buying agencies are required to purchase the supply or service from that agency. Before making any purchase, you must first determine if the supply or service is available from any of the following sources:
MBE Set-Aside Competition The department is required to make approximately 15 percent of annual purchases from minority business enterprises (MBE) and/or 5 percent of purchases from encouraging diversity, growth and equity (EDGE). Divisions should regularly consider and purchase items from these vendors to achieve the 5 or 15 percent goal on a divisional basis. Purchase orders and Payment Cards from MBE and EDGE vendors should be flagged as MBE set-aside purchases to achieve this accounting. These requirements are based on the predetermined account code list.
Direct Purchase Authority Authorized by DAS
- All supplies that cost less than $50,000 *
- All services that cost less than $50,000 *
* Requirements based on Executive Oder 2008-12S
Competitive Selection and Controlling Board Waiver
A purchase of goods that cost $50,000 or more, and services that cost $50,000 or more, must be made as follows:
- Through competitive selection with DAS.
- A request to purchase granted from DAS.>/li>
- Controlling Board approval for waiver of competitive selection, if a release and permit was not granted.
- Controlling Board approval is required when all obligations from a single supplier amount equal to $50,000* or more in a single fiscal year agency wide.
A purchase that amounts to less than the agency's cumulative purchasing threshold of $50,000 of goods and services may choose to make the purchase by competitive selection through Administrative Services or make the purchase using direct purchase authority.
Certain types of items require review and approval by the Department of Administrative Services prior to making a purchase (e.g., computers, telecommunications equipment, copiers and vehicles). Purchases of supplies greater than $50,000 and equipment greater than $50,000 from other than term contract sources require a request to purchase from the DAS Office of Procurement Services. Contact the Office of Budget and Finance Purchasing Manager to arrange for this request to purchase.
According to Budget Directive #4 (3/11/08) : a release and permit request as well as an equipment control waiver request must be submitted to OIT prior to IT equipment purchases of $300 or more. For purchases of $300 or less, divisions are required to seek approval from OIT with regards to any type of storage device, computers, software, etc. Therefore, we do not allow the use of the blanket R&P for ANY 537 expenditures. Contact the DNR Office of Information & Technology to arrange for this Release and Permit. It is no longer necessary to add DNR/OIT as an ad-hoc approver for IT purchases in OAKS. This is due to the fact that under current IT procedures, Divisions contact OIT when they begin the process of acquiring IT equipment. As OIT has already reviewed these purchases when the process began, there is no longer a need for an ad-hoc approval at the OAKS purchase order stage. The IT Equipment Control Waiver form must be used for IT purchases rather than the OBM equipment waiver form. Contact DNR OIT for the IT equipment waiver form. (any requisition exceeding $1,000.00 still require OBF approval as Director’s designee to comply with Governor Executive Order 2009-7S)
Process for Direct Purchases
Direct purchase should be made according to the following dollar amounts and requirements to ensure efficient and effective cost benefit and utilization of resources:
For purchases with a value of $500 or less, the agency will obtain a minimum of two verbal quotations. Purchases greater than $500 but less than $2500 requires a minimum of three verbal quotes that are documented and maintained to record the vendors that were contacted, the supplies or services sought, the quoted price and the vendor selected. Purchases over $1000 require approval from the Office of Budget Finance prior to making the purchase*. Where the vendor selected was not the vendor that provided the lowest quote, you are to note the reason for its selection. Purchases greater than $2500 require a minimum of three written quotes obtained from vendors.
* Adhoc Philip Murray in the requisition approval stage in OAKS
Three price quotes, both verbal and written, are not required in the case of emergencies, in the case of sole-source suppliers, and in cases where a formal Request for Proposal (RFP) process is performed.
In emergency situations, divisions should make purchases on reasonable bases with the expedience for the public's safety or protection of assets as the primary considerations. Documentation explaining the emergency situation is to be attached to the purchase order and kept on file. Law defines an emergency situation as one which creates a threat to public health, welfare, safety or other such reasons as proclaimed by the Governor. Examples of these types of emergencies in Ohio could include, but not limited to: floods, ice/snow storms, tornado damage, radiation leaks, pandemics or acts of terrorism. Another type of emergency may be due to a situation that has developed at the agency and that can cause disruption of their daily activities. Examples of this type of emergencies are: breakdown of a boiler, HVAC system or security system, localized fire or weather damage. If this emergency happens during normal business hours, divisions are required to follow the normal purchasing policy and procedures however if such emergency happens during non-business hours, the divisions may proceed with the purchase and then must contact OBF immediately next business day and forward all appropriate documentation. OBF will forward all documentation to Office of Procurement Services and the Controlling Board on behalf of the division for review and approval.
In the case of a sole-source supplier, a letter should be obtained from the vendor indicating and verifying a sole-source product and stating that they are the only vendor to sale or service said product. This letter should be attached to the purchase order and kept on file.
The formal Request for Proposal process represents the department's good faith effort of obtaining price quotes for purchases. Formal RFP processes that produce less than three proposals justify an exception to the three-price quote policy. The RFP and results should be attached to the purchase order and kept on file.
Where you determine that it is not possible or not advantageous to the state to select a supplier or provider based upon lowest cost, the agency may select a vendor using a Request for Proposal (RFP) or similar process. To properly use the RFP process, consult sections 125.07 and 125.071 of the Revised Code and Administrative Rule 123:5-1-08.
Purchases Greater than $500 Purchased without a Payment Card
Where an agency is purchasing goods that amount to $500 or more, without a payment card, a purchase order is required. An agreement for the sale of goods for a price of $500 or more is not enforceable in Ohio unless the agreement is reduced to writing. The purchase order serves as the written agreement.
Payment Card Purchases
Under an agency's direct purchasing authority, purchases of items of $2,500 or less may be made with the payment card. For purchases with a value of $500 or less, the agency will obtain a minimum of two verbal quotations. Purchases greater than $500 but less than $2500 requires a minimum of three verbal quotes that are documented and maintained to record the vendors that were contacted, the supplies or services sought, the quoted price and the vendor selected. Purchases over $1000 require approval from the Office of Budget Finance prior to making the purchase *. Purchase orders are not required for payment card purchases. In addition to an agency's direct purchasing authority, the payment card may also be used to make purchases from selected state term contracts and state term schedules.
*To get P-Card approval go to the ODNR main email drop down list & look for Approval.
Purchases of Promotional Items (From ODNR Employee ID Policy)
The purchase of promotional merchandise of a nominal value for the free distribution to the general public is appropriate in some situations. Promotional items such as mugs, lapel pins, and key chains, etc. may be purchased on a very limited basis that is for specific public marketing purposes of special events, occasions, and program initiatives. The items are meant to be for the public and not for distribution to employees. These purchases should be made with consideration for reasonable/nominal cost, good judgment, and public perception.
The Department of Natural Resources must be indicated as the primary identifier. Department lettering on all items must be the same font size as the division's lettering.
The expense account for the purchase of promotional items is 528303. OBM will approve these purchases if the following is met:
- The purchase must demonstrate a business purpose and provide a legitimate public benefit.
- The purpose and occasion must be clearly indicated on an attachment to the voucher.
Do not split a purchase of like supplies and/or services to avoid competitive selection with Administrative Services or waiver of competitive selection by the Controlling Board. Doing so goes against the DAS Directive.
Divisions must establish purchasing procedures consistent with this department policy, Department of Administrative Services Policies and Office of Budget and Management Policies. Divisions must ensure the efficient use of human and capital resources when implementing these purchase procedures.
Suspensions and Debarments
Agencies are prohibited from awarding a contract for supplies or services, funded in whole or part with federal and/or funds, to a person or a vendor that appears on any debarment list. These lists include the Federal List of Excluded Parties located at: http://epls.amet.gov , the Ohio Department of Transportation debarred list located at: http://www.dot.state.oh.us/CONTRACT/Notice/Debarment.pdf, Auditor of State Findings for Recovery Database: http://www.auditor.state.oh.us/OnlineServices/FFR/default.htm or DAS debarment list located at: www.ohio.gov/procure .