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Definitions
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 historically underutilized business enterprises (HUB). Divisions should regularly consider and purchase items from these vendors to achieve the 15 percent goal on a divisional basis. Purchase orders from MBE and HUB vendors should be flagged as MBE set-aside purchases to achieve this accounting.
Direct Purchase Authority Authorized by DAS
- All supplies that cost less than $27,600
- All services that cost less than $55,100*
Competitive Selection and Controlling Board Waiver
A purchase of goods that cost $27,600 or more, and services that cost $55,100* or more, must be made as follows:
- Through competitive selection with DAS.
- A release and permit granted from DAS.
- 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 to $50,000 or more in a single fiscal year.
A purchase that amounts to less than the agency's cumulative purchasing threshold of $50,000 and under $27,600 for goods and $55,100* for services, may choose to make the purchase by competitive selection through Administrative Services or make the purchase using direct purchase authority.
*Controlling Board approval is required if services are $50,000 or more.
Pre-Approvals
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 $27,600 and equipment greater than $55,100 from other than term contract sources require a Release and Permit from the DAS Office of State Purchasing. Contact the Office of Budget and Finance to arrange for this Release and Permit.
For computer and telecommunication purchases, the agency has blanket pre-approval for individual purchases less than $25,000. A Release and Permit is required from the DAS Office of Computers and Telecommunications for computer and telecommunication purchases that exceed $25,000. Contact the DNR Office of Computers and Communications to arrange for this Release and Permit.
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:
Purchases $1,000.00 or less may be made without verbal or written price quotes if the division is reasonably sure that it has been provided competitive pricing.
Purchases greater than $1,000.00, but less than $5,000.01 require 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. 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 $5,000.00 require a minimum of three written quotes obtained from vendors.
Three price quotes 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.
In the case of a sole-source supplier, a letter should be obtained from the vendor indicating and verifying a sole-source 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 $1,000 or less may be made with the payment card. If a DNR cardholder is reasonably sure that it has been provided competitive pricing, verbal quotes are unnecessary. Payment card purchases of computers and telecommunications equipment of $1,000 or less do not require pre-approvals. 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.
Purchases of Promotional Items
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 Sub-Object Code of expense for the purchase of promotional items is 283-03. 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.
Miscellaneous
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.
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.
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