Level of Competition Required
When needed commodities or services cannot be obtained from an existing source or a government entity, state procurement procedures must be used. The dollar of the purchase determines the level of competition required:
Purchases $2,500 and below
Use adequate procedures to ensure commodities and services are obtained at a fair and reasonable price, which may include the soliciting only one informal bid or proposal. Rotate vendors solicited on an equitable basis (ref.
N.D.A.C. § 4-12-08-02). “Fair and reasonable” price can be based on previous purchases, market research, a published price list, or by simply soliciting more than one vendor. Remember, “When in doubt, bid it out.” Use the state purchasing card whenever possible. See the OMB Purchasing Card Manual.
Purchases $2,500.01 to $25,000
Solicit no fewer than three vendors, insofar as practical, to submit oral or written informal bids or proposals. If you do not receive three bids or proposals, provide a written justification (e.g., “only two known vendors” or “contacted three vendors, only two responded”).
Purchases over $25,000
Solicit formal sealed bids or proposals with notice to approved bidders on the State Bidders List and post on the State Procurement Online website (ref. N.D.C.C. § 54-44.4-14, N.D.A.C. Chapter 4-12-08).