Purchasing Threshold Changes Announced
In late 2017, the Office of Management and Budget (OMB) and the North Dakota University System (NDUS) announced they were exploring the possibility of synchronizing thresholds. The new OMB thresholds will be very similar to the new State Board of Higher Education and North Dakota University System policies and procedures.
The new thresholds for both OMB and NDUS will go into effect on July 1, 2018. More information will be provided soon to help agencies prepare for this transition. Contact Sherry Neas at 701.328.1726 with questions.
OMB Guidelines for the New Thresholds Effective July 1, 2018
- Government Sources of Supply: Competition is not required if using an OMB State Contract or a government source of supply, such as OMB Central Duplicating, OMB Central Supply, State Surplus Property, Rough Rider Industries, Information Technology Department, etc. Agencies can also purchase directly from Work Activity Centers.
- OMB Delegated Authority to State Agencies: OMB will continue to delegate unlimited purchase authority to state agencies for commodities and services. Agency Heads will determine how purchase authority is managed within their agency. State employees who conduct procurements must complete the OMB Procurement Officer Certification Training for the level of the procurement.
- Procurement Officer Certification Training: OMB is changing the Procurement Officer Certification Training to reflect the new purchasing thresholds. Procurement Officers will be required to take recertification training. More information regarding training and recertification will be provided later.
- Printing Delegated Authority - $5,000: OMB is delegating agencies authority to purchase printing less than $5,000. Printing $5,000 and over must be requested thru the Procurement Work Request System. Agencies may also ask OMB to bid printing under $5,000 thru the Procurement Work Request System.
- Agency Lead Procurement Officer: OMB requires all state agencies to have a designated Procurement Liaison who acts as the Agency’s lead procurement officer and liaison to OMB State Procurement Office.
- OMB State Procurement Services: Agencies are not required to conduct their own procurements. OMB has State Procurement Officers assigned to assist each agency. State Procurement will conduct solicitations upon request of agencies, assist agencies with writing and reviewing solicitations, help evaluate bids and proposals, etc. Agencies can submit requests through the Procurement Work Request System.
- Templates and Forms: OMB is updating templates and forms for use with the new thresholds.
- Information Technology (IT) Requirements: IT purchases $25,000 and over must be reviewed by the Information Technology Department, and this requirement will not change under the new thresholds. There are numerous special requirements related to IT Procurement.
- Alternate Procurements: Alternate Procurements forms will not be required for purchases under $10,000. Agencies will be required to submit an Alternate Procurement to OMB State Procurement for noncompetitive and limited competitive purchases $10,000 and over through the SPO Work Request System.
- Why Four Levels? Level 3 is new – This level requires full public notice using the SPO Online website and the appropriate bidders list. However, agencies will be required to do informal written solicitations, which means vendor responses may be received through electronic means, such as email and fax. Level 3 does not require a public opening, so responses can be reviewed upon receipt. Level 4 requires full public notice using the SPO Online website and the appropriate bidders list. Level 4 requires sealed bids and proposals with a public bid opening.