Dollar Thresholds for Quotes (Guidance V)

Purchasing Guidance #5 Dollar Thresholds for Quoting Ohio Department of Transportation

Pursuant to Executive Order 2008-12S…State Agencies that purchase supplies or services are to post all state contract opportunities exceeding $25,000, and all of their current contracts exceeding $25,000, on the Ohio Business Gateway procurement portal…. Effective July 1, 2009, there will be changes to the ODOT quote process in order to comply with this EO. Additionally this incorporates new processes that will be implemented relating to the Inspector General’s Report 2007-100 which identified areas of concern regarding purchasing practices.

Currently, our purchasers have the ability to use their direct purchase authority (non-contract) quote up to $50,000 per vendor per fiscal year. Effective July 1, 2009, the process will change to reflect the following:  All source documentation including quotes, regardless of amount, shall be reviewed and approved by the District Fiscal Officer prior to the purchase. The source documents for all quotes must be kept in the District Fiscal Office for the retention cycle and be available for review at any time.

 Any quotes, requisition type codes 03 (regular quotes) and 13 (lands and buildings), $10,000 to $24,999 must have Central Office approval, by both Tom Pannett, Acting Administrator, Office of Contracts and Therese Dyer, Administrator, Office of Accounting.

 At $24,999 and above, the information pertaining to the purchase, including all specifications must be sent to the Office of Contracts, Tom Pannett, for review. The Office of Contracts will evaluate the need to create an RFP (Request for Proposal) or other formal contract document and post the opportunity to the DAS website for a predetermined period of time decided between the requesting office and the Office of Contracts. o If you send out quotes and they are returned with prices over the $24,999 threshold, they must be rejected. The Office of Contracts should then be contacted to assist with the purchase. o Do not split projects or purchases to circumvent these processes as it may lead to disciplinary action.

We understand that the purchasing rules have changed over the past year and are more detail oriented than ever before. In this case, we have researched the volume of transactions that will be affected and do not feel this guidance will have a large impact on the purchasers. Information is provided below. Purchasing Guidance #5 Dollar Thresholds for Quoting Ohio Department of Transportation

Statewide Quote Information Quotes at $10,000 Quotes over $25,000 FY 2008 110 31 FY 2009 129 36

This table will replace any information previously published regarding quote requirements. Quote Threshold Required Quotes $0 to $999 1 $1,000 to $2,499 2 $2,500 to $9,999 3 $10,000 to $24,999 3 & Approval from Administrators of Contracts and Accounting $25,000 or Greater Office of Contracts

If you have questions regarding this Guidance, please contact via email both: The Administrator of the Office of Contract – Thomas P. Pannett Email address: [email protected] AND The Administrator of the Office of Accounting – Therese Dyer Email address: [email protected] Intentional violations of this guidance will result in disciplinary action up to, and including, termination.