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Thresholds For Competition For Goods Or Services

Under $50,000

Purchase requisitions under $50,000.00 (exclusive of sales tax) that are determined to have met fair and reasonable standards may be processed without bid activity. However, if, in the assigned Buyer's judgment, the prices listed on the requisition do not seem reasonable, the Buyer may obtain additional quotes.

The attainment of the standard of “fair and reasonable” may be determined by, but not be limited to, one of the following techniques:

Catalog or Market Price – The price offered is supported by an established and verifiable catalog or market pricing medium issued by a responsible supplier and/or through an established reputable forum. In addition, the pricing structure provided is one that a prudent Buyer would accept as a reasonable representation of existing market value.

Price Comparison – A buyer has obtained quotes or offers within the last 6-month period from other responsible suppliers which provide evidence that a price obtained is deemed fair and reasonable.

Historical Pricing – A buyer is able to demonstrate that other transactions occurring in the past 18 months show prices for similar acquisitions, which provides evidence that a price obtained is deemed fair and reasonable.

Controlled Pricing – Law or regulation sets the price offered

Between $50,000 & $100,000 - Goods & Services and Between $50,000 and $500,000 -ITR Goods and Services including IT Consulting

Requisitions for amounts between $50,000 and $100,000 (exclusive of sales tax) for goods and/or services or between $50,000 and $500,000 for Information Technology Resources (ITR) or Information Technology (IT) consulting require non-advertised, informal competition with responses required from a minimum of three suppliers.

A Buyer will determine the best solicitation method for the procurement, work with the requesting department to develop specifications and/or scope of work if necessary and obtain quotations.  Obtaining and evaluating quotations is limited to Procurement and Contracts staff only to ensure that all suppliers are presented with the same information including terms and conditions and that responses are evaluated on an equal basis.

Requests for exceptions to competition are evaluated based on CSU Policy: CSU Contract and Procurement Policy: Limits on Competition (Section II. E).

Over $100,000 - Goods and Services AND Over $500,000 - ITR Goods and Services including IT Consulting

Requisitions for amounts greater than $100,000.00 (exclusive of sales tax) for goods and/or services or greater than $500,000 for Information Technology Resources (ITR) or Information Technology (IT) consulting require formal, written bids advertised in the California State Contracts Register.

A Buyer will work with the requesting department to develop specifications and/or scope of work if necessary and obtain quotations.  To ensure that all suppliers are presented with the same information including terms and conditions and that responses are evaluated on an equal basis, issuance and evaluation of bids are limited to Procurement and Contracts staff.  In some instances, an evaluation team may be assembled and the Buyer will participate on the team.  All team members will be required to complete and submit a Conflict of Interest and Confidentiality Statement prior to reviewing any responses.

Requests for exceptions to competition are evaluated based on CSU Policy: CSU Contract and Procurement Policy: Limits on Competition (Section II. E)

Acquisitions Less than $250,000 from California Certified Small Business or Disabled Veteran-Owned Business Enterprise (DVBE)

This is called the Small Business/DVBE Option. Acquisitions of goods or services that are estimated to be less than $250,000 may be awarded to a Certified Small Business or DVBE, as long as Procurement and Contracts obtains price quotations from two or more Certified Small Businesses or two or more DVBEs as referenced in Government Code Section 14838.5.

NOTE: The dollar amounts listed throughout the Thresholds for Competition section are calculated to include shipping charges but EXCLUDE sales tax. For example, if the requisition total before tax is $49,999.99, competition is not mandatory; however, if there are any shipping charges or an installation fee in addition to the $49,999.99, Procurement and Contracts will follow the guidelines for purchase requisitions $50,000 and over.