As a result of changes in the recently enacted NYS budget, state agencies now have an increased discretionary purchase and Contract Reporter advertisement threshold of $150,000. Purchases at or below this amount processed by the Business Services Center (BSC) will no longer require Office of the State Comptroller (OSC) pre-approval.
Please continue to submit your discretionary purchases under this new threshold exactly as you normally would.
While formal competitive bidding is not required for these discretionary purchases, agencies must still adhere to the following guidelines:
- Follow Order of Purchasing Priority: Consider preferred sources and OGS Centralized contracts first.
- Verify Needs: Ensure all purchases meet form, function, and utility requirements, including legal and policy compliance.
- Consider Diverse Vendors: Identify qualified M/WBE, SDVOB, SBE, and other targeted suppliers.
- Document Vendor Selection & Price: Justify the chosen vendor and the reasonableness of the price.
- Ensure Vendor Responsibility: Document analysis of vendor responsibility.
- Adhere to Policies: Comply with internal policies and procedures.
- Maximize Competition: Seek vendor competition where possible.
Key Points for Discretionary Purchases:
- Price Reasonableness: Obtaining multiple quotes is recommended. Advertising in the Contract Reporter can help but is not mandatory. You may also justify prices by comparing costs to other government entities, historical prices, or OGS or Less pricing.
- Tax Law Compliance: Purchases over $100,000 must comply with Section 5-a of the Tax Law (refer to Tax Bulletin ST-118 for instructions and ST-220-CA form requirements).
Resources & Support:
Updated purchasing checklists and requirements charts are available on the BSC Website.
If you have questions regarding this communication, please contact the BSC at (518) 457-4272 or [email protected].
