Purchasing Thresholds

The Commonwealth Procurement Code provides many methods for procurement. These methods vary depending upon the nature of the procurement, the dollar amount, and what type of vendor will be used:

Small Purchases $1,500 & Under

• Many small purchases can be made using a purchasing card
• Most small purchases are made using a purchase order
• Legal counsel’s review is not generally required

Purchases $1,501 to $10,000

• Purchases are made using either a purchase order or a contract depending on the situation
• Three written quotes are required
• Legal counsel’s review and approval is necessary

Purchases Over $10,000

• Purchase Orders are used for purchases made against state contracts
• Purchases that are available from only one vendor require a Sole Source Contract
• All other purchases require competitive bidding. Invitations for Bids and Requests for Proposals are methods or acquiring bids/proposals from qualified vendors.
• Legal counsel and fiscal review and approval are required