PBS announces increase in bid threshold

Procurement and Business Services is excited to announce that, due to recent changes in Alabama Bid Law, Auburn University’s threshold for competitive bids has been increased from $15,000 to $75,000.  This change is effective immediately, and will greatly alleviate the administrative burden on university stakeholders by avoiding the constraints of the bid process, allowing greater flexibility and user-preference in product selection, and eliminating the requirement of a sole source justification for many requisitions. 

How does this change the procurement process? For acquisitions between $15,000.00 and $74,999.99, purchasers will obtain three quotes for comparable goods or services, issue a requisition in favor of the lowest-cost supplier, and attach the quotes as backup to the requisition.  Purchasers can provide a response deadline for each quote, and a supplier’s failure to meet that deadline will count toward the quote requirement; please note any such quote requests in the comments section of the requisition.  For instances where only one product or service can meet the end-user’s need, or where utilizing the low-cost option is not institutionally prudent, the purchaser must provide a Due Diligence Statement in the comments section of the requisition, explaining how the acquisition of the product or service from the selected supplier is in the best interest of the university.  Narrative descriptions need not reach the level of detail required for a Sole Source Justification, but must include sufficient information for an independent auditor to understand the basis for the purchase.  Purchases from preferred vendors, state contracts, eligible cooperative contracts, and Professional Services Contracts will not require multiple quotes or a Due Diligence Statement, regardless of cost.    Please note that the Purchase Order threshold of $5,000.00 remains unchanged, and - in accordance with statutory changes - contracts that are awarded utilizing a sole source justification are now limited to a term of one year.  Please contact Procurement and Business Services with any additional questions.