Procurement and Contracting Under AIP
Small Purchase Procurement
General
Small purchase procedures are those relatively simple and informal procurement methods for securing supplies, construction services, etc. that do not cost more than the “simplified acquisition threshold” as established in 41 U.S.C. 403 (11). This value is currently set at $100,000. Small purchase procedures provide public agencies with a more expedient method of procuring equipment and small construction projects.
Application of Small Purchase Procedures
When equipment and/or construction contracts are expected to be less than $100,000, the public agency may use small purchase procedures. Under small purchase procedures, the number of sources may be determined by the number of qualified sources available, the time frame involved, and the dollar value. 49 CFR 18.36(d)(1) states that an adequate number of qualified sources shall be obtained for small purchase procedures. Normally, this requires obtaining a minimum of two bid proposals. Additional proposals are warranted if additional qualified bidders are readily available.
Oral solicitations may be warranted for very small procurements. For other than very small purchases, a written solicitation should be initiated requesting a written proposal. All solicitations should be well documented. This includes vendors/companies that are not interested in the procurement.
On small purchase procedures involving construction work, a set of contract specifications and plans should be developed to clearly describe the technical requirements of the project. The grantee should note that Davis-Bacon provisions are required for construction work expected to exceed $2,000. The grantee should solicit a minimum of two bid quotes.
A/E Contracts
Sponsors shall not confuse the small purchase procurement procedures with the requirements for procurement of professional (A/E) services. The procurement of A/E services is not tied to the simplified acquisitions threshold ($100,000) noted above. All A/E services estimated to exceed $25,000 shall be procured by formal qualification-based procedures detailed in Architectural, Engineering, and Planning Consultant Services for Airport Grant Projects, AC 150/5100-14.
