Purchasing Dollar Thresholds

Procurement Cards are intended for low dollar, non-standard purchases when the needed goods or services are not available through ShopBlue. New York State procurement card guidelines require agencies to use PCards for purchases under $500 when the vendor accepts PCard payment. This helps avoid unnecessary supplier setup and supports a more efficient, cost effective payment process.

Start in ShopBlue. First, check whether the goods or services are available from a ShopBlue catalog or punchout supplier. If they are, use that supplier and separate quotes are not required. If the purchase is not available through a catalog or punchout, submit a non-catalog requisition. Quote and documentation requirements for non-catalog purchases are based on the purchase amount and funding source listed below. Refer to the next section to learn what is required to document reasonableness of price.

Depending on the dollar amount and funding source, attach:

• Quote, proposal, or product specification
• Documentation supporting reasonableness of price
• Sole or single source justification, if applicable
• Contract, agreement, statement of work, or supplier terms, if applicable
• Any required approvals or supporting documentation  (e.g. software review approvals)

Higher dollar purchases and contract renewals may require additional review, advertising, and approval steps. State funded transactions of $75,000 or more require Attorney General and Office of the State Comptroller for pre-approval, and New York State Contract Reporter advertising is required for state funded purchases of $150,000 or more.

Departments are encouraged to contact Purchasing early when renewing contracts, planning complex purchases, services, software, multi-year agreements, sole or single source requests, or purchases that may require extensive contract review.

When considering dollar thresholds for multi-year agreements or contracts, the total value over the full term of the agreement determines the dollar amount, not just the initial purchase or first year.

For example, a five year agreement at $20,000 per year would have a total value of $100,000 and fall within the $75,000 to $124,999 dollar threshold.

Sole or single source procurements may be used when competition is not reasible because the goods or services are available from only one supplier or from a limited number of suppliers. Written justification is required for state and Research Foundation-funded orders $50,000 and over, and UB Foundation-funded orders $10,000 and over.

Written justification must explain why the supplier was selected and why the price is reasonable. Pre-approval by Office of the State Comptroller is required for sole or single source state-funded purchases over $75,000. Contact Purchasing and Contract services early for guidance.

MWBE requirements may apply to state funded purchases over $25,000 for goods and services, and over $100,000 for construction related work. When MWBE goals are assigned, the supplier may be required to submit a utilization plan showing how those goals will be met. Contact Purchasing early for help identifying certified MWBE suppliers, confirming requirements, and documenting outreach or good faith efforts.

Revenue contracts over $25,000, such as revocable permits, facility use agreements, leases, service centers, or similar arrangements, require additional review and approval by the Office of the Attorney General and the Office of the State Comptroller. Competition should be used when practical. If competition is not used, the department must document the justification.