Increased Bid Threshold

House Bill 863 Becomes Law House Bill 863 (HB63) was passed by the Georgia House and Senate and signed into law by the Governor to be effective July 1, HB863 raises the competitive bid threshold from $5, to $25, Applies to purchases of supplies, materials, equipment, or non-public works services which can reasonably be expected to be acquired for less than $25, and are not available on state contracts or through statutorily required sources This legislative change is expected to increase efficiencies in the purchasing process

Sunset Clause and Impact It should be noted that HB 863 has a sunset clause whereby it shall stand repealed on July 1, 2015, and on which date the competitive bid limit will revert to $5, Background and Impacts: Proponents of the bill expect an increase of purchasing with small businesses. We expect the legislature to inquire about trends in spend data to determine if raising the bid threshold resulted in spend with small and local businesses. UGA is implementing “sound business practices” as stewards of the State’s funds, to ensure monies are being spent prudently and that due diligence in purchasing decisions is occurring. Additionally, they assist with meeting federal requirements in specific purchasing situations, particularly in the area of $10, to $24,

SUMMARY OF NEW REQUIREMENTS AND SOUND BUSINESS PRACTICES PO Dollar Amount Documentation Required with Requisition Approval Process $0 to $9, None – may be purchased at the discretion of the end user using sound business practices. The internal comments or internal attachments portions of UGAmart are available for end users to insert comments and attach documentation if they elect to do so. PO will auto route to vendor or Procurement will release PO to vendor $10, to $24, Attach 3 quotes or justification for procuring without 3 quotes, i.e. Sole source, item only available from 2 distributors, etc. Procurement will review the requisition and documentation, obtain any additional forms required by federal requirements, and will release PO to vendor after all requirements satisfied $25, or greaterSpecifications for competitive bidding, sole brand justification if only one brand will meet the need, sole source justification if only one vendor can provide the item needed. Procurement will review the requisition and documentation, post according to State regulations, and will release PO to vendor after all requirements are satisfied.

IMPACT ON P-CARDS? It does not affect the p-card rules, policies and procedures, as a different law applies to p-card regulations. The maximum single transaction limit (STL) for p-cards remains $4,999. Please also remember there is a STL on each card which is approved by the cardholder’s department head; it is the responsibility of the cardholder to know the STL for his/her card, ensure it is not exceeded, and that split purchases are not made to avoid the STL.

IMPACT ON CHECK REQUESTS? Yes, there is an impact. Historically there has been a list of categories that were limited to a total cost of less than $5, and that limit is now increased to less than $10, for that category of check requests. The new threshold also allows for compliance with certain federal requirements. Refer to AskUGA Procurement Procedures, Check Requests available at

IMPACT ON STATEWIDE CONTRACT USE? Do I still need to purchase from a statewide contract if my purchase is less than $25,000.00? Yes, if the statewide contract is a mandatory contract. If you wish to pursue a waiver from a mandatory statewide contract, please contact the appropriate buyer in Procurement. If the statewide contract is a convenience contract, you may utilize the convenience contract or purchase from an alternate vendor. If you are paying a higher price than the convenience contract price, it is recommended that you include and retain justification for this action with the purchasing documentation.

QUESTIONS ? You may contact Procurement staff at You may questions to Remember, there is a “Frequently Asked Questions” document for your reference located at