Vendor Guide

Step 13 - Professional Services  Cont...

Monetary/ Purchasing Thresholds - Businesses

When competitive bidding is required, as it is in most cases, a school/ site must follow certain guidelines that are dictated by the monetary/ purchasing threshold of the purchase. Once the school/ site makes an estimate of how much a service will cost, the following monetary/ purchasing thresholds must be followed:

 

Monetary/Purchasing Thresholds
To Do
$250
or Less
$251
to
$5,000
$5,001
to
$25,000
$25,001
to
$100,000
Over
$100,000
  *Informal Solicitation Process  

Competitive bidding is not required.

x
       

Purchases made via a Purchase Order.

x
x
x
   

Solicit proposals via telephone, fax, etc. from at least three vendors.

 
x
     

Receive proposal responses from at least two vendors.

 
x
x
   

Solicit written proposals from at least three vendors.

   
x
   

Issue a Request For Proposal (RFP) See Below

     
x
x

Formally advertise in the City Record, and any additional publication.

     
x
x

Receive a written proposal response from one or more vendors.

     
x
x

Proposals must be sealed and
recorded at a scheduled public opening.

     
x
x

Prepare a resolution to the DOE.

       
x

Enter into a formal contract.

     
x
x


What is a Request For Proposal (RFP)?
The Request for Proposal (RFP) is one of the most traditional and effective ways of awarding contracts above certain monetary thresholds. If one of our schools or sites is interested in securing a professional service which will be greater than $25,000 you can be assured that they will use the RFP process. Basically, this process requires the schools/ sites to award a professional service contract only after a minimum number of professionals are contacted and asked to submit written proposals. In addition, a public advertisement must be issued.

An RFP can consider price plus other factors like experience, staffing and suitability for needs and may include negotiations on a fair and equal basis. The award should be the most advantageous to the school or site, which may not always be the lowest price, but is based on the evaluation criteria delineated in the RFP. The quality of the vendor's ser-vices and a reasonable price structure are also major determinants of an award.