STATE ADMINISTRATIVE MANUAL …

STATE ADMINISTRATIVE MANUAL
                                                                                NUMBER:

MANAGEMENT MEMO
SUBJECT:
                                                                                MM 08-05
                                                                                DATE ISSUED:
INCREASES TO THE DOLLAR THRESHOLD LEVELS FOR                                    APRIL 22, 2008
CONDUCTING INFORMAL SOLICITATIONS AND FOR USING                                 EXPIRES:
SPECIFIC LEVERAGED PROCUREMENT AGREEMENTS                                       UNTIL RESCINDED
REFERENCES:                                                                     ISSUING AGENCY:
Public Contract Code 10301, 12102, 10290.1, 12101.5 and                         DEPARTMENT OF
Government Code 14600                                                           GENERAL SERVICES
SUPERSEDES MM 07-10


PURPOSE                 The purpose of this Management Memo is to notify State departments that, in
                        accordance with the Public Contract Code (PCC), the Director of the Department
                        of General Services (DGS) has increased the dollar threshold levels at which
                        departments may:

                        ·     Use the informal solicitation to purchase non-information technology (non-IT)
                              goods and information technology (IT) goods and services.

                        ·     Purchase goods and services from specific Leveraged Procurement
                              Agreement (LPA) sub-categories contained in this memo.

                        __________________________________________________________________

INFORMAL                The new dollar threshold levels available to departments for conducting informal
SOLICITATIONS           solicitations have been increased as follows:
AND APPROVAL
                                      Type                    Prior Threshold              New Threshold
REQUIRED FOR
                            Non-IT Goods                          $50,000                    $100,000
PURCHASING                  IT Goods and Services                $500,000                   $1,000,000
AUTHORITY
                        This increase is not automatic and departments must apply for DGS approval to
                        obtain the competitive purchasing authority to conduct informal solicitations up to
                        the new dollar threshold levels listed above.

                        __________________________________________________________________




                                                 STATE of CALIFORNIA
GS MM (REVISED 10/07)
STATE ADMINISTRATIVE MANUAL


LEVERAGED               The new LPA sub-category dollar threshold levels available to departments have
                        been increased as follows:
PROCUREMENT
AGREEMENTS                        Sub-Categories                         Types       Prior        New
AND APPROVAL             Software License Program (SLP)              IT Goods and
REQUIRED FOR                                                                        $500,000   $2,000,000
                                                                        Services
PURCHASING                                                           Non-IT Goods   $25,000    $100,000
AUTHORITY                State Price Schedule (SPS)                  IT Goods and
                                                                        Services    $25,000    $100,000
                         Master Agreements
                           Cooperative Agreements                 IT Goods and
                           (WSCA, NASPO, etc.)                                      $500,000   Unlimited
                                                                     Services
                           Master Service Agreements             Non-IT Services    $250,000   $500,000
                           (MSA)                                  IT Goods and
                                                                                    $500,000   $1,500,000
                                                                     Services

                        This increase is automatic for those departments with current approved LPA
                        purchasing authority.

                        This increase is not automatic for departments without current approved LPA
                        purchasing authority. These departments must apply for DGS approval to obtain
                        the LPA purchasing authority to conduct purchases at the new dollar threshold
                        levels listed above.

                        __________________________________________________________________

QUESTIONS               For questions regarding purchasing authority and dollar threshold information
                        discussed in this management memo, please contact the DGS/PD's Purchasing
                        Authority Management Section at: pams@dgs.ca.gov.

                        For policy questions regarding issues discussed in this management memo,
                        please contact the DGS/PD's Policies and Procedures Office at: ppo@dgs.ca.gov.

                        For additional information about informal solicitations and delegated purchasing
                        authority, see the State Contracting Manual (SCM), Volume 2 and Volume 3 at
                        http://www.pd.dgs.ca.gov/polproc/default.htm.

                        _________________________________________________________________

SIGNATURE               Original signed by Will Bush, Director


                        _________________________________
                        Will Bush, Director
                        Department of General Services




                                               STATE of CALIFORNIA
GS MM (REVISED 10/07)