1. (1) Application. In accordance with Code of Ala. 1975, §41-4-134 (Small Purchases), this Rule establishes $25,000 as the amount for supplies or services below which small purchase procedures may be used for procurements, except as otherwise provided in this Rule.
2. (2) Small Purchases Not Subject to Protest. Small purchases, as defined in this rule, are not subject to protest at any stage of the procurement process.

3. (3) Authority to Make Small Purchases.

   1. (a) Amount. The Office of the Chief Procurement Officer or a Purchasing Agency may use this Rule if the procurement is to be less than $25,000 for supplies or services. If these methods are not used, the other methods of source selection provided in Code of Ala. 1975, §41-4-131 (Methods of Source Selection) shall apply except as otherwise provided in this Rule.
   2. (b) Existing State Contract for Item. Supplies or services which may be obtained under current State contracts shall be procured under such agreements in accordance with the terms of such contracts. Further, supplies or services available from State stocks shall not be procured under this Rule. Operational procedures and contract terms may provide for waivers or exceptions to this Subsection.
   3. (c) Available from One Business Only. If the supply or service is available from only one business, the sole source procurement method set forth in Rule 355-4-3-.06 (Sole Source Procurement) of these Rules shall be used even if the procurement is a small purchase as specified in Subsection (2)(a) of this Rule.

4. (4) Competition for Small Purchases of Supplies or Services Between $5,000 and $25,000.

   1. (a) Procedure. For small purchases of supplies or services between $5,000 and $25,000, no less than three businesses shall be solicited to submit written quotations that are recorded, including the date and amount of each quotation, and placed in the procurement file. Award shall be made to the supplier offering the lowest acceptable quotation. Award factors to determine acceptability may include, but are not limited to, the qualities of the supplies or services proposed to be supplied, their conformity with specifications, the purposes for which the supplies or services are required, the terms of delivery, transportation charges, and delivery dates. Award factors shall be applied consistently across all quotations received for any particular solicitation.
5. (5) [Reserved.]
6. (6) Small Purchases of $5,000 or Less. The Chief Procurement Officer or the head of a Purchasing Agency shall adopt operational procedures for making small purchases of less than $5,000. Such operational procedures shall provide for keeping records to properly account for funds and to facilitate auditing of the Purchasing Agency.
7. (7) Procurement of Veterinary and/or Dental Services. Procurement of veterinary and/or dental services below $150,000 per provider shall be considered small purchases, shall not be aggregated for purposes of this Rule, and shall not be subject to the competition requirements in this Rule.
8. (8) Amendments to Small Purchases. For reasons not foreseeable at the time of the original procurement, contracts entered into under these Small Purchase procedures may be amended during the period of performance provided that the amendment is within the scope of the original contract and the overall cost of the original procurement plus the amendment does not exceed the original procurement's small purchase threshold by more than 20 percent. Any amendments resulting in a cost exceeding 120 percent of the original small purchase threshold must be approved in writing by the Chief Procurement Officer.

Author: Department of Finance, Legal Division

Statutory Authority: Code of Ala. 1975, §41-4-134.

Editor’s Note: Renumbered from 355-4-3-.04

History: New Rule: Published June 30, 2022; effective August 14, 2022; operative October 1, 2022. Amended: Filed January 19, 2023; Effective: May 15, 2023. Amended: Published January 31, 2025; effective March 17, 2025. Amended: Published March 31, 2026; effective May 15, 2026.