11—117.15(8A) Thresholds for delegating procurement authority.

1. 117.15(1)  Agency direct purchasing—basic level. An agency may procure non-master agreement goods costing not greater than $15,000 without competition.
2. 117.15(2)  Agency direct purchasing—advanced level. An agency may procure non-master agreement goods up to $50,000 per transaction in a competitive manner using either informal or formal competition provided the agency personnel engaged in the purchase of goods have completed enhanced procurement training established by the director or designee. If an informal process is chosen, the agency shall follow the process described in the definition of “informal competition” in rule 11—117.2(8A). The agency shall document the quotes, or circumstances resulting in fewer than three quotes, in an electronic file attached to the order or in another format.
3. 117.15(3)  Preference to targeted small businesses. Agencies shall search the TSB directory on the Iowa economic development authority’s website and may purchase a good or service directly from the TSB source if the cost is equal to or less than the spending limit set forth in paragraph 117.5(2)“a.” Agencies shall comply with the TSB notification requirements in subrule 117.8(2).

4. 117.15(4)  Misuse of agency authority.

   1. a. Purchasing authority delegated to agencies shall not be used to avoid the use of master agreements. The agency shall not break purchasing into smaller increments for the purpose of avoiding threshold requirements in subrule 117.5(2), 117.15(1) or 117.15(2).
   2. b. As a remedy, the department may recover administrative fees appropriate to the improper execution of procurement.
   3. c. This rule is not intended to prohibit agencies from aggressively seeking competitive prices. Agencies may purchase outside of master agreements under subrule 117.4(1).
   4. d. The department may rescind delegated authority of an agency that misuses its authority or uses the authority to procure goods or services already available on a master agreement.
   5. e. This rule does not prohibit agencies from dividing procurements into contract award units of economically feasible production runs to facilitate offers or bids from targeted small businesses consistent with subrule 117.5(2) and Iowa Code section 73.17(1).

[ARC 0952C, IAB 8/21/13, effective 9/25/13; ARC 1485C, IAB 6/11/14, effective 7/16/14; ARC 2036C, IAB 6/10/15, effective 7/15/15; ARC 2267C, IAB 11/25/15, effective 12/30/15; ARC 4182C, IAB 12/19/18, effective 1/23/19; ARC 4845C, IAB 1/1/20, effective 2/5/20; ARC 6263C, IAB 3/23/22, effective 4/27/22]