Purchasing Authority Basics - 100.1

Authority to Delegate Purchasing Authority

The delegation of purchasing authority for non-IT goods is governed by Public Contract Code (PCC), Sections 10308, 10309, 10331, 10332, 10333, and 10290.1* and 12100 for IT goods and services.

Purchasing Authority for transactions with the Prison Industry Authority (PIA) is authorized by PCC 10332(c) and Penal Code 2807.

*Includes non-IT services for LPA transactions.

Program Oversight

The Purchasing Authority Unit (PAU) within the DGS Procurement Division (PD) is responsible for oversight of the purchasing authority program on a statewide basis, including review and approval of purchasing authority applications, monitoring of departments granted purchasing authority, and increases to, as well as decreases to purchasing authority dollar thresholds.

PAU does not have oversight over:

• Acquisitions/transactions conducted by DGS/PD.
• Acquisitions/transactions conducted by or under the oversight of the California Department of Technology under the authority granted in PCC 12100 and 12120.
• Non-IT service acquisitions (except transactions executed under a Leveraged Procurement Agreement [LPA]).
• Departments with exemption status from DGS.

Must State Departments Have Purchasing Authority?

Unless stated otherwise in statute, state departments that are subject to DGS oversight and functioning without approved purchasing authority are prohibited from the following:

• Non-IT goods purchases exceeding $100.00 (PCC10308).
• IT goods and services of any dollar value, including IT Inter-Agency Agreements (IAA)
• Purchases made against any Leveraged Procurement Agreement.
• Participation in the CAL-Card Purchase Card Program.

State departments may conduct the following purchasing activities under other authorities (outside of DGS/PD purchasing authority):

• Non-IT goods under $100.00 (PCC 10308) (except those executed under a LPA).
• Telecommunications goods and services pursuant to PCC 12120.
• Non-IT services pursuant to SCM Volume 1.
• IT goods and services pursuant to PCC 12100 that are related to a reportable IT project, as defined by the State Administrative Manual (SAM) section 4800.
• Non-IT goods over $100.00 that are exempt from DGS oversight pursuant to specific laws and/or executive orders that exempt certain state departments and/or certain types of contracts from DGS/PD purchasing authority.

Exception: The Statewide Technology Procurement Division (STPD) at the California Department of Technology may utilize LPAs when conducting acquisitions on behalf of state departments for contracts related to a reportable IT project.  STPD does not need purchasing authority from DGS for use of LPAs pursuant to PCC 12100 et seq.

State Departments with Purchasing Authority

Click here to access the Purchasing Authority Approval Letters (PAALs) for state departments with approved purchasing authority.

Purchasing Authority (PA) Number

The PA number is assigned upon approval of the Purchasing Authority Application (PAA) by the PAU. This number will remain unchanged unless circumstances warrant a change (such as a reorganization or consolidation of departments).

When is the PA Number Used?

The purchasing authority profile that is maintained by the PAU will identify the PA number for each state department as well as the authorized purchasing authority acquisition methods and dollar thresholds associated with each PA number.  The PA number needs to be entered in the “comments” field of the Purchase Order when a procurement is done under delegated Purchasing Authority.

Purchasing Authority Reviews

Pursuant to PCC 10331, purchasing authority granted to state agencies are subject to annual review by DGS/PD.  In addition to DGS/PD’s review, departments are subject to audits pursuant to PCC 10333 (b) which is conducted by DGS Office of Audit Services (OAS).

The Purchasing Authority Unit (PAU) will conduct reviews of purchasing authority granted to state departments based on a schedule prepared by the PAU.  This schedule will complement the DGS/Office of Audit Services’ (OAS) audit schedule so that the audit and Purchasing Authority Review are not conducted at or near the same timeframe.  This will also give ample time for state departments to make necessary corrections to audit findings prior to the PAU review. PAU review schedules are subject to change. If this occurs, departments will be notified at least 60 days in advance.

PAU will not conduct reviews during the months of May, June, and July due to heavy workload at state departments during these months. Additionally, reviews will not occur during November or December due to holiday schedules.

PAU will utilize the assessment tool to conduct the Purchasing Authority Review.

Rescission or Reduction of Purchasing Authority

DGS/PD reserves the right to rescind or reduce any purchasing authority at any time.

Contact PAU

After seeking guidance internally, such as contacting either a  Procurement and Contracting Officer (PCO) or a Purchasing Authority Contact (PAC), contact the PAU for assistance regarding any aspect of purchasing authority and/or any purchasing activities authorized under purchasing authority granted by DGS/PD PAU.

Questions may be electronically mailed to the PAU at pams@dgs.ca.gov.

This mailbox is monitored daily and a response can be expected within 24 hours or a reasonable amount of time to provide a detailed response to the submitted question.