Changes to Purchasing Authority - 100.8

General

The Purchasing Authority Change Request (PACR) is completed by departments that currently have purchasing authority and seek to change one of the following:

• Increase to dollar threshold(s).
• Change or update the Procurement and Contracting Officer (PCO) and/or Purchasing Authority Contacts (PAC) information.
• Add a "Secondary" department or changes to a "Secondary" department's information such as PCO designation or updates to contact information.

When Must a PACR Be Submitted?

Increases to purchasing authority dollar thresholds can be submitted any time for certain Transaction Based Increase Requests and not more frequently than annually for General Increase Requests.

Departments must submit a PACR within 30 days when:

• Designating a new Procurement & Contracting Officer (PCO).
• Changing any of the PCO's information.
• Designating a new Purchasing Authority Contact (PAC).
• Changing any of the PAC's information.
• A Secondary Department designates a new PCO or any of their PCO information changes.

Requesting authority to conduct acquisitions on behalf of another state department can be submitted at any time.

Requesting an Increase to Purchasing Authority

Departments interested in requesting an increase in their purchasing authority dollar threshold(s) may request an increase by completing and submitting a Purchasing Authority Change Request to the Purchasing Authority Unit (PAU) at pams@dgs.ca.gov.

Two types of increases are available:

1. General Increase

• This is an increase in purchasing authority for a specific category (i.e. "Competitive")
• Once an increase is granted, it must remain for a minimum of three years before another increase request will be considered.

2. Transaction-Based Increase

• This is a one-time increase for a single transaction/acquisition.
• "Transaction-Based" increases may be requested at any time.
• Transaction-Based increases will not be accepted in instances where the dollar threshold requested is in the "formal" range and where the current purchasing authority is in the "informal" range.

The department's purchasing authority must be in good standing to be considered for an increase. In good standing means that the department is reporting as required, does not have unresolved, severe, or continuous deficiencies, and has procurement policy and procedures that have been approved by the PAU. Additional requirements apply for General increase requests (i.e. additional staff, training, etc.) and for high dollar value Transaction-Based increase requests (i.e. department's internal legal counsel review).

Conditions and Differences for Increase Requests

If the department's purchasing authority is in good standing, there are three things a department must fulfill to be considered for an increase. It is recommended that the department discuss PACR requests with their assigned Purchasing Authority Analyst prior to completing the PACR.

1. Ask. Requests must be submitted utilizing the Purchasing Authority Change Request (PACR) form prior to advertising and/or release of the solicitation to suppliers. Requesting an increase typically adds time to the acquisition process due to the oversight required to determine eligibility and capability; departments must allow ample time.
2. Qualify. The PAU will conduct an initial inspection of the request utilizing information received from the department via the PACR and criteria found in the PACR Assessment. The following are key factors of consideration:

• Is the request complete and signed by the PCO?
• Is the department's purchasing authority in good standing?
• Is the department a good candidate (past performance and staffing are main factors)? For example, if a department's organizational structure/staffing does not support procurement professionals with expertise and training to conduct certain high dollar value acquisitions, they may not be granted an increase. In these cases, it is most efficient and in the best interest of the State to submit the request to PD One Time Acquisitions (OTA) to purchase on behalf of the department rather than request an increase in purchasing authority.
• Has the department buying staff completed relevant and/or required training for the requested acquisition method?
• Does the department have the expertise, experience, knowledge, and internal procurement policies and procedures to support the type(s), category, and dollar threshold limits of authority requested?
• Does the acquisition method for the requested increase make good business sense and offer a sufficient level of competition? (Specific to Transaction Based Request)

3. Demonstrate. Once the initial assessment is completed, and it is determined that the request may move forward, the PAU will ask the department to demonstrate their ability to conduct an acquisition at the requested dollar threshold.

TRANSACTION BASED INCREASE REQUEST

*If the PAU determines that documentation of a recent acquisition sufficiently demonstrated that the agency is capable of conducting an acquisition utilizing the requested acquisition method and at the requested dollar value, the PAU reserves the right to waive some or all of the oversight steps noted below for transaction based increase requests.

Oversight Method - The agency will demonstrate capability by conducting the acquisition under PAU oversight. Internal PD and PAU procedures may involve oversight by another unit within PD such as the Multiple Awards Program Section (MAPS) for certain transactions executed under contracts that are managed by MAPS. Although another area in PD may be involved in the oversight process, the ultimate authority to increase purchasing authority is with PAU.

Key components of the oversight review include the review and approval of the following:

Step 1: The solicitation document, any changes, addenda, Q&As, etc. (PAU must approve prior to advertising and/or release to suppliers. The PAU will work with PD's Engineering Unit to seek approval of the specifications and evaluation criteria). PAU will verify competition was achieved, CMAS min # of suppliers participated, SB/DVBE, etc. before evaluation.

Step 2: The Evaluation and Selection Report or other documentation showing how the bids/offers were evaluated (PAU must approve prior to award).

Step 3: The final contract/agreement (PAU must approve prior to the start date and prior to the department executing the contract under their delegated purchasing authority).

GENERAL INCREASE REQUEST

Demonstration of capability may include one of two methods:

1. Oversight Method - The department will conduct two acquisitions under PAU oversight as outlined in the left column.

This method is applied when requesting an increase from the "informal" to "formal" range and can also be used to increase to a higher dollar value within the "informal" range.

OR

2. Audit Method: The department will provide two copies of complete procurement files for acquisitions that are comparable in dollar value (transactions must be within 20% of the existing purchasing authority delegation) and within the same purchasing authority category as the requested increase. These acquisitions must have been completed within the last twelve months. PAU will audit the files and provide findings to the department. If significant findings exist, the increase will not be granted.

The audit method is not used when a department is requesting an increase in "Competitive" purchasing authority from the "informal" to "formal" range.

PD professionals will mentor buyers, document performance, and provide a performance assessment to the department.

All approved transaction based increase request PACRs must be maintained in the department's procurement file.

Contact PAU to access the PACR and the PACR Assessment.