Limit to Brand or Trade Name Contracts - 1407

LTB Contracting

Limit To Brand (LTB) contracts are limited by statute, in accordance with Public Contract Code, Section 12102(b) for IT Goods and Sections 10301 and 10302 for Non-IT Goods, to the following circumstances:

Emergencies, where immediate acquisition is necessary to prevent or mitigate the loss or impairment of life, health, property, or essential public services. Refer to Emergency Purchases for more details.
The contracting agency and DGS agree that the proposed acquisition of goods meets the state’s need.

$25,000.00 LTB Justification Purchasing Authority Dollar Threshold

A department’s LTB justification purchasing authority dollar threshold will be authorized a maximum of $25,000.00 per transaction, excluding sales and use tax, finance charges, postage, and handling. Shipping charges are also excluded from the dollar threshold limits unless the shipping charge is included in the evaluation such as FOB Origin, Freight Collected, or FOB Destination.

LTB Statement

The LTB Statement (GSPD-08-001) is used for the purchase of goods of a particular brand or trade name or other specifications which have the effect of limiting bidding to one specified brand or trade name where a department has determined that for a specific category of goods there are unique performance factors necessary to achieve a department’s program objectives. An LTB solicitation requires more than one supplier. If there is only one known supplier, an NCB justification must be used to justify the purchase.

Acquisitions requiring LTB

An LTB Statement/Justification is required for all competitive solicitations (formal and informal) and the SB Option or DVBE Option when a department believes that a product of a specified brand or trade name is the only product that will properly meet their need.

Existing proprietary software does not require an LTB justification.

LTB Statement/Justification Documents

Departments must use the LTB Statement (GSPD-08-001) when submitting a LTB request to DGS.

Signature Authority

LTB Statement/Justifications requires Procurement and Contracting Officer signatures, regardless of whether or not the justification is submitted to DGS/PD for approval.

LTB signature/approval authority may not be delegated further than the next highest-ranking official.

LTB Contract Process

The following chart describes the LTB Contract Statement process for goods.

STAGE	WHO	DOES WHAT
1	Department	Determines a need to acquire a specified brand or trade name product. Completes an LTB Statement (GSPD-08-001) Justification form, securing approvals from the department Procurement and Contracting Officer or next highest-ranking official.
2	Department	Creates the purchase package as follows: If the purchase: Is within the department’s LTB Justification purchasing authority dollar threshold and the department’s approved competitive purchasing authority. Then the department: Retains the approved LTB Statement within the procurement file Conducts a competitive solicitation restricting to brand name or trade name Executes the purchase order If the purchase: Exceeds the department’s LTB Justification purchasing authority dollar threshold but is within the department’s approved competitive purchasing authority. Then the department: Submits the LTB Statement/Justification DGS/PD for review and approval. Since this purchase is within the department’s approved purchasing authority, once the LTB Statement/Justification is approved, DGS/PD will send it back to the department to conduct the procurement. If the purchase: Exceeds both the department’s LTB Justification contract purchasing authority dollar threshold and the department’s approved competitive purchasing authority. Then the department: Submits the LTB Statement/Justification to DGS/PD for review, approval. If the purchase: Is requested by a department without goods and/or services purchasing authority. Then the department: Attaches the LTB Statement/Justification to a requisition to DGS/PD.
3	DGS/PD	Processes the transaction as follows: If the purchase: Exceeds the department’s LTB Justification purchasing authority dollar threshold, but is within the department’s approved competitive purchasing authority. Then the department Reviews and approves, or denies the LTB Statement/Justification. If approved, returns LTB Statement to the department for processing. If denied, returns LTB Statement/Justification to the department advising them to conduct a competitive solicitation not restricting the solicitation to a brand or trade name. If the purchase: Exceeds both the department's LTB Justification purchasing authority dollar threshold and the department’s approved competitive purchasing authority. Then the department: Reviews and approves or denies the LTB Statement and department’s requisition. If approved, conducts the appropriate procurement method and executes a purchase document on behalf of the department. If denied, conducts a competitive solicitation not restrictive to trade name or brand and executes a purchase document on behalf of the department or cancels the request if directed by the department. If the purchase: Requested by a department without purchasing authority non-IT goods or IT goods and/or services. Then the department: Reviews and approves or denies the LTB Statement/Justification and department’s requisition. If approved, conducts the appropriate procurement method and executes a purchase on behalf of the department. If denied, conducts a competitive solicitation without restricting to a specified brand or trade name, and executes a purchase document on behalf of the department or cancels the request if directed by the department.
4	Department or DGS/PD	Executes purchase document upon DGS/PD approval. If the LTB Statement/Justification is denied, the department may not limit the competitive bidding to the specified brand or trade name. The department will need to conduct a competitive solicitation.

File Documentation Checklist Recommended

Completion and inclusion of the File Documentation Checklist is recommended.

Revisions

No Revisions for this item.