Purchasing Manual

Complete Purchasing Manual

Preface

THE PRIMARY PURPOSE OF THIS MANUAL IS TO OUTLINE THE POLICIES AND PROCEDURES OF PROCUREMENT FOR THE DEPARTMENT OF TRANSPORTATION. IT IS INTENDED TO SERVE AS A GENERAL GUIDE AND NOT TO COVER EVERY DETAIL OR QUESTION THAT MAY ARISE. THE PURCHASING SECTION OF THE DEPARTMENT OF TRANSPORTATION SHOULD BE CONTACTED WHENEVER QUESTIONS THAT CONCERN POLICIES OR PROCEDURES IN PROCUREMENT CAN NOT BE ANSWERED BY REFERRING TO THIS MANUAL.

Purchasing Overview

THE PURCHASING SECTION OF THE DEPARTMENT OF TRANSPORTATION REPORTS TO THE CHIEF FINANCIAL OFFICER AND HAS THE AUTHORITY AND RESPONSIBILITY OF OBTAINING ALL COMMODITIES NECESSARY FOR THE OPERATION AND MAINTENANCE OF THE DEPARTMENT OF TRANSPORTATION. BY HAVING A PURCHASING SECTION, THE DEPARTMENT CAN OBTAIN MORE FAVORABLE PRICING ON ALL COMMODITIES MEETING THE DEPARTMENT'S SPECIFICATIONS AND THUS USE AVAILABLE FUNDING MORE EFFICIENTLY. ALL NORTH CAROLINA GOVERNMENT PURCHASING PROGRAMS USE COMPETITIVE BIDDING AND THUS IS THE MAIN OBJECTIVE OF THIS SECTION. THIS SECTION HAS TO BE ESPECIALLY CAREFUL TO OBTAIN PUBLIC PRICING WITHOUT FAVORITISM.

Statutory Authority

THIS MANUAL IS INTENDED TO PROVIDE PURCHASERS WITH ALL THE LAWS AND RULES THAT MUST BE FOLLOWED IN CARRYING OUT THE RESPONSIBILITIES OF THE PURCHASERS FOR THE DEPARTMENT OF TRANSPORTATION. IT APPLIES TO THE ACQUISITION OF ALL EQUIPMENT, MATERIALS, SUPPLIES, PRINTING, AND SERVICES THROUGH OUTRIGHT PURCHASE, RENTAL, LEASE, AND LEASE PURCHASE.

ALL PURCHASERS FOR THE DEPARTMENT OF TRANSPORTATION SHOULD BE FAMILIAR WITH THE NORTH CAROLINA ADMINISTRATIVE CODE AND CHAPTERS 136 AND 143 OF THE GENERAL STATUTES TO PROVIDE THEM WITH THE RESOURCES NEEDED TO INSURE THEY MEET ALL THE REQUIREMENTS IN CONDUCTING THEIR DAY TO DAY PURCHASING ACTIVITIES. COPIES OF THESE PUBLICATIONS ARE MADE A PART OF THIS MANUAL.

Ethics

ETHICS AND ETHICAL PRACTICES ARE A MAJOR CONCERN IN THE REALM OF PUBLIC PURCHASING TODAY. WHILE LAWS AND RULES MESH TO PROVIDE A MECHANISM FOR PUBLIC PURCHASING, ONLY PEOPLE CAN MAKE IT WORK. IN PURCHASING, AS IN ALL FIELDS, THERE ARE VALUES OF PRIDE AND WORTH, THERE ARE STANDARDS AND IDEALS, AND THERE ARE SPECIFICS OF CONDUCT AND PERFORMANCES. IMPEDIMENTS TO THE PROCESS MUST BE DETECTED EARLY AND SAFEGUARDS PROVIDED AT ALL LEVELS. THIS APPLIES BOTH TO PURCHASING PERSONNEL AND THE VENDOR COMMUNITY. PURCHASING PERSONNEL MUST NOT EXERT OR ATTEMPT TO EXERT INFLUENCE TO OBTAIN "SPECIAL TREATMENT" FOR A VENDOR OR FROM A VENDOR.

NCDOT ETHICS POLICY

IT BECOMES IMPERATIVE, THEREFORE, THAT ALL PURCHASING PERSONNEL BE ENTIRELY COGNIZANT OF ALL THE NECESSITY FOR ETHICAL BEHAVIOR. IT TAKES ONLY THE SLIGHTEST HINT OF IMPROPRIETY TO CAST DOUBT ON BEHAVIOR. SOMETIMES, IT MAY BE EVEN MORE OF A PERCEPTION THAN AN ACTUAL EVENT.

Integrity

FAIRNESS AND IMPARTIALITY IN ALL PHASES OF THE PROCESS ARE AN ESSENTIAL INGREDIENT IN PUBLIC PURCHASING. DEALINGS WITH VENDORS AND PEERS MUST BE OPEN, HONEST, AND OBJECTIVE. LIKE ALL SERVICE FUNCTIONS, PURCHASING'S JUSTIFICATION IS THE QUALITY OF THE SERVICE IT RENDERS. THE PROCESS CANNOT BE BOTH EFFECTIVE AND SELF-SERVING, THE TWO ARE INCOMPATIBLE. IN THE CASE OF PUBLIC PURCHASING, UTMOST FAIRNESS IS REQUIRED IN EXPENDING PUBLIC FUNDS. THE RESULT OF FAVORITISM EXTENDED TO EITHER A USER OR SELLER IS THE SAME. THE PRACTICE IS NOT PERMISSIBLE. NO MATTER HOW STRONGLY A USER MAY PREFER A PARTICULAR PRODUCT OVER OTHERS, EQUIVALENT PRODUCTS MUST BE GIVEN EVERY REASONABLE CONSIDERATION. WE MUST COMMIT AND ADHERE TO FAIR AND OPEN COMPETITION. INTEGRITY IS A PRINCIPAL STOCK IN TRADE FOR THE PUBLIC PURCHASER. INTEGRITY IS MANIFESTED BY FAIRNESS, OPENNESS, AND IMPARTIALITY AND CAN BE TARNISHED BY EVEN THE SLIGHTEST APPEARANCE OF IMPROPRIETY. ONCE THIS OCCURS, IT IS VERY DIFFICULT TO REGAIN.

Definitions

This Section lists the applicable definitions for Purchasing procedures:

AGENCY SPECIFIC TERM CONTRACT: A Term Contract for the use by a specified agency. Depending on the dollar value of the contract, it may be handled by P&C or NCDOT Purchasing.
BEST VALUE PROCUREMENT: The terminology used to identify the method required for Purchasing Information Technology commodities and service.
COMMODITIES: Any equipment, materials, or supplies. Also, referred to separately in this manual as goods and items.
COMPETITION: The fair and open solicitation of offers from more than one source. The receipt of offers from more than one source. It must be reasonable and adequate for the amount of the expenditure and the specific requirement.
CONSULTANT CONTRACTS: Work or task performed by NCDOT employees or independent contractors possessing knowledge, experience, expertise and professional qualifications to investigate assigned problems or projects and to provide counsel, review, analysis or advice in formulating or implementing improvements in programs or services. This includes but, is not limited to, the organization, Planning, directing, control, evaluation of a program, agency, or department.
CONTRACTUAL SERVICES: When an independend contractor performs services requiring sqecialized knowledge, experience, expertise or similar capabilities for a State Agency for compensation from Agency funds. The services may include (by way of illustration, not limitation) services such as, maintenance of buildings or equipment, auditing, film production, employee training and food service, provided that the service is not primarily for review, analysis or advice in formulating or implementing improvements in programs or services (in which case rules relating to consultant contracts shall be applicable).
EMERGENCY: A situation which endangers lives, property, or the continaution of a vital program and which can be rectified only by immediate on-the-spot purchase (or rental) of equipment, supplies, materials, printing, or contractual services.
HUB: any one of the following:

A Minority-Owned Business
A Female-Owned Business
A Disabled-Owned Business
A Disabled Business Enterprise
A Non-Profit workshop for the blind or severely disabled

INFORMATION TECHNOLOGY (IT): Electronic data processing goods and services and telecommunications goods and services, microprocessors, software, information processing, office systems, any services related to the foregoing, and consulting or other services for design or redesign of information technology supporting business processes.
INVITATION FOR BIDS: A solicitation document. This document or RFP is required to be used for competitive procurements over $25,000.00. Normally used for larger, advertised competitive procurement for commodities.
LEASE: A Contract conveying from one to another use of a commodity for a designated period of time in return for established periodic payments. Does not contain an option nor an obligation to Purchase.
NEGOTIATION: The Act of making a purchase; when all offers have been rejected, or when there is justification for waving the competitive process, or when an emergengy or pressing need arises.
OFFER: This term may refer to a proposal, quote, or bid submitted in response to a request for proposal, request for quotations, invitation for bids, or negotiation.
OFFEROR: Company, firm, corporation, partnership, individual, ets., submitting a response to a solicitation document or in response to a negotiation.
OPEN MARKET CONTRACT: A contract for the purpose of a commodity or contractual service not covered by a term contract.
PERSONAL SERVICE: Services provided by a professional individual (person) on a temporary basis, including (by way of illustration, not limitation) those provided by a doctor, dentist, attorney, architect, professional engineer, scientist performer of the fine arts and similar professions: the exemption applies only if the individual is using professional skills to perform a professional task; a personal service may also be a consultant service, in which case consultant contracting procedures shall be followed.
PRESSING NEED: A need arising from unforeseen cases including, but not limited to, delay by contractors, delay in transportation, breakdown in machinery, or unanticipated volume of work, and which can be rectified only by immediate on-the-spot purchase (or rental) of equipment, supplies, materials, printing, or contractual services.
PURCHASE: The solicitation of, and acceptance, an offer to (1) provide a service, or (2) lease or rent a commodity, or (3) sell a commodity outright, or (4) sell a commodity through a lease purchase or installment contract.
REQUEST FOR PROPOSALS: A solicitation document. This document or the IFB is required to be used for competitive procurements over $25,000.00. Normally used for larger, advertised competitive procurements for services. It is an alternate acquisition method to the IFB. An RFP may also be handled as a two step process.
REQUEST FOR QUOTES: A solicitation document, normally used for smaller competitive procurements.
SOLE SOURCE: When an item or service is available from only one known source.
STATEWIDE TERM CONTRACT: A term contract handled by P&C for all agencies, unless exempted by statute, rule, or special term and condition specific to that contract.
TERM CONTRACT: A contract generally intended to cover all normal requirements for a commodity or contractual service for a specified period of time based on estimated quantities only. Sometimes referred to as "Requirements Contract or "Indefinite Quantity Contract".

Delegations

NON IT PROCUREMENT

THE STATE PURCHASING OFFICER HAS AUTHORIZED A DOLLAR LIMIT (DELEGATION/BENCHMARK) OF $25,000.00 TO THE DEPARTMENT OF TRANSPORTATION FOR PURCHASES OF COMMODITIES, PRINTING, AND SERVICES.
WHEN THE DOLLAR AMOUNT OF THE EXPENDITURE IS UNDER THE GENERAL DELEGATION, PURCHASING IS AUTHORIZED TO ACQUIRE COMMODITIES, PRINTING AND CONTRACTUAL SERVICES, BY PURCHASE, RENT, LEASE, LEASE PURCHASE, OR INSTALLMENT PURCHASE, SUBJECT TO THE FOLLOWING RULES.

ALL COMMODITIES AND CONTRACTUAL SERVICES COVERED BY TERM CONTRACTS MUST BE PURCHASED IN ACCORDANCE WITH THE INSTRUCTIONS OF THOSE CONTRACTS.
THE PURCHASING OFFICER OF THE DEPARTMENT OF TRANSPORTATION SHALL SET FORTH, IN WRITING, PURCHASING PROCEDURES FOR MAKING SMALL PURCHASES.
PURCHASERS MUST BE SURE THEY DO NOT EXCEED THE AUTHORIZED DELEGATION. IT IS NOT PERMISSIBLE TO DIVIDE THE REQUIREMENTS TO AVOID THE NORMAL BID PROCESS.
AWARDING OF CONTRACTS, WHICH ARE UNDER THE AUTHORIZED DELEGATION, SHALL BE THE RESPONSIBILITY OF THE PURCHASER.
AN INFORMAL BID WOULD BE ISSUED FOR PROCUREMENTS NOT AVAILABLE ON A STATE TERM CONTRACT AND ARE OVER $5,000 UP TO $10,000. AN INFORMAL BID DOCUMENT, SUCH AS AN RFQ, WITHIN THIS DOLLAR RANGE MAY BE ISSUED BY MAIL, EMAIL, OR ADVERTISED VIA THE STATE'S IPS WEB SITE AND/OR OTHER MEANS OF ADVERTISEMENT.
FORMAL BIDS SHOULD BE ISSUED FOR PROCUREMENTS OVER $10,000. ACCORDING TO O1 NCAC 05B.0301 (b), AGENCIES AND UNIVERSITIES SHALL ADVERTISE THEIR SOLICITATIONS THROUGH THE IPS SYSTEM: FOR THE FOLLOWING PURCHASES: (i) AGENCIES: FOR PURCHASES INVOLVING AN EXPENDITURE OF PUBLIC FUNDS EXCEEDING TEN THOUSAND DOLLARS ($10,000), UP TO THE GENERAL DELEGATION OF $25,000 UNDER THE PROVISIONS OF G.S. 143-53(a)(2). SOLICITATIONS OVER THE GENERAL DELEGATION OF $25,000 MUST BE SENT THROUGH DIVISION OF PURCHASE AND CONTRACT.
NCAC 05B.0312 - LACK OF COMPETITION, OF THE ADMINISTRATIVE CODE STATES WHERE ONLY A SINGLE OFFER OR A SINGLE ACCEPTABLE OFFER IS RECEIVED, OR, OTHERWISE, WHERE REASONABLE AND AVAILABLE COMPETITION IS NOT OBTAINED, THE REASON SHALL BE ASCERTAINED AND MADE A MATTER OF RECORD.
PER 01 NCAC 05B.0316 - ADVERTISEMENT REQUIREMENTS, UNLESS ALREADY REQUIRED BY STATUTE, ALL ADVERTISEMENTS REQUIRED BY RULE SHALL BE THROUGH THE DIVISION OF PURCHASE & CONTRACT VIA THE DIVISION'S HOME PAGE ON THE INTERNET. IF ADVERTISEMENT IS REQUIRED BY RULE, THE SOLICITATION SHALL BE ADVERTISED AT LEAST ONCE AND AT LEAST 10 DAYS PRIOR TO THE DATE DESIGNATED FOR OPENING.

IT PROCUREMENT

THE STATE CHEIF INFOMRATION OFFICE (CIO) WILL ESTABLISH THE GENERAL IT DELEGATION FOR EACH AGENCY, CURRENTLY SET AT $25,000. THE GENERAL DELEGATION ESTABLISHES THE MAXIMUM AUTHORIZED DOLLAR LIMITS FOR IT PURCHASES OF GOODS FOR AN AGENCY WITHOUT ITS INPUT. THE CIO MAY DECREASE OR INCREASE THE DELEGATION AMOUNT, UP TO THE IT BENCHMARK, BASED IPON THEIR MERIT AND CONFORMANCE TO IT PROCUDURES. AWARDING OF CONTRACTS UNDER THE GENERAL DELEGATION SHALL BE THE RESPONSIBILITY OF THE AGENCY. SEE THE FOLLOWING PRECEDURES FOR PROCUREMENTS THAT EXCEED THE IT DELEGATION AMOUNT. PROCUREMENT OF IT SERVICES ABOVE THE DELEGATION MUST BE REVIEWED BY ITS PRIOR TO SOLICITATION AND AGAIN PRIOR TO AWARDING THE CONTRACT. PROCUREMENT OF IT GOODS ABOVE THE DELEGATION MUST BE HANDLED BY ITS.
THE CIO HAS ESTABLISHED THE IT BENCHMARK AT $100,000. WHEN THE DOLLAR AMOUNT OF ANY IT PROCUREMENT FOR GOODS EXCEEDS THE BENCHMARD, ITS WILL SUBMIT THE PROCUREMENT PACKAGE, FROM REQUEST THROUGH AND INCLUDING THE RECOMMENDED AWARD, TO THE BOARD OF AWARDS.
INITIAL SERVCIE CONTRACT AWARD CANNOT EXCEED $25,000 WITHOUT CIO APPROVAL. SERVICE CONTRACTS CANNOT EXCEED THREE (3) YEARS DURATION INCLUDING OPTIONAL EXTENSIONS AND RENEWALS, UNLESS THE CIO OR DESIGNEE HAS DETERMINED THAT IT IS ADVANTAGEOUS TO THE STATE AND AUTHORIZES IT.

Special Delegations

REPAIRS (NON CONSTRUCTION): PURCHASING AUTHORITY FOR REPAIRS MADE BY PRIVATE SECTOR PERSONNEL, REGARDLESS OF THE COST IS DELEGATED TO THE DEPARTMENT OF TRANSPORTATION, BUT COMPETITION MUST BE SOUGHT WHERE AVAILABLE. WHERE MATERIALS ARE BEING PURCHASED FOR A REPAIR AND DOT PERSONNEL WILL PERFORM THE NEEDED REPAIR, THE PURCHASE OF THE MATERIALS MUST BE HANDLED IN ACCORDANCE WITH NORMAL PURCHASING PROCEDURE OUTLINED IN THIS MANUAL.
MAINTENANCE OF AIRCRAFT: ALL MAINTENANCE (AND REPAIR, SEE #1 ABOVE), WHETHER UNEXPECTED OR SCHEDULED, IS COVERED BY THIS DELEGATION. THIS DOES NOT INCLUDE THE PURCHASE OF EQUIPMENT, MATERIALS OR SUPPLIES FOR THE AIRCRAFT THAT IS SEPARATE AND APART FROM THE MAINTENANCE OR REPAIR BEING PERFORMED.
PLAYGROUND EQUIPMENT (STRUCTURE): WHERE THE PURCHASE OF PLAYGROUND EQUIPMENT IS BEING HANDLED AS A COMMODITY PURCHASE (VS. A CONSTRUCTION PROJECT), THE AUTHORITY TO PURCHASE SUCH PLAYGROUND EQUIPMENT AND ITS INSTALLATION IS DELEGATED TO THE USING AGENCY.
READY-MIX CONCRETE: WHERE THE PURCHASE OF READY-MIX CONCRETE IS BEING HANDLED AS A COMMODITY PURCHASE (VS. A CONSTRUCTION PROJECT), THE AUTHORITY TO PURCHASE SUCH READY-MIX CONCRETE IS DELEGATED TO THE USING AGENCY.
RAILWAY EQUIPMENT AND SPECIALIZED SERVICE: THIS SPECIAL DELEGATION COVERS TRAINS, ENGINES, TRACKS AND SERVICES RELATED DIRECTLY TO ESTABLISHING AND MAINTAINING RAILROADS.
AGGREGATE: NCDOT MAY OBTAIN ITS OWN BIDS, AND PUBLIC ADVERTISEMENT IS NOT REQUIRED, PROVIDED:

BIDS ARE SOLICITED IN WRITING FROM ALL KNOWN SOURCES OF SUPPLY NEAR THE PROJECT
FORMS ARE APPROVED BY THE STATE PURCHASING OFFICER INCLUDING, TERMS AND CONDITIONS, USED FOR SOLICITING COMPETITIVE BIDS
ANY DISPUTES OR CONTROVERSIES THAT ARISE FROM THIS PROCEDURE ARE REPORTED TO THE STATE PURCHASING OFFICER FOR HIS CONSIDERATION FOR APPROPRIATE ACTION
A COPY OF EACH BID ACCEPTED IS FURNISHED TO THE STATE PURCHASING OFFICER MONTHLY

STRAW, LARGE SHRUBBERY REQUIREMENTS AND OTHER MISCELLANEOUS LANDSCAPE MATERIALS, (BUT NOT INCLUDING FERTILIZER, SEEDS AND OTHER LARGE QUANTITIES OF ITEMS SUITABLE FOR HANDLING BY THE DIVISION OF PURCHASE AND CONTRACT THROUGH REGULAR BIDDING PROCEDURES)

Exemptions

EXCEPT AS PROVIDED IN PARAGRAPH (c) OF THIS RULE, IT IS NOT MANDATORY FOR THE ITEMS AND SERVICES LISTED IN THIS RULE TO BE PURCHASED THROUGH THE DIVISION OF PURCHASE AND CONTRACT.

PURCHASE OF LIQUOR;
PERISHABLE ARTICLES SUCH AS FRESH MEATS;
PUBLISHED BOOKS, MANUSCRIPTS, SUBSCRIPTIONS TO PRINTED MATERIAL,
PACKAGED COPYRIGHTED SOFTWARE PRODUCTS, AND LIKE MATERIAL;
SERVICES PROVIDED BY INDIVIDUALS BY DIRECT EMPLOYMENT CONTRACTS WITH THE STATE;
PUBLIC UTILITY SERVICES (GAS, WATER AND ELECTRICITY);
TELEPHONE, TELEGRAPH AND CABLE SERVICES FURNISHED BY THOSE COMPANIES
SERVICES PROVIDED WHICH ARE SUBJECT TO PUBLISHED TARIFF RATES AS ESTABLISHED BY THE NORTH CAROLINA UTILITIES COMMISSION;
SERVICES WHICH ARE MERELY INCIDENTAL TO THE PURCHASE OF SUPPLIES, MATERIALS OR EQUIPMENT SUCH AS INSTALLATION SERVICES;
CONTRACTS FOR CONSTRUCTION OF AND STRUCTURAL CHANGES TO PUBLIC BUILDINGS;
PERSONAL SERVICES PROVIDED BY A PROFESSIONAL INDIVIDUAL (PERSON) ON A TEMPORARY OR OCCASIONAL BASIS, INCLUDING (BY WAY OF ILLUSTRATION, NOT LIMITATION) THOSE PROVIDED BY A DOCTOR, DENTIST, ATTORNEY, ARCHITECT, PROFESSIONAL ENGINEER, SCIENTIST OR PERFORMER OF THE FINE ARTS AND SIMILAR PROFESSIONS; THE EXEMPTION APPLIES ONLY IF THE INDIVIDUAL IS USING HIS/HER PROFESSIONAL SKILLS TO PERFORM A PROFESSIONAL TASK; A PERSONAL SERVICE MAY ALSO BE A CONSULTING SERVICE;
SERVICES PROVIDED DIRECTLY BY AN AGENCY OF THE STATE, FEDERAL OR LOCAL GOVERNMENT, OR THEIR EMPLOYEES WHEN PERFORMING THE SERVICE AS A PART OF THEIR NORMAL GOVERNMENTAL FUNCTION.

EXCEPT AS PROVIDED IN PARAGRAPH (c) OF THIS RULE, IT IS NOT MANDATORY FOR THE ITEMS AND SERVICES LISTED IN THIS RULE TO BE PURCHASED THROUGH THE DIVISION OF PURCHASE AND CONTRACT.

THAT COMPETITION WILL NOT ENHANCE THE PRICE THAT THE STATE WOULD RECEIVE FOR THE PRODUCT OR SERVICE; AND
THAT COMPETITION WILL NOT ENHANCE THE QUALITY OF THE PRODUCT OR SERVICE THAT THE STATE WOULD RECEIVE.

CONTRACTS FOR BAKERY PRODUCTS AND DAIRY PRODUCTS SHALL BE AWARDED THROUGH THE DIVISION OF PURCHASE AND CONTRACT, IF OVER THE AGENCY'S EXPENDITURE BENCHMARK.

Waiver of Competition

UNDER CERTAIN CONDITIONS, AND OTHERWISE IF DEEMED TO BE IN THE PUBLIC INTEREST, COMPETITION MAY BE WAIVED. CONDITIONS PERMITTING WAIVER INCLUDE, BUT ARE NOT LIMITED TO, THE FOLLOWING:

CASES WHERE PERFORMANCE OR PRICE COMPETITION IS NOT AVAILABLE.
WHERE A NEEDED PRODUCT OR SERVICE IS AVAILABLE FROM ONLY ONE SOURCE OF SUPPLY.
WHERE EMERGENCY OR PRESSING NEED IS INDICATED.
WHERE COMPETITION HAS BEEN SOLICITED BUT NO SATISFACTORY OFFERS WERE RECEIVED.
WHERE STANDARDIZATION IS THE OVERRIDING CONSIDERATION.
WHERE A DONATION PREDICATES THE SOURCE OF SUPPLY.
WHERE A PERSONAL OR PARTICULAR PROFESSIONAL SERVICES ARE REQUIRED.
WHERE ADDITIONAL PRODUCES OR SERVICES ARE NEEDED TO COMPLETE AN ONGOING JOB OR TASK.
WHERE A PARTICULAR PRODUCT OR SERVICE IS DESIRED FOR EDUCATIONAL, TRAINING, EXPERIMENTAL, DEVELOPMENTAL OR RESEARCH WORK.
WHERE EQUIPMENT IS ALREADY INSTALLED, AND IN SERVICE, AND IT IS DETERMINED ADVANTAGEOUS TO PURCHASE IT.
WHERE ITEMS ARE SUBJECT TO RAPID PRICE FLUCTUATION OR IMMEDIATE ACCEPTANCE.
WHERE THERE IS EVIDENCE OF RESALE PRICE MAINTENANCE OR OTHER CONTROL OF PRICES, LAWFUL OR UNLAWFUL, OR COLLUSION ON THE PART OF COMPANIES WHICH THWARTS NORMAL COMPETITIVE PROCEDURES.
WHERE THE AMOUNT OF THE PURCHASE IS TOO SMALL TO JUSTIFY SOLICITING COMPETITION OR WHERE A PURCHASE IS BEING MADE AND A SATISFACTORY PRICE IS AVAILABLE FROM A PREVIOUS CONTRACT.
WHERE THE REQUIREMENT IS FOR AN AUTHORIZED COOPERATIVE PROJECT WITH ANOTHER GOVERNMENTAL UNIT (S) OR A CHARITABLE NON-PROFIT ORGANIZATION (S).
WHERE A USED ITEM (S) IS AVAILABLE ON SHORT NOTICE AND SUBJECT TO PRIOR SALE.

IN ACCORDANCE WITH A LAW ENACTED IN 1999, G. S. 143-53 (a) (5), ANY WAIVER OF COMPETITION FOR THE PURCHASE, RENTAL, OR LEASE OF EQUIPMENT, MATERIALS, SUPPLIES, OR SERVICES MUST BE SENT TO PURCHASE AND CONTRACT FOR PRIOR REVIEW, IF THE EXPENDITURE EXCEEDS $10,000.00, REGARDLESS OF OUR DELEGATION AMOUNT.

01 NCAC 05B.1402 - APPROVAL AND DOCUMENTATION: ALTHOUGH COMPETITION MAY BE WAIVED PURSUANT TO RULE .1401 OF THIS SECTION, ITS USE IS REQUIRED WHEREVER PRACTICABLE. WHERE WAIVER IS COMTEMPLATED, AGENCIES MAY NEGOTIATE WITH A POTENTIAL VENDOR(s) IN AN EFFORT TO ACQUIRE THE QUALITY OF COMMODITY, SERVICE, OR PRINTING NEEDED AT THE BEST POSSIBLE PRICE, DELIVERY, TERMS AND CONDITIONS, WHEN THE EXPENDITURE IS LESS THAN THEIR RESPECTIVE BENCHMARK OR DELEGATION. A SOLICITATION DOCUMENT REQUESTING OR INVITING AN OFFER(S) SHALL BE ISSUED BY THE AGENCY, INCLUDING STANDARD LANGUAGE, TERMS AND CONDITITIONS ISSUED BY THE DIVISION OF PURCHASE & CONTRACT. UNDER AN EMERGENCY OR PRESSING NEED SITUATION, A SOLICITATION DOCUMENT REQUESTING OR INVITING AN OFFER(S) SHALL BE ISSUED BY THE AGENCY, INCLUDING STANDARD LANGUAGE, TERMS AND CONDITIONS ISSUED BY THE DIVISION, UNLESS CIRCUMSTANCES PROHIBIT THEIR USE. NEGOTIATIONS MAY ALSO BE CONDUCTED WITH A POTENTIAL VENDOR(S) FOR CONTRACTS EXCEEDING AN AGENCY'S BENCHMARK OR DELEGATION, BUT ARE SUBJECT TO THE CONDITIONS OF RULE .1518 OF THIS SUBCHAPTER, EXCEPT WHERE OTHERWISE PERMITTED BY RULE.

Informal Bid Process

NORMALLY, THERE ARE TWO TYPES OF INFORMAL BIDS, TELEPHONE SOLICITATIONS AND WRITTEN SOLICITATIONS. DIVISION ENGINEERS, BRANCH MANAGERS, SECTION HEADS, UNIT HEADS, OR THEIR DESIGNATED AGENTS MAY SECURE INFORMAL QUOTATIONS. THE QUOTATION FORM FOUND IN THE PURCHASING WEB SITE MUST BE USED DUE TO TERMS AND CONDITIONS WHICH ARE REQUIRED. THIS FORM CAN BE DOWN LOADED AND MODIFIED TO INCLUDE DESCRIPTION OF ALL REQUIREMENTS AND SPECIFICATIONS.

Purchase	Minimum Requirements	Comments
0 to $1,000.00	SMALL PURCHASE DELEGATION(Except Inventory Items)	Purchase Order Not Required
0 to $5,000.00	COMPETITION NOT REQUIRED(Excludes Term Contracts)
$5,000.00 to $10,000.00	THREE TELEPHONE OR WRITTEN QUOTE OR DOCUMENT REASON(S) FOR NOT RECEIVED 3 QUOTES.	WRITTEN QUOTE REQUIRED FROM WINNER
$10,000.00 to $25,000.00	PREPARE RFQ DOCUMENTS AND ADVERTISE THROUGH IPS, (INTERACTIVE PURCHASING SYSTEM).
$25,000.00 AND UP	PREPARE BID PACKAGE AND FORWARD TO PURCHASE AND CONTRACT.

Protest Procedures

TO INSURE FAIRNESS TO ALL OFFERORS AND TO PROMOTE OPEN COMPETITION, THE DEPARTMENT OF TRANSPORTATION SHALL ACTIVELY FOLLOW-UP AND BE CONSISTENT IN RESPONDING TO AN OFFEROR'S PROTEST OVER CONTRACT AWARDS.

THIS RULE APPLIES TO CONTRACTS WITH AN ACTUAL OR ESTIMATED DOLLAR VALUE OVER TEN THOUSAND DOLLARS ($10.000.00). PROTESTS FOR CONTRACTS VALUED BELOW TEN THOUSAND ($10,000.00), DOLLARS WILL BE PROCESSED BY THE DIRECTOR OF THE DEPARTMENT OF TRANSPORTATION.

WHEN AN OFFEROR WANTS TO PROTEST A CONTRACT AWARDED BY THE DEPARTMENT OF TRANSPORTATION VALUED ABOVE TEN THOUSAND DOLLARS ($10,000.00) IN VALUE, THE FOLLOWING PROCEDURES SHALL APPLY.

THE OFFEROR SHALL SUBMIT A WRITTEN REQUEST FOR A PROTEST MEETING TO THE DIRECTOR OF PURCHASING WHICH SHALL BE RECEIVED BY THE DIRECTOR WITHIN 30 CONSECUTIVE CALENDAR DAYS FROM THE DATE OF THE CONTRACT AWARD. THE DIRECTOR OF PURCHASING SHALL FURNISH A COPY OF THIS LETTER TO THE STATE PURCHASING OFFICER WITHIN FIVE CONSECUTIVE CALENDAR DAYS OF RECEIPT. THE OFFEROR'S LETTER SHALL CONTAIN SPECIFIC REASONS AND ANY SUPPORTING DOCUMENTATION FOR WHY IT HAS A CONCERN WITH THE AWARD. IF THE LETTER DOES NOT CONTAIN THIS INFORMATION, OR IF THE EXECUTIVE OFFICER DETERMINES THAT A MEETING WOULD SERVE NO PURPOSE, THEN THE DIRECTOR MAY, WITHIN TEN CONSECUTIVE DAYS FROM THE DATE OF RECEIPT OF THE LETTER, RESPOND IN WRITING TO THE OFFEROR AND REFUSE THE PROTEST MEETING REQUEST. A COPY OF THE DIRECTOR'S LETTER SHALL BE FORWARDED TO THE STATE PURCHASING OFFICER.
IF THE PROTEST MEETING IS GRANTED, THE DIRECTOR SHALL ATTEMPT TO SCHEDULE THE MEETING WITHIN THIRTY CONSECUTIVE CALENDAR DAYS AFTER RECEIPT OF THE LETTER, OR AS SOON AS POSSIBLE THEREAFTER. WITHIN TEN CONSECUTIVE DAYS FROM THE DATE OF THE PROTEST MEETING, THE DIRECTOR SHALL RESPOND TO THE OFFEROR IN WRITING WITH THE DIRECTORS DECISION. A COPY OF THE DIRECTOR'S LETTER SHALL BE FORWARDED TO THE STATE PURCHASING OFFICER.
THE DIRECTOR SHALL NOTIFY THE STATE PURCHASING OFFICER IN WRITING OF ANY FURTHER ADMINISTRATIVE OR JUDICIAL REVIEW OF THE CONTRACT AWARD.
THE DIRECTOR MAY APPOINT A DESIGNEE TO ACT ON THE DIRECTOR'S BEHALF UNDER THIS RULE. WHEN AN OFFEROR WANTS TO PROTEST A CONTRACT AWARDED BY THE DEPARTMENT OF ADMINISTRATION, DIVISION OF PURCHASE AND CONTRACT, THE OFFEROR WILL SUBMIT HIS REQUEST FOR PROTEST TO THE STATE PURCHASING OFFICER.

Organization Structure

Organizational Chart (Employee Directory)

Commodity Assignment

For a list of Commodity Assignments
Click the following link:

Purchasing Section - Commodities & Buyers List

North Carolina Administrative Code

Administrative Code available by the State of North Carolina, Purchase & Contract

Click the following link:

https://ncadmin.nc.gov/purchase-contract-administrative-code

North Carolina General Statutes

General Statutes available by the North Carolina General Assembly web site
Click the following link:

North Carolina General Assembly Web Site

Purchasing Manual Procurement Policies and Procedures for NCDOT

Overview

Complete Purchasing Manual

Complete Purchasing Manual

Preface

Purchasing Overview

Statutory Authority

Ethics

Integrity

Definitions

Delegations

Special Delegations

Exemptions

Waiver of Competition

Informal Bid Process

Protest Procedures

Organization Structure

Commodity Assignment

North Carolina Administrative Code

North Carolina General Statutes

Table of Contents

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