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Public Works, Energy & Utilities Increase of purchasing threshold signed into law
Gov. Deval Patrick today signed a supplemental budget bill that includes a provision to raise the so-called micro-procurement threshold in Chapter 149 from $1 to $5,000, thereby requiring only the use of “sound business practices” for procurements under that amount. [See Chapter 166 of the Acts of 2009, Section 30.]
The Legislature had passed the bill on Nov. 19.
The public construction reform law passed in 2004 adjusted several public bidding thresholds in state law, inadvertently lowering from $5,000 to $1 the threshold that requires cities and towns to solicit three written quotes for purchases. Since that time, the MMA and local officials across the state have sought to return the threshold to $5,000. The Special Commission on Public Construction Reform has also supported returning the threshold to $5,000.
The MMA and local officials argued that the $1 threshold imposed time and administrative burdens on all municipalities who need to complete small building repairs, requiring them to bring in more than one party to look at every job. The rule also prompted the filing of numerous emergency waivers, which burdened the Division of Capital Asset Management. And the requirement did not take into account “sole source” items or situations where fewer than three contractors are available.
Public Works, Energy & Utilities Increase of purchasing threshold signed into law
Increase of purchasing threshold signed into law
Gov. Deval Patrick today signed a supplemental budget bill that includes a provision to raise the so-called micro-procurement threshold in Chapter 149 from $1 to $5,000, thereby requiring only the use of “sound business practices” for procurements under that amount. [See Chapter 166 of the Acts of 2009, Section 30.]
The Legislature had passed the bill on Nov. 19.
The public construction reform law passed in 2004 adjusted several public bidding thresholds in state law, inadvertently lowering from $5,000 to $1 the threshold that requires cities and towns to solicit three written quotes for purchases. Since that time, the MMA and local officials across the state have sought to return the threshold to $5,000. The Special Commission on Public Construction Reform has also supported returning the threshold to $5,000.
The MMA and local officials argued that the $1 threshold imposed time and administrative burdens on all municipalities who need to complete small building repairs, requiring them to bring in more than one party to look at every job. The rule also prompted the filing of numerous emergency waivers, which burdened the Division of Capital Asset Management. And the requirement did not take into account “sole source” items or situations where fewer than three contractors are available.
