Procurement thresholds for government agencies are important because they ensure the responsible, fair and transparent use of public funds. North Carolina purchase and bidding thresholds are published in the North Carolina Administrative Code, Section 01 NCAC 05 B.
A recent update increased these thresholds, aligning the benchmark with the Consumer Price Index to account for future inflationary growth. The new formal competition threshold is $31,000, prompting a reassessment of the NC State procurement process thresholds. The following table offers a high-level overview of the most up-to-date thresholds, processes and guidance.
NC State’s Procurement Thresholds
| Amount | Title | Definition | Process | Guidance |
|---|---|---|---|---|
| $0-$4,999 | Low-dollar purchase | A procurement strategy for low-value items that allows for simplified purchasing methods. | Shop the MarketPlace catalogs first, then shop and select from the State Term contracts or University, and National consortium contracts, and pay with the PCard. | Avoid processing low-dollar purchases on a campus voucher and pay with a PCard. |
| $5,000-$30,999 | Informal Solicitation | An informal solicitation is a procurement method for goods or services that doesn’t require public advertising or bidding processes. It does require obtaining three valid quotes from qualified suppliers. | Shop the MarketPlace catalogs first, then Shop the State Term contracts and University and National consortium contracts. | Submit the best value quote of the three quotes obtained from qualified suppliers, and submit a State Term contract exception memo with the requisition. |
| $31,000 and above | Formal Solicitation | A formal solicitation is a structured, written request for bids or proposals. It outlines the specifications for a product or service and invites potential suppliers to submit their offers by a specific deadline. This process is designed to ensure fair competition and transparency in the selection of suppliers. | Create the specifications and submit them with the requisition. | If the supplier is known, submit a memo of justification to waive the competitive bidding process. |
Summary of Updates and Reminders
- The informal solicitation threshold changed from $29,000 to $31,000.
- For purchases up to $5,000, no changes: The NC State Marketplace and the PCard remain the preferred procurement methods and should be selected based on the availability of the required products.
- For purchases between $5,000 and $30,999:
- Obtain quotes from three qualified suppliers to ensure the best price and value.
- Submit the best value quote of those obtained from qualified suppliers.
- Submit a memo documenting the reason that the State Term Contract is not used, if applicable.
- Submit a requisition, required to ensure Capital Assets are adequately captured. Note: A Waiver of Competition memo is not required.
Sourcing Tips
- Shop the MarketPlace First.
- Shop the Statewide Term Contracts.
- Shop from a list of National Consortium Contracts and Convenience Contracts.
For more information about this article, please visit the Finance Division Service Portal > MarketPlace and Purchasing category.