§103D-305 Small purchases; prohibition against parceling.

295 words·~1 min read·/hi/103d-305

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)Procurements of less than $100,000 for goods or services, or $250,000 for construction shall be made in accordance with procedures set forth in rules adopted by the policy board that are designed to ensure administrative simplicity and as much competition as is practicable; provided that multiple expenditures shall not be created at the inception of a transaction or project so as to evade the requirements of this chapter; and provided further that procurement requirements shall not be artificially divided or parceled so as to constitute a small purchase under this section.

(b)Procurements greater than $50,000 for construction under subsection

(a)shall require security by performance and payment bonds, pursuant to section 103D-324, delivered to the procurement officer, that are:

(1)In a form prescribed by the rules of the policy board;

(2)Executed by a surety company authorized to do business in this State; and

(3)In an amount equal to one hundred per cent of the price specified in the contract,

or shall otherwise be secured by a performance bond in a manner satisfactory to the procurement officer.

(c)Procurements of $50,000 to less than $250,000 shall be made in accordance with small purchase procedures; provided that these small purchase procurements shall be conducted through an electronic system. [L Sp 1993, c 8, pt of §2; am L 1994, c 186, §10; am L 1995, c 178, §11; am L 1997, c 352, §8; am L 2006, c 283, §2; am L 2009, c 175, §§2, 14(1); am L 2010, c 107, §1; am L 2012, c 173, §§2, 5; am L 2025, c 262, §2]

Note

State procurement office report to 2026 legislature on the efficacy of the 2025 amendment. L 2025, c 262, §3.