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METHODS OF SUPPLY wiz-icon1

18. Thresholds

A Reference Guide to Thresholds and requirements for each of the thresholds may be found here.

A procurement process may be initiated by an entity only after the procurement project has been appraised and the results documented in an approved business case where required.

The appraisal process shall be conducted and the business case shall be prepared in accordance with the following requirements -

  • where a procurement project is less than one hundred thousand dollars in value, a business case is not required and -
    • a purchase requisition shall be submitted in the format specified by the Chief Officer or the Chief Executive Officer, as the case may be, or the respective delegate of the procuring entity; and
    • the requisition or purchase order shall be authorized by the Chief Financial Officer of the entity or the Chief Financial Officer’s delegate;
  • where a procurement project is one hundred thousand dollars or greater in value but less than two hundred and fifty thousand dollars -
    • a written business case shall be submitted in the format specified by the Chief Officer or Chief Executive Officer, as the case may be, of the initiating entity;
    • the business case shall be submitted for review to the Entity Procurement Committee by the Head of Department;
    • the Chief Officer or Chief Executive Officer, on the advice of the Entity Procurement Committee, may authorize the business case including all appendices; and
    • the business case shall be retained in a file in the entity along with the procurement file.
  • where a procurement project is two hundred and fifty thousand dollars or more in value -
    • a written business case shall be submitted in the format specified by the Public Management and Finance Law (2017 Revision) or in such other format as may be specified by the Director of the Central Procurement Office;
    • a written local impact assessment shall be submitted in the format specified by the Central Procurement Office and shall be appended to the business case;
  • where a procurement project is more than ten million dollars in value, a written industry consultation report shall be submitted in the format specified by the Central Procurement Office and shall be appended to the business case and the report shall be submitted for review to the Public Sector Investment Committee, hereinafter referred to as the “PSIC”, by the Chief Officer or Chief Executive Officer, as the case may be;
  • upon receipt of the required documentation, the PSIC shall make recommendations to the Cabinet as to overall project viability;
  • the Cabinet shall determine whether the project receives its approval and, where it is approved, the Cabinet shall determine the timeline and budget;
  • the business case and all supporting documentation shall be authorized by the Chief Officer or Chief Executive Officer, as the case may be, following on the decision of the Cabinet;
  • following approval, a copy of the business case and all appendices shall be forwarded to the Public Procurement Committee by the PSIC; and
  • the business case and all supporting documentation shall be retained by the entity in a file along with the procurement file.

Direct Award Thresholds

A request for a direct award -

  • with a procurement value of less than one hundred thousand dollars requires the approval of the Chief Officer;
  • with a procurement value of between one hundred thousand dollars and two hundred and fifty thousand dollars requires the endorsement of the Chief Officer or Chief Executive Officer, as the case may be, prior to submission for approval to the Entity Procurement Committee; and
  • with a procurement value over two hundred and fifty thousand dollars requires the endorsement of the Chief Officer or Chief Executive Officer, as the case may be, prior to submission for approval to the Public Procurement Committee.

Public Notice of Award Thresholds

Purchases greater than ten thousand dollars must be posted on the web site designated by the Central Procurement Office within thirty days of the contract award or purchase date, as the case may be, and set out the following -

  • the name of the entity;
  • the name of the contractor or vendor, as the case may be;
  • the date of award or purchase;
  • a brief description of the goods or services being procured or purchased; and
  • the total value of the contract or the purchase.

Purchases under ten thousand dollars must be posted on the website designated by the Central Procurement Office within one year of the contract award or purchase date as the case may be.