Procurement Transaction Review

The TDOT Passenger Transportation Section, in collaboration with other TDOT divisions, has determined that formal prior approvals are not required for Micro-Purchases at this time. However, this policy may change based on future guidance from the state, TDOT Finance divisions, or the state Comptroller. While formal approvals are not currently necessary, documentation for Micro-Purchases should include:

• A notation that the price paid for the good or service was reasonable
• The basis for determining the price's reasonableness, such as:
  • Observing catalog or market price
  • Previous purchasing experience
  • Prices paid for similar items
  • Other relevant methods of price determination
    

A Micro-Purchase is defined as the procurement of a good or service in the amount of the lesser of $10,000 or the local agency’s procurement policy Micro-Purchase limit. The local agency’s Micro-Purchase limit is the threshold below which quotes from multiple vendors are not required. Below are some resources for completing and tracking Micro-Purchases at the agency-level. 

• Micro-Purchase Checklist 
• Micro-Purchase Tracker

For all purchases exceeding the local agency’s Micro-Purchase limit, based on the total value (not per unit value), formal prior approvals are required. There are two review process options depending on the source of funds used:

• StateFund Focused Request
• FederalFund Focused Request

Purchases or procurements funded by the following state contract funds should use the state-focused request process:

• State-Only Programs: Includes contracts for programs like the Urban Operating Program (UROP) or the IMPROVE Program, which are solely state-funded, with a potential local match requirement.
• State Matching Programs: Includes contracts where the federal amount determines the state match provided to the grantee. In these contracts, the grantee is the direct recipient of federal funds (e.g., 5307, 5310, 5339 programs), not TDOT. This typically applies to urban agency grantees.

The process involves completing an online request for approval form and submitting the necessary information and documentation through the form.

Request to Proceed Prior to Award:

• Complete the online request form before issuing a purchase order or executing a contract with the selected vendor.

Documentation Requirements:

• A copy of the draft purchase order or unexecuted contract
• Ensure all required state clauses are included or attached

1. Request a Letter to Proceed with Publicity/Quotes: Submit planning and procurement solicitation documents to ensure all federal and state compliance considerations are addressed. This submission should be made before requesting quotes from vendors for small or simplified procurements, or before publishing the solicitation for formal procurements. (Note: Statewide contracts are exceptions and do not require this letter, as they have already been advertised.)
2. Request to Proceed Prior to Award: Submit documentation covering the execution of the procurement, including vendor evaluation and preparation of the agreement document (purchase order or contract). This submission should be made before issuing a purchase order or signing a contract with the selected vendor, ensuring compliance with federal and state requirements.
3. Final Post-Award Documentation Submission: After the procurement process is complete, submit a copy of the final, executed procurement documents for TDOT's final review. This step should be completed before requesting reimbursement from TDOT for the expense.

Documentation Requirements:

• Refer to the website for specific documentation paths based on the type of procurement. 
• Worksheets based on state and federal rules are provided to help grantees document the procurement process. While using these worksheets is optional, grantees who choose not to use them must ensure that all required information is included in the documents submitted to TDOT. TDOT staff will follow up if any information is missing.