Procurement Transaction Review

The Multimodal Division, in working with other TDOT divisions, has currently concluded that grantees are not required to obtain formal prior approvals for Micro-Purchases. This conclusion, however, can change based on future guidance from the state or TDOT Finance divisions or the state Comptroller. While formal prior approvals are not required, documentation for Micro-Purchases should include notations that the price paid for the good or service received was reasonable and state the basis for that determination, such as observing catalog or market prices, previous purchasing experience, prices paid for similar items, or other types of determinations.

A Micro-Purchase is the purchase or 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 agency’s procurement policy amount below which quotes from multiple vendors are not required.

All purchases and procurements greater than the local agency’s Micro-Purchase limit based on total value and not on the per unit value require formal prior approvals. There are two required review process options based on the source of funds used for the purchase or procurement, a state focused request and a federal contract request.

Purchases or procurements to be funded with the following state contract funds use the state focused request process:

• State Only Programs – such as contracts for the Urban Operating Program (UROP) or the IMPROVE Program, which only provide for state funding with a possible local match amount requirement, or
• State Matching Programs – such as contracts that consider a federal amount only to determine the amount of state match to be provided to the grantee. In these contracts the grantee is the direct recipient of federal funds, and not TDOT. These contracts include 5307, 5310, 5339, or other federal programs where the grantee is the direct recipient of funds. This is the case with urban agency grantees.

The process consists of completing an on-line request for approval form and providing the required information and documentation in the form.

Only one request is required in this process.

• Request to proceed prior to award – Complete the on-line request form prior to issuing a purchase order or executing a contract with the selected vendor.

Documentation requirements

• Copy of the draft purchase order or unexecuted contract
• with all state clauses included or attached.

Purchases or procurements to be funded with the following state contract funds use the federal focused request process:

• State and Federal Funds Programs – such as contracts that include state and federal amounts to be provided to the grantee. In these contracts TDOT is the direct recipient of federal funds. These contracts include 5310, 5311, 5339, or other federal programs where TDOT is the direct recipient of funds. This is the case with rural agency grantees.
  

The process consists of accumulating the procurement documentation and submitting it for review to TDOT to request a letter to proceed with publicity/quotes and to request a letter to proceed with award.

Two requests are required in this process.

• Request a letter to proceed with publicity/quotes – The first request covers the planning and procurement solicitation documentation review to confirm that all considerations for federal and state compliance are covered. This request is to be made prior to requesting quotes from vendors for small or simplified procurements or prior to publishing the solicitation for formal procurements. (See website below for documentation paths for types of procurements. Statewide contracts are exceptions to this request and do not require this letter as they have already been advertised.)
• Request to proceed prior to award – The second request covers the execution of the procurement, evaluation of vendors, and preparation of the agreement document, either a purchase order or contract to confirm that all considerations for federal and state compliance are covered. The request is to be made prior to issuing a purchase order or executing a contract with the selected vendor.
  

Documentation requirements

• As noted on the website. Worksheets based on state and federal rules are provided for grantees to use for documenting the procurement. Completion of the worksheets is currently optional. However, if the grantee chooses not to use the worksheets provided, the same informational content must be included in the documents provided to TDOT for review. If any information is not included in the documentation received, TDOT staff will be in contact to resolve missing information.