Contracts & Procurement
Purchasing routes for technology services: a summary for agency staff
The purchasing routes available to public agencies for technology work, and when each fits.
Agencies buy technology under rules set by state statute, local ordinance, and their own purchasing policies. This summary is for program and IT staff who need to know which route fits a given need before they talk to their purchasing office.
Purchasing thresholds
Nearly every agency has tiers. Below a small-purchase threshold, staff can buy with a purchase order and perhaps a few quotes. Above it, informal competition such as three written quotes is required. Above a higher formal threshold, a public solicitation is required and the governing body typically approves the award. Amounts and rules vary by agency and are revised over time; the purchasing office has the current policy.
Formal solicitations
- Request for proposals (RFP). Evaluates approach and qualifications alongside price. The usual route for software and services where how the work is done matters.
- Invitation for bids (IFB). Price-based, for fully specified requirements. Common for hardware and commodities.
- Request for qualifications (RFQ). Selects firms for on-call or as-needed services, with individual task orders later.
- Request for information (RFI). Not a solicitation. A way to learn what the market offers before drafting one.
Cooperative purchasing
Many agencies may buy from contracts competitively awarded by another public entity or a purchasing cooperative, avoiding a separate solicitation. The agency's policy sets when this is allowed, and the original contract's scope must match what is being bought.
Sole source and emergency purchases
Permitted in narrow circumstances with written justification and approval. Technology purchases are rarely a genuine sole source; document the reasoning carefully.
Subcontracting
The agency contracts with a prime vendor, who may subcontract portions. Subcontractor approval may be required; the agency's relationship remains with the prime.
Matching the route to the need
A defined, modest engagement such as an assessment or an integration often fits under threshold or through a quotes process. A platform replacement needs a formal solicitation with careful requirements. Ongoing technical support fits an on-call qualification. Start the conversation with purchasing early; the route determines the timeline.