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| Procurement Log |
Small Purchase Informal Procurement Log Sample in PDF
The Small Purchase Informal Procurement Log is to be used to document all competitive price quotations obtained during the annual small purchase informal procurement procedure.
Instructions for Completing Small Purchase Informal Procurement Log
The Small Purchase Informal Procurement Log is to be used to document all competitive price quotations obtained during the annual small purchase informal procurement procedure. The institution must contact at least three known suppliers of the food, services, and/or supplies commonly purchased on an annual basis and obtain competitive price quotations.
The negotiation of prices and terms with one or more of the suppliers contacted is permitted as necessary. All information and prices discussed via telephone should be followed up with a written document or communication from the vendor and must be documented in program files. Bid quotes/prices should be obtained in writing. Institutions must ensure that all potential vendors receive the same information about the food, services, and/or supplies required.
It is not permissible for the institution to split a purchase into smaller units or subgroups for the purpose of avoiding the large purchase formal procurement process. Procurement records must be kept for three years after the close of the current fiscal year or as long as there are unresolved audit findings or investigations related to those records.
Attached to this document is a "Small Purchase Informal Procurement Log” that may be used or may guide you in developing your own form. Below is a sample of how this form can be used.
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| Small Purchase Informal Procurement Log |
Things to remember when using micro-purchasing are:
- The institution/sponsor must distribute micro-purchases between multiple suppliers to “share the wealth” as long as the price is considered reasonable.
- The items being purchased should be examined to see if purchasing them in a different manner could result in a better price. (Micro-purchasing may not be used when another procurement method may achieve a more economical approach).
- For example, you cannot purchase your weekly food supplies from one vendor throughout the year, as long as each of the weekly invoices do not exceed the micro-purchase threshold of $3,500. Using this example, the institution must use an informal or formal procurement method to evaluate the best vendor. Micro-purchasing is meant to be used for smaller purchases that cannot otherwise be estimated for long term use over the fiscal year.
Examples of micro-procurement log
- The cooler went out overnight and some of your food product is not safe to serve. An emergency trip to the local market is needed to purchase enough supplies to complete a menu until your designated vendor can restock your supply.
- Spices and other low cost items used often but not purchased frequently in great quantity are items that work well using the micro-purchase method.
- Small farm to school, special taste-test items or Fresh Fruit and Vegetable purchases can be appropriate for micro-purchases.
It is the responsibility of the Food Service Director and/or Business Manager to be educated on the procurement methods and institute proper business practices accordingly. Documentation needs to be maintained and available upon request by the state agency.
Procurement Procedures Flow Chart
The procurement process flow is the skeletal framework that outlines how purchasing and procurement occurs or is handled within an organization. After a manager (or whomever is designated) has approved a purchase requisition and created a purchase order, the buyer sends a budget request to the accounting department.
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| procurement-procedures-flow-chart |
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