Competition Requirements for Small Purchases Greater Than or Equal to $20,000 Policy

In conducting small purchase procurements for commodities (supplies), services, and construction, the University shall use practices that ensure maximum reasonable competition and promote small businesses, transparency, and other statutory requirements. Small Purchases are defined as services or supplies with a value between $20,000 and $100,000.

The Illinois Procurement Code (30 ILCS 500/20) states the applicable source selection and contract formation requirements. This policy is applicable to all purchases subject to the Illinois Procurement Code that are below the small purchase limit ($100,000).

The University is required to establish practices that ensure maximum, reasonable competition and promote small businesses, transparency, and other statutory policies. Documentation of each purchase must be maintained in the procurement file. This policy outlines the procedures to meet these requirements. See 44 IL Admin Code 4.2020 for additional information.

Compliance with the standards set forth in the Code of Federal Regulations (CFR) Title 2, Subtitle A, Chapter II, Part 200 (or Uniform Guidance)

To ensure reasonable competition pursuant to, Illinois Administrative Code Title 44 § 4.2020, the Illinois Procurement Code 30 ILCS 500/ and in compliance with the standards set forth in the Code of Federal Regulations (CFR) Title 2, Subtitle A, Chapter II, Part 200 (or Uniform Guidance), the University requires the submission of multiple quotes (a minimum of three written quotes required) for requisitions that are considered a small purchase. The small purchase transaction threshold is between $20,000 and $100,000. When considering the value of the purchase transaction, be sure to include the aggregate amount of any renewals, i.e., multiyear terms.

Departments should consider Business Enterprise Program (BEP) certified diverse vendors for purchases greater than or equal to $20,000.00 and under the small purchase limit ($100,000) by soliciting at least one quote from a Business Enterprise Program (BEP) certified vendor, when available. BEP vendors can be identified through the use of a National Institute of Governmental Purchasing (NIGP) code which can be found at Illinois Procurement Bulletin-Public Institutions of Higher Education. If there are no BEP vendors available, please document attempt by annotating the date you searched and the NIGP codes used. 

A requisition (including open orders) that is less than the small purchase limit ($100,000), but greater than or equal to $20,000 must include written documentation demonstrating competition from multiple vendors (PSCM Quote Summary Form, Revised April 2025). Small purchases should be made from the vendor that offers the lowest cost and/or the best value to the University.

The individual submitting a purchase requisition shall include the Quote Summary Form and any applicable quote documents as an attachment to their purchase requisition.

If the University does not receive multiple quotes, documentation demonstrating the reasons why not must be submitted on the Quote Summary Form, Revised April 2025 and uploaded as an attachment in the Peoplesoft system (P2PO), along with the purchase requisition.

If a purchase requisition is submitted for a vendor that is not the lowest-cost vendor, the individual submitting the requisition must complete the Quote Summary Form, documenting the justification and why the vendor selected was not the lowest-cost vendor for the request.

If your purchase does not require quotes because of an exemption, use the Small Purchase Waiver Form to document the basis of the waiver. Include the Small Purchase Waiver as an attachment in the Peoplesoft system (P2PO) when submitting your purchase requisition.

Small purchase limits may be adjusted annually or by rules promulgated by the Chief Procurement Officer for Higher Education and published on the Illinois Procurement Bulletin for Public Institutions of Higher Education.

Pursuant to changes in the Illinois Administrative Code, the University is required to establish practices that ensure maximum, reasonable competition and promote small businesses, diversity, transparency, and other statutory policies. Documentation of each purchase must be maintained in the procurement file. This policy outlines the procedures to meet these requirements. See 44 IL Admin Code 4.2020 for additional information.

A requisition for supplies (commodities), services and construction that is greater than or equal to $20,000, shall include documentation demonstrating competition from multiple vendors. A minimum of three quotes is required, with one quote considered from a certified BEP vendor. The requisition document must include either:

• Quote Summary Form with quotes from multiple vendors for the supply/service requested written quotes, if any, must be attached to the form), or
• Small purchase waiver documenting the reason(s) why multiple quotes were not required or attainable. (personal preference is not an acceptable justification).

The purchase request should be made with the vendor that offered the lowest cost and/or best value as reflected on the Quote Summary Form. If a purchase requisition is submitted with a purchase to a vendor other than the lowest cost vendor, the individual submitting the requisition must complete the Quote Summary Form documenting the justification for selecting the vendor who didn’t offer the lowest cost.

Competition can be demonstrated by (Note: Use a consistent method of engaging vendors for the same procurement and in the same manner, i.e., phone or email or obtaining quotes via internet):

• Obtaining written quotes from competing vendors
• Requesting pricing via email
• Web search results demonstrating pricing
• Telephone quotations (must be documented to state which vendor was contacted and the pricing quoted)

PSCM Quote Summary Form April 2025 is to be used when obtaining written quotes, internet quotes or documenting verbal quotes.

Note: Obtaining quotes for items that are not similar in nature is not considered reasonable competition.

Purchases for supplies or services that are not prohibited or restricted and are less than $20,000 may be purchased through Peoplesoft (P2PO) purchase requisition as the normal process, without competition. Departments are encouraged to ensure they are getting the best price. Allowable purchases for supplies that are less than or equal to $5,000 may be purchased using a Purchase Card (P-Card). If possible, competition should be sought by Departments and/or cardholders making these purchases.

Orders using grant funding must adhere to the competition policy for purchases $20,000 or greater and any additional standards set forth in the Code of Federal Regulations (CFR) Title 2, Subtitle A, Chapter II, Part 200 (or Uniform Guidance) and any other terms and conditions applicable to the award. Procurement of goods and services on sponsored awards must adhere to both state and federal requirements. The most restrictive rules apply. These rules also apply to any purchases used to meet matching or cost share requirements. Additional guidance can be found at Purchasing Goods and Services For Sponsored Programs.

Requisitions for open orders require the same level of competition as other small purchases. When an open order is for a catalog of items, the requester may use historical purchase information to determine the quantities and types of products being purchased to compare pricing catalogs from multiple vendors. Catalog items are a vast array of items one vendor can provide. For example, if the requester routinely buys cleaning solutions, cleaning towels, brooms, mops, etc., then the requester should seek quotes from multiple vendors for the common items procured.

There are designated purchases that qualify for an exemption from the requirements of the Illinois Procurement Code eliminating the need to obtain multiple quotes.

Some examples of commonly used exemptions include the following:

• Membership in professional, academic, research, or athletic organizations on behalf of a public institution of higher education, an employee of a public institution of higher education, or a student at a public institution of higher education (30 ILCS 500 / 1-13(b)(1))
• Athletic, artistic or musical services, performances, events, or productions by or for a public institution of higher education (30 ILCS 500 / 1-13(b)(4))
• Periodicals, books, subscriptions, database licenses, and other publications procured for use by a university library or academic department, except for expenditures related to procuring textbooks for student use or materials for resale or rental (30 ILCS 500 / 1-13(b)(5))

View a more detailed list of available exemptions.

Quotes do not need to be obtained if a purchase is made under an existing contract, as competition was established through the initial solicitation/award process. However, a Small Purchase Waiver Form will be required to be attached to the purchase requisition.

Examples of where a small purchase may be made under an existing contract include:

• Purchases made from a campus-wide contract (i.e. Office Depot, Dell, Apple, Gordon Foods, etc.)
• Purchases as a result of an NIU Request for Proposal (RFP), Invitation for Bid (IFB), Qualification Based Selection (QBS), Sole Source Authority (typically transactions over $100,000.)
• Purchases made from an Illinois Public Higher Education Cooperative (IPHEC) award
• Purchases made from a State of Illinois master contract which are allowed to be used by Public Institutions of Higher Education in Illinois

Any Change Order to increase an established purchase order, with an initial value less than $20,000 and a change order bringing the new amount greater than $20,000 or an established purchase order greater than $20,000 and a change order increasing the value by any amount will require a Small Purchase Waiver Form to be completed by the requestor and attached to the purchase requisition.

The basis for issuing a change order could include:

• The change in performance were not reasonably foreseeable at the time the contract/purchase order was signed.
• The change is germane to the original contract/purchase order as signed.
• The change order is in the best interest of the university and authorized by law.

Change orders should include the total dollar amount for both the original and increased change order amount. 

An emergency situation, as defined by the Illinois Procurement Code (30 ILCS 500/20-30a), pertains to the following:

• A threat to public health or public safety;
• When immediate expenditure is needed for repairs to university property to protect against further loss or damage to university property;
• To prevent or minimize serious disruption in critical university services that affect health, safety, or collection of substantial State revenues; or
• To ensure the integrity of university records

Emergency purchases shall be made with as much competition (quotes) as is practicable under the given circumstances. Emergency purchases do not require submission of a purchase requisition or the issuance of a purchase order prior to ordering goods or requesting services. A purchase requisition, as well as the Emergency Purchase Statement, must be submitted for the goods/services ordered during the emergency as soon as the emergency subsides.

Not every situation of immediate need arises to the level of an emergency. While not considered an emergency such situations may require expedited urgent processing of a purchase requisition. Examples of an urgent purchase may involve the failure of a device/ device part; an incompatible part for a device that requires urgent purchase to avoid loss of data, research results, programmatic delays; limitation of student functionality; safety concerns for program participants; order processing time of a vendor that affects research/programming timelines.    

Urgent purchases should use reasonable means for competition but may limit your ability to obtain the necessary quotes as practical. A purchase requisition should be submitted in the P2PO system attached with a Small Purchase Waiver Form documenting the unique attributes of the vendor and service/supply requiring urgency.

Purchases cannot be artificially divided to avoid a competitive procurement (This includes utilizing the P-Card and Check Request). A review for potential stringing may occur.

Exclusive

Vendor is the only one capable of providing specified product or service (e.g. unique part for a device or maintenance). Complete documentation to explain the unique attributes of the vendor and service/supply is required.

Compatibility

The item purchased must be integrated into an existing device, experiment or research effort, or instructional sequence.