The Informal Procurement Method is commonly referred to as procurement under the small purchase threshold or simplified acquisitions. Although this method is permitted when the amount of a purchase falls at or below the most restrictive small purchase threshold ($80,000 in Montana), a school food authority could choose to use the formal procurement method rather than the informal procurement method.
The following steps are typically involved in an informal procurement:
- Develop specifications in writing.
- Describe the goods or services that are needed
- Any due dates or other requirements
- Identify sources eligible, able, and willing to provide products.
- Contact at least two sources.
- Evaluate quotes and response to your written specifications.
- Determine most responsive and responsible bidder at lowest price. Keep procurement documentation.
- Receipts, invoices.
- Documentation of price quotes from adequate number of sources (2 or more).
- If only one qualified supplier, must document why there is only one qualified supplier. Include reasons, such as labor and mileage cost for driving to another location.