Recommendation to increase the Small and Formal procurement authority Thresholds.pdf

The State of Oregon recently passed Senate bill 1047, allowing state agencies to increase small dollar purchase amounts up to $25,000 and the Formal threshold to $250,000, marking the first major increase since 2003. Local public agencies governed under Oregon Revised Statute (ORS) have the option to adjust their purchasing rules to match or stay within the state amounts. Central Finance and purchasing leaders are recommending increasing the small dollar/direct pay threshold to $25,000 due to increased costs of goods and services. They also suggest raising the Formal dollar threshold to $250,000 to accommodate rising costs and reduce workload. The proposed changes come with updates to fiscal systems, administrative procedures, and training efforts. If approved, the implementation is scheduled for around July 2024 to allow for necessary updates and communication across the county.