The following policy has been established by the Contracting and Purchasing Advisory Council as created by Delaware Code, Title 29, Section 6913(a). The Council has exercised its right pursuant to Delaware Code, Title 29, Section 6913(d)(4) and has established thresholds relating to formal bidding procedures in the areas of Material and Non-Professional Services, Public Works and Professional Services. The Delaware Code is available online.

Agencies are only required to use formal bidding procedures when a purchase is made in an amount that exceeds the threshold limit.

Purchasing Area Threshold Effective Date
Material and Non-Professional Services * $25,000 10/16/1996
Public Works $100,000 10/01/2011
Professional Services $50,000 11/01/1996
* dollar amount is a yearly cumulative amount

For public works construction projects with an estimated value greater than $100,000, the Division will post an Advertisement for Bids on the State's Bid Solicitation Directory

The Advertisement for Bids contain a brief description of the work and where the project is to take place. In addition, the advertisement provides information on the time and place of the pre-bid meeting (usually mandatory), the time and place of the bid opening and how to obtain bid documents.

For purchases that are less than the established threshold, the following procurement procedures apply:

Material and Non-Professional Services
Less than $10,000
Open Market Purchase
$10,000 - $24,999
Three Written Quotes
$25,000 and over
Formal Bid

Public Works
Less than $50,000
Open Market Purchase
$50,000 - $99,999
Three Letter Bids
$100,000 and over
Formal Bid

Professional Services
Less than $50,000
Open Market Purchase
$50,000 and over
Per Title 29, Section 6981-82

Projects with an estimated value between $50,000 and $99,999 do not require an Advertisement for Bid. In this case, the Division is required to solicit competitive, written proposals from a minium of three contractors. These contractors are usually selected based on past performance and experience on projects of similar magnitude.

Performance bonds and payment bonds may be waived if the contract is less than the established threshold and with the approval of the Division Director.

The Division is not required to solicit competitive, written proposals if the value of the project is estimated at less than $50,000. However, in many instances, more than one contractor is contacted to create competition and promote fairness.