State Procurement and Public Works Procedures
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 * * dollar amount is a yearly cumulative amount |
$100,000 | 2/15/2023 |
| Public Works | $250,000 | 2/15/2023 |
| Professional Services | $150,000 | 2/15/2023 |
For public works construction projects with an estimated value greater than $250,000, 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 $50,000 Open Market Purchase |
$50,000 - $99,999 Three Written Quotes |
$100,000 and over Formal Bid |
| Public Works | ||
|---|---|---|
| Less than $150,000 Open Market Purchase |
$150,000 - $249,999 Three Letter Bids |
$250,000 and over Formal Bid |
| Professional Services | ||
|---|---|---|
| Less than $150,000 Open Market Purchase |
$150,000 and over Per Title 29, Section 6981-82 |
|
Public Works projects with an estimated value between $50,000 and $249,999 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 Public Works project is estimated at less than $50,000. However, in many instances, more than one contractor is contacted to create competition and promote fairness.
