Federal and State Procurement Thresholds
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Procurement thresholds determine what action is required based on the estimated cost of the item being procured. If an item is estimated to exceed a certain amount, it is important for the subrecipient to ensure they comply with that threshold’s requirements. If your purchase exceeds the procurement threshold, PTN must give concurrence to the procurement prior to the issuance of a solicitation.

To start, it is important to understand that federal procurement thresholds are moderately higher than most states.  In Texas, for example, the state’s procurement threshold amount is lower than FTA’s. This is possible because states are allowed to enact stricter threshold requirements than the federal government. Therefore, when conducting a transit-related procurement within the state of Texas, the procurement thresholds are the following:

Cost Amount Texas Threshold Process
Micro Purchase $3,000 or less Purchase of good, services, or equipment with a total cost of $3,000 or less do not require quotes or offers from at least three sources but are to be distributed equitably among qualified suppliers.
Small Purchase $3,001 to $24,999 Purchases within this threshold require the solicitation of quotes or offers from at least three sources.
Small Purchase $25,000 to $50,000 Subrecepients not covered by the government or local government code are required to complete a procurement if the Independent Cost Estimate (ICE) is in-between this range.
Formal Solicitation Process Over $50,000 Subrecepients covered by the government or local government code are required to complete a procurement if the ICE is in-between this range.

*Important: Purchases cannot be split up to stay underneath the procurement thresholds. For more information, see 43 TAC §31.44 Procurement Requirements.




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