SMALL PURCHASE (13-1-125 & 13-1-91 NMSA, 1978) Small purchases usually consist of furniture, fixtures, equipment, materials, supplies, etc and also include contractual professional services and construction costs all within the set price limits. Section 13-1-125 NMSA 1978 sets the price limitations and requirements for small purchases. Below is a guide and recommendations for how a land grant-merced can comply with the procurement code as it relates to small purchases.
If the small purchase if for services the first thing the land grant-merced must do is comply with the New Mexico State Use Act. Please see page on New Mexico State Use Act for more information.
1. A land grant-merced can do a direct purchase of items, services and construction provided that the value of such a purchase does not exceed $10,000.00. The land grant-merced should issue a purchase order for items under the expense limit based upon the best obtainable price. Any tangible items of personal property, services or construction valued above $10,000 require that the land grant-merced put out a Request for Proposals (RFP) before purchasing an item or awarding a contract for services or construction. If a land grant-merced has adopted small purchase regulations then they are eligible to increase the small purchase cap from $10,000 to $20,000. The $10,000 or $20,000 cap does not apply to certain professional services (see item 2 below). For more information on the RFP process for items, services and construction please see the section on Competitive Sealed Bids below.
2. A land grant-merced can procure most professional services without going through a formal RFP process for professional services having a value not exceeding $50,000. This cap is excluding applicable state and local gross receipts taxes. This cap does not apply to professional services for landscape architects or surveyors for local public works projects. Those services must not exceed a value of $10,000 in order for no RFP to be required.
When procuring professional services where no RFP is required the land grant-merced shall obtain no fewer than three (3) written or oral quotes. All written quotes as well as documentation of oral quotes must be kept and in the procurement file. If three quotes cannot be obtained, document the reasons and include with the rest of the file. The procurement file shall be kept for a period of at least 5 years.
When professional services are procured it is important that the land grant-merced prepare and execute a contract that includes the scope of work, delivery of service schedule and terms of compensation.
Any professional service valued at more than $50,000 ($10,000 for landscape architecture or surveyors) requires that a formal request for proposal process be conducted. For more information about RFP’s for professional services please refer to the sections below on Competitive Sealed Proposals and Competitive Sealed Request for Qualification Proposals.
3. It is important to note that a land grant-merced cannot divide any purchase that is part of the same project into smaller purchases so as to constitute a small purchase. §13-1-125.D.
State law allows for an entity to specify a brand name for a product they are wanting to procure if it is done so to indicate quality, performance, or description when obtaining a quote or issuing an RFP. If a brand name is specified provisions must be made to allow for substitution of items that are equal in quality and performance. For more information on use of brand names refer to NM Statutes 13-1-33 through 13-1-34 and 13-1-165 through 13-1-168 for definitions of equivalency.
