Rancho Cucamonga

Our informal bid is $1500.00 - $20,000.  At least, three quotes needed.  $1500.00 to 10, 000 usually telephone quotes, 10K to 20K, RFQ.

Santee

The informal threshold for obtaining multiple quotations here at City of Santee is $1,500.  Formal procedures are required at $20,000 and above.

San Luis Obispo

First, we have purchasing "guidelines," not rules.  And our guidelines clearly state that we should use competitive bidding whenever feasible.  So, $0 to $5,000 is just a range.  At the lower end, there is less need to get informal quotes (we call this "open market bidding"), whereas there is more value at the higher end.  In short, we often do "informal bids" for purchases less than $5,000 - not because we "have to," but because it's a good idea.  And with increased use of catalog and Internet purchasing, higher thresholds also become necessary.

Secondly, it's a question of trusting your staff to make the best purchasing decisions.  And recognition that these smaller purchases (even at $5,000 each) constitute a lot of your transactions (and effort), but very little of your overall costs.  After you back-out things that aren't part of the "informal" purchasing process" anyway, like . . . .

o  staffing (easily 80% of your operating budget to begin with)
o  insurance
o  consultant services
o  telephones and utilities
o  training
o  debt service
o  construction projects
o  things you can buy through cooperative purchasing (like tires, computers, office supplies and paper)
o  and "formal" bid items . . . . . 

. . . . I would be surprised if these smaller transactions (even if defined as high as $5,000) account for more than just 1% or 2% of your total costs.  So why spend more energy on this than it's worth?

W. Hollywood

Under $1,000 no bids required (purchase orders not required)
Purchases over $1,000 (purchase orders are required)
For purchases $1,001 to 5,000 three verbal or written quotations are required
For purchases $5,001 to $10,000 three written quotations are required
Purchases over $10,000 formal bid process is required

Whittier

oral quotes $500 - $5000 , written quotes $5000 - $10,000, written specs $10,000 - $30,000, Advertise with written specs $30,000 to $50,000, formal bids over $50,000

Palo Alto

As you will note, we have a $3,000.00 threshold for PO. 
 
From my cursory understanding, justification is to have a reasonable control
threshold yet provide flexibility to departments to purchase day to day items without the extra work of generating paper work via PO. It makes sense since most of the regular purchases tends to be repetitive, hence the departments have established reliable, cost effective suppliers.
 
The fact that our budget is three times ($107 million +) that of Campbell probably has a influence.  Imagine how may PO's would have to be generated for purchase of $500 - $3,000.

Chula Vista

Our threshold for obtaining informal quotes is $10,000. We justify the higher limit (greater than $500) as follows:

1)	Approximately 87% of all purchase orders issued are for less than $10,000. Total value of orders issued for less than $10,000 account for about 10-12% of overall expenditures. We try to concentrate more on the higher value orders in that they are the ones that have a greater impact on the budget.

2)	In general, when a bid is valued at $500 or more, a written quote is requested.

3)	Orders under $10,000 are usually MRO (maintenance, repair, and operations) type requirements that are fairly straightforward, are needed quickly, and can be processed with relatively little effort.

4)	Our seasoned buyers are aware of fair market pricing and may request alternative quotes at their discretion.

Santa Monica and Palmdale

For the City of Santa Monica in California, the following bid thresholds apply:

0 - $1000.00 - No Bids Required - any vendor is fine
$1001.00 - $25,000.00 -  Informal Bid Process - 3 bids required possible
$25,001.00 and above - Formal Sealed Bid Process - 3 bids required whenever possible
These guidelines are set forth in our City code.

Berkeley

$3,000 or more for informal quotes. $25,000 or more for formal bid. Everything over $500 receives scrutiny as to why it was not offered to (informally quoted by) a Berkeley-based business.
 
Ventura Regional Sanitation District

Under $5,000 - buy on open market, look for best availability & price, but no bids required
 
For supplies, services & equipment:

$60,000 & under informal bids using advertising, telephone/FAX or written request; try to get 3 bids.

Over $60,000 formal bids with published notice, sealed bid opening, award of bid, etc.
 
For consultants:

$75,000 & under informal proposals same as above.
Over $75,000 formal proposals for qualification by selection committee, contract negotiation, etc.
 
Capital & construction:

Public Contract Code applies to public projects.  Formal bids, bonds, insurance, etc.
 
General Manager has contracting authority up to $25,000; over $25,000 requires Board of Directors approval.  Authorization shall be in the form of an adopted District budget which includes such supplies, equipment and/or services or other specific Board action.  Equipment must be specifically itemized in the approved budget or must be approved by the Board at the time of award of bid. 
 
We provide specialized services by contract to many other public agencies and require great flexibility in order to respond quickly to any situation (sewer or water line breaks, etc.).  We have private competitors and must function like a business, not like a government.  
 
Small $$ purchases ($5,000 & under) can be competitively shopped by telephone/FAX and paid with District purchasing card (MasterCard).  That way time is not wasted on purchase requisition, purchase order, invoice approval, check payment, A/P filing, etc.  Equipment costing $4,000 or less
is expensed; over $4,000 is capitalized & depreciated. 

Temecula

Equipment/Materials/Services:
Under $2500 - outright purchase no quotes required $2501-$10,000 - Informal quote procedures required using a min of 3 quotes.  Over $10,000 - Formal Bid or RFP procedures required. If purchase is over 25,000 Council approval required.

Professional Service
Under $25,000 - approval based on qualifications PSA approved by City Manager.  Over $25,000 - approval based on qualifications - formal bids not necessary unless department requests - PSA approved by City Council

Maintenance
Under $5,000 - outright purchase no quotes required
$5,001 - $25,00- Informal quotes required. Approved by City Manager
Over $25,000 - Formal Bid / RFP procedures required. Approved by City Council

Public Works Construction Contracts
Under $25,000 - proceed as needed no quotes required. Approved By City Manager
$25,000-$75,000 - Informal quote procedures in accordance with Public Contracts Code - Approved By City Council
Over $75,000 Formal Bid Procedures required. Approved by City Council

Santa Clarita

Our Accounting Manager passed your request on to me.  The California Association
of Public Purchasing Officers has a network that has discussed this issue in the
past.  I developed a spreadsheet of the information submitted to the network in
January of 1999 and updated it as an agency submitted new information.  I've
attached it in Excel 97 format.  It should answer all of your questions except
the one concerning justification for thresholds higher than $500.  You can
identify those with the higher threshold and contact them directly for that
information.  The City of Santa Clarita established the higher threshold in the
interests of uniformity.  When our fixed asset threshold was changed to $1,000
we changed the quote and purchase order threshold to match.  If you have any
other questions or problems with the file please contact me.

Porterville

The City of Porterville uses informal quotes for goods or services between $500.00 and $5,000.00.  Over $5,000.00, we go to a formal (sealed) bidding process.

Mission Viejo

Our threshholds are as follows:

Supplies and Equipment:
<$1000 - no bidding required; dept head awards
<$5000 - informal bidding required; dept head awards bid
<$15000 - informal bidding required; City Manager awards bid
>$15000 - formal bidding required; Council awards bid

Public Works Contracts:
<$1000 no bidding required; dept head awards
<$5000 informal bidding required - dept head awards bid
<$15000 - informal bidding; City Mgr awards bid
<$75000 - informal bidding required (Uniform Cost Accounting rules); Council awards bid
>$75000 - formal bidding required; Council awards bid

Professional services:
RFP required when "time and circumstances permit"
<$15000 - staff selects successful proposer
>$15000 - Council selects successful proposer

Purchasing Ordinances was changed to authorize higher limits and was  justified based on inflation and cost/benefit to bidding (cutoff was previously $10000 instead of $15000) and also due to implementation of Uniform Cost Accounting Act rules.

Thousand Oaks

The City of Thousand Oaks just increased the threshold to $3,000.  The way we justified it was that in a study of all purchase orders issued, 40% were between $1,000 (our old limit) and $3,000.  We found that going through the three bid process and then moving them through Finance for final approval (Purchasing is decentralized in this City) was adding little value to the purchase for smaller items.  Finance purchasing staff could better use their time consolidating purchases of like items citywide and getting better prices that way.  Also, many of these purchase orders were confirming orders which was out of compliance with our existing ordinance. 

Clovis

Our purchasing thresholds are as follows:
    Under $2,500 Department Heads may purchase on the open market.
    From $2,500 to $10,000 Department Heads may purchase with at least 3
informal quotes.
    From $10,000 to $25,000 the City Manager may approve but formal bids
are required.
    Above $25,000 the City Council must approve.
 
These limits were approved by the City Council.  The justification is
that it is more efficient to allow purchases without much red tape up to
$10,000.  We found it very cumbersome to operate requiring bids on
purchases above $2,500, which was our old threshold.  For instance, the
way our computers are configured the cost for one is above $2,500.  It
didn't make sense to require a bid process for one computer.

Paso Robles

Department managers may make any purchase up to $2,500 except operating
capital (because our threshold is $2,000 for capital).  They are encouraged
to get three quotes.  For purchases between $2,500 and $5,00, DM endeavor to
get three informal written quotes.  City Manager must authorize all
purchases above $2,500.  For purchases above $5,000, DM must use competitive
bidding, meaning formal, advertised bids.
 
Why no formal process under $2,500/$5,000, our DM s/b responsible, mature
adults who can manage their operations w/o undue governmental red tape.
Let's get the job done and provide quick, efficient public service.