UIUC: Bid Limit Communication
This announcement applies to the University of Illinois Urbana-Champaign only.
Dear colleagues,
We hope this email finds you well. We wanted to take a moment to address a common question regarding the bid limits and small purchase thresholds that guide the procurement processes here at UIUC.
We understand that navigating the procurement process can sometimes seem complex or restrictive, but we want to assure you that the UIUC Purchasing and Contract Management Office (PCMO) is here to help facilitate and streamline your procurement needs effectively within the framework provided by the State of Illinois.
One common misunderstanding is that PCMO sets the procurement dollar thresholds. However, we want to clarify that these thresholds are set by State legislation, specifically outlined in the Illinois Procurement Code [30 ILCS 500/20-20].
According to this code, the Small Purchase Threshold for various categories is set as follows:
- Professional and Artistic: $100,000
- Commodities and Services: $100,000
- Construction: $100,000
Again, it is important to recognize that these thresholds are not arbitrarily decided by PCMO. Rather, they are dictated by State law, ensuring that all State institutions, including ours, adhere to a standardized set of rules for fairness, transparency, and fiscal responsibility. Exceeding the small purchase threshold without the required procurement authority is a Procurement Code violation. When a situation like this occurs, the Chief Procurement Officer will conduct a review of the project and determine whether to ratify or void a contract. This multi-month process is completely avoidable with adequate department contract administration. Each contracting department is responsible for monitoring encumbrance levels on purchase orders and notifying the PCMO when adjustments need to be made. When given reasonable notice of an issue, the PCMO will be able to provide guidance to ensure the university remains in compliance while still meeting department needs. All solicitation-level procurements (>$100,000) require a minimum 15-day advertising period. Please plan and communicate with the PCMO accordingly.
Part of the PCMO’s role is to implement these State-mandated regulations and to assist each department in navigating the procurement process within these legal constraints.
UIUC is committed to providing a safe, fair, and efficient procurement process for all departments. We appreciate your cooperation in adhering to these State-mandated regulations and look forward to working with you to meet your procurement needs.
Best regards,
UIUC Purchasing and Contract Management Office
