Important Changes to Purchasing Laws in Tennessee

Public Chapter 1016

Effective May 11, 2022, Public Chapter 1016 allows counties having centralized purchasing and a full-time purchasing agent, by resolution of the governing body, to increase the threshold amount over which public advertisement and sealed competitive bids or proposals are required to $50,000 for nonemergency, nonproprietary purchases.  The law provides that a full-time purchasing agent is someone that devotes 100% of the person’s working time to purchasing.

In addition, counties with non-centralized purchasing or counties without a full-time purchasing agent, by resolution of the governing body, may increase the threshold over which public advertisement and sealed competitive bids or proposals are required to $25,000 for nonemergency, nonproprietary purchases.

The law requires local governments to get at least three written quotes, when possible, for purchases costing less than the bid threshold but more than 40% of such bid threshold or a lower amount as may be established by the governing body in a resolution.

Public Chapter 1036

Public Chapter 1036 allows the county road department or chief administrative officer to make any purchase costing less $25,000 in the open market without newspaper notice. However, the road department or chief administrative officer must obtain at least three competitive bids when possible. The law became effective May 11, 2022.

For more information about purchasing, do not hesitate to contact your CTAS County Government Consultant.