Sealed Competitive Bids and Public Advertising Threshold

Tenn. Code Ann. § 12-3-1212 allows counties, municipalities, utility districts, local education agencies, or other local government entities 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, municipalities, utility districts, local education agencies, and other local government entities with non-centralized purchasing or centralized purchasing 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.

Purchases of like items must be aggregated for the purpose of the applicable threshold.

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.