DAFS/BGS Division of Purchases
Basic Commodity Procurement Guidelines

Please note: this guidance document pertains to the purchase of goods and commodities – not contracting for services, which is found on a separate guidance document.

Commodity Definition

A commodity is a good whose wide availability typically leads to smaller profit margins and diminishes the importance of factors other than price.  

Before making a commodity purchase you should ask yourself these questions: 

•	Is there a Master Agreement (MA) for this commodity on the Division of Purchases’ website http://www.maine.gov/purchases/contracts/pals.html ?  
o	If yes, and the order is for less than $5,000 a procurement card (p-card) transaction OR a Delivery Order (DO) is required. 
o	If yes and the order is for more than $5,000 a DO is required. 
o	If yes but your agency isn’t listed as a department that can use it contact the Buyer associated with the MA and request to have your agency added.
o	If no but your order is for less than $5,000 a p-card transaction or an Agency Purchase Order (APO) can be used.
•	If this is a commodity that you use on a regular basis are you spending or expect to spend more than $5,000 for in the next twelve months?
o	If yes submit a Requisition (RQS) with the commodity specifications attached so a MA can be created.
•	If there is not a MA and your one time purchase will be more than $5000 you will need to;
o	Submit a RQS and The Division of Purchases will put the commodity out to bid
OR
o	In emergency situations get three quotes submit a RQS with an attached BP37CA. http://www.maine.gov/purchases/info/forms/forms/BP37CA_Competitive_Award_Authorization_Form.doc
•	Is this a request for a printing job using an outside vendor (not Central Print)?  
o	If yes you must submit a RQS.  All print jobs must be handled by the Contract/Grant Specialist that handles printing for the Division of Purchases.  (Debbie.Jacques@maine.gov)

Items to Remember

Stacking:
Stacking is when multiple smaller dollar value purchases are made to keep the purchases within the commodity purchase guidelines. If stacking occurs the Office of the State Controllers can refuse payment requiring the agency to return the goods purchased.

Clothing Code of Conduct (COC):
Title 5, §1825-L: State purchasing code of conduct
The same purchasing guidelines apply to clothing purchases however if more than $5,000 worth of a type of clothing (gloves, jackets, shirts, boots, work clothing, ect.) are purchased or expects to be purchased over a twelve month period by an agencies statewide operations the purchase must be accompanied by a vendor completed and notarized Code of Conduct Affidavit. A MA can be created for COC commodities and the Division of Purchases will ensure a COC is on file eliminating the requirement for a COC Affidavit to accompany each agency purchase. 

Assistance:
The Division of Purchases personnel are always ready and willing to assist with any procurement questions or issues that may arise. You can contact Purchases at 207-624-7340.

RQS:  
A Requisition, or “RQS”, is the AdvantageME procurement document used to request a purchase of more than $5,000 or to request the creation of a MA. You will need to attach a set of detailed specifications for the item(s) to the RQS in AdvantageME.  Funding must be available and you will need to enter account coding in order to create a RQS.  If you want a commodity purchased from a specific vendor you will need to fill out a BP37WCB form explaining why this is the only source this item is available from and attach the form to the RQS. 

DO:  
A Delivery Order, or “DO”, is an AdvantageME procurement document for any item that is covered by a MA. DOs under $5,000 require agency/department approval only. DOs over $5,000 requires three levels of approval the last being a Purchases buyer. The DO account line(s) must use an encumbering (PR05) “event type”. The Purchases buyer will be responsible for e-mailing the orders over $5,000 to the vendor while the ordering agency will be responsible for e-mailing the order to the vendor if it is under $5,000.

APO:
An Agency Purchase Order, or “APO”, is an AdvantageME procurement document for any commodity purchase not covered by a MA and is less than $5,000. You will need to have the funding available and account coding ready in order to create an APO.  

Procurement Card Usage:
The State of Maine p-card program is mentioned above in several places.  As a general overview, the p‑card program has been established to create an efficient, time-saving method of payment for agencies and vendors alike.  The p-card may be used for commodity purchases that are less than $5,000 in total value (see Items Under $5,000 above), or certain services under $2,500 (please see “Low Cost Services Guidelines” on our website, found at: http://www.maine.gov/purchases/procurement/documents/Low_Cost_Services_Guidelines.xlsx.  In order to acquire a p-card, an applicant must review the State p-card policy, sign an agreement, complete a one-page application form, and complete a training program.  The aforementioned documents and all other details regarding the p-card program can be found on the Division of Purchases’ website at the following address:  http://www.maine.gov/purchases/procurement/index.shtml