Low value and high value purchases: procurement process
Procurement process for low value and high value purchases for government and public sector entities.
The Government of Nova Scotia follows different procurement processes depending on the threshold of what’s being purchased.
If a standing offer doesn’t exist, government and public sector entities need to buy goods, services or construction using the procurement process for low value purchases or high value purchases depending on the value of the contract.
Low value purchases
Purchases under $2,500
For purchases under $2,500, government and public sector entities need to use an existing standing offer. If a standing offer doesn’t exist, they can approach a business directly.
Purchases between $2,500 and $9,999
For purchases between $2,500 and $9,999, government and public sector entities need to use an existing standing offer. If a standing offer doesn’t exist, they need to get competitive quotes from 3 or more suppliers that can provide the goods or services they need. They ask for a price, timeline and anything else that’s important to meet their purchasing needs. Procurement isn’t involved in the purchasing process.
Purchases $10,000 and over
For purchases $10,000 and over, government and public sector entities need to use an existing standing offer. If a standing offer doesn’t exist, they need to use an invitational competition or an open competition (formal tender) depending on the value of the contract.
If the value of goods is between $10,000 and $33,399 there’s an invitational competition. There’s also an invitational competition if the value of services or construction is between $10,000 to $133,799. An invitational competition is when Procurement issues an invitation to submit a bid to at least 3 suppliers. Procurement coordinates invitational competitions for government and public sector entities.
High value purchases
For purchases over $10,000, government and public sector entities need to use an existing standing offer. If a standing offer doesn’t exist, they need to use an invitational competition or an open competition (formal tender) depending on the value of the contract.
If the value of goods is over $33,399, there’s an open competition. There’s also an open competition if the value of services or construction is $133,800 or more. An open competition is when any business can submit a bid. Procurement advertises the tender (open competition) on Nova Scotia Tender Notices.