Guidance:

Pursuant to Chapter 55 of the Laws of 2026, the discretionary purchasing and advertising thresholds have been revised. The Guide to Financial Operations, Chapter XI.2.A Thresholds, has been updated to reflect the changes.   

Chapter XI.2.A has also been updated to reflect applicable changes to the approval thresholds for the Office of the State Comptroller (OSC), but the majority of the thresholds remain unchanged. Please see the Approval Threshold Summary Chart within Chapter XI.2.A for additional information.    

The discretionary thresholds permit contracting entities to purchase services and commodities without conducting a formal competitive process and do not affect the thresholds set forth for OSC approval. 

When conducting an informal procurement, where a formal competitive process is not required by law, the entity shall: 

1. First undertake an analysis to determine whether its needs can be met through the Preferred Source program and if so, must proceed with a preferred source procurement. 
   
   When a preferred source offering cannot meet the entity’s needs and:

   1. the procurement is for a commodity, the contracting entity must make the purchase using an OGS centralized commodity contract if it meets the entity’s form, function, and utility needs. 

   2. the procurement is for a service or technology, the contracting entity, except state agencies where the head of the agency is not appointed by the governor, must make the purchase using an OGS centralized services or technology contract if it will meet the entity’s form, function, and utility needs.

2. Ensure that the commodities and services acquired meet their form, function, and utility needs, including relevant State law and policy requirements.
3. Determine whether there are qualified M/WBE, SDVOB, SBE, manufacturers of recycled or remanufactured commodities or technology, NYS Textiles, or NYS food or milk producers, to provide the products or services requested. 
4. Document and justify the selection of the bidder. 
5. Document and justify the reasonableness of the price to be paid. 
6. Buy only from a responsible bidder.
7. Comply with the contracting entity’s internal policies and procedures.
8. Maximize vendor competition when feasible. 

To facilitate efficient review of contracts subject to OSC prior approval, OSC requires that contracting entities include the following with their submissions for informal procurements, where a formal competitive process is not required by law: the NYS Procurement Record and Checklist form, a contract or purchase order, documentation justifying the selection of the bidder, documentation justifying the reasonableness of the price, and the date of the award notification. Contracting entities should also include a statement identifying whether or not a bid protest was received.    
 
New York State contracting entities are also reminded to follow existing guidelines, including the vendor responsibility review process, providing funding reservation in accordance with OSC funds reservations policy, obtaining the Office of the Attorney General’s contract unit approval, and Division of the Budget Bulletin B-1184 approval requirements. 

The discretionary and advertising threshold changes are effective immediately. 

For more information, please see the links referenced below.  

References:

https://ogs.ny.gov/procurement/nys-procurement-council
https://www.osc.ny.gov/state-agencies/gfo/chapter-xi/xi2a-thresholds
https://www.osc.ny.gov/files/state-agencies/advisories/pdf/xi2-a-state-finance-law-thresholds.pdf