Utah Admin. Code R354-2-104 - Division Prohibited

(1) Except as otherwise expressly provided in this rule, the Procurement Official:

(a) may not use the Small Purchase Procurement Process, described in this rule, for ongoing, continuous, and regularly scheduled Procurements that exceed the Annual Cumulative Threshold; and

(b) shall make its ongoing, continuous, and regularly scheduled Procurements that exceed the Annual Cumulative Threshold through a Contract awarded through another Standard Procurement Process or an applicable exception to another Standard Procurement Process, described in this Procurement Procedure.

(2) This rule does not prohibit regularly scheduled payments for a Procurement Item obtained under another provision of this Procurement Procedure.

(3)

(a) It is prohibited for the Procurement Official to divide a single Procurement into multiple smaller Procurements, including by dividing an invoice or purchase order into multiple invoices or purchase orders, if:

(i) the single Procurement would not have qualified as a Small Purchase under this rule;

(ii) one or more of the multiple smaller Procurements qualify as a Small Purchase under this rule; and

(iii) the division is done with the intent to:

(A) avoid having to use a Standard Procurement Process, other than the Small Purchase Process, that the person would otherwise be required to use for the single Procurement; or

(B) make one or more of the multiple smaller Procurements fall below a Small Purchase expenditure threshold under this rule that the single Procurement would not have fallen below without the division.

(b) A violation of Subsection (3)(a) is subject to penalties as provided in Subsection R354-15-104(4).

Notes

Utah Admin. Code R354-2-104

Adopted by Utah State Bulletin Number 2022-02, effective 12/28/2021