What is the minimum number of vendors a state agency must contact for a price request if the contract is valued at $50K to $1M?

The minimum number of vendors a state agency must contact for a price request when the contract is valued between $50,000 and $1 million is three. This requirement is designed to ensure competitive pricing and fair market value, which is essential in public procurement. By contacting at least three vendors, agencies can obtain a range of prices and options, helping to ensure that they are making informed purchasing decisions. This practice not only promotes transparency but also encourages vendors to provide their best offers, ultimately benefiting the agency and the taxpayer.

In this context, lower numbers of vendor contacts could limit competition and increase the risk of less favorable terms, while higher numbers could lead to an unnecessary burden on agencies and delay the procurement process. Therefore, the requirement for contacting three vendors strikes a balance between fostering competition and managing the procurement process efficiently.