The Department of Enterprise Services (DES) is extending current purchasing levels in the Direct Buy Policy #DES-125-03 until March 2025.
Intent of the 2020 policy update
DES increased direct buy limits in 2020 based on extensive stakeholder listening as well as market research.
The limits were increased to:
- Level 1: $30,000
- Level 2: $40,000 if the purchase is made from a small business as defined by RCW 39.26.010(22); or from a certified veteran-owned business.
The updated limits are intended to:
- Align with the statutory intent of encouraging and facilitating state agency purchases of goods and services from Washington veteran-owned businesses (RCW 43.60A.200) and small businesses (RCW 39.26.005), which in turn greatly improves opportunities for spending with certified minority- and women-owned businesses. Raising direct buy limits was a key recommendation of the 2019 Washington State Disparity Study.
- Setting exception limits that give agencies increased authority to make direct buy purchases to meet business needs, thus improving efficiency while preserving competitive solicitations for higher-risk procurements.
Data improvements
DES is committed to making data-driven decisions. When DES updated the direct buy policy in 2020, the plan included re-examining the policy in 2022 based on spending data. However, enterprise-wide data is not yet available that shows whether the new policy works as intended to encourage low-risk purchases from small and veteran-owned businesses.
After the 2020 direct buy policy refresh, DES launched a series of internal data improvement initiatives to capture DES’ own direct buy spending. Data improvements as of July 1, 2021, include:
- An updated process using Agency Financial Reporting System (AFRS) to capture the underlying procurement method to payments being made.
- A system to use purchase card data, spending through Amazon, and the contract reporting information for benchmarking.
This data is not yet available from other state agencies. Extending the policy to 2025 will allow DES to continue exploring options for collecting the enterprise-wide data needed to analyze whether the policy is working as intended.
If you have any questions about this policy, check our frequently asked questions (FAQ).
DES Contracts & Procurement | Enterprise Procurement Policy 360-407-2210| DESmiEnterpriseProcurementPolicy@des.wa.gov
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