The University of Tennessee, Knoxville

Tennessee County Municipal Advisory Service

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Purchases Exempt by the Purchasing Law

Reference Number: MTAS-1631
Tennessee Code Annotated
Reviewed Date: October 12, 2015
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The following city purchases are exempt from competitive bidding and public advertisement requirements according to the 1983 Municipal Purchasing Law:

  • Products and services available only from a single source of supply and those of a proprietary nature (brand name products made and marketed by one having the exclusive right to manufacture and sell);
  • Purchases, leases and lease-purchases of real property;
  • Emergency purchases; however, there are certain reporting requirements when this exemption is used;
  • Purchases, leases, and lease-purchases of $1,000 or less in any fiscal year do not require public advertisement or competitive bidding. Although not required, it is recommended that you try to get the best deal by soliciting price quotes; and
  • Purchases, leases, and lease-purchases of more than $1,000 but less than $2,500 do not require public advertisement but do require, whenever possible, at least three competitive quotes. The $2,500 threshold may be lowered or increased up to $10,000 by the municipality’s governing body. [1]

 


[1] Cities with populations of not less than 40,000 nor more than 42,500 or populations over 150,000, according to the 2000 federal census or any subsequent census may increase the minimum dollar amount required for public advertisement and competitive bidding to $25,000, provided that purchases between $10,000 and $25,000 are based upon three competitive bids (quotes).

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