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PURCHASING GUIDELINES <br /> 2.3.2 —Avoiding Thresholds <br /> Requirements must not be divided so as to constitute a lesser threshold under this <br /> section. <br /> 2.3.3 —Annual Cost <br /> Closely related goods will be considered as one purchase on an annual basis when <br /> determining which threshold applies. <br /> 2.3.4 —Total Cost <br /> The total cost of goods or services, including any applicable taxes, freight, set-up, or die <br /> charges, shall be considered when determining which threshold applies. <br /> 2.3.5 — Total Quantity <br /> Requirements for the total quantity of an item shall be considered together when <br /> determining which threshold applies. <br /> Example: <br /> If one pump is to be purchased now at an estimated cost including sales tax and <br /> delivery of$8,959, but a total of three pumps are expected to be purchased during the <br /> year at an aggregate cost of $26,877 ($8,959.00 times three), then the procurement of <br /> the first pump falls within the $10,000 to $99,999 category. <br /> 2.3.6 — Items Used in Conjunction <br /> If two or more items are designed or intended to be used in conjunction with each other, <br /> the total accumulated costs of all such items shall be considered together to determine <br /> which threshold applies, unless these components are not available from a single <br /> supplier. <br /> Example: <br /> Water meter covers and lids are usually used in conjunction with each other. Estimated <br /> requirements for the calendar year are: <br /> Quantity expected <br /> to be acquired over Description Unit Price Total <br /> the year <br /> 250 Standard water meter covers with $50.00 $12,500.00 <br /> small insert lids <br /> 250 Heavy duty water meter covers $39.46 $9,865.00 <br /> with small insert lids <br /> 250 Small insert lids for standard and $3.75 $937.50 <br /> Page 7 of 25 <br />