Ceiling raised for small purchases not requiring full procurement vetting

Pago Pago, AMERICAN SAMOA — The Procurement Office has adopted an “emergency rule” through the regulatory process of the American Samoa Administrative Code (ASAC) and it doesn’t require legislative approval, “in order to increase the threshold for small purchases,” according the agency’s notice, signed by Chief Procurement Officer (CPO), Ti’alemasunu Dr Mikaele Etuale.

The notice, first issued Aug. 17, states in part that, the CPO finds that an imminent peril to the public health, safety, or welfare requires adoption of this rule on fewer than 20 days public notice because the Health director has confirmed the community spread of COVID-19 and it is necessary to streamline the procurement process to obtain necessary resources.

Under current regulation, the ASAC, the Attorney General shall approve all government contracts for construction, leases of real property, other goods exceeding $10,000 as to legal sufficiency prior to execution, regardless of the authority for execution and administration.

The new rule increases the amount the AG approves from $10,000 to “$25,000”.

Another change to ASAC, as provided in the emergency rule, deals with small purchases in which any procurement “with a dollar value of $10,000.01 to $25,000” shall be “completed by soliciting three quotes which may be done by [the] requesting department, the Office of Procurement, or joint effort between the two.”

A new add-on provision, in the emergency rule, addresses “Micropurchases”, in which: “One quote only is required for any procurement for $10,000 or less” and “departments shall rotate vendors.”

In accordance with local regulations, the Secretary of the Senate, Leo’o Va’a Ma’o, was informed of the emergency rule in an Aug. 17 letter, along with the notice of the intended changes.

“This rule is being promulgated as an emergency rule and it will only be in effect for 120 days,” wrote Ti’alemasunu, who issued a separate notice on Aug. 18 affirming the new rule, with a copy submitted to the Lt Gov Talauega Eleasalo Ale, in his capacity as the Secretary of American Samoa, in accordance with local law and regulations.

(Copies of both the Aug. 17 and Aug. 18 notices and information can be round on the ASG website - www.americansamoa.gov - under “Notices” for August.)