Can a Mississippi school district treat an online shopping cart printout as a competitive bid for purchases between $5,000 and $50,000?
Plain-English summary
The Monroe County School District superintendent asked a practical question: with online shopping growing, can a school treat a printed-out screen showing an item "in cart" with a price as a competitive bid? Some online stores don't offer signed quotes; some allow purchase orders.
Section 31-7-13(b) is the state's purchasing statute for purchases over $5,000 but not over $50,000. It eliminates the formal advertised-bid requirement, but requires "at least two (2) competitive written bids" before purchase from the lowest and best bidder.
The statute defines "competitive written bid" specifically:
a bid submitted on a bid form furnished by the buying agency or governing authority and signed by authorized personnel representing the vendor, or a bid submitted on vendor's letterhead or identifiable bid form and signed by authorized personnel representing the vendor.
Bids can be by fax, email, or other generally accepted method. Electronic bids don't need a signature unless the agency requires one.
A printed online shopping-cart screen is neither (1) a bid on the agency's bid form signed by the vendor, nor (2) a bid on the vendor's letterhead or identifiable bid form signed by the vendor. So it doesn't qualify.
The opinion is narrow: it addresses only the general application of subsection (b). Other Section 31-7-13 exemptions exist (specific commodities, emergencies) and the Department of Finance and Administration may have additional rules under Section 31-7-5.
What this means for you
For school superintendents and school business managers
Don't use online cart printouts as competitive bids. For purchases between $5,000 and $50,000, get either:
- A bid on your district's bid form (you supply, vendor fills in and signs)
- A bid on the vendor's letterhead or identifiable bid form (vendor supplies, signed)
Email or fax is fine. Electronic submissions don't need a signature unless your district policy requires one.
For online vendors that don't issue signed quotes:
- Ask for a written quote on company letterhead via email
- Most reputable online sellers will provide one on request
- Save the email exchange showing the quote was authorized
- If a vendor cannot or will not provide a proper bid, use a different vendor
For purchases that fit a Section 31-7-13 exemption (e.g., emergency, sole-source, specific exempt commodities), the bid requirement may not apply. Check the exemption's specific rules and document the basis.
For public purchasing officials generally
The "screen capture as bid" approach is unsafe even if convenient. Auditors will reject it; bid protests can succeed; and you risk personal liability for non-compliant purchasing.
Adopt a written purchasing procedure that requires:
- Documented bid solicitation (RFQ to multiple vendors)
- Bids on agency form or vendor letterhead
- Two-bid minimum for purchases >$5,000 and ≤$50,000
- Award to lowest and best bidder
- Documentation in purchase file
For repeat purchases at the same price point, consider state-contract purchasing (where Section 31-7-13 generally exempts purchases from state-contract pricing) or term contracts after a formal bid process.
For State Auditor personnel
When reviewing public purchases between $5,000 and $50,000, look for:
- Two competitive written bids in the file
- Each bid in proper format (agency form or vendor letterhead, signed)
- Documentation of award to lowest and best bidder
- Procurement decision in minutes (where applicable)
Reject screen captures, marketing material, or unsigned ordering screens as bid evidence.
For DFA staff
The opinion cross-references Section 31-7-5 (DFA rule-making authority). DFA may want to issue guidance specifically addressing online purchasing for public agencies, since this question is going to repeat across school districts and other public bodies.
For online retailers selling to public agencies
If you're selling to Mississippi public agencies in the $5,000-$50,000 range, prepare to provide written quotes. A simple branded quote on company letterhead, emailed to the buying agency, satisfies Section 31-7-13(b). Make this a standard offering for public-sector customers.
If your sales platform doesn't support letterhead quotes, build a template the sales team can email. Government purchasing is a meaningful market segment that requires this format.
Common questions
Q: What about purchases under $5,000?
A: Section 31-7-13's general bid requirements don't apply to purchases at or below $5,000. Local agency policy may still require comparison shopping or other documentation.
Q: What about purchases over $50,000?
A: Section 31-7-13 requires advertised, sealed-bid procedures. The "two competitive written bids without advertising" path applies only to purchases over $5,000 but not over $50,000.
Q: Can I use a state contract instead of bidding?
A: Generally yes. Section 31-7-13 has exemptions for state-contract purchases. Buying off the state contract typically satisfies the procurement requirement without separate bids. Verify the contract is current and the item is on it.
Q: What is "lowest and best bidder"?
A: Lowest price plus consideration of quality, delivery, vendor reliability, etc. The "best" qualifier allows the agency to select a higher-priced bid if the lower bid fails on non-price factors. Document the rationale.
Q: Can the agency use an online quote tool that generates a PDF?
A: A PDF that includes the vendor's letterhead/identification, the price, the item description, and the vendor's authorized signature is closer to a proper bid. A printout of an item "in cart" without a vendor signature or letterhead is not.
Q: What if the vendor refuses to sign anything?
A: Then the vendor isn't providing a competitive written bid under Section 31-7-13(b). Use a different vendor, or use one of the statutory exemptions if applicable.
Q: Does email count as electronic transmission?
A: Yes. Section 31-7-13(b) explicitly allows email submissions. The signature requirement is waived for electronic submissions unless the agency separately requires it.
Q: What's the consequence of using an improper bid?
A: Audit findings, potential demand from the State Auditor for recovery from the responsible official, and potential bid protests by competing vendors. For schools, audit findings can affect funding and accreditation.
Q: What about emergency purchases?
A: Section 31-7-13 has emergency exemptions. Document the emergency, the necessity for immediate purchase, and the steps taken to get reasonable pricing. The exemption is not a free pass; it requires documentation.
Q: Can the agency adopt its own bid form policy that's stricter than the statute?
A: Yes, agencies typically can impose additional requirements (e.g., requiring electronic signatures, longer quote validity periods). The statute is a floor; agency policy can raise the bar.
Background and statutory framework
Mississippi's public purchasing law is centered in Title 31, Chapter 7 of the Mississippi Code:
- Section 31-7-1 et seq.: general procurement framework
- Section 31-7-5: DFA rule-making authority for purchases
- Section 31-7-13: purchasing thresholds, bid procedures, exemptions
For purchases above $5,000 but not above $50,000, Section 31-7-13(b) creates a streamlined "two competitive written bids" procedure. This avoids the cost and time of advertised bids while still providing competition.
The statute defines "competitive" carefully: bids "developed based upon comparable identification of the needs and are developed independently and without knowledge of other bids or prospective bids." This rules out collusive bids or bids where one vendor's price is shared with another.
The "competitive written bid" definition is precise: agency form or vendor letterhead, signed by authorized personnel. Electronic transmission allowed; signature requirement waived for electronic unless required by the agency.
Section 31-7-13 also has many specific exemptions:
- State-contract purchases
- Sole-source items
- Emergency purchases
- Specific commodity categories (e.g., perishables, fuel)
- Professional services
- Used equipment
- Items at auctions
The opinion declines to address those exemptions because the inquiry was about the general subsection (b) framework, not whether any specific exemption might apply.
DFA's Section 31-7-5 rules can supplement the statute with detailed procurement procedures. Public agencies should consult both the statute and current DFA rules.
Citations and references
Statutes:
- Miss. Code Ann. § 31-7-5, DFA purchasing rules
- Miss. Code Ann. § 31-7-13, purchasing thresholds and procedures
- Miss. Code Ann. § 31-7-13(b), $5,000-$50,000 competitive written bid requirement
Source
- Landing page: https://attorneygenerallynnfitch.com/divisions/opinions-and-policy/recent-opinions/
- Original PDF: https://attorneygenerallynnfitch.com/wp-content/uploads/2022/05/B.Jernigan-May-26-2022-Competitive-Written-Bid-under-Section-31-7-13.pdf
Original opinion text
May 26, 2022
Brian Jernigan
Superintendent of Education
Monroe County School District
Post Office Box 209
Amory, Mississippi 38821
Re: Competitive Written Bid under Section 31-7-13
Dear Mr. Jernigan:
The Office of the Attorney General has received your request for an official opinion.
Background
In your request, you assert that there is an increase in online product availability, more often at a lower price. You further state that certain online businesses do not offer a signed quote, but some do allow purchase orders where payment is not rendered until the product is received.
Question Presented
Is a printed cost with a description of an item "in cart" an allowable quote for local education agencies to make purchases that are over $5,000 but less than $50,000 pursuant to Mississippi Code Annotated Section 31-7-13(b)?
Brief Response
No. Section 31-7-13(b) defines two specific and detailed types of "competitive written bids" that are acceptable for a purchase over the amount of $5,000 but not over the amount of $50,000. A printed cost with a description of an item "in cart" is not one of the "competitive written bids" contemplated by or allowed by the statute.
Applicable Law and Discussion
Section 31-7-13(b) eliminates the need for publishing or posting an advertisement for bids where the purchasing agent is expending more than $5,000 but not more than $50,000. According to that statute, purchases costing an amount within those parameters may be made from the lowest and best bidder without publishing or posting advertisements for bids so long as at least two (2) competitive written bids are obtained prior to making a purchase. Miss. Code Ann. § 31-7-13(b). The statute further provides, in pertinent part:
The term "competitive written bid" shall mean a bid submitted on a bid form furnished by the buying agency or governing authority and signed by authorized personnel representing the vendor, or a bid submitted on vendor's letterhead or identifiable bid form and signed by authorized personnel representing the vendor. "Competitive" shall mean that the bids are developed based upon comparable identification of the needs and are developed independently and without knowledge of other bids or prospective bids… Bids may be submitted by facsimile, electronic mail or other generally accepted method of information distribution. Bids submitted by electronic transmission shall not require the signature of the vendor's representative unless required by agencies or governing authorities.
Miss. Code Ann. § 31-7-13(b). A printed cost with a description of an item "in cart" is neither a bid submitted on a bid form furnished by the buying agency or governing authority and signed by the vendor's authorized personnel, nor a bid submitted on a vendor's letterhead or an identifiable bid form and signed by the vendor's authorized personnel. As such, this office is of the opinion that such a printed cost is not a competitive written bid as required under Section 31-7-13(b).
Notably, there are several exemptions within Section 31-7-13 that could apply depending on the type of commodity being purchased or if there is an emergency that necessitates a purchase at the price point contemplated in subsection (b). However, this opinion is limited to the general application of subsection (b) and does not consider any of those exemptions because additional information would be necessary to opine on their specific application. Additionally, you may also wish to consult any applicable rules and regulations promulgated by the Department of Finance and Administration pursuant to Section 31-7-5.
If this office may be of any further assistance to you, please do not hesitate to contact us.
Sincerely,
LYNN FITCH, ATTORNEY GENERAL
By: /s/ Abby C. Overby
Abby C. Overby
Special Assistant Attorney General