What is the consequence of splitting a single large purchase into two smaller transactions to fall under the micro-purchase threshold?

What is the consequence of splitting a single large purchase into two smaller transactions to fall under the micro-purchase threshold?

• A. Encouragement of better budgeting practices
• B. Strictly prohibited
• C. Allowed as long as proper documentation is maintained
• D. Permitted with supervisory approval

Answer: (B)

Splitting a single large purchase into two smaller transactions to remain under the micro-purchase threshold is strictly prohibited because it violates the principles of proper government procurement practices. Government regulations stipulate that acquisitions must be made in a manner that promotes full and open competition and ensures the integrity of the procurement process. When purchases are artificially divided to avoid reaching the micro-purchase threshold, it can lead to a lack of transparency in spending and undermine the accountability required in government transactions. Such actions may also circumvent the competitive bidding process that is designed to ensure fair pricing and quality for government purchases. Therefore, maintaining compliance with the established thresholds is essential in government purchasing to uphold ethical standards and promote responsible fiscal management.

Splitting a single large purchase into two smaller transactions to remain under the micro-purchase threshold is strictly prohibited because it violates the principles of proper government procurement practices. Government regulations stipulate that acquisitions must be made in a manner that promotes full and open competition and ensures the integrity of the procurement process.

When purchases are artificially divided to avoid reaching the micro-purchase threshold, it can lead to a lack of transparency in spending and undermine the accountability required in government transactions. Such actions may also circumvent the competitive bidding process that is designed to ensure fair pricing and quality for government purchases. Therefore, maintaining compliance with the established thresholds is essential in government purchasing to uphold ethical standards and promote responsible fiscal management.