However, if the Hospital has budgetary constraints even though they need 8 of these items in total, they only have the funds for 4 this fiscal year, and will have more funds to purchase the other 4 in the next fiscal year, the hospital should document its file to show that making 2 separate purchases in 2 different fiscal years was not to avoid the Public Bid Law.

If the item is on the Hospital's GPO, the hospital can buy all 8 without having to bid it. Allowing hospitals to purchase items via cooperative purchasing is an exception to the Public Bid Law. If the Hospital purchases the 8 items from their GPO, it should document its file with the GPO contract number for the item, etc. to show why the Hospital did not bid out the purchase.

Buying off of a State contract is also an exception to the Public Bid Law that is similar to buying from the GPO. If the item is on State contract, the Hospital can buy the item from the State vendor or it can buy the exact same item for the same price from a local vendor without having to bid it out. If the Hospital buys the items off of a State contract, it should document its files with the State contract number, etc. to show why the purchase was not bid out.