USA Bid Awarded to Multiple Vendors without Specified Amount

[MikeAdams]

I am in IT department of a School District in US (Public Sector) and we are asked to customize our ERP to meet a requirement. To my knowledge lot of ERP vendors do not meet this requirement, so this leads me to wonder what we are being asked is a valid business practice or not?
I would very much appreciate your expert opinion on it.

A bid is awarded with a specific amount of say 1 Million dollars to three approved vendors over a specific time period (say 3 years). Now it is not specified how much amount is awarded to each vendor out of that 1 Million dollars. It is the discretion of the buyer (based on performance of vendor ) to award how much amount he/she wants to award to the vendor. And Procurement wants us to build controls so they cannot exceed cumulative spending for three vendors by 1 Million.
This is not met out of box by our ERP. We usually can specifiy a specific amount for a vendor and the system stops to exceed issuing POs above that amount. However now our requirement is to track purahase activity for all three vendors on approved bid and stop when their cumulative purchases exceed 1 million dollar (total amount on the bid). Is this an ok practice from internal control and standard accounting/procurement practices.

I would very much appreciate your responses. !!!

 

[kirby]

Crazy requirement . Even crazier is for them to request a mod to prevent their spending over a certain limit. Why crazy? Because that limit only hits once and you would think they would be aware of when they were getting close to that one time event and could just watch for it themselves and not have to spend money to do so programatically


. Oh well this is why you get the big bucks!