Requirements and Thresholds

   

Those who procure on behalf of the university are charged with acquiring the best quality supplies, equipment and services at the lowest cost. To maintain economies of scale, it is necessary for the university to combine and compete like purchases.  Procurement follows two distinct tracks depending on the funding source. Please see the flow charts for university and Non-Federal Research Funds and Federal Sponsored Research Funds found at the bottom of the page.

Procurement Dollar Threshold Matrix

The following matrix lists threshold values for purchases and the actions required based on the funding source. Additional information on the actions required for each threshold also follows. Regardless of funding source, the first stop for any purchase should be iBuy+, the university’s online procurement portal for goods, services and travel.

Dollar Amount of Purchase Threshold University Funds & Non-Federal Sponsored Projects Federal Sponsored Projects (in accordance with 2 CFR 200 and FARs)
A) Under $3,500             Open-market Purchase – one quoted needed - check iBuy+ first. Open-market Purchase - one quote needed – check iBuy+ first.
B) $3,501-$25,000         Single quote needed for purchase but competition is encouraged. Three (3) quotes solicited by phone, e-mail, mail or fax by Procurement (requestor may conduct market research only). Justification required for sole-source procurements on a J&A Form from requesting division/school.
C) $25,001-$150,000     Three (3) quotes by requestor or Procurement. All quotes must be attached to the requisition if handled by the requesting division/school. Justification required for sole-source procurements and awards to other-than-the-low bidder on a Supplier Selection Memo.

Three (3) quotes solicited by phone, e-mail, mail or fax by Procurement (requestor may conduct market research only). Justification required for sole-source procurements on a J&A Form from requesting division/school.

D) $150,001 & above        Formal solicitation process by requestor or Procurement.  Justification required for entire procurement solicitation and decision process on a Supplier Selection Memo if the solicitation is not done by Procurement.

Formal solicitation process conducted by Procurement.  Justification required for sole-source procurements on a J&A Form from requesting division/school.

Purchases Exempt from Competitive Process

There are a number of purchases that are exempt from competitive source selection and may be paid through a Payment Request Form through Accounts Payable directly or by using a P-card. POs are not required for payment.

Please Remember that Federal procurements subject to the FAR that are greater than $3,500 are never allowed to be paid through a direct payment request, even if the good or service is listed below as exempt from the university’s competitive procurement process. When compliance with the FAR is required by the sponsor, the requisition to PO process must be followed.

Table A Flow chart - University Funds and Non-Federal Sponsored Projects Funds

Table B Flow chart - Federally Sponsored Projects Funds

A) Under $3,500

A purchase for services, supplies, and equipment for any item or group of similar items less than $3,500 does not require competition regardless of funding source. Schools and departments are encouraged to use the P-card for transactions below this dollar threshold. Purchases must not be split to meet this threshold. All purchases, regardless of funding source, less than $3,500 may be processed by any of these three ways:

  1. Orders placed directly with the supplier using the P-card. Payment is made using the P-card procedures.
  2. Purchases made through the traditional requisition to PO process.
  3. Request for payment directly through the Accounts Payable Department.

B) $3,500 - $25,000

A purchase for services, supplies, and equipment for any item or group of similar items less than $3,500 does not require competition regardless of funding source. Schools and departments are encouraged to use the P-card for transactions below this dollar threshold. Purchases must not be split to meet this threshold. All purchases, regardless of funding source, less than $3,500 may be processed by any of these three ways:

  • University Funds and Non-Federal Sponsored Projects: A purchase for services, supplies, and equipment for any item or group of similar items over $3,500 but less than $25,000 should be processed by using a requisition to Procurement or by P-card if payment is being made against an underlying agreement. Competition is encouraged but not required

The requesting department or Procurement can solicit the competitive quotes, but all quotes related to the acquisition should be attached to the requisition, along with a Supplier Selection Memo justifying the decision to award. Procurement will ensure that all documents are incorporated into the PO file.

  • Federal Sponsored Projects: For purchases utilizing federal dollars that have a value greater than $3,500, the Procurement Department must secure all quotes and pricing information through competitive sourcing.  Documentation required for this activity can be found in paragraph D below.

C) $25,000 - $150,000

Purchases for services, supplies, and equipment for any item or group of similar items over $25,000 but less than $150,000 from university and non-federal sponsored research, or for federally funded research over $3,000 both follow the procedure below. Purchases must not be split to avoid this threshold.

When using non-federal sponsored project funding or university funds and if the procurement process is handled by the requesting department, a Supplier Selection Memo must be attached to the requisition documenting the process followed leading to the award.

If Procurement is handling the solicitation, the requisition must give clear, precise direction and specifications to the Buyer. Procurement is happy to facilitate the solicitation process on behalf of the requesting school/department.

D) $150,000 and Above

A purchase for services, supplies, and equipment for any item or group of similar items over $150,000 should be processed as a formal solicitation in the form of an Invitation to Bid (Bid) or Request for Proposals (RFP).

Procurements of goods and services over $10,000,000 will be subject to the Major Procurement Review and Authorization policy. 

Sealed Bid(s)/RFP(s) shall be received until the date and time indicated in the document for the return of that Bid(s)/RFP(s). Any Bid(s)/RFP(s) received after the designated time shall neither be accepted nor considered for evaluation, recommendation and award. See section 5.4 for definition of sealed bid and section 5.5 for definition of RFP and their associated procedures.

Once a request for Bid(s)/RFP(s) is released, the university is under a “cone of silence.” Individuals should not discuss the requirements of the solicitation or in any way offer additional information to suppliers outside of a formal addendum to the solicitation documents. If a supplier contacts a school/department directly, that potential supplier should be referred to the appropriate representative issuing the solicitation. No verbal or written information obtained other than by the Bid/RFP documents or by an addendum to the Bid/RFP is binding on the university. 

Unless otherwise noted in the Special Conditions section of a Bid/RFP, responses received to Bids/RFPs shall not be publicly opened. Bids/RFPs will then be evaluated, tabulated, and an award recommendation made. A supplier may not proceed with filling the requirement of the Bid/RFP until a contract has been executed or a Purchase Order released to the supplier.