Printed on: 05/25/2018. Please go to http://policy.umn.edu for the most current version of the Policy or related document.

APPENDIX TO POLICY

Purchasing Thresholds

For purchases $10,000 and over, University purchasers must have answers to these 3 questions:

  • Basis for Contractor or Supplier Selection- What relevant factors made you select this supplier over all others who can supply the same thing?
  • Basis for the price- Is the price a published price per unit (goods), or is the price calculated on a breakdown of tasks and hours with hourly rates (services)? Or what other basis is used for arriving at a price for this purchase?
  • Assurance of Reasonable Price- How do you know the price is reasonable? By comparison to other published prices for the same thing (goods)? By reviewing the supplier’s estimate of hours for reasonableness and checking to see if supplier’s rates are consistent with current market rates (services)?

If using a competitive process to select a supplier:

Selecting a supplier/contractor based on a competitive process is the best way to document the answers for the above 3 questions.

  • Goods and services and professional services $50,000 and up- Purchasing performs Request for Bid/Proposal process.
  • Goods and services $10,000 to $49,999- Department completes a Price and Supplier Justification form,.
  • Goods and Services purchased from University-Wide Contractsuppliers, U Stores catalog suppliers, and Internal Service Organizations (ISO) do not require documentation.

If not using a competitive process to select a supplier:

If a competitive process is NOT used to select a supplier/contractor, departments must document answers to the 3 questions as follows:

  • Goods and services $50,000 and up- fill out a Request for Exception to Regents Purchasing Policy form (Word) and attach it to your requisition for Purchasing review and approval.
  • Goods and services $10,000 to $49,999- Department completes a Price and Supplier Justification form.
  • Goods and services $0 to $9,999– Department selects supplier.
  • Professional services $50,000 and up– fill out a Request for Exception to Regents Purchasing Policy form (Word) and attach it to your requisition for Purchasing review and approval.
  • Professional services $0 to $49,999- answer the questions on the Professional Services Information Sheet (PSIS) and attach to your requisition transaction.

Goods and Standard Services

Dollar AmountConditionsAuthorized Buyer
$0 - $9,999 Purchases $0 - $9,999 - Department selects supplier.
$10,000 - $49,999 Purchases $10,000 - $49,999 - If not being purchased from U Market, or other ISO, department completes the Price and Supplier Justification form and attaches form to the requisition or purchase order.
$50,000 - $249,999 For purchases not on U-Wide contract, Purchasing Services will attempt to obtain at least three written bids or proposals.
More than $250,000 Purchasing Services will attempt to obtain at least three written bids or proposals.

For purchases $1,000,000 and up, Purchasing Services will submit the proposed purchase to the Regents for approval, prior to issuing award.

Professional Services

Dollar AmountConditionsAuthorized Buyer
$0 - $49,999 Complete the Professional Services Information Sheet (PSIS) and retain as an attachment to the requisition.
$50,000 - $249,999 For purchases not on U-Wide contract, Purchasing Services will attempt to obtain at least three written bids or proposals.
More than $250,000 Purchasing Services will attempt to obtain at least three written bids or proposals.

For purchases $1,000,000 and up, Purchasing Services will submit the proposed purchase to the Regents for approval, prior to issuing award.

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