Purchasing Policies & Procedures

1. INTRODUCTION

   1. The Purchasing Department is a component of the Financial Affairs Division and reports to the Director of Procurement. The primary function of the Purchasing Department, with the authority delegated by the Board of Trustees and the President, is to procure products and/or services for all University departments, in as timely a manner as possible, in accordance with State of Alabama law and University Policy.

   2. The University is a major university with over 350 departments involved in many diverse areas of teaching, research, and service. The Purchasing Department communicates with hundreds of individuals within the University community and thousands of vendors in supplying complex, unique requirements that arise. The Purchasing Department buying staff is professional and well-trained and is eager to serve University customers. Please contact the Purchasing Department with any question or with any unique requirement you may have.

2. STATE BID LAW
   According to the State of Alabama Bid Law, section 41-16-20, “all contracts for whatever nature for labor, services, work, or for the purchase or lease of materials, supplies, or other personal property, involving seven thousand five hundred dollars ($7500) or more, made by or on behalf of any state department, board, bureau, commission, committee, institution, corporation, authority, or office shall, except as otherwise provided in this article, be let by free and competitive bids, to the lowest responsible bidder”. And as further clarified by the State of Alabama Attorney General, “when it is known or contemplated that the item purchases, involving $7500 or more will be made during the fiscal year, these items must be procured through competitive bid”.

3. IMPORTANT THINGS TO KNOW

   1. Know the rules before you buy . As a University of Alabama employee, you have flexibility in purchasing goods and services. However, the University is an instrumentality of the State of Alabama and must remain in compliance with laws affecting the expenditure of state funds. All purchase requests must follow established policies, procedures, and guidelines. A good rule to follow is to always discuss your needs with your department budget manager or involve the Purchasing Department from the very beginning of planning your purchase request. Please call with questions at any time.

   2. Don’t sign any contracts . There are only a few designated individuals at The University of Alabama who are approved by the Board of Trustees to sign contracts and legally bind the University. The Purchasing Department will review and edit contracts, consult with University Counsel, if necessary, and obtain the appropriate signatures for your contract requirements.

   3. There are two methods to place orders . There are currently two methods used to place orders – the on-line requisition/purchase order system and the University Visa Purchasing Card Program. (Miscellaneous Disbursement Vouchers are processed through Accounts Payable; see University Spending Policies for appropriate use of an MDV. All questions concerning MDV’s should be directed to Accounts Payable.)

   4. Visa Purchasing Card Program

      • For small dollar supply orders, airfare, lodging & conference registration fees

      • Does not require pre-approval from a buyer to place an order

      • Authority to purchase is delegated to the cardholder

      • Post audit is performed

      • Includes control and accountability

      • Must follow established purchasing procedures, state bid law, and spending policies

      • Orders are limited to $1,999.00 per transaction

      • Must be used for official University business

      • Monthly limit set by ordering department

      • Most services are restricted

      • Alternate process for repairs and catering

      • Visit the Purchasing Card Services website for complete details including how to obtain a card at www.purchasingcard.ua.edu

   5. On-Line Purchase Requisition System

      • Any purchase request for $2000 or more must be submitted to the appropriate buyer in the Purchasing Department by processing a purchase requisition using the Banner Purchasing System. (Note: Requisitions for less than $2000 may be created in Banner when the vendor does not accept the University Visa Card or requires a hard-copy purchase order regardless of the amount.)

        1. Upon receipt of a purchase requisition, if the buyer cannot reasonably anticipate purchasing like or similar items that cumulatively total over $7500 in a fiscal year period, the following guidelines will be followed:
           
           $2000 - $7499 If not available on an existing contract or State Contract, one written quotation must be obtained and submitted with an approved purchase requisition and a purchase order will be issued to the specified vendor.

        2. $7500 or more formal competitive bidding is required
           
           Exceptions:

           1. Products or services requisitioned are available on standing bid or State Contract.

           2. Products or services are exempt from the state bid law due to a uniqueness which classifies them as incapable of competitive bid or a unique product or service which can be considered a single source, i.e., an addition to existing equipment, repair of existing equipment, or products or services only available from the manufacturer with no dealers or distributors marketing the product or service. (See sole source form for details required for approval of a sole source request.)

           3. Situations which warrant a declaration of emergency affecting the health, safety, or convenience of the public. Such emergencies can only be authorized by the President of the University.

        3. Training is required to obtain access to the Banner requisitioning system. You may contact Human Resources Development at 8-9700 to register for Banner Training.