Purchasing Guidelines
Commodity Related Links
- Amazon Business for UA
- Approved Contracts
- Buyer Commodities
- Catering Information (Risk Mgt.)
- Licensing (T-Shirts, Novelties, etc.)
- Rental Car Self Insurance Certificate
- Sam’s Club – UA Membership Info
- Scientific Supplies & Equipment
- Vehicle Purchase Request Form
- Cart Purchase Request Form
- Charter Bus Requests
- Uniforms
Official Policy
The signed version of this policy is available through the UA PolicyStat Policy Library.
Purchasing Guidelines
I. Purchasing Process Introduction
Purchasing methods vary by item type and value. This guide helps faculty and staff follow the correct process—from vendor selection to payment.
Required Policies
All purchases using University funds must follow:
- UA Spending Policy (Accounts Payable)
- P-Card Policy and Procedures (P-Card Services)
- Professional Service Guidelines (Contract Management)
How to Purchase
Refer to the flowchart to determine the correct purchasing and payment method.
UA Purchasing Process Flowchart
II. Vendor Selection Process
Always check to see if we have a contract vendor that can supply what you are looking for first. Under Alabama law (Code of Alabama, Section 41-4, Article 5), any purchase or contract for similar goods or services over $75,000 must be competitively bid, unless an exception applies.
Important Notes:
- Competitive bidding ensures transparency and cost-effectiveness.
- Purchases cannot be split to avoid the $75,000 threshold.
Exceptions to Competitive Bidding
Some purchases may be exempt from bidding requirements, including:
- Professional Services: Contracts requiring a high level of skill (e.g., legal, medical, consulting) may be exempt.
- Sole Source: If only one vendor can provide the required goods or services, a sole source justification may apply. This must be well-documented and meet strict criteria—see below .
- Existing Contracts: If an approved contract exists through UA, the UA System, the State of Alabama, or a cooperative, bidding may not be required. See the approved contracts page.
Utilizing Approved Contracts
“Approved Contracts” are competitively bid agreements made by UA, its System Affiliates, the State of Alabama, or Cooperative Agencies. These contracts offer the best pricing, terms, and support, while ensuring compliance with Alabama’s bid laws.
Pro Tip: Always check if the item or service is available through a current UA Approved Contract.
Types of Approved Contracts (Preferred Order)
1. UA or System Affiliate Contracts
UA maintains over 250 contracts for items like apparel, office supplies, lab supplies, and more.
- No Buyer approval needed if the item is covered by an approved contract.
- Contact your Buyer for questions.
2. State of Alabama Contracts
UA can use statewide contracts through the Alabama Department of Finance.
3. Cooperative Approved Contracts
These are competitively bid by government groups or purchasing cooperatives.
- UA partners with over 16 cooperative agencies.
- Contracts are vetted to meet bid law requirements before being listed on our approved contracts page. If a cooperative isn’t listed, contact the appropriate Buyer to have the contract fully evaluated for compliance before moving forward with any purchases that exceed the bid limit.
Contact your Buyer for help using System Affiliate, State, or Cooperative contracts—review and approval may be required.
Note when Utilizing Approved Contracts:
Before Submitting Payment:
- Verify Contract Pricing: Always confirm that the invoice reflects the correct pricing as outlined in the contract. If you’re unsure about the pricing, please reach out to Purchasing at purchasing@ua.edu for clarification.
- Reference the Bid Number: Ensure the bid number is clearly referenced on the quote, regardless of the payment method.
- Use an Approved Payment Method
- P-Card – While not required, referencing the bid number is helpful.
- Concur Invoice – Reference the bid number in the comments section.
- Purchase Order – Include the bid number on the quote.
Department Responsibilities
Your department is responsible for monitoring compliance with contract terms, including pricing, deliverables, and service levels. Regularly reviewing invoices and vendor performance helps ensure adherence and prevents overpayment.
Purchases of Goods or Services From Non-Contract Vendors < $75,000
Purchases below $75,000 do not require competitive bidding since they are considered “Small Dollar Purchases”. Departments may choose their preferred vendor if the item is not available through an Approved Contract vendor.
To ensure best value, comparing prices from multiple vendors is strongly encouraged.
- Buyer approval is required if the item is typically available from a contract vendor.
- For P-Card purchases, include any required approvals in the expense report.
- Reminder: Be cautious of unsolicited vendors and potential scams. Visit our Buyer Beware page for tips and guidance.
Purchases of Goods or Services From Non-Contract Vendors > $75,000
Competitive Bid is Required If:
- Purchase value is $75,000 or more
- Good or service is not available from an Approved Contract Vendor
- Good or Service can be acquired from more than one source
Basic Competitive Bid Process:
- Develop Product or Service Specifications – Provide to Purchasing
- Purchasing will Solicit for Bids – (2) Two Week Minimum required
- Purchasing will Award Contract to Lowest Bidder that Meets the Minimum Specifications
See the Competitive Bid Process page for more details.
Competitive Bid is Not Required if:
Sole Source Purchase
- Applies to purchases over $75,000 that can only be supplied by one source, to the best of the requester’s knowledge.
- A sole source cannot be based on price.
- A sole source cannot be based on quality as this is a subjective evaluation based on opinion.
- A sole source justification letter must be completed and signed by the requesting faculty member, principal investigator, or researcher. The Purchasing Department is vested with the authority to approve a sole source letter and associated purchase.
Justification letter guidelines
- Must be sufficient in detail so that a person not familiar with the situation is able to understand the need to forego the normal purchasing procedure.
- Should be typed on letterhead signed and dated by the principal investigator.
- Is only valid for one calendar year.
- Must state that there are no other companies or distributors that can provide the product or service.
The Purchasing Department will not consider a sole source letter from the vendor as the primary justification, but may use it as additional information when considering the request.
The following questions should be considered when preparing the justification for a sole source purchase:
- What is the product and what does the product do?
- Where will the product be located on campus? Building / room number
- Will installation and/or on-site training by the vendor be required?
- Do other manufacturers make similar products that will do the same job or meet the same goals?
- How is this product unique from all others?
- What existing equipment or supplies are, or must be, compatible with the product?
- Why are the unique characteristics of this product critical for your mission?
- How will this purchase or failure to purchase the specifically proposed equipment impact the associated research? (If Applicable)
- Will the failure to purchase the specifically proposed equipment affect the continuity or validity of the associated research? (If Applicable)
Required Documentation for Non-Contract Vendors>$75,000
- COI if coming on campus
- Vendor Disclosure Statement
- Some other documentation may be required depending on the item(s) you are purchasing.
III. Order Placement & Methods of Payment
Before placing an order, check the Expenditure Matrix to determine the correct payment method. If your item isn’t listed, contact the appropriate Buyer for help.
Preferred Order Methods (in order of use)
1. Catalog Orders via buyBAMA (P-Card)
Use buyBAMA to shop from approved contract vendors with your P-Card. Users can browse vendor catalogs, add items to a shopping cart, and submit orders electronically in a similar manner to typical online retailer websites.
- Ensures contract pricing and terms
- Automated limit increases for purchases over $10,000
- No pre-approval needed for limit increases
Note: All purchases must still follow University policies, even if available in buyBAMA.
2. P-Card Orders Outside of buyBAMA
Use your P-Card directly with vendors (online, phone, or in-person) when not available in buyBAMA. All policies and procedures still apply to P-Card purchases outside of buyBAMA.
Approval Requirements:
- Approved Contract Vendors: No approval needed if item is covered by contract
- Non-Contract Vendors: Buyer approval required if similar items are on contract.
Include approvals in your P-Card expense report.
If you are not sure if approval is required for your P-Card purchase, please contact the appropriate Buyer or P-Card for guidance.
3. Purchase Orders via BuyBama
Use a Purchase Order when:
- When order authorization to vendor is needed in advance of order fulfillment
- When funds must be encumbered
- Services or installation of equipment by a non-contract vendor that may require insurance review
- When it is beneficial to apply University General Terms and Conditions to an order placement with a non-contract vendor
- If a vendor will take a PO in lieu of a signature, therefore avoiding time and resources spent uploading and negotiating in the Procurement Contract Portal.
Submit a Non-Catalog Request in buyBAMA.
Invoices should be sent to Accounts Payable after order is received.
Department Responsibilities: Your department is responsible for monitoring compliance with contract terms, including pricing, deliverables, and service levels. Regularly reviewing invoices and vendor performance helps ensure adherence and prevents overpayment.
4. Concur Payment Requests
Use for items not allowed on P-Card or PO, such as:
- Gifts, entertainment, awards
- Conferences and professional services
- See Spending Policy for additional details.
Contact your Buyer if you’re unsure which method to use.
Order Placement and Method of Payment Summary
(in order of preferred method)
| Transaction Type | Placement Method | Payment Method |
|---|---|---|
| Orders placed with Catalog Vendors in the buyBAMA marketplace using a University P-Card |  | P-Card |
| Orders placed outside of buyBAMA using a University P-Card | In-Store or through vendor websites | P-Card |
| Orders placed through buyBAMA using a University issued Purchase Order | | Invoice to Accounts Payable |
| “Other” goods or services that do not fit purchase order process and/or vendors do not accept P-Card | Varies |  Invoice Payment Request |
IV. Other Things to Know
Professional Services
Professional services involve specialized expertise (e.g., legal, consulting, some creative work) and do not require competitive bidding under Alabama law. However, special requirements apply, including contract review and documentation. Please refer to Contract Management’s website for further guidance.
Software and Technology Acquisitions
- Always check UA OIT’s software catalog first to see if the software you are seeking, or a similar tool, is already available.
- If not available through OIT, please check to see if available through a UA Approved Contract vendor.
- Most software companies require the licensee (UA in this case) to sign an agreement of some type. Any agreement that requires a signature will need to be submitted through Contract Management’s Procurement Contract Portal for review and execution.
- As part of Contract Management’s review process, The IT Compliance Software form must be completed. OIT recommends reviewing and adhering to their IT Use Guidelines for Software as a Service (SAAS) acquisitions.
- Once you have identified the proper UA Approved Contract vendor or have executed an agreement through Contract Management, use the procurement or payment method for software found in the expenditure matrix.
Board Approval Thresholds
Certain contracts may require approval by the Board of Trustees depending on cost and nature. See summary of primary thresholds below:
- All contracts for goods and services involving an expenditure of $1,000,000 or more, for the term of the agreement/contract, not procured through a competitive process.
- All consulting and/or professional services contracts involving an expenditure of $250,000 or more, for the term of the agreement/contract, and regardless of whether the contracts result from a competitive process.
- All information technology contracts or projects, not included in the annual technology plans, involving an expenditure of $750,000 or more for the term of the contract or project (including any extensions, renewals, upgrades or expansions to existing technology contracts or projects), regardless of the source of funds.
- All revenue-generating contracts involving the receipt of $1,000,000 or more for the term of the contract (including all option, renewal, or extension periods).
- Purchases or leases of individual items of equipment equal to $750,000 or more shall be submitted to the Board for approval in accordance with Attachment C.
If you are not familiar with the Board submittal process or are not sure if your contract requires such approval, contact Purchasing for guidance. See Board Manual for complete context of approval thresholds.
The University of Alabama’s Sustainable Purchasing page outlines initiatives and guidelines aimed at promoting environmentally responsible procurement practices across campus.