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Purchasing Thresholds

A. Purchases $18,900 and under 

• Purchases under $18,900 do not require competitive bidding. However, solicitation of bids is encouraged and will be done at the discretion of Procurement Services.
• University Legal Counsel must review all contracts that exceed $5,000.
• Prudent business practices must be followed regarding all purchases under $18,900. Three (3) informal bids with one (1) bid a WBE/MBE when possible should be solicited.
• All procurement activities must be authorized in advance by Procurement Services (PS). ALL procurement requests will be rejected if PS is not engaged prior to requesting goods and services.
• Under no circumstances should purchases be split up to avoid this dollar threshold. Solicitation of bids is encouraged. Buying in a series means making multiple purchases of the same item or service from the same vendor within a twelve month period. This practice is prohibited.

B. Purchases $18,900 or more

Pursuant to Act 57, Act 188 and Board of Governors Policy 1983-02-A, all University purchases greater than $18,900 must be publicly advertised and competitively bid under institutionally established business practices. Such competitive bidding will be undertaken centrally by Procurement Services and documented appropriately for audit purposes.