Revised Procurement SPG
Procurement Services is transforming our teams, processes, and technologies to meet the evolving needs of U-M. Our goal is to better serve campus and Michigan Medicine through a customer-centric approach designed for measurable cost savings, greater efficiencies, and alignment of procurement practices with the University’s priorities. The highlights of this effort include:
- A revised Procurement Standard Practice Guide (SPG) which goes into effect on March 12, 2024, and offers units more flexibility when purchasing goods and services to support U-M’s missions of research, education, and patient care
- Raising the formal bid limit for goods and services from $10,000 to $50,000
- An updated sole source process and more user-friendly Sole Source Justification (SSJ) form
- Realigning procurement teams to excel in transactional, strategy, and purchasing categories
Announcements
- NEW! Procurement Office Hours – If you’d like to learn more about purchasing at U-M, Procurement Services will be hosting a series of virtual office hours over the next few months. Representatives from our purchasing teams will be available to answer your buying-related questions. Read more here.
- Watch the April Buying Blue CoP recording and read the Q&A – Over 500 people attended the latest Buying Blue Community of Practice webinar to learn more about featured topics including the Procurement Optimization Program, Revised procurement SPG, and expense reporting tool upgrade. Read more here.
- Revised procurement SPG increases bid limit, adds flexibility – Read The University Record featured article here.
- Revised Procurement SPG includes increased bid limit – A revised Procurement Standard Practice Guide (SPG) will go into effect on March 12, 2024, and offers units more flexibility when purchasing goods and services. Read more here.
- New, easier-to-use Sole Source Justification Form now available – Procurement Services recently launched a new, enhanced version of the Sole Source Justification (SSJ) form. Read more here.
- Buying Blue Community of Practice webinar answers FAQs regarding U-M’s upcoming bid threshold change and the new SSJ form. Read more here.
- Bid limit to increase in 2024 – The U-M Board of Regents recently approved an increase to the university’s formal bid limit for goods and services. Read more here.
Resources
- Sole Source Justification Form (.pdf) – Use this form to document a request for a non-competitive award over $50,000.
- Sole Source Justification Form (Accessible Version) (.docx) – Use this form to document a request for a non-competitive award over $50,000.
- Tips for efficient and easy purchasing under U-M’s revised procurement SPG
- Create ePro Req: 10-50k – Watch this video for instructions on creating and submitting an ePro Requisition between $10,000 and less than $50,000.
- General Help With Sourcing (Products or Services) – Contact Procurement Services with questions about how to acquire products or services.
- Start The Competitive Bid Process – Use this form to begin the competitive bid process.
FAQ
When will the new bid limit go into effect?
The new policy will go into effect Tuesday, March 12th, 2024.
Do I still need to submit a Sole Source Justification (SSJ) form for purchases between $10,000 and less than $50,000?
No. An SSJ form is only required when a purchase or agreement of $50,000 and greater is awarded outside of a competitive bid process and does not qualify as an exemption.
What if I already know which supplier I want to use for a purchase that is between $10,000 and less than $50,000?
Procurement Services will review your request for any compliance risks involved with the purchase (e.g. access to university data, access to patient data, restricted commodities, etc.) and check to see if there is a University-Wide Agreement which would meet the department’s needs. If there is no existing agreement available and you have already identified a supplier who can provide the good or service, providing information and supporting documentation up front regarding any due diligence/research already completed will help expedite the review of the request.
What kind of information should I provide to justify using a particular supplier for a purchase between $10,000 and less than $50,000?
Acceptable forms of supporting documentation include but are not limited to:
- Quotes from other suppliers
- Documentation of web search results
- Invoices/similar purchase history
- Comparable pricing for other institutions
- Relevant pages out of an awarded grant (could be a combination of the grant application and Notice of Award)
- Relevant materials displaying sponsor requirements of a specific supplier
