The U-M Board of Regents recently approved an increase to the university’s formal bid limit for goods and services from $10,000 to $75,000. Due to federal regulations, however, U-M’s bid limit is currently capped at $50,000. In the near future, we’re going to request—from the federal government—that our bid limit be increased to $75,000.
The new bid limit puts U-M in line with the majority of other Big Ten universities and the state of Michigan, which will make it easier for units to make the purchases they need to support the institution’s missions of teaching, research, and patient care.
Below is some important information about the new bid limit:
- The bid limit for goods and services will increase to $50,000 in the first quarter of calendar year 2024
- For purchases between $10,000 and $50,000, units will be encouraged to use University-Wide Contracts. (If an alternative is requested or necessary, Procurement Services will benchmark against other suppliers and reserves the right to competitively bid the purchase.)
- Formal competitive bidding will start at $50,000
- While the bid limit will be higher, units can always request that Procurement Services conduct a formal bid, regardless of the dollar amount
- Units can also establish a lower dollar threshold for their bids, whether they’re conducted at the local level or through Procurement Services
- At University of Michigan Health, medical supplies and devices will continue to follow the new-product-request process within Value Analysis
- Procurement Services will continue to serve as the exclusive signatory for all supplier contracts with U-M
Please watch for more details about the new bid limit in the coming weeks, including any process updates and a go-live date in the first quarter of 2024. In the interim, please contact us with any questions.