Procurement Policies

All purchases of goods and services must be made in accordance with university policies and procedures (see SPG 507.01). Adherence to these policies and procedures ensures that procurement activities will be done in an open and competitive environment and that all prices paid by the university will be fair and reasonable.

Procurement Services provides oversight for all purchasing activities conducted by academic and administrative employees. Purchasing activities require proper transaction documentation, fiscal responsibility, ethical behavior, adherence to federal and state government regulations, and compliance with university bylaws and policies.

Failure to comply with procurement policies and procedures may result in the suspension of the use of the M-Pathways online procurement system, PCard and non-PO voucher system, and/or disciplinary action, which may include discharge.

Authority for the procurement of goods and services lies with the U-M Regents who have delegated this authority, through the Executive Vice President and Chief Financial Officer, to Procurement Services. See SPG 507.01 for additional information on procurement authority.

Small purchase transactions less than $10,000 do not require a bid, and in most cases do not need procurement approval. For transactions between $10,000 and less than $50,000, Procurement Services will review the purchase request for compliance and best value. For transactions $50,000 and above, except as outlined in the Sole Source Process, Procurement Services will conduct a formal and structured competitive bidding process.

Procurement Services maintains signature authority for all procurement contracts and agreements. Contracts and agreements (e.g., licenses and maintenance) requiring a university signature, regardless of dollar amount, must be forwarded to Procurement Services for processing. University employees who sign contracts or agreements may incur personal liability. See SPG 601.24 for additional information.