Purchases made (either verbally or by written contract/PO) must be completed by an individual with contracting authority, no matter the dollar amount. The dollar amount determines the level of contracting authority required. If a purchase exceeds $50,000, a procurement process may need to be completed through PCS before the purchase.
Requirements for a written contract
A written contract is always required for any purchase over $10,000. Purchases under $10,000 only require a written contract if the transaction involves any elements of significant risk.
Please note: It is best practice to have a written contract in place for the purchase of all goods and services. Electing not to initiate a written contract as allowed under the PCS Procedures, is at the department’s own risk. If you are uncertain whether a written contract or purchase order is required, it is always best to err on the side of caution and issue a written contract or purchase order.
PCS Delegated Contracting Authority
Purchasing and Contracting Services (PCS) delegates two different levels of Delegated Contracting Authority: Level 1 and Level 2.
*Limitations of Delegated Contracting Authority (Level 1 and Level 2): Cannot agree to or include vendor terms and conditions. Work may not include unsupervised contact with minors, work outside the US, or services provided by a current employee.
Level 1 Contracting Authority (L1CA) is the authority to sign specific UO template contracts on behalf of the UO with a value of less than or equal to $10,000 using the following purchasing instruments:
- UO Purchase Order
- Invoice (for allowable purchases made via phone or in writing without a purchase order)
- Banquet Event Orders (BEO) under existing PCS approved contract
Any form contracts not listed above must be processed and signed by PCS, this includes all vendor contracts (contracts given to you by the vendor – including quotes requiring a signature).
Required training to obtain L1CA:
- Procurement and Contracting for Goods and Services at UO
Level 2 Contracting Authority (L2CA) is the authority to sign specific UO template contracts on behalf of the UO with a value of with a value of less than or equal to $25,000 using the following purchasing instruments:
- UO Purchase Order
- UO Personal Services Contract
- UO Facility Use Agreement (no more than 30 days in duration)
- UO Incoming Property Loan Agreement
- Banquet Event Order under an existing PCS approved contract
Any form contracts not listed above must be processed and signed by PCS, this includes all vendor contracts (contracts given to you by the vendor – including quotes requiring a signature).
Required training to obtain L2CA:
- Procurement and Contracting for Goods and Services at UO
- L2CA Contracts Training Queue (completed in the UO Purchasing Portal)
Purchases of goods under $500
For purchases of goods only under $500, Contracting Authority is not required to initiate (either verbally or online) so long as the purchase is reviewed and approved by someone with Level 1 Contracting Authority.
Elements of Significant Risk
If a transaction involves any of the following elements, they are considered a significant risk and must have a written contract executed prior to obtaining the goods or services. You may also find the How to Buy at UO Tool helpful.
- Licensing of UO owned intellectual property (patents, copyrights, trademarks, tangible results of research, and trade secrets) aside from advertisement placements.
- Unsupervised contact with minors by the contractor.
- Exchange of sensitive or confidential data between UO and the contractor.
- The generation of intellectual property (patents, copyrights, trademarks, tangible results of research, and trade secrets), including but not limited to, software development, web development, art, music, or consultative services where the contractor provides deliverables beyond oral advice.
- Work provided by the contractor, the nature of which could be construed to form an employment relationship in the absence of a clear statement of work.
- Work that creates significant risk exposure to UO (e.g. fire dancers, whitewater rafting, operating vehicles, stage construction, amplified performances with complex electrical setups, dangerous animals, operating heavy equipment, etc.)
- Contracts with foreign individuals. See Purchasing and Contracting Services Procedures for additional information.
- Contracts that call for an individual independent contractor to provide more than 50 hours of work.
- Transactions involving facilities use, catering, group lodging, chartered transportation, or property loans.
Frequently asked questions:
- What training is required?
- How do I register for training?
- What is commitment of funds?
- What is budget authority?
- What is delegated contracting authority?
- What does the ability to sign a Banquet Event Order (BEO) actually mean?
- Is this all I need to know?
- What happened to the PO for services?
Procurement and Contracting for Goods and Services at UO (formally Purchasing Rules and Ethics, Procurement 101 and Procurement 102), L2CA Contracts Training Queue (completed in the UO Purchasing Portal)
To register for a PCS training class, log into the UO Purchasing Portal and click the link titled ‘Register for a PCS Class’.
Commitment of funds is the ability to review and approve an intended expenditure of department funds. It is an internal approval to proceed with a department purchase. The designation to commit funds is not delegated authority to sign contracts.
A Budget Authority is a Dean, Director, or Department Head. They do NOT automatically have Delegated Contracting Authority to sign contracts or purchase orders. They automatically have the ability to Commit Funds for their department ONLY. If a Budget Authority wishes to delegate their commitment of funds authority, it is done internally within the department.
A person with Delegated Contracting Authority has the ability to physically sign specific contracts on behalf of the University. There are two different levels of Delegated Contracting Authority (Level 1 & Level 2). Both levels of Delegated Contracting Authority require completion of Purchasing and Contracting Services annual training.
A person with L1CA or L2CA may sign a BEO only if a PCS approved contract is already in place for the event. This is to facilitate minor changes in the meals or setting. If the BEO changes any contract terms, or if the BEO changes the not to exceed amount such that it exceeds the amount of the original contract, then the BEO must be submitted to PCS instead. Note: Before signing, the person with L1CA or L2CA has the responsibility to review the BEO against the original PCS approved contract to confirm that there are no changes that would require them to submit the BEO to PCS.
Individuals with Delegated Contracting Authority are responsible for reading and complying with the PCS Policies and Procedures and other applicable university policies and procedures.
The Purchase Order for Services was used for speakers or performers providing services for less than one week and under $5,000.00. Under the changes to the written contract requirements in the PCS Procedures, these services would no longer require a written contract. However, a contract or purchase order is still best practice, and you may use the standard purchase order for these services up to the limits of your L1CA/L2CA.