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Purchasing and Contracting Services (PCS) is making updates to the UO Purchasing and Contracting Procedures, expanding on the significant policy changes that took place last year. Last fall, PCS made significant changes to UO Policies affecting the purchase of goods and services. This included increasing the direct procurement threshold to $50k and changing requirements for delegated signature authority and written contracts. PCS is now publishing additional updates to our procedures to both clarify and enhance the previous modifications. These new updates, which went into effect on Oct. 1, 2024, further clarify and expand what purchases under $10,000 can be made without a contract or PO. They also set up a more formal process for resolving misuse of delegated contracting authority.
The updated procedures now allow a person with at least Level 1 Contracting Authority to purchase goods or services under $10,000 without a contract or purchase order, unless the purchase implicates one or more of the following factors:
- Licensing of UO owned intellectual property.
- Unsupervised contact with minors by the contractor.
- Exchange of sensitive or confidential data between UO and the contractor.
- The generation of intellectual property.
- Work that may form an employment relationship with a supplier.
- Work that involves elements of significant risk exposure to UO.
- Contracts with foreign individuals.
- 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.
We have created a How to Buy at UO decision tree in MS Forms to help those exercising Level 1 or Level 2 Contracting Authority determine which contracting process and authority is needed to process transactions under these new procedures.
While we have made it easier to contract without a contract or PO for transactions under $10,000, we do still recommend at least issuing a PO, even if not required, as a best practice. Previously, 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 recent procedural changes to the written contract requirements, these services would no longer require a written contract. However, a contract or purchase order is still best practice, and those with the appropriate contracting authority may use the standard University purchase order to document these services. Please reach out to PCS if you have questions about this new process.
Additionally, PCS updated the procedures to provide more robust support and oversight, ensuring compliance with UO’s purchasing and contracting procedures. This creates a clearly defined escalation process when delegated signature authority is misused or abused. The escalation process for repeated violations includes:
- First Instance: Notification and suggestion for retraining.
- Second Instance: Meeting with PCS staff and mandatory retraining.
- Third Instance: Suspension of delegated authority for six months.
- Fourth Instance: Revocation of delegated authority and referral to Internal Audit.
These updates reflect UO’s commitment to maintaining high standards in its procurement and contracting processes. By emphasizing the importance of written contracts and providing robust support and oversight, UO aims to ensure all transactions are conducted ethically, transparently, and in the best interest of the university community.
Departments and employees are encouraged to familiarize themselves with these updates and take advantage of the training and support offered by PCS. For more detailed information, please refer to the full updated procedures document or contact PCS directly.