University Rule 3-100D: Delegated Small Purchase Authority
Purpose & Scope
To implement Policy 3-100 and outline Rules for delegated purchase authority to organizational
units to make small purchases up to the relevant procurement threshold. Delegated
purchase authority includes conformance with the Utah Procurement Code and is subject
to penalties contained therein. This Rule is binding for all University colleges,
departments, and units, including University Hospitals & Clinics.
Professionals, providers and consultants threshold: $100,000
The Director of Purchasing and the Vice President for Administrative Services may
establish an annual cumulative threshold through a Memorandum of Understanding.
Single Procurement and Consultants Thresholds
Small purchases up to the single procurement threshold of $5,000 shall be made in
accordance with this Rule and University Procedures established by the Purchasing
Department. Small purchases by organizational units up to the single procurement threshold
may be made through UShop. Requisitions may be required for restricted purchases.
(See Rule R3-100E)
Organizational units may make small purchases totaling up to $5,000 by selecting the
best source. For these purchases, organizational units are not required but are encouraged
to obtain and retain competitive quotes.
Organizational units may also make purchases up to the professionals, providers and
consultants threshold by selecting the best source and submitting a requisition through
UShop. For these purchases, organizational units are not required but are encouraged
to obtain and retain competitive quotes. (See Policy 3-111)
Organizational units are responsible for the availability of funds prior to initiating
a small purchase.
Delegated purchasing authority includes compliance with recommendations established
by the Purchasing Department which encourage purchases from Small, Minority, Veteran
and Woman-owned businesses.
The Director of Purchasing may modify or revoke the single procurement threshold for
an individual or an organizational unit.
Restrictions on delegated purchase authority
Dividing or splitting of a purchase: It is a violation of Utah law and University
Policy 3-100 for a person to intentionally or knowingly divide a procurement into
smaller procurements with the intent to make a procurement qualify as a small purchase,
if, before dividing the procurement, it would not have qualified as a small purchase.
Limited Purchase Order Usage
University LPOs provide a maximum delegated authority for a single purchase below
$5,000 to a single supplier and are subject to restrictions in section III. E. Instructions
for use of LPOs are contained on the form. Misuse of this Purchase Order may result
in withdrawal of privileges.
Additional prohibitions or restrictions to the use of LPOs may be made by Accounts
Purchasing Card (PCard) Usage
Authorized individuals within organizational units may make direct purchases of supplies
and services less than $5,000 by utilizing a PCard, except as restricted by University
Regulations (See Rule R3-100E).
PCards are generally issued to a named individual within an organizational unit.
Authorization to use a PCard requires individuals to apply for a card and requires
adherence to terms and conditions of a University PCard contract issued by the Purchasing
PCard procedures are established and administered by the Purchasing Department.
The Purchasing Department is responsible to issue, approve credit limits, suspend
or cancel PCards.
Organizational units are responsible for review and approval of PCard transactions
Organizational units are responsible to maintain PCard records for each transaction
including original receipts, invoices, statements, correspondence, etc., based on
the records retention schedule. Periodic auditing of PCard transactions will be conducted
by the Purchasing Department and/or University Internal Audit and the State of Utah.
(See PCard website)
PCards can be used at campus organizational units that accept credit cards.
Prohibitions on use of PCards for purchases totaling $5,000 or less: (See Rule 3-100E)
Advertisements for personnel (staff or academic) recruiting.
Procurement of new telephones or other telecommunications services. Contact University
Information Technology. Payment for existing services may be made with the PCard,
with approval by University Information Technology and the Purchasing Department.
Foreign purchases except those made on a PCard that are less than $1,000 and do not
require customs clearance such as conference registrations and publications. (See
Employee and visitor travel expenses provided however, that the PCard may be used
for visitors at the University Guest House or for local shuttle services. (See Policy 3-030.)
Gifts including gift certificates, employee incentive/benefits, retirement gifts and
flowers. However, condolences are allowed.
Gas or fuel for vehicles.
New memberships that have not been previously approved by appropriate organizational
Services from independent contractors, performers, consultants, speakers
Student services, events, travel, tuition, scholarships, health insurance or stipends.
AOCE professional development courses.
Additional prohibitions, restrictions or exceptions to the use of PCards may be made
by the Purchasing Department. (See Purchasing Card restricted list)
The Purchasing Department and Accounts Payable discourage the use of reimbursements
for the purchase of goods and services. Reimbursements to individuals for the purchase
of goods and services are subject to Policy 3-010 Expenditure and Reimbursement Requirements
and any associated University Regulations. There are limitations to the use of personal
funds to conduct University transactions. (See Policy 3-010)
Renewals are intended for use when multiple orders are made to the same supplier during
the course of a year. Multiple payments are allowed on a renewal.
Organizational units shall submit a requisition to the Purchasing Department for competitive
and non-competitive renewals.
Non-competitive renewals shall not exceed the formal purchase threshold. Approval
of a non-competitive renewal request is at the discretion and the sole responsibility
of the Purchasing Department.
Competitive renewals may be renewable multi-year agreements for the total price specified
in the solicitation.
Exceptions: Procurement Authority of Organizational Units
By virtue of their special needs and the roles they fill at the University, some organizational
units may be authorized to solicit bids and may be delegated procurement authority
at a higher spend level than normally authorized, compliant with University Regulations,
the Utah Procurement Code and written rules adopted by the organizational unit.
Organizational units that qualify for this exception are identified below and will
enter into a written memorandum of understanding with the Director of Purchasing.
Other organizational units may be extended similar limited procurement exceptions
as described in writing at the discretion of the Director of Purchasing.
Associated Students of the University of Utah
Marriott Library (books and periodicals only)
Eccles Health Sciences Library (books and periodicals only)
S.J. Quinney Law Library (books and periodicals only)
University Medical Group
University Campus Store (resale items only)
University Hospital Purchasing Department
University Food Service operations (resale items only)
Travel Accounting (travel related only)
Study Abroad (student travel related only)
Athletics Department (only athletic charter travel and medical services for athletes)
Procurement relating to building construction and architect-engineer services by Facilities
Management as delegated by the Utah State Building Board and using the procedures
allowed in Rule 3-100B III. A3.
Natural History Museum of Utah (items for display only)
These organizational units of the University may make small purchases by following
procedures established in this Rule.
Small Purchases between $5,000 and $50,000.
Requests for procurement of supplies and services between $5,000 and $50,000 must
be submitted by organizational units to the Purchasing Department on a requisition.
Purchases within these thresholds may require competition but may not require a formal
Informal purchases may be solicited by electronic means including email, electronic
bids, telephone or a request for written quotes.
Informal purchases should be documented with three (3) written quotes or proposals,
Award shall be made to the supplier offering the lowest responsive and responsible
quotation based on objective criteria described in the solicitation.
Names of suppliers offering quotations and the date and amount of each quotation shall
be recorded and maintained as a public record.
Office of General Counsel Small Purchases and Emergency Procurement
The University of Utah Office of General Counsel shall have authority to conduct procurements
for the hiring of outside counsel, expert witnesses and litigation support services
pursuant to the professionals, providers and consultant threshold.
If an emergency condition exists necessitating the need for immediate hiring of outside
counsel, expert witnesses or litigation support services, the General Counsel shall
make a written determination of the existence of the emergency and a written statement
of justification for choosing a specific supplier.
Rules, Procedures, Guidelines, Forms, and other related resources