First, check the How to Buy/Pay Guide to see if there is a required or preferred source for ordering. Follow the Buy/Pay instructions given.
Second, check the listings of University and State Purchasing Contracts to see if the required goods or services are covered under contract. Follow the Buy/Pay instructions given.
If a required or preferred source is not found following the above steps, one of the following procedures must be followed:
- Purchases of Less Than $5,000. Purchases of goods or services of less than $5,000 may be made by departments based on their discretion. Purchases should be made from reputable vendors at a fair and reasonable price. Informal quotes may be obtained by departments to determine price reasonableness. Departments may not artificially divide purchases so as to appear the purchase is less than $5,000 or to make multiple purchases or request multiple invoices for single purchases of identical goods or modular components from the same vendor. Purchases of identical goods or modular components from the same vendor of $5,000 or more must be initiated through purchasing. Excluded from the bid limits are purchases for construction and renovation work and for goods or services available through existing state or university contracts.
A copy of the university's tax exemption certificate should be provided at the time of purchase to ensure that sales tax is not charged (see Certificate of Exemption).
Methods for making purchases below $5,000 are as follows:
- UT-issued Procurement Card Purchases. This is the preferred method for making purchases below $5,000. Upon the recommendation of the Treasurer's Office, departments will be given university-issued procurement cards that may be used for making single purchases of goods or services of less than $5,000. Procedures for making credit card purchases will be provided to departments when the cards are issued. See Fiscal Policy FI0530 (Procurement Cards) for additional information.
- Petty Cash Purchases. Departments may use petty cash funds to make single purchases less than $5,000 from local vendors in accordance with Fiscal Policy FI0525 (Petty Cash).
- Credit Purchases. Single purchases of less than $5,000 may be made from vendors who will provide goods and services on credit without a purchase order and will invoice the university after delivery. Invoices for such purchases should be sent directly to the department receiving the goods or services and processed for payment in accordance with Fiscal Policy FI0505 (Processing and Paying Invoices). Departments should consult with Purchasing Services if the vendor requests that a credit application or other agreement form be signed.
- Departmental Purchases with Personal Funds. Employees may use personal funds to make single purchases of less than $5,000 for goods or services for departmental use and be reimbursed by the university. The Petty Cash Reimbursement Request Form T-44, must be used to request reimbursement. Requests must include a receipt that has an itemized description and the price of each item as well as the total amount of the purchase. A cash register tape with a description and the price of each item purchased may be used. The receipt or cash register tape must be imprinted with the vendor's name. See Fiscal Policy FI0525 (Petty Cash) for additional information.
- Purchases of $5,000 and Higher. Purchase requirements in this range must be submitted to Purchasing Services via a purchase requisition in IRIS. At the discretion of Purchasing Services, departments may solicit informal bids from vendors for purchases within this range. This information must accompany the requisition sent to Purchasing Services. (Consult Purchasing Services for price quotation documentation requirements.)
For additional information, contact Purchasing Services at 901-448-5594.
201 East Street, Room 201
Memphis, TN 38163