- Purchase Requisition
- Purchase Order (minimum of three quotes obtained)
Signature Authority (See Signature Authority Thresholds)
A quote is a statement from a vendor regarding the price for a specific
good or service. The quote is not as formal as a bid and can be
given over the phone or in writing. There are a minimum of three
quotes required for the $5,000-$9,999 threshold. It is the initiating
department’s responsibility to obtain these quotes from various
vendors for the goods or services being obtained. The PD is available
to assist departments in identifying comparable vendors, but it
is up to the department to follow through to obtain the required
quotes. Once the quote documentation and the purchase requisition
are received, the PD will begin the process of producing the PO.
Hint: Vendors may not quote you the best price over the phone,
especially if you do not have an established relationship with them.
A phone call may mean you are just looking around for a ballpark
estimate and are not a serious buyer. One way to impress vendors
that you are a serious buyer and are interested in purchasing their
products at the right price is to send the vendor a written request
for a quote or bid. Identify the specification requirements and
request their response in writing. This is not a “formal”
bid process in that the request is not as extensive as a full request
for proposal (RFP), but it is more formal than an over-the-phone
quote and will yield more competitive prices.
Purchase Requisition / Purchase Order
- Department identifies required specifications and selects appropriate vendor to provide goods or services. (A minimum of three quotes must be obtained at this threshold level.)
- Department selects the vendor that meets the quality standards and provides the lowest price.
- Department completes purchase requisition for purchase of goods/services
and forwards to the PD.
- PD verifies budget and signature authority and prepares the
purchase order. Copies of the purchase order are forwarded to
originating department and vendor. Funds are encumbered for the
amount of the purchase order.
- Vendor ships goods/services to the department.
- Vendor forwards invoice to the PD for processing.
- PD checks the invoice and forwards to originating department for payment approval.
- Department completes payment portion of the purchase order,
attaches original invoice and forwards back to the PD.
- PD issues payment to vendor.
- Typical turnaround time for a purchase requisition into a purchase
order is 24 hours, provided the above criteria (appropriate signatures
and budget verification) are met.
Vice Presidential Override
Purchases over $2,000 without a purchase order require a vice presidential
override. The general policy is that only the vice presidents and
the president have the authority to grant VP overrides. Only the
president may authorize payment for merchandise and services that
have been purchased directly by a vice president for his or her
own office or staff without a properly executed purchase order.
(No VP may grant an override for orders made directly by his or
her own office.)