Procurement Services
THINGS YOU NEED TO KNOW BEFORE YOU BUY
Topics
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Purchasing Authority
The Process
Dollar Thresholds
What should I do if my purchase is $5,000 or less?
What should I do if my purchase is over $5,000?
Purchasing Resources
Summary
Purchasing Authority
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CSU’s purchasing authority is from the CSU Board of Governors &
President through a delegation to the Director of Procurement
Services.
All purchases by all CSU employees must be made according to
CSU Procurement and Fiscal Rules from Statutes that carry
personal legal impact.
The Director gives departments the authority to make small dollar
purchases (Up to $5,000 without a written vendor agreement) using
an Automatic Purchase Order (APO), University Procurement Card
(PC) and/or a Kuali Disbursement Voucher.
Purchasing Authority
Fiscal Rule 2
Colorado State University Fiscal Rule 2, Part A on Propriety of Expenditures:
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All expenditures of University funds shall be made for official University
business purposes only and shall be reasonable and necessary under the
circumstances.
Pursuant to C.R.S. §24‐30‐202(3) any person(s) who incurs or orders an
obligation or makes a payment from University funds without the requisite
authority may be held personally liable for such obligation.
In other words, do not order goods or services unless you have
approved purchase documentation (i.e. Purchase Order).
The Process: Getting Started
The procurement process is a partnership between a campus department/enduser and Procurement Services, so we need your help to get started.
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Creating and approving a purchase requisition in Kuali
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A purchase requisition is an informal request from a department to Procurement
Services to write an order for goods or services and to authorize a specific account
to be charged
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A purchase requisition has No minimum dollar amount, but must be used for all
orders exceeding PCard or DV limits
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A purchase requisition is NOT A PURCHASE ORDER – it is simply an approval
request, not a purchase authorization
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A PURCHASE ORDER is the official authorization to purchase goods or services.
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Cost of the purchase must be identified
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Vendor agreements – must be reviewed and approved by the appropriate
Purchasing Agent
What’s next?
Dollar Thresholds
Goods
Services
$5,000 to $10,000
Purchasing Agent Discretion
$5,000 to $25,000
Purchasing Agent Discretion
$10,000 to $150,000
Documented Quote on
Colorado BIDS system
$25,000 to $500,000
Documented Quote on
Colorado BIDS system
Greater than $150,000
Invitation for Bid on
Colorado BIDS system
Greater than $500,000
Request for Proposal on
Colorado BIDS system
PURCHASING AGENT DISCRETION: This means that the request does not have to be
competitively bid. However, a Purchasing Agent may elect to solicit competition if
deemed in the best interest of the University.
Dollar Thresholds
Purchasing Agent Discretion
(>$5,000 - $10,000 for goods and >$5,000 - $25,000 for services)
 Purchases in this dollar range do not have to be competitively bid
 PA must use professional judgment to ensure maximum value
 PA may seek competition if in the best interest of the University
Documented Quotation (DQ)
(>$10,000 - $150,000 for goods and >$25,000 - $500,000 for services)
 Informal quote process used for the purchase of goods and services
 Purchasing Agent prepares the Documented Quotation with assistance from requesting
department
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DQ must be posted on the State of Colorado “BIDS” website for a minimum of three (3)
business days (see note below)
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Bidders may respond via fax or e-mail
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Generally a low bid which meets or exceeds specifications or Statement of Work (SOW)
determines award
Note: While each purchase is initiated by a requisition in the financial system, the course it
follows will vary depending upon the anticipated cost, complexity, or legalities of the purchase.
Dollar Thresholds
Invitation for Bid (IFB)
(>$150,000 and more for goods)
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Formal bid process used for the purchase of goods.
Purchasing Agent works with the department to prepare the bid documentation.
Must be posted on the State of Colorado "BIDS" System for a minimum of
fourteen (14) calendar days.
Request for Proposal (RFP)
(>$500,000 and more for services)
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Formal process which considers criteria other than prices in evaluation and
award.
Purchasing Agent works with the department to prepare the bid documentation.
Must be posted on the State of Colorado "BIDS" System for a minimum of thirty
(30) calendar days.
Note: While each purchase is initiated by a requisition in the financial system, the workflow it
follows will vary depending upon the anticipated cost, complexity, or legalities of the purchase.
What should I do if my purchase is under $5,000?
Hint: Don’t sign a vendor quote or agreement!
You can make purchases with…
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An Automatic Purchase Order = APO
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A Disbursement Voucher = DV
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APO’s are Purchase Requisitions generated through Kuali
APO’s are small dollar purchase orders up to $5K
APO’s require department approval
Do not sign any vendor agreement/quote
Purchasing Agents must review and sign any vendor agreement/quote
DV documents are processed in the Kuali System
Only for purchases when you have an invoice in hand
Not a purchase order
$5,000 single transaction limit for goods and services
Don’t use consecutive DVs to circumvent the single transaction limit!
A PCard
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Should only be used when the use of a Shop Catalog vendor, APO, or a DV is not a viable
option
Individual cardholders have varying purchase limits
Don’t split transactions to circumvent your single transaction limit
Don’t make personal purchases
Not to be used for employee travel or travel related expense
What should I do if my purchase is over $5,000?
Hint: If you have questions contact us first!
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Make sure to involve us in your planning in order to facilitate the process
and to make it as efficient as possible. Our involvement will help maintain
accountability and hopefully avoid unauthorized purchases.
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What is an UNAUTHORIZED PURCHASE?
Section 24-30-202(3), CRS: No person shall incur or order… any obligation against
the state in excess of or for any expenditure not authorized by appropriation and
approved commitment voucher except as expressly authorized by this section… But
every person incurring or ordering or voting for the incurrence of such obligation and
his surety shall be jointly and severally liable.
IN OTHER WORDS, DO NOT ORDER GOODS OR SERVICES UNLESS YOU HAVE
APPROVED PURCHASE DOCUMENTATION OR YOU COULD BE PERSONALLY LIABLE.
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Procurement Services is legally responsible for source selection which
assures the purchase is made according to University policy and procedures
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Procurement Services will guide you through the process so you get the
products and services you need
Purchasing Resources
Please visit the CSU Procurement Services website for
support and directions at http://www.procurementservices.colostate.edu/ to
see:
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Our Staff is listed along with their areas of expertise
University Price Agreements
Current Contract Forms – always use from website!
Current CSU Procurement events
Send an email for help to: Procurement Help Desk or call
us at: 970-491-5105
Procurement Summary
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If your purchase is greater than $5,000 contact the
Procurement Services staff FIRST!
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We’ll work together so you get the goods and services you need
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Procurement is legally responsible for a source selection
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We will assure the purchase complies with Federal, State, and CSU fiscal
and procurement rules
Never incur a payment obligation over $5,000 unless you have an
approved purchase order
Never SIGN A VENDOR QUOTE OR AGREEMENT!!!
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You risk incurring personal liability without an approved purchase
document
Find us at the Howes Street Business Center –
555 South Howes, First Floor, Suite 108