Procurement Policies

All purchases of goods and services must be made in accordance with university policies and procedures (see SPG 507.01). Adherence to these policies and procedures ensures that procurement activities will be done in an open and competitive environment and that all prices paid by the university will be fair and reasonable.

Procurement Services provides oversight for all purchasing activities conducted by academic and administrative employees. Purchasing activities require proper transaction documentation, fiscal responsibility, ethical behavior, adherence to federal and state government regulations, and compliance with university bylaws and policies.

Failure to comply with procurement policies and procedures may result in the suspension of the use of the M-Pathways online procurement system, PCard and non-PO voucher system, and/or disciplinary action, which may include discharge.

Authority for the procurement of goods and services lies with the U-M Regents who have delegated this authority, through the Executive Vice President and Chief Financial Officer, to Procurement Services. See SPG 507.01 for additional information on procurement authority.

Employees are authorized to commit funds on behalf of the university for the purchase of goods and services totaling less than $50,000 per transaction. Contact Procurement Services for exceptions to this transaction limit. See SPG 507.01, Section XI Competitive Bid Process for information on procuring goods and services costing $50,000 and more.

Procurement Services maintains signature authority for all procurement contracts and agreements. Contracts and agreements (e.g., licenses and maintenance) requiring a university signature, regardless of dollar amount, must be forwarded to Procurement Services for processing. University employees who sign contracts or agreements may incur personal liability. See SPG 601.24 for additional information.