The College defers to the University’s SPG and Procurement Services regarding purchasing policies and procedures.
SPGs
SPG 507.01 Procurement General Policies
SPG 507.10-1 Travel and Business Hosting Expense Policy
Before Purchase
Whenever making a business purchase, please first consider the following:
- Where will the funds come from? Which shortcode?
- Does the purchase comply with existing budget parameters?
- Have you obtained the appropriate/required approvals?
- Are multiple quotes required?
- The University requires that all transactions valued at $50,000 or more annually undergo a competitive bidding process before making the purchase. Please contact Business Office (taubmancollegefinance@umich.edu) early (4 weeks in advance) for questions and to begin that process.
- The University of Michigan Standard Practice Guide, SPG 507.01 requires that transactions between $10,000 and less than $50,000 be reviewed by Procurement Services for compliance and best value.
- Is a contract or other signed agreement required?
- If yes, only Procurement Services agents can sign contracts of any dollar value on behalf of the University or College.
- Verbal commitments to a vendor do not constitute commitments on behalf of the University or College.
- No employee is authorized to sign a contract with an external vendor, business, or individual. Signing a contract on your own may result in a denial of payment by UM and you may be held personally liable for the expense.
- A purchase is not authorized until a valid PO is issued or a contract is signed by a procurement agent.
- CFO is the authorized signer for interdepartmental agreements or memos.
- The university is exempt from the payment of sales and use taxes.
Once you have considered the above, please comply with the following policies and guidelines on how best to make your purchase using the most appropriate method. The buying methods are listed below in the preferred order of use.