3. Automatic Purchase Order (APO)
Purchasing Manual
Procurement Services staff members are available to assist faculty and staff with any questions.
I. General
A. University departments are delegated the use of the Automatic Purchase Order (APO) for the purchase of goods and services totaling $10,000 and less when no University price agreement or catalog vendor exists for the goods or services required. APOs are created in the University’s Kuali Financial System (KFS) by creating a REQ in the same manner as for regular Purchase Orders.
B. The APO may be used for services, equipment maintenance and one-time rentals under $10,000, ONLY if there is no written agreement requiring the University’s signature. When acquiring personal services (labor, time or effort that results in a desired outcome or deliverable) with an APO, it is the ordering department’s responsibility to request and obtain a certificate of insurance from the vendor showing general liability, worker’s compensation, employer’s liability, and auto liability coverages (see the Procurement Services website for instructions and coverage amounts).
Prior to the issuance of the APO, the ordering department and its Fiscal Officer are fully responsible for all procurement requirements, including obtaining proper small-dollar documentation and review and approval of any written contract or term sheet by Procurement Services, as Procurement Services does not review APOs prior to issuance.
C. All purchases greater than $500 from non-contracted suppliers should be documented with a written quote.
D. Departments are responsible for the order, control and receipt of goods and services purchased with an APO.
II. Authorization
Authority to use the APO is open to all colleges and departments, but this delegation is at the discretion of the Director of Procurement Services and may be limited or revoked when necessary to protect the best interests of the University.
III. Policies
A. Purchases made with an APO are considered Small Dollar Purchases which are defined in CSU Procurement Rules as the purchase of materials, equipment or services where the aggregate total is less than $10,000 per fiscal year. If the purchase is subject to the Davis-Bacon Act or Service Contract Act, the aggregate total may not exceed $2,000 per fiscal year.
B. Departments are prohibited from artificially splitting a purchase to circumvent the $10,000 limit.
C. All written agreements requiring the University’s signature MUST be processed by Procurement Services, regardless of dollar amount. Contact the Purchasing Agent directly before submitting the REQ.
D. The ordering department is responsible for any/all corrective actions associated with an APO.