Automatic Purchase Order (APO)

Table of Contents

What is an automatic purchase order?

  • University departments are delegated the use of the automatic purchase order (APO) for the purchase of goods and services where the aggregate total is less than $10,000 per fiscal year or 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 by creating a requisition in the same manner as regular purchase orders.
  • Departments are prohibited from artificially splitting a purchase to circumvent the $10,000 limit. 
  • 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 ensure the vendor has the requisite insurance (i.e., general liability, worker’s compensation, employer’s liability, and auto liability coverages).
  •  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.

Who is responsible for APO's?

  • Procurement does not review APOs prior to issuance. 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 PRIOR TO ISSUANCE OF THE APO.
  • Departments are responsible for the order, control and receipt of goods and services purchased with an APO.