1. General Information
Dollar Thresholds by Funding Source, including Federal Uniform Guidance
| Dollar Thresholds | Non-Federal Dollars | Federal Dollars |
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| Up to $10K | Automatic Purchase Order (APO) | Automatic Purchase Order
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| $10-$50K | Shop Catalogs | Compliant Shop Catalogs |
| $10-$50K | Purchasing Agent Discretion
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Purchasing Agent Discretion
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| $50-500K | Documented Quotes (DQ) | Documented Quotes (DQ) |
| Greater than $500K |
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I. Purpose
The purpose of this Purchasing Manual is to describe the procedures used to obtain goods and services on behalf of Colorado State University. Additional training in specific areas may be required in order to fully utilize the University’s procurement systems. Focused training for a department or college staff is available from Procurement Services upon request by a Department Head, Director or Dean.
II. Scope
A. Goods and services may be obtained through interdepartmental charges, commercial source purchases, contracts, leases, etc., or surplus property reassignments.
B. Centralized or decentralized methods of purchasing goods and services are authorized. The dollar value, type of vendor and nature of the purchase determines the method.
III. Authority
A. The Colorado State University Procurement Rules define all requirements for acquiring goods and services for the University. In addition, the University is required to comply with certain State of Colorado and federal rules and regulations. It is the responsibility of every CSU employee involved in the procure-to-pay process to understand and comply with all applicable rules and regulations. Compliance guidance is contained within this Manual and other published University resources and from Procurement Services through training and guidance.
IV. Policies
A. Every commitment made by the University for goods or services exceeding $10,000 must be made with an approved commitment voucher (purchase order or University contract) following Colorado State University Procurement Rules, CSUS Fiscal Rules, Colorado State University Financial Rules, procedures outlined in this manual and other rules and regulations as referenced. Colorado State University System Fiscal Rule 2.4.1 states:
“Liabilities shall not be incurred nor payments made on the system’s or institution’s behalf without prior approval of a purchase order or procurement contract. No payments shall be made on any purchase or contract that violates this rule unless the expenditure or obligation has been ratified by the Vice President of Finance , Controller, or his/her designee of the Institution or Chief Financial Officer of the System Office. Any person(s) who incurs, orders or votes for an obligation or makes payment which creates such a violation shall be personally liable for such obligation or expenditure, unless the contract or purchase order is ratified by the Vice President of Finance, Controller, or his/her designee of the Institution or Chief Financial Officer of the System Office.”
Any individual ordering goods or services without following policies and procedures prescribed in this manual may be personally liable as stated above. Commitments less than $10,000 may be made using informal, but reasonable methods of documentation such as a receipt, invoice or other document identifying the transaction, method of payment and amount. Purchases using University funds cannot be made on the basis of verbal commitments, regardless of amount.
B. Purchases made from all funding sources must comply with all applicable University, state and federal policies and procedures.
C. An emergency is defined by CSU Procurement Rule V.T.1 as “a condition that threatens the functioning of the University, or its programs; the preservation or protection of property; and/or the health or safety of any person(s) or animal(s)”. By rule, all emergency purchases must be approved by the Director of Procurement Services, or a delegated University official, prior to making the commitment. In the event an emergency arises after normal working hours, delegated University officials are authorized to make emergency purchases, but are required to notify the Director of Procurement Services the next working day. Emergency purchases do not include those purchases that need to be rushed because of an avoidable failure to plan ahead, the end of the fiscal year or the end of a grant/contract procurement.
D. Goods and services generally will be charged against fund accounts for the fiscal year in which they are received. Orders for goods and services which cannot be received in the year ordered may be canceled or automatically charged against fund accounts for the next fiscal year. Charges for purchases received over a period of two or more fiscal years will be pro-rated to each fiscal year based on the percent of the total received during each fiscal year, unless otherwise specified in the contract. Obtain prior approval from the University Controller if purchases are to be paid from accounts other than current year fund accounts. A multi-year contract, under which the University commits to paying any amounts in future years, must be approved in advance and must contain certain required provisions regarding availability of appropriations and funding for future years.
E. Before purchasing new, consider using available surplus government or University property. Also consider borrowing or transferring available material or equipment from low priority uses, or using acceptable but less expensive substitutes. The University’s Surplus Property department can assist you with finding acceptable surplus equipment, furniture or goods.
F. State law prohibits the University from making purchases for resale to employees or permitting personal purchases using University facilities, property or funds. Exceptions to the rule against resale items include Athletic Ticketing, CSU Bookstore Locations, Computer Repair Center, FastPrint, Global Food Innovation Center, LSC Dining Services, RamTech, Special Event Support for reserving space and equipment of CSU Facilities, Surplus Property, The Spoke, and the ROTC, which is authorized to sell certain military items to cadets and military personnel. There are no exceptions to the rule against using CSU funds to make personal purchases or to obtain a personal financial gain. Use of a University-issued credit card (PCard) to purchase goods or services for personal use is prohibited, just as for any other payment method, and may result in revocation of the card and purchasing privileges as well as civil and criminal penalties.
V. Responsibilities
A. The Office of Procurement Services has been established as a service organization to provide faculty and staff the most economical, timely and effective way of acquiring goods and services. Major responsibilities include the following:
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- Ensure compliance with state, federal and University rules and regulations and follow established purchasing best practices.
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- Obtain suitable goods and services for the best price and quality.
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- Review purchases made by Automatic Purchase Order (APO), Procurement Card (PCard), Disbursement Voucher (DV) or Internal Order (IO) in order to prevent abuse or noncompliance with purchasing policies and procedures.
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- Research new products, markets, vendors and resources, including cooperative or group purchasing organizations (GPOs), state and federal price contracts, and strategic sourcing opportunities.
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5. Assure adequate sources of supply and seek new sources of supply to increase availability and quality at advantageous prices.
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- Provide information, assistance and guidance on the description, suitability, cost, quality, standardization and substitution of a product or service.
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- Assist in ensuring effective uses of University owned goods/materials by assisting in the reassignment surplus items.
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- Assist in the transfer, trade-in or disposal of surplus property, as may be requested by CSU’s Surplus Property personnel.
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9. Perform any other responsibility in relation to acquiring goods and services and the sale or licensing of certain University goods and services to others, as directed by the Vice President for University Operations or University Controller.
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- Administer and monitor the University’s Procurement Card Program (PCard).
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B. Deans, Directors and Department Heads are required to control acquisitions of equipment, materials and services to the reasonable and necessary requirements of the University for official business purposes, to limit and consolidate requests for these items, to authorize funds and make funds available, and to ensure that procedures and documentation prescribed in this manual are followed for all purchases.
C. All University organizations are required to comply with state, federal and University policies and procedures and are required to ensure full documentation and adequate control. Due to unique operating requirements, special responsibilities and procedures have been prescribed elsewhere in this manual.
Section PM10 ‑ Food Service Purchasing Procedures
Section PM11 ‑ Bookstore Purchasing Procedures
Section PM12 ‑ Library Purchasing Procedures
Section PM13 ‑ Conference Services Purchasing Procedures
Section PM14 ‑ Research Center Purchasing Procedures
Section PM15 ‑ Livestock Feed Purchasing Procedures
Section PM16 ‑ Livestock Purchasing and Sales Procedures
Section PM17 – Search Firms
The Military Property Custodian may obtain uniforms, accessories and services for the AFROTC Programs from fund accounts 9‑90001 and 9‑90002 in accordance with U.S. Air Force directives. Purchasing forms other than those of the University may be used when necessary to ensure compliance.
D. The Director of Procurement Services has overall responsibility for prescribing and monitoring compliance with state, federal and University requirements for the procurement of goods and services. Any authority or responsibility relating to purchasing which is not specifically designated in these or other instructions is reserved by the Director of Procurement Services or authorized higher officials.
E. Departments should ship and receive all materials through the CSU Central Receiving Department. If emergencies, size or location of item, etc., make central processing impractical, the department should coordinate with Central Receiving prior to ordering to determine the best method of shipment, necessary documentation, etc.
VI. Conflict of Interest
A. Definition. A conflict of interest is a situation in which a University employee or member(s) of his/her family has, or appears to have, a personal or private interest in a University purchasing action in which the employee participates, directly or indirectly. Conflicts of interest include those in which an employee or employee’s family member acts as a seller, a broker, or the agent of a seller or broker, or takes any action in his or her official capacity to direct University business to a person or entity with whom the employee has a financial relationship.
B. Policy. The Colorado State University “Conflict of Interest (COI) Policy” defines the processes to be followed in articulating and resolving conflicts of interest at the University. Any person initiating a purchase who is aware of a conflict of interest, or a potential conflict of interest, with respect to the transaction is required to report the same to the Purchasing Agent when submitting the initial REQ, or in the case of an APO or PCard transaction, before initiating that transaction. When Procurement Services has reason to believe that a conflict of interest may exist in the procurement of goods or services that has not been disclosed, it will direct the affected department to comply with the procedures described in this policy. The COI Policy is administered under the direction of the Vice President for Research and the Senior Vice President/Provost and is subject to change from time to time. Current information on COI policy and procedures may be found on the website of the Provost. Before a transaction involving a COI can be completed, Procurement Services must receive an approved COI Management Plan from the ordering department and, in certain cases, the approval of the appropriate Vice President to proceed. Procurement Services does not provide or create COI management plans; please refer to the COI procedures on the Provost Office website.
C. Selection Committee. As a member of a selection committee for a solicitation, the member and his/her committee will be asked for a statement regarding conflict of interest/confidentiality.
D. Sole Source Procurements. Sole source justification letters must contain a statement addressing conflict of interest that indicates the requestor has no actual or potential conflict of interest regarding the purchase, or, if a COI is identified, an approved management plan must also be submitted.
VII. Prohibition Against Accepting Kickbacks or Improper Gifts or Fees
A. The Anti-Kickback Act of 1986 makes it illegal for any person to provide, attempt or offer to provide, solicit, accept, or attempt to accept any kickback in connection with any contract or subcontract with any department or agency of the federal government. “Kickback” includes any fee, commission, credit, gift or anything of value which is provided, directly or indirectly, to the University or any of its departments, divisions or employees in order to improperly obtain or reward favorable treatment in connection with any federal government contract.
B. Amendment 41 to the Colorado constitution was passed by ballot initiative in 2006. It placed new restrictions on gifts given to Colorado public officials, government employees, and their immediate family members. Such persons are prohibited from receiving gifts with an aggregate value exceeding $65, set by the State. Gifts from lobbyists are banned regardless of amount. An exception is made for gifts given between personal friends and relatives on special occasions. Accepting any gift in connection with any procurement or contract action of the University may be a violation of Colorado law under the provisions of Amendment 41 and other state laws, and may result in employment disciplinary action and civil and criminal penalties.
C. All parties involved in the negotiation, performance, or administration of University contracts are bound to act in good faith. Any person employed by the University who purchases goods and services, or is involved in the procurement process for the University, shall be held to the highest degree of trust and shall be bound by the Colorado State University Procurement Code of Ethics. Implied duties of good faith and fair dealing shall be deemed to be contained in every contract and agreement of the University and shall apply to both parties.
D. Employees of Colorado State University shall comply fully with these requirements. Report possible violations of these requirements to the immediate supervisor of the employee allegedly in violation or to the Compliance Reporting Hotline.
VIII. Purchasing Sources
A. Services from employee or independent contractor. Careful distinction must be made between work that should be done by an employee on the University payroll, and contracted services provided by individuals or firms on an independent basis. It is important that departments requiring personal services recognize the differences in classification, relationships and use of employees and independent contractors. In general, the University is prohibited from acquiring by independent contract, those services which would otherwise be provided by state classified personnel, except under certain circumstances defined by statutes and regulations.
B. Goods and services from University departments. Goods and services may be obtained from University departments when available. Goods available include bookstore items, chemicals, glassware, tax-free alcohol for research, certain hazardous materials, facilities maintenance supplies, etc. Services available include, facilities maintenance services, visual aids, motor pool, computer services, etc.
C. Goods and services from University employees. Employees of the University or of the State of Colorado should not contract to supply goods or services to the University unless a Conflict of Interest disclosure form has been filed, a COI Management Plan has been approved, and the Vice President for Research or the Provost/Executive Vice President has approved the transaction.
D. Goods and services from commercial vendors. The University purchases most goods and services from commercial vendors. The University strictly adheres to its Procurement Rules and procedures outlined in this Purchasing Manual.
IX. Procedures for Obtaining Goods and Services
A. General. The University provides several methods for purchasing goods and services. In most cases a single form may be needed to grant a purchase request, authorize the fund account number, charge the department and pay the vendor.
Generally, departments are authorized to make purchases less than $10,000 from vendors, and all interdepartmental purchases (IO). The Office of Procurement Services makes larger purchases, generally more than $10,000, to provide professional assistance and to review and secure the best price including competitive solicitations.
The dollar value of the purchase, type of goods or services required, and type of supplier generally determines the method of solicitation and documentation to be used when obtaining goods and services. When appropriate, an Automatic Purchase Order, Internal Order, Disbursement Voucher, PCard, Purchase Order and/or a contract may be used to obtain goods and services.
B. Purchases from local and non-local vendors.
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- Small Dollar Purchases – Purchases totaling $10,000 or less: Colorado State University Procurement Rules define Small Dollar Purchases 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.
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When acquiring personal services (labor, time or effort), 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).
a) Purchases totaling $10,000 or less and no authorized commitment document required: The University has developed mechanisms for the purchase of most goods and services totaling $10,000 or less and not requiring an authorized commitment document (purchase order or contract).
a. Disbursement Voucher (DV): University departments are delegated the use of the DV via KFS for purchases totaling $5,000 and less. The DV is a check request document only and should not be used as a purchase order. The DV is described in greater detail in Section PM-5 of this Manual.
b. The University Procurement Card (PCard) may be used for purchases totaling $3,000 or less (unless a higher amount, up to $5,000, has been approved for the cardholder by Procurement Services) when the use of an APO or catalog vendor through KFS Shop Catalogs is not viable. For assistance in determining whether a catalog order may be made before using a PCard, contact Procurement Services. The PCard is described in greater detail in Section PM-4 of this Manual.
2. Purchases totaling $10,000 or less and authorized commitment document required: Purchases for goods and services where a purchase order or contract is required.
a. Automatic Purchase Order: University departments are delegated the use of the Automatic Purchase Order (APO) via the Kuali Financial System (KFS) for small-dollar purchases totaling $10,000 and less. Exception: purchases for goods up to $50,000 made from certain contracted suppliers in KFS Shop Catalogs. The APO is described in greater detail in Section PM-3 of this Manual.
3. Purchases of goods totaling more than $10,000: Submit an approved requisition (REQ) to Procurement Services for purchases of goods totaling more than $10,000. Exception: Purchases for goods up to $50,000 made from certain contracted suppliers within KFS Shop Catalogs by an authorized departmental representative.
4. Purchases of services totaling more than $10,000: Submit an approved requisition (REQ) to Procurement Services for purchases of services totaling more than $10,000.
C. Goods and services from University departments. Use an Internal Order (IO) to request, authorize and pay for goods and services purchased from University departments. There is no requirement to seek competition for such purchases from external vendors, and in some cases, it may be required that a waiver be obtained before obtaining goods and services from vendors rather than from the University itself.
X. Special Acquisitions
A. Leases and rental of equipment. Coordinate lease and rental equipment with Procurement Services, which negotiates and signs all lease and rental agreements, regardless of dollar amount. Copies of fully signed agreements should be retained in both Procurement Services and department files.
B. Maintenance Agreements. Request a Maintenance Agreement (contract) for equipment and software through Procurement Services.
C. Contracts. Coordinate all procurement contracts with the Office of Procurement Services.
D. Consignments. Coordinate consignment of goods or equipment with Procurement Services before completing final arrangements with the vendor, even if consignment is on a trial basis and at no charge to the University.
E. Purchase of tax-free alcohol. Alcohol, 190 proof or absolute may be obtained through Central Receiving for authorized University requirements. Present an “Affidavit for use of Tax Free Alcohol” and Internal Order (IO) to Central Receiving to pick up alcohol.
F. Purchase of controlled drugs. Requisitions for narcotics and drugs, under the federal Controlled Substances Act of 1970, must be approved by Environmental Health Services prior to making the purchase. Neither the Disbursement Voucher (DV) nor the PCard are authorized for the purchase of controlled substances.
G. Purchase of surplus property. Federal and state surplus property is available to the University through Surplus Property and federal agencies. Departments may acquire surplus property at no charge or at a small service charge.
H. Purchase of subscriptions. Magazine and newspaper subscriptions (excluding library subscriptions) may be purchased with an APO, DV or PCard within established dollar limits or a REQ if the purchase exceeds either the APO, DV or PCard limits.
I. Purchase of classroom books. Coordinate the purchase of classroom books through the CSU Bookstore.
J. Purchase of all other books. Purchase all other books with an APO or PCard within established dollar limits or a REQ if the purchase exceeds either the APO or PCard limits.
K. Radioactive Isotopes. Requisitions for radioactive chemicals must be approved by the Radiation Control Officer in Environmental Health Services before Procurement Services can process a Purchase Order.
L. Communication and Marketing Materials. Per requirements of the Central Communications Policy, all branding, marketing and communication initiatives, including but not limited to print, advertising, environmental graphics, photography, video, websites, electronic media, social media, and strategic communications and marketing consultation services must be reviewed and approved by the Division of University Communications.
M. Publishing of articles (page charges) and reprints. Use an APO or PCard within established dollar limits, or a REQ if the purchase exceeds either the APO or PCard limits.
N. Animal purchases. Purchase of rodents, rabbits, cats, dogs, birds, reptiles, amphibians and fish, to be housed in any animal facility on campus or in the Painter Center, through Laboratory Animal Resources (LAR). Contact LAR at 491-7364 for procedures. Submit a requisition for the purchase of animals using the appropriate object code, 6227 for research acquisition or 6228 for production acquisition; however, the Institutional Animal Care Use Committee (IACUC) must approve a protocol to use animals for research purposes.
XI. Purchasing Status Information
Methods for determining the status of purchasing documents after they have been initiated are found within the Kuali Financial System.