OSU PaCS 101-01: Authority

Purpose

To specify the types of authority and associated dollar thresholds for department personnel.

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Applicability

All employees.

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Background

Departmental delegated authority is established to balance the required approvals and protection of the University against the risk of potential audits of procurements and contractual relationships.

Authority comes from: OAR 576-008-0210 (Goods and Services); OAR 580-040-0100 (Personal Services Contracts); OAR 580-050-0020 (professional consultants); and OAR 580-050-0032 (repairs and public improvements).

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Policy

Signature Authority

Only certain individuals at Oregon State University (OSU) are authorized to sign contracts or other agreements on behalf of the University.  Any document required to be signed on behalf of the University, regardless of dollar amount, whether there is an exchange of compensation or not, or where revenue is received by the University, must be signed by an authorized individual identified in PaCS 101-03: Signature Authority.  Individuals who violate this policy and sign on behalf of the University may be subject to personal liability for the value of those commitments.

Delegation of Authority

Oregon State University (OSU) recognizes two levels of authority regarding procurements of goods, services, and construction contracting.

1. Delegated Expenditure Authority – Goods & Services
   Departments on campus have a delegated expenditure authority up to $5,000 for purchases of goods and services.  This authority is for the total purchase, not for individual items (e.g. you cannot order ten $3,000 items for a total of $30,000).  Splitting purchases to avoid exceeding the departmental delegation of authority or to avoid processing the procurement through Procurement and Contract Services (PaCS) is not permitted.  For procurements over this threshold, PaCC is delegated authority to make these purchases.
   
   Professional service contracts for architects, landscape architects, engineers, space planners, land surveyors, cost estimators, appraisers, material testers, mechanical system balancers, energy managers, asbestos evaluation and abatement consultants, commissioning agents, construction managers and project managers have no department delegation of authority.  Only PaCS is delegated authority to procure these services regardless of dollar threshold.
   
   
2. Delegated Expenditure Authority – Construction Contracting
   Departments on campus are delegated expenditure authority up to $5,000 for construction contracting services.  However, if a procurement is subject to the Bureau of Labor & Industries (BOLI), Prevailing Wage Rates, there is no delegation of authoring other than to PaCS who will procure construction services at all dollar levels.

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