OSU PaCS 301: Preferred Purchasing & Payment Methods for Small Dollar Purchases (Procurements Under $5,000)

Purpose

To minimize University expenses and maximize savings when making purchases under the departmental delegated authority (small dollar purchases). 

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Applicability

All employees designated by Unit Administrator to purchase goods or services.

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Background

As established in PaCS 101-01: Authority, all University Departments are authorized to purchase goods or services up to a total purchase of $5,000 (with the exception of a project subject to Public Wage Rate Law, requiring contract signature, or the hiring of Architects or Engineers).   Complying with the preferred purchasing and payment methods will reduce the number of new vendors being added to the Financial Information System (FIS) Banner system and minimize the number of costly personal reimbursements processed by the University.

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Policy

Departments should utilize the following methods of purchasing and payment for all purchases under $5000, listed in the order of preference:

OSU Contracts

Departments are highly encouraged to utilize the vendors on contract with the University.  There are numerous contracts placed by OSU Procurement and Contract Services that offer competitive pricing and allow departments to purchase products without going through a competitive bid process on orders under or over $5000.  The more departments utilize established contracts, the better the leverage for deeper discounts and better service at contract negotiation time.  The end result is increased savings and a higher quality service for your department.

Procurement Card

Departments are encouraged to make their purchases under $5000 by using their departmental Procurement Card.  This is the simplest, most efficient method of acquisition and payment.  Rather than issuing a Purchase Order, the purchase is placed by giving the vendor your Procurement Card (or departmental Visa Card) number.  Procuring in this manner affords the vendor immediate payment and simplifies the Accounts Payable process.  Instructions regarding how to best utilize your Procurement Card are located on the Business Affairs website.

Auto Pay

There are over 30 vendors who hold Auto Pay accounts with the University.  These vendors are set up for direct payment with Accounts Payable.  Departments shall provide the proper “ship to” and “bill to” codes and provide their index code at the time of order placement.  Additional information is located on the Business Affairs Accounts Payable Department website.

Departments and their personnel should never use purchasing methods for the sole purpose of obtaining personal rewards (e.g. airline mileage on personal credit cards, rebate programs including personal Costco accounts and other credit cards, etc.).

If purchasing commonly utilized products and services such as office supplies, lab supplies, advertising or computers, check the OSU PaCS website or call the PaCS office at 737-4261 to determine if these items are available on contract or with an OSU-established vendor.

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