Subject Area: Procurement/Disbursement
Responsible Office: Central Procurement Services
Approval: V.P. for Administration and Chief Financial Officer
Originally Issued: December 1986
Revised: September, 2003, October 2007, May 2008
Refer Questions To: Gene Suwanski, 773-702-3321

PURPOSE:  To assign authority and responsibility for procurement of goods and services.

POLICY:

1. Under the By-Laws of the University, the Vice President for Administration and Chief Financial Officer is vested with the authority to conduct the business activities of the University including the responsibility for the procurement of all goods and services.
2. The Director of Central Procurement Services and the Comptroller will establish, formulate, publish, maintain, and interpret policies and procedures to be followed by all procurement centers of the University in order to provide for the efficient and responsible conduct of all procurement and disbursement activities of the University. All University procurement policies shall be in compliance with Federal regulations for procurement standards stated in the Office of Management and Budget (OMB) Attachment O, Circular No. A-110, which provides that no commitment of funds shall be made unless "such materials and services are obtained in an effective manner and in compliance with the provisions of applicable Federal Law and Executive Orders.
3. The Director of Central Procurement Services has the authority and responsibility to negotiate all procurement terms and execute all purchases and leases of goods and services except where that authority has been delegated to other designated units within the University for specified goods and services (see policy statement 8 below), or is otherwise prohibited by University By-Laws or Trustee action.
4. The Vice President for Administration and Chief Financial Officer has final signature approval for all purchases of goods, services and rental/lease agreements in excess of $200,000, or in excess of those specific fund commitment levels enumerated in policy statement 8.
5. Department Heads have authorization to issue a University purchase order through the Central Procurement Services purchasing system to incur or make a commitment up to $25,000.00. This authorization may be further delegated within the department.
6. The University will reimburse individuals for business related purchases up to $500. To be reimbursed the individual must include detail documentation that describes the purchase and proof of payment. These items become the sole property of the University.
7. No other employee of the University, except as provided for in policy statements 5, 6, and 8, or as authorized by the Trustees of the University of Chicago or the By-Laws of the University is empowered to incur any obligation or make any commitment, on behalf of the University for the purchase of goods, services or equipment unless approved in writing by the Director of Central Procurement Services, Comptroller, or the Vice President for Administration and Chief Financial Officer.
8. Certain officers and departments other than Central Procurement Services have responsibility and authority for the procurement of specific goods and services as indicated below. These procurement centers do not have authority for procurement outside the identified items and services, and must obtain the prior written approval of the Vice President for Administration and Chief Financial Officer for any procurement above the maximum per transaction amount shown below:

*Identified authorized signers may designate others within their organizations to have signature authority for specific items or dollar levels not to exceed those for each procurement center.