UC SYSTEMWIDE POLICY
Low-Value Purchasing Authorization Threshold Change
The University of California has increased the low-value purchasing authority from $5,000 to $10,000, empowering departments to execute procurement transactions up to $10,000 without the need for central procurement involvement (excludes certain commodity classes such as hazardous and controlled substances).
This move reflects the higher level of sophistication of the department buying communities and the increased controls enabled by the advanced procure-to-pay systems in place at most campuses.
This change has multiple benefits for the departments:
- Departments will be able to execute more of their transactions without the extra time and steps needed to route through central procurement.
- Central procurement and supply chain professionals will have more capacity to support the department's more strategic procurements and request for proposals (RFPs).
Supply Chain Management (SCM) is targeting mid-May for rollout of this change. In the next couple of months, we will communicate more information and training opportunities supporting this transition.