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) will rollout this change on May 21. To help prepare departments for this change, procurement training materials including a recorded webinar and written materials will be posted to the Supply Chain Management website. An announcement with the links to these new resources will be sent to the Supply Chain Management Newsletter mailing list by May 21.
The Low Value Purchasing Authorization change to $10,000 does not apply to payment requests, voucher approvals or procurement (P-Card).