Purchase order procedure Follow the procedure below to issue a purchase order:

Follow the procedure below to issue a purchase order:

Step Action

1 Ensure that sufficient funds are in the budget (both account and budget pool) for the desired item(s).

2 Ensure that you have express (verbal or written) approval by department head before entering requisition.

3 Obtain quotes or bids from qualified suppliers as follows:

If... Then...

Purchases less than $4,999.99 One written quote

4 Department enters requisition in FRS utilizing FRS requisition data entry procedures. Forward quote/bid information to Purchasing Department with requisition number written in top right corner of documentation Note: The University understands that the vendor submitting the lowest quote/bid may not be selected. In the event the lowest quote/bid is not selected, written justification signed by the department head must be submitted.

Purchases $5,000 not exceeding $19,999.99 Two written quotes

$20,000.00 - $39,999.99 Three written quotes

≥ $40,000.00 Formal bid

If item can be purchased on existing contract (Commonwealth of Kentucky, other state university, or GSA), the above does not apply, however, price contract number must be noted on quotation. Note: The Purchasing Department will obtain quotes on the University’s behalf upon request and will provide assistance with evaluating quote. Sole and single source purchases ≥ $9,999 or deviation from quote requirements must be supported by written justification signed by department head.

5 Purchasing Department processes requisition and issues purchase order to vendor. Note: Additional information may be required before the purchase order is processed.

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