Purchase Orders are used for the following activities:
- Ordering of goods & services* from an external vendor
- Maintenance Agreements
- Service Calls
* Exceptions: Services from individuals are ordered through a 'Request for Independent Contractor'
For purchases of less than $10,000** the use of a Purchase Order is optional
For purchases equal to or more than $10,000** the use of a Purchase Order is required. Please refer to Office of Management and Budget (OMB) M 18-18 memo (Micro-Purchase and Simplified Acquisition Threshold).
** including freight, shipping and handling fees, and taxes
Required Quotes/Bids or Sole Source Justifications
Purchase Orders must be accompanied by Quotes/Bids or a Sole Source Documentation depending on their amount:
- Purchases less than $10,000:*
- Quotes/Bids or a Sole Source Justification is not required
- Purchases equal to or more than $10,000, but less than $15,000: *
- 3 price quotations, by telephone or in writing or a Sole Source Justification is required
- Purchases equal to or more than $15,000, but less than $75,000:*
- 3 price quotations in writing or a Sole Source Justification is required
- Purchases equal to or more than $75,000: *
- 3 formal bids based on written specifications or a Sole Source Justification is required
* including freight, shipping and handling fees, and taxes
Vendor Debarment and Suspension
Per 2 CFR 200, § 200.213 Suspension and debarment in Uniform Guidance, TUC is subject to the non-procurement debarment and suspension regulations, which restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in federal assistance programs and activities. Thus, TUC will be checking if a vendor is debarred or suspended prior to processing the purchase order. Sam.gov provides a single comprehensive list of individuals and entities excluded from receiving federal contracts or federally approved subcontracts and from certain types of federal financial and nonfinancial assistance and benefits.
Please submit the complete documentation (including Quotes/Bids or a Sole Source Justification) to The University Corporation (TUC) 5 business days before mailing to the vendor.
- TUC can mail the Purchase Order to the vendor
- The Principal Investigator can pick up the Purchase Order at TUC
- After submittal of a Purchase Order, TUC can provide the Purchase Order Number over the phone to the Principal Investigator or Research Administrator.
If a sales/use tax that needed to be charged was not included in the Purchase Order/Check Request, TUC will automatically calculate and include the amount.
TUC will assign each Purchase Order with a 5 digit Purchase Order Number (TUC-XXXXX)
All Purchase Orders will be encumbered, this means a preliminary charge is made to the project, committing project funds and making them unavailable for other purchases.
Incremental Fulfillment of the Purchase Order
TUC monitors of partial and incremental payments to vendor via log maintained by TUC Financial Services
Maintenance/ Adjustments to the Purchase Order
Maintaining, updating and closing out incorrect encumbrances result in a more accurate picture of the financial standing of the project and free up committed funds for other uses. It is therefore necessary to periodically review all outstanding encumbrances:
Once a Purchase Order is submitted to TUC and encumbered in the project changes/adjustments can be made as follows:
Changes that do not effect expenditures:
Submit a memo or email to TUC
The vendor invoice will be lower than the Purchase Order:
Submit a memo or email to TUC
The vendor invoice will exceed the Purchase Order by less than $50:
No action is necessary.
The vendor invoice will exceed the Purchase Order by equal to or more than $200, but less than $1,000:
Submit a Check Request for the differential amount (refer to the Purchase Order Number).
The vendor invoice will exceed the Purchase Order by equal to or more than $1,000: Submit a Purchase Order for new total amount, and a Check Request for the differential amount. Both Purchase Order and Check Request must contain a reference to the original Purchase Order Number.
Note: The new total amount of the Purchase Order determines if a Quote/Bid or Sole Source Justification will be required.
Manual Closeout of Purchase Orders
Once the goods and services ordered in the Purchase Order have been delivered and the vendor invoice has been paid in full, Purchase Order is automatically closed out. However, residual amounts of open Purchase Orders will remain encumbered, until the Principal Investigator closes them out.
- The final amount invoiced by the vendor is smaller than the Purchase Order.
- Products or services partially or completely unavailable
PI will send a memo or an email to TUC closing out the Purchase Order.
Date of Last Revision: 06/14/19
Stacey Lord Accounts Payable Supervisor, Financial Services
Phone: 818-677-7289; Email: