Subject: SMALL PURCHASING PROCEDURES - COMMODITY1. A small purchase procedure may be used by the University when the procurement for a total requirement is estimated not to exceed the aggregate amount of Twenty Thousand Dollars ($20,000) for any one order. This procedure must not be used when otherwise restricted by any other provisions of the University's Policy Manual. 2. Procurement requirements shall not be parceled, split, divided or purchased over a period of time to avoid the dollar limitations of this small purchase procedure. Repetitive requirements over an annual period which, cumulative, will generate a total expenditure exceeding limits set forth in University Policy Manual should be sent to the Department of Purchasing for the bidding of and awarding of a price agreement.
3. Purchasing shall informally obtain, from qualified sources of supply, one (1) price quote for small purchases less than Five Thousand Dollars ($5,000); and at least three (3) price quotations for purchases between Five Thousand Dollors ($5,000) and Ten Thousand dollars )$10,000; and at least five (5) price quotations for purchases between Ten Thousand Dollars ($10,000) and Twenty Thousand Dollars ($20,000). Quotes may be obtained by Phone, fax, or other electronic means. The University Request for Quotation is recommended for this purpose. The price quotations received, a tabulation of prices offered, and comments by the Buyer (see paragraph 4) handling the small purchase concerning the basis selected for placing the order, shall be recorded in writing and shall be filed in a small purchase order file to be maintained by the University. These records are retained by the University purchasing function for record and audit review; they are not forwarded with the payment documents.
4. Every determination by a Purchasing Officer of any procurement activity or function as proved by KRS, Chapter 45A or regulations adopted pursuant thereto, shall be made in writing based on written findings in support of a decision, and shall be signed by the employee making said determination except when award is made to low bid. All determinations shall be retained in an official contract file.
5. Any procurement of insurance in excess of Ten Thousand Dollars ($10,000) must have the written approval of the Commissioner of Insurance.
Ref: KRS 13.085 (2), KRS 45A.100, BO-111-55-00.