To establish responsibility for ensuring compliance with University procurement policy.
April, 2020Responsible Office
Procurement Services, in conjunction with the Office of the Comptroller, is responsible for ensuring compliance with University procurement policy.
Authorization to suppliers for the purchase of products and services must be made through an approved University Purchase Order (PO) or a Procurement Card (P-Card).
Certain payments (e.g. bank fees, royalties, etc.) may be processed through means other than a University purchase order or a Purchasing Card. Procurement Services maintains and online Commodity Matrix, which offers further information on which payments are to be processed by methods other than a PO or P-Card.
All approved University suppliers are accessible in the Penn Marketplace. Procurement Services, in conjunction with Accounts Payable, has been delegated responsibility for managing the University supplier database.
Final approval authority for University POs less than $10,000 in value has been delegated to authorized faculty and staff in the Schools and Centers. However, all University purchase orders less than $10,000 in value, requiring the review, approval and signature of a supplier contract or agreement, must be forwarded, along with the legal document(s) and supporting documentation, to Procurement Services for final approval and signature.
All University purchase orders equal to or greater than $10,000 are subject to Procurement Services final review and approval. All supporting documentation relevant to the purchase request, (e.g., quotations, proposed contracts and agreements, relevant correspondence, etc.), must be forwarded to Procurement Services for review and approval prior to the issuance of a University purchase order.
Any procurement agreement requiring signature authorization must be reviewed by the Procurement Services Department and/or the Office of the General Counsel for execution (signature). Only the Executive Director of Procurement Services, statutory officers of the University, or their authorized designee may execute contracts or formal agreements with suppliers.
Competitive bids are required for all purchases with an aggregate value of $10,000 or more (see Policy #2308, Competitive Bidding). Competitive bids are not required when purchasing goods or services from a Preferred Contract Supplier, as designated by Procurement Services. A Preferred Contract Supplier is a supplier for which a contract has been strategically sourced. Preferred Contract Supplier status is not an indicator that the supplier guarantees the best pricing or service in every situation; therefore Penn administrators are encouraged to use their business judgment and solicit bids in any case where the School or Center would benefit from that effort.