PRO-408 Purchase Requisitions, Orders and Methods of Payment

SCOPE: 

The purpose of this policy is to establish authority and official procedure for proper use of various methods for purchasing and payment, including use of purchase orders (hard copy or electronic dispatch), direct charges and purchasing cards (P-Cards).

POLICY: 

The State Bureau of Procurement and agencies have a responsibility to ensure orders and payment methods are used appropriately.


Requisitions

Unless otherwise stated herein, all goods and contractual services purchased for and furnished to an agency will be done through a requisition process as prescribed by the Bureau. The agency purchasing office is authorized to administer the requisition process within the agency it serves.


Purchase Orders

A purchase order is required for all purchases unless the amount is under the purchase order threshold or made through authorized Direct Charge or P-Card. Purchase orders are issued by agencies with delegated authority to place, change or cancel orders. See PRO-101, Procurement Definitions and Thresholds.

Regardless of the dollar amount, all purchase orders must be supported by proper procurement authority using approved methods. See PRO-301, Competitive Procurement Policy.
 
The purchase order is a contract. A separate contract may also be attached to or be referenced in the purchase order.

All printing, regardless of dollar amount, requires a purchase order. Only staff properly authorized by their agency will issue purchase orders.


Direct Charges/Payments

Certain categories of expenditures and certain transactions under the purchase order threshold may be direct-charged/paid per section III. However, where competition exists, the agency will follow established bidding procedures.


Purchasing Card (P-Card)

The state-issued P-Card is a tool to manage low-dollar purchases using a more efficient payment process only in certain merchant and supply or service categories.  

P-Cards are authorized for individual purchases up to the P-Card threshold (or lower if required by the agency). See PRO-101, Procurement Definitions and Thresholds. P-Card purchases may exceed the defined threshold only when used exclusively on statewide contracts with proper authorization by the Bureau and the State Controller’s Office. The P-Card is not a means to avoid appropriate procurement or payment procedures.

The cardholder is responsible for maintaining security of the card and any misuse as outlined in PRO-410, Purchasing Card.

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PRO-408 Purchase Requisitions, Orders and Methods of Payment