LVPO

Faculty Senate

Recommendations of the URI Task Force on Purchasing Policy

February 2003

PREMISE: LIMITED VALUE PURCHASE ORDER RESTRICTIONS IMPEDE RESEARCH PRODUCTIVITY AT URI.

URI: EACH PURCHASE ORDER BETWEEN $500 AND $2,500 REQUIRES 3 QUOTES.

OVERT COST OF COMPLIANCE WITH THIS SINGLE REGULATION: AT LEAST $111,700 PER YEAR.

FEDERAL ACQUISITION REGULATION (FAR) GUIDELINES: $2,500.

RHODE ISLAND STATE LAW: $5,000, BUTŠ.

RHODE ISLAND DEPARTMENT OFADMINISTRATION REGULATIONS: $1,000, BUTŠ.

RHODE ISLAND BOARD OF GOVERNORS SETS THE LIMIT AT $500

IN THEORY: LOW LIMIT IN RHODE ISLAND PROMOTES VENDOR COMPETITION.

IN PRACTICE: LOW LIMIT AT URI APPLIED TO FUNDS SUPPORTING RESEARCH IS INAPPROPRIATE, COST INEFFICIENT, AND COUNTERPRODUCTIVE, AND THEREFORE IS ANTICOMPETITIVE.

THE LOW LIMIT AT URI IS ALSO ABERRANT :

ORDER LIMITS NOT REQUIRING QUOTES OR BIDS:

THE UNIVERSITY OF RHODE ISLAND COMPARED TO 26 OTHER STATE-SUPPORTED UNIVERSITIES

Institution	PO Limit	Credit Card*

University of Rhode Island	500	No

Iowa State University	5,000	Yes
Oregon State University	5,000	Yes
University of California at Davis	2,500	Yes
University of Florida at Gainesville	5,000	Yes
University of Idaho	5,000	Yes
University of Illinois at Springfield	5,000	Yes
University of Iowa	2,000	No
University of Kansas	5,000	No
University of Kentucky	2,500	Yes
University of Maine	5,000	Yes
University of Maryland	5,000	Yes
University of Massachusetts at Amherst	5,000	Yes
University of Michigan at Flint	5,000	Yes
University of Michigan at Ann Arbor	5,000	Yes
University of Minnesota, Twin Cities	10,000	Yes
University of Missouri at Columbia	5,000	Yes
University of Montana at Missoula	5,000	Yes
University of Nebraska at Lincoln	5,000	Yes
University of Nevada at Reno	5,000	Yes
University of New Mexico	10,000	Yes
University of North Carolina at Charleston	2,500	Yes
University of Wisconsin	5,000	Yes
University of Wyoming	7,500	Yes
University of Washington	3,000	Yes
Washington State University	2,500	Yes

*The limits on card purchases may be equal to or less than those on purchase orders.

Recommendation:

That the Faculty Senate endorse the following recommendation of the URI Task Force on Purchasing Policy:

Immediately increase the Limited Value Purchase Order limit applying to ledger 3 and 5 grant and contract funds at URI to at least the current F.A.R. (Federal Acquisition Regulation) guideline of $2,500, and adjust this limit to be consistent with future revisions in F.A.R. guidelines.

Faculty Senate

Recommendations of the URI Task Force on Purchasing Policy

February 2003

ORDER LIMITS NOT REQUIRING QUOTES OR BIDS:

THE UNIVERSITY OF RHODE ISLAND COMPARED TO 26 OTHER STATE-SUPPORTED UNIVERSITIES

Institution

PO Limit

Credit Card*

University of Rhode Island

500

No

Iowa State University

5,000

Yes

Oregon State University

5,000

Yes

University of California at Davis

2,500

Yes

University of Florida at Gainesville

5,000

Yes

University of Idaho

5,000

Yes

University of Illinois at Springfield

5,000

Yes

University of Iowa

2,000

No

University of Kansas

5,000

No

University of Kentucky

2,500

Yes

University of Maine

5,000

Yes

University of Maryland

5,000

Yes

University of Massachusetts at Amherst

5,000

Yes

University of Michigan at Flint

5,000

Yes

University of Michigan at Ann Arbor

5,000

Yes

University of Minnesota, Twin Cities

10,000

Yes

University of Missouri at Columbia

5,000

Yes

University of Montana at Missoula

5,000

Yes

University of Nebraska at Lincoln

5,000

Yes

University of Nevada at Reno

5,000

Yes

University of New Mexico

10,000

Yes

University of North Carolina at Charleston

2,500

Yes

University of Wisconsin

5,000

Yes

University of Wyoming

7,500

Yes