Board of Trustees Approval Threshold Change Reminders

At the June 06 – 07, 2019 Board of Trustees Meeting, several expenditure thresholds requiring Board of Trustees approval were revised. See summary of revisions below:

  • The purchase or lease of equipment threshold increased from $500,000 to $750,000.
  • Technology acquisitions threshold, not included in the annual technology plans, increased from $500,000 to $750,000. The revised rule also clarifies technology as inclusive of all aspects – hardware, software, associated services, upgrades and expansions.
  • Previously, all consulting and professional service agreements over $250,000 and goods and services over $1,000,000 if not competitively bid were subject to the System Office Heightened Review process. Now, those same thresholds are subject to Board of Trustees approval, further clarified as follows: Goods over $1,000,000 unless competitively bid; Consulting and professional services over $250,000 regardless of whether the contracts result from a competitive process.
  • Capital projects that involve construction, demolition, or renovation of University facilities threshold increased from $750,000 to $1,000,000.

The above threshold changes became effective immediately upon approval at the June meetings.  The System Office is in the process of updating the Board Manual which can be referred to for full context once updates are complete.

What is the role of Procurement Services in these changes?

Procurement is the conduit for all purchases/contracts.  By starting with Procurement, we can help navigate the process.

What do the submission requirements include?

  • Complete the Contract Summary Term Sheet, which will be provided by Contract Management. The Contract Summary Sheet will request information such as:
    • What is the rationale for not bidding this agreement?
    • Justification/How does this Contract promote the Campus Strategic Plan & UA System’s Core Principles?
    • Contractor Selection Process/Explain how the offered price was determined to be a reasonable one?
    • Please list other higher education clients, if any, the vendor had contract(s) with during the past five years.
    • Please list other organizations in the State of Alabama the vendor had contract(s) with during the past five years.

What are the deadlines for items to be submitted for upcoming Board Meetings?

  • February 6-7, 2020 Meeting
    • must be submitted to Procurement by November 22, 2019.
  • April 9-10, 2020 Meeting
    • must be submitted to Procurement by February 7, 2020.
  • June 4-5, 2020 Meeting
    • must be submitted to Procurement by April 3, 2020.