PURCHASES UNDER $2,500 (LOW VALUE)

Note: Department personnel executing the LVPA are purchasing agents representing the University and the Regents. They must maintain and practice the highest standards of business ethics, observe applicable laws and policies, and avoid any semblance of a conflict of interest. (See Business and Finance Bulletin 43, Part 7 and Appendix B).

The Low Value Purchase Order process allows delegated UCSB departmental buyers to purchase routine, low dollar supplies and services for values that do not exceed $2,500.00 including tax, (excluding freight and handling charges), with the exception of the restricted items listed below.

With the exception of the restricted items listed below, and upon successful completion of training with a Purchasing representative, the departmental buyer has a low value purchase delegation not to exceed $2,500 per order (including tax, but excluding freight and handling charges) for
materials, supplies, services and repairs. This delegation limit may be set lower by the authorizing department or by the Purchasing Department. Departments are encouraged to utilize campus sources of goods and services such as Central Stores.

Individuals with approved delegation of departmental purchasing authority may generate these orders by issuing a Request for Delivery form to the vendor. Authority is granted by the Assistant Director of Business Services. The Department Head or MSO delegates authority via the Low Value Purchase Authorization (LVPA) form, or through ALLN01 mainframe access.

Department Order (LVPA) Authority Information

The reason for establishing a delegation of departmental authority for processing low value purchases is to facilitate the ordering and processing of routine high-volume, low cost supplies and services by the people who are making the commitment with the vendor. The LVPA is intended to give departments the ability to commit these routine types of purchases quickly and easily.

Departments are reminded to inform their faculty and staff of the following restrictions and limitations regarding delegation of departmental purchasing:

• Purchases are not to be artificially divided to avoid processing high value requisitions;
• Purchases of items defined as equipment (a freestanding item greater than $5,000, with a useful life of at least one year) shall not be made using departmental purchasing authority but must be made by processing a high value purchase requisition with a professional buyer;
• Purchases for amounts of less than $2500 requiring unique attention such as split funding and change in accounting distribution must be made by processing a high value requisition with a professional buyer;
• Transactions that will likely result in multiple invoices or in performance of services/delivery of goods for several months from the date of the low value transaction shall be processed as a vendor blanket using a high value requisition;
• Purchases, contracts or commitments for restricted items (see below).
• The above purchase requirements shall be covered by issuing a high value requisition for processing by the professional buyers in Purchasing even if the value of the transaction is less than $2,500.00

RESTRICTED ITEMS

Neither a Low Value Purchase Order nor the FlexCard should be used to purchase these items. Refer to the Low Value Commodities Not Permitted List and the 'Approved Purchase Methods' column to determine the appropriate purchasing method. For items where a contract is required. Do not sign supplier contracts/agreements, including those for maintenance, service or blanket agreements, vehicle rentals, leases or purchases.

It is not recommended that you use a low value purchase order for recurring items or services.

If you have any questions, please contact Lisa Klock in the Purchasing Department at x4073 or by email at lisa.klock@purc.ucsb.edu

Individuals receiving this delegation are responsible for complying with all applicable University policies and procedures.

Business Affirmative Action
It is the policy of the University of California to optimize opportunities and to ensure the placement of a fair proportion of business contracts with small business enterprises, particularly small disadvantaged and women owned businesses. It is essential that all departments with LVPA delegations utilize targeted vendors to the maximum extent possible.

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HOW TO REQUEST A NEW, OR CHANGE AN EXISTING, LOW VALUE AUTHORIZATION

Department personnel trained in using REX (the campus online Purchasing system accessed via ALLN01), should request and maintain department low value authorizations by means of the REX system. For information regarding REX Online Training, contact Purchasing at x4073.

Only Departments that do not have access to the REX system should submit a Low-Value Purchase Authorization Form.(*pdf) Please complete the form with proper signing authority and submit the original to the Purchasing Department. A Purchasing Representative will contact you with confirmation of your request.

See On-line Access to REX for access instructions.

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FOREIGN PURCHASES UNDER $2,500

All purchases shipped from a location outside the United States must clear customs before entering the country.

The University of California has a contract with a custom broker who provides these services to the University. You must place the following information on the low value purchase order:

Customs Broker:
Air Sea Forwarders (if needed, the UC contract # is 085/SD/008)
9009 La Cienega Blvd.
Inglewood, CA 90301
Phone: (310) 216-1616
Fax: (310) 216-2625

Important: Designate on the order that the point of entry into the United States MUST be Los Angeles, California.

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Purchase Goods & Services | Small Business Program | Removal Procedures | Hiring Temporary Personnel
Hints for Dealing with Vendors | Purchasing Agreements | Purchasing Policies & Procedures

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