WHEN IS A PURCHASE REQUISITION REQUIRED?
A purchase requisition is simply an authorized request for the purchase of goods or services through the Purchasing Department. The following are examples of when a requisition is needed.
- You are making a purchase that will exceed the departmental delegated limit of $5,000 (including shipping and handling costs). Submit a requisition through Purchasing.
- You want some printing done using state appropriated funds over $1,000. Submit requisition to Purchasing with complete printing specs. Purchasing will obtain competitive bids per constitutional requirement.
- The purchase falls within your delegated limit, but the vendor is asking for a formal Purchase Order. Complete a delegated order form and send to vendor. Only then, if the vendor does not accept that authorization, complete a purchase requisition and submit to Purchasing.
- You are trying to purchase an item that must be tagged for inventory because it is considered a controlled property purchase. Controlled property includes computers, fax machines, printers, projectors, TVs, VCRs and digital cameras and camcorders if the individual value exceeds $500 per unit.
Please contact the Purchasing Department with any question in regards to purchase requisition requirements.
REQUIRED ELEMENTS OF A PURCHASE REQUISITION
Instructions to complete a purchase requisition in PeopleSoft Work flow can be found here under the heading “Purchase Requisitions Workflow Entry”.
Before you begin entering a requisition in PeopleSoft, be sure you have the following information:
- The requisition should state a complete description of item(s) being ordered. Specifications should be concise, but complete in detail. The catalog number or model number alone may be insufficient to process the order.
- Quantity and unit of measurement;
- Either estimated or actual cost. Note: Estimated cost should be reasonably accurate. Generally, unless given other instructions by the department, if the actual total is within 15% of the department’s estimates, Purchasing will place the order without further department notification.
- A brief statement of the intended use or purpose for which the requisitioned goods or service is required.
- Vendor contact name and phone number
- Complete PeopleSoft cost center information
- A suggested source for the goods or service including phone number and fax number if known. Note: the key words here are suggested source. The Purchasing Department will make the final determination on the vendor used.
- Any special delivery instructions; i.e. (Central Receiving, Receiving Door #2 )
All requisitions must be approved electronically by the cost center authority prior to sending to Purchasing.
REQUISITIONS TO BE PAID FOR WITH GRANT FUNDS
Requisitions for goods or services using Grant fund cost centers (fund number beginning with 5) require the additional approval of the Research Administrator before the requisition can be processed by the Purchasing department. Please choose the appropriate approval path for Grant Funds (Dept/Coll/Div-OCG-Purchasing Office).
PURCHASING STAFF PROCEDURES ONCE REQUISITION IS RECEIVED
Once the Purchasing staff receives your requisition, they will review it for completeness. Requisitions will be denied for incorrect cost center, incomplete or vague descriptions or specifications, no intended purpose or questionable intended purpose.
For purchases between $5,000 and $25,000 purchasing is required to solicit informal bids. Purchasing will send a minimum of three (3) telephone, e-mail or fax bids to vendors. A minimum of two (2) State of Texas certified Historically Underutilized Businesses (HUBs) will be contacted if available for that purchase.
For purchases over $25,000 purchasing is required to solicit formal bids. Purchasing will work with the department to draft a formal bid with all needed specifications for the good or service requisitioned. Purchasing will post bids on the State of Texas Electronic State Business Daily (ESBD) website for a minimum of 14 days.
Requisitions received regardless of dollar amount that are utilizing an available contract (UHV, UHS, State of Texas, DIR, Cooperative purchasing network) are not required to be bid again.
Once the required bid process is completed Purchasing will either return the requisition for updating based on new bid information or will process the requisition directly into a Purchase Order. Generally, allow 30 days for delivery of most goods or services after a purchase order is issued.
Note: If you do not think the required bid process will be beneficial because the good or service is a proprietary purchase include the completed University of Houston System Sole Source Justification with the requisition and purchasing will review for applicability.