Revised procurement SPG increases bid limit, adds flexibility


A revised Standard Practice Guide covering procurement takes effect March 12 and offers units more flexibility when purchasing goods and services to support the University of Michigan’s missions of research, education and patient care.

“The centerpiece of the revised procurement SPG is a significant increase to U-M’s formal bid limit, which is increasing to $50,000 from $10,000,” said Tally Thrasher, assistant vice president and chief procurement officer.

“This new bid limit puts U-M in line with the majority of other Big Ten universities and the state of Michigan, while complying with federal regulations.”

The revised policy was developed based on feedback from the U-M community and a review of procurement policies at Big Ten universities.

Thrasher added that SPG 507.01 also includes an updated sole-source process and offers Procurement Services additional flexibility to help units determine the best method to secure fair and reasonable pricing.

Beyond that, the SPG underscores U-M’s commitment to supplier diversity as well as sustainable purchasing practices, and is considerably shorter than its predecessor, since most procedural or process details are now located on the Procurement Services website.

“This marks the first time in several years that U-M’s procurement policy has been modified,” Thrasher said. “And it’s an integral component of our Procurement Optimization Program, a transformation initiative that Procurement Services launched last fall in partnership with the university community to make it easier, faster and more cost-effective to buy goods and services.”


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