2.1 General Guidelines (Revised 04-04-2017)


Procurement & Strategic Sourcing (Procurement) is the central department responsible for the acquisition and purchase of equipment, supplies, and services for the University. This authority is vested by the Board of Governors per University Policy 04-6, Contract Signatories. Procurement is responsible for obtaining the best value for the University in the procurement of all goods and services. This responsibility must be discharged in accordance with ethical practices of the purchasing profession. Procurement is committed to adhering to the codes of conduct, obligations, and ethics mandated by the National Association of Educational Procurement (NAEP) and the Institute for Supply Management (ISM). We conform to the laws of the Uniform Commercial Code and all laws stipulated by local, state and federal government.


The following are terms and definitions of some commonly used terms in the procurement cycle:


Funds reserved for a financial obligation. (WayneBuy establishes PO encumbrances through a system integration).

Change Order

Request (COR)

The online WayneBuy amendment form generated by a department to request Purchasing to amend an existing purchase order.

Purchase Requisition


The online WayneBuy Requisition form generated by a department to request the purchase of goods or services from an individual or a company.

Receiving Report

The online WayneBuy Receiving form which must be completed by Central Receiving or a department to acknowledge receipt of goods or services.

Vendor or Supplier

A company or individual who provides specified goods and/or services to the University.

Request for

Information (RFI)

This is a process initiated by Procurement when a need has been identified by a department for either goods or services, and it is necessary to obtain general budgetary information, seek industry specifications, or search the market place for potential sources of supply.

Request for Proposal (RFP)

This is a formal process initiated by Procurement when a need has been identified by a department for specialized goods or services. This process is used when a competitive bid for lowest dollar alone may not necessarily determine the best value for the University.

Request for Quotation (RFQ)

This is a formal bid request initiated by Procurement. This process is used when exact goods or specific services have been identified and the lowest bid (with acceptable delivery, finance terms and service after the sale) will be awarded the order.


The Board of Governors Contract Award Statute, Wayne State University Statutes Section 2.81.01, requires routine contracts in excess of $25,000 to be awarded on the basis of competitive bid or request for proposal. In addition, Procurement reserves the right to solicit competitive bids at any amount, whenever known competition exists. Please see APPM section 2.4 for description of the competitive bid, Request for Information (RFI), and Request for Proposal (RFP) processes.

This policy will be revised to incorporate new standards set by the Federal Office of Planning and Management's Uniform Administrative Requirements, Cost Principles, & Audit Requirements for Federal Awards; Title 2, Subtitle A, Chapter II, Part 200 – Procurement Standards Sections 200.317 through 200.326. The revised policy will take effect no later than the commencement of the University's fiscal year 2018, or October 1, 2018. Key changes may include adjustments to the university's bid limit, the introduction of the terms Micro Purchase, Small Purchase, Sealed Bids, and Competitive Proposals, and the allowable purchases and thresholds under each category. The final wording of the Uniform Requirements will determine the future update to this policy. The complete policy can be found at U.S Government Publishing Office's site by clicking on this link.

Any written agreement between WSU and a non-WSU party is a contract and is enforceable by law. University Policy 04-6, Contract Signatories, identifies the administrative officers who have the authority to sign contracts, and any subsequent delegation of their authority. Signatory authority may not be delegated below levels designated by the University Policy. It is the Department's responsibility to strictly adhere to this policy.

No contract may be signed on behalf of WSU unless it has first been approved, in writing, by the Office of the General Counsel (OGC). Exceptions to this rule include, but are not limited to, University Contract Forms, such as the Personal Services Agreement, the FP&M Construction Contract, the DOSO/Housing Artist contract, and the University Purchase Order, provided they have not been modified in any manner. OGC has also granted exceptions for routine banquet agreements, routine equipment maintenance agreements, and individual use end-user software license agreements.

The Wayne State University (WSU) Purchase Order (PO) is a legal and binding contract. The PO is an offer to buy the specific goods or services described therein. All contract documents or agreements pertaining to a new or existing purchase order (PO) must be authorized in writing by Procurement. Purchases for equipment items at the capital asset level (currently $5,000 or more), using federal grant and contract funds, must have prior approval of the Sponsored Programs Administration (SPA), and the sponsoring Federal Agency, before a Purchase Order is issued.

SPA is responsible for all tentative account/index activity. Therefore, all purchase requisitions and change order requests that involve tentative accounts must have the prior approval of SPA. Special authorization is required for the purchase of certain goods and services. Please refer to Special Approvals 2.2.1, Requisitioning Policy for the identification of those goods and services and the units authorized to approve the acquisition.

It is the responsibility of all faculty and staff to take appropriate steps to ensure that the University does not knowingly enter into any procurement transaction which could result in a conflict of interest situation. Procurement brings any situation that appears to be questionable to the immediate attention of the appropriate University officers. Business transactions involving University employees are strictly prohibited unless they are specifically approved in advance by the Board of Governors as a board resolution. Prohibited transactions include purchases from or contract with

1) An employee of the University

2) A firm in which the University employee is a partner, employee, director, officer, substantial stockholder, or stands to achieve personal or monetary gain; and/or where the University employee has solicited the contract, engaged in negotiation regarding the contract, or represented either the firm or the University in the transaction.

Please refer to University Policy 05-4 "Contracts between Wayne State University and External Organizations in Which University Employees Participate" for further information on the Conflict of Interest policy.

All goods and services purchased using University funds must be delivered to a University address. There are two options to physically receive these items.

1) Central Receiving (and certain specified locations) accepts delivery of goods and completes the receiving function in the University's eProcurement system, WayneBuy.

2) For goods or services delivered directly to a department, the department must immediately record the receipt in WayneBuy.  Job Aids for completion of online receivers and other WayneBuy related processes can be found at procurement.wayne.edu/waynebuy/jobaids.php.

For all PO related deliveries, it is critical that an accurate record of the receipt is entered into WayneBuy. Any shipping or delivery discrepancies must be reported to Procurement immediately, as the Uniform Commercial Code limits the timeframe in which the University can make a claim.

Vendors are to send all invoices and billing inquiries related to POs to Accounts Payable at the address indicated on the PO (unless instructed otherwise by Procurement via the PO).

The University encourages the use of a University Procurement Card for the purchase of small dollar items with a transaction amount below $2,000, provided no special approval is required to make the purchase (see APPM 2.2.1). For specific details on Procurement Card policy and procedure, please reference APPM 2.7.


Under certain circumstances, there are other methods of procurement / payment that may be used. Please refer to APPM sections 1.3.2, Special Payment Authorization, (SPA) 10-102A, and 1.3.6, Petty Cash, for more information about these other methods of payment.


This Policy applies to all WSU employees and external contractors involved in the procurement of goods and services for the University.