Direct Buy Limit
What is it?
- The “direct buy limit” is the dollar limitation set by state law under which purchases may be made without securing competitive pricing. Departments may place orders with suppliers of choice within the direct buy limit without prior approval of Purchasing Services. Some exceptions may apply to the purchase of certain items, and by order method.
What is the current Direct Buy Limit?
- The Direct Buy Limit for goods and services is $10,000 (excluding tax) (effective 8/1/2012)
What are the Dollar Limits for the various order methods?
| ORDER METHOD |
DOLLAR LIMIT (per order) |
RESTRICTIONS / EXCEPTIONS |
|---|---|---|
|
eProcurement Catalog |
No dollar limit | None other than within your department |
| $10,000 | See exceptions list | |
|
Direct Buy in PAS is limited to orders up to $5,000 that require a written order and/or do not include attachments |
$5,000 | If PAS is used for purchases below the PAS “direct-buy” limit (before tax and freight), a “below small dollar limit” justification must be entered as part of the PAS requisition |
|
PAS Orders under $5,000 with attachments - or - Over $5,000 with or without attachments |
Buying Staff will determine best buying approach | When using PAS for orders between $5,000 and $10,000 when prompted for a sole justification in PAS, enter “within direct buy limit” |
|
PAS Orders over $10,000 |
Buying Staff will determine best buying approach | When using PAS for orders between $5,000 and $10,000 when prompted for a sole justification in PAS, enter “within direct buy limit” |
| Procard | $3,500 |
Exceptions:
|
|
eReimbursement |
$3,500 | See exceptions list |
|
Check Request - Honoraria |
$10,000 | See Honoraria page |
Exceptions to the Direct Buy Limit:
- There are small dollar “exception items that can be purchased using PAS requisitions, but the exception must be noted in the requisition. Purchases with a cost exceeding the direct-buy-limit require participation by Purchasing buyers, (exception: eProcurement purchases from contract vendors).
|
Why is this?
|
How does this apply to Procard?
- There is no change to the Procard transaction limit. The single transaction limit of $3,500 including tax, freight, etc, will remain the same. If a Procard purchase exceeds the single transaction limit, the Procard Staff can approve that transaction by request of the department approving the purchase. Please see the ProCard website for the transaction limit increase procedure.
-
IF PAS is used for purchases below the direct-buy limit (before tax and/or freight), a “below small dollar limit” justification must be entered as part of the PAS requisition (effective 7/1/2009).

Did you know the direct buy limit does not apply to eProcurement transactions?