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 up to $10,000 (excluding tax) (effective 8/1/2012)

What are the Dollar Limits for the various order methods?

With the many order methods available for ordering and paying, how do you know which to use and the dollar limit associated with each? The table below specifies the different ordering and paying methods and their dollar limit.

eProcurement Module Comparison

A chart that compares the different eProcurement modules and when to use them.

(Click the picture to view)

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).

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

Why is this?

  • UW has established competitive contracts with all the catalog suppliers in eProcurement.
    You can purchase at any dollar amount approved by your department.
  • You can purchase through eProcurement with full confidence that your transaction and any follow up actions such as delivery, installation, returns and maintenance are protected by a formal contract with the supplier.
  • eProcurement is the preferred purchasing method

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).

 

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