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.
- The Direct Buy Limit for goods and services is $10,000 (excluding tax) (effective 8/1/2012)
- 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.
(Click the picture to view)
- 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?
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).