Table of Contents

Policy Buyer's Approval Limits on Purchase Orders
Procedures Capital Equipment
Purchase Requisition Surplus Policy
Purchase Order  


Extra Resources  
PeopleSoft Create a Purchase Requesition PeopleSoft Accept a Purchase Requisition
PeopleSoft Add Vendor Form  


The Purchasing Department of Brigham Young University-Hawaii is the authorized agent of the University for making commitments to off–campus vendors for the purchase of supplies, equipment, and services in behalf of departments at the University, except the BYU–Hawaii Bookstore.  

Purchasing is responsible for all aspects of purchasing goods and services and for establishing related policy and procedures for the University.  Purchasing will strive to satisfy customers’ needs within established policy, and obtain the best net value to the University in all transactions.  Purchasing should be involved in the entire transaction process-from helping to establish the specifications given to vendors, to ensuring satisfactory delivery of requested goods and services.  No goods or services should be purchased or committed without proper prior approval.


The Purchasing Department conducts the purchasing function in accordance with the ethical practices of the purchasing profession and makes decisions that result in the best net value to the University. (Net value includes several factors: timely delivery, service, quality price, etc.) Requesting departments should specify what is needed in enough detail and clarity so that Purchasing and the vendor(s) have no question as to what is wanted.  Purchasing will give assistance in writing specifications, if requested.

All department proposals and contracts processed through the purchasing system must be reviewed by Purchasing prior to processing a purchase order to a vendor.  No final commitments should be made by department personnel on the terms, scope of work and pricing of the contract without prior involvement and communication with Purchasing. After the fact purchases that do not comply with the process of the purchasing cycle (Purchase Requisition, Purchase Order, Receiving, Invoicing, and Payables), will be reviewed on a case by case basis to determine if the requestor had a valid reason in not following purchasing procedures.  Verbal communications will be made to educate the requestor about following procedures and written violation letters will be sent if it is determined that the requestor’s order was done intentionally to circumvent the Purchasing cycle.


When a department needs to purchase a product or service, they should first consult with Purchasing to determine if an existing Preferred Vendor contract that can be used to procure the necessary items.

If there is no Preferred Vendor for the product or service needed, the department should request Purchasing to obtain verbal or written bids from at least two or three vendors for purchases between $5,000 to $10,000.  If the product or service is over $10,000, at least two or three written bids must be solicited.

a.   Purchasing will work with the department to determine which vendor to do business with.  Obtaining competitive bids allows the university to make a decision based on a best net value assessment of their quote or proposal (taking into account a variety of factors in addition to price, such as delivery capabilities, quality, past performance, training, reporting capabilities, compliance with specifications/requirements, financial stability, etc.).

b.   The award should be made to the responsive and responsible bidder that offers the best combination of all of these factors.  If a sole source is chosen as the vendor, it is required that the department work with Purchasing to properly document and substantiate why the decision was made.                                               

In keeping with Purchasing's responsibility to purchase goods that give the University the best net value, Purchasing may not always buy from the source suggested on the purchase requisition. Purchasing’s effectiveness in negotiating and buying is seriously hampered by department personnel stating preferences and making premature commitments to vendors.  This can cause considerable misunderstanding and damaged relationships with our valued vendors. Every effort will be made to work with the department to determine the appropriate vendor for a particular purpose. No goods or services should be purchased or committed without proper prior approval for purchase requisitions more than $1,000.  Purchasing cards may be used for payment or purchases over $1,000 after prior approval has been given through the Procurement Director.



Generally, campus purchases must be made by submitting a Purchase Requisition to Purchasing. A purchase requisition is the “internal” tool used to identify items to be purchased from off-campus suppliers. Purchase Requisitions do not have a minimum or maximum dollar limit. Individuals are encouraged to use Purchasing Cards for transactions less than $1,000; however, if the buying department wishes to use the Purchasing Department for items under $1,000, the same procedures apply.

Departments may authorize personnel to contact vendors to determine specifications or to obtain estimated costs but may not initiate a binding agreement or commit funds. Although items considered to be "sole-source" may not be competitively bid, other opportunities exist for negotiation. Therefore, "sole-source" purchases are not exempt from this policy.

Purchase requisitions are completed by the requesting Department with the information required including budget steward authorization, account code information, item description, etc.

For purchases less than $2,500, selection can be made by a requestor determining the best value to the University. No quotations are required, but comparison pricing is suggested.


The Purchasing Department will process the requisition as follows for non-contracted items:

  • Purchases from $2,500 - $5,000 require a purchase requisition, and a purchase order.  Purchasing Buyers will have the option of obtaining verbal or written bids on a case by case basis.
  • All purchases over $5,000 to $10,000 require a purchase requisition, purchase order and two or more verbal or written quotations.  When competing quotations are not available, documentation must include an explanation.
  • All purchases over $10,000 require a purchase requisition, purchase order and at least two or three written quotations. When competing quotations are not available, documentation must include an explanation.

Correspondence with suppliers relating to present orders, for the purpose of changing specifications, quantities, delivery requirements, or cancellations shall be directed to Purchasing personnel who then will make the communication to the supplier.  Purchasing will keep departments apprised of the status of each of their orders. Purchasing desires to work cooperatively with all University personnel. 

The Purchasing Department may not alter specifications shown on the Purchase Requisition without the permission of the requesting department. However, Purchasing may discuss stated specifications, available alternatives, current market conditions, and quality considerations with the requesting department. 

University organizations should retain copies of their issued Purchase Requisitions for a minimum of one year beyond the current fiscal year.


When a properly completed and authorized purchase requisition is entered into the University’s electronic purchasing system (PeopleSoft), it is assigned a purchase order number.  Eventually, that number is committed to the selected supplier.  The Purchasing Department is not required to purchase from suggested sources.

Once a purchase number has been issued to a supplier, only the Purchasing Department can make changes to specifications, quantities, pricing or delivery instructions with the vendor.  If a change is needed to a purchase order, contact the Buyer who placed the order with the supplier.

To obtain payments for goods or services specified on purchase orders, suppliers are required to include purchase order numbers on their invoices. All supplier invoices must be sent to the Accounts Payable Department.

Generally, suppliers are instructed to deliver materials to the University’s Receiving Department.  Receiving Department personnel complete final deliveries to campus addresses specified on Purchase Orders.

When Purchasing has placed the order with a vendor, a copy of the Purchase Order (PO) will be sent to the requesting department.  The department should place the PO in an Open File for reference when the items are received and when the charge appears on the accounting reports.



Buyer’s may approve and sign for purchase orders less than $50,000.  Any amounts over the $50,000 limit must be signed or initialed by the Director of Purchasing.


All contracts including renewals entered into by the University in any capacity other than normal purchases which do not bind the University to repeated purchases or other obligations need to be signed by an officer of the University as only officers of the University are authorized to bind the University contractually. The officers of the University are the President, the Vice Presidents and other designated approved officers. These contracts include but are not limited to personnel, construction, performance, consulting, etc.


Emergency purchases can be made by contacting a Purchasing Representative and obtaining authorization.  Emergency purchases are classified as situations where life or safety is at risk and where purchases must be made to eliminate or reduce risk.



Capital Equipment- Includes all tangible, non-expendable, movable assets having a useful life of more than one year and a value of $2,500 or greater. Blue Fixed Asset Tag- Assets and equipment that satisfy capital equipment definition will be assigned a university property identification tag, entered into the University’s Asset System and depreciated.

Each unit of equipment is assigned to an Equipment Custodian who is usually the Department Head or Operations Manager at the location of the equipment. These custodians are responsible to ensure that the equipment is properly utilized and accounted for until proper disposal. They are assisted by the Financial Services personnel who take an annual physical inventory of capital equipment and selected operating equipment.


This policy ensures that all IT hardware and software purchased with University funds is compatible with the BYU-Hawaii technology environment and is cost effective.

The policy is effective for all printers, and for any purchase of a computer, device, equipment, or software that costs more than $300 and/or connects to the BYUH network. It is intended to ensure:

  • All hardware and software will operate effectively in the University technology infrastructure
  • The best pricing is received through consolidation of purchasing power.
  • There is proper review of licensing agreements for all software.
  • There are clear expectations for maintenance, licensing, and network connectivity.

Prospective purchasers are expected to work with the Office of Information Technology (OIT) prior to completing the Purchase Requisition (PR) or using Purchase Cards for selected hardware and software. Violations of the policy may include losing Purchasing Card privileges, not receiving support for equipment or software, or reimbursing university funds. The procedures outlined have been developed jointly by OIT, Purchasing, and the President’s Council.


Purchasing, Campus Distribution Center (CDC) and Information Technology (IT) Services are responsible for the disposal process and/or resale of furniture, fixtures, vehicles and technology equipment. All items purchased with university funds are university property. When university property becomes obsolete, out-dated, unneeded, or unwanted, it should be declared “surplus” and disposed of according to university surplus procedures.

Purchasing will coordinate the surplus of capital equipment with CDC and the sale of vehicles with the Facilities Management Motor Pool. Fixed Assets will coordinate the surplus of electronic capital equipment with IT Services. Equipment, both non-electronic and electronic, that is difficult to pick up and relocate will remain in the division or department until final disposition is determined. CDC and IT Services are responsible for the removal of the university blue fixed asset tag from capital equipment items before it is sold.

The university does not normally make donations to outside organizations. However, in special situations, an exception may be granted by the President’s Council. All surplus property must go through the Campus Distribution Center for control purposes.