Original Issuance Date: October 15, 2019
Last Revision Date: October 15, 2019
Effective Date: December 1, 2019
1. Policy Purpose
In any case of an unauthorized Procurement Contract, the purchaser may be liable for the cost of the contract, if a contract was not appropriately entered into. This policy creates a process to review the contract to determine if the unauthorized procurement contract should be approved to allow payment of a supplier.
2. Responsible UW System Officer
UW System Associate Vice President for Administrative Services
This policy applies to procurements that fall under the Board of Regents procurement authority. This policy does not apply to contracts for Architectural and Engineering (A/E) services or construction.
The Board of Regents (BOR) of the University of Wisconsin System is authorized by s. 36.11(1)(b), Wis. Stats., to purchase goods and services supporting the educational and research mission of the university. This authority is used to purchase goods and services not typically purchased by other state agencies nor found in statewide mandatory contracts. This authority is also used to purchase goods and services statutorily assigned to the university.
If a UW System employee, who has no BOR contract signature authority, enters into a procurement contract with a supplier either verbally or in writing on behalf of the university they have entered into an unauthorized contract. This policy provides a process to review and determine if the procurement contract should be approved and the supplier paid.
Unauthorized Procurement Contract: A contract entered into under Board of Regent Authority by an individual who is not authorized to sign contracts and/or did not follow the appropriate procurement process to enter into a contract.
6. Policy Statement
In any case of an unauthorized Procurement Contract, the purchaser may be liable for the cost of the contract, if a contract was not appropriately entered into. Entering into unauthorized contracts for purchase of goods or services, contrary to this policy, may result in disciplinary action, up to and including termination of employment. The following steps shall be followed before payment can be released to the supplier.
- Justification for the purchase
- A statement on how the contract was formed (e.g. verbally or signed)
- A statement of management action to prevent re-occurrence in the future.
- For contracts valued under $150,000 the Purchasing Director reviews and determines if the contract should be approved for payment.
- For contracts valued over $150,000 but under $500,000, the Vice Chancellor reviews and determines if the contract should be approved for payment. At UW-Madison and UW-Milwaukee this authority can be delegated to the Associate Vice Chancellor.
- For contracts valued over $500,000 the above documentation must be submitted to campus purchasing, the Vice Chancellor, and the UW System Office of Procurement, and will be submitted to the UW System Office of General Counsel for review.
- If the contract is valued over $1 million, the UW institution shall submit the above documentation to the UW System Office of Procurement who will work with the UW System Office of General Counsel to determine if the contract can be approved and what action should be taken in relation to BOR approval of contracts under Regent Policy Document 13-1, General Contract Approval, Signature Authority, and Reporting.
7. Related Documents
8. Policy History
First approved: October 15, 2019
9. Scheduled Review