John,

Without knowing the full purchasing program, any answer is a shot in the
dark.  I have reviewed a few other responses and agree in principle that
the $500 limit seems to be excessive.  However in any purchasing system,
if one person submits multiple request for different items but list the
same supply source, the items should be combined one purchase order.
Otherwise it would appear that the requisitioner was splitting the
requisition request to avoid the $500 purchasing limit.

Competition is vital to ensure the best value to the customer and the
supporting grant.  We still operate under the regulations that require
some minority and small business set-asides in purchases using federal
funds.  The only way to meet the set-aside requirement is to compete
purchases and actively seek small and disadvantaged business concerns.

Many P.I.'s do not care about the rules & regulations, they only want
the materials yesterday.  That is why we have purchasing department and
grant administrators, we must ensure compliance with rules &
regulations.  This doesn't mean that the rules & regulations shouldn't
be periodically reviewed and changed to meet up-to-date business
practices.

The problem with competing purchases is time not results.  Purchasing
departments need to meet the needs of their customers but the customers
need to understand the system.  Grant administrators are the referee in
this process, we need to work with both sides to achieve satisfied
customers and compliance with program regulations.

Now you know why we get the big bucks, we make everyone happy.

Sincerely,

Chuck Willis
Grant & Contract Administrator
ODU Research Foundation
Phone: (757) 683-4293 Ext. 613
Fax: (757) 683-5290
E-mail: xxxxxx@pobox.hprf.odu.edu