Contracts Over $10,000
University Purchasing is primarily responsible for reviewing and negotiating contract documents, and assisting departments with contract administration issues and disputes, related to purchases over $10,000. The $10,000 threshold acts as a fundamental dividing line for procurement and contract management at VCU.
For more information or to initiate the process, please see:
- Start the Contract Process
- How to Make a Purchase
- Contract Administration Guidelines
- Delegation of Authority Policy
At Virginia Commonwealth University (VCU), contracts valued over $10,000 are handled centrally via RealSource. They must be submitted as requisitions to Procurement Services, assigned to a buyer, and undergo a formal, competitive procurement and negotiation process.
In contrast, purchases $10,000 or under rely on delegated authority. For these smaller transactions, departments have the autonomy to bypass formal competitive bidding and simply pay with a Purchasing Card (P-Card) or direct Purchase Order.
Key distinctions
The key distinctions that make contracts over $10,000 unique compared to those under that amount include:
Delegated authority limits
Departments are granted delegated purchasing authority to make purchases up to $10,000 without involving University Purchasing. Any total contract value (TCV) exceeding this amount strips the department of this autonomy and forces the request through central Procurement Services.
Competition requirements
Contracts over $10,000 require mandatory competition and must follow Virginia's Restructured Higher Education Financial and Administrative Operations Act, which dictates specific solicitation and bidding requirements. Under $10,000, no competition is officially required.
Centralized negotiation & legal review
For agreements over $10,000, University Purchasing handles all negotiations, terms, and contract administration. For contracts $10,000 or under, vendors typically accept a standard Purchase Order; only if the vendor specifically requires a signature will the documents be routed to the central Contracts Team.
Total contract value (TCV) rule
Contracts over $10,000 evaluate not just the initial cost, but the Total Contract Value — which factors in all potential renewals and total potential spend over the life of the agreement. Even a 1-year contract with renewals that push the cumulative total over $10,000 triggers the centralized, competitive process.
Contracts over $10,000, which exceed user department’s delegated purchasing authority, require the participation and approval of University Purchasing. User departments should engage University Purchasing early-on by submitting a Purchase Request with all relevant contract documents attached.
Purchase Requests over $10,000 are automatically routed, whether a contract is involved or not, to University Purchasing for review and approval. Once the Purchase Request has been submitted by the user department, it will automatically route to the appropriate Buyer or Category Manager, who will assist the user department to select the appropriate procurement method and develop, review, negotiate and execute any resulting contracts, where applicable.
University Purchasing may further coordinate with other Procurement Services personnel, such as Accounts Payable or the Contracts Team, if necessary.
University policy dictates that purchase contracts may only be executed by the Director of Procurement Services, or their management/designees. See Delegation of Signatory Authority. Noncompliance with this policy may result in disciplinary action up to and including termination of employment. University Purchasing or the Contracts Team coordinate the execution of all contracts, including vendor signatures.
The user department (Contract Stakeholders) will receive a notification from RealSource once the contract or contract amendment has been added by Procurement Services to the Contracts+ repository. All university employees who have established a RealSource account can access any contract in the Contracts+ repository at any time. For more information about Contracts+ view: RealSource User Help-Guide
For more information
For contracts over $10,000, send general inquiries to purchasing@vcu.edu. Direct specific questions about contract reviews, signatures, renewals, changes, or vendor issues to your assigned Category Manager.
For technical questions about Contracts or RealSource, please submit a Cherwell service ticket.