The $5,000 threshold is based on total acquisition cost, including shipping, handling, and tax.
Before You Purchase
Before purchasing capitalized equipment with a total acquisition cost of $5,000 or more, please have the following information ready:
- A Current Quote
- Funding Source information to include:
- Driver Worktag such as a stand alone grant or a grant. If one is not available, provide:
- Cost Center Worktag
- Resource Worktag, and
- Additional worktags as required: Program, Assignee, and Activity
- Driver Worktag such as a stand alone grant or a grant. If one is not available, provide:
- If the total purchase is over the Direct Buy Limit ($10,000 including shipping and handling, excluding tax), and the item is not being purchased from an existing UW contract, not specifically named in the award, and not already under a Procurement Services-managed solicitation, the purchase may require a sole source justification or a Procurement Services-managed solicitation
Multi-Component Assets
Multicomponent assets: are multiple parts or components purchased to create one functioning piece of equipment. Each piece of equipment cannot be used on its own. These components are combined to form a single, capitalizable asset rather than individual items
If the equipment is a multi-component asset, please contact the ePAS team for an intake meeting so the full scope is understood and documented. This will help ensure that qualifying equipment is handled appropriately for inventory tracking and related M&E review
Machinery & Equipment (M&E) Sales Tax Exemption
Some research purchases may qualify for the M&E sales tax exemption. This exemption is separate from the $5,000 capitalization threshold and may apply to items with:
- Acquisition cost of $200 or more
- When the equipment has a useful life of more than one year and
- Is used more than 50% annually on qualifying research.
- Note: Additional costs for existing pieces of M&E qualifying equipment can also qualify for the exemption, even if they are under $200.
- Note: Repairs can be exempt if an official PO is issued in advance with the M&E certificate.
To support the exemption, include an M&E statement describing:
- Fill out the M&E Certificate
- The type of research and the hoped-for development outcome, and attach a current Department of Revenue M&E certificate with the vendor name and current date completed and marked “External = Yes.” Avoid generic statements such as “for research only” or “for basic research.” M&E purchases require prior approval and should be processed through a Workday requisition. Ancillary costs, labor, repair and maintenance, and replacement parts may also qualify; warranties and consumable supplies do not.
Unauthorized Purchases
Do not place orders over the direct buy limit ($10K) without a UW purchase order or prior Procurement Services approval. UW guidance defines an unauthorized purchase as a department other than Procurement Services entering into a contract, making a purchase, or otherwise committing University funds for an amount over the direct buy limit, excluding tax, without Procurement’s prior approval. Unauthorized purchases may require additional review and documentation and may create personal liability for the individual responsible. A PO must be created and the Unauthorized Purchases form must be filled out and attached.
Questions?
Send a request for an initial consult to eFAST@uw.edu if your unit uses ePAS services; otherwise, consult your local unit fiscal support staff.