Board Rule 406 Guidelines/Thresholds and Contact Information

1. Technology acquisition threshold increased from $500K to $750K for porjects not already included in the annual technology plans.  The revised rule clarifies technology as inclusive of all aspects--Hardware, software and associated services.  (Board Rule 401)
2.  Purchase or lease of equipment threshold increased from $500K to $750K. (Board Rule 415)
3. Capital projects that involve construction, demolition or renovation of University facilities threshold increased from $750K to $1M. (Board Rule 415)
4. Previously, "high dollar" contracts (consulting and professional service contracts over $250K and contracts for goods/services over $1M no competitively sourced) were subject to the System Office Heightened Review process.  Now, those contracts must be approved by the Board of Trustees.  (Board Rule 406)
   • Board Rule 406 Section (V) (A) defines what contracts must be approved by the Board of Trustees
     • All consulting/professional service contracts involving $250K or more, for the term of the agreement, regardless of whether the contract results from a competitive process.
     • All contracts for goods and services involving an expenditure of $1M or more, for the term of the agreement, not procured through a competitive process.
   • Board Rule 406 (V) (B) defines what contracts are exempt from Board of Trustees approval
     • Contracts that are otherwise required to be submitted to and approved by the Board, such as construction and technology contracts.
     • Contracts that are otherwise required to be submitted to and approved by the UAB Health System Board.
     • Hospital contracts, which are specifically addressed by the Section (VI) of this Rule (Board Rule 406).
     • Contracts with publicly regulated utilities.
     • Sponsored Research Grants and Contracts, including associated subcontracts.

For more information, please contact:
Ron Colllins
Executive Director of Procurement
UAB Financial Affairs
801 Financial Services Building
801 5th Avenue South
Birmingham, AL 35233
205.934.4423
ronc@uab.edu