> ## Documentation Index
> Fetch the complete documentation index at: https://docs.blevinsholdings.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Procurement Policy

> Rules for purchasing goods and services, vendor selection, and approval thresholds at Blevins Holdings.

<Info>Last reviewed: \[Date] — Next review due: \[Date] — Policy owner: Finance / Operations</Info>

## Purpose

This policy establishes standards and controls for all purchasing activity at Blevins Holdings. It ensures that company funds are spent appropriately, that purchasing decisions are subject to proper oversight, and that vendor relationships are established transparently and consistently.

## Scope

This policy applies to all purchases of goods and services made on behalf of Blevins Holdings, regardless of payment method (corporate card, invoice, employee reimbursement, or direct payment). All employees who initiate or approve purchases must comply with this policy.

***

## Approval thresholds

All purchases require prior approval from an authorized approver. The required level of approval depends on the total contract or purchase value:

| Purchase value   | Required approver |
| ---------------- | ----------------- |
| Under \$1,000    | Direct manager    |
| $1,000 – $5,000  | Department head   |
| $5,000 – $25,000 | CFO or COO        |
| Over \$25,000    | CEO + CFO         |

**Notes:**

* Annual recurring contracts are evaluated based on total annual value, not per-payment amount
* Multi-year contracts are evaluated based on total contract value
* Approval must be obtained **before** any commitment is made to a vendor

***

## Vendor selection

Purchases over **\$5,000** require at least two competitive quotes unless a sole-source justification is documented and approved by the CFO. When selecting a vendor, evaluate:

* Total cost of ownership (including implementation, support, and exit costs)
* Vendor financial stability and track record
* Security and data handling practices — especially for software vendors with access to company or client data
* Contract terms, SLAs, and exit provisions
* Conflicts of interest — see below

<Warning>
  Employees with a personal relationship or financial interest in a vendor must disclose this to their manager and HR before participating in any evaluation or decision involving that vendor.
</Warning>

***

## Purchase process

<Steps>
  <Step title="Identify the need">
    Define what you need, why, and the estimated cost. Before initiating a new purchase, check whether:

    * An existing vendor contract already covers this need
    * Another team has a preferred vendor relationship that can be leveraged
    * The purchase fits within your approved budget for the period
  </Step>

  <Step title="Get quotes">
    Obtain competitive quotes as required by the approval threshold guidelines above. Document the quotes and your rationale for vendor selection (especially if not choosing the lowest bidder) in your purchase request.
  </Step>

  <Step title="Submit a purchase request">
    Submit a purchase request through \[procurement system — link to be added]. The request must include:

    * Vendor name and description of goods or services
    * Total cost and payment terms
    * Business justification
    * Attached quotes or proposals
    * Budget code and department head confirmation that budget is available
  </Step>

  <Step title="Obtain approvals">
    Route the request to the required approvers per the thresholds above. Approvers have 3 business days to respond. Escalate to Finance if you need a faster turnaround for a time-sensitive purchase.
  </Step>

  <Step title="Legal review">
    Any contract, subscription agreement, or formal commitment with a vendor must be reviewed and executed by Legal before it is signed. Do not sign any vendor agreement — including click-through agreements for software — without Legal review for contracts over \$\[X] or that involve data processing.

    <Warning>
      Do not sign contracts, NDAs, or vendor agreements on behalf of Blevins Holdings without Legal review and approval. Personal liability may attach to unauthorized commitments.
    </Warning>
  </Step>

  <Step title="Process payment">
    Once all approvals and Legal sign-off are in place, Finance processes the payment or issues a purchase order. All vendor invoices must reference the approved purchase request number and be submitted to Finance at \[AP email — to be added].
  </Step>
</Steps>

***

## Prohibited practices

The following are violations of this policy and may result in disciplinary action:

* **Purchase splitting** — Breaking a purchase into smaller amounts to avoid approval thresholds
* **Unauthorized commitments** — Committing the company to a contract or purchase before obtaining required approvals
* **Undisclosed conflicts of interest** — Selecting a vendor with a personal relationship or financial interest without disclosing it
* **Gift acceptance** — Accepting gifts, meals, or incentives from vendors that could influence purchasing decisions beyond Blevins' standard gift policy
* **Unauthorized contract execution** — Signing contracts or agreements without Legal review and approval

***

## Vendor management

All approved vendors are entered into the Vendor Register, maintained by Operations/Finance. For the full vendor lifecycle process — including risk assessment, due diligence, ongoing management, and offboarding — see the [Vendor Management SOP](/sops/vendor-management).

***

## Exceptions

Exceptions to this policy require written approval from the CFO and must be documented in the purchase file. Exceptions are reviewed annually as part of Finance's audit process.

***

*Policy owner: Finance / Operations*