106: Blanket Purchase Orders
Blanket Purchase Orders are documents issued to a
vendor for purchase of certain classes or categories of items.
The Purchase Order may spell
out terms, conditions, delivery information and other contract
information, including pricing or discounts from published
lists for a specific period of time. A "Not to Exceed" amount
is listed on the Blanket Purchase Order document as a method
of monitoring and control. Additional controls relative to
maximum one-time purchases or single item costs may also
be included.
Blanket Orders are used to serve the needs of the requisitioner
and to reduce paperwork on items bought repetitively. They
may be used for commodity type purchases, such as maintenance
supplies, food, utilities or for services such as miscellaneous
repairs. If the number of items, such as repair parts or foodstuffs,
are too lengthy to list, a group or class of commodities can
be named on the Blanket Order. Blanket Orders are not to be
used to purchase capital items.
The blanket order is only valid for the specified period of time as indicated on the order and for amount it is funded. Once the effective period has passed or the funding has been depleted the order is no longer valid. To preclude any issues with people overspending the blanket orders, strict attention to the expiration date and the declining balance of funds should be closely monitored. As always, as the remaining balance drops and the requirement still exists for the Blanket PO, funds can be added. However, overspending a Blanket Purchase order is subject to the same process as any other unauthorized purchase.
The amount of competition needed on an Blanket
Order varies according to commodity, service and/or delivery
as well as location of the supplier to the requisitioner. A
decision as to the level of competition needed shall be made
by the buyer in consultation with the Purchasing Manager.
Original 5/22/95
Revised 9/20/04
2nd Revision 2/19/08
