A Blanket Order (also known as a Standing Order) is a term contract or basic agreement between the University and a supplier. It is issued to a specific supplier to address recurring low dollar purchases of consumable supplies or services, for a specific period of time. A Blanket Order is issued to support an existing contract, or independently, after all terms and conditions have been negotiated.
GUIDELINES FOR ALL BLANKET ORDERS
A Blanket Order should be used when the ordering department/cost center will:
Purchase repetitive, specified services or items, or categories of items from the same supplier; which are purchased and paid in a predictable manner during a certain time period, usually one (1) year
Order standard materials or maintenance supplies which require numerous shipments
Enable the buyer to obtain more favorable pricing through volume commitments
Blanket Orders generally should not be used when:
The primary purpose is, to provide an open line of credit with a supplier
Prices are unknown at ordering time, or subject to change later without notice
Quality of the supplier and/or services are questionable control over the University expenditures would be weakened significantly
3. A Blanket Purchase Order format shall include the following information:
The period to be covered by the blanket agreement (generally should not exceed one year)
A cancellation clause
The previous Blanket Order number, if this is a replacement Blanket Order
Items and/or categories of items to be covered by the Blanket Order (when available)
Maximum quantities, if any
Prices and pricing arrangements
Terms and billing arrangements
For regulated or controlled substances, the licensed investigator is responsible for providing a DEA license number and /or forms to the supplier. (If applicable)
4. Blanket Orders $10,000 and Above
All University business rules apply to Blanket Orders.
A Justification Form and supporting documentation is required for Blanket Orders $10,000 and above, and those expected to reach $10,000 or more in expenditure during the fiscal year.
Purchasing will provide assistance in negotiating price agreements and/or obtaining bids from different suppliers.
5. Pricing: Price, quantity, and F.O.B. terms, should be negotiated prior to the blanket order being issued.
6. Change or increase to order: If a change needs to be made to a Blanket Order, please complete a requisition form to include description and the amount increase with appropriate signatures, and send it to the Purchasing Department to be processed.
7. Annual Review: It is recommended that prior to requesting a new Blanket Order [April-May]; the ordering department should review the existing Blanket Order for any changes.