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 $5,000 and Above
- All University business rules apply to Blanket Orders.
- A Justification Form and supporting documentation is required for Blanket Orders $5,000 and above, and those expected to reach $5,000 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.