TSS - What is a Blanket Order?

What is a Blanket Order?

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First Published  :Tue Sep 16 16:56:19 GMT 2014
Last Modified  :Fri Jul 19 15:35:56 GMT 2019
Last Published  :Fri Jul 19 15:35:56 GMT 2019
Summary :  Describes a blanket order/requisition/purchase order


Primary Information

    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
    1. 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
    2. 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 and 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)
    • 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.
    • 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. 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.

Related Information



    standing order