What is a Blanket Order?
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First Published :Tue Sep 16 16:56:19 GMT 2014
Last Modified :Thu Mar 24 14:13:10 GMT 2022
Last Published :Thu Mar 24 14:13:10 GMT 2022
Summary :
Describes a blanket order/requisition/purchase order
Response
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
- 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 and control over the University expenditures would be weakened significantly
- When creating a requisition to produce a Blanket Purchase Order, be mindful to include the following information:
- The period to be covered by the blanket agreement/start & end date (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)
- If the blanket order is going to exceed $10,000, you will be asked to complete a supplier justification panel which requires three written quotes unless the supplier is a sole source.
F.O.B. terms should be negotiated by Purchasing prior to the blanket order being issued.
Annual Review: It is recommended that prior to requesting a new Blanket Order, the ordering department should review the existing Blanket Order for any changes they may need in the next time period. |
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