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  :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
    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.  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.

     

Related Information

    Read about Blanket Orders in the Purchasing Manual on AccessTufts

Information

Keywords

    standing order