See SPI 4.07 for a sample purchase contract. A letter of intent is similar to an award letter, but is less specific. The letter contains only the general outlines of the work, and leaves significant technical specifications unresolved. As soon as possible after sending the letter, Procurement clarifies in writing all commercial and technical specifications. The letter of intent is used only when the need is urgent, such as when Procurement wants the supplier to commit quickly to fulfilling the order.
Exhibit A is a sample letter of intent.
As soon as the proper authorizations and paperwork are completed, a contract will be issued between Stanford University and your firm on a fixed price basis, with an agreed upon time schedule. Should this contract not be consummated for any reason, Stanford University will pay only the amount of material and time expended by your firm up to the date of notification to cease work. We look forward to working with your firm on this project. Please notify me at your convenience if you have any questions regarding the above.