This Instruction provides information on the formation and administration of blanket purchase orders, a form of contract which permits direct departmental ordering and receiving of frequently needed items without further regular Procurement involvement after Procurement has put the blanket order into effect. In case of administration problems, Procurement would work with the supplier and contract coordinator to resolve the matter. This Instruction applies to the Purchasing and Contracts group.
Procurement does the initial research and negotiation to set up the blanket.
Routine administrative responsibilities, including maintaining any records necessary for audit, rest with the department. When a Blanket is Appropriate A blanket purchase order is appropriate when a department repeatedly needs limited quantities of supplies generally of a low dollar value from the same supplier. Procurement considers the department's supplier recommendation, as well as price, inventory, terms, delivery and location. Establishing the Blanket Purchase Order See Exhibit A for a sample blanket purchase order. Period the blanket is to be in effect.