60.35 - Blanket Purchase Orders
Last updated: August 24, 2005
A. General. Blanket Purchase Orders (BPOs) are utilized by Purchasing Services in two specific situations:
A-1. High Volume Purchases. The department has a need to buy the same item or type of item(s) many times throughout the course of a given time period i.e., a semester or a fiscal year. The item(s) are routinely bought, usually in high volume. Examples are typically minor items such as office products, hardware items, laboratory supplies, and chemical products. The item(s) may belong to a family of items that share common market characteristics or are similar in nature, e.g., office products.
A-2. Multiple Purchases. The department has a need to buy the same item many times throughout the course of the same time period (fiscal year). E.G., Monthly copier charges.
B. Advantages of BPOs. By using BPOs, the University can gain the benefit of combining its purchases to get the best price, while minimizing the amount of paperwork. The department need only issue one requisition to cover the entire period, rather than issuing multiple requisitions throughout the year. Dollar amounts may be adjusted throughout the term as necessary using the Change Order form (FPACHAR).
C. Procedure. Purchasing Services can complete all of the necessary processing (competitive bidding if required, or contract negotiation) at one time, then establish a Purchase Order for the item(s) that will be valid for a fixed period. This is usually a time period or a dollar limitation.