Procedure No.:   55.060

Page No.:        1 and 2 of 2

Date Issued:     10/01/77

Issued By:       G. Peebles

PURPOSE:

BLANKET PURCHASE ORDER PROCEDURE.

Blanket purchase orders may be issued for those departments having frequent, relatively small, and/or emergency needs from a designated vendor. Blanket orders may cover most any commodity from chemicals and printer's ink to soap and film processing services. Reasons for using blanket orders and the typical manner in which they assist in the purchasing function are:

1. Reduce paper work on small dollar value items bought repetitively .

2. Decentralize the actual act of ordering materials on a day-to-day basis while maintaining centralized control over the selection of vendors and the establishment of prices, terms, and other conditions.

3. Reduce the amount of routine information exchanged through the purchasing department after an order has been placed. Since terms, most prices and conditions are present, the physical checking of invoices, release forms and receiving information becomes an accounting function.

4. Release professional purchasing staff from the tasks of handling repetitive, routine transactions. By covering such transactions in the mechanics of the blanket order, purchasing agents and buyers can concentrate their efforts on more difficult non-routine acquisitions. Periodic review of release forms by the purchasing department will allow adequate controls.

Departments wishing to use the blanket order procedures must submit their requisitions to the purchasing department for review prior to any commitment or discussions with a vendor.

Time Period:

The blanket order may be written for a maximum period of 12 months - one fiscal year. The minimum period shall be one (1) month.

Expiration:

All blanket orders expire at the end of the fiscal year, June 30. New blanket orders will be issued on July 1, after appropriate requisitions have been submitted to the purchasing department.

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Limitations:

(a) NO equipment items may be purchased on a blanket order.

(b) NO single item of supply shall exceed $35.00 and a single release authorization form shall not exceed $75.00.

(c)Total expenditures on a blanket order must not exceed the monies encumbered. Additional funds may be encumbered as needed by submitting approved requisitions to the purchasing department. Memos are not acceptable when adding funds to a blanket order.

(d)Items which are stocked in General Stores may not be purchased on a blanket order.

The Purchasing Department reserves the right to limit the total dollar amount encumbered on any one blanket order.

Release Authorization Forms:

The Release Authorization Form (Stock #7.6280) must be completed by responsible departmental personnel on all transactions or orders placed against blanket orders. The release form is necessary regardless of whether the order is placed by phone, letter or in person.

The Release Authorization Form is a four (4) part form and is available from General Stores. It should be distributed as follows:

          (a) White          Vendor Copy
          (b) Yellow         Accounts Payable Copy
          (c) Blue           Departmental File Copy
          (d) Pink           Purchasing Department Copy

SPECIAL NOTE:There will be a periodic review of all Release Authorization Forms by the Purchasing Department to determine if the scope and intent of the blanket order procedure is being followed. Failure by departments to utilize and follow the blanket order procedure as it is intended, may be sufficient reason to withdraw the privilege of its continued use as a purchasing tool. Questions concerning this procedure may be directed to the Director of Materials Management & Purchases.

Dick Piccard revised this file (http://www.ohiou.edu/policy/s55-060.html) on January 6, 2004.

Please E-mail any comments or suggestions to "polproc@www.ohiou.edu".