Standing Purchase Orders

Section 4:5 Revised 02/14/2007

(BLANKET ORDERS)

A Standing Purchase Order is a Purchase Order which has been issued to a vendor, against which specified purchases may be made directly by the department for a specified period of time. When repeated purchases of the same type of commodity item or services are anticipated, multiple purchase requisitions or small purchase authorizations may be eliminated by entering one purchase requisition to establish a Standing Purchase Order. Similar to a regular Purchase Order, a standing order must be requested for a specific amount of departmental funds. The funds are encumbered upon the establishment and issuance of the Standing Purchase Order.  Outstanding encumbrances on Standing Orders written against State Funds revert to the State at the end of the fiscal year, so request only sufficient funds to cover your anticipated purchases.

Materials cannot be shipped against a Standing Order beyond the period indicated. Nor can materials be shipped in excess of the dollar amount, without authorization from the Purchasing Department. Materials are to be invoiced when delivered.

Establishing a Standing Order requires the submission of a single completed purchase requisition (entered into Banner) to the Purchasing Department.  If the order will exceed $5,000.00 in annual expenditures competitive bidding is required unless a sole source justification is approved . If Grant or Contract Funds are to be used, the Standing Order must have a firm experation date.

Standing Purchase Orders are issued for supply type items and services. Service related Standing Purchase Orders, such as cell phones, pagers, and other maintenance related item must be renewed on a fiscal year basis. To maintain continuity, service requisitions should be entered prior to the expiration of the contract.

To make any changes on a standing order, including increasing the amount or terminating a standing order you will need to contact the Purchasing Department. The outstanding balance will then be liquidated, freeing the funds for other purposes.