A "blanket" purchase order is issued to a vendor for a definite amount, to be used for specific purchases during the period specified.
The following is an example of a proper application of a blanket purchase order:
A department has determined that it places 7 to 15 orders per month with a particular vendor. These purchases are for small dollar amounts not over $50 each. Rather than issuing 100 purchase orders a year to this company , one blanket purchase order can be issued for the entire year.
A blanket order is used when multiple purchases are made of the same item or when items/quantities are undetermined until usage is established. If a blanket order is issued to a state contract vendor for contract items, all state contract prices and terms would still apply.
NOTE: A blanket purchase order is usually issued to local vendors who can deliver straight to the requesting department or when pick-up of merchandise is desirable.
The Procurement Department will determine if the use of a blanket order is justified according to the request made and what limitations may apply.
A telephone quotation may be solicited in order to determine pricing, etc. for items to be purchased in this manner and would remain in effect for the term of the purchase order, as specified. A listing of authorized personnel who may pick up supplies is shown on the purchase order. Bidding may also establish general pricing, terms, and commodities to be used.