Purchasing Policies & Procedures

Purchasing Policy and Procedure Number PPP 10
Blanket Orders, External (Non-Contract) Dated: 11/01/2004

POLICY

A blanket purchase order is issued to establish an account with external vendors or with another State of Wisconsin agency or municipality for the multiple purchases of similar commodities not covered by a contract or waiver.

The preferred method of addressing these purchases, where orders are less than $5,000, is to use the Purchasing Card.

A blanket order is issued for the purchase of either supplies or services (including unanticipated equipment repairs) as defined by the selected account code. No single transaction or release applied against a blanket order may exceed $5,000.00. Items ordered that are NOT included in the general description of the blanket order may be considered an illegal purchase (see PPP #5, Illegal Purchases). Purchasing will review blanket order transactions to determine if illegal purchases were made. Inappropriate use of blanket/ orders may result in discontinuation of blanket/open vendor blanket order privileges.

PROCEDURE

Departments request a blanket order by entering a purchase order into PeopleSoft.

1. Determine the beginning and ending dates of the blanket order and estimate the encumbrance dollar amount to cover anticipated expenditures during the term of the blanket order. (Adjustments can be made to the encumbrance by sending an email to Purchasing requesting revision.)

2. The blanket order may be issued for a maximum of 12 months. Departments should not place an order against the purchase order prior to the beginning date or after the expiration date. Blanket order expiration dates from General Program Revenue (GPR) funded by 101 through 119 or 150 funds, must expire at the end of the state fiscal year, June 30. Any other funding source may overlap state fiscal years but may not exceed 12 months or the ending date of the funding source. Conforming to the fiscal year expiration dates is preferred on blanket orders using federal grant money.

3. Departments may begin to purchase using the blanket order AFTER receiving the department copy of the purchase order. Provide the vendor with the complete 10-digit blanket order number, verify the ship-to address and provide a contact name and phone number. The department should remind the vendor that the invoice should reference the blanket order number, and must be sent to ACCOUNTS PAYABLE, Controllers Office, 2420 Nicolet Dr., Green Bay 54311.

4. Inform the vendor that any item(s) back ordered must be invoiced against the blanket order number referenced on the original release order.

5. If a change or cancellation on an existing blanket order is required, see PPP #11, Change or Cancellation Orders for the correct procedures. When returning or exchanging an item(s), refer to PPP #13, Return Materials Authorization. Departments can monitor the encumbrance balance of a blanket order by logging into the Wisconsin Data Mart for PeopleSoft Financials (WISDM) website at http://www.uwgb.edu/controller/wisdm/index.htm Departments must follow internal procedures to increase or decrease an encumbrance.

Questions on invoice approval, billing errors or other disputed invoices can be directed to Accounts Payable at x 2206. For questions regarding external blanket orders, contact Purchasing at x2598.

Print Friendly Version of this Policy