Policies & Procedures Manual - Elizabeth City State University

400.1.11Adopted: 06/14/05Amended: 03/08/11Page 1 of 2ELIZABETH CITY STATE UNIVERSITYBlanket or Standing Purchase OrdersPreambleElizabeth City State University recognizes and accepts the purpose of a blanket or standing orderis to eliminate multiple orders. Blanket orders can also help save time and speed up thepurchasing process. This is recognized with quick turn around time for products or service.1.DefinitionA “blanket order” is a purchase order that has been issued to a vendor, against whichpurchases may be made. When repeated purchases of the same type of supply item areexpected, multiple purchase requisitions may be eliminated by submitting one purchaserequest to establish a standing order. The purchase order can be used until the remainingfunds on the order are exhausted. A new purchase order can be issued once the order reachesa zero balance.2. Supplies OnlyStanding orders are issued for supply type items only. Purchasing of equipment must berequested on a purchase requisition as the need arises.3.4.ApprovalRequests for standing orders are approved by the Director of Purchasing. The request can bemade on a purchase requisition.CompetitionAll standing orders are subject to the rules of competitive procurement. “Non - Competitive”standing order must be accompanied by conclusive documentation detailing the rational forusing a single source. (Please see ECSU “Sole Source or Brand Specific Purchases” Policy)Estimated cost prior to the issuance of the purchase order results in each requestingdepartment’s budget being encumbered in the amount of that cost as indicated on thepurchase requisition. If a standing order is cancelled, the outstanding balance on the orderwill be liquidated, thus making the funds available for other purchases.5.EncumbrancesOutstanding encumbrances on standing orders written against state appropriated funds revertsto the state account at the end of the fiscal year; therefore only sufficient funds to cover theanticipate purchases should be requested on the purchase requisition.6. DescriptionA blanket order requisition should contain the following: Vendor name and address, type ofcommodity, requesting departments’ name, the estimate dollar amount and the appropriatesignatures.