Wayne State University

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2.3.3 Blanket Purchase Order

POLICY

The Blanket purchase order (PO class Z) is issued to a single vendor for a limited total dollar amount and specified length of time for supplies. This type of order is not used for equipment purchases.

Blanket Purchase Orders enable a Department to place multiple releases for supplies against a single PO number.

Blanket Orders cannot be issued in excess of $25,000 unless they have been formally bid by the Purchasing Department (See APPM 2.4).

Only one Banner index and account code may be charged against a specific Blanket Order.

Once the dollar limit of the blanket order is reached, no further releases can be made until an Amendment has been processed to increase the dollar amount.

If there is time remaining on a Blanket Order, a Change Order can be requested to increase the PO amount.  No releases should be placed against the Blanket Order until the Change Order has been approved by Purchasing.   Please note:  A blanket issued below $25,000 cannot be increased above $25,000 unless it has been competitively bid (See APPM 2.4).

It is the department's responsibility to ensure that the estimate used on the initial Blanket Order is a realistic amount that is expected to be used for the period indicated.

For grants and contracts, the period covered by the PO (including amendments) must not extend beyond the end date of the grant or contract.   For all other funds, the period covered by blanket POs (including amendments) must not extend beyond the university fiscal year-end. New Banner Purchase Requisitions are required for Blanket Orders to be established for the new fiscal year.

PROCEDURE

Responsibility

Action

Department

  1. Estimate the total dollar amount required to purchase supplies from a particular vendor for the fiscal year or grant period.

    • NOTE: The estimate should be based on past volume history and/or projected activity for the period.
  2. Complete a Banner Requisition, according to APPM Section 2.2.2 to request a blanket PO.

  3. Once the blanket PO is approved in Banner, with specific start and end dates and dollar amount, the blanket PO is available for use by the requesting department.

  4. Call vendor to order specific supplies and state the PO number to be invoiced.

  • NOTE: An order cannot be placed against a blanket PO if the time has expired or the dollars have been expended. Follow procedures outlined in APPM Section 2.6.