10.04.01 Blanket Purchase Orders
CITY OF BOYNTON BEACH ADMINISTRATIVE POLICY MANUAL CHAPTER: 10 Purchasing POLICY NO: 10.04.01 SECTION: 04 Blanket Purchase Orders PAGE: Page 1 of 4 SUBJECT: 01 Blanket Purchase Orders
PURPOSE: To state the policy and to provide a procedure for Blanket Purchase Orders. POLICY: The City may issue Blanket Purchase Orders for a specific dollar amount and a length of time
not to extend beyond the fiscal year. They may be charged to a single budget account or various departmental accounts. Departments may use most Blanket Purchase Orders to expedite multiple
and repetitive small purchases containing no single item purchase in excess of $500 from a single vendor over a given term. Some Blanket Purchase Orders are issued to local vendors for
ease and convenience of picking up small purchases that are needed quickly. They are especially useful in cases where required quantities of a variety of items cannot be determined in
advance. Blanket Purchase Orders may not be used for the following purposes: • Capital outlay items; • Any item stocked in the City warehouse • Items requiring procurement through the
bid process • Any one-time purchase. PROCEDURE: This procedure addresses: • Requesting a Blanket Purchase Order, • Restricting use for Blanket Purchase Orders, • Providing notice to
issue Blanket Purchase Orders, • Requesting changes to Blanket Purchase Orders, • Processing invoices resulting from Blanket Purchase Orders, and • Closing Blanket Purchase Orders at
fiscal year end. Policy 10.04.01 -Blanket Purchase Orders Page 1 of 4
Requesting a Blanket Purchase Order Departments should request annual vendor Blanket Purchase Orders at the beginning of the fiscal year by completing the “Blanket Purchase Order Form”
and submitting it to Procurement Services with the following information: 1. Quotes from vendor(s) considered for use (Include the vendor # or the use of another contract or piggy-back
bid with copy attached). When using a contract or bid for a Blanket Purchase Order, include the following information on the Form: a. Origin of the bid b. Contract number c. Contract
period 2. Items planned for purchase 3. Purpose of the product or service 4. Anticipated annual expenditure per budget account(s); and 5. Signature of Department Head or designee. Prior
to the start of the new fiscal year Procurement Services will send out written notification of the due date for the annual vendor Blanket Purchase Orders. This listing of Blanket Purchase
Orders requested for the next fiscal year will be in August prior to starting the new fiscal year. Refrain from requesting Blanket Purchase Orders in anticipation that a vendor might
be used in the fiscal year. Wait until an actual need exists, then request the Blanket Purchase Order for the remainder of the year. If additional needs require a Blanket Purchase Order
during the course of the fiscal year, use the same process to request the Purchase Order. Procurement will then process a Blanket Purchase Order for the remainder of the fiscal year.
Restricting Use for Blanket Purchase Orders A Blanket Purchase Order will only be issued to a vendor from whom the department makes regular monthly purchases. As stated in the Policy,
Blanket Purchase Orders may not be used for the following purposes: 1. Capital outlay items; 2. Any item stocked in the City warehouse 3. Items requiring procurement through the bid
process 4. Any one-time purchase. Providing Notice to Issue Blanket Purchase Orders Once Procurement Services approves the requests for Blanket Purchase Orders, they will issue a Blanket
Purchase Order. If denied, the department will be notified. Policy 10.04.01 -Blanket Purchase Orders Page 2 of 4
If a request for a Blanket Purchase Order is being submitted which exceeds the bid threshold of $25,000, a bid reference number must support it. Requesting Changes to Blanket Purchase
Orders If a department requires a change order to the amount allocated for a Blanket Purchase Order, a written request, or e-mail message must be sent to Procurement Services. The request
to change the amount allocated for the Blanket Purchase Order should include the purchase order number, account number, dollar amount of increase or decrease, and justification for the
change. Procurement Services will make the necessary changes to the Blanket Purchase Order after a review of the request for change. The Blanket Purchase Order must be less than $25,000
without a bid reference. If Blanket Purchase Orders anticipated to exceed the $25,000 bid threshold, it is the department’s responsibility to provide a Request for Proposal or a Bid
reference to use on the Blanket Purchase Order. Procurement Services will automatically cancel any Blanket Purchase Order that reaches $25,000 during the fiscal year without a bid in
place. Processing Invoices Resulting From Blanket Purchase Orders Departments should regularly submit itemized invoices for Blanket Purchase Orders to Accounts Payable in Financial Services
identifying the • Purchase Order number and • The budget account to charge for the expenditure. The Department Head or designee must sign the invoice indicating the items were received
and accepted. Departments must submit invoices to Accounts Payable within five (5) days of receipt. Closing Blanket Purchase Orders at Fiscal Year End All Blanket Purchase Orders will
automatically be canceled as the fiscal year is closed. It is up to the departments to assure that all invoices have been submitted to the Financial Services Department for payment to
occur prior to officially closing the fiscal year (generally by October 15). Invoices not submitted in a timely manner will be paid against the department's subsequent year budget allocation.
It It is up to the Department Head to request new Blanket Purchase Orders for the new fiscal year. Remember, although the Blanket Purchase Orders are made available to assist the departments
in the procurement of goods and services. They are not intended to Policy 10.04.01 -Blanket Purchase Orders Page 3 of 4
Policy 10.04.01 -Blanket Purchase Orders Page 4 of 4 circumvent normal purchasing procedures to assure the City is receiving a favorable competitive price. Procurement will closely monitor
a department's use of the Blanket Purchase Order process to assure compliance with the Purchasing Policy, and may cancel the department's Blanket Purchase Order privilege if purchases
are not within the guidelines listed above. DEVELOPED BY: Procurement Services EFFECTIVE DATE: February 1, 1998 REVISION DATE: August 20, 2008 _____________________ Kurt Bressner City
Manager