7.7.5. BLANKET PURCHASE ORDERS
Blanket purchase orders at The University of Texas at Austin allow for recurring purchases of a specific service or commodity when the quantity or frequency of delivery cannot be fully determined at the time the purchase order is initiated.
The following guidelines apply to blanket purchase orders.
- They are school- or department-specific, and funds must be encumbered based on a reliable estimate of the amount to be purchased within the fiscal year.
- They cannot extend beyond the current fiscal year.
- All campus-wide, multiple-department, and/or multiple-year requirements must be placed on a contract. Note: Schools and departments may issue a blanket purchase order to proportionally encumber funds in a specific fiscal year for services and commodities that are on contracts spanning multiple fiscal years.
- Equipment leases and maintenance agreements should not be on blanket purchase orders because the quantity and frequency of delivery must be defined at the inception of those agreements.
- They are not intended for the purchase of items for which the university requires additional supporting documentation, such as an Official Occasion Expense Form (OOEF). Note: Blanket orders can be used to order coffee, water, and other drinks; however, the school/department is responsible for maintaining any required OOEFs related to such purchases.
- They are not for use with UT Market orders.
- They are paid on *DEFINE VP1 voucher documents.
- All blanket orders must contain verbiage specifying the contract period. For example: “Contract period is from date of order through August 31, 20XX. There shall be no price increases during this contract period.” Schools and departments must inform the supplier of intent to use a blanket purchase order when requesting a quote for goods/services and that the pricing will be held for the term of the blanket order.
- If appropriate, the blanket order may contain verbiage about estimated usage. For example: “This order is an estimate of usage/services only. No maximum or minimum quantity is guaranteed.”
C. Establishing a Blanket Purchase Order
The method used to establish a blanket purchase order depends on the total amount of the purchase order and whether any anticipated single release of a portion of the order will be greater than $15,000.
Part 7. Purchasing - Table of Contents