Dated: 5/17/07
Replaces: 4/23/07
Internal Policy and Procedures
Blanket Type Orders
POLICY:
There are two types of blanket orders, each having its unique purpose. Blanket-type Orders are issued for a term not to exceed 12 months. In most cases capital equipment cannot be purchased on them, exceptions being: class code 49xx (library material) and Blanket and Contract Blanket Orders specifically set up and class coded for equipment purchases referencing a specific UW-Madison Inventory number.
Following are descriptions of the Blanket Order types. Highlighted words and phrases describe each ones uniqueness.
- Blanket Order (non-contract) - issued to one external vendor for repetitive purchases of similar types of supplies or services not covered by a contract or waiver. No single transaction (invoice) may exceed $5,000.00. Copies are printed for the department, Accounting and the original is sent to the vendor.
- Contract Blanket Order - issued to one external vendor for the purchase of specified commodity or service based on a competitive bid, or for items determined to be exempt from competition by the authority of a campus or Governor’s waiver. Single transaction or invoice limits are dictated by the bid or waiver referenced. Copies are printed for the department, Accounting and the original is sent to the vendor.
PROCEDURES:
1.All requisitions for blanket-type orders are reviewed by the assigned agent for the following:
1.1 time period - Show beginning and ending date for order
1.2 commodity description - Commodity or service must be described: (not “supplies”, but office supplies; not repair but laboratory equipment repair)
1.3 commodity code - Enter appropriate code
1.4 dollar amount - Will not show on vendor’s copy of the purchase order.
*Blanket orders for specific dollar commitments (fixed blanket) within the following class codes may be submitted for the full dollar amount of the commitment.
Class codes:
3011-3038 (services)
3171-3192 (rentals and leases)
3211, 3212 (maintenance contracts)
3340, 3341 (software)
Blanket orders without a specific fixed commitment or one that does not use any of the legacy class codes referenced above (variable blanket) will be encumbered for only $1.00.
1.5 FOB - Enter appropriate FOB point (refer to the shipping matrix or default to Shipping Point.
1.6 payment terms (default to Net 30)
1.7 Order type - enter appropriate type
1.8 Contract/bulletin/waiver number (procurement authorization)
- Contract numbers are referenced in the “bid no.” section (6 digit number -1st 2 = FY; last 4 = 5000 series numbers, e.g. 08-5700).
- State contract numbers are referenced in the “bulletin no.” section (9 or 10 digit numbers e.g. 15-53390-60)
- Governor/System waivers are referenced in the “waiver ” section (6 digit number Governors waiver first 2 =FY or SW, last 4 =6000 or 7000 series, e.g. 08-6524; System waivers first 2 = JL, last 4 =0100 series #’s, e.g. JL-0106), Blanket Order waiver first 2 =FY, last 4=9900
2. Order text messages, to be used in the body of blanket-type order purchase orders, have been developed to save time and key strokes. Examples for each of the blanket-type orders follow. Additional instructions or restrictions, such as customer account number, shipping instructions, etc., should be added to the order text messages if necessary.
Blanket Order (non-contract) [FY 9900]
BLK: Blanket Order for (enter commodity or service description)
VENDOR NOTE The ship to department will call for product or service as needed.
NO SINGLE TRANSACTION OR RELEASE MAY EXCEED $5000.00.
No Capital Equipment or compressed air cylinders may be purchased on this order.
BL2: Blanket Order for miscellaneous lab supplies.
VENDOR NOTE The ship to department will call for product
or service as needed.
NO SINGLE TRANSACTION OR RELEASE MAY EXCEED $5000.00.
No Capital Equipment or compressed air cylinders may be purchased on this order.
Contract Blanket Order
CON: Contract Order for (entry person must type in commodity or
service description)
VENDOR NOTE The ship to department will call for product
or service as needed.
No Capital Equipment or compressed air cylinders may be
purchased on this order.
Note: The last sentence “No Capital equipment or compressed air etc.” is deleted. Contract Blanket Order is specifically set up and class coded for the purchase of equipment using a specific contract or waiver.
NOTE: General Program Revenue (GPR) or 150 funds
Funds 101 through 119, 170 series and 402-406 expire June 30. Funds expiring June 30 with blanket orders from these funds cannot be written with an end date beyond June 30 of the fiscal year.
Other funding sources may overlap state fiscal years but may not exceed 12 months or the ending date of the funding source.
REFERENCES:
IPP 20 PO Ready Requisition Processing
PRO-E-9 Non-Contract Blanket Orders
PRO-E-16 Contract Blanket Orders
PPP #8 Blanket Orders, external (non-contract)
PPP #9 Contract Orders (blanket type)
PPP #21 Continuing Order Requisition (COR)
PPP #26 UW Madison Purchasing Card Program