The blanket purchase order authorizes the agency to buy goods or services with predetermined terms or conditions. This saves time for both requisitioners and buyers, since they do not have to seek bids before every purchase.
The limits that can be established on the blanket order header are as follows:
When the order is limited
by a date, the buyer can issue releases for goods or services up to the
When the order is limited
by a quantity, the buyer can issue releases until the pre-established quantity
for a specific item is reached.
When the order is limited by a dollar amount, the buyer can issue releases for goods or services until the pre-established dollar amount is reached.
Blanket Purchase Order Release
After a blanket order has been established, the agency issues a new release to the vendor each time goods are required, and funds are encumbered with each release. For a blanket order, each release corresponds to specific lines on the blanket purchase order, and the lines for each release are identified by a unique release number. A release can be thought of as a subset of a blanket PO.
Tip: An easy way to track releases is to make each release number correspond to the date the release is issued. Create the release number in YYMMDD format. For example, a release issued on January 22, 2001 would have 010122 as its release number.
Blanket Orders: CFF Implementation vs. EFF Implementation
With the Extended Financial Functions (EFF) implementation, blanket orders will be available for the first time. It is important to understand the difference between the "blanket order" process introduced in the Core Financial Functions (CFF) implementation and the true blanket order available with the full NCAS implementation.
Basically, a blanket order is a convenience contract, negotiated between buyer and vendor, that allows agency requisitioners to "buy" specified goods, such as tires and hardware, directly from the vendor at prenegotiated prices and terms.
Since the true blanket order was not made available during the CFF implementation, agencies were instructed to issue purchase orders for a quantity of one each at a unit price equal to the entire amount of the blanket transaction. The service order indicator on the PH1 screen was used to allow multiple invoices to be matched against the PO. The entire amount of the blanket was encumbered when the PO was created. Because the quantity was entered as one each, no commodity history was retained for the individual transactions, and the system was unable to audit invoice price against PO price.
With a true blanket order, the agency issues a new release to the vendor for each local transaction. Funds are not encumbered at the time the blanket is issued, but rather as each release is created. A true blanket order allows the agency to track commodities and quantities, and the system can audit the vendors invoice price against the PO price.
Creating a Blanket PO Header Step by Step
Adding Releases to a Blanket PO Using the Req-to-PO Process Step by Step