A purchase order is a document that states the terms and conditions
of a proposed transaction and creates a contractual relationship between
a vendor and the City. It describes the quantity and quality of the
required goods and includes other information, such as shipping terms,
delivery dates and location, and prices quoted in the solicitation
response. The purchase order shall encumber the applicable appropriations
account.
(Res. 04-12 (§ 5.1), 1-16-12)
Purchase orders are required for all invoiced purchases of commodities,
materials or supplies and services with an expected expenditure of
City funds of $5,000 or more unless previously approved by the Purchasing
Manager.
(Res. 04-12 (§ 5.2), 1-16-12)
Purchasing Division personnel shall complete all purchase orders
in the City’s financial system and send a copy to the vendor,
the requestor and the paying division.
(Res. 04-12 (§ 5.3), 1-16-12)
Whenever a change of any kind on a purchase order is required,
the originating department shall forward a purchase order change request
memorandum that provides the information to be changed and a justification
for doing so. Requests shall be directed to Purchasing via phone,
e-mail or inter-office mail. Note: Only Purchasing is authorized to
change and/or cancel the original purchase order. Purchase orders
with activity, i.e., partial delivery or payment, cannot be canceled.
(Res. 04-12 (§ 5.4), 1-16-12)
Purchase orders must be approved for payment in accordance with final approval authority requirements set forth in Chapter
41.08 GJMC.
(Res. 04-12 (§ 5.5), 1-16-12)
When the material or service is delivered to the department,
the authorized agent of the department, as assigned by the Department
Director, shall inventory and inspect the delivery to ensure the material(s)
and/or service(s) are as listed on the shipping document and are in
acceptable condition.
If all materials are received in acceptable condition, the receiving
department/division shall submit the invoice for approval to their
authorized department/division personnel who then process the invoice
for payment.
If materials and/or services received are damaged or defective,
they should not be used. If possible, notation should be made upon
the receipt in the presence of the delivery agent. Departments shall
notify Purchasing immediately when damaged or defective commodities
are received.
(Res. 04-12 (§ 5.6), 1-16-12)
Annual purchasing agreements, also known as blanket orders and
term contracts, are agreements established with suppliers to allow
individual purchases by the City throughout the year without going
through the purchasing competitive process each time a purchase is
made. At the same time, blanket orders take advantage of volume discounting
based on the annual estimated quantities purchased by the City.
Blanket orders do not commit the City to purchase any merchandise
or service from the vendor. They are issued to advise the vendor of
the merchandise and/or service the City may require, establish terms
and pricing where applicable, establish dollar limits, either per
release or per month, establish personnel authorized to make releases
against these orders and outline the ordering, receiving and invoicing
procedure. Any merchandise and/or service properly released and shipped
against a blanket order is covered by the terms and conditions of
the blanket order.
Only the Purchasing Division shall issue blanket purchase orders.
Prices shall be established as part of each blanket order, in accordance
with the policies in this manual.
Requests for the issuance of blanket orders by the Purchasing
Division shall be made by departments having needs that are applicable
to blanket orders. It is the responsibility of each department to
determine the approximate quantity needed and estimated amount that
shall be spent during the fiscal year for a particular product category
or products.
It must be clearly understood by all individuals authorized
to make releases against blanket orders that there shall be strict
adherence to the provisions established in the blanket order, with
no exceptions.
It is the Purchasing Division’s responsibility to make
the vendor fully aware of the procedures of the blanket order and
that the vendor complies with the procedures. It is also the Purchasing
Division’s responsibility to provide adequate information and
instructions to the departments and individuals involved in the use
of the blanket order.
(Res. 04-12 (§ 5.7), 1-16-12)