HomeMy WebLinkAbout031A - Amendment Purchasing Procedure j
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MEMORANDUM
TO : All Departments f March 31 , 1982
FROM : Lee Kraft , City Manager
SUBJECT : AMENDMENT TO ADMINISTRATIVE ORDER NO . 31j
PURCHASING PROCEDURE .
The purpose of this amendment is to clarify the use of blanket
purchase orders and to delete the requirement of using a Local
Purchase Order to make purchases under a Blanket Purchase Order .
REVISED LANGUAGE :
VIl . BLANKET DEPARTMENTAL PURCHASE ORDERS :
Blanket Purchase Orders are used for those few merchants /
vendors from whom many repetitive purchases of relatively
small amounts are made as supplies are required . Rather
• than issue a Purchase Order for each purchase , one Purchase
Order is issued for one month to cover all purchases
during that month at that place , and these Purchase
Orders shall be placed by the Purchasing Supervisor on
the advice of the department head . - Separate blanket
purchase orders will be issued for individual departments .
The Purchasing Supervisor shall follow this general
procedure with respect to Blanket Purchase Orders :
1 . Identifies the need to have a Blanket Purchase Order
through examination of past purchasing records and
by consulting with the department heads , and notifies
the department involved .
2 . Determines the qualified local suppliers , if there
is more than one accessible supplier .
3 . Places a one -month authorization with each of the
selected vendors by issuing an advance Purchase Order
to each of these vendors . In the description section
of the P0 , writes as follows :
" This is a term Purchase Order for one month
beginning , 19 , to furnish
items as requested by City of Pasco employees
when above Purchase Order number is referenced .
Please issue a monthly statement supported by
your signed counter tickets and return , along
with this Purchase Order to Purchasing Supervisor ,
City of Pasco , P . 0 . Box 293 , Pasco , Wa . 99301 .
This order expires on 19
4 . Determines those employees in each department , in
concert with the department head , who will be authorized
to make purchases under the Blanket Departmental
Purchasq Order procedure and issues a periodic listing
to the departments .
5 . Informs departments in writing of the names of vendors
and the types of items covered by individual Blanket
Purchase Orders .
6 . On a monthly basis , causes the delivery tickets
received from authorized employees via the affected
department heads , to be compared with vendor statements ,
and resolves any differences . Processes the vendor
statement for payment on its receipt along with
the advance PO covering it .
7 . Closes each Blanket Purchase Order monthly by writing ,
" Complete " on the accounting copy , and issues a
new Purchase Order for the ensuing month and sees
to it that each required vendor , pursuant to No . 3
above , gets the required PO . Informs department
heads of the new Purchase Order number , etc .
• IX . INDIVIDUAL PURCHASES AGAINST BLANKET PURCHASE ORDERS ;
Authorized departments and designated employees therein
shall be authorized to place orders up to $ 50 . 00 in
value with any specific vendor covered by a Blanket
Departmental Purchase Order . The following procedure
will generally be followed :
1 . Recognizes the need for a local order item under
a Blanket Departmental Purchase Order and consults
the local order list supplied by the Purchasing
Supervisor . Obtains :
- Blanket Purchase Order Number for their
department :
Approval of department head to purchase
the item if under $ 50 . 00 . ( If over $ 50 . 00 ,
requires a Purchase Requisition ) .
2 . Uses the Blanket Purchase Order number for their
department to obtain the item from the vendor .
3 . Forwards appropriate copy- of delivery ticket to
the Purchasing Office and makes sure that the Blanket
Departmental Purchase Order number shows on the
delivery ticket .
2 -
At this point in the procedure , the Purchasing Office
shall follow this procedure :
1 . Collect $ the delivery tickets as received .
2 . Compares the tickets to the terms and prices of
the agreement with the vendor , if such exists .
3 . Files the tickets by Blanket Departmental Purchase
Order number .
4 . Monthly , compares the delivery tickets to the vendor ' s
statement for a particular Blanket Departmental
Purchase Order .
5 . Resolves any differences between tickets and vendor ' s
statement .
6 . Processes vendor ' s statement for payment after audit
and approval .
X . LOCAL PURCHASE ORDERS ( LPO ) :
It is recognized that the purpose of a centralized formal
• purchasing system can be subverted by lost productive
time on the job if a formal purchase requisition / PO
process is required for each incidental purchase .
Therefore , department heads are authorized to place
direct purchases up to $ 50 . 00 in value with any vendor
within the Tri - Cities for incidental purchases for frequently
needed lowrdollar value supplies . However , department
heads are required to keep the Purchasing Supervisor
posted on any item ( s ) where the City would possibly
stand to save money if orders were : ( 1 ) Combined with
other departments to take advantage of larger quantity
purchases ; ( 2 ) where the City , through the Purchasing
Office , can possibly take advantage of price agreements
contracts ; or ( 3 ) where the City could possibly save
money by stocking the item in central stores .
Department heads will forward to the Purchasing Supervisor
a list containing the names of all persons in a given
department who are authorized to make LPO direct purchases .
To place a direct LPO , the authorized employee will follow
the general procedure relating to purchasing under a
Blanket Purchase Order ( see Section IX ) .
LPG ' s under any circumstances will not be used for purchasing
anything beyond $ 50 . 00 in value .
LFK : pt - 3 -