Purchase Orders - Procedure 009

 

1. PURPOSE

   To define, establish criteria for use, and provide instructions for processing purchase orders.

    

2. SCOPE:

   This procedure applies City wide.

    

3. DEFINITION AND USE:

   A purchase order when properly completed commits City funds for the procurement of goods/services necessary for City operations.

    

   1. A purchase order is a means of expediting the acquisition of goods/services.

       

   2. Purchase order numbers are assigned by the Procurement Division. This is the number by which all phases of the transaction are identified.

       

   3. Purchase orders are not required for the following:

       

      1. Travel Authorization Requests
      2. Subscriptions
      3. Memberships
      4. Publications
      5. Telephone Service
      6. Insurance
      7. Land acquisition
      8. Water and sewer services

          

   4. POs will not be issued to Altamonte Springs vendors who do not have a valid City occupational license.

       

4. TYPES OF PURCHASE ORDERS

    

   1. Standard/Regular

      A purchaser’s written document to a supplier formally stating all terms and conditions of a proposed transaction. This is the most commonly used purchase order.

       

   2. Field

      Used for small purchases. For further definition and use, see Procedure 008.

       

   3. Confirming

      A purchase order restating the same terms originally placed orally.

       

   4. Emergency

      Designed to meet an urgent need; e.g. supplies or repairs when there is a threat to property or safety. For further definition and use, see Procedure 010.

       

   5. Blanket

      A contract under which a vendor agrees to provide goods/services to a purchaser on a demand basis; the contract generally establishes prices, quantities, terms, conditions, and the period covered; shipments are to be made as required by the purchaser; e.g., warehouse inventory items.

       

   6. Yearly/Annual

      A form of contract covering long-term requirements used when the total quantity required cannot be definitely fixed, but can be stated as an estimate or within maximum and minimum limits, with deliveries on demand; e.g., automotive batteries, miscellaneous hardware.

       

   7. Agreement/Contract

      A purchase order that results from an existing agreement or contract; e.g., temporary personnel services, office supplies.

       

5. DISTRIBUTION

    

   1. White - mailed daily to vendor by Procurement Division.

       

   2. Canary - retained by Procurement Division as official copy.

       

   3. Pink - receiving copy; forwarded to Accounting Division for final payment.

       

   4. Goldenrod - retained by department.