Docstoc

Blanket Purchase Agreements

Document Sample
Blanket Purchase Agreements Powered By Docstoc
					                               BLANKET PURCHASE AGREEMENTS

GENERAL

A blanket purchase agreement (BPA) is a simplified method of filling anticipated repetitive
needs for supplies or services by establishing ‘charge accounts’ with qualified sources of supply.
BPA’s are designed to reduce administrative costs in accomplishing small purchases by
eliminating the need for issuing individual purchase documents.

BPA’s are advantageous when a wide range of items in broad class of goods (e.g. hardware) are
generally purchased but the exact items, quantities and delivery requirements are not known in
advance and may vary considerably. In addition, the writing of numerous purchase orders can be
avoided through the use of this procedure.

BPA’s are established without a purchase requisition.

BPA’s are not to be used to avoid the labor standards provisions or to circumvent compliance
with the small purchase limitation. Individual purchases must not exceed the dollar limitation for
small purchases ($10,000).

BPA’s should be made with firms from which numerous individual purchases will likely be
made in a given period. For example, if past experience has shown that certain firms are
dependable and consistently lower in price than other firms dealing in the same commodities,
and if numerous small purchases are usually made from such suppliers, it would be advantageous
to establish BPA’s with those firms.

To the extent practical, BPA’s for items of the same type should be placed concurrently with
more than one supplier. All competitive sources should be given an equal opportunity to furnish
supplies or services under BPA’s.

If it is determined that BPA’s would be advantageous, suppliers should be contacted to make the
necessary arrangements for securing maximum discounts, documenting the individual purchase
transactions, periodic billing, and other necessary details.

A BPA may be limited to furnishing individual items or commodity groups or class of items, or
it may be unlimited for all items or services that the source of supply is in a position to furnish.

BPA’s are prepared and issued on the Authority purchase order form.

           BLANKET PURCHASE AGREEMENT TERMS AND CONDITIONS

       a. A statement that the supplier shall furnish supplies or services, described in general
          terms, if and when requested by the contracting officer (or the authorized
          representative of the contracting officer) during a specified period and within a
          stipulated aggregate amount, if any.
                                BLANKET PURCHASE AGREEMENTS

            BLANKET PURCHASE AGREEMENT TERMS AND CONDITIONS

       b. A statement that the Authority is obligated only to the extent of authorized purchases
          actually made the BPA.

       c. A statement that the prices to the Authority are as low or lower than those charged to
          the supplier’s most favored customer for comparable quantities under similar terms
          and conditions, in addition to any discounts for prompt payment.

       d. A statement that a list of individuals authorized to purchase under the BPA, identified
          either by title of position or name of individual and the dollar limitation per purchase
          for each position title or individual, shall be furnished to the supplier by the
          contracting officer.

       e. A requirement that all shipments under the agreement shall be accompanied by
          delivery tickets or sales slips which shall contain the following:

               (1)   Name of supplier
               (2)   BPA number
               (3)   Date of purchase
               (4)   Purchase or order number
               (5)   Itemized list of supplies or services furnished
               (6)   Quantity, unit price and extension of each item
               (7)   Date of delivery of shipment

       f. A summary invoice is to be submitted at least monthly for all deliveries made during
          the billing period, identifying the delivery tickets covered therein, stating their total
          dollar value, and supported by copies of the delivery tickets which have been signed
          by the person receiving the goods or services.

PURCHASES UNDER BLANKET PURCHASE AGREEMENTS

The BPA is to be used for numerous individual small purchases. It is not to be used to avoid the
small purchase limitation. BPA’s shall not exceed the dollar limitation for small purchases. The
existence of a BPA does not justify purchasing from only one source or avoiding women and
minority set-asides

If there is an insufficient number of BPA’s to ensure maximum practicable competition for a
particular purchase, the contracting officer shall-

       a.      Solicit quotations from other sources and make the purchase as appropriate.
                              BLANKET PURCHASE AGREEMENTS

               PURCHASES UNDER BLANKET PURCHASE AGREEMENTS

       b.      Establish additional BPA’s to facilitate future purchases if:

               (1) Recurring requirements for the same or similar items or services seem likely.
               (2) Qualified sources are willing to accept BPA’s.
               (3) It is otherwise practical to do so.

       c.      Documentation of purchases under BPA’s shall be limited to essential information
               and forms, as follows:

               (1) Purchases under BPA’s generally should be made orally, but a purchase
                   document may be issued if written communications are necessary to ensure
                   that the vendor and the purchaser agree concerning the transaction.

               (2) If a purchase document is issued, the essential elements (e.g., date, vendor,
                   items or services, price, delivery date) are to be recorded on the Authority’s
                   Purchase/Delivery Order Data File folder.

               (3) If a purchase document is issued, use the Authority’s purchase order form
                   and file this form and any relevant correspondence in the BPA file folder.

               (4) Documentation of individual purchases under BPA’s must note the pertinent
                   purchase requisitions and accounting data.

               (5) When delivery is made or the services are performed, the vendor’s sales
                   document, delivery document, or invoice may (if it reflect the essential
                   elements as noted above) be used for the purpose of recording receipt and
                   acceptance of the items or services. However, if the purchase is assigned to
                   another office for administration (such as Maintenance or the Warehouse),
                   receipt and acceptance of supplies or services are to be documented by
                   signature and date on the receipt or delivery ticket after verification and
                   notation of any exceptions.

An individual BPA is complete when the purchases under it equal its total dollar limitation, if
any, or when its stated period expires.
                             BLANKET PURCHASE AGREEMENTS

               BLANKET PURCHASE AGREEMENT REVIEW PROCEDURES

The contracting officer placing orders under the BPA, or the designated representative of the
contracting officer, must review a sufficient random sample of the BPA files at least annually to
ensure that these procedures are being followed.

The contracting officer that entered into the BPA must-

       a. Ensure that each BPA is reviewed at least annually and, if necessary, updated at that
          time.

       b. Maintain awareness of changes that may warrant making new arrangements with
          different suppliers or modifying existing arrangements.
                              BLANKET PURCHASE AGREEMENTS


Housing Authority of the City of Little Rock
Blanket Purchase Agreement No._____________                           Dated____________

                              TERMS AND CONDITIONS

   1. CONFLICT OF INTEREST- The contractor certifies by acceptance of this order that no
      related official, during his or her tenure or for one year thereafter, shall have any interest,
      direct or indirect, in this purchase order or the proceeds thereof. The term “related
      official” means any:

          a. Member, officer, or employee of the Housing Authority.
          b. Member of the governing body of the locality in which the Housing Authority
             was activated.
          c. Member of the governing body of the locality in which the housing development
             is situated.
          d. Other public official of such locality (ies) who exercise any function or
             responsibility with respect to the housing development.

   2. DELIVERY- If the contractor refuses or fails to make deliveries of the supplies or
      services within the time specified, the Housing Authority may, by written notice,
      terminate the contractor’s right to proceed with deliveries. All packages shall include the
      BPA number as well as the specific order number.

   3. PRICES- Unless otherwise specified, all prices are firm-fixed prices, which are not
      subject to adjustment based on costs incurred. Prices should be stated in the units
      specified, with packaging included. All the prices are considered to be f.o.b. destination,
      unless otherwise indicated.

   4. INSPECTION- All items covered by this order shall be subject to inspection and
      acceptance at destination.

   5. BILLING- All invoices must include the BPA number, order number, date of purchase,
      item(s) purchased, price, and name of person making the purchase. Invoices are to be
      submitted monthly, in duplicate.
                               BLANKET PURCHASE AGREEMENTS


DESCRIPTION OF THE AGREEMENT

The Vendor shall furnish all supplies, services and equipment in accordance with the terms and
conditions listed herein, as requested by the Contacting Officer or Purchasing Clerk / Purchasing
Administrator as listed below. The term of this agreement shall not exceed 12 months.

The Housing Authority is obligated only to the extent of authorized purchases actually made
under this agreement.

Prices paid by Housing Authority shall be as low or lower than those charged the Vendor’s most
favored customer for comparable quantities under the same or similar terms and conditions in
addition to any discounts for prompt payment.

The dollar limitation for each individual purchase under this Blanket Purchase Agreement shall
be limited to $20,000.00.

A list of individuals authorized to purchase items under this agreement shall be furnished to the
Vendor by the Contracting Officer stating the individuals’ name, position title, and dollar
limitation per purchase.

All supplies furnished or services performed under this agreement shall be accompanied by
delivery tickets, sale invoices, or service invoice and shall contain the following information:



       1.   Name of Vendor.
       2.   Blanket Purchase Agreement Number.
       3.   Date of Purchase
       4.   Purchase Number
       5.   Itemized list of supplies or services furnished.
       6.   Quantity, Unit price, and extension of each item, less applicable discounts.
       7.   Date of delivery or shipment.

INVOICES- A summary invoice shall be submitted monthly or upon expiration of this Blanket
Purchase Agreement, whichever occurs first. This invoice shall be for all deliveries made during
the billing period, identifying the delivery tickets covered therein, stating their total value, and
supported by signed copies of the delivery tickets.

				
DOCUMENT INFO
Description: Blanket Purchase Agreements document sample