§ 3.08.100. Blanket purchase orders.

A.

General. A blanket purchase order (BPO) is a method of filling anticipated repetitive needs for materials, supplies, or services by establishing "charge accounts" with qualified vendors. BPO's do not exempt staff from the responsibility of obtaining the appropriate authorizations and following the bid procedures. The use of BPO's allows the District to avoid writing numerous individual purchase orders for similar types of purchases from the same vendor throughout the fiscal year. BPOs may be established with more than one supplier for supplies or services of the same type to provide maximum practicable competition or with a single vendor from which numerous individual purchases will likely be made in a given fiscal year.

There are two main types of BPO: Service Contracts and Materials/Supplies/Repairs. They are differentiated primarily by the method of competitive bidding that is required. The following subsections B and C provide more detail about the methods for bidding and examples of the types of purchases that each applies to.

B.

Blanket Purchase Orders for Service Contracts. BPO's for service contracts will be issued for a maximum of one fiscal year. All BPO's for services expire on June 30 ^th , the last day of each fiscal year. New BPO's for services must be supported by approvals in accordance with Section 3.08.060 and competitive bidding in accordance with Section 3.08.070 of this policy. For the purpose of determining the value of the service contract as it applies to the Sections 3.08.060 and 3.08.070, the maximum annual value of the contract shall be used. If the contract maximum needs to be increased during the year, the requirements of Sections 3.08.060 and 3.08.070 must be met at the new maximum level before the increase is granted.

Staff members are encouraged to establish BPO's for service contracts with more than one service provider of the same type in order to provide maximum practicable competition.

BPO's for service contract agreements that are on a "month-to-month trial" basis may be awarded by determining the monthly cost of service for up to a maximum service term of twelve months. After the initial 12 month term expires, documentation and approvals in accordance with Sections 6 and 7 are required using the maximum annual value of the contract.

Examples of service contracts that could effectively utilize BPO's are: electrician, tank inspection, sludge hauling, and paving.

C.

Blanket Purchase Orders for Materials/Supplies/Repairs. BPO's for materials, supplies, and repairs purchases will be established for any qualifying vendor as requested by a Director or Manager. All BPO's for materials, supplies, and repairs expire on June 30th, the last day of each fiscal year. New BPO's for materials, supplies, and repairs may be created without any documented bids. The requirements of Sections 3.08.060 and 3.08.070 of this policy must be met at the time the materials, supplies, or repairs are ordered. Approval and bid documentation must be retained by the Director or Manager responsible for the purchase.

Staff members are encouraged to establish BPO's for materials, supplies, and repairs with more than one vendor of the same type in order to provide maximum practicable competition.

Examples of materials, supplies, and repairs purchases that could effectively utilize BPO's are: treatment chemicals, fuel, auto parts, vehicle repairs, equipment repairs, HVAC parts, crusher base, and cold-mix asphalt.

D.

Blanket Purchase Order Requisitions. The requisition process as described in Section 3.08.090 should be utilized for the creation of blanket purchase orders.

E.

Blanket Purchase Order Receiving. The exact amount of the individual purchases of services, materials, supplies, or repairs is not known at the time the BPO is created. Therefore, documentation signed by the appropriate staff member such as an invoice and/or receiver must be submitted to Accounts Payable. Accounts payable will then receive the line item in the BPO and process for payment.

F.

Blanket Purchase Order Review and Audit. BPO requisitions will be reviewed and approved by the appropriate Directors, Managers, AGMs, Finance Review and a Purchasing Agent before the BPO is created. Documentation of bids and the appropriate bid procedures must be retained by the Directors or Managers and will be subject to internal and external audit as described in Section 3.08.050.

( Res. No. 2015-11-6, § 1, 11-24-2015 ; Res. No. 2017-10-2 , 10-24-2017; Res. No. 2018-7-2 , § 1(Exh. A), 7-24-2018)