Frequently Asked Questions
Purchasing Question: What is the difference between a draw-down purchase order and a blanket purchase order?
A blanket purchase order is for a specific item at a set unit price for a negotiated total quantity. A draw-down purchase order specifies the total amount that will be permitted to be paid under the purchase order number.
Purchasing Question on Purchase Orders: How do I create a draw-down purchase order?
A draw-down PO can be created by doing the following steps:
Creating a PO in this draw-down manner allows you to submit periodic invoices directly to Accounts Payable (with the PO number referenced on them) and they will be paid against the draw-down PO without creating a new separate PO, or a new line item to an existing PO. Additionally, because a new PO or line item to an existing PO has not been created for each new invoice, there are no recurring approvals required in Oracle. The invoice amount is drawn down from the total contract value of the one PO until there are no more dollars left on the order.
- At the line level of a new PO, select the line type as “Service/Goods – Amount."
- In the Unit of Measure field, you will see CURRENCY USED ABOVE, which has defaulted there when you selected Service/Goods – Amount.
- Place the dollar value of the total contract in the Quantity field.
- The number 1 (which represents $1) will default in the Unit Price field.
- Continue on with the PO as you normally would.
- When finished, look at the total PO Amount field in the header to verify the total is equal to the total value of the contract for the complete time period/term of the agreement.
Creating a PO in this draw-down manner allows you to submit periodic invoices directly to Accounts Payable (with the PO number referenced on them) and they will be paid against the draw-down PO without creating a new separate PO, or a new line item to an existing PO. Additionally, because a new PO or line item to an existing PO has not been created for each new invoice, there are no recurring approvals required in Oracle. The invoice amount is drawn down from the total contract value of the one PO until there are no more dollars left on the order.
Procurement Question on Supplier: What does it take to make a supplier part of the Preferred Supplier Program?
A Preferred Supplier is one that has completed a formalized selection process operated by PS or FMS, and has been chosen by the University as a supplier who can provide products, materials and/or services that are in the best interests of the University as related to quality of products, materials and/or services; length of contract; advantageous pricing; payment methodologies; delivery practices/performance; supplier operational support and services; ethical business practices; and social and community support.
Procurement Services will conduct a formalized selection process based on purchasing trends and input from campus.
Requirements to be considered for identifying a Preferred Supplier:
1. Items can be identified and competed in a formalized selection process.
2. Firm pricing can be established during the term of the agreement.
3. Demand exists in multiple units across campus.
4. Commodity represents a significant purchasing volume to the University to warrant the commitment of time and attention of a campus team the formalized selection process. (Generally, we will not consider a commodity unless it reaches a value of $100K or greater.)
A Preferred Supplier will be required to sign an agreement or contract which identifies all the terms and conditions under which the agreement/contract will operate, including allowing the University to retain the right to bid on individual requirements of $50,000 or more. The period of performance for Preferred Supplier Agreements is typically three years with options for two one-year extensions.
Procurement Services will conduct a formalized selection process based on purchasing trends and input from campus.
Requirements to be considered for identifying a Preferred Supplier:
1. Items can be identified and competed in a formalized selection process.
2. Firm pricing can be established during the term of the agreement.
3. Demand exists in multiple units across campus.
4. Commodity represents a significant purchasing volume to the University to warrant the commitment of time and attention of a campus team the formalized selection process. (Generally, we will not consider a commodity unless it reaches a value of $100K or greater.)
A Preferred Supplier will be required to sign an agreement or contract which identifies all the terms and conditions under which the agreement/contract will operate, including allowing the University to retain the right to bid on individual requirements of $50,000 or more. The period of performance for Preferred Supplier Agreements is typically three years with options for two one-year extensions.
What if my question is not answered on this list?
You can also call or email Procurement Services for immediate assistance at 412-268-3617 or procurement-inbox@andrew.cmu.edu