Purchase Orders
A contract or purchase order (called a commitment document in the fiscal rules) is required to encumber funds for any purchase exceeding $10,000. Generally, there are three types of commitment documents used in state procurement: purchase orders, contracts and vendor agreements. For some purchase orders, the requirement for a commitment document is exempted in fiscal rule 3-1, section 5.5.
Some general considerations for all purchase orders and contracts include fair and reasonable pricing, the risk to the State and the special requirements when federal dollars are being expended.
Purchase Order Terms & Conditions
Pursuant to Fiscal Rule 3-1, §5.1, the State-standard Purchase Order Terms and Conditions are required to be included in all purchase orders issued by State agencies and institutions of higher education (IHE).
Modifications
For interagency purchase orders between state agencies and IHEs, such issuing agency or IHE may change or delete any provision.
For purchase orders issued to parties other than state agencies or IHEs,
No changes can be made to the following provisions without prior written approval by the CCU: Changes, Vendor Offset, Assignment and Successor, Independent Contractor and Funds Availability.
No changes can be made to the following provisions without legal review and written approval by the CCU (for delegated agencies), or a Reviewing Attorney (for delegated IHEs): Choice of Law, Public Contracts for Services, or Public Contracts with Natural Persons.
Except as limited above, other changes to the Purchase Order Terms and Conditions are permitted only with prior written approval of a procurement officer or authorized State Controller delegate.
See Fiscal Rule 3-2, §5.1 for a description of the permitted modifications.
Approved Form
The following are the CCU approved Purchase Order Terms and Conditions, which are periodically updated:
