Standing Order Preparation Instructions FY2018-2019

What is a Standing Order (SO)?

Per Policy BS10, Standing Orders are issued to vendors for a specific period of time and a stated amount of money. Purchases made against such an order are limited to supplies of a repetitive nature, or are such that the Department of Purchasing Services has determined that it is the most efficient way to purchase such items. Purchasing may, at its discretion, elect to establish a contract for prices for items on standing orders. Equipment (e.g. standalone tangible items such as machinery, hand tools, power tools, meters, and electronics) is not to be purchased on standing orders. (Policy BS10)

Standing Order Processing Information

Standing Orders may be processed electronically through eBuy+ for the 2018/2019 fiscal year at this time. To allow sufficient time for Purchasing Services staff to review and process your request, all Standing Order requests should be received by Purchasing Services no later than May 7, 2018. Requests received after that date will be processed, but should not be expected to be finalized by fiscal year-end.

The availability of the Purchasing Card and eBuy catalogs has eliminated the need for many Standing Orders and may provide an alternative method of payment for your purchasing needs. Please evaluate the availability of these purchasing resources prior to submitting a Standing Order request. Standing Order requests to vendors with an eBuy catalog may require additional justification from the requesting department. All Standing Orders are subject to normal purchasing procedures including audit and continual review by Purchasing Services.

In order to determine the accurate dollar requirement for the FY 18/19 Standing Order, the requesting department should analyze up to three years of prior spend to determine the correct amount. Also, please note that Purchasing Services will reject FY 18/19 Standing Order requests that are associated with unused FY 17/18 Standing Orders.

Penn State is committed to affirmative action, equal opportunity and the diversity of its workforce.

General Information:

Before you submit a request, please evaluate whether it is in fact necessary to initiate a Standing Order. The availability of the Purchasing Card and eBuy catalogs has eliminated the need for many Standing Orders and may provide an alternative method of payment for your purchasing needs. eBuy catalog orders are more efficient, have faster delivery, electronic invoicing and assure contract pricing.

You are encouraged to use eBuy catalogs in lieu of standing orders when possible. Items that can be procured through the eBuy catalog system include, but are not limited to the following: computers, software, audio visual equipment, scientific supplies, office supplies, office furniture, maintenance, repair, and operating (MRO) supplies.

All current eBuy suppliers:

Apple Computer Lenovo
B & H Photo Video McCartney’s
CDW-G MSC Industrial Supply
Dell Computer National Gift Card
DOT Scientific Newark
EMSCO/Corning Office Depot Technology
Fastenal Promoversity
Fisher Scientific Co. PSU General Stores
Henry Schein Software at Penn State
Grainger Sigma-Aldrich
Life Technologies (formerly Invitrogen) Technology Integration Group
K.I. Corbett VWR International
Kurt J. Lesker Company WESCO Distribution

Standing Order requests to vendors with an eBuy catalog may require additional justification from the requesting department stating reason why eBuy catalog cannot be utilized.

Purchasing Policy:

All Standing Orders are subject to normal purchasing procedures including audit and continual review by Purchasing Services. Any Standing Orders in excess of $10,000 or Standing Orders that are increased during the fiscal year to exceed $10,000 require evidence of competition or sole source justification per Policy BS07. When choosing a supplier, we encourage you to consider their diversity status (minority-, women-, and/or LGBT-owned businesses) and environmentally sustainable products.

In the event that the balance of a Standing Order requires an increase during the fiscal year, you must submit an eBuy+ Purchase Order Change Form to Purchasing Services. The Purchase Order Change form shall state the reason for the increase and why the increase was not anticipated. Standing Order invoices that exceed the available Standing Order balance will not be approved for payment.

If the total spend with a non-eBuy supplier exceeds $10,000 in one fiscal year, please consult with the appropriate Purchasing Agent before using the Purchasing Card for payment.

eBuy Training:

Please follow the guidelines below when entering your Standing Order requisition:

Guidelines: Utilize the Standing Order Form in eBuy.

  1. Enter the standing order requisition form in eBuy+ The “Fiscal Year Date” should be 2018/2019
  2. Please note that Purchasing Services will be rejecting FY18/19 requests associated with FY17/18 Standing Orders that were not utilized.
  3. Realistically estimate the annual dollar requirements of the Standing Order. At a minimum, the requesting department should make every effort to analyze up to three years of prior spend to determine the correct amount.
  4. In cases where the estimated annual dollar requirement and historical spend amount of the Standing Order is less than $2,000 a year, the Purchasing Card should be considered as an alternative method for purchasing required items.
  5. Identify in detail the type of item(s) to be included in the Standing Order for purchase. The Standing Order cannot be open-ended.
  6. If the Standing Order replaces a previous year’s Standing Order, identify the previous Standing Order Number.
  7. For items on continual rental, lease, or maintenance, include serial number(s) of unit(s) covered. Use individual orders for rental, lease, and/or maintenance agreements.
  8. If you have an account number, please list the account number in the description area of the form.
  9. Name the individual(s) authorized to initiate orders with the supplier. Do not state “or authorized representative.”
  10. Specify the method of pick-up or specify the delivery point. An individual authorizing an order should not also be verifying the receipt of the items. In the event items must be authorized and picked up by the same individual, the signed receipt must be turned in to a second individual within the department for receipt verification and payment authorization.
  11. A receipt should be signed when material is picked up from a supplier. Be sure a copy is returned to the department or Financial Officer.
  12. Equipment purchases (standalone tangible items such as machinery, hand tools, power tools, meters, and electronics) are not permitted on Standing Orders.
  13. Items offered by General Stores are not to be purchased on Standing Orders from outside suppliers.
  14. Multi-year standing orders may be used only when meeting all of the following conditions:
    1. When the price is fixed for multiple years.
    2. Only one or two invoices are received each year.
    3. No budget changes are expected during the term of the standing order.