A NATO Blanket Purchase Agreement is a simplified me thod of filling anticipated repetitive needs for basic supplies or services by establishi ng “charge accounts” with qualified sources of supply. Essentially, this procurement approac h replaces the need to execute multiple EM(2010)0285-REV1 - 89 - 14 June 2011 Purchase Orders. Blanket Purchase Agreement s should address the frequency of ordering and invoicing, discounts, and delivery locati ons and times. For example, when the Procurement Service finds a schedule supply or service elsewhere at a lower price or when a Blanket Purchase Agreem ent is being established to fill recurring requirements, requesting a price reduction coul d be advantageous. The potential volume of orders under these agreements, regardless of the size of the individual order, may offer the requester the opportunity to secure greater discount s. Although the use of Blanket Purchase Agreements provides added purc hasing flexibility, both the Procurement Service and requesters still need to carefully ensure that obligations and expenditures are still kept within established funding limits. Transactions under Blanket Purchase Agreement s shall not exceed le vel B of the EFL. The following are circumstances under whic h the Procurement Service may establish Blanket Purchase Agreements:
A wide variety of items in a broad class of supplies or services exists and is generally purchased. However, the exac t items, quantitie s, and delivery requirements are not known in ad vance and may vary considerably.
There is a need to provide commercial sources of supply for one or more offices or projects in a given area t hat do not have or need authority to purchase otherwise.
The use of this procedure would avoi d the writing of numerous Purchase Orders for which administrativ e costs can be excessive.