What is a blanket purchase order?
A blanket purchase order is a standing agreement for repeat purchases from one vendor. This cheat sheet covers how to think about one, how it runs and where it goes wrong. The detail is further down.
How to think about it
- One agreement, many purchases. A blanket PO is set up so you can make repeated purchases from a single purchasing agreement with a vendor.
- Capped by dollars, not always by item. It covers items from a vendor up to a dollar limit. It lets you spend a set amount but doesn't necessarily set the dollar amount of each item.
- Built for recurring, uncertain buys. It suits recurring purchases of low-value supplies and services when the exact quantity can't be known when the order is issued.
- Each purchase is a release. Individual orders are drawn against the blanket PO on a periodic release basis.
How a blanket PO runs
- Set it upProcurement establishes the blanket PO with the vendor through its purchasing process.
- Fund itAt one public university, the department gets a funded call number and the system encumbers the amount against the department's budget.
- Release ordersStaff request items off the blanket PO as needs come up.
Where it goes wrong
- Treating it as a reason to skip competition. Federal rules say a blanket purchase agreement doesn't justify buying from only one source or avoiding small business set-asides.
- Forgetting the budget. Federal rules say a blanket purchase agreement doesn't exempt an agency from keeping obligations and expenditures within available funds.
- Thin records. Federal rules still ask buyers to record the date, supplier, supplies or services, price and delivery date for each purchase.
Blanket PO vs. other ways to buy
| Type | What it covers | How each purchase is made |
|---|---|---|
| Blanket purchase order | Repeated purchases from one vendor, up to a dollar limit | A release requested off the blanket PO |
| One-time purchase order | A single purchase for items not already on a blanket PO | Its own purchase order |
| Blanket purchase agreement (federal) | Anticipated repetitive needs, through charge accounts with qualified suppliers | Individual purchases, generally made electronically |
Questions
Is a blanket purchase order a contract?
Yes. One public university defines it as a contract for a specified period between the university and a vendor. New Jersey's state purchasing glossary calls blanket POs term contracts.
What is a release against a blanket PO?
It is a request for items off the blanket purchase order. New Jersey's glossary calls it a release requisition.
When should you use a blanket purchase order?
For recurring purchases of a wide range of low-value supplies and services, especially when you can't know the exact quantity at the time you set up the order.
What is the difference between a blanket purchase order and a blanket purchase agreement?
Blanket purchase agreement is the federal acquisition term. The FAR defines it as a simplified way to fill anticipated repetitive needs by setting up charge accounts with qualified suppliers. Both cover repeat buying from set vendors.
Sources
- University of Alaska Anchorage, Procurement Services, 202: Blanket Purchase Orders, accessed November 2, 2026.
- New Jersey Department of the Treasury, Division of Purchase and Property, NJSTART Glossary Terms, accessed November 2, 2026.
- Electronic Code of Federal Regulations, 48 CFR 13.303-1: General (Blanket purchase agreements), accessed November 2, 2026.
- Electronic Code of Federal Regulations, 48 CFR 13.303-5: Purchases under BPAs, accessed November 2, 2026.
- Engine, Direct Bill for Company Hotel Travel, accessed November 2, 2026.