PROCUREMENT GUIDELINES

P-Card holders should also review their agency’s policies and procedures pertaining to P-Card use. Ultimately, it is the P-Card holder who is responsible for the proper use and safekeeping of a P-Card.

K. Pu rcha s e Orde rs Purchase Orders (PO) are basic contractual documents, issued by an agency’s finance office or other authorized individuals, and are generally for “one time” purchases. POs usually consist of the vendor’s name/address, a description of the item, quantity, cost per item, shipping terms, total cost and some data for state use (cost center, object code, and the applicable OGS or purchase authorization contract number). The PO solidifies the terms of the purchase. POs are used to procure from preferred sources, OGS centralized contracts, and agency open market purchases. Appendix A must be incorporated in the agency’s purchase orders. L. Pu rcha s e Au tho riza tions Purchase Authorizations (PA) are issued by a state agency and are similar in both form and function to OGS centralized commodity contracts, in that once the PA is approved, agencies can issue purchase orders against the PA without further approval of OSC. An example is when an agency knows that a particular product, not available through a preferred source or an OGS centralized contract, will be needed over an extended period of time, but the exact quantity is not known at the time of establishing the PA. The primary benefit of the PA is that it allows an agency to establish terms and pricing of a product without needing to encumber funds at the time of submission of the PA to OSC. Additional information, as well as a standard format for the PA and award letter, is available through the OSC Bulletin G-191 at:

www.osc.state.ny.us/Agencies/gbull/g-191.htm

M. In te ragency Memo ra ndum o f Unde rs tand ing

An Interagency Memorandum of Understanding (MOU) is an informal agreement entered into between two or more New York State agencies that outlines matters of substance, such as budget and reporting responsibilities, but does not include formal standard contract terms. Since MOUs are not legally binding contracts, they do not require the approval of OSC. Additional information on these documents can be obtained from OSC Bulletin G-228 at:

www.osc.state.ny.us/Agencies/gbull/g-228.htm

New York State Procurement Guidelines 11