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Most purchases require a PO from the Supply Chain Management Department. Generally, purchases will be made on a firm fixed-price basis.
For purchases requiring a contract, the contract must be agreed upon and signed by authorized representatives of both parties before a purchase order can be issued. The contract will clearly set forth all terms and conditions of purchase. Technical performance and all other pertinent specifications will be made a part of the contract. Pursuant to negotiations, long-term contracts may contain clauses for limited escalation in prices.
Upon evaluation of market prices and suppliers' offers, single-source negotiation may be used when:
- Electric service must be restored and time does not permit delay;
- There is a need to match existing equipment when dealing with a component already in use;
- Renewal parts are supplied only by the original manufacturer;
- Only one supplier is available for a specified type of product or service;
- A supplier offers a one-time substantial savings on a surplus item which meets all Company specifications, and is in new or unused condition; and/or
- The Company requires small purchases not involving a significant amount of money.
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