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;