BLANKET ESTIMATES - 8342.2-FEB-1965

(Revised: 02/1965)

Agencies will be governed by requirements of the Office of Procurement, Department of General Services, concerning the submission of estimates to obtain blanket purchase orders. (See SAM Section 3568.) Blanket estimates, and the resulting blanket purchase orders, will merely be considered authorizations to purchase. Blanket estimates and blanket purchase orders will not be accounted as encumbrances. This procedure permits the unencumbered balances shown in accounts and on reports to reflect more accurately the true financial condition of the allotments. Expenditures made under blanket purchase estimates and orders ordinarily will be treated as a deduction from unencumbered balance with no encumbrance being recorded except for the estimated lag. Where such purchases are of a substantial amount in relation to total operating expenses, agencies may establish a separate Allotment-Expenditure Ledger card for the items covered by a blanket estimate. Agencies should either (a) establish a lag for this allotment causing the unencumbered balance to represent the approximate amount available for additional encumbrances or (b) encumber individual sub-purchase orders if a finer control is required to meet their needs. Supply Order, Std. Form 116, may be used as an encumbrance document for supplies purchased from Central Stores.