Procurement Guidelines - New York State Office of General Services

P-Card holders should also review their agency’s policies and procedures pertaining toP-Card use. Ultimately, it is the P-Card holder who is responsible for the proper use andsafekeeping of a P-Card.K. Purchase OrdersPurchase Orders (PO) are basic contractual documents, issued by an agency’s financeoffice or other authorized individuals, and are generally for “one time” purchases. POs usuallyconsist of the vendor’s name/address, a description of the item, quantity, cost per item, shippingterms, total cost and some data for state use (cost center, object code, and the applicable OGSor purchase authorization contract number). The PO solidifies the terms of the purchase. POsare used to procure from preferred sources, OGS centralized contracts, and agency openmarket purchases. Appendix A must be incorporated in the agency’s purchase orders.L. Purchase AuthorizationsPurchase Authorizations (PA) are issued by a state agency and are similar in both formand 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. Anexample is when an agency knows that a particular product, not available through a preferredsource or an OGS centralized contract, will be needed over an extended period of time, but theexact 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 ofa 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 availablethrough the OSC Bulletin G-191 at:www.osc.state.ny.us/Agencies/gbull/g-191.htmM. Interagency Memorandum of UnderstandingAn Interagency Memorandum of Understanding (MOU) is an informal agreemententered 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 contractterms. 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.htmNew York State Procurement Guidelines 11