PURPOSE

To define the procedure used to renew or cancel existing term orders.

POLICY

All Term Orders will be reviewed jointly by the Purchasing Department and the Requesting Department prior to expiration to determine if the order should be renewed or canceled.

There will be no automatic renewals.

PROCEDURE

Prior to the expiration date of a Term Order (usually 30-60 days), the Purchasing Department will generate an Expiration Notice and forward it to the appropriate department(s) for review.

The Expiration Notice will have current price information from the existing order and new pricing based upon quotations obtained by Purchasing.

Renewal

If the Requesting Department opts to renew the order, the Expiration Notice must be signed in the area marked "Renew". Any pertinent changes need to be noted. Return the form to Purchasing.

Upon receipt of the Expiration Notice, Purchasing will work with the Requesting Department to review the requirements, quotations and/or contracts, select the vendor and award an order.

Cancellation

If the Requesting Department opts to cancel the order, the Expiration Notice must be signed in the section marked "Do Not Renew" and return the form to Purchasing so that the vendor can be notified.