Types of Purchases
Purchases of supplies, services and major repairs may be made in two different ways:
1. Open Market: a competitive or non-competitive purchase not made under a term contract2. Term Contract: a source of supply established for a specific period of time, i.e. fiscal year
Term contracts can be for:
A. Indefinite quantities to be ordered on an "as needed" basis
B. Contracts specifying definite quantities with deliveries extended over the contract period