Purchasing and Contract Management Office

For more information on how to build better renewal requisitions please see attached.

For more information on how to run the renewal report search guide, please visit: here.

Definition: What Is a Standing-Order PO? 

A standing-order purchase order is created to allow repeated purchases or services from the same vendor over a set period of time, without having to issue a new PO for each transaction. Standing orders typically have:

• A maximum dollar amount

• A defined time period (e.g., fiscal year)

• No itemized list of specific quantities

• Ongoing purchases billed against the PO throughout the year

Standing orders are meant for variable, unpredictable, or frequently recurring purchases. However, they should be used only when a regular PO or catalog order is not feasible.

Reducing the Use of Standing-Order Purchase Orders (POs) 

Standing-order POs should be used only when absolutely necessary. Overuse creates administrative burden and increases the risk of billing errors. Many standing orders are created simply because staff “default” to them without verifying requirements. Run and review iBuy renewal reports to prevent unnecessary standing-order requests. 

 To streamline procurement operations at UIUC, departments should adhere to the following guidelines to reduce reliance on standing-order POs:

1. Evaluate Whether a Standing Order Is Truly Required

Before creating or renewing a standing-order PO, confirm whether: 

• The vendor provides variable goods/services throughout the year 

• The individual procurement needs are difficult to estimate based on unknown quantities and pricing. 

If the answer is no, a regular purchase requisition form, PO is more appropriate.

2. Replace Standing Orders with Itemized or One-Time POs Whenever Possible 

Many purchases that have historically used standing orders—such as supplies, equipment parts, or predictable services—can be handled with: 

• One-time, itemized POs 

• Renewed annual POs with defined quantities 

• iBuy catalog orders 

Using these alternatives reduces the administrative oversight needed for standing orders. 

3. Review Historical Usage Before Requesting a New Standing Order

Departments should check: 

• Previous order quantities 

• Frequency of purchases 

• Actual spend compared to the standing order amount 

If usage was low, convert the standing order to a regular PO with defined quantities. 

For renewal buyer assignments please see attached.

It is essential that departments submit requisitions in a timely manner to allow sufficient time to process Invitation for Bids (IFBs) and Request for Proposals (RFPs), prepare recommendations for the Board of Trustees, if necessary, and obtain necessary approvals to issue an annual order by July 1, 2026.

FY27 Renewal Submission Deadlines 

Failure to submit requisitions by the required deadlines will result in requisitions not being completed prior to July 1, 2026. 

Impacts of late software submissions:  

• Intellectual property/ownership issues 

• Vendor’s access to student data 

• Delayed submission could result in losing access to current software access 

• Compliance and legal exposure 

• Less favorable terms – inability to amend an expired contract 

Things to be Considered:  

• What information are you entering into the software 

• Who has access/who is using it 

• Credit card processing 

• Non-Public University data 

• Low dollar doesn’t always mean low risk

For more information on software and electronic services please visit the additional resources below.