Tools
Public Institution: Forward Purchasing Commitment Template
- Implement
- Public Institution
- Purchasing Commitment
- Self-Operated
- Vendors
Forward Purchasing Commitment
As vendor-institution relationships grow, the parties may want to form a forward purchasing commitment, in which an institution agrees in advance to purchase products over a longer period (e.g., a year or growing season). These commitments can be used for many different products, and can be made with all vendor types, including farmers and food hubs. Like standing purchase orders, they involve consistent, long-term purchasing, but they require earlier coordination to help shape production plans.
Because forward commitments require significant planning and coordination, they are best pursued within strong, established relationships where both parties understand their long-term capacity and obligations.
Keep In Mind:
Additional information about alternative language and how to complete each provision of this tool can be found on the relevant Implementation Stage in the Guide.
Title
[Commitment Tracking Number]
[Date]
Introduction
FORWARD PURCHASE ORDER BETWEEN [INSTITUTION] & [VENDOR]
| [Institution]
[Address] [Phone/Email]
[Designated Contact] [Phone/Email] |
[Vendor]
[Address] [Phone/Email]
[Designated Contact] [Phone/Email] |
Production Collaboration
[Vendor] will produce [insert product] for [Institution] from [insert duration of commitment]. [Institution] is committed to purchasing [insert product] as set forth in this commitment form.
Product, Quality & Pricing
[Institution] will purchase [insert set dollar amount]dollars per installment of the standing purchase order with [Vendor]. Installments will be comprised of [insert type and quality of product]. Individual pricing of product(s) will adhere to the following:
- [Insert pricing per unit amount/range/standard for each product included]
| Product | Quality & Description | Pricing Per Unit |
|---|---|---|
| [Insert product number if available or name of product] | [Insert quality requirement and any additional description] | [Insert set price/range/standard] |
Commitment Duration
[Institution] will purchase the specified amount and product(s) listed on this commitment form for [insert duration of commitment]. Deliveries will occur [insert recurring order interval]. There will be [number of deliveries] deliveries beginning [insert start date] and ending [insert end date].
Payment
Payment from [Institution] to [Vendor] is due on the date of delivery for each installment. Payment should be delivered in the form of [insert form of payment] addressed to [Vendor]. [If applicable, address advance payment arrangement.]
Delivery
[Vendor’s] deliveries will be made on [insert day] at [insert time] every [insert recurring interval]. If an installment is delayed or will not be fulfilled, [Vendor] will notify [Institution] at the earliest opportunity. [*If there are excluded installments, list the dates where there will be no delivery.]
Cancellation Policy
[Institution] and [Vendor] reserve the right to cancel this order at any time without cost or obligation for any items not released against this order.
Other
- Return Policy: [Institution] may return any produce that is received in a condition not fit for consumption.
- Price Guarantee: The amount of the standing purchase order is the agreed total price and shall not be exceeded without advance written consent from the [Institution’s designated contact] identified on the order.
By signing below, parties agree to the terms of this agreement.
| ___________________________________ Signature of Institution Designated Contact_________________________________ Printed Name of Designated Contact___________________________________ Date |
_________________________________ Signature of Vendor Designated Contact_______________________________ Printed Name of Vendor Designated Contact ___________________________________ Date |