XL EaglePO (Purchase Order)
PO stands for Purchase Order. A purchase order is the government's written offer to buy specific supplies or services, usually under simplified acquisition procedures. It lists items, price, delivery and terms.
A PO becomes a binding contract when the vendor accepts it in writing or starts the work. Federal POs often come after a request for quote and are a common first contract for small businesses.
Why it matters to a small contractor
Your first federal job is likely to be a PO. Read every line before you accept, because accepting locks you into the price, date and clauses attached.
Example
After a quote request, a forest office issues a PO for $18,500 to repair a gravel access road. The contractor signs and returns it, then schedules the crew.
PO: common questions
Do I have to sign a purchase order?
Not always. Some POs say acceptance happens when you start work. Signing back is the cleaner proof.
Is a PO the same as a contract?
Once accepted, yes. It carries the same legal weight as any federal contract.
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