Last Time Buy Approval Memo Template
A last time buy commits real money against a forecast that may be wrong for ten years. This memo template records the notice, quantity logic, alternatives, risks and approvals in one document so the decision can be reviewed later.
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Last Time Buy Approval Memo Template
Last Time Buy Approval Memo
Company: Acme Defense Electronics Inc. Program: Radar Signal Processor Rev C Date: 2026-10-20
1. Part and notice
Manufacturer: Example Semiconductor Corp. Part number: XC7A100T-1FGG484C End-of-life notice date: 2026-09-15 Last order deadline: 2026-12-31
2. Request
We request approval to purchase 27200 units for an estimated total of $150,000, covering 10 years of program support.
3. Quantity rationale
Annual demand of 2,400 units, plus 3 percent attrition and a 10 percent forecast buffer, for 10 years of production and sustainment.
4. Alternatives considered
Form-fit-function substitute evaluated and rejected due to timing differences. Redesign estimated at $185,000 and 14 months. Authorized aftermarket source not available.
5. Risks and mitigations
Shelf life and moisture sensitivity: store in dry nitrogen cabinet and track date codes. Counterfeit risk: buy only from the manufacturer or authorized distributor.
6. Sourcing and storage plan
| Item | Plan | Owner |
|---|---|---|
| Source | Manufacturer or authorized distributor only | |
| Storage | Controlled environment, date code tracking | |
| Requalification | Incoming inspection and test on delivery | |
| Review cycle | Annual demand and inventory review |
Approvals
Starting point for internal use, not legal or financial advice. Adjust sections to your obsolescence management plan, customer requirements and approval authority matrix. Replace the sample part and values with your own.
Obsolescence decisions tied to your ERP
Optional: discuss linking approvals, quotes and inventory to the same part record.
Optional. The tool and every export work without this. No spam.
How to use it
Fill in the program, part number, manufacturer, notice date and last order deadline, then the recommended quantity and cost. Write the quantity rationale in plain steps: demand, years, attrition and buffer. List the alternatives you considered and why you rejected them. Preview the document, then export to PDF or Word and route for signatures. Pair it with the last time buy calculator to produce the numbers.
What a good memo contains
Reviewers want to see the trigger, the cost, the logic and the risk. The trigger is the manufacturer's product change or end-of-life notice with dates. The logic is how quantity ties to program demand, spares and repair. The risk list should cover shelf life, moisture sensitivity, storage conditions and counterfeit exposure. Obsolescence management plans under DMSMS practices usually also require records of other resolution options.
- Attach the manufacturer notice and a quote.
- State which demand forecast the quantity came from.
- Name an owner for annual inventory review.
Sourcing and traceability
Buying from the original manufacturer or an authorized distributor keeps the supply chain traceable and reduces counterfeit risk, which matters under counterfeit prevention rules in defense contracts. Keep certificates of conformance, lot and date codes with the receipt. If a broker is the only option, document the extra inspection and test you will apply, and have quality approve the plan before the purchase.
Common mistakes
Common mistakes include approving a quantity without a source for the demand, forgetting repair and spares, and leaving storage and shelf life unowned. Another is skipping the redesign comparison, so management cannot see the alternative. Also revisit the memo yearly: if the program is extended or cancelled, the surplus or shortfall changes the decision for the next obsolete part.
Frequently Asked Questions
Who should approve a last time buy?
Typically the program manager, component or supply chain engineering, quality and finance, with contracts involved if the cost is chargeable to a customer. Follow your own approval authority matrix.
What should the memo attach?
Attach the manufacturer end-of-life notice, the supplier quote, the demand forecast and any alternative analysis. These make the decision auditable and speed up later reviews.
How often should the quantity be reviewed?
Review at least yearly against actual consumption and program schedule, and any time the program scope changes. Surplus or shortfall data feeds the next decision.
Is this document a contract?
No. It is an internal decision record. Purchase terms belong in your purchase order and supplier agreement. Have legal or contracts review anything with customer or supplier commitments.
If obsolescence notices and approvals are tracked in email and files, Netray can discuss a private search and workflow layer connected to your ERP.
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