HomeMy WebLinkAbout1997-06-23 97-299 ORDER^OUNCE. ACTION
Date: June 23, 1997 Item No. 97-299
ItansSubject: Amendment to City Proanemem Pofiry
Responsible Department: Purchae ng
Courmereary:
It has been 17 years since the limit for Field Purchase Orders has changal. In 1980 the limit was
increased Gom $65 00 to $100.00. On lasmary 10, 1994 the City Council adopted a completely revised
and updated Procurement Policy but did not change the lisrdt fm field Purchase Orders. The attached
mono to the Finance Committee outlines the rationale to now increase the limit to $200.00.
This change was reviewed by the Finance Commhtee on fare 16, 1997 and reheated to Council with a
secovunmdetion for approval.
Departure
Managers Comments: ffa osv4 6,%o//
`"� City Mmmger�I
-
Associatedlnfonnstion: Memo to Finance Committee.
Budget Approval:
Finance Director
Lege) Approval'.
city Solicitor yu
Introduced For:
h Passage_ FirstReading _Referral
9]-299
Aceipred to Commence Saldacci June 23, 1997
CITY OF BANGOR
(TITLE.) i®rbtr, Amenkn OfCstyofBaagor Pracmement Policy
By tM Cily CoumA of W City ofBaayur:
ORDERED,
THAT the City of Bangor Procurement Poficy Article 3. Section 101. Paragraph 0.
Small Purchases vesting up to $100.00 shall be amended as follows:
Section }100 Small Purchases (4) Saudi purchases coating up to 5200.00. Purchases
of up to $200.00 may use a single selection, after confect, based on reasonable price, stock
availability and delivery requirements.
Mevaver the figure $100.00 appears it is changed to $200.00.
IN CITY COUNCIL
June 23. I997
Passed
F
ETTY 8&(
9]-299
O RRER
Title, Amendment
of
City
of
Bangor
Procurement
Policy
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9]-299
Memorandum
To:
Famous Committee
From.-
DncidN Pellegriw,, PurchmangAgenr
Dare:
D&IW1997
Subject:
Amerrdrrenr oJCiry PurcMn'ng Reguhtiorzs
On May 12, 1980 the City Council approved Council Order 175 AH Earths
amendment of the City's Purchasing regulations. In thatcouracil order the purchase linty for a
Field Purchase Order (FPO) was raised from$65,00 to $100.00. The Field Purchase Outer(copy
attached) is used by authorized employees to purchase supply items without checking prices
(although it is encouraged). The formal language in our PracvremeM Policy reads:
Small Purchases costing up to $100.00. Prinhma of up to $100.00 may use a
single selection, after contact, based on reasonable price, stock availability
and delivery requirements.
At a recent meeting at Public Works I was responded to review the $100 OO limit
and strongly encouraged to increase it to a least $200.00. The Public Works staff noted
numerous instances where the $100.00limit was burdensome and impacted their ability to get the
supplies they needed- especially during off business hour.
I have reviewed than request and since the the limit should be raised. The raze of
inflation from 1980 to the present is approximately 100%- 9&2% to 103.8% reporting upon the
Consumer Price Index used and the publication. If we adryrt the aurent limit of $100.00 to the
CPI it will double to$20000. The bureau is the FPO limit will also reduce the annual volume of
regular purchaas orders that flow through the Pentamation system. About 20% of approximately
3,600 purchase orders are between $10000 and $200 00.
I have also reviewed the other Procurement Policy limits of $1,000.00 (requiring
fomml requests for quotes) and $5,000.00 (requiring formal bids) and I do not recommend my
changes Nthese limits. See attached summary of the City's Procurement Policy that was adopted
January 1% 1994.
By this memorandum l request the the City Procure runt Policy Article 3 Source
Selection and Contract Formation, Section 104. Small Purchases, Paragraph 4, Small
Purchases costing up to $100.00 shall be amended as follows:
Section 104 Small Purchases: (4) Small purchases costing up to $200.00.
Purchases of up m $200.00 may use single selection, after contaM, based on
reasonable price, stock availability and delivery requirements
Whenever the figure $100.00 appears it is changed to $200.00.