HomeMy WebLinkAbout2003-10-27 03-343 ORDERItem No.03-363
Date: October 271 2003
Item/guliject: ORDER -Authorrsing Resislons to the City's Procurement Policy
Responsible Department: Purchasing
Commentary:
On OctOher 8, 203 the Rnance Committee rammed recommended changes and recisions to the Cdy's
Procurement Policy. A tletailed summary of the recommended changes and mNslons ro the policy Is
outlined in the attached memo dated! October 2, 2003. A wpy of the complete Procurement Miry is also
attached with all of the new items highlighted in red and underlined and all of the deleted items crossed!
out. Upon completion of their raMew the Finance Committee referred the policy revisions t0 the City
Council wit a recommendation for approval.
The Legal Department has reviewed and apprwcN the proposed changes for the Procurement Policy.
De rtmeM Heatl
Managees Comments:
CIty Manager
Associated Information: October 2, 2003 memo regarding changes to the City Procurement Policy,
Revised Procurement Policy with documented revisions
OtY Solicitor
Introdurstl for
_ Passage
_ First Reading Page _ of
Referral
03-363
Assignedto Councilor 2 Ie October 27, 2003
EE
CITY OF BANGOR
OME.) Order Authorizing Changes and Revisions to the City Prucuremeut Policy
Ay the Cdy Caartll of th pry a Aangm:
ORDERED, TNT
The proposed changes and revisions to the City Procurement policy as outlined in the attached
document are hereby authorized. The Purchasing Agent is further authod2ed to make such
other minor changes as are necessary to reflect current policy and practices and to incorporate
flee into a revisetl poflW, a copy of which shall be provided to the members of the City
Countll.
October
c tober COOdfi0
ex 37, 3003
Metiam YWe and Sacaoded for
Passage
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P..igneEb Councibr
03-363
Memorandum
To: Finance Committee Members
Prom: David N. Pellegrino, Purchasing Agent
Date: 10/22103
Re: Changes W Procurement Policy
As we have discussed during recent Finance Committee meetings, it is time
to review aur current Procurement Policy and make recommendations for
changes that will provide more efficiency in our current operations and for
changes [hat reflect recent advances in technology.
Our current Procurement Policy was adopted by the Bangor City Council on
January 10, 1994 and revised June 1997. This policy was adapted from the
Model Procurement Ordinance for Local Governments by the American Bar
Association and the National Institute of Governmental Purchasing (NIGP).
The following are recommended changes and modifications to the current
policy and recommended changes in our procurement practices.
1. Increase the formal bid limit from $5.000 to $10,000. Purchasesover
$10,000 require competitive sealed bidding whereby an invitation for
bids is issued and advertised. All bids received are opened publicly
and a record of the bids received is made available to the public. Bid
award recommendations must be reviewed and approved by the
Finance Committee and by the City Council if the award is over
$100,000.
(The increase In the bid Iimlt from $5,000 to 10,000 will reduce Ne
number of formal bids Issued by approximately twenty percent. We
have Issued about 250 formal bitl requests since September 2000 and
57 of these were less than $10,000.)
03-343
Cribber 22, 2003
2. Increase the formal quote limn from $1,000 to$2,000. Purchases over
$2,000 and under $10,000 will require a formal quote that includes a
written request for quotes. These purchases will not require
advertising and award is made to the business offering the lowest
acceptable quotation
3. Increase the informal quote limit from $200 to $500. Purchases over
$500 and less than $2,000 require adequate and reasonable price
competition with written records adequate to document the competition
obtained.
4. Increase the limit for small purchases from $200 to $500. Purchases
under $500 may use single selection, after contact, based upon
determination of reasonable price, stock availability and delivery
requirements.
(This guideline does not apply W the purchase of Hems under City
supply or blanket contmds.)
5. Add the following policy language that will allow Electronic Auction
Bidding:
When it is determined that electronic bidding is in the best interest
of the City, bidders may be required to submit their bid prices
eMdronicaltyin an auction style manner. When Ne City uses
electronic bidding, the bid opening will last tore previously
disclosed period of time during which the bidders'pdces will be
made public. Bidders shall have the opportunity to modify their bid
prices for the duration of the time period established forbid opening
Electronic auction bidding may be used for almost any procurement but has
been the most successful with commodities that have very uniform
specifications such as rock salt, chemicals, de-icing fluids, traffic paint, sign
posts and the like. This method of procurement may be handled "in -house -
or by outside vendors that specialize in this service.
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Ocbbsr 22, 2003
6. Introduce a pilot procurement card program in one or two departments.
Procurement cards have been in use for the previous ten years throughout
the country and have been very prevalent country wide and in the State of
Maine forthe previous five years. Procurement cards have proven to be a
very effective in reducing paperwork, improving accountability of items
purchased and providing a much mom convenient method for small
purchases. Prommment cards Careen credit cards') are issued to individual
employees and may be programmed with limits for individual Purchases,
items purchased approved vendors and daily weekly and monthly purchase
amounts. If approved, the City would probably piggyback with the State of
Maine procurement card contract that is currently out for proposals. If
proven effective the program will be extended to all City departments. The
City currently uses 5,000 to 6,000 field pumhase orders per year for small
purchases.
7. Delegation to Other City Officials. Added language is in bold:
With the approval of the City Manager, the Purchasing Agent may.
delegate authority to purchase certain supplies, services,
construction items or used vehicles and equipment to other City
officials, it such delegation is deemed necessary for the effective
procurement of those dams. Procurement guidelines may be
waived for the purchase of used vehicles or equipment after
coordination with the Purchasing Agent. Written
documentation consistent with purchasing guidelines must be
available for all such purchases. Purchases of used vehicles or
equipment In excess of $10,000 must be reported to the Finance
Committee.
When approved, the above the changes will be incorporated into the City's
Procurement Policy. Other minor updates that reflect current policy or
practices may also be incorporated Into the revised policy. All such
changes will be clearly noted in the revised policy for final approval by the
City Council.