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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 p # 03-%3 0 Hd6A (TITLEth,) PothoiizingCa0ha.ge. a" eeefaicn. r [o e y ocax Police I^ 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. 9Y343 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.