HomeMy WebLinkAbout2011-11-02 Powerpoint - 12bProcurement Policy and Limits
Prepared by: Mary Horger, Purchasing Supervisor
November 2, 2011
Current Limits & Policy (per Section 1522 of Municipal Code)
Current Council Reporting Limit:
>$5,000 to $10,000
Current Required Council Award:
>$10,000
Current Change Order Limit for Public Construction Only (Policy Res. 13):
10% of the original contract or $5,000, whichever is greater
No Change Order Limit for Professional Service Contracts and Material & Equipment Purchases.
Policy and Limits have not been changed since 1991
Limits appear to be below industry standards
Lower limits require more detailed reporting and increase workload for Staff and Council
Purchase Order Analysis
*M=Materials, P=Professional Services, C=Construction-type, FIP=Façade Improvement Program Grant
Current ASR Processing Time
*Based on 2-6 hours x total # of POs
Broader Prospective
CA Association of Public Purchasing Officers Survey
-Average threshold of 154 agencies excluding large outliers was $44,633
California Uniform Public Construction Cost Account Act
-Public projects of $30,000 (increasing to $45,000 in January) or
less may be performed by negotiated contract or by P.O.
-Public projects of $175,000 or less may be let to contract by informal procedures
All Purchases Require Council Approved Appropriations
The bidding process will not be compromised.
All Purchases are reported in the Accounts Payable monthly disbursement agenda summary report submitted to Council and available online and at the City for public inspection.
Other Comparable Cities
Review of Consent Calendar Purchase Related ASRs
City Clerk reviewed Council records from the past two years (FY 09/10 & 10/11)
No purchasing related ASRs were pulled below the recommend limits
Recommendations
Current Council Reporting Limit: >$5,000 to $10,000
Proposed Change: >$20,000 to $30,000
Current Required Council Award: >$10,000
Proposed Change: >$30,000
Current Change Order Limit for Public Construction Only:
10% of the original contract or $5,000, whichever greater
Proposed Change: Apply the 10%/$5,000 limit to professional and maintenance services; 10% only limit to supply & equipment purchases
