A. Generally: This section defines small purchases and the rules governing them. These purchases can only be made by employees who have been authorized, as stated in this article.
B. Small Purchases: Pursuant to subsection 3.24.140A of the City Code, small purchases are defined below and can only be made as stated below:
1. Applicable Purchases: This subsection B applies to the following purchases:
a. Operational Supplies And Services: Contracts for operational supplies, nonprofessional services, or professional services having a total value of not more than seventy-five thousand dollars ($75,000.00).
b. Construction Related Supplies And Services: Contracts for construction-related supplies, nonprofessional services, or professional services having a total value as determined by the City Engineer (or an adjusted sum allowed by State law). This sum shall be adjusted upward each year as permitted by State law, and the City Engineer shall annually circulate to all procurement officials the sum allowable for each year.
c. Building Improvements: Contracts for construction or repair of a public building or structure (not including construction or repair at an international airport) having a total value as determined by the City Engineer (or an adjusted sum allowed by State law). This sum shall be adjusted upward each year as permitted by State law, and the City Engineer shall annually circulate to all procurement officials the sum allowable for each year.
d. Public Works: Contracts for the construction of a park or recreational facility; or a pipeline, culvert, dam, canal, or other systems for water, sewage, stormwater, or flood control (but not including the replacement or repair of existing infrastructure on private property, or construction or repair at an international airport) having a total value as determined by the City Engineer (or an adjusted sum allowed by State law). This sum shall be adjusted upward each year as permitted by State law, and the City Engineer shall annually circulate to all procurement officials the sum allowable for each year.
e. Streets: Contracts for road construction for labor, equipment, and materials having a total value as determined by the City Engineer (or an adjusted sum allowed by State law). This sum shall be adjusted upward each year as permitted by State law, and the City Engineer shall annually circulate to all procurement officials the sum allowable for each year.
2. Who May Make Purchases: Only procurement units under the direction of a procurement official shall make the purchases that are defined in this subsection B, and the procurement unit may make use of the procedures set forth below in lieu of a bid or proposal process:
a. Solicitation And Award: Purchases shall be made by soliciting no less than two (2) businesses.
(1) For purchases of supplies or nonprofessional services, the businesses shall submit telephone or written quotations to meet the City's described needs. The Award shall be made to the business offering the lowest acceptable quotation.
(2) For professional services, the City shall prepare a brief statement of needs. The City may communicate this statement to the businesses in writing or verbally, and the businesses shall submit their qualifications to meet the described needs. The Award shall be made to the business presenting the best overall qualifications and value to the City.
(3) For construction work, the businesses shall submit telephone or written quotations to meet the City's described needs, and if requested by the City, shall submit qualifications in the manner described for professional services. The Award shall be made to the qualified business submitting the lowest acceptable quotation.
b. Records: The procurement unit shall retain a record of the names of the businesses contacted, those offering quotations, and the date and amount of each quotation.
c. Manipulation Prohibited: Purchases shall not be manipulated to fall within this section. Without limitation, contracts shall not be artificially divided, such as by awarding numerous contracts to a single person for substantially similar performances, or by dividing the work required for a single project solely for purposes of making use of this article. The procurement official may impose requirements in addition to those set forth in this subsection B to provide for equitable and competitive procurement in an expeditious manner.
C. No Solicitation Process Required: Pursuant to subsection 3.24.140B of the City Code, minimal or insignificant purchases are defined below. If such purchases are made without solicitation processes, they can only be made as stated below.
1. Definition: This subsection C applies to the following purchases:
a. Purchases of operational or construction-related supplies or nonprofessional services having a total value of not more than five thousand dollars ($5,000.00).
b. Purchases of professional services having a total value of not more than twenty thousand dollars ($20,000.00), but only when such purchase is approved in writing in advance by the Department Director or other authority responsible for the services, and notice of the purchase is sent to the Chief Procurement Officer.
c. Purchases of construction work having a total value of not more than twenty thousand dollars ($20,000.00), but only when such purchase is approved in writing in advance by a procurement official having responsibilities for construction.
2. Who May Make Purchases: A Department Director or a procurement official may authorize a City employee or employees to make purchases under this subsection C, and no other person shall make these purchases. The Department Director or procurement official shall ensure that any person so authorized has been informed of and agrees to the following:
a. All purchases shall comply with the requirements of subsection C1 of this section.
b. Expenditures of City funds shall only be made for a public purpose.
c. No person shall make a purchase in violation of any ethics or conflict of interest laws (see section 53-1A-11 of this article).
d. Purchases shall be made based on the purchaser's best knowledge at the time of the City's needs and available prices, and shall be in the City's best interest.
e. Purchases shall not be manipulated to fall within this section. For example:
(1) Purchases shall not be artificially divided, such as by making several purchases of similar supplies or services at one time, by awarding numerous contracts to a single person for substantially similar performances, or by dividing the work required for a single project solely for purposes of making use of this article.
(2) Purchases shall not exceed the permitted dollar amount. Under no circumstances shall more than one payment process be used to make a single purchase.
(3) Departments should avoid making purchases of similar supplies and services under this section on a regular basis. Other purchasing arrangements can be made to accommodate reoccurring needs.
3. Required Accounting Procedures: Any department or procurement unit making purchases under this subsection C shall implement and follow accounting procedures that are acceptable to the City's Accounting Division.
4. Contract: Any purchases of professional services or construction under this subsection C shall be formalized using a contract, but such contract may state the minimum terms necessary to protect the City's interest.
D. Small Purchase Contract Modifications And Renewals: Any contract solicited under this article shall only be modified or renewed as follows:
1. Modifications: Contracts shall not be modified in excess of the maximum dollar amounts stated in this section unless this requirement is waived by the procurement official pursuant to section 53-1A-14 of this article, and the modification does not conflict with State law.
2. Renewals: Contracts shall not be renewed on a successive basis with the same party unless approved in writing by the procurement official, and written notice of such an approval shall be sent to the Chief Procurement Officer for operational supplies and services, or to the City Engineer for construction-related supplies and services.
Revised June 2022, Revision Effective July 1, 2022
2019 Compilation - Procurement