HomeMy WebLinkAboutCouncil Presentation 10/10/2017 - Procurement CodeProcurement CodeSTUDY SESSION – OCTOBER 10, 20171
ABA MODEL PROCUREMENT CODE• American Bar Association (ABA) 2000 Model Procurement Code for State and Local Governments• Adopted in whole or in part by the state of Arizona and many municipalities in Arizona and around the country2
ABA MODEL PROCUREMENT CODEABA Model Procurement Code provides:– Statutory principles & policy guidance for managing & controlling procurement– Administrative & judicial remedies for resolution of controversies– A set of ethical standards governing public & private participants in the procurement process3
SIGNIFICANT PROPOSED CHANGES4• Procurement Organization/Authority• Ethics• Small/Disadvantaged Businesses• Bid Protests/Debarment & Suspension• Small Purchase Amounts
PROCUREMENT ORGANIZATION/AUTHORITY5• Current - Town Council approval: – When required by state law or town code– Funds for purchase not in budget • Proposed - Town Council approval: – When required by state law or town code– Purchase is over $50,000 & not in budget– Purchase exceeds budgeted amount by $50,000– Change orders that exceed $50,000 individually or cumulatively
PROCUREMENT ORGANIZATION/AUTHORITY• Current - Finance Director serves as purchasing director & directs & controls all purchases for the town; no specific mention of Town Manager authority• Proposed – Town Manager or designee authorized to approve:– Any purchase up to $50,000– Any purchase authorized by budget and not more than $50,000 higher than budgeted amount– Change orders totaling $50,000 or less, individually or cumulatively6
ETHICS• Current – No ethical standards included• Proposed – Incorporates a set of ethical standards, including prohibitions on:– Attempting to or influencing any town employee to violate the procurement code – Preparing specifications or plans to receive any direct pecuniary benefit from the use of the plans or specifications – Offering or giving a gratuity to a town employee, or a town employee accepting a gratuity, in connection with any procurement decision– Disclosing or using confidential information for anticipated pecuniary benefit7
SMALL/DISADVANTAGED BUSINESSES• Current – No provisions included• Proposed – Includes flexible language regarding policies and related efforts:– Where feasible, provide appropriate staff to assist small and disadvantaged businesses in learning how to do business with the town– Give special publicity to procurement procedures and issue special publications designed to assist small and disadvantaged businesses in learning how to do business with the town– Compile, maintain, and make available source lists of small and disadvantaged businesses for the purpose of encouraging procurement from small and disadvantaged businesses– Include small and disadvantaged businesses on solicitation mailing lists, where appropriate8
BID PROTESTS/DEBARMENT & SUSPENSION• Current – No provisions included• Proposed – Comprehensive regulations addressing timelines and administrative procedures– Bid protest must be received within 10 calendar days after issuance of notice of intent to award contract; purchasing director authorized to resolve– Purchasing director authorized to debar (up to 3 years) or suspend (up to 3 months) contractor for variety of reasons, including violation of the ethical standards included in the new code9
SMALL PURCHASE AMOUNTS10• Current– Purchases under $1,000 - no process required– Purchases greater than $1,000 but less than $10,000 –informal bid process required, 3 quotes solicited– Purchases greater than $10,000 – formal bid process required• Proposed– Purchases under $2,500 - no process required; purchasing director to establish operational procedures – Purchases greater than $2,500 but less than $25,000 –informal bid process required, 3 quotes solicited– Purchases greater than $25,000 – formal bid process required
PROCUREMENT CODEQuestions?11