HomeMy WebLinkAboutCouncil Presentation 01/18/22 Procurement Code RevisionProcurement Town Code Revision
Yiannis Kalaitzidis, Finance Director
1/18/2022
Town’s Procurement Code
•Comprehensive update on 11/07/2017
•Consistent with the 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 County
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Fiduciary Duties
Effectively provide service as efficiently as possible while:
•Maintaining public confidence in procurement process
•Ensuring fair & equitable treatment of all vendors
•Maximizing the purchasing value of public funds
•Providing a system of quality, integrity & transparency
•Obtaining goods & services in a cost-effective & responsive manner
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Issues and Improvements
Process –Effective, Efficient & Responsive
•Thresholds out of alignment for our size and growth
•Inefficient use of staff resources
•Delays in purchases
•Lack of responses for smaller purchases
•Fewer available Cooperative Contracts
•Improvements –Town Code update
•Update purchasing thresholds
•Update change order approvals
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Thresholds comparison
Name
Small
Purchases Quotes Sealed Bids
Marana $2,500 $2,501 -$24,999 $25,000
Sahuarita*$5,000 $5,001 -$50,000 $50,001
Goodyear $5,000 $5,001 -$50,000 $50,001
Oro Valley $2,500 $2,501 -$99,999 $100,000
Buckeye $5,000 $5,001 -$100,000 $100,001
Peoria $5,000 $5,001 -$100,000 $100,001
Marana -Proposed $5,000 $5,001 -$99,000 $100,000
5*Sahuarita plans to raise thresholds to $100,000 for Bids and $10,000 for small purchases
Update to Change Orders
•Current Policy –Council Approval Required
•Cumulative changes greater than $50,000
•Proposed Revision –Council Approval Required if Change order
is greater than:
•$100,000, or
•For purchases from $1 to $5 million, 10% of purchase to $250,000 max, or
•5% of purchase for purchases over $5 million
•Approvals within the above thresholds required by the Town Manager or Designee.
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Questions
Updating Thresholds
Bid Thresholds % of Pos on Bid % of Dollars on
Bid
% of POs on
quotes
% of Dollars on
quotes
$25,000 plus 20%93%50%7%
$50,000 plus 10%87%43%11%
$100,000 plus*6%83%47%16%
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•Sealed Competitive bids may consume upwards of 40-60 hours of Finance staff time over
2-4 month period
•Cooperative linking agreements consume approximately 10-20 hours of Finance staff time
•Additional hours would be spend by Dept. staff and Legal
•Using more quotes would reduce Department, Legal and Finance staff time while still
ensuring a fair, transparent and reasonable procurement process