City of Santa Clarita - CSMFO

1 POLICY city of Santa Clarita TABLE OF CONTENTS SECTION DESCRIPTION PAGE INTRODUCTION 1 SECTION GENERAL PROVISIONS 2 SECTION SOLICITATION PROCESSES 4 SECTION SUPPLIES/SERVICES/EQUIPMENT 9 SECTION PROFESSIONAL SERVICES 12 SECTION PUBLIC PROJECTS 14 SECTION PURCHASE ORDER CHANGES 17 SECTION SUPPLIER RELATIONS 19 SECTION POLICY EXCEPTIONS 22 SECTION GRATUITIES 24 SECTION SURPLUS/TRANSFER OF PROPERTY 25 SECTION PURCHASING WITH SPECIAL FUNDS 26 SECTION SUSTAINBLE PURCHASING 27 APPENDIX A PURCHASING STANDARDS OF CONDUCT APPENDIX B SUMMARY OF RESOLUTIONS AFFECTING PROCUREMENT APPENDIX C RECYCLED PRODUCT PROCUREMENT POLICY RESOLUTION 93-09 APPENDIX D PROTECTION OF TROPICAL TIMBER RESOLUTION 91-91 APPENDIX E STATE OF CALIFORNIA CO-OPERATIVE PURCHASING RESOLUTION 89-95 APPENDIX F city COUNCIL AGENDA ACTION AUTHORIZING CO-OPERATIVE AND PIGGY BACK PURCHASING JULY 11.

2 1995 APPENDIX G SUPPORT OF Santa Clarita BUSINESS ORDINANCE 04-12 AND ORDINANCE 09-6 APPENDIX H ENVIRONMENTALLY PREFERABLE PURCHASING (EPP) PROGRAM RESOLUTION 05-103 Purchasing Policy June 2009 Change 6 Page 1 INTRODUCTION Purchasing has prepared two documents to assist customers with procurement issues. The first is the Purchasing Policy Manual. The policy manual is designed for use by managers and supervisors directing or approving purchases. Derived from the municipal code, policy provides the processes to be used in making purchases to ensure compliance with the code.

3 In the policy manual you will find a summary of the requirements of the code and the steps necessary to satisfy those requirements. The last document is a quick reference guide to the requirements for establishing a purchase order. This does not take the place of a good understanding of purchasing procedures but will help serve as a good starting point. In addition to these printed documents there are several references available online through Rnet. You are encouraged to review this site periodically for more detailed information. Purchasing Policy June 2009 Change 6 Page 2 SECTION GENERAL PROVISIONS I.

4 SCOPE All provisions listed here apply to all purchases in general. As used in this policy, unless the purchase order or contract specifically indicates otherwise: A. " city Clerk" shall mean the person responsible for the city 's procurement program; B. "Purchasing Agent" shall mean the person responsible for the day to day operations of the purchasing function; C. Any purchase order or contract contrary to the provisions of this policy shall be null and void. II. PROCUREMENT AUTHORITY A. All purchases of $2,000 and over, require a purchase order processed by Purchasing as stated in this policy, before an order is placed, unless otherwise authorized by city Council.

5 A purchase order is not required for professional services up to $2,000; however, a written contract is required. B. The city Manager may waive this policy as necessary by recommendation to, and approval from, the city Council with the exception of those provisions applying to public works. III. PROCUREMENT RESPONSIBILITY It shall be the responsibility of the Purchasing Agent to: A. Procure quality supplies and services at the least expense to the city in a timely fashion; B. Ensure full and open competition as required in this policy and discourage uniform or collusive bidding; C.

6 Examine each estimate and requisition and revise it as necessary to meet statutes and policy; D. Prepare and maintain vendor files; E. Delegate the responsibilities of the Purchasing Agent as deemed necessary. Purchasing Policy June 2009 Change 6 Page 3 IV. GENERAL A. All purchases must be authorized by the Director (or designee) of the requesting department. B. Splitting of purchases to circumvent thresholds is prohibited. C. All listed thresholds include taxes, packing, shipping and handling. D. Competition is required for all purchases of $2,000 or more.

7 E. Council approval is required for all expenditures over $50,000 except public projects where Council approval is required when the amount exceeds $125,000. Purchasing Policy June 2009 Change 6 Page 4 SECTION SOLICITATION PROCESSES I. SCOPE An appropriate competitive procurement process is required for all purchases of $2,000 and over. This section will cover the various solicitation processes and their use. Public project procurement is governed by State Codes and is discussed separately. Although not mandatory, Purchasing will make available sample templates for the various types of solicitations for use by staff.

8 II. SOLICITATIONS A solicitation is the document by which the city s procurement needs and the format for responding is conveyed to vendors. The intended result of a solicitation is a procurement contract (including purchase orders and written contracts) and the solicitation must contain a process for determining the elements of a contract. There are various types of solicitations to cover different procurement situations. The most commonly used city forms are: Request for Quote (RFQ), Invitation for Bid (IFB) and Request for Proposal (RFP). The type of solicitation does NOT determine the method of successful vendor selection.

9 With the exception of public projects, quotes and bids may be awarded on a basis other than lowest cost and for other than true professional services, RFPs may be awarded based on the lowest cost. The method of successful vendor selection needs to be specified in the solicitation. A. Request for Quote The RFQ process is used for the procurement of material, equipment and general services costing $20,000 or less where the needs of the city may be adequately defined. B. Invitation for Bid The IFB process is used for the procurement of material, equipment and general services costing over $20,000 where the needs of the city may be adequately defined and for public projects over $30,000.

10 C. Request for Proposal The RFP process is used for the procurement of professional services or material, equipment and general services where the city seeks proposed solutions from the marketplace to achieve goals and objectives stated in the RFP. Purchasing Policy June 2009 Change 6 Page 5 III. REQUEST FOR QUOTE A Request for Quote (RFQ) is a simplified solicitation that can be as short as one page or more than 100 pages. The format is dependent on the circumstances of the procurement and the needs of the user. A. The RFQ must be in writing as well as any response.