Memorandum

City of Lawrence

Finance Department

TO:	David L. Corliss, City Manager
FROM:	Alan D. Landis, Purchasing Specialist
DATE:	October 20, 2011
RE:	Changes in Purchasing Procedures

The current purchasing procedures for the City of Lawrence were adopted by Resolution

6299 on April 17, 2001.  Changes to incorporate Federal grant procedures were proposed in November 2004, but not adopted by resolution.  Recently additional policies and procedures related to FTA funded procurements have been added throughout the procedures.  These changes are summarized below.  The proposed changes to the procedures are intended to update the procedures to conform to current or desired practices. 

Please find attached the copy of the Purchasing Procedures.  All proposed changes and additions to the procedures are highlighted in yellow in the Purchasing Procedures manual.  The significant additions are listed below:

FTA and Grant Related Changes

o	Grant purchases to include clauses required by federal statutes.
o	Departments and subgrantees shall maintain procurement records including percent of Federal funds used to purchase an asset.
o	When selecting a vendor, consideration given to past performance, compliance with licensing requirements and financial and technical resources.
o	Protests must be submitted in writing no later than three (3) working days after award, unless longer time allowed as a consideration of the grant.  The City shall respond within five (5) working days and the decision made by the City Manager shall be final.
o	Departments shall make available to the awarding agency technical specifications of procurements for review.
o	The City and subgrantees will maintain a system to ensure performance in accordance with the terms of the contract.
o	The City and subgrantee’s contract must contain provisions of the OMB Common Rule stating the City will follow their own purchasing policy.
o	Equipment currently valued less than $5,000.00 may be retained, sold or disposed of with no obligation to the awarding agency.
o	Equipment currently valued in at $5,000.00 or more may be retained or sold and the awarding agency has a right to their percentage of the grant provided. Other changes related to complying with FTA purchasing guidelines are in several locations.

Section	Description
2.3	Purchase order information – distribution of PO copies
		This change deals with the distribution of the PO copies taken from administration policy AP-36 and revised.
2.3.2	Year end POs
		This was added to allow POs for less than $1000 at the end of the year to encumber funds.
2.4	Rewards Points
		This concerns rewards points vendors offered to the City.
2.5	Project exemption certificates
		This is a new procedure on applying for a Project Exemption Certificate.
2.6	Change orders
		This deals with small changes in large projects that may appear to be much larger when totaled and requesting a change order to a PO. This was taken from administrative policy AP49.
4.2.2	Set bid date
		Changed wording.
4.2.7	Local preference
		Local preference policy.
4.2.8	Tie bids
		This is the procedures on what to do when we receive tie bids.
4.3.1.b	Contractor/construction type service limits increased
		Contractor/construction type service POs increased to $2,500 without three quotes.
4.4.2.a	VISA limits
		VISA limits may be increased for some positions.
4.4.2.C	Purchasing card information – approval for payment
		This is a new procedure explaining how to pay credit card bills electronically.
4.4.3	Petty cash information – approval information
		Increased amount in petty cash fund.  Added approval information from administrative policy AP-35
4.4.4	On-line purchasing
		New procedures for on-line purchasing.
4.4.5	Invoice payment for purchases less than $1000 if vendor does not take VISA
		In cases where vendors do not take the City’s purchasing card payment form an invoice will be accepted.
4.4.6	End of year purchasing
		Procedures added for year end purchasing.
4.6	Sole source guidelines
		This is new in the procedures although the same as the City has been using with the exception of wording about the on line sole source form.
5	Contracting for professional services
		The RFQ Guidelines are new procedures.  The RFP Guidelines are the same as the City has been using.  This procedure is Administrative Policy AP-91.
5.3	Architectural and Engineering Design Fee Guidelines
		Design fee guidelines for professional services were approved by the City Commission in early 2011.

Appendix A   Equal opportunity agreement

Appendix B   RFQ task checklist

Appendix C   RFQ task completion checklist

Appendix D   RFP task checklist

Appendix E   RFP task completion checklist

Appendix F   RFP score sheet

Appendix G   Required Federal Contract Clauses

The purpose for revising the Purchasing Procedures is to have one source for the City’s purchasing guidelines.  The guidelines incorporated in the new procedures are the Sole Source Guidelines, RFQ Guidelines, RFP Guidelines, and Project Exemption Certificate information.  The forms for these guidelines have been added as appendices.

The following administrative policies have been incorporated or revised and incorporated in the purchasing procedures. 

AP-35, Petty Cash

AP-36, Purchasing

AP-48, The Employment of Professional Services

AP-49, Purchase and Contracts Exceeding $15,000

AP-70, Bid Opening Procedures

AP-80, Environmental Procurement

AP-91, RFP Guidelines

AP 99, Standards for Obtaining Digital Files for RFPs

Recommendation Action:

Adopt recommended purchasing policy.

cc:	Cynthia Wagner	Ed Mullins
	Diane Stoddard	Diane Trybom
	Jonathan Douglass	Bobbie Walthall