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10.03.01 Unified Purchasing Procedures CITY OF BOYNTON BEACH ADMINISTRATIVE POLICY MANUAL CHAPTER: 10 Purchasing POLICY NO: 10.03.01 SECTION: 03 Purchase Requisitions PAGE: Page 1 of 5 SUBJECT: 01 Unified Purchasing Procedures PURPOSE: This policy establishes unified purchasing procedures to outline the requirements for departments submitting purchase requisitions which will be processed into purchase orders, and direct payment requisitions. POLICY: Purchase requisitions submitted to Procurement Services for the procurement of all budgeted goods and services below the mandatory bid amount of $25,000 for non-construction, and $75,000 for construction must follow the quotation and approval guidelines stated below. Procurement requirements shall not be artificially divided to circumvent the approval process. Personal Property, Commodities, and Services (Non-Construction) -Bid Threshold $25,000 Total Purchase Amount Requisition Process Approval Level Total Purchase Purchase Type Less than $500 No Quotation Department Head* Requisition/P.O. $500 to $1,999 Three Verbal Quotes Department Head* Requisition/P.O. $2,000 to $4,999 Three Written Quotes Department Head* Requisition/P.O. $5,000 to $9,999 Three Written Quotes City Manager* Requisition/P.O. $10,000 to $24,999 Three Written Quotes City Manager* Requisition/P.O $25,000 & over Formal Bid City Commission Formal Bid/Contract Construction Projects -Bid Threshold $75,000 Total Purchase Amount Requisition Process Approval Level Total Purchase Purchase Type Less than $ 500 No Quotation Department Director* Requisition/P.O. $500 to $1,999 Three Verbal Quotes Department Director* Requisition/P.O. $2,000 to $4,999 Three Written Quotes Department Director* Requisition/P.O. $5,000 to $9,999 Three Written Quotes City Manager* Requisition/P.O. $10,000 to $74,999 Three Written Quotes City Manager Requisition/P.O $75,000 or above Formal Bid Process Commission Formal Bid/Contract *Or Designee Policy 10.03.01 – Unified Purchasing Procedures Page 1 of 4 Policy 10.03.01 – Unified Purchasing Procedures Page 2 of 4 In lieu of quotations, a requesting department can utilize other governmental contracts such as: State Contract, SNAPS, RESPECT, PRIDE, piggy-back, etc. If another governmental unit contract is used, it is up to the originating department to obtain a copy of the bid and award documents to support the awarded vendors, award dates, and pricing. This documentation will be transmitted to Procurement Services to support the electronically processed purchase requisition. PROCEDURE: Specific Forms for Purchase Requisition and Direct Payment Requisition (Form 121): Departments must use specific forms for a purchase requisition, or a direct payment requisition. The purchase requisition will be electronically processed through the Sunguard H.T.E. Purchasing/Inventory system. The direct payment requisition can be located on the sharedrive at S:\CityTemplates\Finance\Blank121Form. 1. Direct Payment Requisition (Form 121) Departments must submit all direct payment requestrs to Finance on a direct payment requisition providing the amount to be paid, the vendor, allocated fund source, and signed by the Department Director, or designee. The supporting invoices must be attached to the requisition. Sales tax will not be paid on direct payments. The City is tax exempt and it is up to the purchaser to provide the tax-exempt information to the vendor for direct payment purchases. A direct payment requisition is used as a check request for a direct payment to a vendor/payee for the following type of purchases (this list is not all inclusive): a. Subscriptions b. Advertising c. Insurance payment to carriers d. Temporary personnel costs e. Medical examinations f. Utility payments g. Postage h. Minor emergency repairs i. Legal fees and settlements j. Witness & recording fees k. Petty cash reimbursements l. Park & Recreation Activities (i.e., instructors, transportation) m. Travel reimbursement and training advances /reimbursements n. Tuition reimbursement o. Refunds (i.e., water overpayments) On a normal workweek, direct payment requisitions that are properly completed and processed by departments and delivered to Finance by 9:00 a.m. Wednesday will have a check available on Friday. 2. Requisition/Purchase Order Process Policy 10.03.01 – Unified Purchasing Procedures Page 3 of 4 All purchase requisitions are submitted electronically to Procurement Services for processing into a purchase order. Purchase requisitions less than $500 require no quotation, requisitions that total $500 to $1,999 require three verbal quotes, and requisitions that total $2,000 to $24,999 (non-construction) , and $2,000 to $74,999 (construction).require three written quotes. Comparative pricing is for each line item on the purchase requisition. Purchase requisitions totaling $25,000 or more (non-construction), and $75,000 or more (construction projects) require City Commission approval before processing. a. Purchase Requisitions less than $ 500 All vendor purchase requisitions that total less than $500 may be electronically processed directly to Procurement Services or paid for using the Purchasing Card. No quotes are required for these purchase requisitions. b. Purchase Requisitions totaling between $500 to $1,999. All Purchase Requisitions totaling from $500 to $1,999 will require three verbal quotes. The verbal quotes will be shown within the Quotes on the electronic processing of the purchase requisition. c. Purchase Requisition totaling $2,000 to $ 24,999 (non-construction). These Purchase Requisitions will require three written quotes to be provided to Procurement Services to support the purchase. If the Purchase Requisition totals $5,000 to $9,999 the purchase requisition, along with supporting written quotes will be sent to the City Manager, or designee, for approval prior to the purchase order being issued. d. Purchase Requisition over $25,000 (non-construction) and $75,000 (construction) Any Purchase Requisitions over $25,000 (non-construction) and $75,000 (construction) will require a formal bid process and the approval of the bid by the City Commission prior to being issued as a purchase order. If the purchase requisition is related to a State Contract, CO-OP bids, GSA bids, "piggy-backing" contracts of other governmental entities, or other purchasing processes (SNAPS, PRIDE, RESPECT, etc.) still require approval by the City Commission before the purchase order can be issued. EXCEPTION – if the capital outlay item was approved by Commission as an adopted budget line-item through the budgetary process it can be purchased through an acceptable governmental contract without further Commission action. After all procedures have been met the ultimate responsibility for issuing a purchase order rests with the Procurement Services. The issuance of the purchase order creates a legal obligation of the City with a vendor. Procurement Services has the responsibility for investigating alternate vendors and prices. If another vendor can supply the same or equivalent goods, at lower prices Procurement Policy 10.03.01 – Unified Purchasing Procedures Page 4 of 4 Services has the authority to change the vendor in order to secure the best value for the City. Any change in vendor will be communicated to the originating department. Departments should allow sufficient time for processing all Requisitions. • Procurement can process complete and accurate Requisitions under $5,000 within and average of three (3) working days depending on workload and resolution of questions, if any. Procurement requires additional time to process Requisitions $5,000 and over that need additional levels of approval and vendor insurance where necessary. PREPARED BY: Procurement Services EFFECTIVE DATE: October 1, 2002 REVISION DATE: August 7, 2008 _____________________ Kurt Bressner City Manager