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HomeMy WebLinkAboutG04.0 City Annual Price/Agreement Contracts �'l3llRl�ll `Y 111CJ- 1' E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT: CITY ANNUAL PRICE SECTION: G NUMBER: 4.0 AGREEMENTS/CONTRACT PREPARED BY: Purchasing REVISED DATE: 04/26/2013 PAGE: 1 of 3 PURPOSE 4.1 The City has established by the competitive bidding process a number of annual price agreements with various vendors on a wide variety of products that allow departments to purchase items without having to go through an additional competitive bidding procedure. These contracts provide the following benefits: o Lower administrative costs due to placing one annual order rather than a number of smaller orders. o Pricing that remains firm for the contract period. o A wide range of products available at lower costs. POLICY 4.2 Items purchased through the City contracts may be purchased directly from the vendor. All vendors, items and pricing under contract are available from purchasing. 4.3 COOPERATIVE PURCHASING 4.3.1 Through cooperative purchasing, the City can save time and money. Cooperative purchasing occurs when two or more entities (state, federal or local governments) coordinate some or all of their purchasing efforts to the mutual benefit of all participants in the purchasing process. 4.3.2 There are a number of levels of cooperative purchasing, from very occasional minor cooperation in a purchase, to a level where all purchases are done through the cooperation of two or more cities called Interlocal Agreements. There are also several types of cooperative purchases, ranging from one city "riding"on the contract of another city to splitting the purchasing duties equally. 4.3.3 Cooperative purchasing may be accomplished through several methods. The first method involves one city performing all the tasks necessary to make a purchase with other governments purchasing �'l3llRl�ll `Y 111CJ- 1' E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT: CITY ANNUAL PRICE SECTION: G NUMBER: 4.0 AGREEMENTS/CONTRACT PREPARED BY: Purchasing REVISED DATE: 04/26/2013 PAGE: 2 of 3 off of the first city's contracts. A second method involves cities sharing the purchasing responsibilities. Following is a discussion of the most frequently used types of cooperative purchasing. 4.3.4 Piggy-Backing In piggy-backing, one city creates a contract and allows other governments to use it. Both governments should protect themselves by establishing an agreement in writing, even when the arrangement is informal. The agreement should specify the duties and responsibilities of each party. There must be a clause in the contract about this arrangement and vendors must agree to it. 4.3.5 Joint Purchases Two or more cities join to purchase one or more goods or services jointly. This may involve each city handling part of the administrative chores or agreeing to have one of the cities handling the transactions under the guidance of the others. If the arrangement is long-term, rotate the roles periodically to share equally the purchas- ing duties. All parties to a purchase must agree to the specifications, so that a mutually satisfactory good or service is ordered. 4.3.6 Buying from State Contracts Under the provisions of Local Government Code Sections 271 .081 - 271 .083, the Comptroller of Public Accounts offers the Cooperative Purchasing Program and manages state contracts. Buying from state contracts is a form of piggybacking. Under this program, and after complying with certain requirements, a local government may participate in all automated state contracts. �'l3llRl�ll `Y 111CJ- 1' E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT: CITY ANNUAL PRICE SECTION: G NUMBER: 4.0 AGREEMENTS/CONTRACT PREPARED BY: Purchasing REVISED DATE: 04/26/2013 PAGE: 3 of 3 4.4 PROCUREMENTS REQUIRING CONTRACT SIGNATURES The City Council has authorized all contracts to be executed by the City Manager or by the Mayor (City Secretary or Mayor Pro Tem, respectively, if the primary signatory is unable to sign). In certain instances, the City Manager has delegated this authority to certain staff members. For those contracts executed by the City Manager, the following policy will be followed: o All contracts will be reviewed and initialed by the Purchasing Agent prior to final signature. o All contracts in excess of $5,000 must be signed by the City Manager (or assistant if so designated by the City Manager). o All contracts for less than $5,000 maybe executed by the appropriate Department Director.