Loading...
HomeMy WebLinkAboutG05.0 Purchase Orders 1�1E- T E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT- PURCHASE ORDERS SECTION. G NUMBER: 5.0 PREPARED BY- Purchasing REVISED DATE: 04/26/2013 PAGE: 1 of 9 PURPOSE 5.1 The purpose of the Purchase Orders policy is to ensure city employees follow purchasing guidelines when purchasing needed items for the city operations. POLICY 5.2 DEPARTMENTAL PURCHASES UNDER $3,000.00 5.2.1 Any single procurement with a total value of not more than $2,999.99 can be made directly by each Department Director or the Director's authorized representative. Although quotations are not required it is recommended that price comparisons be made. It is highly recommend that the department use a City issued procurement card for the purchase. However, if a procurement card cannot be used the department should enter a request into the Finance System and obtain a purchase order number. 5.2.2 Because the administrative cost of competitive quotations would be more than the amount that could be saved by taking such quotations the competitive bidding procedure does not apply to purchases of $2,999.99 or less. City procurements are audited annually by an outside auditing firm to detect split purchase orders. It is against City Policy to have open accounts with any vendor. Department Orders MUST BE PLACED using either a City issued procurement card or a Purchase Order. To obtain a Purchase Order the department must first enter a requisition into STW. Under no circumstances should a department set up an open account with a vendor. 5.3 PURCHASE ORDERS WITH CITY POLICY REQUIREMENTS 5.3.1 Any single procurement with a total value of not less than $3,000 or more than $49,999.99 is subject to all City Purchasing Policies and Procedures approved by City Administration and the City Council. �'l3llRl�ll `Y 111CJ- 1' E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT- PURCHASE ORDERS SECTION. G NUMBER: 5.0 PREPARED BY- Purchasing REVISED DATE: 04/26/2013 PAGE: 2 of 9 5.3.2 Requirements for items having a single order total value of$3,000 to $49,999.99 must have a requisition created in Finance's STW system. The STW system routes the request to various approval points and once approved to Purchasing for processing. The purchase requisition must be filled out completely and include quantities, complete descriptions of the item(s)to be purchased, and approved budget funding account numbers to charge for the purchase. After entering the purchase request into the system, a complete set of specifications must be sent to the Purchasing Division. Although Purchasing can assist the department with specifications, it is the department's responsibility to insure that the specifications are complete and correct. 5.3.3 At least three written bids are required on any purchase with a total between $3,000 and $49,999.99. 5.4 PURCHASE ORDERS WITH STATE LAW REQUIREMENTS Any single procurement with a total value of $50,000 or more is subject to Chapter 252, Chapter 271 and other references of the Local Government Code of the State of Texas. Formal competitive bidding is required in most cases for city purchases of products or services with a value of $50,000 and above. Generally, the term formal competitive bidding is applied when a solicitation process complies with the Local Government Code. 5.5 SOLE SOURCE PURCHASES Purchases available from only one supplier are exempt from bidding requirements. The City requires certification that other reasonable sources of supply do not exist. There are many reasons a purchase might be practical from only one vendor, some examples are: 5.5.1 There is no competitive product. The goods/service is a one-of-a- kind or patented product, a copyrighted publication available from only one source or a unique item such as artwork. �'l3llRl�ll `Y 111CJ- 1' E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT- PURCHASE ORDERS SECTION. G NUMBER: 5.0 PREPARED BY- Purchasing REVISED DATE: 04/26/2013 PAGE: 3 of 9 5.5.2 The product is only available from a regulated or natural monopoly. 5.5.3 The product is a component of an existing system that is only available from one supplier. The replacement of a component or a repair part may only be available from the original supplier. 5.5.4 Sole-source purchases may also be the result of state law or ordinances that require or allow certain types of purchases to be made from a particular source. o Non-profit corporations using workers with disabilities to produce the item. State or local governments often use products made by blind or workers with disabilities. o Prison workers produce the item. The state benefits from the sale of these items. 5.6 PROCEUDRE FOR SOLE-SOURCE PURCHASES Sole-source purchases are handled the same as other purchases, with these exceptions: 5.6.1 If the requisitioning party determines that the item is a sole-source purchase, a statement must be attached to the requisition that says a sufficient number of vendors have been contacted to determine that only one practical source of supply exists or states the reasons only one source exists. 5.6.2 If the purchasing department determines that the item is a sole-source purchase, a statement to that effect must be included in the purchase file. 5.6.3 An official authorized to approve such purchases should approve all sole-source purchases. The approval should be done before a purchase order is issued. 5.6.4 After the requisition is approved, the purchase order is prepared. 5.7 COOPERATIVE/INTERLOCAL PURCHASING PROCEDURES �'l3llRl�ll `Y 111CJ- 1' E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT- PURCHASE ORDERS SECTION. G NUMBER: 5.0 PREPARED BY- Purchasing REVISED DATE: 04/26/2013 PAGE: 4 of 9 5.7.1 Before any Department makes any purchase from a Cooperative Contract, they need to contact the appropriate Buyer in Purchasing to insure appropriate guidelines/processes are being followed. 5.7.2 Current Purchasing Laws for cities allow the City to utilize other agencies contracts that have been granted through a competitive process via use of Interlocal Cooperative Purchasing Agreements. These contracts are to be used as another tool in accomplishing our mission to our citizens. They are never to be used to intentionally and knowingly avoid our competitive bid process.Any use of another entity's contract for procurement of goods/services must be discussed with Purchasing in advance of acquiring quotes. 5.7.3 The following conditions must exist before the purchase can move forward: o The City has a valid pre-existing Interlocal Cooperative Purchasing Agreement with the other city. o The item(s) wishing to be purchased are covered under the contract as originally written, not amended specifically for our needs. 5.7.4 "Published Options" if called for in the original contract, and specifically priced on the contract are allowable. If special needs by the City are not covered by the contract pricing or published options, "City" optional additions (unpublished options) will be allowed as a "Change Order", as long as they are specifically outlined on the order, and do not exceed 25% of the original contract price. 5.8 COOPERATIVE PURCHASING ORDER PROCESSING Following is an overview of the ordering processes for various cooperative purchasing programs: o This process is provided for ALL purchases utilizing a Houston- Galveston Area Council (HGAC) contract, regardless of dollar amount. �'l3llRl�ll `Y 111CJ- 1' E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT- PURCHASE ORDERS SECTION. G NUMBER: 5.0 PREPARED BY- Purchasing REVISED DATE: 04/26/2013 PAGE: 5 of 9 o The requesting department obtains a quote from contracted vendor. The quote must be itemized in accordance with the contract terms, and the quote must contain the contract number. The vendor provides a quote on an HGAC Contract Pricing Worksheet to reflect base price, published options, and unpublished options as applicable. o Department will verify contract and pricing prior to submitting quote to Buyer for approval. o The requesting department forwards a quote electronically to Buyer. o The buyer verifies the contract and pricing. o Upon Buyer approval, department prepares Agenda Memo for purchases in excess of $50,000 and routes through Purchasing for final approval (if applicable — if not, go to the next step). o Department enters a requisition into the Finance STW system. o Buyer submits order accordingly. All purchases through an HGAC contract are submitted to HGAC for order confirmation. Once HGAC order confirmation is received, the order is submitted directly to the vendor for processing. Buyer processes ALL orders to HGAC regardless of dollar threshold. 5.9 TEXAS ASSOCIATION OF SCHOOL BOARDS (TASB/BUY BOARD) This process is provided for purchases utilizing a BuyBoard contract: 5.9.1 The requesting department obtains a quote from contracted vendor. The quote is itemized in accordance with the contract terms, and the quote contains the contract number. The quote must reflect base price, published options, and unpublished options as applicable. 5.9.2 The requesting department verifies the contract and pricing prior to submitting quote to Buyer for approval. 5.9.3 The requesting department forwards the quote electronically to Buyer. 5.9.4 Buyer verifies contract and pricing. 5.9.5 Upon Buyer approval, department prepares Agenda Memo for purchases in excess of $50,000 and routes through Purchasing for final approval (if applicable — if not, go to the next step). �'l3llRl�ll `Y 111CJ- 1' E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT- PURCHASE ORDERS SECTION. G NUMBER: 5.0 PREPARED BY- Purchasing REVISED DATE: 04/26/2013 PAGE: 6 of 9 5.9.6 The requesting department enters a requisition in STW. 5.9.7 All purchases through a Buy-Board contract are submitted directly to BuyBoard by the Buyer. The Buyer monitors the system for the date the BuyBoard releases the order to the vendor for processing. 5.10 OTHER COOPERATIVE PURCHASING PROGRAMS This process is provided for purchases utilizing other cooperative purchasing program contracts, such as U.S. Communities, Department of Information Resources (DIR), Texas Multiple Award Schedule (TxMAS), The Cooperative Purchasing Network (TCPN), The Interlocal Purchasing System (TIPS), etc: 5.10.1 The requesting department obtains a quote from contracted vendor. The quote is itemized in accordance with the contract terms, and the quote must contain the contract number. 5.10.2 The requesting department verifies the contract and pricing prior to submitting quote to Buyer for approval. 5.10.3 The requesting department forwards the quote electronically to Buyer. 5.10.4 Buyer verifies the contract and pricing. 5.10.5 Upon Buyer approval, department prepares Agenda Memo for purchases in excess of $50,000 and routes through Purchasing for final approval (if applicable — if not, go to the next step). 5.10.6 The requesting department enters a requisition in STW. 5.10.7 All purchases through DIR contracts will be submitted in accordance with the contract terms AFTER order has been approved at all levels. 5.11 EMERGENCY PURCHASES �'l3llRl�ll `Y 111CJ- 1' E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT- PURCHASE ORDERS SECTION. G NUMBER: 5.0 PREPARED BY- Purchasing REVISED DATE: 04/26/2013 PAGE: 7 of 9 The purchase must qualify as an emergency purchase as defined in state law local government code chapters 252 and 271 . Generally, three broad areas can be classified as emergency purchases. 5.11.1 When a public calamity such as a hurricane or other tragedy, if it is necessary to make a purchase promptly to relieve the necessity of the citizens or to preserve the property of the City, the purchase is exempt from the competitive bidding requirements. The same is true in the case of an item necessary to preserve or protect the public health or safety of the residents of the city's jurisdiction or an item necessary because of unforeseen damage to public property. 5.11.2 When it is necessary to preserve or protect the public heath, competitive bidding requirements are waived regardless of how the conditions were brought about. State courts have said that the words "preserve" and "protect," as applied to public health, carry the idea of timely, efficient and effective action that keeps intact and unimpaired the good health of the citizens in advance of impairment. It is not necessary for the public health to be un- der immediate peril because of a public calamity before the bid exemption is put aside. In this case, the court approved repairs and improvements to a city's sewer system that were made without advertising for competitive bids. 5.11.3 If there is time to give proper notice and for an advertisement to be made, then it is not an emergency situation. 5.12 PROCEDURES FOR PLACING AN EMERGENCY ORDER DURING NORMAL WORKING HOURS 5.12.1 The initiating department notifies the purchasing office by telephone immediately with as much information as possible about the emergency purchase required. 5.12.2 A purchasing requisition is prepared in STW. 5.12.3 The purchasing or initiating department head contacts as many �'l3llRl�ll `Y 111CJ- 1' E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT- PURCHASE ORDERS SECTION. G NUMBER: 5.0 PREPARED BY- Purchasing REVISED DATE: 04/26/2013 PAGE: 8 of 9 vendors as necessary to arrange the emergency purchase. If there is not enough time to get authorization, the purchase can be completed by telephone, and the purchase order completed after the fact and delivered to the vendor. 5.12.4 Expedited delivery is requested. The person making the requisition may be required to pick up the emergency purchase from the vendor if timely delivery is not available. 5.13 PLACING AN EMERGENCY ORDER DURING EVENINGS,WEEKENDS AND HOLIDAYS When purchasing personnel is unavailable, process emergency purchases as follows.. 5.13.1 The affected department takes whatever steps are necessary to procure needed supplies, services or equipment to relieve the emergency. If possible, only those goods or services needed during the evening, weekend or holiday are procured. 5.13.2 On the first working day following the emergency, the responsible official prepares a requisition in STW. The person making the purchase must attach the invoices, bills of materials, receipts or other documents related to the purchase of the requisition. 5.13.3 The person in charge of the affected department must certify in writing on the next business day, or as soon as possible, why the purchase was necessary. 5.13.4 The City Manager or his designee must approve all emergency purchases for $15,000 and higher. 5.13.5 When approved, a purchase order number is issued by Purchasing to the requesting department to cover the purchase or, if requested, Purchasing calls the order into the vendor. 1�1E- T E A S CITY OF GRAPEVINE ADMINISTRATIVE POLICY SUBJECT- PURCHASE ORDERS SECTION. G NUMBER: 5.0 PREPARED BY- Purchasing REVISED DATE: 04/26/2013 PAGE: 9 of 9 5.13.6 The purchase requisition must contain all information (quantities, descriptions, unit pricing, total pricing, and budget account numbers). The purchase request MUST NOTE that the request was an emergency.