Procurement Policies and Procedures

4.0 Procurement Methods when Competitive Bidding and Public

Advertising are Not Required

This section delineates purchases that do not require competitive bidding or public advertising. The maximum expenditure that can be made under city charter rules without City Council approval is $25,000.

4.01 Request for Qualifications (RFQ) for Legal Services, Fiscal Agent, Financial Advisor,

Insurance Producers, and Other Professional Services

When procuring legal, fiscal agent, financial advisor, insurance producers, or other professional services from groups of high ethical standards, TCA 12-3-1209 and 12-3-103 require the basis of award be of recognized competency and integrity as opposed to competitive solicitation. The resulting contract or agreement shall be in writing, specifying the services to be rendered, cost, and covered expenses, reviewed by the City Attorney, and then considered for approval by the City Council in a public meeting.

In addition, in accordance with TCA 29-20-407, competitive bidding and public advertising are not required when purchasing insurance through a plan authorized and approved by any organization of governmental entities representing cities and counties.

4.02 Recurring Purchases

Purchases of goods and services used regularly by the city such as utility services, waste disposal services, security monitoring services, maintenance agreements, advertising, and the like shall be exempt from competitive bidding and public advertising and purchased from established and reliable sources at the best possible price. Any resulting contract or agreement shall be developed by the Purchasing Assistant with a copy to the Finance Department and City Manager’s Office

4.03 Sole Source Items

If a good or service has a single source of supply or is a unique proprietary product as evidenced by a letter from the vendor, competitive bidding and public advertising are not required but normal purchasing procedures apply. When sole source items are purchased, TCA 6-56-304 (2) requires a record of each sole source item or proprietary product be made by the corresponding department head and Purchasing Assistant. The record shall specify the amount paid, the items purchased, and from what company the purchase was made.

4.04 Emergency Purchases

Purchases or leases of any supplies, materials, or equipment for immediate delivery in actual emergencies arising from unforeseen causes including delays by contractors, delays in transportation, and unanticipated volume of work do not require competitive bidding or public advertising. When emergency items are purchased, TCA 6-56-304 (3) requires a record of each emergency purchase be made by the corresponding department head and Purchasing Assistant. The record shall specify the amount paid, the items purchased, from what company the purchase was made, and the nature of the emergency. A report on all emergency purchases with the above information shall be made as soon as possible to City Council and City Manager.

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