Procurement Policies and Procedures

4.0 Procurement Methods when Competitive Bidding and Public

Advertising are Not Required

4.05 Real Property Purchases

Purchases, leases, or lease-purchase agreements for real property do not require competitive bidding or public advertising in accordance with TCA 6-56-304(5). Before acquiring real property for public purposes, the City Council shall authorize the acquisition and staff shall obtain an appraisal of the property to determine fair market value, a Phase I environmental assessment to identify potential environmental contamination on the property, and a hazardous material survey, if applicable, to determine the level of existing contamination (i.e. asbestos or lead based paint) on the property or buildings. However, if the property to be acquired is a minor portion of a larger parcel for such needs as sidewalks, greenways, or road improvements, or the purchase price is equal to or less than the appraised value or cost of the appraisal, the above requirements are not necessary.

4.06 Secondhand Purchases

Purchases, leases, or lease-purchases of secondhand goods, equipment, materials, supplies, or commodities from any federal, state, or local government do not require competitive bidding or public advertising in accordance with TCA 6-56-304(6). Furthermore, TCA 12-3-1202 authorizes purchases of used or secondhand articles from private individuals or entities without competitive bidding and public advertising as long as the city documents the general range of value of the purchased item through a listing in a nationally recognized publication or through an appraisal by a licensed appraiser and the price is not more than 5% higher than the highest value of the documented range.

4.07 Purchases from Public Auctions

As authorized by TCA 12-2-421, the city may purchase new or secondhand articles, equipment, materials, supplies, and commodities from publicly advertised auctions without competitive bidding and public advertising. If items are purchased at a publicly advertised auction, the Purchasing Assistant shall prepare a report for the City Council regarding the description of what was purchased, the auction where the items were purchased, the purchase price of the items, and the vendor of the items.

4.08 Purchases from Tennessee Rehabilitative Initiative in Corrections (TRICOR)

The city is required by TCA 41-22-119 to purchase all articles needed that are produced, repackaged, assembled, warehoused, or manufactured by inmates in the Tennessee Rehabilitative Initiative in Correction (TRICOR) program if the articles are certified pursuant to procedures approved by the procurement commission as being of satisfactory quality and reasonable in price and available. Purchases of certified articles from TRICOR are exempt from competitive bidding and public advertising.

4.09 State Purchasing for the City

As authorized by TCA 12-3-1201, the city may request the state’s central procurement office to purchase goods and services for the city. When the state purchases goods and services for the city, the state will use their purchasing terms, rules, and regulations and invoice the city for the cost of those services.

4.10 City Purchases from State and Federal Contracts

TCA 12-3-1201 allows the city to purchase goods and services from contracts or price agreements entered into by the state’s central procurement office without competitive bidding and public advertising. In addition, the city may purchase goods and services from federal General Service Administration contracts or other federal open purchase contracts directly from the federal agency or through the appropriate state agency at the stated price in the contract or lower. 10