Procurement Policies and Procedures

2.0 Procurement Thresholds and Payment Methods

This section delineates the thresholds for procurement activities as mandated by City Code Title 1, Chapter

4 (City Manager) 1-90 to 1-93 and TCA 12-3-1212. Various exemptions apply including, but not limited to, professional services, sole source items, emergency purchases, real property purchases, secondhand purchases, public auction purchases, purchases from state and federal contracts, and purchases from certain cooperative purchasing agreements.

2.01 Purchases Under $10,000

Purchases that are expected to be under $10,000 must obtain a purchase order through the city’s electronic purchase order system. The best possible price and quality shall be sought. Any resulting contract or agreement shall be developed by the Purchasing Assistant with a copy to the Finance Department and City Manager’s Office.

2.02 Purchases of $10,000 to $25,000

Purchases, leases, or lease-purchase agreements that are expected to exceed 40% of and up to the state maximum ($25,000) must obtain at least three competitive written quotes via written quotations, email, or facsimile without competitive bidding or public advertising as referenced by TCA 12-3-1212, 6-56-305, and City Code 1-92. A written no-bid quote from a vendor is an acceptable quote. To obtain comparable quotes, a standardized written form distributed to each vendor is preferable. The lowest and most responsive quote that meets specifications will receive the award. Any resulting contract or agreement shall be developed by the Purchasing Assistant with a copy to the Finance Department and City Manager’s Office.

2.03 Purchases of $25,000 and Over (Requires Competitive Bidding and Public Advertising)

Purchases, leases, or lease-purchase agreements that are expected to exceed $25,000 shall require competitive bidding and public advertising. Written bid or proposal specifications and invitation to bid documents are to be prepared and publicly advertised in a newspaper of general circulation not less than 14 days prior to the opening of the bids. Other advertisement locations include the city’s website, direct solicitations to known vendors, Vendor Registry website, and Demand Star website. All responses are to be opened in a public bid opening. See Section 3 for the procurement methods and details when competitive bidding and public advertising are required.

The bids and any resulting contract or agreement with the selected vendor shall be reviewed by the City Attorney and then considered for approval by the City Council in a public meeting. However, in accordance with the City Charter, Article IX, (City Manager) Section 2(h), if any contract is not awarded to the lowest bidder, the reason for such action shall be given in writing to the City Council.

2.04 Prohibition of Subdividing Purchases to Avoid Competitive Bidding

No purchases shall be subdivided to avoid the requirements of competitive bidding.

2.05 Inspection of Purchases for Quality Assurance

Upon delivery of purchased equipment, supplies, materials, documents, vehicles, and services, it is incumbent on the department head or designee to inspect the equipment, supplies, materials, documents, vehicles, and services to determine if the delivered items met all established specifications and are in good order prior to payment. If not, the department head or designee shall coordinate with the Finance Department to ensure the invoice is not processed for payment and the damaged item sent back to the vendor unpaid.

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