Procurement Policies and Procedures

2.0 Procurement Thresholds and Payment Methods

2.06 Multi-year Contracts

According to TCA 12-3-305, contracts for certain materials, supplies, and services may be extended by the Purchasing Assistant for multiple years, not to exceed five years and without any changes in price, if the extension is in the city’s best interest and the materials, supplies, and services are being provided in a satisfactory manner.

2.07 Tax Exempt Forms

Most city purchases are exempt from state and local taxes. It is the responsibility of the purchaser to ensure sales taxes are not paid on city purchases. The Finance Department has tax exempt forms and the city’s FEIN number. Any sales taxes paid by the city on purchases that should have been tax exempt is the responsibility of the employee to pay.

2.08 Use of City Credit Cards

Purchases made through the city’s credit cards should be infrequent and used primarily for city business and travel related expenses such as reserving hotel rooms, paying membership dues, renting equipment, and paying for certain Internet purchases. Normal purchasing procedures shall apply when using the city’s credit cards. The credit card is simply a payment method. Under no circumstances shall the city’s credit card be used for personal purchases, even to be reimbursed later by the employee.

2.09 Use of Vendor Accounts

Purchases made using established vendor accounts at such local businesses as Lowes, Food City, Ingles, Tractor Supply, Auto Zone, and Harbor Freight are allowed as long as a receipt is returned to the Finance Department with a budget code and a legible employee signature.

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