BIDDING PARAMETERS Purchases of $3,000 or Less If a purchase is $3,000 or less, no quotes are required, but are recommended when possible. The Department verifies that the purchase does not fall under component, separate, or sequential purchasing, as they are illegal. Please refer to the definitions in the Purchasing Policy. The PL may attach the following to the requisition: • Quotes, if applicable. • Other documentation that supports the purchase, if applicable.
HUB Requirements - Purchases Between $3,000 and $50,000 Under State law, before the City plans to make purchases between $3,000 and $50,000 with a vendor in a fiscal year, the City must meet the Historically Underutilized Business (HUB) purchasing requirements. These purchases require at least three informal written quotes/bids/proposals, depending on the estimated annual spend. The City shall contact at least two vendors from the State’s current certified HUB list (Appendix — HUB Search). If the listing fails to identify a HUB vendor in the counties in which the City is situated (Tarrant and Denton), the City is exempt from this requirement. If HUB vendors are unresponsive, the Department has met the HUB requirement by notifying them and giving them the opportunity to submit. The City retains all submitted quotes/bids/proposals and email correspondence with the HUB vendors for auditing purposes. Some exceptions to the HUB Purchasing Requirements include the following: • Vendor Contract covered by an Interlocal Agreement • Vendor Contract covered by a Cooperative Agreement • Formal competitive sealed bid/proposal resulting in a City contract • Professional Services Exemption • Sole Source Exemption • Emergency Purchase Exemption • Other Exemptions as defined in State Law If the purchase is procured under Competitive Purchasing Requirements, the HUB purchasing requirements are not applicable to the purchase. See the Competitive Purchasing Requirements – Purchases of more than $50,000 section of the Playbook for documentation requirements. City Council minutes are not required for estimated annual spends under $50,000.
Purchases Between $3,000 and less than $25,000 An annual estimated spend with a vendor of more than $3,000, but less than $25,000 requires at least three informal written quotes and is subject to HUB requirements. The Department is responsible for the selection of the vendor and completion of the Bid Tabulation form. The Department attaches the following to the requisition: • HUB search results • If HUBs exist, documentation that the Department contacted HUB vendors • All written quotes received • Completed Bid Tabulation form, including the reason why the Department selected the vendor • Other documentation that supports the purchase, if applicable
Purchases of $25,000 to $50,000 An annual estimated spend with a vendor of $25,000 to $50,000 requires written bids/proposals and is subject to HUB requirements. A committee evaluates the bids/proposals received and recommends the vendor award, based on predetermined criteria, to the Department Director for final approval. No committee is required if the bid is evaluated on lowest price only. The process consists of the following steps: 1. The Department creates and submits to Finance the specifications of the product/scope of services sought.
14
CITY OF SOUTHLAKE | P U R C H A S I N G P L A Y B O O K
