BOARD MEETING DATE: October 5, 2007
AGENDA NO. 20

PROPOSAL:

Revise Procurement Policy and Procedure

SYNOPSIS:

This action is to revise the AQMD’s Procurement Policy and Procedure to increase the threshold amount for purchases requiring advertising for public bidding and to implement administrative changes reflecting current operations.

COMMITTEE:

Administrative, September 14, 2007, Recommended for Approval

RECOMMENDED ACTIONS:

Adopt the revised Procurement Policy and Procedure.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The AQMD’s Procurement Policy and Procedure, adopted January 9, 1998 and last amended May 4, 2007, requires all purchases in excess of $10,000 be advertised for public bidding in accordance with Section VII: Publication Requirements for Advertised Procurements. In an effort to streamline the Procurement process, reducing the time it takes to purchase lower-dollar services and commodities, and further reduce advertising expenditures, several local municipalities and government agencies were recently surveyed to determine a benchmark threshold purchase amount requiring public advertising. The results of the survey are as follows:

City of Santa Ana - $10,000
County of Los Angeles - $10,000 (Web Site Only)
City of Chino - $25,000
County of San Bernardino - $25,000
San Bernardino Associated Governments - $25,000
County of Orange - $25,000 Service Contracts/$10,000 Commodities
Metropolitan Water District - $25,000
Los Angeles DWP - $25,000
City of Riverside - $25,000
County of Riverside - $25,000
Orange County Transportation Authority - $50,000
Inland Empire Utilities Agency - $50,000
City of Long Beach - $100,000
City of Los Angeles - $100,000

Proposal

It is recommended that the AQMD’s Procurement Policy and Procedure, Sections IV, VII and VIII be amended to reflect an increase from $10,000 to $25,000 for purchases requiring advertising for public bidding. Further, provisions in these sections will be updated to reflect current administrative practices. Adoption of this proposal will accelerate the purchasing of lower-dollar value services and commodities, further streamlining the District’s Procurement process and aligning it with other local agencies benchmarks, and decrease advertising costs.

Resource Impacts

Estimated savings of 10% ($4,000) annually in advertising costs and increased purchasing throughput efficiency by eliminating the formal bid minimum 30 day open bid requirement for these lower-cost services and commodities.

Attachments (PDF 61kb)
Revised Procurement Policy and Procedure