PACE - Financial Policies - Procurement

PROCUREMENT

  1. PURPOSE - The purpose of this Policy is to provide a guidance for the purchase of goods and services. This guidance will comply with applicable laws, regulations, policies, and procedures, including the Camas Municipal Code (CMC). Specific procedures interpreting and implementing this Policy and relevant laws will be adopted and maintained by the Finance Department in a Purchasing Manual (“Procedures”). The Policy and its related Procedures will:
    • Require the use of competitive solicitation whenever practicable
    • Govern City staff in purchasing, procurement, and related processes
    • Provide for a system of internal control
    • Implement purchasing thresholds
    • Support fair and ethical business practices
    • Require City staff to use  prudent judgment in all aspects of City purchasing and procurement.
    • This Policy and its associated Procedures incorporate or, in the case of conflict, supersede all previously issued purchasing or procurement related policies, memos, directives, rules, or procedures.
  2. SCOPE - All departments and employees who purchase or procure goods and services on behalf of the City
  3. POLICY - It is the policy of the City to actively seek to maintain public confidence and trust in the methods it uses to purchase goods and services. The City will adopt standards that promote the proper stewardship of public funds and provide for open, transparent, and fair public contracting processes. To accomplish this, the City will use the guiding principles of integrity, accountability, equity, transparency, and inclusiveness.
  4. PRACTICE
  • Framework of Procurement Policy and Procedures 

​​​​​​​The Procurement Policy document is intended to provide overall guidance for all Camas purchasing activity. The companion documents are the Procurement Manual which provides detail guidance of City’s procurement practices and the PACE Business Process – Purchasing document provides the procedures and processes for the procurement transactions. The three documents together provide the City’s overall Procurement practice guidance.

  • Principles for all Purchases

​​​​​​​The City’s procurement policy incorporates the following principles: Ethics, Integrity, and Equity

  1. Full accountability shall be taken for all purchasing decisions and the efficient, effective, and proper expenditure of public funds based on achieving the best value for money.
  2. All purchasing practices shall comply with relevant legislation, regulations, and requirements consistent with the City’s policies and code of conduct.
  3. Purchasing is to be undertaken on a competitive basis in which all potential suppliers are treated impartially, honestly, and consistently.
  4. All processes, evaluations and decisions shall be transparent, free from bias, and fully documented in accordance with applicable policies and audit requirements.
  5. Any actual or perceived conflicts of interest are to be identified, disclosed, and appropriately managed. No employee, officer, or agent may participate in the selection, award, or administration of the contract supported by a federal award if he or she has a real or apparent conflict of interest. This conflict of interest extends beyond the individual employee, officer, or agent to include the individual’s family members, partner, or other employees.

Best Value for Money

 

The Best Value for Money is an overarching policy that governs purchasing to provide the best possible outcome for the City and its citizens. In purchasing for the City, it is most important to ensure compliance to the specifications than to obtain the lowest price. The user’s requirements, quality standards, sustainability, life cycle costing, and service benchmarks need to be considered in procurement as well.

An assessment of the best value for money outcome for any purpose should consider:

  1. All relevant whole-of-life costs and benefits, whole of life cycle costs (for goods) and whole of contract life costs for services including transaction costs associated with acquisition, delivery, distribution, as well as other costs such as but not limited to holding costs, consumables, deployment, maintenance, and disposal.
  2. The technical merits of the goods and services being offered in terms of compliance with specifications, contractual terms and conditions and any relevant methods of assuring quality.
  3. Financial viability and capacity to supply without the risk of default. (Competency of the prospective suppliers in terms of managerial and technical capabilities and compliance history).
  4. A strong element of competition in the allocation of orders or the awarding of contracts. This is achieved by obtaining enough competitive quotations wherever practicable.

Where a higher priced conforming offer is recommended, there should be clear and demonstrative benefits over and above the lowest total priced conforming offer.

  • Purchasing Authorization and Accountability

​​​​​​​​​​​​​​Department Directors are accountable for procurement through contracts and other appropriate means within their budgets. Purchases that exceed a departmental budget are not allowed.

Pursuant to RCW 42.24.080, checks presented for payment to the City Council must be documented, itemized, and audited. The Finance Director or her/his designee is designated will be responsible for the auditing. Department Directors or a designee will be responsible for ensuring invoices are presented to meet this documentation requirement in the AP program prior to sending the invoices to the Finance Department for prompt payment and audit review.

  • Level of Purchasing and Commitment Authority

​​​​​​​​​​​​​​Contracting with other public agencies or the private sector for the delivery of goods and services may provide the City with opportunities for cost containment and productivity service enhancement. As such, the City is committed to using outside resources for delivering municipal services as a key element in our continuing effort to provide effective and efficient programs while minimizing costs.

Purchasing and Contract Commitment Thresholds are defined in the City’s Procurement Manual along with the Mayor’s authority thresholds.

All purchases and contractual obligations are subject to compliance with City, State, and Federal procedures, policies, and regulations.

All purchases should be made per the Purchasing and Contract Commitment Threshold in the Procurement Manual and in accordance with applicable City, State, and Federal requirements for acquiring quotes, estimates and competitive bidding. Dollar amount thresholds include freight, handling, set-up costs, and applicable sales tax. Splitting purchases into smaller purchasing components to circumvent thresholds or applicable laws, policies, or procedures is never allowed.

Purchases and/or contracts that include Federal funding shall also comply with the Uniform Administrative Requirements, Cost Principles, and Audit requirements for Federal Awards, published under Title 2 of the Code of Federal Regulations (2 CFR 200). In circumstances where requirements differ between City, State, or Federal policy, the most restrictive of Federal, State, or City policy-level requirements will be met.

  • Purchasing Controls and Methods

​​​​​​​Primary responsibility and authority of expenditures per the adopted budget will be vested by the Mayor in the City Administrator and Department Directors or authorized designee. In addition to the primary responsibilities, the Finance Director shall exercise a secondary oversight responsibility for all budget expenditures and contractual obligations.

A purchase order system, electronic payment system, and/or purchase card program may be used for all purchases. Purchase card purchases must comply with the Purchase Card Policy and the Travel Policy. Opening retail accounts, lines of credit and other accounts in the name of the City shall not be allowed unless approved by the Finance Director or her/his designee.

In general, departments and/or department employees shall make purchases for the requirements of the City. To facilitate a sound and cost-effective purchasing operation, authorized personnel shall follow procurement policies and procedures including but not limited to, bidding and awarding contracts.

  • Emergency Purchases

​​​​​​​Emergency purchases are those made by the Mayor or authorized designee where an immediate purchase is necessary to correct a situation which would adversely affect the life, health, and safety of the citizens or cause damage to City and other property. The emergency purchase process may also be followed if waiting for Council approval would cause unnecessary, often expensive delays for a project or the City endeavor. Before proceeding, approval of the Mayor, City Administrator, or Finance Director is required.

To the greatest extent possible, procurement policies and procedures should be followed for emergency purchasing. However, in case of an emergency, the Mayor, City Administrator, Department Director or a designee may purchase directly any supplies, materials, or services necessary to alleviate the emergency. Every effort shall be made by the purchaser to contact the Mayor and City Administrator or Finance Director whether the emergency occurs during or after normal working hours. The purchaser must provide the following to the Finance Director or his/her designee within three business days: a description of the purchase and emergency as well as an explanation as to why the emergency purchase was required. If City Council approval would typically be required for a purchase, the purchase shall be reported to the City Council at the next regular meeting.

In the event the emergency purchasing is related to a natural disaster event, a Declaration of Emergency shall be considered by the City Council per State Law at the first opportunity available.

The Finance Director shall review and approve the account coding for all emergency purchases and maintain a tracking system per FEMA requirements, Emergency Management Plan, BARS and GFOA recommended practices for emergency management record keeping.

  • Purchasing Manual

​​​​​​​The Purchasing Manual is intended to provide detailed procedures for implementing this policy.  The manual contains the Level of Purchasing and Commitment Authority as well as practices for solicitation and award, exemptions, interlocal and interagency agreement considerations, contract administration and other specific requirements, approvals and guidelines.

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