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Consider and approve revisions to the County Purchasing and Contracting Policy Manual; and Authorize the County Administrator, or designee, to approve technical changes as necessary
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Department of General Services recommends that the Board of Supervisors:
1. Consider and approve revisions to the County Purchasing and Contracting Policy Manual (Attachment A final revised version and Attachment A-1 redlined copy showing revisions); and
2. Authorize the County Administrator, or designee, to approve technical changes as necessary.
SUMMARY:
The Board of Supervisors approved the current version of the County Purchasing and Contracting Policy Manual (PCM) in July 2004. Due to changes in business processes, technology, and best practices in the procurement industry that have occurred since the PCM was adopted, staff recommended that a comprehensive review of the County’s purchasing operations would be beneficial to identify areas for improvement. In 2015, the Board approved funding to support this recommendation and the Institute for Public Procurement was retained to conduct a comprehensive review and assessment of the County’s purchasing policies, procedures, and business practices. The assessment recommendations have been considered in the revised PCM.
FINANCIAL IMPACT:
The cost of preparing revisions to the PCM have been absorbed by the operating budgets of departments involved in the revision and review process. There is no direct County cost to approve revisions to the PCM.
DISCUSSION:
The intent of the proposed revisions to the PCM is to update the purchasing process, document contracting and purchasing policies accurately and efficiently for County departments, promote and improve departmental accountability in the purchasing function, and provide expanded options for procuring goods and services.
The proposed PCM revisions conform with the purchasing and bidding requirements of Chapter 22, Purchasing and Bidding, of the Solano County Code (Attachment D). The revisions do not require any changes in the County Code. The proposed revisions include several minor technical corrections, including the following changes:
1. Modifications to comply with legal requirements and Board policies including the Uniform Public Construction Cost Accounting Act (Sections 1.4.4 and 1.10.0)
2. Added language for solicitation requirements for grant funded services or commodities (Section 1.1.15)
3. Modifications to remove references to paper processes and add electronic/automated processes, including electronic requisitioning (Section 1.2.0)
4. Added language to support performance-based contracting (Sections 1.7.2 and 1.8.12)
5. Increased purchasing authority thresholds (Sections 1.1.6, 1.1.9, and 1.4.6)
In addition, live links have been inserted throughout the revised PCM to facilitate navigation between portions of the document and the enumeration has been updated to conform with the template established for the County’s Administrative Manual.
Furthermore, to support improved efficiencies relative to the delegated authority to approve purchasing transactions, the recommended PCM revisions include increases to the purchasing authority thresholds as shown in Attachment B.
As part of the revision process, County staff conducted a survey of benchmark counties to provide insight regarding procurement authority levels and formal bidding thresholds. The survey results of the benchmark counties are summarized in Attachment C. Section 25502.5 and Section 31000 of California Government Code allows the County Administrator of a county comparable to the size of Solano County to authorize contracts which do not exceed $100,000 for professional services. In general, the proposed revisions to the purchasing authority thresholds is lower than those allowed by current law, but the recommended revisions will more closely align County purchasing authority thresholds with benchmark counties and provide improved efficiencies in procuring goods and services.
If the proposed PCM revisions are approved by the Board, staff will provide appropriate information and training to County departments and vendors doing business with the County. The revised PCM will also be incorporated into the Financial Management Section of the County’s Administrative Manual.
ALTERNATIVES:
1. The Board could elect not to approve revisions to the Purchasing and Contracting Policy Manual (PCM). This is not recommended since the last comprehensive PCM update was approved by the Board in 2004.
2. The Board could elect not to modify or exclude any proposed revision within the PCM. This action is not recommended since the proposed revisions are based on the recommendations made by the Institute for Public Procurement and are supported by staff, including the County’s Performance Improvement Committee.
OTHER AGENCY INVOLVEMENT:
Representatives of the County Administrator’s Office, Auditor/Controller’s Office, County Counsel, and the County’s Performance Improvement Committee participated in the development of the proposed revisions to the County Purchasing and Contracting Policy Manual.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION