City of Norfolk Office of the Purchasing Agent September 21, 2009

Overview of the purchasing process Objectives Overview of the purchasing process for goods and services Techniques Procedures

Mission and Function of the Purchasing Agent Purchasing supports the purchase of goods and services for all City departments and agencies Protects the financial integrity of the City in all procurement transactions

Procedures to Obtain Goods and Services Procurements less than $5K (with the exception of information technology hardware, software and services) Decentralized Purchase order Price Agreements Additional Details: City departments must obtain the lowest cost goods or services Three (3) quotes required for goods and services between 1K and 5K Purchases under $1K require a written or telephone records, the name of the businesses submitting quotations and the amounts must be recorded.

Procurements less than $5K City departments and agencies can purchase directly Verify City Storehouse availability Decentralized purchase orders (POs) Procurement cards Delivery orders (DOs) against existing master agreements Requires competition to the extent possible Most transactions completed with 3 offers

Procedures to Obtain Goods and Services Procurements over $5K to $15K Decentralized Purchase order Master Agreements Contracts Requires soliciting three (3) valid sources for quotations Procurements over $15K to $50K Decentralized Purchase orders Requires soliciting three (3) valid sources for written quotations

Procedures to Obtain Goods and Services Procurements over $50K Requires formal solicitation such as a competitive sealed bid or request for proposals Coordinate and obtain approvals from department executives and Office of the City Manager Centralized Purchase Orders (PC) Master Agreements Contracts

Procurements over $5K to $50K These requirements involve management and executive support City departments and agencies must submit requisition Definitive Specifications Suggested Sources Drawings Solicitation Methods Oral Request for Quotations Informal Bids Informal RFP

Procurements over $50K These requirements involve management and executive support City departments and agencies must submit Requisition or a Memorandum Definitive Specifications Suggested Sources Evaluation Factors Award Provisions

Master Agreements Used for repetitive purchases and/or service requirements Requires competition Include: Recommended vendors Description of goods and services Estimated annual dollar amount Delivery requirements

User Responsibilities Follow-up on all late orders Address problems with Purchasing and Vendor Inspect all goods and services for damages and shortages Compare what was ordered to what was delivered If Goods and services are not satisfactory notify Purchasing and Vendor regarding the dissemination of solicitations for participation of MBE, WOB and SB vendors in the procurement process. whenever possible, when contacting vendor(s) for pricing or product information (e.g. purchases under $1,000.00) or when preparing requisitions to be sent to Purchasing Department for processing.

Sole Source Procurements Sec 33.1-40 Sole Source Procurement Upon a determination in writing that there is only one (1) source practicably available for that which is procured, a contract may be negotiated and awarded to that source. Any sole source procurement which otherwise would have required competitive sealed bidding, competitive sealed proposals, or competitive negotiations shall be reported to the City council on a monthly basis. regarding the dissemination of solicitations for participation of MBE, WOB and SB vendors in the procurement process. whenever possible, when contacting vendor(s) for pricing or product information (e.g. purchases under $1,000.00) or when preparing requisitions to be sent to Purchasing Department for processing.

Sole Source Procurements Sec 33.1-40 Sole Source Procurement Procedures. A. Sole source procurement shall be made by the appropriate procuring agent only. B. Determination. Must be certified in writing by the director of the department requesting the procurement. (Note all computer hardware, software and services shall be approved in advance by the Director of Information Technology or his designated representative.) regarding the dissemination of solicitations for participation of MBE, WOB and SB vendors in the procurement process. whenever possible, when contacting vendor(s) for pricing or product information (e.g. purchases under $1,000.00) or when preparing requisitions to be sent to Purchasing Department for processing.

Sole Source Procurements Sec 33.1-40 Sole Source Procurement Procedures. C. Reports: Reports of procurements which would have required competitive sealed bidding, sealed proposals or competitive negotiations if sources were available be forwarded by the procuring agent to the City Manager. D. Information reporting requirements: Description of procurement, departments involved, contractor, amount and reason for sole source. regarding the dissemination of solicitations for participation of MBE, WOB and SB vendors in the procurement process. whenever possible, when contacting vendor(s) for pricing or product information (e.g. purchases under $1,000.00) or when preparing requisitions to be sent to Purchasing Department for processing.

EMERGENCY PURCHASES City Code Chapter 33.1, Sec. 78. Emergency purchases. In the event of a threat to public health, welfare, or safety, a contract may be awarded without competitive sealed bidding, competitive sealed proposals or competitive negotiation. Such procurement, however, shall be made with such competition as is practicable under the circumstances. An emergency exists when there is an actual or potential disruption related to an essential service or other circumstances when supplies or services are needed for immediate use in work, which may vitally affect the public health, welfare, or safety

Code of Conduct Conflict of Interest The acceptance of gifts, gratuities, and invitations to events from vendors is prohibited. Conflict of Interest City cannot buy goods or services from a fellow employee or the immediate family of a fellow employee even if the arrangement is a good deal financially for the City and the employees or family relation is not making a profit. If you have the remotest thought that some action may be a conflict, stop and seek an opinion from the City Attorney and the Purchasing Agent.

YOUR QUESTIONS? CAV Coordinate Anticipate Verify