Department of Community Development City of Shreveport Department of Community Development Bonnie Moore, Director

INTRODUCTION Every organization that purchases goods and services has standard procurement procedures. These are a group of directives that detail what can and cannot be done as well as how each activity must be undertaken. They are the rules and regulations that keep purchasing legal and appropriate. The purchasing function involves the procurement of construction, materials, supplies, equipment and services at the lowest possible cost consistent with the quality needed for the proper operation of the city departments.

PROCUREMENT PRACTICES PURPOSE BACKGROUND

PURPOSE To establish interdepartmental administrative and general guidelines for all procurement actions generated by staff.

BACKGROUND In all procurement actions, the Grantee must insure that the highest standards of integrity and fairness are observed Grantees and subgrantees will use their own procurement procedures which reflect applicable State and local laws and regulations, provided that the procurements confirm to applicable Federal law and standards (24 CFR 85.36).

Purchase Orders Petty Cash Solicitation Request Contract Awards

PURCHASE ORDERS

PURCHASE ORDERS The purchase order constitutes a contract between the city and the vendor, and as such, is a legal document (Exhibit A). It is the vendor‘s authorization to ship equipment, materials, supplies, or perform services specified thereon. The city’s purchasing division approves all purchase orders above $1000, including contracts. All items or services purchased for $1,000 or less shall be made and approved by the department head or his/her designee.

EXHIBIT A

EXHIBIT A

EXHIBIT A

PURCHASE ORDERS continued… The purchase order number must appear on the supplier’s invoice. The same commodities cannot be purchased during the same timeframe by this method (Example: Today order $600 worth of widgets and tomorrow order $700 worth of the same widgets). It is a violation of city policy to split orders to avoid using the PO process. Purchases of less than $1,000 may also be acquired by the department head on an approved credit card. The fiscal coordinator or the accounting specialist will enter all purchase orders under $1,000 in New World ERP (city’s accounting system). These POs have a shorter approval path than POs which are $1,000 or more. The fiscal coordinator or accounting specialist will give a purchase order number if an employee is picking up the merchandise. Once merchandise is received, all invoices and receiving information are to be forwarded to the fiscal unit for further processing.

PURCHASE ORDERS continued… Requests for purchases when the total purchase amount exceeds $1,000, the fiscal coordinator or accounting specialist shall request the PO electronically in New World ERP to the Purchasing Division. Once the initiating authority has approved the PO, the assigned buyer will review it for processing. The Purchasing Division will secure information and specification, if required, prepare and send for competitive quotations or formal bids (Invitation for Bid), or (Request for Proposal), or Requests for Statement of Qualification).

PETTY CASH

PETTY CASH At times, it is necessary to purchase occasional needed items of a minor nature ($25 or less for expediency). If the item is not stocked in the supply room, the department may purchase this item for cash (Exhibit B).

EXHIBIT B

PETTY CASH continued… Prior approval for the amount of the advance is required from the department’s authorizing official. When employees utilized their own funds for purchases, a receipt must be obtained from the vendor, and the receipt is to be signed by the departmental authority. Reimbursement will be made by the department’s designated official.

SOLICITATION REQUEST

SOLICITATION REQUEST When the PO total is $10,000 or more for architectural engineering services, $30,000 or more for commodities (materials, supplies, equipment, vehicles, etc.), and $150,000 or more for construction/public works projects, the purchasing division must conduct a formal IFB (Invitations for Bid) or RFS (Request for Statement of Qualification) or RFP (Request for Proposals) process, including written specifications/requirements. The department must initiate the Solicitation Request Form (Exhibit C) to start the process.

EXHIBIT C

SOLICITATION REQUEST continued… The specifications should adequately and completely describe the item required or work to be done and outline any specific provisions which the Grantee will consider in evaluating the bid. Once the solicitation request is complete, it should be delivered to the Fair Share office for review. The Fair Share Program is the plan that the city has adopted for small economically disadvantaged (S/DBEs) business concerns. Subsequent to the approval by the Fair Share Representative, it should be submitted to the Chief Administrative Officer or the Mayor for approval

FAIRSHARE

CONTRACT AWARDS

CONTRACT AWARDS A contract is a legally binding agreement between two or more parties and its contents reflect the parties’ mutual obligations to one another. Contracts shall be awarded to the responsible and responsive bidder whose bid is the most economical for the purpose intended according to the criteria designated in the Invitation for Bid. Awards for Requests for Proposals shall be made to the responsible and responsive offeror whose proposal is determined, in writing, to be the most advantageous to the Grantee, considering the factors set forth in the proposal. Awards for Architectural/Engineering Services shall be made according to the city ordinance for A/E services.

CONTRACT AWARDS continued… A control number for advertising must be obtained from the Purchasing Office Specialist before placing newspaper advertisements. The request is to be e-mailed along with the general ledger account number that will be charged for the advertisement. Upon receipt of the signed contract documents from the successful bidder, the contract will be entered into the city’s tracking system. The department head will prepare an Executive Summary and contract routing form (Exhibit D) for submittal to the Chief Administrative Officer, along with three copies of the contract.

EXHIBIT D

CONTRACT AWARDS continued… Departments in the approval path will approve contracts and approve the purchase order. The purchasing agent may sign all contracts when the total amount is $10,000 or less. The Mayor signs all contracts over $10,000. Before releasing the signed contract, the purchasing agent will match the signed contract documents with the purchase order to ensure that funds have been encumbered to cover the cost of the contract. The contract will be sent to vendor via email, fax or regular mail.