HomeMy WebLinkAboutStudy Session Packet 10/17/2011STUDY SESSION AGENDA
CITY COUNCIL MEETING
CITY OF WHEAT RIDGE, COLORADO
7500 W. 291h Ave.
Wheat Ridge CO
October 17. 2011
6:30p.m.
Individuals with disabilities are encouraged to participate in all public meetings
sponsored by the City of Wheat Ridge. Call Heather Geyer, Public Information
Officer at 303-235-2826 at least one week in advance of a meeting if you are
interested in participating and need inclusion assistance.
APPROVAL OF AGENDA
.1. Staff Report( s)
a) Run-off Election/Election Commission
2. City Purchasing Policy
~ A
,... r-City of
~Wheat&!ge ~ADMINISTRATIVE SERVICES
TO:
THROUGH:
FROM:
DATE:
SUBJECT:
Memorandum
Mayor and City Council (\ L
Patrick Goff, City Manager W
Heather Geyer, Administrative Services Director
October 10,2011 (For October 17,2011 Study Session)
Proposed Changes to Purchasing Acquisition Limits and Signature Approval
Levels
The purpose of this memorandum is to outline recommendations to the City's purchasing
guidelines, specifically the following three areas: 1) purchasing card single transaction limit, 2)
purchasing acquisition limits for goods, and 3) signature approval levels. Staff is recommending
changes to the City's purchasing guidelines in an effort to improve the City's responsiveness to
both internal and external customers and to increase efficiencies in staff, with the overall goal of
making the City more business-friendly with our purchasing practices.
BACKGROUND
The recommended changes below are aligned with the efforts the City has been making
to create a least restrictive environment in our purchasing practices. The recommended
changes outlined in this memorandum will help accomplish the following:
• Streamline the purchasing and accounting processes for the purchase and payment of
goods and services
• Increase the revenue share in the purchasing card program
• Reduce the number of purchase orders processed
• Provide quicker payment to vendors
• Use less paper, a positive effort to go "green"
By increasing the speed at which vendor payments can be made, eliminating redundancy in the
requisition and check cutting processes, and using purchasing cards instead of cutting checks,
staff can focus on implementing new best practices such as environmentally preferable
purchasing (EPP) which aligns the sustainability goals of cities to the purchasing function. The
recommended changes will also assist staff in maintaining our current staffing level of 1.5 FTEs
in the purchasing program.
Table 1, Attachment 1, provides a breakdown of our current purchasing acquisition approval
limits in the categories of goods, services, construction and the purchasing card. Limits are
outlined in the categories of discretionary (small dollar), informal quotes, formal bids, and
Purchasing Approval Limits
October 10, 20111
Page 2
formal proposals. Each proposed recommendation is outlined below and on Table 2 in
Attachment 1.
Recommendation #1: Increase Purchasing Card Limit from $1,000 to $3,000
Currently, the purchasing card program has a single transaction limit of$1,000 and staff
recommends the City increase this limit to $3,000. The current limit has been in place since
2002. This program was established in 1997 for discretionary purchases as shown in Table 1,
Attachment 1. An example of a discretionary purchase is office supplies. Until 2001, the
program was extremely under-utilized. All processes were manual and there was not a rebate
incentive program. Therefore, purchasing cards were used infrequently and the program never
grew. In 2001, the Purchasing & Contracting Division focused on ways to develop the program
based on industry best practices expanding the use ofthe purchasing card in the following ways:
• Audit and fraud controls put into place including monthly and annual audit
• On-line monthly reconciliation for staff and training
• Staff required to use purchasing cards for purchases up to $1,000
• Implemented the revenue share (rebate) program
• Implemented a dedicated accounts payable payment card
• Process utility payments
• Created eight host (virtual) card accounts
• Managed the number of cardholders (total 140 today) to utilize revenue share program
while maintaining appropriate audit/internal controls
• Currently implementing Control AP which is a streamline process to pay more invoices
with the VISA card in lieu of a check
• Created Emergency Homeland Security cards for emergency preparedness response
Based on current approval limits, purchases for goods above $1,000 cannot be made using a
purchasing card which has created a great limitation/inefficiency in the program. The impact of
the inefficiency is directly seen by accounts payable having to process requisitions and cut
checks for these small dollar amounts. Increasing the purchasing card limit will allow the C ity to
further participate and realize rebates through the revenue program. The City is in the 5th year of
the rebate program and continues to see successful results from this program. The first year of
the program the City received over $9,000. In 2010, the total amount back to the City was over
$13,000 and I expect this number to increase by year end 2011. The program has proven to be
effective even in difficult economic times because the City increases rebate dollars by utilizing
purchasing cards for small dollar transactions that have historically involved processing and
cutting checks for amounts up to $1,000. Increasing the limit to $3,000 will allow the City to
expand the rebate program and eliminate the inefficiency created by the current limit.
Additionally, transactions for services are a small percentage of the purchasing card program and
generally include subscriptions, memberships, registration, etc. This is an area with potential
growth in the rebate program for use such as professional services, consulting, and attorney
services. We expect to continue to see an increased demand by vendors to process payments via
a purchasing card or ACH transaction. We have not used the purchasing card for construction
payments due to the limits, the way partial payments are currently processed in ADG and the
Purchasing Approval Limits
October 10, 20 Ill
Page 3
need to encumber funds. However, it is a viable method of payment which should be considered
and utilized where applicable. These would be larger dollar amounts and is definitely a way to
process payments efficiently, and again, increase the revenue share.
In summary, the first recommended change is to increase the purchasing card single transaction
limit from $1,000 to $3,000.
Recommendation #2: Signature Approval Levels
As outlined in Table 1, Attachment 1, the current signature approval levels for goods, services,
and construction in the amount of$15,000 require City Council approval (see Attachment 2).
Prior to June 08, 2009, the City Council signature approval limit was $25,000 and greater.
Included with this memorandum is a summary ofthe purchasing limits used by participating
agencies that are members of the Municipal Assembly of Procurement Officials (MAPO). These
limits vary by entity and the data includes information from special districts, school districts, and
the state purchasing office. In an effort to manage the increased workload that the purchasing
division has experienced and streamline our processes for both internal and external customers,
staff is recommending the signature approval levels be changed to the following tiered structure
reflected in Table 2, Attachment 1:
• Department Designee: Up to $4,999
• Department Director: $5,000-$14,999
• City Manager: $15,000-$34,999
• City Council: $35,000 & greater
Recommendation #3: Purchasing Acquisition Limits for Goods
In 2011, the Purchasing Division has processed 41 bids/proposals to date and managed 29 multi-
year contracts. This is an increase from 2010. As the City moves forward with funding brick
and mortar projects there is an impact to the Purchasing Division's workload because these
projects require a tormal bid process that provides fair and open competition. More specifically,
the time it takes to prepare bid documents, addendums, CAFs, POs and Agreements, conduct bid
openings, demos, on-site visits, and pre-bid meetings, evaluate bids, check references, advertise,
debrief vendors, and obtain insurance documentation and follow up, could be utilized addressing
other cost saving measures for the City. Overall, the City has also seen raw material prices
increase with costs directly passed onto the consumer. Staff is recommending changing the
acquisition approval limits for "Goods" only. This change coupled with the City's effort to
further utilize the purchasing card rebate program will allow the City to continue to obtain
competitive pricing that results in cost savings to the City. Staff recommends purchasing
acquisition limits tor goods be revised to the following:
• Informal quotes for goods $3,001 -$25,000
• Formal bids for goods $25,001 and up
Purchasing Approval Limits
October 10, 20 Ill
Page 4
RECOMMENDATIONS:
Staff is seeking Council consensus on bringing forward the following changes to the Purchasing
Policy at the October 24, 2011 City Council meeting:
• Increase the purchasing card single transaction limit from $1,000 to $3,000
• Revise the purchasing signature approval levels to the following:
o Department Designee: Up to $4,999
o Department Director: $5,000 -$14,999
o City Manager: $15,000 -$34,999
o City Council: $35,000 & greater
• Revise the purchasing acquisition limits for goods to the following:
o Informal quotes for goods $3,001 -$25,000
o Formal bids for goods $25,001 and up
The City's Purchasing Policy was adopted by City Council via resolution and has been amended
accordingly over time. Staff is seeking direction from Council on the above recommendations
that will be brought forward tor formal approval at the October 24, 2011 City Council meeting in
the form of a resolution.
ATTACHMENTS:
1. Tables 1 & 2, reflecting current and proposed changes
2. Excerpt of City Council Minutes of 6/8/2009
3. MAPO Member Purchasing Limits Survey 2011
Table 1: Current Changes to the Purchasing Guidelines for Acquisition Limits and
Signature Approval Levels
Discretionary Informal Formal Bids Formal
(small dollar) Quotes Proposals
Goods Up to $3,000 $3,000-$9,999 $10,000 and over N/A
• No PO needed • Must have three • Requires formal
• Department choice written quotes advertising, public
of vendor • Requires opening of bid
• No quotes needed purchase • Requires purchase
• May pay with VISA requisition with requisition with
if purchase is under Director's Director's approval
$1K approval • Requires City
PO Required Manager's and
Council approvals if
over $15K
Services $3,000-$9,999 $10,000 -$24,999 N/A $25,000 and over
• Requires purchase • Must have three • Requires formal
requisition with written quotes advertising and
Director's approval • Requires public proposal
• No PO needed if purchase opening
purchase is under requisition with • Requires
$3K Director's purchase
• May pay with VISA if approval requisition with
purchase is under • PO required Director's
$1K • Requires City approval
Manager's and • Requires City
Council approval Manager's and
if over $15K Council approval
Construction Up to $24,999 $25,000-$49,999 $50,000 and over N/A
• Requires purchase • Must have three • Requires formal
requisition with written quotes advertising and
Director's approval • Requires public bid opening
if over $3K purchase • Requires purchase
• Requires City requisition with requisition with
Manager's and Director's Director's approval
Council approval if approval • Requires City
over $15K • Requires City Manager's and
Manager's and Council approval
Council approval
Purchasing Up to $1,000 N/A N/A N/A
Card • Cannot be
associated with a
PO based on current
technology in ADG
system
Attachment 1
Signature
Approval
Levels
City Manager:
$15,000 and
under
City Council:
$15,000&
greater
Table 2: Proposed Changes to the Purchasing Guidelines for Acquisition L imit s and
Signature Approval Levels
Purchase Discretionary Informal Formal Purchasing Signature
Type (small dollar) Quotes Bids/Formal Card Approval
Proposals Levels
Goods Up to $3,000 $3,001 -$25,001 and up Up to Department
• No PO needed $25,000 • Requires formal $3,000 Designee: Up
• Department • Must have advertising, public single to $4,999
choice of three opening of bid transaction vendor written • Requires purchase Department
• No quotes quotes requisition with limit Director:
needed • Requires Director's approval $5,000-
• May pay with purchase • Requires City $14,999
VISA if requisition Manager's
purchase is $3k • PO Required approvals City Manager:
or under $15,000-
Services Up to $10,000 $10,001-$25,001 and up $34,999
• Requires $25,000 • Requires formal
City Council: purchase • Must have advertising and
$35,000 & requisition three written public proposal
greater • No PO needed quotes opening
if purchase is • Requires • Requires purchase
$3k or under purchase requisition
requisition • Requires PO
• PO required
Construction Up to $25,000 $25,001 -$50,001 and up
• Requires $50,000 • Requires formal
purchase • Must have advertising and
requisition three written public bid opening
• Requires PO quotes • Requires purchase
• Requires requisition
purchase • Requires PO
requisition
• Requires PO
CITY COUNCIL MINUTES: June 08, 2009 Page -3-
5. Motion to adopt revised City Council Rules of Order and Procedure.
Motion by Mrs. Sang to adopt the revised City Council Rules of Order and Procedure,
Revised June 2009; seconded by Mr. Stites; carried 6-2 with Council Members Gokey
and Womble voting No.
6. Resolution 27-2009 -approving an Intergovernmental Agreement between the
Jefferson County DepartiT!ent of Health and Environment and the City of Wheat
Ridge for cooperative Mosquito Management Program in an amount not-to-
exceed $8,432.00.
Resolution 27-2009 was introduced by Mrs. Langworthy.
Motion by Mrs. Langworthy to approve Resolution 27 -2009; seconded by Mrs. Sang;
carried 8-0.
7. Resolution 29-2009-amending Resolution 02-2001, and further amending
Resolution 27-2002, Purchasing Policy.
Resolution 29-2009 was introduced by Mr. Stites.
Motion by Mr. Stites to approve Resolution 29-2009; seconded by Mrs. Sang.
Motion by Ms. Berry to amend the Resolution such that expense items already in the
approved City Budget over $25,000 and all purchases over $15,000 not in budget
require Council approval; seconded by Mrs. Langworthy; tied 4-4 with Council Members
Berry, Adams, Rotola, Langworthy voting Yes and Council Members Sang, Gokey,
Womble and Stites voting No; Mayor DiTullio broke the tie against; Motion Failed 5-4.
Original motion carried 5-3 with Council Members Rotola, Berry and Adams voting No.
8. Resolution 30-2009-adopting the third modification to the 38th Avenue Corridor
Redevelopment Plan to suspend the TIF for the Cornerstone Project property.
Resolution 30-2009 was introduced by Mr. Womble.
Motion by Mr. Womble to approve Resolution 30-2009; seconded by Mrs. Sang; carried
8-0.
Attachment 2
MAPO Purchasing Approval Limits Survey· 2011
AGENCY ......... 3Quotaa lnformll Quca./ Bids Formlll (WrltiM) Bids; Fonnal PropoHia Procurement Carda, Field Approval Levala
NAME Required S..lad Bids and/or RFP'a Orders (FPO) and Other
City of Arvada $2000 and up. When due to nature of When not informal (see When not informal Field Order Authorization Goods & Non-professional servs. <$15K: Dept. Dir. or Designee•
good/serv. Dept. Dir. previous info under (see previous info Card (FOAC) for <$2K Goods & Non-professional servs. $15K to <$50K: City Mgr. or Designee*
determines sealed bid is Informal Quotes), and under Informal purchases (internal "card" Construction & Professional servs. to <$50K: Dept. Dir. or Designee*
practical/ advantageous when (by precedent) Quotes), and when type sys. that replaces Goods, Non-professional & Professional servs., & Construction $50K & +: Council
(no stated $threshold). Council approves (by precedent) field order forms.) Sole Source: <$15K approved by Purchasing Mgr.
($50K and up). Council approves No P-Card currently, but $15K & +approved by City Mgr. w/ Punch. Mgr. recommendation
($50K and up). it's an optional component Emergency Purchases: Per Ordinance, to be approved by City Mgr.
Not for Professional of our new Bank Servs. PO"s & mod's in Oracle sys. $50K & +: Purchasing Mgr. or designee.
Servs. Contract w/ Bank One. • Approval delegation is supposed to be in written form.
City of Aurora $5,000 $5000-$26,000 $26,000 and over $25,000 and over Process handled by Finane $25K to <$50K WMkly report to City Manager before award isaued
Fax or phone (3 quotes) FOil'lllllly advertised; Formally advertised; $50K and above Counci approval required with 2 week reconsideration at next
Public opening. no public opening meeting before award is issued.
~ lldvertlaing
City of Boulder $1000-$1999 $2000 -$4999 Written $5,000 $5,000 $1000-$4999 Purchasing, but depts can initiate & conclude purchase if policies
Telephone followed. Purchasing checks to assure compliance with policies.
City of Brighton <$25000pen $2,600-$25,000 -Three $25,000 and over $25,000 and over Dept Director selects $2500-$10,000: Procurement Manager
$10,000.01 -$50K: City Manager
Process handled by $50K and over: City Council
PO required tor all Finance.
d$2,500+
City/County of $1 000 -$1 0, 000 informal >$1 0,000; public notice >$10,000; public <$50, petty cash<$1000 >$10,000; City Manager approval required.
Broomfield bids, oral or written and City Manager notice and City Purchasing card, check >$50,000; City Council approval required.
approval Manager approval requests
required.>$50,000; required.
public notice and City >$50,000; public
Council approval notice and City
required. Manager approval
required.
City/County of <$50000pen $5001 -$24,999 • $25,000 and over initiated by City Atty Dept head selects users. Staff Buyer: can approve up to $5000; up to $15,000 If three or more bids received. ..
Denver (No Bid needed) at (Format at Buyer discretion) (Form 42) Process handled by Associate Buyer: can approve up to $10,000; up to $25,000 it three or more bids
$5001 Finance. received.
Senior Buyer: can approve up to $25,000; up to $75,000 it three or more bids
---:.·-~
Purchasing Supervisor: can approve up to $50,000; up to $100,000 if fewer than
three bids received; up to $250,000 if three or more bids received.
Assistant Deputy Manager: can approve up to $100,000; up to $250,000 if fewer
than three bids received; up to $499,999 if three or more bids received.
Deputy Manager: has Unlimited Approval authorization.
City of Durango $1,001-$10,000, $10,001 -$50,000, a Over $50,000. Formal Over $50,000. Formal FPO up to and including Under $1,000-Dept. Director approves. $1,000 & up-Department Director and
two to three written minimum of three written Contract Required. Contract Required. $1 ,000. P-Cards up to Purchasing Agent approve. Any sole source over $5,000 must be approved by
quotes required. quotes required. $1 ,coo per transaction, Purchasing Agent. Finane& Director has final approval on all Purchase Orders and
Specifications may Specifications must be $2,500 per month for most Direct Pay Requisitions (Blanket POs).
be communicated communicated in writing. cardholders. Limits vary
via phone, fax or Contracts for services and are approved by Dept
email. under $25,000 may be Head and Purchasing.
signed by Dept. Director, Purchasing has higher
Attachment 3
Revised 2011
MAPO Purchasing Appro!Val Limits Sutvey-2011
AGENCY Minimum s Quot8a lnfonnal Quot8a I Biela Formal (Written) Bids; Formal Proposals Procurement Carda, Field Approval Levels
NAME Required Sealed Blda and/or RFP'a Ordera (FPO) and Other
City of $5000. $24,999 two De-centralized, $25,000 and over May not have formal (Wells Fargo Visa) Most The City uses Oracle software with approval levels based on hierart:hy. AU
Englewood or more quotes on Departments can send General Fund, $50,000 opening on RFP's Purt:hasing cards are set purchases over $1 OK require City Manager's approval. Council approval on
company letterhead request to purchasing for Enterprise Fund. up with a $250 per amounts over $25,000 General fundl$50,000 Enterprise fund {even it budgeted).
quotes/ proposals on any Construction bids are transaction limit and a Sole source requires justification. Capital equipment amount is $5000/over 1 year
dollar amount, but usualy advertised in Daiy $5000 per cycle limit life. Purchasing reviews all purchases, however Accounting also creates "cash
amounts over $5000. The Journal and Eng'-ood Amount varies based on disbui'Mil18llt" type purchase orders that don't require Purchasing intervention othe
City posts bids/ quotes/ Herald. Department Large than review.
proposals via BidNel purchasers $5,000/day &
$25,000/month limit Mega
cards Purchasing
$30Kiday-$75Kimonth
City of Fort $5000 and up, at $5000 • $60.000; at Buyer $60.000 and over $60,000 and over P-Card; $5000/ Purch Director has final approval if item/service is from a bid or proposal. Sole
Collins Buyer discretion discretion Transaction. Dollar Source items:-Up to $200K-Purchasing Director-$200K and over-City
Limit/Month & Number of Councii."Mini-orders" (departmental purchase orders) up to $5000 are authorized
Transactions/Day set by internally by departmental personnel (no Purch involvement)
Account Manager.
City of Grand $5000110 $10,000 $5000 110 $10,000 $10,000 and over $10,000 and over P-Cards at all levels up to Employees with Supervisor approval up to $5000. Employees who have had
Junction $2500 per purt:hase, Purchasing training can get quotes from $5000 to $10,000, but they have to be sent
$10,000 per month. to Purchasing for a Purt:hase Order. If over $10,000 it must be done by formal
solicitation, whether by bid or proposal. Anything over $50,000 must go 110 City
Council for aDDrOval before the DUrchase can be made.
City of $2500-$25,000 min phone, fax, written or $25,000 and over $25,000 and over Pro Card Most limited to Dept Head or designee approves informal quotesDept Head or designee, AND City
Lakewood 2 quotes electronic professional services $500 Dept Heads may Mgr or designee approves:-formal bids and proposals ($25K +)-non-competitive
have special approval All bids $50K +-capital improvement construction $500K + (also needs City Council
statements reviewed and approval)-unbudgeted purchases or funding changes $50K + (also needs City
approved by managers Council approval)
except Dept Heads
City of $1000-$15,000 N/A $15,000 and over $15,000 and over $1000 limit per transaction. $1000 and below decentralized: end using depllevei.Purchasing Division approves
Longmont Varying monthly limits, all contracts/PO's over the $1000.00 decentralized limit There is no governing ~
established by Department approval requirement
Heads.
City of Louisvile $2500-$4999 3 $5000 -$14,999 three $15,000 and over $15,000 and over <$5,000-Dept Dir. & Fin. Dir.; $5K-$14,999 City Manager; $15,000 and over City
telephone quotes written quote Council
City of Loveland $5,000 $5000 -$10,000 $30,000 $30,000 P-cards most to $1,000 Individuals as designated by Dept Head to $49,999 Department Heads as
some have higher limits for designated by City Mgr to $250,000 City Manager to $499,999 as long as budgeted,
emergencies FPO's to ~ not budgeted it must go to Council City Council must sign all contracts above
$5,000, petty cash to $100 $500,000 Professional services excluded from bid process.
Revised 2011
MAPO P urchasing Approval Limits Survey-2011
AGENCY Minimum 3 Quotea lnfonnal QuotM I Bids Formal (Wrtbn) Bids; Fonnal Propoaals Procurement Cards, Field Approval Levels
NAME Required Sealed Bids and/or RFP'a Orders (FPO) and Other
City of $5000-$25,000.00 $5000 • $25,000.00 $25,000.00 and over $25,000.00 and over Pro cards Multiple limits-Bids/Proposals for engineering or architectural services are provisionally
Northglenn set by Dept Head ;Petty exempted from the formal bid process. CM approval to $25K Above $25K require
cash check to $250 Council approval.
City of Thornton $10,000-$25,000; $2500-$10,000 minimum $25, ooo and over; $25, ooo and over; Purchasing cards $2500 Approved by department supervisors and managers, with levels for each employee
m inimum 3 quotes, 2 phone quotes formal formal per single transaction determined by Department Head or Deputy City Manager. Contracts and
w ritten. Purchasing sign all purchase orders. No purchases taken to City Council.
Expenditures approved through adoption of annual budget, and any amendments
City of $5000 and over $5001 • $30,000 $30,000 and over $30,000 and over P cards Most 1 K per $1K· $5K: Department Designee
Westminster transaction 3K per month $5K-$15K: Division Head
Petty cash $200 month $15K-$30K: Division Head and Purchasing OffiCe
$30K -$50K: Department Head and Purchasing Office
Over $501<: City Council
City of Wheat $3000 -$10,000 $10,000 -25,000 for $10,000 and over for $25,000 and over for P-cards up to $1000 per Directors approve all purchase requisitions $3000 and over.
Ridge m inimum 3 written goods; $50,000 and services transaction Council approves all purchases $15,000 and over.
q uotes over for construction Purchasing Agent signs all purchase orders, no dollar limit.
Town of Parker Over$5,000 $5,000-$20,000 Over $20,000 Over $20,000 Varying transaction and Department director up to $50,000; Town Administrator between $50,000 and
monthly limits {determined $100,000; Town Council over $100,000. Orders over $1,000 are reviewed and
by department heads) approved by purchasing and by IT when applicable.
Adams County $5,000 -$25,000 $5,000-$25,000 $25,000 and over $25, ooo and over P-Cards for purchases $10,000 and less: Department Head approval
$2500 and less; $10,000 $10,000-$25,000: Department Head and Purchasing Manager approval
per month $25,000 and over: County Administrator or Board approval
~pahoe $2,500.00 to $2,500.00 to $25,000.00 $25,000.00 and over $25,000.00 and over $0 to $2,500.00 $0 to $4,999.00 Certified Purchasing Agents
County $5,000.00 to $99,000.00 Purchasing Manager
$100,000.00 to $250,000.00 Director of finarK:e
Over 250,000.00 The Board of County Commissioners
Boulder County $2499-$14,999-Up to $24,999 $25K and over $25K and over LPO under $2,499 $25K & over {purchases and contracts) require Board approval
$15,000-$24,999 P-Card under $2,499 Waivers for $15K and over require Board approval
written or faxed Purchases with quotas attached under $25K Purchasing approves
Jefferson $5000 and over No dollar linit used when No dollar limit used No dollar limit. Used P-card:-Typical user limit: Purchasing Director:-Up to $25K-Includes execution of standard form vendor
County phone or fax specs are straightforward when specs are when user needs to $2500 per transaction -contracts for routine services-Unlimited $ for consumables and wear items if
{"off-the-shelf item"), i.e. complex or project is establish qualifications Purchasing Staff: No $ limit previously approved in budget
llllthiclea, and/or if rush labor-intensive of firms prior to price if all approvals in order-County Administrator:->$25K up to $50K {includes contract signature authorization)
cnkw(Buyerd~) (Buyer discretion). negotiations or Directors up to $25, ooo if Board of County Commissioners: ->$50!(
Public WOrks, Head iasuance of request tor desired-Some specialty
Start & FAA projects cost proposals. cards at higher limits-
must be advertised. Restrictions set by each
division. FPO's:
Used by divisions that
operate on a 24-hour basi&
Dollar limit up to $25,000-
Should use existing awards
I"'
if available.
Larimer County $5,000 $5001 -$25,000 Over $25,000 Over $25,000 No Pro Card $5K -$25K requires Purchasing Director approval
Over $25K requires Board approval
Revised 2011
MA PO Purchasing Approval Limits Survey·· 2011
A GENCY Minimum 3 Quolea Informal QuotM I Biela Formal (Written) Bids; Fonnal Propoula Procurement Carda, Field Approval Levels
NAME Required Sealed Bids andlorRFP'a Orders (FPO) and Other
Adams County $1,500 -$5,000 Up to $5,000 unleaa for Over $5,000 unless for Over $5,000 unless for No program at this time The Supervisor of Purchasing shall summariaze all bids and forward to the budget
School District except Capital Capital Reserve Projects capital Reserve Capital Reserve manager for acceptance. In the case ot a bid involving the Capital Reserve Fund,
No. so Reserve Fund or then over $7,500 Projects then over Projects then over Building Fund, or bids in excess of $7,500: Supervisor of Purchasing shall forward
Building Fund or $7,500 $7,500 to the Office ot Business and Finance and Board ot Education an award
whenever an recommendation. All purchases for any non-budgeted single item unit which exceed
opportunity exits to $10,000 shall be made only upon authorization and approval by the Board ot
obtain a lower bid. Education; this shall not apply to Capital Reserve Fund expenditures.
Cherry Creek $500 $500-$20,000 $20,000 and over $20,000 and over No Pro Card Over $20,000 requires Board approval
Schools
Elected Officials: -No $ limit unless withheld by BCC during budget approval
process (includes authority to execute contracts)
Denver Public $10,000 $10,000 $25,000 $25,000 P-card-$2500 (schools) Except for capital construction, the Board of Education shall approve all
Schools Contract release $10,000 procurements that exceed $1 million and hereby delegates its authority to approve
contracts and purchases ot $1 m~lion or less as follows:
Superintendent & COO -procurements not to exceed $1 million
Chief of Staff, Chief Academic Officer & CFO-procurements not to exceed
1 $500,000
Exec. Dir. Of Finance -budge review & approvals NTE $2SOK (budget check)
Director ot Purchasing: procurements not to exceed $250,000 ___ ,
-
District Operating Heads(reporting to COO)-procurements NTE $100,000.
All independent contractor agreements require approval of Dir. Of Purchacing or
designee.
Approval limits don't remove responsib~ites that District guidelines will be followed
re processing of purchases thru Purchasing Dept, Legal and Finance as required.
Littleton Public Over $5000 -buyer $10,000-$25,000 $25,000-$50,000 $50,000 and over OptCard -JP Morgan All orders over $600.00 are approved by Purchasing Over
Schools discretion on lower Chase & Smart Data $1 OK required Board approval unless previously approved in budget
limits Online-PVS $1000 Limit
most Schools & Depts with
exceptions approved by
Purchasing
Colo Dept of Over$5000 $5000-$50,000 • Over $50,000 Over $50,000 Up to $5000 limit per Up to $5,000 Is end user discretion. $5,000-$10,000 is Purchasing Agent
Human Svcs transaction approval. Over $10 000 needs Purchasing Manager approval.
Colo Dept of Services $5000 to Services $25,000 to Goods or Services over over $50,000 Pro-card up to $5000 Up to $100K may be approved by Purchasing Agent
Transportation $.25,000 $50,000 and Goods $5000 $50,000 require IFB or Over $100K must be approved by Procurement Manager
(COOT) to $50,000 Require Quotes RFB on CO BIDS
on CO BIDS system system
Metro Goods and Serllicea Goods and Services $5,000 Goods and Services Goods and Services FPO up to and including
Westwater $5,000 top $24,999 to$24,999 $25,000 and over $25,000 and over $500
$100,000 for District Manager; exceeding $100,000, requires Board approval
State N/A Services $25,000 to Goods or Services over over $150,000 P-card up to $5000 Based on individual delegation by State Purchasing
Purchasing $150,000 and Goods $5000 $150,000 require IFB or
Office to $150,000 Require RFP published on CO
Documented Quotes BIDS system
published on CO BIDS
system
South Metro $5,000 Goods and Services $5,000 Goods and Services Goods and Services P-card up to $500 month Up to $5,000 for end user; Between $5,000 and $50,000 must be approved by
Fire Rescue to$24,999 $25,000 and over $25,000 and over (stations) Purchasing Manager or Designee; $50K-$1 OOK must be approved by CFO and
Admin. ranges from $3,000 over $1 OOK-Board must approve.
-$5,000/month
Revised 2011