Finance Committee Agenda and Packet 2024 11 21

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SUBJECT: CITY PURCHASING POLICY UPDATE DATE: NOVEMBER 21, 2024 PAGE 2 OF 3 requirement for a requisition for all purchases <$10,000 is anticipated to eliminate approximately 50% of the workload related to requisitions. While a requisition would not be required for purchases between $5,001 and $10,000, Staff will be required to solicit multiple informal bids or justify sole source provider, and submit documentation to Finance in order for invoices to be paid. Incorporate Federal Procurement Requirements: ■ 2 CFR Part 200 (collectively known as "Uniform Guidance") contains federal regulations jurisdictions are required to meet when using federal funds. Proposed purchasing levels and bid requirements meet or exceed the Uniform Guidance. ■ Explanation of suspension and debarment requirements added to the Purchasing Policy along with a link to the federal website for verification of specific vendors. ■ Definition of capital asset in the Purchasing Policy is amended from $5k to $10k which matches current City policy and meets federal procurement requirements. ■ The current Purchasing Policy does not include federal procurement requirements. In July 2024, the City of Louisville was monitored by the State and this was a finding. Clarify Cooperative Purchasing: ■ Purchasing Policy currently allows staff to "piggyback" on contracts from State bid system, General Services Administration (GSA), or the Multiple Assembly of Procurement Officials (MAPO). ■ Proposed amendment does not limit staff to the three named agencies, it allows use of any purchasing consortium along with other local governments if pricing available through those entities is advantageous to the City. ■ Proposed amendment would eliminate the cap in which cooperative purchases could be leverage. Administrative Clean Up: Add Links, Formatting Consistency ■ Replaces appendix with links throughout the Purchasing Policy to ensure staff are using the most up to date document related to the purchasing requirement. ■ Multiple changes to standardize formatting in the document. FISCAL IMPACT: Staff is unable to precisely quantify amount of staff time saved. However, revisiting the Purchasing Policy is anticipated to significantly reduce staff time spent on smaller purchases while maintaining existing procurement controls. RECOMMENDATION: CITY COUNCIL COMMUNICATION