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HomeMy WebLinkAbout179-23 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 179-23 File plumber: 2023-1005 RENTAL EQUIPMENT PROCUREMENT PROCEDURE (BIDDING WAIVER): A RESOLUTION TO WAIVE COMPETITIVE BIDDING AND AUTHORIZE THE PROCUREMENT OF RENTAL EQUIPMENT FROM VARIOUS VENDORS IN EXCESS OF $35,000.00 BUT TO REQUIRE AT LEAST 3 WRITTEN OR PUBLISHED QUOTES FOR EACH RENTAL WHEREAS, City policy and state law require the Purchasing Division to competitively solicit purchases that exceed $35,000.00 with the same vendor for like or similar goods and services but it is difficult for each department and Purchasing to verify and maintain compliance when the same vendor is used by multiple departments; and WHEREAS, with the nature of rental equipment being of unknown variables such as size of equipment, duration of rental, and equipment available at time of need, the City is not able to practically and feasibly solicit rental equipment within the competitive bidding timeframe; and WHEREAS, Purchasing recommends applying quote thresholds by department at the time the rental equipment is needed, rather than setting an aggregate city-wide budget for this purpose. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby determines an exceptional situation exists in which competitive bidding is deemed not feasible or practical and therefore waives the requirements of formal competitive bidding and authorizes the procurement of rental equipment from various vendors in excess of $35,000.00, and authorizes the Purchasing Division or department in need of the equipment to solicit at least three informal written or published quotes without the need for further approval by the City Council. PASSED and APPROVED on August 15, 2023 Page 1 Attest: ```,G0(GUll R K `�• • CITY n,:�•9`lr .. ; /A Kara Paxton, City Cl Treasurer =�• CITY OF FAYETTEVILLE ARKANSAS MEETING OF AUGUST 15, 2023 TO: Mayor Jordan and City Council THRU: Paul Becker, Chief Financial Officer FROM: Les McGaugh, Purchasing Director DATE: SUBJECT: Rental Equipment Procurement Procedure RECOMMENDATION: CITY COUNCIL MEMO 2023-1005 A resolution to waive competitive bidding for the procurement of rental equipment from various vendors in excess of $35,000.00 annual City-wide aggregate spend but require 3 written or published quotes for each needed rental. BACKGROUND: City Policy requires the Purchasing Division to competitively solicit purchases that exceed $35,000.00 with the same vendor for like or similar goods and services. Various departments use equipment rental vendors and they are unaware of other departments usage, and as a result, it is difficult for each department and Purchasing to verify and maintain compliance. DISCUSSION: With the nature of rental equipment being of unknown variables such as size of equipment, duration of rental, and equipment available at time of need, the City is not able to practically and feasibly solicit rental equipment. Purchasing recommends applying quote thresholds by department at time of need, rather than aggregate spends annually City Wide. BUDGET/STAFF IMPACT: This is a process change. Each department is responsible for their own budget for equipment rental. ATTACHMENTS: SRF - Rental Equipment Procurement Procedure Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 == City of Fayetteville, Arkansas y 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 - Legislation Text File #: 2023-1005 Rental Equipment Procurement Procedure A RESOLUTION TO WAIVE COMPETITIVE BIDDING AND AUTHORIZE THE PROCUREMENT OF RENTAL EQUIPMENT FROM VARIOUS VENDORS IN EXCESS OF $35,000.00 BUT TO REQUIRE AT LEAST 3 WRITTEN OR PUBLISHED QUOTES FOR EACH RENTAL WHEREAS, City policy and state law require the Purchasing Division to competitively solicit purchases that exceed $35,000.00 with the same vendor for like or similar goods and services but it is difficult for each department and Purchasing to verify and maintain compliance when the same vendor is used by multiple departments; and WHEREAS, with the nature of rental equipment being of unknown variables such as size of equipment, duration of rental, and equipment available at time of need, the City is not able to practically and feasibly solicit rental equipment within the competitive bidding timeframe; and WHEREAS, Purchasing recommends applying quote thresholds by department at the time the rental equipment is needed, rather than setting an aggregate city-wide budget for this purpose. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby determines an exceptional situation exists in which competitive bidding is deemed not feasible or practical and therefore waives the requirements of formal competitive bidding and authorizes the procurement of rental equipment from various vendors in excess of $35,000.00, and authorizes the Purchasing Division or department in need of the equipment to solicit at least three informal written or published quotes without the need for further approval by the City Council. Page 1 Les McGaugh Submitted By City of Fayetteville Staff Review Form 2023-1005 Item ID 8/15/2023 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 8/7/2023 PURCHASING (160) Submitted Date Division / Department Action Recommendation: A resolution to waive competitive bidding for the procurement of rental equipment from various vendors in excess of $35,000.00 annual City-wide aggregate spend but require 3 written or published quotes for each needed rental. a Account Number N/A Project Number Budgeted Item? Yes Budget Impact: a Fund N/A Project Title Total Amended Budget Expenses (Actual+Encum) Available Budget Does item have a direct cost? No Item Cost Is a Budget Adjustment attached? No Budget Adjustment Remaining Budget V20221130 Purchase Order Number: Previous Ordinance or Resolution # Change Order Number: Original Contract Number: Approval Date: Comments: This is a process change. Each department is responsible for their own budget for equipment rental.