DATE: November 25, 2014
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Russell Truell, Assistant City Administrator / CFO
Brian Wilcox, Purchasing Manager
SUBJECT:
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Consideration Of Resolution No. 2014-90, A Resolution To Revise Section E Of The Purchasing Policy For City Of Franklin Procurements Not Pertaining To New Construction (01/08/15 Finance 4-0) .
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Purpose
The purpose of this memorandum is to present a draft revision to Section E of the Purchasing Policy for City of Franklin procurements not pertaining to new construction.
Background
Section E, entitled "Rejection of Bids," directs that the Purchasing Manager "shall not accept the bid of a vendor or contractor who is in default on the payment of taxes, licenses, fees or other monies of whatever nature that may be due the City by the vendor or contractor." As written, this directive is impractical to administer because (a) not accepting a bid would require almost immediate access during a bid opening to knowledge of default, and (b) a state of default is not something of which any one office or department of the City would be aware.
Staff recommends that Section E be revised (a) to apply not only to bids but also to proposals and other submittals received pursuant to a formal procurement solicitation issued by the Purchasing Office, and (b) to direct the Purchasing Manager to recommend to the Board of Mayor and Aldermen that it reject any such submittal of a vendor or contractor who is in default whenever "the Purchasing Manager becomes aware of such default."
Currently, Section E of the Purchasing Policy reads:
Rejection of Bids. The Purchasing Manager shall recommend to the Board of Mayor and Aldermen to reject any and all bids, parts of bids, or all bids for any one or more materials, supplies, vehicles, equipment or contractual services included in the proposed contract whenever the public interest would be best served by such rejection. The Purchasing Manager shall not accept the bid of a vendor or contractor who is in default on the payment of taxes, licenses, fees or other monies of whatever nature that may be due the City by the vendor or contractor.
As proposed, Section E of the Purchasing Policy would read:
Rejection of Bids, Proposals or Other Submittals. The Purchasing Manager shall recommend to the Board of Mayor and Aldermen to reject any and all bids, proposals or other submittals received pursuant to a formal procurement solicitation issued by the Purchasing Office, or parts thereof, for any product or service to which this policy applies, whenever, prior to the Board of Mayor and Aldermen making an award pursuant to such a formal procurement solicitation, the Purchasing Manager believes the public interest would be best served by such rejection. The Purchasing Manager shall recommend to the Board of Mayor and Aldermen that it reject any such submittal of a vendor or contractor who is in default on the payment of taxes, licenses, fees or other monies of whatever nature that may be due the City by the vendor or contractor whenever, prior to the Board of Mayor and Aldermen making an award pursuant to such a formal procurement solicitation, the Purchasing Manager becomes aware of such default.
Financial Impact
Staff is not aware of any financial impact of this proposed policy change.
Options
As an option to the drafted revisions, the Board of Mayor and Aldermen could choose to direct staff to make alterations to and then re-present the drafted revisions.
Recommendation
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Staff recommends the Board of Mayor and Aldermen approve Resolution No. 2014-90 which revises Section E of the Purchasing Policy for City of Franklin procurements not pertaining to new construction.