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. 2014-89, A Resolution Establishing Procedure For Suspension And Debarment Of Vendors And Contractors As Needed (01/08/15 Finance 4-0).
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Purpose
The purpose of this memorandum is to present Resolution No. 2014-89 which establishes a procedure for suspension and debarment of vendors and contractors as needed.
Background
In public procurement, the concept of suspension and debarment is well established. Typically, debarment involves excluding a person for cause from consideration for award of contracts, usually for a period of not more than three years, while suspension involves excluding a person from consideration for award of contracts if there is probable cause for debarment, usually for a period significantly shorter than three years. Suspension and debarment normally would only apply to procurement which exceeds the threshold for a competitive process involving public advertisement and sealed submittals, currently $25,000.
At the December 4, 2013 meeting of the Budget and Finance Committee, staff recommended the committee consider directing staff to prepare for consideration by the Board of Mayor and Aldermen a policy and procedure for suspension and debarment of vendors and contractors as needed, and engaged the committee in discussion of various topics in order to provide direction to staff. The attached draft resolution and the accompanying draft ordinance establishing debarment and suspension procedures and policy respectively are the result.
Financial Impact
Whenever the pool of eligible competitors is restricted, there is a potential adverse financial impact on the City. However, prohibiting non-responsible potential competitors from competing in the first place has the benefit of preventing funds being spent on an unproductive or unsatisfactory procurement award.
Options
As an option to the drafted policy and procedure for suspension and debarment of vendors and contractors as needed, the Board of Mayor and Aldermen could choose to direct staff to make alterations to and then re-present the drafts.
Recommendation
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Staff recommends the Board of Mayor and Aldermen approve Resolution No. 2014-89 which establishes a procedure for suspension and debarment of vendors and contractors as needed.