Title
Procurement and Contracts, a division of the Chief Administrative Office, recommending the Board approve revisions to adopted Board Policy C-17 - Procurement Policy.
FUNDING: N/A
Body
DISCUSSION / BACKGROUND
The Board of Supervisors adopted the current Procurement Policy C-17 in September 2022. Prior to that, Policy C-17 was adopted by the Board of Supervisors in 2006, amended in the Spring of 2007, and amended again in the Fall of 2012. A major update was made to the policy in 2022, which included a new requirement for competitive bidding for services exceeding $100,000. Since the 2022 update, Procurement and Contracts has made a significant effort to meet with County departments to solicit feedback on changes that departments would like to see to provide clarity and make processes more efficient. Procurement and Contracts staff have also identified opportunities for clarification and streamlined processes. A redline version that identifies all of the changes is attached.
In an effort to meet the Board goal of improving efficiency by bringing fewer administrative items to the Board for approval, the following changes were made to section 1.0 to delegate additional authority to the Purchasing Agent (or designee):
1.1.9 Purchasing Agent may execute retroactive contracts and purchase orders less than $10,000.
1.1.10 Purchasing Agent upon approval by the Chief Administrative Officer (CAO), or designees, may sell or dispose of fixed assets no longer required for public use.
1.1.11 Purchasing Agent upon approval by the CAO, or designees, may process the sale of service weapons.
Section 2.1 - Centralized Solicitation was added to formalize what has already been happening in practice. Formal solicitations for the procurement of goods and services is centralized in the CAO Procurement and Contracts Division under the direction of the Purchasing Agent.
A new Section, 2.3 Purchase Contract, was added that includes a definition of a Purchase Contract and description of when to use a Purchase Contract.
Procurement and Contracts consistently receives questions about what defines a retroactive contract so section 2.5.1 Retroactive Contract and Contract Amendments was added. An exception for annual software license renewals is also added.
In an effort to improve efficiency a change was made to section 2.6 - Perpetual Contracts, to decrease the requirement for Board of Supervisors approval from annually to every 3 years for perpetual contracts that exceed the Purchasing Agent authority.
Section 2.12 Local Vendor Preference was updated to remove "services" in accordance with direction received from County Counsel.
A quick reference table was added to section 3.1-Thresholds and clarification provided that if a contract is going to be amended and the amendment amount exceeds the threshold for a competitive solicitation, a competitive solicitation or exemption is needed.
Section 3.3 was revised to take out information that was procedural in nature. Procedures can be found in the step-by-step Procedure Manual available on the Procurement and Contracts website. Some information from 3.3 was pulled out and renumbered to 3.4 (Protest Procedure) and 3.5 (Additional Purchases).
3.6 Exceptions to Competitive Procurement (Old section 3.4 and 3.5) was updated and clarifications provided for the sole source description, adding exemptions for Behavioral Health Service Act services, specialty mental health, residential, substance use disorder, and inpatient psychiatric behavioral health services, and developer paid public notice printing.
Section 4.0 and 5.0 include grammar and formatting clean up.
In Section 6.0, as noted in the new Section 1.1.10, the authorization was shifted from the Board of Supervisors, to the CAO for disposal of fixed assets.
The policy does not include step-by-step instructions for all types of County procurements. The policy is intended to be a guiding document. A step-by-step Procedures Manual has been developed by the Procurement and Contracts Division and is available on the County Procurement and Contracts website.
ALTERNATIVES
The Board may choose not to approve the recommended changes; direct staff to make additional modifications; or take no action.
PRIOR BOARD ACTION
Legistar file 12-0920 - Introduction, hearings and adoption of the Ordinance 5001 to repeal Chapter 3.12 of Title 3 for the revised Procurement Ordinance and Procurement Policy
Legistar file 22-0977 - Version 1, 6/14/2022 - Conceptual approval to amend Chapter 3.12 of Title 3 of the Count of El Dorado Ordinance Code and submit draft changes to the ordinance and Procurement Policy C-17
Legistar file 22-0977 - Version 2, 9/22/2022 - Approved Final passage of Ordinance 5166 and update to Policy C-17 Procurement Policy
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Recommendations for input were requested from all County departments. Input was received from several departments including HHSA, CAO Administration, CAO Central Services, and CAO Facilities.
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
N/A
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Laura Schwartz, Assistant Chief Administrative Officer
Michele Weimer, Procurement and Contracts Manager