Item 31 - Purchasing Policies and Procedures

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Purchasing Policies and Procedures May 16, 2023 Page 3 3 4 2 9 circumstances dictate the goods or services are only available from less than three vendors. Formal bids are required for purchases in excess of $25,000 by way of IFB or RFP. The formal bidding requires solicitation through Planetbids, the City’s current e-Procurement portal, as well as a public notice. Public notice includes publication in a newspaper of general circulation for public works contracts. Due to the increasing cost of goods and services, informal and formal bidding have become more frequent. Staff recommends increasing the informal and formal bidding threshold requirement to $15,001 to $50,000, and $50,001 and above, respectively. The revision would allow flexibility for staff to do as-needed procurement at local businesses, more efficient project delivery, and increased efficiency with existing resources. Comparison to Other Cities and Proposed Thresholds The following table summarizes the contracting and purchasing authority for charter cities in Southern California with populations from 300,000 to 500,000. The table includes the current and proposed thresholds for Santa Ana. City CM Authority Informal Bids Formal Bids Local Preference Anaheim All: Up to $200,000 Public Projects: $10,000- $50,000 require up to 3 quotes Public Projects: Over $100k All Other: >$20,000 5% maximum $2,000 Irvine All: Up to $1,000,000 Public Projects: >$60,000- $200,000 All Other: $10,000- $45,000 Public Projects: >$200,000 All Other: $45,000- $200,000 5% maximum $2,000 Long Beach All: Up to $200,000 None Required Public Projects: $25,000 All Other: >$100,000 10% maximum $10,000 Riverside All: Up to $50,000 Public Projects: Up to $25,000 All Other: Up to $50,000 Public Projects: >$50,000 All Other: >$50,000 5% Santa Ana (Current) Public Works Contracts: All:All: >$25,000 7% small Santa Ana business