TITLE
Consider a memorandum/resolution to allow purchase orders to specific vendors to exceed the $50,000.00 threshold in FY 16 for Fleet Services.
SUMMARY
AGENDA ITEM
Fleet Services purchasing limits
ORIGINATING DEPARTMENT
Support Services
BACKGROUND INFORMATION
Unless specifically exempted under Texas Local Government Code 252.022, staff is required to comply with competitive procurement processes for expenditures over $50,000. The exemptions, however, facilitate Fleet Services maintenance operations by including single-source providers, captive replacement parts or components for equipment, and purchases due to unforeseen damage to public machinery, equipment, or other property.
Fleet Services leverages the City of Killeen procurement card program (P-cards) to purchase parts and supplies and facilitate timely equipment maintenance and repairs. Since 2013, some suppliers have incrementally approached the $50,000 threshold and maintenance operations were then disrupted until city council approval was secured to exceed the threshold. Negative impacts included outsourcing of maintenance support to other organizations in Central Texas, disruption of city department operations, increased non-mission capable times for mission critical city vehicles, and extended travel times for Fleet Services staff.
Fleet Services also leverages the P-card program to reduce administrative costs for small purchases by eliminating the need for multiple requisitions and purchase orders. Expenditures however can exceed the projected amount per vendor based on required services and repairs during each fiscal year.
DISCUSSION/CONCLUSION
Staff requests approval, in advance, to exceed the $50,000 threshold with the following vendors in FY16. As granted by council in FY15, prior approval aligns with LGC provisions and facilitates timely and resource-efficient equipment maintenance and the uninter...
Click here for full text