Subject:
Title
Amend Town Code Chapter 6, Article 8, Section 6-74.1, Small Purchase Procedures
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EXPLANATION AND SUMMARY:
The Finance Department recently surveyed small purchase procedures of other jurisdictions, the summary of which is attached. As the Town has not increased small purchase levels that require a purchase order or require three quotes in more than 20 years, Vienna has lower limits than other surrounding, similar-sized jurisdictions. In addition, the number of purchase orders required has grown over the last 20 years as prices have increased. For these reasons, the Finance Department requests that Council amend the purchase order and quote requirements defined in Chapter 6, Article 8, Section 6-74.1.
The Finance Department recommends raising the purchase threshold that triggers a purchase order requirement, which necessitates approvals from the department head and finance director, be increased from $500 to $1,000. The department also requests that the threshold for requiring three written quotes for purchases be raised from $1,000 to $2,500. Purchases under $1,000 may be made with the department head's authority. The threshold requiring competitive sealed bids is recommended to remain at $30,000, which was adjusted in fiscal year 2019. These limits are well within small purchase limits prescribed in the Virginia Public Procurement Act.
These changes will eliminate more than 150 purchase orders a year and lowers the administrative burden on all departments. The Finance Department is confident that these increased limits will continue to provide adequate control over small purchases.
Departmental Recommendation: Recommend approving changes to Town Code Chapter 6, Article 8, Section 6-74.1, Small Purchase Procedures as proposed.
Finance Recommendation: Recommend approving changes to Town Code Chapter 6, Article 8, Section 6-74.1, Small Purchase Procedures as proposed.
Purchasing Recommendation: Recommend approval.
Town Atto...
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