CHAPTER 1:
INTRODUCTION TO PURCHASING AND
CONTRACT PROCEDURES

PURPOSE
The purpose of this manual is to provide a comprehensive set of policies and procedures that comply with applicable Federal, State and local laws and regulations and promote the cost-effective procurement of goods and services.

This manual has been compiled to assist each employee in understanding their responsibilities in the purchasing process by clearly specifying the procedures to be used by the City of Visalia employees in obtaining the materials, goods and services necessary in carrying out their responsibilities to our community and its citizens.

PURCHASING AUTHORITY AND RESPONSIBILITIES
The Purchasing Agent, under the administrative direction of the Chief Financial Officer and City Manager, shall be the head and have general supervision of the Purchasing Division. The Purchasing Agent, as designated in Article VIII of the City of Visalia Charter, has the authority and responsibility to carry out and/or delegate applicable procurement laws and Council policies with regard to purchasing and related contractual agreements for materials, supplies and services.

The Purchasing Agent has authority to contract for rental or purchase of all materials, supplies, furnishings, equipment and other personal property upon written requisition by a City Department Head or his/her designee.

The Purchasing Agent also has the authority to contract for various services including building construction, alteration and repair and architectural, engineering and design consulting services.

In summary, the Purchasing Agent processes purchase requisitions for all City departments; obtains and evaluates competitive bids, proposals and quotes; awards purchase orders and contracts; creates, distributes and centrally files all purchasing documents; administers purchase orders and contracts and; monitors vendor performance.

OTHER PURCHASING DUTIES

• Establish and maintain Central Stores Warehouse for City supplies.
• Redistribute, sell or otherwise dispose of personal property no longer required by the using department, i.e. surplus property.
• Establish standard specifications, with department input, for items commonly used by City departments.
• Coordinate Lease-Purchase agreements and Consultant Agreements.

The Purchasing Agent may organize one or more committees to assist in the establishment of standards of type, design, quality or brand of purchases. The Purchasing Agent shall be the head of such committee, which may include the heads of using departments, and others concerned. As to purchases for special needs or particular uses, the Purchasing Agent shall consult with and give consideration to the recommendations of the department head making the requisition. Any member of the committee may act through a representative appointed by him/her.

PURCHASING AGENT AUTHORITY
All bidding may be dispensed with for purchases of supplies, materials, equipment and services having a total estimated value of $2,500 or less.

Purchases of supplies materials, equipment and services of an estimated value in the amount of $2,500 or less may be made by the Purchasing Agent in the open market. Open market purchases for supplies, materials, equipment and services of an estimated value between $2,501 and $25,000 shall, whenever possible, be based on at least three (3) quotes or bids, and shall be awarded to the lowest responsive, responsible bidder.

Except as otherwise provided herein, purchases of supplies, materials and equipment having an estimated value greater than $25,000 shall follow formal bidding procedures. Such contracts shall be awarded to the lowest responsive, responsible bidder.

Architectural, engineering, construction management, land surveying, specialized and design services shall be procured in accordance with the Qualification Based Selection (QBS) procedures detailed in this manual in Chapter 15, Guidelines for Retaining Consultants.

DELEGATION OF AUTHORITY
The Purchasing Agent may delegate any of the duties listed above to other City employees. Those individuals shall follow all the guidelines of this policy manual and shall consult with the Purchasing Agent on technical aspects of the purchasing process. In general, departments have been given a delegated purchasing authority of $2,500.

PROCURING GOODS, SERVICES, EQUIPMENT AND MATERIALS ON BEHALF OF THE CITY OF VISALIA WITHOUT THE PROPER AUTHORITY CAN RESULT IN THE INDIVIDUAL BEING HELD PERSONALLY RESPONSIBLE FOR CHARGES INCURRED.

COORDINATION WITH CITY DEPARTMENTS
While City departments have the primary responsibility for the determination of materials, supplies, equipment and services which they requisition, the Purchasing Agent will evaluate quality, quantity and type selected to insure that the best interests of the City are served. Departments are encouraged to consult with the Purchasing Agent or his/her designated representative concerning materials specification or other general information. The Purchasing Agent will arrange demonstrations of products and equipment and obtain other information when requested to do so by the departments. Information on new products, services or procedures should be shared with the Purchasing Agent as soon as any purchase is contemplated.

GOALS AND OBJECTIVES OF THE PURCHASING DIVISION

• Purchase or contract for supplies, materials, equipment and services required by any using department in accordance with purchasing procedures prescribed by ordinance or law, such administrative regulations as the Purchasing Agent shall adopt for internal management and operation of the Purchasing Division and such other rules and regulations as shall be prescribed by the City Council and/or City Manager.
  
• To provide City departments with quality and timely service that allows them to fulfill their obligations effectively.
  
• To ensure that the City receives the best value obtainable for each tax dollar expended.
  
• To promote free and open competition and equal opportunity for all qualified bidders. The following are four fundamental elements of the procurement process:
  
• Buying the proper supplies, equipment, materials or services for the purpose required.
  
• Having material available at the proper time.
  
• Securing the proper amount.
  
• Paying the proper price.