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  Work Session Item     7. A.    
Regular BOS Meeting
Meeting Date: 06/18/2019  
Submitted For: Mary Springer Submitted By: Mary Springer, Finance Director
Department: Finance  

Information
Request/Subject
Revise Policy No. BOS-FIN-113-Procurement to reflect a change to Section 2(C)-Formal Solicitation Bid Threshold from $50,000 to $100,000.
Background Information
On November 20, 2018, the Board approved the new Procurement Policy (No. BOS-FIN-113).  Section 2(C) Formal Solicitation Bid Threshold is currently set at $50,000.  The $50,000 threshold limits the ability to solicit informal written quotes from small businesses and local suppliers.  Staff proposes to increase the Informal Bid Threshold from $50,000 to $100,000 to streamline the ability to procure items with competitive three written quotes instead of a full formal bid process.

Chapter 23 of the Arizona Procurement Code, Part D., paragraph B states, "Any procurement that does not exceed the aggregate dollar amount of less than one hundred thousand dollars shall be restricted, if practicable, to small businesses as defined in rules adopted by the director.  The procurement officer shall rotate the small business solicited to compete for any procurement of less than one hundred thousand dollars.  If it is impracticable to restrict a particular procurement to small businesses, the procurement officer shall make a determination setting forth the reasons and place it in the contract file."
Evaluation
Increasing the Informal Solicitation bid threshold would allow Procurement the discretion to solicit three written quotes for items not to exceed $100,000 when written quotes are a sensible alternative to the formal bid process.   This change would expedite the purchasing process while maintaining the contract awards of $50,000 or more at the Board of Supervisors discretion.
Conclusion
Revise Policy No. BOS-FIN-113 - Procurement to reflect revision to Section 2(C) Formal Solicitation Bid Threshold from $50,000 to $100,000 to allow for a more streamlined procurement process.
Recommendation
Staff recommends the revision made to Policy No. BOS-FIN-113-Procurement Section 2(C) to reflect the increase in the Informal Bid Threshold from $50,000 to $100,000.

This policy will be presented to the Board at a future Board of Supervisors' meeting for adoption once the Board has had time to review and ask questions of staff.
Suggested Motion
Information/Discussion of a proposed revision to Policy No. BOS-FIN-113 - Procurement to reflect a change to Section 2 (C) which is an increase in the informal bid threshold from $50,000 to $100,000.  (Mary Springer)

Attachments
Proposed Revised Policy No. BOS-FIN-113
Chapter 23-Arizona Procurement Code

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