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Regular-General Government # 32.
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| Board of Supervisors |
Financial Services |
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| Subject |
| Adopt a new Policy on Procurement. (No general fund impact) (Newens/Pistochini) |
| Recommended Action |
- Adopt a new Policy on Procurement effective July 1, 2018;
- Repeal the existing stand-alone Purchasing Code of Ethics upon approval of the proposed Policy on Procurement effective July 1, 2018; and
- Repeal all preexisting procurement delegations of authority and procurement standardization directions effective July 1, 2018.
- Affirm that, during the grace period for the implementation of the Federal Uniform Guidance on procurement, from July 2015 through June 2018, the County's procurement standards comply with the procurement standards in previous Office of Management and Budget (OMB) guidance.
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| Strategic Plan Goal(s) |
| Operational Excellence |
| Reason for Recommended Action/Background |
The County's existing Procurement Policy dates from 2008 and is now outdated. The proposed procurement policy seeks to improve the procurement activity in the County by 1) making updates to be consistent with recent laws and regulations, 2) standardizing and consolidating procurement practices that exist throughout the County, 3) improving internal controls, and 4) implementing an accountability system. This policy revision is part of a long-term effort to emulate best practices recommended by the National Institute of Governmental Procurement.
The proposed policy makes the following substantive changes:
1) Incorporates federal procurement guidelines by requiring departments to obtain two quotes for small purchases between $3,500 and $5,000. Existing County policy did not require departments obtaining two or more quotes for small purchases.
2) Consolidates and revises the existing Purchasing Code of Ethics policy into the proposed Procurement Policy. The proposed revisions are intended to be easier to understand by staff involved in the procurement process. The change also allows the proposed Procurement Policy be the referential document for County procurement matters.
3) Centralize the protest process for competitive solicitations within the Department of Financial Services' Procurement Division. This will allow an independent review of the competitive solicitation and ensure all protests are handled consistently countywide.
4) Implement best practices such as requiring an annual Procurement report to the Board of Supervisors and establishing a Deputy Procurement Agent training and certification program for use by County staff. This program will ensure that County staff who are involved in procurement are knowledgeable of the Procurement Code of Ethics and the details of the Procurement Policy.
The proposed policy also makes a number of non-substantive changes, such as consolidating preferential purchasing programs into one document and documenting historical board actions delegating procurement authority to department heads.
Staff is also recommending that the Board repeal all existing direction to procure certain brand-name items. Staff is only aware of one such action, requiring the use of the brand AllSteel for office cubicle systems. The proposed policy establishes a Procurement Standards Committee that will evaluate future requests to require the use of a specific brand when procuring a commodity.
The County must comply with Federal procurement guidelines as part of accepting federal funds. In 2014, new Federal procurement guidelines went into effect (2 CFR Part 200 of federal regulations, also titled as Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, commonly known as Uniform Guidance). The County has until June 30, 2018 to adopt these new guidelines if the County declares that it chooses to use the previous Federal procurement guidelines during this three-year grace period.
The Department will return at a future Board meeting to update the County ordinance, which is also out of dae. As part of the continuing effort to review and improve the procurement processes, the Procurement Division is developing revised procedures and workflows that will provide additional guidance to county departments. These procedures will be disseminated to departments as they are finalized. |
| Collaborations (including Board advisory groups and external partner agencies) |
| The proposed policy was discussed with and reviewed by the County Administrator's Office, the County Counsel's Office, Department of Community Services, General Services Department and the Health and Human Services Agency, and input was sought from all county department heads. |
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| Fiscal Impact |
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| Source of Funds for this Expenditure |
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