John,
Regardless of source of funding, the City of Chula Vista follows established
purchasing guidelines. As a result, we probably do adhere to a "higher
standard" when using some federal funds. It would be difficult, and
inconsistent, to administer a separate purchasing policy based on funding
source.
Where do you draw the line? What about state funds, developer fees, or
donated funds? Should exceptions be made for them as well? What if funds are
co-mingled? Which guideline then applies?
The answer may be to establish purchasing limits high enough to allow
flexibility in dealing with small dollar transactions, while still
maintaining appropriate fiscal control (i.e. competitive bids) for high
dollar acquisitions.
John P. Coggins, C.P.M.
Purchasing Agent
City of Chula Vista
(619) 691-5141
[EMAIL PROTECTED]
-----Original Message-----
From: J Herrera [mailto:[EMAIL PROTECTED]]
Sent: Wednesday, May 10, 2000 11:44 AM
To: [EMAIL PROTECTED]
Subject: [CSMFO Members] Purchasing Thresholds - Federal vs. Local
Although most of us have very little federal funding relative to our total
budget, there are some local agencies that receive significant federal
funding through grants.
My question for the membership is with regard to purchasing procedures and
purchasing thresholds. The federal OMB considers any purchases under
$100,000 to be a "small purchase" for procurement compliance purposes,
requiring competitive bidding for purchases that exceed the $100,000
threshold. However, the local agency's finance office considers purchases
over, say $10,000, $5,000 or even $2,500 to include competitive bidding
documentation (excluding public works projects).
For single audit purposes, are our federal awards being held to a higher
standard by following local purchasing policies rather than the federal
guidelines? Do any cities have a separate purchasing/procurement policy for
"federally-funded" operating costs vs. professional service contracts?
I'm working with a local JPA that receives roughly 65% of its funding, or
about $13 million, from federal grants and your comments on this issue would
be appreciated.
Thank you,
John Herrera, Administrative Services Director
City of Imperial Beach
(619) 628-1361
