CITYWIDE PURCHASING OVERVIEW
AND FUTURE INITIATIVES
1 Overview
• Origination of Request
• Purchasing Agent Authority
• Customer Service Survey
• Purchasing Initiatives
• Questions
2 Origination of Request
In January 2024, the City received a summary report from the State Auditor’s Office to enhance policies and implement a contract monitoring system and compliance program for
professional services. These recommendations are to be completed by January 2025.
During the February 27, 2024, Council Meeting, Mayor Aitken, Councilmember Leon, and Councilmember Rubalcava, requested a discussion on the City’s Purchasing Procedures, specifically the Request for Proposal process.
3 Purchasing Agent Authority
• COUNCIL POLICY 4.0 | Purchasing Procedures:
“At the discretion of the Purchasing Agent, written purchase orders, contracts, purchasing cards, or check requests may be used to obtain the goods and services required by City departments”.
Purchases under $10,000 requires 1 quote
Purchases between $10,001 and $50,000 requires 3 quotes Purchases exceeding $50,000 requires a public online solicitation Purchases exceeding $100,000 require City Council approval 4 Customer Service Survey
Challenges in understanding the complex RFP process
Key Recommendations:
Step-by-step procedures and training on all purchasing tasks Access to the online bidding system (currently pay per license model) Workflow transparency from requisition to contract
5 3
4 5
6 2
PURCHASING INITIATIVES
AUTOMATED PROCUREMENT PROCESS1
REQUEST FOR PROPOSAL PROCESS
CONTRACT MANAGEMENT
TRAINING & C OLLABORATION
VENDOR OUTREACH
CURRENT Procurement Process
Responsible Action System
City Department Requisition Financial System
Purchasing Receives Requisition Hard Copy
Purchasing Collaboration & Review Email
Purchasing Bid Released to Public Online Bidding System Purchasing Q&A Response from Dept Email
Purchasing Responds to Q&A Online Bidding System
Purchasing Bid Closes Online Bidding System
Purchasing Send Results to Department Email
Purchasing Announces Award Online Bidding System
Purchasing Enters Contract/Purchase Order Financial System Responsible Action System
City Department Requisition Financial System
Purchasing Receives Requisition
Procurement
Software
Purchasing Collaboration & Review
Purchasing Bid Released to Public
Purchasing Q&A Response from Dept.
Purchasing Responds to Q&A
Purchasing Bid Closes
Purchasing Send Results to Department
Purchasing Announces Award
Purchasing Enters Contract/Purchase Order Financial System PROPOSED Procurement Process
7 AUTOMATED PROCUREMENT PROCESS1
BID Advantages
Simplicity
Clear Specifications
BID Disadvantages
Limited Flexibility
Focus on Price Over Quality
RFP Advantages
Flexibility/Best Fit
Focus on Value
RFP Disadvantages
Complex & Time Consuming
Requires Expertise
8 REQUEST FOR PROPOSALS2
Current Manual Process:
Requisition Financial System
Receives Requisition Manual Process
Collaboration & Review Email
RFP Released to Public Online Bidding System
Q&A Response from Dept Email
Responds to Q&A Online Bidding System
RFP Closes Online Bidding System
Hard Copy Proposals are Received/Preliminary Minimum Qualifications are Assessed
Manual Process
Evaluation Committee Evaluates Hard Copy Proposals Manual Process Interviews/Demos with Top Proposers Manual Process
Award Announcement Online Bidding System
Enters Contract/Purchase Order Financial System
Requisition Financial System
Receives Requisition
Procurement Software
Collaboration & Review
RFP Released to Public
Q&A Response from Dept
Responds to Q&A
RFP Closes
Proposals are Received/Preliminary Minimum Qualifications are Assessed Evaluation Committee Evaluates On-Line Proposals
Interviews/Demos with Top Proposers
Award Announcement
Enters Contract/Purchase Order Financial System
9 REQUEST FOR PROPOSALS2
10 REQUEST FOR PROPOSALS2
City staff spends a significant amount of
time tracking important contract
information and deadlines with
spreadsheets and emails, with different
staff maintaining different information in
separate systems.
Contractors also find it challenging
navigating through the contract process
without a central repository to manage
their performance standards, insurance
requirements and contract deadlines.
Performance
Metrics
Automatic
Deadline Alerts
Transparent
Workflow
Transparent
Document Track
Changes
Procurement
Software
Minimize
Ratifications
Centralized
Correspondence
Easy Access for
Public Records
Requests
Insurance
Documents
Payment History
Maintain All
Contract & Vendor
History
11 CONTRACT MANAGEMENT3
• Increased Compliance with Policies
• Fosters Professional Growth
• Encourages Consistency
• Supportive Learning Environment for New Employees
• Creation of Strong Contracts and Comprehensive Scopes • Risk Mitigation
12 TRAINING & C OLLABORATION4
City Aliso Viejo City of Anaheim City of Brea City of Buena Park City of Corona City of Costa Mesa City of Cypress City of Dana Point City of Fountain Valley City of Fullerton City of Garden Grove City of Huntington Beach City of Irvine City of La Habra City of La Palma City of Laguna Beach City of Laguna Hills City of Laguna Niguel City of Laguna Woods City of Lake Forest City of Long Beach City of Los Alamitos City of Mission Viejo City of Newport Beach City of Ontario City of Orange City of Placentia City of RSM City of San Clemente City of San Jose City of San Juan Capistrano City of Santa Ana City of Seal Beach City of Stanton City of Tustin City of Villa Park City of Westminster City of Yorba Linda Fullerton School District Inland Empire Health Plan Irvine Ranch Water District Los Angeles County Mesa Water District OC Dept of Ed Ontario Airport OC Fire Authority OC Power Authority South OC Wastewater Authority South Coast Water District UCI Procurement Services County of Orange 13 4 TRAINING & C OLLABORATION
Monthly In-Person Trainings:
Overview of City Structure & Procurement Policies
Detailed Instructions of the Bidding Process
Guidance in Understanding the City’s Terms & Conditions Registration instructions for our Online Bidding System Collaboration with the Small Business Administration
14 5 VENDOR OUTREACH
15 QUESTIONS