Procurement Modernization Ordinance
Efficiency • Transparency • Fairness
David Battaglia, Procurement Officer
City Council Meeting – Sept. 9, 2025
2City of Sunnyvale – Ordinance Amendments– Sept 2025
• Modernize outdated procurement rules
• Streamline processes to reduce administrative burden
• Facilitate the transition to PlanetBids (e-procurement) • Align thresholds with peer cities & recognized best
practices
Purpose of Ordinance Amendments
3City of Sunnyvale – Ordinance Amendments– Sept 2025
• Old matrix included too many thresholds and was
overly restrictive
• Required 3 quotes even at low dollar levels ($15k-
$25K)
• Generated 1,600+ additional POs annually, slowing
project and service delivery
• Manual bid openings were paper-intensive and prone
to errors
Why Change is Needed
4City of Sunnyvale – Ordinance Amendments– Sept 2025
Informals (Requires 3 Bids/Quotes)
Comparison to Other Agencies
CITY Goods General Services
Sunnyvale $15,000.01-$25,000 $15,000.01-$25,000
Mountian View $.01-$250,000 $.01-$250,000
Palo Alto $10,001-$50,000 $10,001-$50,000
Santa Clara >$15,000-$250,000 >$15,000-$250,000
Milpitas $10,000.01-$50,000 $10,000.01-$50,000
San Jose $10,000-$250,000 $10,000-$250,000
Saratoga Up to $25,000 Up to $25,000
Gilroy $5,000 to $24,999 Up to $49,999
San Mateo $20,000 - $100,000 $20,000 - $100,000
5City of Sunnyvale – Ordinance Amendments– Sept 2025
• Over $100k - Formal bids
• Over $250k – Council approval
Goods & Services Thresholds (Old vs. New)
Old (2022)
• $15k-$25k – 3 Quotes
Required
• $25k-$100k – Written
IRFP ,IRFQ,ERF
New (2025)
• No minimum up to
$50k
• $50k-$100k – 3 Quotes
Required
Still Required
6City of Sunnyvale – Ordinance Amendments– Sept 2025
• In-person, paper-based bid
openings
• Risk of misplaced or late bids
• Manual tabulation and
limited visibility
• Paper-intensive and
inefficient
• Secure, time-stamped
electronic submissions
• Automatic public opening
deadline
• Vendors see results online in
real time
• Paperless, transparent, and
cost-effective
E-Procurement Transitions (PlanetBids)
Old Process New Process (PlanetBids)
7City of Sunnyvale – Ordinance Amendments– Sept 2025
• Policy Flexibility – Director of Finance authorized to interpret and adopt policies
• Delegated Authority: City Manager with Finance/Public Works may delegate procurement authority
• Increases responsiveness and reduces bottlenecks
Delegated Authority Updates
8City of Sunnyvale – Ordinance Amendments– Sept 2025
Key Benefits Fiscal Impact
Key Benefits & Fiscal Impact
• Efficiency: Up to 1,600 fewer POs annually
• Speed: Faster project delivery
• Fairness & Transparency: Equal vendor access via Planet Bids • Cost Effectiveness: Less staff
time; reduced admin costs
• Modernization: Aligns with peer cities & industry standards • Sustainability: Reduce paper processes
• No direct final cost
• Possible nominal price increases
• Offset by:
Staff time savings
Reduced administrative
overhead
Faster delivery of
services/projects
9City of Sunnyvale – Ordinance Amendments– Sept 2025
• Bid Thresholds
• PlanetBids e-procurement system
• Delegated authority
Recommendations and Next Steps
Introduce Ordinance Amending Chapters 2.08 & 2.09
Timeline:
• September 9, 2025: First Reading
• September 30, 2025: Second Reading
• October 30, 2025: Ordinance effective
• Rollout: Updated procurement policies and procedures
implemented immediately following adoption