HomeMy WebLinkAboutO-08349otbi NANc N0 ►.. 49_ Y
O kb1 vANC' AMtND tNd
8-ge Pi6N 16=25 b T!;k; Oft .
Cleft U ' 1•il +tAl ENTITttb
MtpRET tUP t1ASES y DY E TAtL1SI-tINd
A NE14 etiti rc COL' $a, 00 00 Of4 OPEN
. MARd&t T RCfi +S8s5 ;
PR0V1bI AN EP 'Ec}i`ZVE DATE. .
WHEREAS, the present One 'Thousand Vivo tint -kited Dollars
($1, 500.00) ceiling was established in 1945; and
WHEREAS, the previcus ceiling of One Thous ind Five
Hundred Dollars ($1,500.00) is not a realistic figure; and
WHEREAS, the City of Miami could realize, a yearly sav-
ing' in .excess of Twelve Thousand Dollars ($12,000.00.)
in advertising and salary costs;
NOW, THEREFORE, BE IT ORDAINED BY THE COMMISSION.OF
THE CITY OF MIAMI, FLORIDA:
Section.1. Section 16-25 of the Code of the City of
Miami is hereby amended to read: 1/
All purchases, for whatever purpose, of
supplies, materials, equipment or con-
tractual services, except professional
services, the estimated cost of which
is less than Gee-Teeusawg-Five-Rit i4re4
Four Thousand Five Hundred Dollars may.
be made in theopen market without news-
paper advertisement or formal contract
and without the necessity of observing
the procedure prescribed by the preceding
section for the award of contracts; pro-
vided that no purchase amounting to more
than One, Thousand Dollars but less than
6f►e-W iektsaaEI-F ve-He tdree Four Thousand
Five Hundred Dollars, shall be made
without the express approval: of the city
manager.
A11 open-mar}:et purchases shall, HHeteve
0Eaetiea 3:e ; -lie- iaeedee-at-leash-0h4Fee
eempeti,tivo--44:4s-aRA7e all be awarded c-ij
the basis of the bid most advantageous to
the dity. The purchasing agent may
solicit bids by mail, by telephone or
by public noticeon a bulletin board
in the courthouse. Ail bidsshall be
in writing whenever practicable, and
the purchasing agent shall keep a
record of all open -market orders and.
the bids submitted in competition
thereon and such records shall be open
to public inspections
Section 2. It is the intention of the Ci.t ► Commission
andit is hereby ordained that this section of 16-25 shall
become and be made a part of the Code of the City of Miami.
Section 4. The; provisions of this ordinance shall
become effective on , 1974'.
PASSED AND ADOPTED .this day o
Attest:_
PREPARE;.AD PROV D BY:
1V
Mikele Carter
Assistant City Attorney
APPROVED. S TO FORND CORRECTNESS:
Of
�
.•ohn .S. i,1oyd .- City At o ey,,,
1/ words stricken through sha11 be el etemain ng pr Cored w are:
e
constitute the amendment proposed. now in effect and -remain unchanged.
MAYOR
City Clerk,
, 1974.
MIAMI N VI1w
At b BARN h€ b
�i $Milt won ! ttitddy anti .
tioli lati
J itbiii{ bale coitiitir, fdriiM
- ItAte of ht$hibA
OdUNff of bAbt::
betete t;Ne thidersIgried, authority pettiohatiy
belted_RUth Glitter, . who oh oath .sdys that she ,IS
A33Istartt, td the Publisher 'of the Miami Review And
Dilly Record, a daily .(except SatUtda ", Sunday. and
In
Dagda COUhty, yFlorida:stphatethe at eched Coblished py of advet•
tisettieht, befit§ a Legal Adveltisemeht Or Notice In
the letter of
0 tNANCE No. 8349
hi k5t Court.
eshpUblished in said newspaper in the Issues of
Jatitiary 38t 1975
" • Atfiant further Says that the Said Miatnl Review
and Daily Record is a newspaper published at Mlaml,
In said Dade County, Florida, and that the Said hews.
Pape has heretofore been continuously published in
said bade County, Florida, each day (except Saturday,
Sunday and Legal Holidays) and has been entered es
Second class mail matter at the post office In Miami,
in Said Dade County, Florida, for a period of one year
next • preceding the first publication of the' attached
copy of advertisement: and affiant further says that
- she has neither paid no promised any person, firm
or. COrporati0n any discount, rebate, commission or
refund for the purpose of securing this advertisement
" for publication in the t d• also, •
( ,;r,
twOrn to and subacribed,befbre me this
i.l` 30th t' January 7 5
19
' rA�) �/i:
a»:.!.•'.r k�. -1 i:i ; Mar�rewT rcVth
otar�t pubfle;'ste: No� -ride et Large.
(SEAL) U UtiiUi,
My Commission exp • er .1, . 1977.
- t'ifit ht Stt %ftc
t1,1tsE: L:"t)t'� F$i t: t.tlftli)A
Ail tnta;baintt.-Mtt, Inicn notice
that hh the 23rd>dhY'nt dnhttntP.
15175 the Cninmis.ieh of 'the'MS',
nt Mttanii. i lOtII11 ; hdobtrd hh •
orditinhce entitled•
—
AN oRrsiNA t i ttti fi-
rii1. SECTIoN 16-25. OF
THE COIF:- OF,'.TIl1= CITY
"OPEN MARt;1; h PLT11-
CHASISS", 1;Y ESTABLISII-.
ING A NEW 'c11L1 4d O>:
$4,500d n ON OPEN :1t AR.
NET PURCttASES:'I
•
which is derignateci Otdihhhcr;
No. 83a9.
II, D. SOt1TFiERN
CITY- CLERK
C1Ti (bF MIAMI.
FLORID A
PutWlicati' h ctf thin rinti-" rth
the 3�*th ctIY ct Jnhua»F; 1675.
1/E-0 i .<,'N a -: 1 M 11116.
CITY,: OFMIAMI'j " r'LOR1UR
Ali interested will take hot .Ce that on the 23r"d day of
January 1975 the Commission of the City of ttiami y Ftoricla adopted an
ordinance entitled
—
which
AN ORDIgANCE AM8NDItc
SECTION 16-25, OF THE CODE OF THE
CITY OF niAn1,' .ENTITLED ''OPEN
MARKET PURCIJASES", . fly FSTALLISHING
A. NEW CEILING OF $4 , 500 .00 ON OPEN
MARKET T PURCHASES;
is designated Ordinance No. 8349.
H.D. SOUTHERN
CITY OLERK
CITY OF MIAMI , FLORIDA
TO
FROM
CITY or rLORID A
INTER -OFFICE MEMORANDUM
l-Ionoral)le Members of
The City Commission
/efrkotat4-01.s.4.4.
P. W. Andrews
City Manager
UAfE
SUDJEC.1.
fit- FERENCES
E.NCLO3URES:
hEC 1 0 1974
Proposed Adjustment in the
Formal Bid Ceiling
As a matter of convenience,. I am transmitting copies of previous
correspondence, reference the proposed adjustment in the formal
bid ceiling.
cc:
Honorable Maurice A. Ferre, Mayor
Honorable J. L. Plummer, Jr., Vice Mayor
Honorable Theodore R. Gibson
Honorable Rose Gordon
Honorable Manolo Reboso
FILE
Ctii o MtAMti, fLts#IbA
INtER-Dr rIcE MEMOrIANf UM
Honorable :Members of
the City Commission
P. W. Andrews
City Manager
bAtEt
611nJEett
Zvi` $ 1 1974
P.aising the Formal Bid Ceiling
and the Elimination of Three Bid
Solicitation
REirtRENCE!t:
ENcLOlURE3t
Fact Sheet (1)
Fact Sheet (2)
Recent analysis in the Finance Department by one of the Manage-
ment Analyst Intern Tarns revealed additional information
previously unrecognized with regard to the need for raising the
formal bid ceiling above the current $1, 500 level. This analysis
also revealed that considerable cost avoidance opportunity exists
in the current procedure of processing purchases of a low cost
nature ($25 or less) which require the same handling as do pur-
chases of far greater value e.g., $900 purchase.
Substantiating information contained in the two Fact Sheets attached
to this memorandum outlines the cost avoidances and benefits which
would accrue to the City of Miami by (1) raising the formal bid
ceiling from $i, 500 to at least $4, 500 with a cost of living clause
based on the Consumer Price Index to be included; and, (2) elim-
inating the soliciting of a minimum of three bids on purchases of
$25 or less.
The cost avoidances realized through raising the formal bid ceiling
to at least S4, 500 would conservatively be $12, 000 per year; and
should the Purchasing Division no longer be required to solicit a
minimum of three bids on purchases of $25 or less, a minimum
cost avoidance of $5, 500 annually could reasonably be expected.
I am requesting that the City Attorney prepare the necessary ordi-
nances, for the Commission's consideration, for raising the formal
bid ceiling and eliininating the three bid requirement.
cc: City Attorney
Director of Finance
FACT SHEET (1)
1tAISING. THE FORMAL BID CEILING,
i. ,The Increasing Numuer of Purchases Which Must Be Processed Through.
the Formal. Bid Procedure is Gonr,urnin r Valuable Staff Time and Causing
Expensive Delays at the Department Level,
This increase, in the number of purchases which must be processed through
the formal bid procedure, is largely clue to the higher cost of supplies,
materials, and equipment. Unfortunately, the formal bid ceiling has not been
in step with increase s •in the cost of living. As shown in the following example,
the increase in the number of formal bids.has been dramatic --over 100%
during the past four years.
Fiscal Year Formal Bids
1970-71 80
1971-72 110
1972-73 137
1973-74 175
1974-75 204 (estimated)
The Consumer Price Index (base year 1967 = 100) has risen from 53. 9 in 1945,
when the current $1, 500 ceiling was adopted by the City of Miami, to 151.9 in
September, 1974, nearly a 200% increase. Although this in itself is a convincing
argument, there are still other considerations which reinforce the need for an
increase in the bid ceiling to at least $4, 500 including:
It is forecasted that 42. 3% or 87 of this year's Formal bids will fall
between $1, 500 and $4, 500
•
•
Advertising costs alone are $60 per bid
Cost avoidance in advertising and manhours required would be in
excess of $12, 000 per year
There would be a considerable reduction in the amount of time
required by the City and the City Commission to process formal bids
Departments will benefit through more expeditious delivery of
purchases in the $1, 500 to $4, 500 range
More competition between bidders would occur as smaller companies
could submit informal. bids. Many small vendors who could fill
orders cannot afford the bid security
Page 1 of 2
The forrnal bid procedure requests that vendors guarantee this
quoted price for a period of 90 days. Consequently) many
vendors are refusing to submit bids) frequently resulting, in
only one or no vendors making a bid,
,A $5, 000 bicl ceiling is recommended by the International City
1vi,`!na ger'S Association 6?:h t'klitio'll of "Mutucip l Finance Admin.-
istration" published in 1962.
Examples of bid ceilings in other Florida cities are:
Fort Lauderdale
Jacksonville
Pornpan'o' Beach
- North Mimi
Tampa ' ' •
$5, 000
$4, 000
$5, 000
$5,000
$2, 500 (Being raised to $5, 000)
2. For the Foregoing Reasons it is Recommended That the Formal Bid Ceiling
Be Raised to $4,'500 with a Cost of Liv .ng Clause to be Included
It may appear that increasing the ceiling from $1, 500 to $4, 500 and the •
inclusion of a cost of living clause is a bold step; it is, but it certainly is not
one without precedent. Nor is it believed that there will be any loss in con-
trol, quite the contrary;- for it should provide: •
Better competition
More rapid processing of bids
Reduce 'costs
Provide expeditious delivery of purchases
It should he remembered that the City Manager's approval will continue to be
required for all purchases in excess of $1, 000. Furthermore, all purchases,
except in the most unusual circumstances, have already been approved by
the City Commission's adoption of the budget.
".%,a aa[~IrtlaMeNtiWacd; z r r, x
Page 2 of 2
•
FACT SHEET (2)
ELIMINATION OF' _THREE IiID SOLICITATION
Elimination of Quotes on Requisitions Amounting to $25 or Less Would
Reduce Man Hours Required for Telephoning and Expedite the Purc'tia:;i.nr,
Process
Approximately one third of all requisitions are for items of low unit cost and
low volume nature, e.g., desk pad ink blotters. It is not uncommon for
these requisitions to be for a. total amount of $25 or less.. Frequently these
requisitions amount to only a few cents. However, the requirements are
such that it is expected that at least three vendors be contacted for price
quotes. This does not necessarily infer that only three vendors be contacted
as some vendors may not stock or have on hand the desired item. Under the
present circumstances it is necessary for two purchasing employees to work
full time and a third employee, half of his time, to contact vendors for price
quotes.
Three price quotes are required for these low
cost, low volume purchases under the present system
Approximately 1/3 of all requisitions are for $25
or less
It is recommended that only those requisitions for more than $25 require the
obtaining of a minimum of three quotes.
Anticipated benefits are:
The number of calls for bids would be reduced by at
least 25%
•
More expeditious processing of requisitions would
result from the elimination of quotes for those of low
unit cost and low volume
Cost avoidance because of man hours saved is estimated
to be at least $5, 500 annually
Page 1 of 1
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TM5.: k'ONPARTXSAN VOLUNTA'?Y CITIZ! S' ACTION COtl'MITTE ' TO
FIT I'N'~L ATION HAS PECO,Mm!F.:!,nED a 1O-"OI?,T PROGRAM WHICH I
PLAN T1 PASS ON TO THE NATION) IN A TELEVISED SPEECH IN KANSAS
CITY 'rt}ESDAY OF THEIR RECOMM�'DATIONS
It;PLEME9TE'0 BY STATE AND LOCAL AUTHO'?ITIES:
(1) CO9SE�VE !E?CY h•Y ':''FORC??'.3 TrT'' 55-MILE PER HOUR SPEED
' I:' IT AND (2) T.•t T`nIN.1TE O'JTMO"''� ar•- J1-►�''TQ'IJ THAT KEEP COSTS
2_7 r)r'nS AND SEA �r7';H A"}i)rE3ULAiIONS T}!A,
'\')V'{`!CE 'EFFICIENCY, HEATH A';^ SAFETY. THE CO?VITTEE ALSO
ACKE!) '1E TO CALL !'PON A! L GOVEZ.')O 3S, r?AYO2S AND OTHER
LOCAL :OFFICIALS TO SET 'IP SI"!IL t? ? VOL'J?,TA ZY CITIZ'+:')S' ACTION
C7:�:IITTEES TO FIGHT INFLATION I'' TF!E STATES AND COMMUNITIES.
I '.Z) w YOU TO ASSIST PY P;?OM2 T ACTIO') ON THE COM71ITTEE' S
-R'C'1'^.MG9OATIONS. THANKS FOR YOU/ COoPE?ATIvc:‘:.
'tF3ARDS.
GERALD Z FORI'
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