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HomeMy WebLinkAboutIR 7933 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7933 Fost (rfjA S To the Mayor and Members of the City Council July 11, 1995 SE V At GX Subject: MAILING OF BID DOCUMENTS BACKGROUND In the procurement of supplies and services, it is the practice of the Purchasing Division to mail a complete bid package to all vendors located within the city,that could potentially provide the specific commodities and services required. If vendors are not available within the-city, the bid packages are mailed to any vendor believed capable of responding to the bid request. Annually, the Purchasing Division processes about 1,000 bids, mailing an estimated 10 bid packages on each bid. The postage costs for mailing out 10,000 bid packages is approximately $13,000. The new M/WBE ordinance (Ordinance No. 11923) that became effective June 1, 1995, requires all vendors within the market place be notified of competitive bids. The market place is the Fort Worth/Dallas metropolitan area. Mailing bid packages, along with the additional M/WBE information to accompany the bid (if a bid is submitted), to all potential vendors in the metropolitan area will more than double the postage expenses in the Purchasing Division, to an estimated $25,000 -$30,000 per year. State law only requires that a bid be advertised once a week for two consecutive weeks. It does not require mailing the bid documents to notify potential vendors. The new M/WBE ordinance requires vendors be notified of the bid, but it does not require mailing the bid DISCUSSION The Purchasing Division is proposing to change its long practice of mailing bid documents to notify vendors of a competitive bidding opportunity. A post card will be mailed to potential vendors in the metropolitan area, notifying them of the bid, when the bids will be opened, and how to obtain a set of the bid documents. Interested vendors can pick up a bid package in the Purchasing Division, or send a self-addressed, stamped envelope for a copy to be mailed to them. The M/WBE ordinance requires bids be open for a month, which would allow vendors sufficient time to obtain a bid package. It is estimated that the post card notification procedure will save approximately $20,000 per year in mailing costs and additional administrative efficiencies will also be realized. Unless otherwise directed by Council, we will proceed to implement this change in Bob Terrell CITY SECRETARY City Manager W0411 " , ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS -- —