HomeMy WebLinkAboutIR 8350 INFORMAL REPORT TO CITY COUNCIL MEMBERS No, 8350
Date: August 28, 2001
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0 To the Mayor and Members of the City Council
e6kPage I of 2
SUBJECT: New Purchasing Laws
The purpose of this Informal Report is to inform the Mayor and City Council about the recently-
approved State of Texas legislation discussed below. This legislation relates only to the purchase
of goods and services and not the construction of facilities. This information was presented to the
Governmental Relations Committee on August 9, 2001.
Uniform Electronic Transactions Act: Specifies definitions and procedures relating to
electronic commerce transactions and signatures, providing the legal foundation for
Electronic Bids and Proposals as well as Reverse Auctions.
Electronic Bids and Proposal: Allows municipalities to electronically receive responses
to Invitations to Bid and Requests for Proposal. The law also specifies the governing
body must adopt rules regarding procedures and security of electronic receipt of bids
and proposals. The Purchasing Division and IT Solutions Department are preparing
operating procedures and security provisions for the City Council's approval.
Reverse Auctions: Provides that reverse auctions may be electronically conducted at a
pre-advertised Internet address. Reverse auctions advertise the goods or services that
require formal acquisition via Invitation to Bid. Bidders that are anonymous to each
other submit progressively lower prices until the advertised bid closing time is reached.
The Purchasing Division and the appropriate operating department will then evaluate all
bids and make award recommendations in accordance with City Administrative
Regulation C-9, "Procurement of Goods and Services".
Interlocal Contracting: Expands interlocal contracting to allow Interlocal contracting with
any public agency of any State. Interlocal contracting was previously restricted to only
Texas public agencies.
Municipal Bid Limit: Raises the municipal bid limit from the current $15,000 to $25,000.
The bid limit is the threshold at which formal, sealed Invitations to Bid, Requests for
Proposal and Requests for Qualification are required. The City Council will have to
amend the City Code to adopt this new limit.
Award of Contract: Amends Section 252.043 of the Local Government Code that
governs award of bids for goods and services. Current law specifies awards shall be
made to the low bidder meeting specifications. This legislation changes the concept to
"best value" purchasing where eight award criteria, including low price, are allowed to
be considered in a bid or proposal evaluation and recommendation, allowing 'the City to
obtain the overall best value in the acquisition process.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8350
TE Date: August 28, 2001
To the Mayor and Members of the City Council
Page 2 of 2
SUBJECT: New Purchasing Laws
The new legislation described above addresses three key issues: 1) the increased bid limit, 2), the
newly authorized use of electronic purchasing methods, and 3) "best value" purchasing practices.
These changes will increase speed, efficiency and competitiveness in the procurement of goods
and services. The Governmental Relations Committee endorsed adoption of these enhancements
to our purchasing procedures at its August 9, 2001 meeting.
An M&C will be presented to Council raising the bid limit from $15,000 to $25,000 and adopting
any rules required to utilize the electronic provisions of the new law. Once Council approval is
received, the Purchasing Division will revise Administrative Regulation C-9, "Procurement of
Goods and Services" to incorporate these changes into the City's purchasing procedures.
Gary W. Jackson
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
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