HomeMy WebLinkAbout04.b. Receive information on blanket purchase ordersPage 1 of 4
Item 4.b.
Central Contra Costa Sanitary District
August 29, 2017
TO: FINANCE COMMITTEE
FROM: STEPHANIE KING, PURCHASING AND MATERIALS SERVICES MANAGER
REVIEWED BY: PHIL LEI BER, DIRECTOR OF FINANCE AND ADMINISTRATION
ANN SASAKI, DEPUTY GENERAL MANAGER
ROGER S. BAILEY, GENERAL MANAGER
SUBJECT: RECEIVE INFORMATION ON BLANKET PURCHASE ORDERS
At the July 25, 2017 Finance Committee meeting, Chair Nejedly expressed the view that if the District
issued blanket purchase orders (BPOs) they should be prioritized to companies inside the District's
service area. Member Pilecki inquired if the District has BPOs with vendors outside the service area. The
following is staff's response to the Committee's comments.
General Background on BPOs
BPOs are designed to expedite the purchase of repetitive, high-volume, low -dollar -value goods and
services without specific authorization from Purchasing. Typically, BPOs may not be used for a single
order in the amount greater than $3,500, which is the limit at which competitive pricing must be obtained.
The factors that are considered when awarding BPOs are the vendor's ability to meet the
District's requirements, cost, availability, quality of product/service, location, response time, and customer
service, to name a few. However, since these purchases are under the competitive price requirement
of $3,500, the division selects the vendor that best meets its needs. Oftentimes, the District will utilize
existing government contracts that have been competitively priced, which often yields significant savings.
Practice for BPOs with Vendors Outside the District's Service Area
The District currently has BPOs with vendors both inside and outside of our service area. Currently
staff does not specifically track whether vendors are located within our service area. Obtaining this
information would be possible but would require additional research. With respect to all vendors including
BPO vendors, the District maintains a "remit to" and a "purchasing" address for companies in the
accounting system; however, this may not be a reliable indicator of local presence, which would require
further definition. Cities and agencies that have a local business preference program typically need to
carefully define the requirements for companies that will qualify for the preference; because the District
does not currently have such a policy, this analysis has not been performed.
History of Local Vendor Preference Policy Consideration at the District
Staff presented options on a local vendor preference policy at the February 19, 2015 Board meeting, and,
at that time, the Board was not in favor of adopting a local vendor preference program. Therefore, there
is presently no preference given to local businesses within the District's service area. When the Board
August 29, 2017 Regular Committee Meeting Agenda Packet - Page 133 of 158
Page 2 of 4
made this decision, it asked for a report back on practices that help encourage local vendor participation in
District business. Attached is the information that was provided to the Administration Committee, and
these practices are still applicable.
Should the Committee require further information, staff will be available for any questions at the meeting.
ATTACHMENTS:
1. March 31, 2015 Memo to Administration Committee re: Local Vendor Practices
August 29, 2017 Regular Committee Meeting Agenda Packet - Page 134 of 158
Page 3 of 4
M4 Central Contra Costa Sanitary District
March 31, 2015
TO: ADMINISTRATION COMMITTEE
VIA: DAVID HEATH, DIRECTOR OF ADMINISTRATION
FROM: STEPHANIE KING, PURCHASING MANAGER fS K
SUBJECT: LOCAL VENDOR PRACTICES
The Board had previously directed staff to evaluate options the District may have in
creating a local vendor preference policy. Staff brought this information to the
Administration Committee on January, 13, 2015. The Administration Committee
directed staff to bring this issue to the full Board to see if there was an interest in
pursuing a policy to allow preference to local vendors. Staff presented this information
to the Board of Directors on February 19, 2015 and the majority of the Board was not in
favor of pursuing a policy. The Board was, however, interested in staff bringing back
information to the Administration Committee related to the informal District practices that
help to encourage local vendor participation in District business.
There are a variety ways to help encourage local businesses to participate in District
business, all of which we currently practice at the District when applicable:
• Depending on the cost of the purchase, we can limit the number of vendors
submitting quotes to local vendors only, as long as there are enough local
vendors that supply the particular product/service requested.
• Some national government contracts allow credit to be given to local distributers.
• We may include the cost for freight, delivery, or other transportation costs in the
evaluation to determine low bid. This benefits local companies.
• Response time requirements for service contracts often give an advantage to
local companies.
• Our online bidding system allows us the ability to limit the solicitations to a
specified geographical area when applicable.
• Local companies are more likely to attend job walks, giving them a better
understanding of the job and may also allow them to propose alternative plans at
a lower cost for confined space entry jobs.
August 29, 2017 Regular Committee Meeting Agenda Packet - Page 135 of 158
Page 4 of 4
• Utilization of procurement cards allows for low dollar purchases to be awarded to
local companies by District staff due to convenience..
To the extent available, award lower dollar purchases not subject to the
competitive quotations requirements, to local companies.
We may give consideration to local consultants when awarding agreements for
professional consulting services.
August 29, 2017 Regular Committee Meeting Agenda Packet - Page 136 of 158