SR-8-D (10)
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CA ltl.K: SSS me
Council Mtg.
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Santa Mo California
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TO:
Mayor and City Council
FROM:
City Staff
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SUBJECT: COMPETITIVE BID PURCHASING PROCF.nURES
MAY 8 1979
Introduction
This report transmits for introduct,_.on and f~~_. st d
-'- reaing
the attached ordinance which provides for the amendment of Santa
Monica Municipal Code Sections 2506. 2506A, 2507, 2508,2508A and 2509.
BackQ:round
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The competitive bid purchasing procedures set forth in
Santa Monica Municipal Code Sections 2506, 2506A, 2507, 2508, 2508A,
and 2509 were last amended on April 10, 1951
Since that time, the
council has authorized exception to the competitive bid procedure, and
inflationary factors have lowered the purchasing power of the two
thousand dollar ($2,000) minimum which is the amount required to
trigger t~2 fo~<&: co~pet~tive bid procedure. At this time, all
purchases under two thou3and dollars ($2,000) are subject to informal
bid procedures. For the current fiscal year, 41 16% of all purchases
obtained through the informal bid procedure were for SUflS less than
two hundred fifty dollars ($250.00). Reduction in the number of formal
bids, revision of the informal bid requirements and the establishment of
purchase order procedures for individual purchases under two hundred
fifty dollars (S250.00) will result in signiflcant saving to the City.
The attached ordinance establishes a minimum threshold for
formal bid procedures at five thousand dollars (S5,OOO), a two hundred
fifty dollar ($250.00) minimum threshold for informal bid procedures
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MAY 8 1979