Appendix C: Key Differences between Purchasing Policies #1600-015 and #1600-021

Appendix C

Key Differences between Purchasing Policies #1600-015 and #1600-021

Element	2004 Policy 1600-015	Proposed Policy 1600-021	Notes on Proposed Policy
Approval authority	Up to $1,000 staff $2,500 specific positions $15,000 dept heads $50,000 CAO over $50,000 Council	Up to $5,000 staff $25,000 directors $75,000 CAO Over $75,000 Council	• Aligns with procurement thresholds at higher dollar amounts
Procurement thresholds	< $500 direct award $500-$5,000 telephone quotes (preferably 3) $5,000-$10,000 written quotes (at least 3) $10,000-$25,000 RFQ or RFP Over $25,000 tender or RFP	<$10,000 direct award $10,000-$24,999 written quotes (at least 3) $25,000-$74,999 written quotes (at least 3) OR public competitive process = >$75,000 public competitive process	• Higher thresholds for professional services and construction • Aligns with internal trade agreements • Invoice amount frequency distribution indicates that a threshold of $10,000 captures about 90% of all purchases • About 3% of all purchases are $25,000 or greater
Procurement methods	Included with procurement thresholds under “purchasing procedures” section	• Expanded list with descriptions • Direct award permitted above threshold where it can be demonstrated that only one vendor can supply the good or service • Notice of intent to award required where: 1. Public competitive process would normally be required AND 2. Cannot demonstrate that only one vendor can supply good or service	Notice of intent requirement reduces risk and perception that vendors are being unfairly excluded from competitive process
Exemptions	Specific categories identified	No exemptions; direct award permitted for specified circumstances	Broadens application of policy and simplifies document
Administrative procedures	Throughout document and in 3 appendices	Eliminated	Keeps document at policy level and simplifies document
Review schedule	Annually	Every 5 years	Greater efficiency
Objectives	Not distinctly identified	Specifically identified	Clarity around reason for policy
Responsibilities	Not distinctly identified	Specifically identified	Clarity around individual scope of responsibility
Ethical considerations	Not distinctly identified	Specifically identified	Clarity around conduct
Sustainable procurement	Briefly referred to in purpose	High level broad statement