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File #: 2025-0070   
Type: Agenda Item Status: Passed
File created: 10/16/2024 In control: City Council
On agenda: 11/5/2024 Final action: 11/5/2024
Title: Approve and adopt update to the City of Ocala's Procurement Policy
Code sections: 2-386 - Establishment; Functions of Procurement and Contracting Department
Attachments: 1. FOR COUNCIL - City of Ocala Procurement Policy - November 5, 2024, 2. Summary of Modifications to Procurement Policy (10-001-2024), 3. January 2020 - Procurement Policy, 4. Ordinance No. 2017-34, 5. 3-15-2017 Council Report, 6. 8-19-2014 Council Report

Submitted By: Daphne Robinson

presenter

Presentation By: Daphne Robinson

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Department: Procurement and Contracting

STAFF RECOMMENDATION (Motion Ready):

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Approve and adopt update to the City of Ocala’s Procurement Policy

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OCALA’S RELEVANT STRATEGIC GOALS:

Fiscally Sustainable, Operational Excellence

PROOF OF PUBLICATION:

N/A

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BACKGROUND:

City Council’s strategic priorities of fiscal sustainability and operational excellence include the provision of city controls for the effective and efficient use of resources per applicable laws, ordinances, contracts, policies, and procedures.  To promote responsible spending and improved accountability, the City must consistently utilize an effective and efficient process for procuring goods and services, and its records must demonstrate that public funds are being properly used to fulfill the legally established responsibilities of the City Council. 

 

As set forth in Section 2-387 of the Code of Ordinances for the City of Ocala, the City’s Procurement and Contracting Officer is responsible for developing, preparing, adopting, and enforcing standard procurement and contracting policies and procedures in accordance with Florida law and City policy. Section 2-387 clearly defines the role of procurement and contracting as a City function and defines the role of the Procurement and Contracting Department as independent from all other City departments.  The independent exercise of procurement authority is an essential piece of the City’s overall system of internal controls. 

 

The City of Ocala’s Procurement Policy was last updated in January 2020.  During the period June 2022 through September 2024, the Procurement and Contracting Officer conducted an organizational assessment of the City’s latest Procurement Policy with input from the City’s internal and external auditors, the City Attorney’s Office, and audit reviewers with the federal funding agencies resulting in recommendations to modernize, streamline, and update the City’s current policy.  The Procurement and Contracting Officer benchmarked the City’s existing policies and procedures against those set forth by the Institute for Public Procurement (NIGP), federal laws (i.e., Code of Federal Regulations), the American Bar Association’s Model Procurement Code for State and Local Governments, and procurement policies of other municipalities, counties, and agencies throughout the state of Florida to identify better practices and procedures to meet Council’s strategic priorities. 

 

                     The NIGP is a national, membership-based non-profit organization providing support to professionals in the public sector procurement profession. The NIGP prescribes the standards public organizations should develop in their procurement manual.  According to the NIGP “Principles and Practices of Public Procurement,” procurement organizations should develop a comprehensive policy manual that clearly defines authority and responsibility and establishes guidelines for the organization and the procurement professional to follow when carrying out their responsibilities. 

                     Florida Statutes specify procurement-related laws, codes, and statutes applicable to Florida and its political subdivisions, counties, municipalities, and agencies.  The City of Ocala is required to conform to all applicable provisions of the laws of the State of Florida and the United States. 

                     The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for federal awards (the “Uniform Guidance”) set forth certain guidelines for the procurement of and contracting for commodities and services when federal funds will be utilized to pay for the cost of a contract, either in whole or part.  2 Code of Federal Regulations §§ 200.318 through 200.327 specifically apply to the City of Ocala as a non-Federal recipient of federal awards.  The Procurement Standards in the Uniform Guidance provide coordination, simplicity, and uniformity in the federal acquisition process.

                     The 2000 ABA Model Procurement Code for State and Local Governments provides principles and policy guidance for managing and controlling procurement for public purposes, administrative and judicial remedies for resolving controversies relating to public contracts, and ethical standards governing public and private participants in the procurement process. The Code was approved by the policymaking body of the American Bar Association on July 11, 2000.  The ABA Model Procurement Code for State and Local Governments was developed in part with NIGP.

 

FINDINGS AND CONCLUSIONS:

A summary of the revisions made for better practices and compliance is attached to this Agenda Item for Council’s review.  The Procurement Policy has been updated to achieve the following objectives: 

 

                     standardize procedures to promote organizational efficiency;

                     foster a collaborative approach to procurement that provides support for City staff, departments, and other officials in providing services to the community;

                     reinforce the City’s existing procurement values, ethics, and transparency to maintain the public’s trust; and

                     encourage fair and open competition amongst potential vendors. 

 

Adopting this revised Procurement Policy will modernize practices, improve transparency, and increase the consistency and efficiency of the City’s procurement practices.

 

If Council adopts the revised Procurement Policy, Procurement and Contracting Department staff will work with Departments on the proper execution of procurement processes.  This will include mandatory training sessions for all requisitioners, receivers, and employees with procurement and contracting responsibilities citywide.  These training sessions will be recorded in staff training records, and refresher training sessions will be required annually. 

 

Procurement and Contracting Department staff anticipates a six-month training and implementation timeframe.

 

FISCAL IMPACT:

None.  The Procurement Policy is a tool for procuring goods and services within the City’s existing financial resources.

 

PROCUREMENT REVIEW:

N/A

 

LEGAL REVIEW:

This revised and proposed Procurement Policy has been reviewed by City Attorney, William E. Sexton.

 

ALTERNATIVE:

                     Approve with Changes

                     Table

                     Deny