TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Amendments to Board Policy 465
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider approving amendments to Board Policy 465 - Procurement Policy in order to maintain compliance with Federal Transit Administration (FTA) regulations, as well as capture efficiencies in procurement cycle times.
Body
BUDGETARY/FISCAL IMPACT:
Outside of staff time, no additional costs are associated with the implementation of the recommended amendments to the procurement policy.
BACKGROUND/RATIONALE:
The current policy does not reflect all of the current FTA established thresholds. This has resulted in longer than necessary process times to approve projects.
Staff recommends the following changes:
* Increase General Manager signature authority from $100,000 to $250,000 for Request for Proposals (RFP) and Invitation for Bids (IFB); the FTA threshold is up to $250,000 for Small Purchases.
* Increase General Manager signature authority from $2,500 to $10,000 for Micro Purchases; the FTA threshold is $10,000.
* An Independent Cost Estimate shall be required for purchases above the simplified acquisition threshold of $250,000, per 2 CFR 200.
* For pre-solicitation requests
o Projects less than $500,000 are approved by the General Manager.
o Projects greater than $500,000 are approved by the Board.
* Add Vendor Management and Debarment content to ensure vendor accountability.
* Add Notice of Intent to Award language.
ADVANTAGES/DISADVANTAGES:
These proposed revisions will allow the District to move more quickly through the solicitation process. Departments can advance their procurements, resulting in improvements in process time.
Adding a section on vendor performance and debarment provides alternatives to improving vendor deliverables, as well as debarring a vendor when it's appropriate.
There are no disadvantages to the proposed changes as they would allow the District's procurement pro...
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