TO: Board of County Commissioners
THROUGH: John A. Titkanich, Jr., County Administrator
Kristin Daniels, Director, Office of Management and Budget
FROM: Jennifer Hyde, Procurement Manager
DATE: August 5, 2025
SUBJECT: Approval of Changes to Purchasing Manual and Procedures and Authorization
to Advertise for Public Hearing for Changes to Chapter 105 Indian River
County Code
__________________________________________________________________
BACKGROUND
Local procurement procedures are established in Chapter 105 of Indian River County Code, as well as the Purchasing Manual. The most recent changes to Chapter 105 were approved by the Board in 2019, and the last update to the manual was published in the spring of 2023.
Suggestions and ideas for changes to the Purchasing Manual are noted continuously. At the County Administrator’s suggestion, online surveys were distributed to obtain input from department directors through end users. Subsequently, workshops were held with Department Heads, the County Administrator and the County Attorney. Travel and food policy changes requested have already been presented to the Board, and several other proposed changes are being submitted to improve the efficiency and transparency of our procurement processes.
The most significant recommendations relate to financial thresholds. In general, higher thresholds are proposed to facilitate quicker procurement of goods and services, such as vehicles and facility repairs. A higher threshold can also increase the utilization of local and disadvantaged vendors, as formal procurement processes are often identified as obstacles to participation by those categories of businesses. Modification of our thresholds to match the federal limits would also enable us to seamlessly comply with the federal procurement requirements that are effective after a hurricane or other natural disaster. Regardless of thresholds, quotes, formal bids, and bid security are always available tools.
Additionally, the County Attorney has suggested Chapter 105 of County Code be modified to include only the basic procurement requirements, with specific policies and procedures to be moved and defined in the Procurement Manual, which will be incorporated by reference in Chapter 105. Additionally, she recommended the Code reflect that the manual be formally approved by the Board. Current code authorizes the Administrator to approve changes to the manual, while historically the changes have always been provided to the Board, either for approval, or as an informational item. Having all of the procedures and policies in the manual will facilitate more frequent updates, and having the Board as the approving authority will increase transparency.
PROPOSED CHANGES AND CONSIDERATIONS:
1. Rebranding.
The County Administrator authorized the renaming of the Purchasing Division to the Procurement Division, reflecting our focus on overall strategic sourcing, vendor management, and contract administration, rather than simple transactional purchasing. As such, we recommend a change to the title of the policies and procedures manual from Purchasing Policies and Procedures Manual to Procurement Policies and Procedures Manual.
2. Increase to Quote Threshold (Procurement Manual).
The current quote threshold (above which three quotes are required) is currently $3,500 per unit. Staff recommends increasing this threshold to $10,000, to shorten the time to obtain minor goods and services. Departments often struggle to obtain three quotes for smaller projects, and frequently the first quote received is expired by the time a third is obtained.
An increase to $10,000 quote threshold would also enable quicker response and repairs during recovery from storm events, in compliance with federal requirements, as our policies will match the $10,000 federal micropurchase threshold. Agencies must adhere to the most restrictive applicable threshold in order to retain eligibility for federal reimbursement. After storm events, many contractors and vendors are over-extended, leading to staff struggles in obtaining the three written quotes between $3,500 and $10,000, currently required under our quote threshold.
3. Increase to Bid Threshold (Procurement Manual)
The Bid threshold, under which three written quotes are sufficient, is currently $35,000, and designated in the Manual. Staff recommends increasing it to $100,000, to shorten project timelines, increase local and minority participation, and reduce procurement and department staff time allocated to developing and drafting of solicitations. This proposed increase is anticipated to result in a 26% reduction in the number of solicitations required, enabling staff more time to focus on continued process improvements, strategic sourcing, and internal and external customer outreach.
Florida Statute currently requires formal bids for electrical work over $75,000, and staff will continue to ensure we are in compliance with that limit, as may be amended. No waivers under higher local thresholds are allowed.
4. Increase to Procurement Manager’s Authority (Currently in Manual; moving to Chapter 105, Code)
The Procurement Manager’s limit of authority has historically been an amount equal to the bid threshold. Staff recommends an increase to $100,000 for the same reasons noted in the recommended bid threshold change. The Procurement Manager is authorized to waive the requirement for quotes up to her authority threshold. It is recommended this authority and threshold be added to code.
5, Increase to County Administrator’s Authority (Chapter 105, Code).
The County Administrator’s authority level is detailed in Code, and currently is $35,000 for services under the consultant’s competitive negotiations act (CCNA), and $75,000 for all other goods and services. Staff recommends increasing this authority to $200,000 for all goods and services, as this amount matches the State threshold above which public construction bonds are required. The County Administrator is authorized to waive the requirement for quotes and bids up to his authority threshold. This increase can again serve to shorten delivery time for goods and services, and also offer more opportunity for local and disadvantaged businesses to work for the County.
The Board will recall beginning with the regular meeting of December 12, 2023, and subsequently every quarter thereafter, the Board is provided a report of items approved by the County Administrator consistent with the authority level approved by the Board. These Quarterly Reports will continue to be provided as an agenda item each quarter.
6. Increase to threshold requiring Bid Security (Currently in Chapter 105, Code; moving to Manual).
Bid security is a bond or other payment to assure the County a bidder will honor their bid and enter into an agreement with the County. This is typically five percent of the total bid price. Code requires bid security be required for all bids over the $35,000 threshold. Bid security can be a hardship for small and other disadvantaged businesses, due to cost, and because many of those firms have a lower dollar capacity to bond. The bonding requirement can therefore limit small and disadvantaged firm participation in formal procurements. Staff recommends the threshold above which bid security is required be increased to $200,000. This would mirror the top limit of the proposed Administrator Authority.
7. Increase to threshold requiring Public Construction, Payment and Performance Bonds (Currently in Chapter 105, Code; moving to Manual).
These bonds protect the County against failure by a contractor or supplier to complete the awarded work, and are currently required for bids over $100,000. Staff recommends an increase to $200,000, to mirror the State’s threshold, and enhance the ability of small or disadvantaged businesses to participate in procurement up to $200,000.
8. Additional Changes to Code:
The requirement for disclosure of relationships has been expanded to include a requirement to disclose if a vendor or bidder is a current county commissioner or employee. This is to increase awareness of and compliance with Florida Statute 112.313.
9. Additional procedural changes to the Manual
The bulk of additional changes to the Procurement manual are clarifications, formatting, procedural enhancements, and updates due to changes in federal and state law (such as GASB compliance for software, and cybersecurity exemptions from F.S. 119). They include:
ü Modifications to Procurement Manual may be submitted to the Procurement Manager at any time, and must be approved by the Board of County Commissioners by resolution.
ü Agreements under County Administrator’s Authority must first be reviewed and approved by the County Attorney, as to form and legal sufficiency, and by the Procurement Manager, as to vendor/supplier qualifications to do business with the County.
ü Acceptance of Bid security Physical, electronic, and complete electronic copies (such as scanned images) of bid security bonds, may be accepted. Certified and cashier’s checks must be physically received in the Procurement Division prior to the deadline for receipt of bids or proposals.
ü Stated geographical preference prohibition related to 2 C.F.R. §200.319, which was required to be restated in local policies, is removed, as it no longer exists. Some State of Florida funded projects may still prohibit preference, but it is not necessary to include a prohibition in our local policies.
ü Domestic preference is updated to include Florida law requiring U.S.-produced iron and steel in construction projects (§255.0993).
ü Termination for Convenience/Non-Appropriation clause is required in all contracts for service or public works, and any other contracts deemed necessary by the County Administrator, County Attorney or the Board. This clause shall provide that the contract may be terminated for convenience and also may be terminated if the Board of County Commissioners fails to appropriate funds for the contract.
ü Euna Solutions/Bonfire has been defined as our e-bidding solution.
ü Interested party is defined as an actual or prospective bidder or proposer whose direct economic interest would be affected by the award of a contract or by the failure to award a contract. (See Federal Acquisition Regulation (FAR) 33.1). This defines parties eligible to submit a protest in relation to a solicitation.
ü Job Order Contracting (JOC) was previously referenced, but is now defined as a maximum dollar value or a fixed-term construction contract resulting from a competitively bid solicitation in which the contractor will perform according to separate job orders issued during the term of the contract.
ü Quote, Requisition and Purchase Orders are now defined.
ü Reverse Auction is added as a real-time, sealed procurement process in which bidders compete to provide goods at the lowest selling price, in an open and interactive environment.
ü No Solicitations other than requests for quotes may be issued by any department or division, other than the Procurement Division. This has always been practice, but needs to be reflected in policy.
ü Prohibited Practices are added, to include: Quote/bid shopping; public employees selling goods or services to their agency (per F.S. 112.313) and a list of some items prohibited from purchase.
ü Employee purchase with personal funds is not authorized.
ü Invoice payments are to be made in accordance with statute.
ü Recommendation of award must be submitted to the Procurement Division providing sufficient time for public notice and allowing time for receipt and review of any associated protest.
ü Selection committees shall include a minimum of one member outside the originating division.
ü Ranking procedure for RFP/RFQ is modified to match the process used in our e-procurement and scoring system.
ü Ranking of firms in an RFQ are no longer required to be presented to the Board prior to negotiation with the top ranked firm, to shorten the time between solicitation and final execution of agreement, and to avoid lobbying and other public influence on the process. No change to award processes are made.
ü Procedures for handling an unsolicited bid are provided.
ü All Changes to Board-approved awards must be approved by the Board, unless otherwise specifically designated by the Board.
ü P-Card procedures are updated to mirror previously-approved changes to the Travel and Purchase of Food Items policies, and to allow for more severe disciplinary response to violations.
ü Section 10 has been updated from only Information Technology procurement procedures, and to include other special procurement procedures for cybersecurity related products and projects, and vehicle and vehicle maintenance procurement.
Summary of requested threshold changes:
|
|
Pre-2019 |
Current |
Proposed |
|
Quote Threshold |
$1,000 |
$3,500 |
$10,000 |
|
Bid Threshold |
$25,000 |
$35,000 |
$100,000 |
|
Procurement Manager |
$25,000 |
$35,000 |
$100,000 |
|
Bid Security Required |
$25,000 |
$35,000 |
$200,000 |
|
County Administrator |
$50,000 |
$75,000 |
$200,000 |
|
Bonds Required |
$100,000 |
$100,000 |
$200,000 |
BUDGETARY IMPACT
The cost to advertise for the public hearing is approximately $75 and will come from the General Fund/Procurement/Legal Ads account, 00121613-034910.
PREVIOUS BOARD ACTIONS
Ordinance 2019-016.
POTENTIAL FUTURE BOARD ACTIONS
Public hearing proposed for September 9, 2025 and future resolutions for updates.
STRATEGIC PLAN ALIGNMENT
Improving efficiency and transparency related to Governance Goal.
OTHER PLAN ALIGNMENT
N/A
STAFF RECOMMENDATION
Recommended Action
Staff recommends the Board approve the submitted changes to the Procurement Policies and Procedures Manual, and authorize staff to advertise for a public hearing for modifications to Chapter 105 Indian River County Code.