Prior to the end of the 2017 fiscal year, staff has reviewed the FY 2017 Annual Procurement of Materials and Services from Vendors in Amounts Equal to or Exceeding $10,000, also known as the "Over $10,000 List". The list has been updated to reflect actual, rather than estimated, purchases made from vendors over the course of the fiscal year. The City uses the Over $10,000 List to expedite procurement of products and services that have been approved in the annual budget and typically fall in one of the following categories:
- Sole source service providers;
- Vendors on the approved state contract list;
- Materials/services that have been bid out or for which cost quotes are received on a periodic basis;
- Continuing service for software, equipment or other items that were approved by the Board of Commissioners in a prior year;
- Professional service vendors (engineers, surveyors, etc.);
- Lower cost supplies and materials that will be routinely purchased or secured throughout the year but are expected to cumulatively exceed $10,000 in cost by the end of the fiscal year.
Approval of the annual list essentially authorizes in advance the purchase of basic products and services that are routine in nature and essential to the daily operations of the City. This approach enables City departments to operate in the most efficient manner possible during the year by being able to procure materials and services quickly with reduced paperwork burden. It also eliminates the need for having a costly internal purchasing department and avoids processing delays associated with most centralized purchasing systems.
All expenditures from vendors on the list were within limits established by the annual budget for each department or fund, thus no budget amendment is required. However, the Over $10,000 List adopted by the Board requires amendment for any actual purchases from specific vendors where actual costs for materials and services exceeded estimates provided in the beginning of the fiscal year for that vendor.
For FY 2017, there were a handful of vendors for which actual expenditures exceeded the original estimates. Examples include:
- CDW Government (Technology), where expenditures exceeded the estimate by $1,103;
- Chrysler, Dodge, Jeep of Franklin (Police), where expenditures for maintenance and repairs for vehicles exceeded the original estimates by $11,499;
- Emergency Vehicle Specialist (Fire), where expenditures for maintenance and repairs exceeded the original estimates by $1,086; and
- Moody's Tire and Auto Service, where expenditures for maintenance, repairs, and tire purchases exceeded original estimates by $14,080 due to maintaining vehicles longer.
Cintas, OCLC, and Tennessee One-Call System are nearing the original estimated amount and will likely exceed the amount by the end of the fiscal year. Also, three vendors had purchases that typically would not have been included on the list; however, the FY 2017 expenditures for these vendors exceeded expectations. Finally, included on the list is the payment to Williamson County Election Commission for election costs. This vendor will be added to the over $10,000 list every other year.
A complete list of the applicable vendors is attached with explanations provided. Questions may be directed to City Treasurer Karen Harper. |