Prior to the end of the 2023 fiscal year, staff has reviewed the FY 2023 Annual Procurement of Materials and Services from Vendors in Amounts Equal to or Exceeding $25,000, also known as the "Over $25,000 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 $25,000 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;
- Professional service vendors (engineers, surveyors, etc.);
- Lower cost supplies and materials that will be routinely purchased or secured throughout the year, often by multiple departments, but are expected to cumulatively exceed $25,000 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.
Most 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. For any of those purchases that exceeded the annual budget, they are included in the FY 2023 Budget Amendment Ordinance. However, the Over $25,000 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 2023, there were seven vendors for which actual expenditures exceeded the original estimate.
- Body Armor (Angel Armor and GT Distributors), where purchases of body armor exceeded original estimate by $15,000.
- Chrysler Dodge Jeep Ram of Franklin, where services provided exceeded original estimate by $10,000.
- Fuel Vendors (Tristar and Kimbro), where fuel purchases for unleaded and diesel exceeded original estimate by $70,000.
- MTCM Enterprises, Inc, where the purchase of Police uniforms and miscellaneous equipment exceeded original estimate by $7,000.
- Moody's Tire and Auto Repair, where tire purchases and repairs and maintenance exceeded original estimate by $35,000.
- Public Entity Partners, although premium estimates did not go over original estimates, the City's deductible share of worker's compensation and liability claims exceeded original estimate by $25,000.
- Williamson County Solid Waste, where fees exceeded original estimate by $50,000 due to changes in disposal of brush material during the fiscal year.
Additionally, there were four vendors that were not expected to exceed $25,000 in total spend for FY 2023. They are Convergint Technologies, LLC, ($6,485), E Solutions for Building, LLC, ($9,000), Spatco Energy Solutions, ($10,000), and GovDeals ($10,000).
A complete list of the applicable vendors and the amount to be amended is attached with explanations provided. Questions may be directed to Finance Director. |