Procurement Procedures For Municipalities --
Yes Or No?

By CHARLES M. KNOX, C.P.M. and THOMAS W. DELANTY, C.P.M.

The Chinese curse of "May you live in interesting times" certainly applies to governmental purchasing at the municipal level. We all wring our hands at the thought of limited tax dollars, decreased federal and state aid and voter resistance to tax increases.

How can we overcome these limitations or at least come to grips with them?

Perhaps, we should consider procurement procedures of one form or another for our cities and villages. Procurement procedures present an opportunity to save those scarce discretionary dollars. This does not necessarily imply the need for a full time purchasing staff, increased bureaucracy or, for that matter, volumes of regulations. It is merely a matter of setting some minimum guidelines and controls for your municipal departments. We all know how municipal departments treasure their independence. Minimal procurement guidelines do not necessarily require the loss of independence, but do provide consistency in the exercise of that independence.

The use of procurement guidelines will give stronger fiscal control and present greater opportunities for cost savings.

Guidelines should include provisions and dollar levels as to when competition should be sought. Some methods of seeking competition that might be addressed in such guidelines are: the "Rule of Three" in obtaining oral or written quotations; informal written bids; and sealed bids or proposals. These types of competitive pricing actions can be performed through a centralized action by the finance department, by the clerk's office or in most cases by the department, if proper guidelines are in place and formats are available for the different types of action.

Another suggestion, for incorporation in municipal procurement procedures, is providing for the use of written Field Purchase Orders for purchase amounts above a very minimal level and below $500.00 to $1,000.00. These orders are usually three part forms in a book that are carried in municipal vehicles or issued by each department and can be issued directly to the vendors. This allows fiscal control while still retaining flexibility and independence for the individual departments. It places accountability with the purchasing employee and will eliminate some questionable purchases. After a certain dollar amount (as determined by the municipality) is reached, it is recommended that a Requisition/Purchase Order form be initiated and routed through the finance department or clerk's office for review and greater fiscal control.

Developing and implementing these simple procedures may possibly save your municipality from 5% to 15% of your discretionary dollar purchases. For the small investment of development and training time involved in preparing and implementing such procedures, a municipality may be able to withstand the continuing assault on its resources.

NEW HANDICAPPED PARKING PLACARD

On January 1, 1994, the Secretary of State's Office will begin issuing a newly designed handicapped parking placard in accordance with the Federal Highway Administration's design standard. The federal standard dictates a uniform system for handicapped parking throughout the United States.

Beginning September 1,1993 renewal forms will be mailed to all persons issued permanent handicapped parking placards by this office. Current parking placard owners will receive the new design placard prior to the June 30, 1994 expiration date.

The new placard incorporates a hanger-style design, which clearly displays the International Symbol of Access on both sides of the permit. As in the past, the permanent handicapped parking placards will be blue with white lettering; and the temporary handicapped parking placards will be red with white lettering. All placards will also have an identification number and an expiration date printed clearly on both sides.

The placards should be displayed by hanging them on the rear-view mirror of the vehicle in which the handicapped person is riding. If a rear-view mirror is not available, the placard would be displayed on the front dashboard or visor. Any questions regarding the Handicapped Parking Program may be answered by contacting the Non-Standard Plate Section, Room 539, Michael J. Hewlett Building, Springfield, Illinois 62756; by calling, (217) 782-2284.

Mr. Knox and Mr. Delanty are both Certified Purchasing Managers (C.P.M.) and Principals in Professional Purchasing Consultants, Inc., a firm that specializes in procurement consulting services to municipalities and other governmental units.

Page 16 / Illinois Municipal Review / August 1993