Local governments use procedure for high-cost purchases and services

In November the Williamson County Purchasing Department simplified its bidding process for county projects.

County Purchasing Agent Bob Space said the department is creating a way to streamline the process for businesses and contractors who submit bids to the county.

The two-step system is expected to decrease the amount of paperwork a business must submit early in the bid process, Space said.

"We're excited about it because it's going to open doors of opportunity for businesses," he said. "I think it will result in better pricing, too."

Government work

Local governments often seek competitive bids for expenditures greater than $50,000, although there are some exceptions, Georgetown Purchasing Manager Trina Bickford said.

"It's complicated. It may seem like there are all these rules that are coming out of the air, but we do have a basis for what we are doing," Bickford said. "We are trying to do the best we can to wisely spend taxpayers' money."

The city of Georgetown and Williamson County processes follow state statutes outlined in the government code.

"The Legislature wanted to ensure open and fair processes to make sure everyone had an opportunity to participate," Space said.

Exceptions to the bid process include items that must be purchased from a single source, emergency purchases, personal or professional services, work paid for on a daily basis, land or right of way and interlocal or other cooperative contracts, according to the city's website.

Space said the county bids for items and services including fuel, vehicle parts, asphalt, uniforms, office supplies or equipment, and janitorial services on an annual basis. Projects funded by bonds also have their own bid cycle, he said.

Seeking bids

Once it is determined the city or county must seek a bid for goods or services, the specifications for the bid will be outlined with help from the department seeking the goods or services.

The request for bids will include the bid specifications, such as details of what is being sought or the project; what must be submitted from the bidder, such as resumes, references or samples; and how the bid will be awarded—whether to the lowest bidder or the best value, Bickford said.

According to the local government code, some bids may be awarded to the lowest bidder or the bidder with the best value, which means that although the cost submitted was higher, the bidder scored better in terms of service or experience, Bickford said.

"Price is almost always going to be considered to some degree," she said. "But it might be a lower percentage of the total score."

Once the request is closed, each bid is evaluated based on the criteria listed in the bid and if the bid is complete.

"If someone has met the minimum specifications, we are still looking at the price as it relates to any additional costs, like warranty costs, service costs [or] delivery costs," Space said. "That's the point where you can determine lowest and best value."

Although the county and city receive bids from throughout Central Texas or the nation, local vendors sometimes provide a better value for large purchases when considering maintenance, repair and replacement costs, Space said.

"We know that when it comes to local bidders, there are many times when they can offer us the best value because of delivery charges and service costs," Space said. "Sometimes with vehicles that becomes important."

Although local bidders are often sought by the city, Bickford said, the local bidder may chose not to bid because of various circumstances or the bid may not be competitive.

"We are always happy to get [local bidders]," she said. "We do make awards to local vendors, but it's all in the context of how the competitive bid works itself out."