Title
Amend Chapter 43, Articles II and III, Phoenix City Code Relating to Formal Competitive Procurement Threshold (Ordinance G-7125)
Description
Request City Council amend Phoenix City Code, Chapter 43, Article II, Section 43-10, entitled "Contract authorizations" and Article III, Section 43-11, entitled "Available source selection methods" to increase the formal competitive procurement threshold, effective Sept. 1, 2023.
Report
Summary
The amendment to Phoenix City Code, Chapter 43, Article II, Section 43-10, and Article III, Section 43-11, will increase the formal competitive procurement threshold from $100,000 to $250,000. Specifically, as shown in Attachment A, "$100,000" will be removed and replaced with "$250,000" where it appears in Section 43-10 and Section 43-11.
City procurement staff must currently use formal competitive methods if the cost of goods and/or services is anticipated to exceed $100,000. City staff evaluated procurement processes and determined increasing the formal competitive procurement threshold from $100,000 to $250,000 will allow for easier and increased opportunities for small and local business entities and result in increased efficiencies overall.
Concurrence/Previous Council Action
City Council adopted Phoenix City Code Chapter 43 on Oct. 15, 2014, and amended the same on June 17, 2015, July 1, 2015, and May 10, 2017.
Department
Responsible Department
This item is submitted by City Manager Jeffrey Barton and the Finance Department.