Staff recommends City Council adopt the Citywide Purchasing Policy Resolution when presented for approval in May at a regular business meeting.

City staff was asked to complete a comprehensive review of the contract solicitation processes for all departments, specifically as it relates to professional services, and to present consistent recommendations for Citywide use.

The City's Purchasing Procedures have been amended and adopted through Administrative Order five times since 2003, and the Request for Proposals (RFP) process has remained relatively the same, pursuant to MCA.
The RFP process, as opposed to an Invitation for Bids process, has historically allowed for greater flexibility for a committee to choose the consultant, firm, or software that best suits or is in the best interest of the City and its taxpayers.  The requirement of a scoring criteria and/or a price matrix has been optional, but a selection committee mandatory.  Pursuant to MCA 18-8-204, City staff has been allowed to conduct a prequalification (RFQ) process, specifically for architectural, engineering, and land surveying services, from which firms may be chosen for contract award on an as-needed basis for one or more projects and for a term to be mutually agreed to by the parties.  The City's Public Works and Aviation and Transit Departments have exercised variations of this option for a number of years, but the process has not been implemented City-wide.

Considerable input was received by City staff, as well as a focus group of seven individuals from the local architectural and engineering community.  That feedback is being incorporated into a revised RFQ/RFP process within the City's Purchasing Procedure manual, which will be adopted by Administrative Order.

No alternatives were analyzed for this Work Session.  A Purchasing Policy Resolution is attached for Council's review and feedback and will be presented for approval in May at a regular business meeting.

There are no fiscal effects to this action, other than staff time.

In summary, the Purchasing Procedures are being redrafted with the assistance of both internal and external stakeholders, and the Request for Proposals section revised to allow for selection through one of three processes:

1. A Request for Qualifications process from which the short-listed firms may submit a project-specific proposal.
2. A Request for Proposals process specific to Architectural, Engineering and Land Surveying services, which shall include a scoring matrix, but price may not be requested and will be negotiated with the selected firm.
3. A standard Request for Proposals process, including a scoring matrix, as well as a sealed price matrix.

In all cases, a selection committee shall be formed to evaluate and score proposals.  Presentation to Council for contract award shall occur at the appropriate dollar thresholds.