14.C.
City Council Meeting - FINAL
- Meeting Date:
- 07/03/2018
- Co-Submitter:
- Patrick Brown
- From:
- Rick Compau, Purchasing Director
Information
TITLE
Discussion/Direction: City of Flagstaff's procurement procedures related to vendor responsibility.
STAFF RECOMMENDED ACTION:
Review staff recommendation and receive Council direction.
EXECUTIVE SUMMARY:
On April 4, 2017, Councilmember Putzova presented a Future Agenda Item Request (FAIR) to discuss amending the Procurement Code Manual, Article 30, Section (B)(2), "Suspension, Debarment," to set rigorous standards for social and environmental performance, accountability, and transparency for vendors attempting to procure contracts with the City. Two or more Councilmembers agreed to move forward with the FAIR item.
On September 26, 2017, the FAIR item was discussed at the Council Work Session to determine whether other Councilmembers were interested in discussing a proposed amendment to the Procurement Code Manual. During this period, Councilmember Putzova had provided staff with proposed language. Four or more Councilmembers agreed to place the FAIR item on a future Work Session to provide staff with direction.
On April 3, 2018, staff appeared before Council to present the results of research regarding the proposed language. Staff had found that there were risks and potential negative consequences associated with including the proposed language in the Procurement Code Manual. There was a discussion of alternative methods to reach the goals of maintaining rigorous standards for social and environmental performance, accountability, and transparency for vendors. One suggestion was to use the procurement process to require that those seeking to contract with the City self-report. Council directed staff to return with alternative language or a procurement process.
In response, staff has drafted a Vendor Responsibility Questionnaire which contains seven categories for determining Vendor responsibility relating to unethical behavior, unethical business practices, and lack of business integrity. The Vendor Responsibility Questionnaire will be reviewed by Purchasing Section staff as part of staff's due diligence during the procurement process.
On September 26, 2017, the FAIR item was discussed at the Council Work Session to determine whether other Councilmembers were interested in discussing a proposed amendment to the Procurement Code Manual. During this period, Councilmember Putzova had provided staff with proposed language. Four or more Councilmembers agreed to place the FAIR item on a future Work Session to provide staff with direction.
On April 3, 2018, staff appeared before Council to present the results of research regarding the proposed language. Staff had found that there were risks and potential negative consequences associated with including the proposed language in the Procurement Code Manual. There was a discussion of alternative methods to reach the goals of maintaining rigorous standards for social and environmental performance, accountability, and transparency for vendors. One suggestion was to use the procurement process to require that those seeking to contract with the City self-report. Council directed staff to return with alternative language or a procurement process.
In response, staff has drafted a Vendor Responsibility Questionnaire which contains seven categories for determining Vendor responsibility relating to unethical behavior, unethical business practices, and lack of business integrity. The Vendor Responsibility Questionnaire will be reviewed by Purchasing Section staff as part of staff's due diligence during the procurement process.
INFORMATION:
The Vendor Responsibility Questionnaire would be integrated as part of the existing Disclosure Form already used in the City's procurement process. A vendor's responses will be considered when determining whether a vendor can contract with the City.