Adopt the updated County Procurement Policy, including clarifications to spending thresholds and the addition of the federal eligibility verification requirements. (No general fund impact) (Pistochini/Murphy)

Adopt the updated County Procurement Policy, including clarifications to spending thresholds and the addition of the federal eligibility verification requirements.

The Procurement Division conducts periodic reviews and updates to the County’s Procurement Policy to ensure continuous improvement, alignment with applicable state and federal procurement requirements, and implementation of direction provided by the Board of Supervisors. These updates are essential to promoting transparency, consistency, compliance, and efficient operational practices.

The Procurement Policy was last updated in January 2025. Following a comprehensive review and incorporation of feedback received by County departments, two revisions are recommended to enhance clarity and strengthen compliance with federal procurement standards.

The proposed policy revisions are as follows:

1.  Clarification of County Spending Thresholds — Updates have been made to clarify how estimated amounts are applied when determining appropriate procurement methods.

For contracts, the estimated amount is defined as the amount per year.
For purchase orders, the estimated amount is defined as the annual amount per vendor.

This clarification is intended to eliminate ambiguity, ensure consistent interpretation among departments, and promote uniform application of procurement requirements.

2.  Federal System for Award Management (SAM) Verification Requirement

The proposed new policy language requires verification that any vendor receiving a contract valued at $25,000 or greater is eligible under the federal System for Award Management (SAM) database prior to contract execution. This requirement aligns with federal procurement regulations and ensures the County engages only with vendors that are not suspended, debarred, or otherwise ineligible for federal funding.

The proposed changes to the Procurement Policy are shown in track changes in Attachment A and the final version without the tracked changes is provided in Attachment B.

General Services collaborated with the Department of Finance, County Counsel, the County Administrator, and the District Attorney's Office.

No competitive bid process or vendor performance is necessary for this policy update.