CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Conduct the first reading of the ordinance amending Chapter 9, Article B Sections 4, 7, 8, 9, and 10 of the Naperville Municipal Code regarding updates to the City's Procurement Code
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DEPARTMENT: Finance Department
SUBMITTED BY: Raymond Munch, Director of Finance
BOARD/COMMISSION REVIEW
N/A
BACKGROUND:
The City's Procurement Code (Title 1, Chapter 9, Article B) was completely replaced in 2004 via Ordinance 04-156. Since 2004, there have been updates that were limited in scope. Examples are provided below:
1. Ordinance 11-128: Add language to define the term local vendor and to support opportunities to use local vendors in City procurements.
2. Ordinance 23-035: Update the language to define a responsible bidder for public works construction projects.
When the new Procurement Manager was hired in Fall 2024, she worked with the Chief Procurement Officer (i.e., the Director of Finance) and Procurement Team to identify key areas of the Procurement Code that needed to be updated. Finance Department staff intend to conduct more regular reviews of the Procurement Code moving forward.
DISCUSSION:
The paragraphs below outline the four major updates/changes that staff recommends. A redlined copy with the recommended changes is attached.
1. Procurement Thresholds:
The City's current procurement thresholds, shown in the table below, were approved by the City Council with the 2004 Procurement Code update. The formal Bid/RFP threshold was set at $25,000 to be consistent with the state of Illinois' formal Bid/RFP threshold and the $1,000 threshold to require quotes was based upon a spend analysis.
Procurement Process
Current
Recommendation
Open Market
Less than $1,000
Less than $5,000
Quotes
$1,000 to $25,999.99
$5,000 to $34,999.99
Formal Bid/RFP
$25,000 and greater
$35,000 and greater
Staff's recommendation to increase the procurement thresholds was developed based upon an analysis of the City's spend o...
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