The City's Purchasing Policy defines the limits for Open Market, Informal Solicitation, Formal Solicitation purchases of supplies, materials, equipment, services, and public works projects. Periodically, the Purchasing Policy Limits need to be revised to conform to new and revised legislation, to modernize and clarify requirements, and to update the purchase limits based on various economic factors. The last revision to the Purchasing Policy Limit was in November 7, 2017 when the City Council adopted Resolution No. 2017-067.
The Uniform Public Construction Cost Accounting Act (UPCCAA), which relates to public works projects, allows agencies that have adopted the UPCCAA procurement procedures follow certain biding procedures. Brea has adopted the UPCCAA procurement procedures. Resolution No. 2017-067 set the limits for public works projects at that time to be in conformance with UPCCAA to contract for public projects costing $45,000 or less without competitive bidding; projects costing $175,000 or less by informal bidding procedures; and projects costing more than $175,000 by formal bidding process.
Effective January 1, 2019, Assembly Bill 2249 which was signed by Governor Brown, increased the public works project bid limit thresholds for UPCCAA. The increased thresholds allow projects costing $60,000 or less to be done without competitive bidding; projects costing up to $200,000 may be contracted by informal bidding procedures; and projects costing over $200,000 are subject to the formal bidding process.
The attached Resolution updates Brea's Purchasing Policy Limits as follows:
|
Non-Public
Works Projects
(no changes) |
Public Works Projects
(UPCCAA changes) |
| Purchasing Limits |
Current |
Proposed |
Current |
Proposed |
| Open Market |
$5,000 |
$5,000 |
$45,000 |
$60,000 |
| Informal Solicitation |
$25,000 |
$25,000 |
$175,000 |
$200,000 |
| Formal Solicitation |
> $25,000 |
> $25,000 |
> $175,000 |
> $200,000 |
|