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Fixed Price Term Agreements Policy
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INFORMATION CONTACT:
Jason Kay, Office of Legal Counsel, General Counsel, 704-283-3784
ACTION REQUESTED:
Approve the Fixed Price Term Agreements Policy
BACKGROUND:
As part of Union County’s day-to-day business functions, the County regularly procures fixed price service and bulk purchase agreements (“Fixed Price Term Agreements”) to utilize the County’s bargaining position to obtain lower-priced goods and services. These agreements contain a set price or rate list for the products or services (usually on an as-needed basis) which cannot be altered during the term of the agreement except by limited price escalation such as annual CPI increases. Fixed Price Term Agreements are often the kinds of agreements which are utilized by multiple departments, such as office supplies, printing services, landscaping services, County uniforms, and other routine service arrangements or bulk purchases. Leveraging the ability of multiple County departments to make purchases under a single Fixed Price Term Agreement allows the County to solicit better quality goods and services for better rates, ensuring that the County is an efficient steward of public funds.
In order to allow the County to more efficiently purchase goods and services under these Fixed Price Term Agreements, the Fixed Price Term Agreements Policy would require that each master Fixed Price Term Agreement be presented to the Board of County Commissioners for initial authorization prior to execution by the County Manager. Following initial approval, purchases under these agreements would not return to the BOCC for additional authorizations during the term of the agreements set out in and authorized by the Procurement solicitation for the goods or services, provided that the amounts spent remain within the authorized expenditures provided in the annual budget.
The Contracting and Procurement Department will provide the BOCC with quarterly reports detailing the current Fixed Price Term Agreements and the amounts expended under each. All spending under Fixed Price Term Agreements is required to stay within the amounts appropriated by the BOCC in the annual budget for the current fiscal year. The Policy excludes certain types of agreements, such as agreements for capital construction or agreements originated by an enterprise fund department. Any agreement in one of the listed excluded categories would be presented to the BOCC for authorization. The excluded categories of agreements are listed in the Policy.
FINANCIAL IMPACT:
All expenditures under the Fixed Price Term Agreements Policy will remain within the amounts appropriated by the BOCC in the annual budget in a given fiscal year.