City of Lawrence

Finance Department

MEMORANDUM

DATE:	November 22, 2004
TO:	Mike Wildgen, City Manager
FROM:	Alan D. Landis, Finance Department

The City of Lawrence is requesting to revise the purchasing procedures concerning federal grants. The proposed changes have been reviewed by the management team.  The additions to the procedures are as follows:

o	Grant purchases to include clauses required by federal statutes.
o	Departments and subgrantees shall maintain procurement records including percent of Federal funds used to purchase an asset.
o	When selecting a vendor, consideration given to past performance, compliance with licensing requirements and financial and technical resources.
o	Protests must be submitted in writing no later than three (3) working days after award, unless longer time allowed as a consideration of the grant.  The City shall respond within five (5) working days and the decision made by the City Manager shall be final.
o	Departments shall make available to the awarding agency technical specifications of procurements for review.
o	The City and subgrantees will maintain a system to ensure performance in accordance with the terms of the contract.
o	The City and subgrantee’s contract must contain provisions of the OMB Common Rule stating the City will follow their own purchasing policy.
o	Equipment currently valued less than $5,000.00 may be retained, sold or disposed of with no obligation to the awarding agency.
o	Equipment currently valued in at $5,000.00 or more may be retained or sold and the awarding agency has a right to their percentage of the grant provided.

The above changes were proposed by the City’s independent auditor.

Recommendation Action:

Approve adding Federal grant procedures to the present purchasing policy.

CC:	Dave Corliss
	Frank Reeb
	Bobbie Walthall
	Diane Trybom
	Debbie Van Saun