Purchasing Policy & Procedures
PURCHASING POLICY & PROCEDURES
POLICY #4
DATE ADOPTED: 02‑27‑17
MINUTE BOOK: 40 PAGE 109
PURPOSE:
To set forth the purchasing policy and purchasing procedures of the Houston County Commission ("the Commission").
GENERAL AUTHORITY:
The competitive bid requirements for County purchases or contracts other than contracts for "public works" (as defined in § 39‑2‑1(5)) are set forth in ALA. CODE §§ 41‑16‑50 through 41‑16‑79 (1975, Supp. 2007) ("the Bid Law").
ALA. CODE § 41‑16‑50 states in pertinent part:
With the exception of contracts for public works whose competitive bidding requirements are governed exclusively by Title 39, all expenditure of funds of whatever nature for labor, services, work, or for the purchase of materials, equipment, supplies, or other personal property involving fifteen thousand dollars ($15,000) or more… shall be made under contractual agreement entered into by free and open competitive bidding, on sealed bids, to the lowest responsible bidder.
POLICY:
A.
The Chief Administrative Officer (CAO) is the designated Purchasing Agent for the Houston County Commission.
B.
For purchases not requiring competitive bidding, the Purchasing Agent may make and consummate purchases approved by the Commission through the adopted budget or budget amendment procedures.
C.
Purchases requiring competitive bidding will be presented to the Commission for approval, letting, and awarding of bids.
D. Purchasing Limits:
The Purchasing Agent or designee may make purchases not requiring competitive bidding.
All purchases must be approved or authorized by the Commission.
Unless an exception is approved in writing, a purchase order must document all expenditures.
Prior to any purchase, funds must be verified. Blanket POs may be used for recurring purchases.
E) Open Purchase Orders:
Open blanket POs may be issued for up to 90 days. They must include estimated total expenditure. Invoices must be signed monthly. All guidelines and bid laws apply.
F) Emergency Purchases Under $15,000:
An emergency exists when unforeseen events threaten public buildings, property, life, health, or safety.
A) When under $15,000:
After‑hours emergencies may be handled by the department head; must be reported next workday with written justification.
Purchasing Agent assigns PO number and notes actual purchase date.
If not budgeted or exceeds budget, Commission or Chairman approval is required.
Written explanation of consequences if not approved is required.
B) Emergency Purchases $15,000 or More:
As per ALA. CODE § 41‑16‑53, the awarding authority (the Commission) must declare the emergency in writing.
PO procedures still apply.
CAO should be contacted; County Attorney opinion recommended.
If not budgeted or exceeds budget, Commission or Chairman approval is required.
G) Capital Purchases:
Computers (any cost) and equipment valued at $5,000+ with >1‑year life are capital items.
Procedures include:
Capital ID number issuance
Annual capital audit
Notify Accounting upon disposal
Written justification required for early retirement of item
H) Proper Identification of Items:
POs must include vendor name, quantity, unit, SKU, price per SKU, and detailed description.
I) Liability:
Purchases made outside procedures may result in personal liability for the individual and department head unless released by Commission approval.
J) Bid Solicitations and Procedures:
Annualized purchases $2,500–$15,000 require at least 3 quotes.
Purchases under $2,500 should still use competitive vendors; quotes recommended if uncertain.
Exceptions may be granted for:
A) State‑set prices
B) Continuity of décor/equipment
C) No‑response solicitations
D) Previously established lowest/best price
E) When 3 quotes are not feasible
F) Auction/surplus purchases below market value
G) Purchases from other government entities
Additional Rules:
Purchases may not be split to avoid the $15,000 bid threshold.
Quotes/bids remain confidential until all are received.
For purchases >$15,000, responsible bidder meeting specs must be selected or all bids rejected.
All Bid Law procedures apply for purchases >$15,000.
Federal Funds: Federal regulations apply when federal funds are used.
Credit Card Purchases:
General Credit Card (held by Accounting Manager)
Vendor‑Specific Cards (Sams, Office Depot, etc.)
Rules include sign‑out, same‑day return, receipts required, and use only when POs are impractical.
Conflicts of Interest:
No employee or commissioner may participate in purchasing decisions where they have a financial interest.
Reservation of Authority:
The Commission may modify this policy.
Effective Date:
August 1, 2008
Adopted July 28, 2008