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Policy and Procedures Manual for Purchasing and Materials Management

Introduction

Statement of Purpose Policy No.: I-000
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Effective Date: Page No.: 1 of 1

The Town of Collierville, Tennessee intends to purchase goods and services of high quality consistent with the expected use at the most reasonable cost. The Town also intends that all purchasing actions are fair and impartial, competition is encouraged, and all qualified sellers or buyers have access to Town business.

Authority Policy No.: I-005
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Effective Date: August 23, 2004 Page No.: 1 of 1

The Town of Collierville Board of Mayor and Aldermen authorizes this manual by Resolution 2004 – 49, adopted August 23, 2004. It is based on the State of Tennessee “Municipal Purchasing Law of 1983, Part 3, the Town Charter and Code (Title III, Chapter 37).

RESOLUTION 2004 – 49

A RESOLUTION OF THE BOARD OF MAYOR AND ALDERMEN FOR THE TOWN OF COLLIERVILLE, TENNESSEE, ADOPTING THE POLICY AND PROCEDURES HANDBOOK FOR PURCHASING AND MATERIALS MANAGEMENT.

WHEREAS, the ordinances of the Town provide that the Board of Mayor and Aldermen (the “Board”) shall adopt by resolution regulations governing purchases by the officers and employees of the Town; and,
WHEREAS, the Board has been presented with the Policy and Procedures Handbook for Purchasing and Materials Management (the “Purchasing Regulations”); and,
WHEREAS, the Board now deems it in the best interests of the Town to adopt the Purchasing Regulations as presented.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF MAYOR AND
ALDERMEN FOR THE TOWN OF COLLIERVILLE, TENNESSEE, THAT:
Section 1. The Board hereby makes and adopts the matters in the “Whereas” clauses as findings of fact.
Section 2. The Board hereby adopts the Purchasing Regulations as presented and in accordance with the ordinances of the Town.
Adopted this the 23rd day of August, 2004.
Overview Policy No.: I-010
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What Is Purchasing?

Purchasing is the process of identifying, selecting and buying goods and services. Purchases are to be made as economically as possible within an acceptable time frame and meeting the standards of quality and service required for your department. The purchasing function encompasses much more than just placing an order over the telephone. Routinely, the Purchasing Division is involved in various tasks, such as:

  • Becoming familiar with the sources of supply.
  • Understanding pricing, business practices, and market conditions.
  • Understanding and complying with local and state laws which govern purchasing.
  • Establishing and maintaining a system that ensures that discounts are taken, that quality is tested, that ordered items are properly received and stored, and that deliveries are prompt.
  • Dealing effectively with salespersons and contractors as well as with town service/operating departments.

Why Do We Have a Purchasing Division?

The purpose of the Purchasing Division is to provide assistance to town departments in securing the best goods and services in the most economical and efficient way, and to handle all purchases in a manner that ensures competitive bidding between potential vendors and contractors.

The Purchasing Division will spend time with user departments developing specifications for supplies, equipment, construction and services. We obviously cannot do this alone because we don't know what all of your wants and needs are; therefore, your input is critical to writing a good specification. This process requires a good deal of mutual cooperation.

In addition, a Purchasing Agent is familiar with contract law including supply agreements, return policies, cancellation dates, and other terms and conditions of the purchases. We know what is acceptable or not acceptable within the industry. A Purchasing Agent likes to get things in writing; it's part of the training. Too many times a verbal agreement cannot be substantiated and we lose an argument with a vendor for lack of proof. We can assist you in setting up written agreements with vendors.

In summary, the Purchasing Division would like to serve you in many ways. We hope to become your best source of information, a pool of product knowledge, a time and money saver, and a short cut to your purchasing needs.

Why a Policy and Procedures Manual?

The policy and procedures governing the purchasing and accounting of the goods and services of a municipality can be numerous and often complex. That is the reason for this manual: to provide you with a guide to what you should do in the purchasing situations you will most likely encounter.

A question frequently asked is, “What is covered by these policies and procedures?” The answer is “Everything.” To comply with statutes and ordinances governing the Town and to comply with an established system of internal controls, all purchases of goods and services for the Town must be made in accordance with the procedures outlined in this manual.

We hope this manual will make the purchasing procedures seem less formidable and more understandable. When these procedures are followed, the results are increased efficiency throughout the Town, and savings of Town funds. Those savings allow for the Town to stretch the dollar so that it can be made available for other uses. Please help us achieve this by becoming familiar with these procedures. If you have any questions, please call the Purchasing Division for clarification.

What are the Procedures for Making Purchases and Controlling Inventory?

The remainder of the Purchasing Policies and Procedures Manual is designed to answer this question for you.

Forward Policy No.: I-020
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This Purchasing Policies and Procedures Manual is intended to help the reader understand the system, the responsibilities and duties of using departments, and the role of the Purchasing Division. It has been developed so that the Town may obtain the most efficient purchasing operation possible. By clarification of the procedures to be used, both the using department and the purchasing division should benefit by decreasing time to obtain materials, equipment, and services required to carry on department operations.

The primary responsibility of the Purchasing Division is to provide assistance to all departments within the Town for the purchase of materials, supplies, and equipment, certain contractual and service agreements, and the bid process and contractual assistance for construction projects at the lowest possible cost consistent with the quality needed for the proper operation of each department. The division also provides technical assistance to all Town departments in the area of standardization, specifications, cost reductions, and product and price information, as well as the administration of the Town's inventory and fixed asset management.

To have a good purchasing program, all Town employees directly or indirectly associated with the purchasing function must work as a team to promote the Town's best interest in obtaining the maximum values for each dollar of expenditures.

The material in this manual is subject to revision to meet the often rapidly changing developments encountered in the field of purchasing and the economy. The policies in this manual are approved by the Town Administrator.

As revision or additions to this manual become necessary, new pages will be sent to all recipients of the manual, who are requested to maintain it in an up-to-date fashion.

If there are any questions regarding this manual, please contact the General Services Manager.

Requests for additional copies of the manual should be addressed to the same office.

Objectives of Purchasing Policy No.: I-030
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  1. Develop written operating policies, procedures and standards for the procurement of goods and services.
  2. Promote open competition.
  3. Develop effective and reliable sources of supply.
  4. Maximize purchasing power through bulk and seasonal buying techniques.
  5. Comply with appropriate State and Federal laws on procurement.
  6. To support Town operations with an uninterrupted flow of goods and services.
  7. To achieve maximum integration with other departments of the Town.
  8. To handle the purchasing and supply management function proactively in a professional, cost effective manner.
  9. Dispose of, to the best advantage, all material and equipment declared to be surplus or obsolete.
Principles of Purchasing Policy No.: I-040
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The following principles are to be maintained:

  1. Consider the best interest of the Town in all transactions.

  2. Purchase without prejudice, seeking to obtain the maximum value for each dollar of expenditure in accordance with required quality standards.

  3. To subscribe to and work for honesty and truth in purchasing and avoid all forms of conflict of interest.

  4. Avoid all unethical practices and the appearance of same.

  5. Strive consistently for knowledge of materials and supplies required for use by the Town.

© 2006 The Town of Collierville
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The Town of Collierville does not discriminate on the basis of race, color, national origin, age, sex, or disability in its hiring and employment practices, or in admission to, access to, or operation of its programs, services, and activities pursuant to Title VI of the Civil Rights Act of 1964 (42 U.S.C. 200d) and the Americans with Disabilities Act of 1990, Pub. L 101-336.


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