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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox Executive Director |
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FROM: |
William Greene, Chief Financial Officer |
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PRESENTER(S): |
Todd Mills, Director of Supply Chain |
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TITLE:
title
UTA Policy - UTA.02.01 Spending Authority Policy
end
AGENDA ITEM TYPE:
UTA Policy
RECOMMENDATION:
Adopt UTA Policy UTA.02.01 Spending Authority Policy and rescind prior Corporate Policy 3.1.1 Spending Authority
BACKGROUND:
Corporate Policy 3.1.1 Spending Authority Policy was previously approved on June 13, 2017. On June 20, 2018 the Federal Transit Administration made statutory changes to the Micro-Purchase and Simplified Acquisition (Small Purchase) thresholds above which more complex procurement processes must be utilized involving solicitations, competition requirements, cost evaluation, and imposition of multiple federal contract clauses. The FTA Micro-Purchase limit was increased to $10,000, and the FTA Simplified Acquisition limit was increased to $250,000. UTA staff desired to match the increase in the FTA micro-purchase threshold but recommends setting the Small Purchase threshold at $200,000 to make it consistent with the Board approval requirements contained in the Public District Transit Act (UCA 17B-21-801.1)
DISCUSSION:
UTA Policy No UTA.02.01 Spending Authority Policy will be updated with the following changes:
• Increase the Agency’s micro-purchase limit to match the FTA limit of $10,000. (requires only one quote and limited price analysis to determine fair and reasonable price. )
• Increase the Agency’s Simplified Acquisition (Small Purchase) limit to $200,000 (requires multiple quotes simplified RFP, or sole-source as well as reasonable price analysis to determine fair and reasonable price.
• Increase the Agency’s Formal Procurement threshold to match the Utah Public Transit District Act’s board approval requirement for contracts with a value of $200,000 or greater. (Requires public notification posting and multiple quotes, RFP or Sole-source)
• Increase the spending authority for “Managers” to $24,999.
• Increase the spending authority for “Directors” to $74,999.
• Increase the spending authority for “Chiefs” to $199,999.
• Increase the spending authority for the “Executive Director” to purchases with a value of $200,000 or greater, with approval from the UTA Board of Trustees.
• Increase the Purchasing Card (P-card) transaction limit from $3,500 to $5,000.
These increased thresholds are intended to help streamline the procurement process and empower UTA executives to a greater degree.
ALTERNATIVES:
If this policy is not adopted the current Corporate Policy 3.1.1 Spending Authority would remain in effect.
FISCAL IMPACT:
N/A
ATTACHMENTS:
UTA Policy UTA.02.01 Spending Authority