The Baldwin County Board of Commissioners agreed last week to revise the county’s purchasing policy, something the county has needed to do for a while, according to Baldwin County Manager Carlos Tobar.
“We needed to adjust the thresholds for some of what we’re doing here in the county,” Tobar told commissioners and residents who attended last Tuesday night’s commission meeting. “A lot of it is to simplify an effort to save money for the taxpayers.”
Tobar then explained the situation and noted that when the county purchases materials and supplies, the county pays no sales taxes.
“So, if we contract out with a company to do an entire project for us, they’re purchasing materials and supplies and they are paying sales tax, plus they are also are having some profit based off the total amount of the project costs,” Tobar said. “For example, in the water and sewer department – and this happens in many different departments – the water and sewer department will purchase some materials and supplies and then they will put together a scope of work for using them for extending water lines or sewer project.”
The county manager said in order to keep doing such and not having to add the costs, he and others believe the thresholds need to move up to $100,000 because the county is seeing the effects of inflation. He also said the county was forbidding any telephone bids.
“Everything needs to be in writing,” Tobar said, noting by doing such there is a paper trail for every purchase.
Even so, the county still has to meet all state and federal grant requirements, which he said have “very stringent” procurement procedures. Tobar suggested that every purchase of $100,000 and above must be approved by the board of commissioners in a meeting.
Commission Vice Chairman Kendrick Butts asked who the county manager was referring to when he mentioned the word “we.”
“Who is ‘we’ that came up with that amount of $100,000 for the threshold,” Butts asked.
Tobar explained that basically it was a lot of what the state and federal governments require.
“So, we kinda wanted to make it a universal purchasing policy,” Tobar said. “Just based on the number of budget estimates that we’re looking at. That seems to be the sweet spot.”
Butts asked if someone from the state had told the county such.
Baldwin County Attorney Brandon Palmer replied that state law for public works construction projects requires the threshold of $100,000 and for road construction projects it’s $200,000.
Baldwin County Assistant Dawn Hudson then made a point of clarification. She said within the county’s purchasing policy there are different thresholds.
“We are required to get competitive pricing for anything over $1,000, but the pricing between $1,000 – it used to be up to $35,000 – we could get formal written quotes, and everything over that we had to do a formal bid process, which is a whole (different) thing where we have to get bids and actually put it on the Georgia Procurement website,” Hudson said. “What we’re changing is the threshold of where we have to do the formal bid process.”
Under the new formal bid process, it will start out at $100,000 as opposed to $35,000, Hudson said.
“That’s the biggest difference in the change we’re making,” she said.
Butts said the problem he has with this idea is that there is a potential to have millions and millions of dollars leaving out of the county that he, as a county commissioner, knows nothing about.
“When people asked me about it, I won’t be able to tell them anything because I haven’t heard anything,” Butts said. “So, is there any kind of way – when you make these decisions – give us a quarterly report and let us know where this money has been going so I can understand and tell the people in the community, hey, this is where we’re spending money, and the way it’s been spent?”
Currently, commissioners get a report every two weeks.
“We added some detail that y’all wanted in the report,” Tobar said. “We added another column. And we can easily add another column and provide you information for example, the three bidders, the bid tabulation, who was the lowest bidder, the dollar amount for the project.”
Butts expressed other concerns, too.
“Some of the things I’m reading, whoever was awarded this could just be one person and not three or four people,” Butts said, and the money be given to that company. Tobar explained that the company has to show the proof of the solicitation.
“They have to show us all received the solicitation and the deadline for submitting the informal bid,” Tobar said.
The county manager told Butts he believed what he was concerned about was whether there could be just one bidder.
“Yes, there could be just one bid from a company, but we have proof that we sent it out to different individuals and companies,” Tobar assured Butts and other commissioners.
Commissioner Emily C. Davis asked if there was only one bidder, would the county bid it back again.
“If it’s under budget, there’s no reason not to give it the person,” Tobar said.
Commissioner Sammy Hall said he thought what Hudson said earlier should clarify it all.
“We’re not changing anything really, except that we are reducing the amount of the formality,” Hall said. “We still have to have the three bids. And those bids will be looked at.”
Hudson said the county was not changing the way it operates except that the county will do a formal bid process, which is a lot more detailed and has a lot more legal requirements to it.
“Nine times out of 10, they end in a contract that has to be approved by the board,” Hudson said.
She said it would begin at $100,000, which is required by the state and what a lot of other counties are going to as well.
“I believe, if I’m not mistaken, Putnam County just approved as (its) threshold,” Hudson said. “We still do competitive bidding on anything we do, really. A lot of our purchasing we do through state contracts. But those are already formally bid contracts that we are allowed to purchase under. Really, the only thing we’re changing is the formal bid process from $35,000 to $100,000.”
Hall later made a motion to approve the revisions to the county’s purchasing policy. Butts seconded the motion.
When Commission Chairman Johnny Westmoreland called for a vote, all five commissioners voted in the affirmative, including Commissioner Henry R. Craig, who joined the meeting by conference call.
