The nature of the City’s purchasing system is such that every City employee must use good purchasing judgment regardless of the frequency, type of goods or dollar volume of the purchasing transaction. This is achieved by meeting three basic tests: buying the right quality, the right quantity and at the right price.

Buying the right quality simply means acquiring the most suitable product for its intended purpose. In order to determine the correct quality needed, the intended use of the item must be analyzed carefully. Physical tests, measurements, past performance, published product data and similar research may all be used in order to properly specify the product or service needed. Generally, the department will draft specifications to broadly identify the item for the Purchasing Division. Purchasing may refine these specifications and may need to engage in market research itself. Where practical, pre-bid conferences with vendors may be held to assist in better identifying the quality of goods/services available and needed. The Purchasing Division will advise a department of any significant changes in the quality of an item requested before an order is placed. For purchases less than $750 that do not routinely require the involvement of the Purchasing staff, it is the responsibility of the person placing the order to make sure that the correct item is bought. Ignorance of product quality cannot be accepted as a valid reason for an ill-suited purchase. When in doubt about the suitability of a product or service, regardless of the dollar volume, the assistance of the Purchasing Division should be requested.

The best means of securing the right quality is by a proper understanding of the product and its sources and a thorough description of the item.

Buying the right quantity is also a matter of informed judgment. Sometimes this can be ascertained by past usage rates or from a known requirement schedule. Every effort should be made to predict quantities needed scientifically. Whoever engages in forecasting quantities needed should consider changes in requirements, market conditions, storage facilities available, handling, loss and depreciation.

Each department has the burden of estimating quantity requirements for stored goods and for reporting these needs to the Purchasing Division. It is also the department’s responsibility to advise Purchasing and Central Stores of any anticipated abnormal withdrawals or any circumstances that are likely to render a warehouse item obsolete. A department will usually be held financially responsible for obsolete items remaining as a result of overstocking.

The following are three illustrative techniques of quantity control:

1.   Engaging in specific quantity purchase agreements with predetermined delivery schedules.

2.   Engaging in purchase agreements in which quantities are estimated within minimum and maximum limits.

3.      Engaging in open market purchases of stock items.  

Buying at the right price is a matter of obtaining the lowest cost offered for the quality and quantity best suited for the City’s needs. Generally, price should be a consideration after the appropriate quality has been determined. There are numerous factors that affect total cost. It is important to consider before an order is placed such things as transportation and handling costs, chance of obsolescence, durability, installation and maintenance costs. Consideration should never be given to an inferior product at any price. Such a practice would generally result in higher ultimate costs due to inferior utility or difficulties in application. Many long and expensive hours may be required to correct an error in judgment.

In circumstances where prices for an identified product or service are equal, consideration will be given to procurement from vendors located in the greater Lakeland area.

Every City employee should make pricing judgments for City purchases similar to those judgments that he/she makes for his/her own personal purchases: try to get the best value for the dollar. In other words, buy the best quality which the City budget can afford but always avoid extravagance or inferior products.

In bidding situations, the lowest responsible bid that meets the City's specifications will usually be considered the best bid (right price). This may not always be true, however, where a range of acceptable specifications are included in a single bid package or valid bids exceed the City’s determined acceptable pricing level.