The University of Tennessee, Knoxville

Tennessee County Municipal Advisory Service

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Ordinance to Increase Purchasing Limits

Reference Number: MTAS-1685
Tennessee Code Annotated
Reviewed Date: April 03, 2013
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An Ordinance Establishing a Maximum Amount for Purchases Without Public Advertisement and Competitive Bidding

WHEREAS, the City/Town of _____________ is subject to the provisions of the "Municipal Purchasing Law of 1983," and

WHEREAS, this law permits municipalities to increase the dollar amount of purchases requiring public advertisement and competitive bidding, and,

WHEREAS, the (governing body) has determined that it is in the best interest of the City/Town of ____________________ to increase said amount.

NOW THEREFORE, BE IT ORDAINED BY THE (governing body) of the City/Town of _________________, THAT:

Section 1. Public advertisement and competitive bidding shall be required for the purchase of all goods and services exceeding an amount of ______________________ dollars ($00,000) except for those purchases specifically exempted from advertisement and bidding by the Municipal Purchasing Act of l983.

Section 2. Three written quotations are required whenever possible for purchases costing less than the ________________($00,000) bid threshold adopted for competitive bidding and public advertisement, but more than ____% of the threshold amount.  

Section 2. This ordinance shall take effect from and after its final passage, the public welfare requiring it.

NOTES:

  1.  Each municipality should add the appropriate provisions for readings or passages and signatures.
  2.  Municipalities subject to the Municipal Purchasing Law of 1983 that do not have a a full time purchasing agent and centralized purchasing authority are authorized to increase the dollar amount required for completive bidding and public advertisement from two thousand five hundred                  dollars ($2,500) to a maximum of ten thousand dollars ($10,000), by ordinance.  See exceptions in Tenn. Code Ann. Section 6-56-306.
  3.  Municipalities that are subject to the Municipal Purchasing Law of 1983 that do have a full time purchasing agent and centralized purchasing authority are authorized to increase the dollar amount required for competitive bidding and public advertisement from ten thousand dollars ($10,000)  to a maximum of twenty-five thousand dollars ($25,000), by ordnance.
  4. Three written quotations are required whenever possible for purchases that are less than the competitive bidding and public advertisement bid threshold, but more than forty percent (40%) of it. Municipalities may also require three written quotations whenever possible for purchases that are less than forty percent (40%) of the competitive bidding and public advertisement bid threshold.  
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