Report 2016-111 Recommendation 14 Responses
Report 2016-111: City of Irwindale: It Must Exercise More Fiscal Responsibility Over Its Spending So That It Can Continue to Provide Core Services to Residents (Release Date: November 2016)
Recommendation #14 To: Irwindale, City of
To help ensure that it receives the best value for contracts it exempts from competitive bidding, the city should revise its purchasing policy to require its staff to perform a price analysis and prepare a cost justification form and place the document in each contract file as evidence that the contract price is fair and reasonable.
Annual Follow-Up Agency Response From October 2019
Although the City's Purchasing Policy exempts professional services from competitive bidding, as is typical of most cities, the City nevertheless agrees that negotiating a fair and competitive price for its professional service contracts is important, as stated in the City's November 8th 2016 response letter.
On June 26, 2019, the City Council approved the updated Purchasing Policy which includes a form for departments to provide a cost justification when selecting professional services contracts that are exempt from the bidding process.
- Completion Date: June 2019
California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented
We reviewed the updated purchasing policy and the cost justification form and found that, if implemented, they would address the concern we identified.
Annual Follow-Up Agency Response From October 2018
Although the City's Purchasing Policy exempts professional services from competitive bidding, as is typical of most cities, the City nevertheless agrees that negotiating a fair and competitive price for its professional service contracts is important, as stated in the City's November 8th 2016 response letter.
The City will be presenting an updated Purchasing Policy to include a Cost Justification form for Council approval on 11/14/2018.
- Estimated Completion Date: 11/14/2018
California State Auditor's Assessment of Annual Follow-Up Status: Pending
1-Year Agency Response
Although the City's Purchasing Policy exempts professional services from competitive bidding, the City agrees that negotiating a fair and competitive price for its professional service contracts is important, as stated in the City's November 8th 2016 response letter.
The City plans to update its Purchasing Policy during the current fiscal year.
- Estimated Completion Date: 06/30/2018
- Response Date: November 2017
California State Auditor's Assessment of 1-Year Status: Pending
6-Month Agency Response
Although the City's Purchasing Policy exempts professional services from competitive bidding, the City agrees that negotiating a fair and competitive price for its professional service contracts is important, as stated in the City's November 8th response letter.
The City plans to update its Purchasing Policy during the upcoming fiscal year.
- Estimated Completion Date: 06/30/2018
- Response Date: May 2017
California State Auditor's Assessment of 6-Month Status: Pending
60-Day Agency Response
Although the City's Purchasing Policy exempts professional services from competitive bidding, the City agrees that negotiating a fair and competitive price for its professional service contracts is important, as stated in the City's November 8th response letter. The City will consider revising its Purchasing Policy.
- Estimated Completion Date: 06/30/2018
- Response Date: January 2017
California State Auditor's Assessment of 60-Day Status: Pending
All Recommendations in 2016-111
Agency responses received are posted verbatim.