Agenda 2/14/2023 Item #16E 1 (County contracts with a value greater than $4 million to be placed on the regular agenda for approval)16.E.1
02/ 14/2023
EXECUTIVE SUMMARY
Recommendation for the Board to accept the County Manager's procedure for County contracts
(and other contractual documents) with a value greater than $4 million, to be placed on the regular
agenda for approval.
OBJECTIVE: For the Board to accept the County's Manager's procedure for County contracts (and
other contractual documents) with a value greater than $4 million to be placed on the regular agenda for
approval.
CONSIDERATIONS: The Board through the adoption of Procurement Ordinance 2017-08, as amended,
established an amount of fifty thousand dollars ($50,000.00) as the County's threshold for formal
competitive solicitations. The Board also approves the award and execution of the resulting contracts.
The current and longstanding practice is that all contracts (and other contractual documents) valued
greater than one million dollars be placed on the Board's regular agenda for approval. It is believed that
this informal practice began years ago under a prior County Manager and has continued to date.
According to the U.S Consumer Price Index (CPI) for goods and services, inflation increased by 45.9%
during the last fifteen years. For 2022, the CPI inflation is reported at approximately 7.1% and Producer
Price Index (PPI) rose to 7.4%. For construction materials the PPI increased substantially, liquid asphalt
used in paving projects (19.8%), concrete products (14.3%), plastic construction products (11.3.%), truck
transportation of freight (11.1 %) and diesel fuel (59.6%). According to the Associated General Contractors
of America, the price of materials and services used in construction will continue to rise. All these factors,
including supply chain disruptions, logistics issues, energy prices, labor shortage, higher material costs
and a rise in construction demand are impacting the County's cost of construction bids. As the cost of
building materials continues to rise, so will the cost of construction projects.
Many Florida agencies, as a best practice, approve contracts through their consent agenda without a
specific threshold, unless otherwise directed by the Board or County Manager. The best practice results in
streamlining the approval process and creating efficiency. The County Manager and Staff recommend
formally adopting a procedure whereby County contracts (and other contractual documents) having a
minimum value greater than $4 million be placed on the regular agenda for approval.
Staff will be responsible for identifying items that may need a presentation before the Board due to the
complexity, adverse impact, policy changes or public need. The Board and County Manager will continue
to have the authority where there is strong public interest, or any other reason, to place items below that
threshold amount on the regular agenda and move items from consent to regular agenda.
FISCAL IMPACT: There is no budget expenditure associated with this action. The budgetary
expenditure will be reported at the time the contracts are presented to the Board for approval.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to
form and legality and requires majority vote for approval. -JAK
GROWTH MANAGEMENT IMPACT: There is no impact on the Growth Management Plan.
RECOMMENDATION: For the Board to accept the County's Manager's procedure whereby County
contracts (and other contractual documents) having a minimum dollar value greater than $4 million be
placed on the regular agenda for approval.
Prepared By: Sandra Herrera, Director, Procurement Services Division
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16. E.1
02/14/2023
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.E.1
Doe ID: 24411
Item Summary: Recommendation for the Board to accept the County Manager's procedure for County contracts
(and other contractual documents) with a value greater than $4 million, to be placed on the regular agenda for
approval.
Meeting Date: 02/14/2023
Prepared by:
Title: Business Technology Analyst, Senior — Procurement Services
Name: Sara Schneeberger
01/17/2023 9:59 AM
Submitted by:
Title: Manager - Procurement — Procurement Services
Name: Sandra Herrera
01/17/2023 9:59 AM
Approved By:
Review:
Procurement Services
Procurement Services
County Attorney's Office
County Attorney's Office
Office of Management and Budget
Community & Human Services
County Manager's Office
Board of County Commissioners
Ana Reynoso
Level 1 Purchasing Gatekeeper
Sandra Herrera
Director Review
Jeffrey A. Klatzkow Level 2 Attorney Review
Jeffrey A. Klatzkow Level 3 County Attorney's Office Review
Debra Windsor
Level 3 OMB Gatekeeper Review
Maggie Lopez
Additional Reviewer
Dan Rodriguez
Level 4 County Manager Review
Geoffrey Willig
Meeting Pending
Completed
01/17/2023 1:16 PM
Completed
01/17/2023 1:34 PM
Completed
01/18/2023 10:13 AM
Completed
01/18/2023 10:14 AM
Completed
01/18/2023 10:34 AM
Completed
01/24/2023 2:19 PM
Completed
02/01/2023 12:44 PM
02/14/2023 9:00 AM
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