The City recognizes the importance of involving local businesses in the procurement process.
A number of outreach efforts are conducted annually to ensure that local businesses are included in Tempe's procurement processes.
Procurement routinely meets with the Tempe Chamber to ensure its membership is aware of and registered with the City and uses it's on-line membership list to augment the City's bid list when solicitations are published.
Although the City does not have any specific requirements to solicit from local Arizona-based businesses, Procurement Officers make it a common practice to reach out to local businesses when soliciting quotes and bids. Most small dollar requirements are awarded to local businesses based on the natural advantages they retain due to their local presence.
When conducting procurements that exceed the formal limit of $100,000, it is not possible to limit opportunities to only Arizona businesses as the City is required to notice any interested party for the particular commodity or service being solicited.
For procurements that are valued under the formal limit of $100,000, the City has discretion in determining which vendors will be invited to participate. As a matter of practice, Procurement Officers make it a point to reach out and solicit from Arizona based business when spending under the formal level where only three quotes are required. If sufficient competition is not available within the Arizona market, additional firms can be contacted in order to satisfy the minimum quote requirements.
The City completed a geographic spend analysis to more clearly understand where city dollars are being spent. The results of this study are shown below.
The combined supplier spend shows that over 88% of the City's average annual spend is with businesses who are either located in, or have a strong presence, in Arizona.
No. The following will illustrate the various purchasing levels and the allowed purchase authority
Annual Spending Level Requirements
$0 to $4,999
No quotes are required and can be handled at the department level
$5,000 to $99,999
A minimum of three competitive quotes are required and can be handled at the department level or through Procurement
$100,000 and up
A formal bid is required and will be conducted through Procurement