PURCHASING OVERVIEW

DOING BUSINESS WITH THE CITY OF COMMERCE

The City of Commerce is located in Los Angeles County at 2535 Commerce Way, Commerce, California 90040, and services approximately 13,200 residents. The Finance Department's Purchasing Division processes purchase orders and contracts annually in excess of approximately $15,000,000. The variety of goods and services purchased ranges from very simple items, such as office supplies, to highly specialized services and equipment for park improvements. The City of Commerce has an adopted purchasing ordinance [Commerce Municipal Code Chapters 3.16 and 3.18] to address the fundamental goal of obtaining maximum value for the City’s money. The policy established by this Chapter encourages free and open competition in purchasing goods and services through an open and visible process. This Chapter promotes public scrutiny in accordance with a professional ethic of fairness and openness.
 
LEGAL CONSIDERATIONS
Chapters 3.16 and 3.18 of the Commerce Municipal Code reflect City mandates for the purchase of goods, materials and services. The City of Commerce is subject to these conditional requirements and must award bids to the lowest responsible vendor.

PURCHASE ORDER REQUIRED
Purchase order numbers are issued for all purchases made by the City. Vendor’s doing business with the City should request a purchase order number from staff at the time an order is placed to ensure payment is made in a timely manner. 

VENDOR/BID LIST
The City maintains a Vendor Database for one year and is used as a resource in locating prospective vendors. To become a part of the Vendor Database simply submit your information onto the Vendor Information page on the City’s Website: http://www.ci.commerce.ca.us/vendorinfo.asp

You can also fax your information to the City at (323) 838-4243 or you may mail it to:

City of Commerce
2535 Commerce Way
Commerce, California 90040
Attn: Purchasing Division/Finance Department

Placement of the information into the Vendor Database does not guarantee the vendor will be contacted by the City on subsequent bids. However, every effort is made to utilize vendors interested in doing business with the City and to incorporate those firms into the purchasing process. Please note that due to the overwhelming number of vendors on the City’s Engineering and Construction Consultants list, any project exceeding $50,000 will be advertised in the following trade papers: Dodge Greensheet, BidAmerica, Construction Market Data, local newspaper and on the City’s Website: http://www.ci.commerce.ca.us/purchasingdiv.htm

Small projects are handled by the Community Development Department and are administered using their qualified vendor list. Although every effort is made to contact vendors for quotes when applicable, vendors are advised to keep abreast of upcoming Public Works Capital Improvement Program (CIP) projects by referencing the trade papers and periodically viewing the City’s Website where current bids and Requests for Proposals (RFP’s) are posted.

The City of Commerce makes every effort to encourage competition and to include interested vendors in the purchasing process for the purchase of supplies, equipment and services. The City encourages information regarding products, equipment, and services. For further information about the City, or about the City’s purchasing procedures, contact the Purchasing Division of the Finance Department at (323) 722-4805, Ext. 4421. You may also access all City information at our website: http://www.ci.commerce.ca.us

INSURANCE REQUIREMENTS

FOR CONTRACTORS DOING WORK FOR THE CITY
1) General Liability total aggregate of 2 million. Which should state:
"Additional insured endorsement names the City of Commerce as additional
insured and that their insurance is primary and noncontributory. 
 
2)  The City of Commerce requires a separate Certificate of Endorsement that
enforces the general liability statement:
"Additional insured endorsement names the City of Commerce as additional
insured. The certificate should indicate that their insurance is primary and noncontributory."

3) Proof of workmans comp insurance is required. 

PURCHASING LIMITS
The responsibility for implementation of the City’s established purchasing procedures has been delegated by the City Administrator to the Purchasing Division of the Finance Department, which serves as the City’s Purchasing Agent. City departments engage in purchasing activity on behalf of the City. Requisitions for goods and services are submitted by City departments to the Purchasing Division, who has final approval authority for all City purchases.

Equipment, Materials, Supplies, and General Services
Purchase Amount Purchasing Procedure:
1. Less than $5,000:  prudent judgment required; competitive bidding used whenever practical; bid awarded by department via purchase order.
2. $5,000 to $20,000:  City department solicits at least three proposals (verbal with written quotes); bid awarded by Finance Department via purchase order or contract.
3. $20,000 to $50,000:  Formal Invitation for Bid or Request for Proposal documents; advertising for bids or proposals; City Administrator approved soliciting for bids or proposals; City Administrator awards contract.
4. Over $50,000: Formal Invitation for Bid or Request for Proposal procedures required. City contract signed by Mayor, or, under certain circumstances, by another authorized City agent, with following formal City Council approval; initiated by a department staff report, with a signed scope of work and City contract.

Professional and Consultant Services
Purchase Amount Purchasing Procedure:
All Professional and Consulting Services require formal City Council approval, initiated by the using department staff report, with a signed scope of work and City contract.