Title
Consider approving Resolution No. 2025-136 amending the City's purchasing policy to increase the City Manager's purchasing authority from $50,000 to $100,000; and take appropriate action.
Body
REQUESTOR:
Finance Department
BACKGROUND:
Senate Bill 1173, enacted during the 89th Texas Legislative Session, raises the competitive procurement threshold for municipalities, school districts, counties, and other political subdivisions from $50,000 to $100,000. This means that before entering into contracts above $100,000, entities must follow competitive bidding, competitive sealed proposals, or other approved procurement methods. Purchases below $100,000 will have fewer statutory procurement requirements, though some procedural safeguards remain. Senate Bill 1173 will go into effect on September 1, 2025.
In conjunction with Senate Bill 1173, passed during the 89th Legislative Session, and consistent with the discussion on June 24, 2025, Budget Workshop, the City Council has directed an update to the City Manager's approval authority. The proposed change would increase the current limit from $50,000 to $100,000.
DISCUSSION:
The Key Changes for Farmers Branch include:
1. Competitive Procurement Threshold Increase:
- Current Law: Competitive bidding required for purchases of over $50,000.
- New Law: Competitive bidding is required only for purchases over $100,000.
2. Historically Underutilized Business (HUB) Contact Requirement:
- Purchases between $3,000 and $100,000 now require contracting at least two HUB vendors (instead of $3,000 to $50,000).
3. Anti-Splitting Rule Remains:
- The law explicitly prohibits dividing purchases to stay under the $100,000 threshold to avoid bidding.
- Effective Date: September 1, 2025, applying to purchases made on or after that date.
The Senate Bill 1173 gives City staff more options to procure goods and services between $50,000 and $100,000 without the time-consuming formal bid process, potentially speeding up projects. A...
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