4. Purchases REQUIRING a PO A PO or contract is required for all purchases of goods, materials, supplies, and equipment purchases of $3,000.00 or greater. POs are obtained from the Finance Department through the accounting system. A PO must be filled out in its entirety and include all appropriate supporting documentation prior to being submitted to the Finance Department for approval. POs must be signed by the City Manager or designee prior to authorizing the purchase. Purchases of supplies and equipment that include a service component, such as installation or maintenance, require a contract when the service component cost equals or exceeds the purchase cost of the supplies and equipment. Funding for a PO or contract is verified by the Finance Department; however, responsibility lies with the department director to ensure that adequate funding is available and that the total annual expenditure does not exceed the authorized budget appropriation. a. Purchases of $3,000.00 to $9,999.99, per LNMC 3-6-4(3): Purchases of goods, materials, supplies, and equipment of an estimated expenditure of $3,000.00 and less than $10,000.00 require an attempt to receive three (3) verbal bids from vendors and each of these bids and the efforts to obtain them must be documented. b. Purchases of $10,000.00 to $49,999.99, per LNMC 3-6-4(4): Purchases of goods, materials, supplies, and equipment of an estimated expenditure of $10,000.00 and less than $50,000.00 require soliciting at least three (3) written competitive bids prior to submitting the PO or contract to the Finance Department for approval. Documentation for written bids shall be attached to the PO. Documentation for written bids should include the following: i. Vendor information such as business name, contact person, phone number, etc. ii. Quote details such as the total amount proposed, shipping information, and the date the quote was received. (For reorders, the Purchasing Manager shall review and confirm the written bids.) PURCHASING POLICY Page 3 of 10 COUNCIL POLICY LAST ADOPTED 6/4/2024 137