The Municipal Research and Services Center (MRSC) in Washington state recently responded on their website to the following question:
Must the
city council approve the award of a contract for a public works project
that costs about $300,000 and for supplies and equipment that will cost
over $7500?
MRSC's answer: Here is the answer that MRSC provided to this question:
As general background, the
council is the body within a city that has general authority over the
award of all contracts, whether for a public works contract or for a
purchase of supplies or equipment. So, the authority to award a bid -
which precedes the actual contract - rests with the city council. I
would expect the council to follow this approach when awarding large
contracts. So the award of a bid on a public works contract that is
worth $300,000 or on an expensive purchase should be first approved by
the city council.
However, the council may delegate to an
administrative officer the authority to enter into contracts below a
certain amount without prior council approval (this assumes the contract
is within the appropriate budget appropriation). Some cities have, for
example, applied such a delegation to purchases costing under $10,000 or
to an even higher amount. This should be done expressly in a council
resolution, in the city's purchasing policy, or the like, that
specifically indicates the monetary limits of that delegation.
MRSC's website: MRSC offers a wealth of information for local governments. Click here to visit their website.
Mike Purdy's Public Contracting Blog
© 2013 by Michael E. Purdy Associates, LLC
http://PublicContracting.blogspot.com
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