The Procurement Process

Our objective is to purchase required goods and services in a timely manner to meet the City’s needs at a fair and reasonable price utilizing an open competitive bidding process.

The City uses 4 methods to procure goods and services.

  1. An Invitation to Quote (ITQ) is a method to seek public competition for purchases valued less than $60,000. This is an informal and simplified procedure with a very short advertising period (5 days) which results in the issuance of a purchase order to the lowest bidder.
  2. An Invitation to Bid (ITB) is the standard method when public competition is sought for purchases of goods or non-professional services valued at more than $60,000. When this procedure is used, the contract award is based upon the lowest responsive and responsible bid. The City uses an ITB to hire a contractor for public works.
  3. A Request for Proposals (RFP) is the standard method used for competitive purchases for professional services costing more than $15,000, and an award is based on best value rather than the lowest price. Proposals are evaluated and ranked according to the criteria identified in the RFP. Award is made after review of scores and rationale of the evaluation committee on the basis of criteria.
  4. A Request for Qualification (RFQ) is another method to obtain competitive purchases for professional services costing more than $15,000 and an award is based on the qualifications of respondents. The selection of architects or engineers is typically accomplished through an RFQ. Similar to the RFP, the award is made after review of scores and rationale of the evaluation committee on the basis of criteria.

Benefits

The City of New Orleans elicits the services of providers nationwide for ongoing contractual work. Securing one of these contracts can help your company grow tremendously.

Benefits of obtaining city contracts can include:

  1. Assured Payment: while City’s payment terms are NET30, a city contract can allow vendors to rely on receiving steady monthly revenue.
  2. Strengthen Company Value: having city contracts can make your company more valuable when it is time to sell your company or apply for a business loan or line of credit. Contracts can be passed on to the buyers of your business making your company a more attractive acquisition.
  3. Find More Opportunities: having a city contract can increase your networking potential. Future clients will find you much more attractive, and they will gain higher levels of trust in your company.
  4. Advantages for socially and economically disadvantaged businesses: Our bureau works closely with the Mayor’s Economic Development Office and the Office of Supplier Diversity to ensure that City departments give due consideration to contracting with socially and economically disadvantaged businesses.

The Bureau of Finance reminds all businesses that:

  • State law prohibits giving any gratuity or gifts to City employees. State law also prohibits City employees from accepting any gratuity or gifts of any kind. See La. R.S.42:1111 and R.S.42:1115.
  • City code prohibits City employees from ordering, requesting, or receiving goods or services without an approved purchase order or fully executed contract/agreement. See sections 70-420 and 70-421 of the Home Rule Charter.