Background
The Municipal Purchasing Act of 1983 details the process by which municipalities may make purchases. Under the provisions of the 1983 law with amendments, open market purchases under $1,000 are unrestrained by law, requiring no bidding or advertisement at all. For purchases between $1,000 and $10,000, there is no requirement to advertise and a city may make purchases on the open market, provided they have obtained at least three (3) competitive quotes, when possible. For purchases, leases or lease-purchase agreements that exceed $10,000 in any fiscal year, municipalities are required to publicly advertise and competitively bid all purchases. However, Tennessee Code Annotated, Section 12-3-1003 authorizes any municipality to purchase from any federal, state, or local governmental unit or agency secondhand articles or equipment or other materials, supplies, commodities, and equipment without public advertisement and competitive bidding as required by the Municipal Purchasing Act of 1983.
Problem
The need for purchasing of used or second hand goods and services is experienced by all municipalities in various forms. The inability to make these type purchases without the cumbersome and time consuming process of competitive bidding and public advertisement often results in unnecessary spending and impedes a municipality's ability to be cost effective and good stewards of public funds.
Proposed Remedy
Amend Tennessee Code Annotated, Section 12-3-1003 to authorize any municipality to purchase used or second hand articles, goods, equipment, materials, supplies, or commodities from any private individual or entity without public advertisements and competitive bidding provided the purchased item is valued through a nationally recognized publication or by a licensed appraiser.
Anticipated Benefits to Municipalities
If the statutes were amended to allow municipal purchasing of used or second hand items, a more time efficient and cost effective form of purchasing could be utilized by municipalities further ensuring good stewardship of public funds.
