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personal service by the insurance company to the City and its em to ees <br />is such a critical fact p .y <br />or, the purchase of insurance ~s not compatible <br />with standard competitive bidding procedures. Use of an a ent of <br />. g <br />record or requ~r~ng a spec~f~c insurance contract is a reasonable <br />common practice in the insurance industry that provides an efficient <br />and effective process for gathering information about service, cost <br />and adm~n~strat~on. ' <br />alternative methods of selecting the provider <br />or administrator result in stronger management of cast and service <br />and therefore greater benefit far dollars spent, <br />,fig} Contract changes. During the course of performin some <br />ubl~c contracts whe g <br />p. n ~t becomes apparent that changes in the spe- <br />c~f~cations or quantities are required or that modifications to the <br />work being performed are required and that it is less costl to the <br />ubl~c to ad ust the e ' y <br />p ~ x~sting public contract rather than suspend <br />the work and call for new bids the purchasing agent needs within <br />limits some flexibility for adjusting public contracts at a time <br />the work is being performed. Further, before some public contracts <br />are undertaken it is impossible to fully ascertain the nature of the <br />gaols and services required. Therefore, within limits, it is in the <br />public interest to a11ow amendments, change orders or modifications <br />to public contracts previously awarded rather than to terminate work <br />on public contracts long enough to allow going throu h a com etitive <br />bid rocess . Al i o ' g p <br />p wing adjustment of contract work not to exceed 10% <br />of the contract amount is a common and reasonable standard in man <br />public a encies. Further h v' ~ y <br />g a Ong the purchasing agent review the <br />situation before exceeding the 10% limit assures administrative <br />accountability and protects the public interest without burdenin <br />the council with more s ecial m ~ • ~ g <br />p eet~ngs and adm~n~strat~ve detail <br />and delaying performance of public contracts. <br />~h} Certain repair contracts. when the City's a ui ment must <br />be re aged and o q p <br />p verhauled, the cost and nature of the repair often <br />cannot be determined without extensive preliminary dismantlin of <br />the a ui ment. Further g <br />q p specially trained personnel may be required <br />who are available from only one source, Therefore, it is in the <br />publ ~ c interest to avoid the delay and useless ex ense involved i n <br />a com etitive .p <br />p bldd~ng process for equipment repa~,r contracts when <br />the nature of the malfunction or worn parts cannot be ascertained <br />prior to beginning the work, <br />~i} Contracts for less than $2,504. ORS 279,015 d authorizes <br />~} <br />a public agency to exclude from compet~t~ve bidding all cantracts for <br />supplies with a value less than $2,500, if formal com etitive bids <br />based on detai 1 ed p <br />spec~ficat~ons and advertised solicitation of bid <br />were used to award all public cantracts under $2,500, the cost of <br />procurement would be disproportionate to any benefit received from <br />competitive bids. Beyond the classification of public contracts set <br />forth herein, the purchasing agent is qualified to establish roce- <br />dures for such contract p <br />s that reasonably balance the value of compe- <br />titive bids with the administrative costs. <br />~ Purchases for resale. When acquiring goods for resale <br />Findings - 2 <br />