Welcome
The City of San Jose purchases a wide variety of merchandise through a centralized purchasing system. The purpose of this guide is to acquaint you with the City's purchasing policies and procedures and explain how you can do business with the City. Our goal is to assist you in your marketing efforts and promote partnerships between you and the City of San Jose. If this guide does not answer all your questions, please ask us....
Centralized Purchasing
Procurement of supplies, materials, equipment and general services are centralized in the Finance Department / Purchasing Division under the Central Procurement Manager. Please note that funds for the acquisition of goods or services may not be committed by any other Department of the City but Purchasing. Therefore, payments will not be made for goods or services delivered without an authorized Purchase Order number.
Professional Consultants
The Purchasing Division does not process professional consultant contracts. They are administered by each City Department who has a need for such service.
Sales Calls and Contacts
Office hours are 7:30 a.m. to 12 p.m. and 1 p.m. to 4:30 p.m. Monday through Friday. To save time and ensure you receive adequate attention, we recommend that you make a definite appointment before coming to the Purchasing Division. Courtesy visits are not encouraged as they can disrupt the daily work flow and in many cases the person you want to see will be unavailable. Contact the receptionist at (408) 918-7800 and request the buyer's name and phone number for the product or service you provide.
Vendor Registration
Purchasing maintains a list of interested vendors. The City's Resource Questionnaire may be viewed and printed from this site in Adobe's Portable Document Format (PDF). Upon receipt of the completed form, your firm's name will be placed on the vendor list. Keep in mind that due to the number of businesses Purchasing deals with, submitting a completed questionnaire does not guarantee a vendor will be notified every time a quotation or bid is solicited for that particular commodity. Failure to respond to three (3) requests for quotes or bids may result in removal from the vendor list. Return all requests and mark them "No Bid" in order to remain on the list.
Methods of Procurement
Petty Cash: City personnel are authorized to make purchases up to $500 in cash.
Open Purchase Order (also called a Blanket Order): This is a line of credit established with a variety of vendors to allow City personnel to obtain unanticipated supplies or services directly from vendors on an as-needed basis for a specific period of time not to exceed a specific dollar amount. Competitive price quotations may be solicited and award may be to other than the lowest priced vendor based on criteria such as location of the vendor to the requesting department and completeness of inventory.
Formal Bidding: Formal bidding procedures are utilized when the cost of supplies, materials or equipment required on a single purchase exceeds $100,000. The process requires advertising in a newspaper of general circulation or on the City's web site, receiving sealed bids, publicly opening the bids and awarding the purchase to the lowest responsive bidder meeting specifications.
Informal Bidding: This informal process for a single purchase differs from formal bidding in that quotations are solicited from at least three (3) vendors when practicable. These quotes can be obtained either by telephone, fax or mail and are not normally advertised. Award is made to the lowest responsive vendor meeting specifications.
Request for Proposal (RFP): This is used primarily for services and highly technical commodities. An RFP differs from a formal bid in that proposals may be solicited in a one or two-step process. The award can be to other than the lowest priced vendor. The following criteria are considered when evaluating which proposal is the most advantageous to the City:
Cost to the City
Quality of the proposed service
Capabilities and expertise of the vendor
Ability of the vendor to perform
Past service record/references
Proposal that best meets all the requirements of the City
Shipping
All orders must be delivered to the address specified on the Purchase Order. Vendors should not deliver goods to an alternate address unless authorized by Purchasing as the processing of your payment will be delayed.
Changes in Orders
The Purchase Order is the City's contract with you. Any changes to the contract must be approved in writing by the Finance Department / Purchasing Division.
Billing and Payment
The City requires invoices to be submitted in duplicate. The Purchase Order number MUST appear on all invoices, shipping tags and all correspondence relevant to the order. Payment is made only upon delivery and acceptance of all material, equipment or services as specified on the Purchase Order. Partial payments are not made unless negotiated with the buyer in advance and specified on the Purchase Order. Every attempt will be made by the City to process payments within 30 days.
Important: Read the Purchase Order to obtain the correct address to submit invoices. Do not assume the address is the same as a previous Purchase Order. The Purchase Order also indicates who to contact if you have questions regarding payment of invoices. Invoices may be returned to the vendor if mailed incorrectly.
Licenses and Permits
Vendors doing business with the City must have a City of San Jose Business License. Business Licenses may be obtained from:
Tax
The City pays California State sales and use taxes when applicable and is exempt from Federal Excise tax.
Insurance
Vendors who perform a general service for the City will be required to submit proof of insurance coverage as specified by the City of San Jose's Risk Manager. Questions on the City's requirements can be answered by calling (408) 277-4151.
Bid and Performance
Bonds may be required when it is necessary to protect the interest of the City. Most contracts issued by the Finance Department / Purchasing Division do not require bonding.
Prevailing Wage
Contracts for maintenance of City facilities require vendors to pay prevailing wages. Contact the Office of Contract Compliance for additional information on Prevailing Wages at (408) 277-4025.
Recycled Products
The City prefers to use products with recycled content and/or products that are recyclable. If you can provide the City with such products, please contact our offices at (408) 277-4795.
For more information visit the Environmentally Preferable Purchasing (EPP) website.
Gifts and Gratuities
The City of San Jose maintains a strict policy prohibiting the acceptance by its employees of gifts and/or gratuities from any vendor or potential vendor. (SJMC 10.36.350)
Minority, Small and Local Business
The City of San Jose is very committed to promoting opportunities with small businesses. Purchasing staff will answer general question you may have on the City's purchasing processes and procedures.
Bid Information,
Buyer's List,
Resource Questionnaire.