Umatilla County considers increase to formal bid threshold for projects

Published 2:00 pm Monday, December 16, 2024

PENDLETON — Smaller Umatilla County projects may see increased competition moving forward, after a first reading proposal to increase the threshold for requiring formal bids.

During the county commissioners meeting Wednesday, Dec. 11, the members heard a proposal to allow informal bids for contracts from $5,000 to $25,000. Before the vote, the upper limit for informal bids was $10,000 and has been since 2005. The ordinance will come before the commissioners again in January 2025 for its second reading and a decision.

Doug Olsen, county counsel, presented the proposed public contracting ordinance change. Under the 2005 ordinance, contracts under $5,000 do not require bids or board approval at all, contracts from $5,000-$10,000 require board approval and multiple bids when possible (but not a formal bidding process), and anything over $10,000 requires a formal bidding process including initial board approval, a notice requesting bids as well as board approval for awarding the contract.

The 2024 update to this ordinance would shift both the $10,000 limit for informal contracts and the $10,000 threshold for formal bidding up to $25,000. Anything over $5,000 would still require board approval.

Speaking in support of the change, administrative services director Dan Lonai mentioned how costs have increased since 2005, making some projects meet the formal bidding requirements now when they wouldn’t have 19 years ago. Something that was $10,000 in 2005 might be $18,000 now, he said, all due to the time that’s passed.

“I’m very in favor of this,” Lonai said. “It would actually improve our relationships with the vendors, local vendors, and actually make our jobs — and be able to do some things — quicker.”

Sometimes, he said, contractors decide not to submit a quote for projects that “aren’t that big of a deal” and barely hit that $10,000 mark, since it can take a lot of effort to create a formal proposal.

Lonai said he expects the change will take pressure off some of the relationships the county has with local contractors. Plus, the larger informal bidding range may entice some vendors to offer bids who otherwise wouldn’t have, increasing competition and diversifying options for the county’s projects.

“ We bump up against that $10,000 and that’s really not a lot,” added Commissioner Cindy Timmons, “especially in the construction world.”

Offering a neutral comment, chief financial officer for the county Robert Pahl emphasized the value of receiving multiple bids for a contract.

“ I think it’s really important that as a public body that we seek alternatives so that we can choose the best one,” he said, “and so I hope that we can adhere to getting quotations for everything between $5,000 and $25,000.”

Timmons made the motion — which was unanimously approved — to set the second reading of the proposed ordinance for the commission’s next meeting on Jan. 2, 2025.

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