Detroit committee advances changes to procurement rules to speed small purchases and prioritize Detroit firms

The Budget, Finance & Audit Standing Committee advanced amendments to Chapter 17 of the 2019 Detroit City Code (Finance, Article V: Purchasing and Supplies) that would raise purchase thresholds, create a delegated council-approval pathway for many contracts and provide incentives for certified Detroit businesses.

Chief Procurement Officer Sandra Stall told the committee the proposal is intended to reduce delays and lower barriers for small, local suppliers. “For FY24, that has resulted in over 1,700 new suppliers registered, 431 first time bidders participating, 312 awards to new suppliers. And for FY24, we had 32% of our dollars awarded to Detroit-based businesses,” Stall said during a slide presentation on outreach and benchmarking. She described current timelines for purchases above the council-approval threshold as “an average of 4 to 6 months or more,” and said raising thresholds would free staff to focus on complex procurements.

The ordinance would: raise the micro-purchase threshold from $2,000 to $5,000; expand the informal solicitation range (roughly…