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Qualifications, and regularly review the MQBL to determine if local firms are underrepresented and to update company information and qualifications. 3.12. Qualified Low Bidder: A vendor meeting all the qualifications of the City specifications at the lowest price. 3.13. Professional Services Contract:2 Contract between a provider of professional services (e.g. accounting firm, architect, engineer) and the City to provide a service for a set period of time. The maximum length for a contract is five years(including potential extensions; e.g. a four-year contract with a one-year possible extension is fine, but a three-year contract with three possible extension years(for a total of six years) is prohibited). The contract must follow the procedure for its total contract price(e.g. a contract for$30,000 a year for five years is a$150,000 contract).Note: use the Design Professional Services Agreement for architectural or engineering services that have design responsibility. 3.14. Price Quotes: A written(physically or electronically) statement from a vendor, service provider, or contractor signifying that they will provide a certain good or service at a certain price. 3.15. Purchase Order(PO): Authorizes City staff to have a vendor supply up to a certain dollar amount for one time or recurring supplies and/or services for a maximum term of one year. All POs are subject to the same procedures as other purchases. POs for services require a vendor signature before routing for City signatures. There are the following types of POs: 3.15.1. Open Purchase Order(Open PO): An ongoing Purchase Order with multiple purchases over a period of time within the fiscal year. Open POs must have a "not-to-exceed" price limit. This not-to-exceed price is the official value when determining which procedure to use. 3.15.2. Recurring Purchase Order(RPO): A Purchase Order for purchases occurring regularly and on a predictable timeframe (e.g. annually). For those recurring POs that exceed$100,000,the Finance Department will coordinate submission to City Council at the beginning of the fiscal year. 3.16. Request for Proposals(RFP): Used to procure professional services that have well- defined specifications and an expectation that the consultant can provide accurate pricing based on written or verbal specifications. Examples of projects that require a RFP include design and construction management services, planning studies, and audit 2 Legal service contracts can be exempt from the selection and time limit provisions of this policy to the extent specific counsel is required:(1)by the insurance pool:(2)to immediately respond to litigation:or (3)because of the need for specialized legal services. In these instances, a memo explaining thecircumstances and selection process shall be provided to the Finance Department. Temporary employment contract agencies are also exempt from the selection and time limit provisions ofthis policy. However, it is expected that City staff will utilize more than one temporary employment agency to place temporary staff depending on the skill requirements. Purchasing Procedures and Manual 6