A new report from Berkeley's City Auditor found that in fiscal year 2024, Berkeley authorized $43 million worth of non-competitive contracts. In fiscal year 2022, the city authorized nearly $85 million over 10 years for two recycling contracts without seeking bids from other contractors.
The city’s purchasing manual states that service contracts above $50,000 must go through a formal competition process, but this policy isn’t included in the City Charter or Municipal Code.
Competition among vendors helps keep costs down, and keeps the city accountable and transparent in how it spends its money.
According to the auditors report, inconsistent guidance and training for staff, as well as short staffing contributed to the problem. The report recommends that Berkeley clarify its policies, and improve its transparency and efficiency in the contracts process. City management agreed or partially agreed to the findings and recommendations.
