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HomeMy WebLinkAboutProcurement Policy and Procedures Town Board Joel Gagnon, Supervisor +1-607-277-4788 | townboard@danby.ny.gov Mary Ann Barr 2021 The Town of Danby, New York 1830 Danby Road, Ithaca, NY 14850 https://danby.ny.gov PROCUREMENT POLICY AND PROCEDURES Note: This policy replaces the Procurement Policy and Procedures originally adopted by Resolution 24 of 1993 (passed on 12 April 1993) and subsequently amended by Resolution 24 of 2004 (passed on 12 January 2004), and Resolution 95 of 2010 (passed on 2 August 2010). Resolution 93 of 2022 to Adopt Revised Procurement Policy And Procedures As Written Below Moved By: Gagnon Seconded By: Connors Vote: Councilperson Aye Nay Absent Connors X Hunter X Schnabel X Woodworth X Gagnon X Resolution 93 approved and adopted on 5 April 2022 1. General Pursuant to Section 104-b of the General Municipal Law, which requires the governing body of every municipality to adopt a procurement policy for all goods and services that are not required by law to be publicly bid, the Danby Town Board adopted the following procurement policy by Resolution Number 93 of 2022. 1.1. Every purchase to be made must be initially reviewed to determine whether it is a Purchase Contract, a Public Works Contract, or exempt. 1.1.1. Public Works Contracts are contracts which involve substantial or extensive services, or involve special skills so that the acquisition of a commodity is incidental to the labor. Town of Danby, New York Res 93 of 2022 - Procurement Policy Replaced Res 95 of 2010 Page 2 of 4 1.1.2. Purchase Contracts are contracts where there is little or no labor involved (are primarily the procurement of commodities) and should be treated as Purchase Contracts (ref: OSC 1998 publication 3006 on the Applicability of General Municipal Law 103). 1.1.3. Property purchases and true rentals or leases of property do not constitute “purchase contracts” within the meaning and intent of General Municipal Law 103 and therefore are exempt from the requirements. 1.2. Once the determination of the type of purchase is made, a good faith effort should be made to determine whether the purchase is subject to competitive bidding, taking into account past purchases and the aggregate amount to be spent in a year. The following items are not subject to competitive bidding pursuant to Section 103 of the General Municipal Law: purchase contracts under $20,000 and public works contracts under $35,000; emergency purchases; goods purchased from agencies for the blind or severely handicapped; goods purchased from agencies for correctional institutions; purchases under State and County contracts; and surplus and secondhand purchases from another governmental entity. 2. Purchasing Methods The following method of purchase should be used when required by this policy in order to achieve the highest savings: Estimated Amount of Purchase Contract Method $0 - 500 Prior approval of Department Head $501 - 1,000 Prior approval from Town Supervisor $1,001 - 4,000 2 Written/fax/email quotations and prior approval from Town Supervisor & notification of the Town Board $4,000 - 19,999 Written/fax/email quotations and prior approval from Town Board Exception: Highway Superintendent is authorized to incur expenses not to exceed $4,000 for repair and maintenance of highway equipment without Town Board or Town Supervisor approval. Estimated Amount of Public Works Contract Method $0 - 1,000 Prior approval of Town Supervisor $1,001 - 10,000 2 Written/fax/email quotations and prior approval from the Town Board Town of Danby, New York Res 93 of 2022 - Procurement Policy Replaced Res 95 of 2010 Page 3 of 4 $10,001 - 34,999 3 Written/fax/email quotations and prior approval from Town Board 2.1 A good faith effort shall be made to obtain the required number of proposals or quotations. If the purchaser is unable to obtain the required number of proposals or quotations, the purchaser will document the attempt made at obtaining the proposals. In no event shall the failure to obtain the proposal be a bar to the procurement. 3. Policy 3.1 Documentation and an explanation are required whenever a contract is awarded to other than the lowest responsible offeror. This documentation should include an explanation of how the award will achieve savings or how the offeror was not responsible. 3.2 Pursuant to General Municipal Law Section 104-b (2) (f), this procurement policy specifies the following circumstances when, or types of procurement for which, in the sole discretion of the governing body, the solicitation of alternative proposals or quotations will not be in the best interest of the Town of Danby. 3.2.1. Professional services or services requiring special or technical skill, training or expertise. The individual or company must be chosen based on accountability, reliability, responsibility, skill, education and training, judgment, integrity, and moral worth. These qualifications are not necessarily found in the individual or company that offers the lowest price and the nature of these services are such that they do not readily lend themselves to competitive procurement procedures. In determining whether a service fits into this category the Town Board shall take into consideration the following guidelines: (a) whether the services are subject to State licensing or testing requirements; (b) whether substantial formal education or training is a necessary prerequisite to the performance of the services; and (c) whether the services require a personal relationship between the individual and municipal officials. Professional or technical services shall include but not be limited to the following: services of an attorney; services of a physician; technical services of an engineer engaged to prepare plans, maps and estimates; securing insurance services involving extensive writing, editing or art work; Town of Danby, New York Res 93 of 2022 - Procurement Policy Replaced Res 95 of 2010 Page 4 of 4 management of services for customized programs, or services involved in substantial modification and customizing of pre -packaged software. 3.2.2. Emergency purchases pursuant to section 103 (4) of the General Municipal Law. Due to the nature of this exception these goods or services must be purchased immediately and a delay in order to seek alternative proposals may threaten life, health, safety or welfare of the residents. This section does not preclude solicitation of alternate proposals if time permits. 3.2.3. Purchases of surplus and second-hand goods from any source. 3.2.4. Sole-source items. All procurements made under one of the above listed circumstances require written documentation of the reasoning and information used. 3.3. The unintentional failure to comply with the provisions of this policy shall not be grounds to void action taken or give cause for action against the Town or any officers or employees thereof. 3.4. This policy shall be reviewed annually by the Town Board. The adopted policy is to be distributed to anyone making purchases on behalf of the Town.