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HomeMy WebLinkAboutProcurement Policy and Procedures (2024) The Town of Danby, New York 1830 Danby Road, Ithaca, NY 14850 https://danby.ny.gov Town Board Joel Gagnon, Supervisor 607-277-4788| townboard@danby.ny.gov PROCUREMENT POLICY AND PROCEDURES Adopted November 18, 2024 Note: This policy replaces the Procurement Policy and Procedures originally adopted by Resolution 24 of 1993 (passed on April 12, 1993) and subsequently amended by Resolution 24 of 2004 (passed on January 12, 2004) Further Revisions as follows: Resolution 95 of 2010 (passed on August 2, 2010) Resolution 93 of 2022 (passed on April 5, 2022) Resolution 58 of 2023 (passed on January 18, 2023) Resolution 262 of 2024 to Adopt Revised Procurement Policy and Procedures as Written Below  Moved by Gagnon    Seconded by Hunter Vote:   Connors Yes   Hansen    Yes  Hunter Yes   Woodworth Yes   Gagnon Yes          Resolution 262 of 2024 passed on November 18, 2024   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 262 of 2024. 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. 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 Town of Danby, New York Res 262 of 2024 - Procurement Policy Replaced Res 58 of 2023 2 | Page 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 $4,001 - 19,999 3 Written/fax/email quotations and prior approval from Town Board Exception: Highway Superintendent is authorized to purchase tools, equipment (other than motorized equipment), small implements, tires and tubes, etc. in the amount not to exceed $4,000 at any given time without prior approval of the Town Board. (Res 58 of 2023) Town of Danby, New York Res 262 of 2024 - Procurement Policy Replaced Res 58 of 2023 3 | Page 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 $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; management of Town of Danby, New York Res 262 of 2024 - Procurement Policy Replaced Res 58 of 2023 4 | Page 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. Contracting with minority and women business enterprises and labor surplus area firms. 3.3.1. In an effort to affirmatively further procurement and contracting opportunities for Minority and Women-owned business enterprises (M/WBE) and labor surplus area (LSA) businesses, the Town of Danby will solicit M/WBE and LSA firms as part of its procurement process. When appropriate, the Town will solicit M/WBE and LSA firms through advertisements in statewide minority publications; direct outreach by letter, email, or phone; and by posting opportunities in the NYS Contract Reporter. 3.3.2 The Town will access certified M/WBEs from the Empire State Development’s Division of Minority and Women Development’s list of certified M/WBEs performing work in categories of labor or contracting that are or may be pertinent to the project bid or being bid. Information on LSAs will be accessed through the U.S. Department of Labor’s Employment and Training Administration list of LSAs for New York State. 3.3.3. The Town will also encourage and assist contractors that are awarded large bids to provide opportunities to M/WBEs and LSAs and will provide names and contact information of such firms upon request. 3.4. Section 3 of the Housing and Urban Development Act of 1968 3.4.1. In accordance with requirements under Section 3 of the Housing and Urban Development Act of 1968, as amended, the Town of Danby will ensure that, employment and other economic opportunities generated using certain financing from the U.S. Dept of Housing and Urban Development (HUD), which includes NYS CDBG funds, shall, to the greatest extent feasible, be Town of Danby, New York Res 262 of 2024 - Procurement Policy Replaced Res 58 of 2023 5 | Page directed to low-and-very-low income persons, particularly those who are recipients of government assistance for housing, and to business concerns that provide economic opportunities. 3.4.2 The Town will include Section 3 language in advertisements for bids and other opportunities that are covered by Section 3 and will access HUD’s list of Section 3 businesses, when appropriate, for direct outreach. The Town will include a Section 3 clause in construction contracts in excess of $100,000 or more for CDBG-funded projects that are subject to Section 3 requirements. 3.5. 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. 3.6. 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.