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HomeMy WebLinkAboutProcurement Policy TOWN OF ITHACA PROCUREMENT POLICY PURPOSE Section 104-b of the General Municipal Law (GML) requires every town to adopt internal policies and procedures governing all procurement of goods and services not subject to the bidding requirements of GML §103 or any other law. Goods and services that are not required by law to be procured pursuant to competitive bidding must be procured in a manner so as to assure the prudent and economical use of public moneys in the best interest of the taxpayers; to facilitate the acquisition of goods and services of maximum quality at the lowest possible cost under the circumstances; and to guard against favoritism, improvidence, extravagance, fraud and corruption. To further these objectives, this Procurement Policy governs all procurements of goods and services which are not required to be made pursuant to the competitive bidding requirements of GML §103 or of any other general, special, or local law. RESPONSIBILITY It is the responsibility of the Department Head to oversee and ensure that proper procedures are followed in the solicitation and purchase of goods and services. Each Department Head who supervises individuals who are authorized in Guideline 1 below to order or purchase goods or services is ultimately responsible for those purchases and must have departmental procedures in place to ensure said adherence. POLICIES Guideline 1: Every prospective purchase of goods or services shall be evaluated to determine the applicability of GML §103. Every Town officer, department head, deputy highway superintendent, water & sewer supervisor and parks supervisor (hereinafter Purchaser) shall have purchasing authority and shall estimate the cumulative amount of the good or service needed within the twelve month period commencing on the date of purchase to determine applicability. That estimate shall include the canvass of other Town departments and past history to determine the likely value of the good or service to be procured over the twelve-month period. The information gathered and conclusions reached shall be documented and kept with the file or other documentation supporting the purchase activity. Guideline 2: Except as otherwise permitted by law, all purchases of goods or services that will exceed $20,000 in a fiscal year shall be procured through competitive bidding or competitive offering pursuant to GML §103. Except as otherwise permitted by law, all public works contracts with an estimated value exceeding $35,000 shall be procured through competitive bidding pursuant to GML §103. Guideline 3: Except for purchases approved or authorized by the Town Board,purchases exceeding $5,000 require the approval of the Town Supervisor. Guideline 4: Except as provided in Guideline 7 below,the following shall apply. • All purchases of goods and services with an estimated value of: o At least$5,000 but not more than $20,000 require written quotes, or responses to a Town Request for Proposals (UP), from not less than three(3)vendors. o At least$1,000 but not more than $4,999 require telephone quotes from not less than two (2)vendors. Adopted August 11,2014 pg 1 o Less than $1,000 are left to the discretion of the purchaser after consultation with their Department Head. • All public works contracts with an estimated value of: o At least$5,000 but not more than $35,000 require written quotes, or responses to a Town RFP, from not less than three (3)vendors. o At least$1,000 but not more than $4,999 require telephone quotes from not less than two (2)vendors. o Less than $1,000 are left to the discretion of the purchaser after consultation with their Department Head. Any written quote or RFP response shall describe the desired goods, quantity and the particulars of delivery. The purchaser shall compile a tabulation of all vendors from whom written/fax quotes have been requested and subsequent responses, and all vendors who submitted responses to Town RFPs. Where telephone quotes are authorized and sought, the Purchaser shall maintain a record of all requests and responses received. All information gathered in complying with the procedures of this Guideline shall be preserved and filed in the Department with the documentation supporting the subsequent purchase or public works contract, according to MU1 Schedule. Guideline 5: The lowest responsible proposal or quote shall be awarded the purchase or public works contract unless the Purchaser prepares a written justification providing reasons why it is in the best interest of the Town and its taxpayers to make an award to other than the lowest responsible dollar offeror. If an entity providing a proposal or quote is not deemed responsive and/or responsible, facts supporting the judgment shall be documented and filed with the record supporting the procurement. Guideline 6: 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 shall document the attempt made at obtaining the proposals and consult with their Department Head for additional vendors or approval for procurement without the required number of responses. Guideline'7: Except when directed by the Town Board, solicitation of a minimum number of proposals or quotations shall not be required under the following circumstances: a. Acquisition of professional services; b. Public emergencies - GML §103(4) defines a public emergency as arising out of an accident or other unforeseen occurrence or condition whereby circumstances affecting public buildings,public property or the life,health, safety or property of the inhabitants of a political subdivision or district therein, require immediate action which cannot await competitive bidding or competitive offering; c. Sole source situations; d. Job site purchases; e. Goods or services purchased from agencies for the blind or severely disabled persons pursuant to State Finance Law §162; Adopted August 11,2014 pg 2 f. Goods or services purchased from New York State correctional facilities pursuant to Correction Law §184, Correction Law §186, and State Finance Law §162; g. Goods or services purchased from programs serving mentally ill persons pursuant to State Finance Law §162; h. Goods or services purchased from veterans' workshops pursuant to State Finance Law §162; i. Goods or services purchased from another governmental agency pursuant to GML §103(6) [second-hand supplies,materials or equipment]; j. Goods or services purchased under State, County, or Federal contract pursuant to GML §103(3) or GML §104; k. Goods or services purchased under another governmental entity's contract pursuant to GML §103(16); 1. Goods or services purchased under a cooperative purchasing contract pursuant to GML §119- 0. Guideline 8: In some instances, a vendor may require a Purchase Order Number. Purchaser must contact Accounting for the next numerical PO#. Guideline 9: This policy shall be reviewed annually by the Town Board at its organizational meeting or as soon thereafter as is reasonably practicable. Pursuant to GML §104-b(3), comments have been solicited from officers of the Town involved in the procurement process prior to the enactment of this Procurement Policy, and will be solicited from time to time hereafter. Pursuant to GML §104-b(5), the unintentional failure to comply fully with the provisions of GML § 104-b shall not be grounds to void action taken or give rise to a cause of action against the Town or any officer or employee thereof. PURCHASE ORDER PROCEDURE A. REQUISITIONS 1. A requisition is to be completed, in duplicate, for all capital purchases. If several items are purchased at one time from the same vendor,then only one requisition needs to be completed. 2. The requisition should be complete including: * date and requisition number; * the name and address of the vendor; * details of purchase including cost or estimated cost, description and quantity; * account number(s)to be charged; * any special instructions such as shipping instructions, etc.; * signature of requisitioner. 3. The completed original of the requisition is to be forwarded to the department head for approval and then the department head forwards it to accounting. Accounting will verify if funds are available. If funds are not available in the account specified then the department head is notified by accounting. The department head, where applicable, would notify the originator. The accounting department may, where appropriate, suggest other sources of Adopted August 11,2014 pg 3 funds but it is the responsibility of the department head to specify another appropriate account, under his or her jurisdiction, to be charged or a transfer of funds can be requested, subject to approval of the Town Board. The department retains the duplicate copy of the requisition for its records. B. PURCHASE ORDER 1. A purchase order is to be completed for all capital purchases, when required by a vendor for his records,or when deemed to be in the best interest of the Town. 2. Using department will complete the purchase order with information obtained from the requisition. Copies of the purchase order will be distributed as follows: * Original Copy-to vendor. * Second Copy-retained in accounting. * Third Copy-retained in using department. * Fourth Copy - receiving copy sent to department to be initialed and returned to accounting(with packing slips attached)when items have been received. 3. All purchase orders will be approved and signed by the Purchasing Agent designated by the Town Board. C. OTHER PURCHASING PROCEDURES 1. Job Site Purchases: If it is necessary to make an immediate purchase of materials or equipment for a construction project in progress, such purchase shall be exempt from routine purchasing procedures in accordance with Guideline 7 above. The department is to contact accounting with an estimated cost of the item(s), description of the item(s) and account number(s)to be charged. Accounting will verify that funds are available for this purchase. 2. Emergency Purchases: Purchases that need to be made on weekends, holidays or nights are exempt from routine purchasing procedures. Purchases made to address a public emergency as described in Guideline 7 above are also exempt from routine purchasing procedures. 3. Other Expenditures not requiring Requisitions/Purchase Orders: a. Professional Services rendered such as attorney fees and consultant fees; b. Petty Cash expenditures; c. Employee Expenses for Conferences&Training; d. Utility Bills(Electricity,Natural Gas, Telephone, Cellphone, Water, Sewer); e. Service Contracts for Town equipment; f. Automotive Petroleum Products(Gasoline, Diesel Fuel,Lubricating Oils); g. Parts and Services to repair Town vehicles and equipment; h. Road Salt and other Road De-Icing Supplies; i. Sand, Gravel, Stone and other aggregates; j. Legal Notices; k. Postage. 4. Petty Cash Expenditures: Purchases amounting to $50.00 and under should be made from petty cash funds unless purchasing from a vendor that the Town maintains an account with. Adopted August 11,2014 pg 4 5. Best Value Procurement Standard: General Municipal Law §103(1) allows the Town to authorize, by local law, the award of certain purchase contracts (including contracts for services) subject to competitive bidding under General Municipal Law §103 on the basis of "best value"as defined in §163 of the New York State Finance Law. The"best value" option may be used, for example,if it is more cost efficient over time to award the good or service to other than the lowest responsible bidder or offerer if factors such as lower cost of maintenance, durability, higher quality and longer product life can be documented. All awards based on best value shall require Town Board approval. The Town Board authorized the use of"best value"awards in Local Law No. 3 of the Year 2013,adopted 03-11-2013. Adopted August 11,2014 pg 5 GREEN PROCUREMENT POLICY Addendum to the Town of Ithaca Procurement Policy and Green Fleet Policy (revised January 2021) FINDINGS Green Procurement, also known as Environmentally Preferable Purchasing, is an effort to purchase products and services that have a reduced negative impact or increased positive impact on the environment and human health compared to traditional products. Green products or services may be recycled, consume fewer natural resources, last longer or include or produce less toxic substances or solid waste. Considerations for green procurement may also include the environmental cost of raw materials, manufacturing, packaging, transporting, distribution, storing, handling, using, maintaining and disposing of the product. When comparing alternative products, lifetime maintenance costs, operational costs, and disposal costs should be considered as well as initial costs of acquisition. Reducing the total cost of ownership is a core objective of green procurement by reducing or eliminating the use and generation of toxic substances,pollution or waste. The Town makes significant purchases of goods and services and can use this buying power to influence markets to create sustainable products and services and support green jobs. The Town can also take a leadership role in reducing waste generated in conjunction with work practices by purchasing cost-effective, recycled products for use in the delivery of Town services and by reusing and recycling materials and products when feasible and cost-effective. Environmentally Preferable Purchasing is an important component of the Town of Ithaca's procurement policy and shall guide Town efforts to meet the following goals: • Minimizing health risks to Town residents and staff. • Minimizing the Town's contribution to global climate change. • Improving air quality. • Protecting the quality of ground and surface waters. • Minimizing the Town's consumption of resources. Further, Environmentally Preferable Purchasing guidelines are adopted by the Town in order to: • Purchase products that include recycled content in order to support strong recycling markets. Adopted August 11,2014 pg 6 • Institute practices that reduce waste by increasing product efficiency and effectiveness, use products that are durable and long-lasting, and reduce materials that are land-filled. • Purchase products and institute practices that conserve energy and water, use agricultural fibers and residues, reduce greenhouse gas emissions, and use recycled wood and wood from sustainably harvested forests. • Purchase energy from renewable or green sources. • Increase the use and availability of environmentally preferable products, services and distribution systems. • Support emerging and established manufacturers and vendors that reduce environmental and human health impacts in their services and production and distribution systems. • Create a model for successfully purchasing environmentally preferable products and services that encourages other buyers and consumers in our community to adopt similar goals. POLICIES Subject to New York State law and purchasing requirements and supplementing the Town of Ithaca Procurement Policy, all purchases by the Town of Ithaca of products and services shall be subject to and comply with this Green Procurement Policy. To the extent possible, Town departments and staff shall engage in environmentally preferable purchasing through NYS Office of Government Services contracts for products and services (NYS General Municipal Law §104). When competitive bidding is required by state law (NYS General Municipal Law §103), bidding documents shall be drafted to encourage environmentally preferable purchasing by incorporating bidding specifications which conform to this Green Procurement Policy. When product or service purchases are exempt from state statutory competitive bidding requirements (NYS General Municipal Law §104-b), this Green Procurement Policy shall apply. A. SOURCE REDUCTION 1. The Town of Ithaca shall institute practices that reduce waste and result in the purchase of fewer products whenever practicable and cost-effective, but without reducing safety or workplace quality. Town departments shall purchase remanufactured products whenever practicable, but without reducing safety, quality or effectiveness. Products that are durable, long lasting, reusable, refillable, recyclable, or otherwise create less waste shall be selected whenever practicable. 2. Vendors shall be required to minimize packaging to the greatest extent practicable. Packaging that is reusable, recyclable or compostable shall be selected when suitable Adopted August 11,2014 pg 7 uses and programs exist. The Town shall not purchase any polystyrene foam packaging. 3. Vendors shall be required whenever possible to take back and reuse pallets and packaging materials. Suppliers of electronic equipment shall be required to take back equipment for reuse or environmentally safe recycling when the Town discards or replaces such equipment, unless the Town deems it worthwhile to send the equipment to a non-profit organization for reuse. 4. Documents shall be printed and copied on both sides whenever practicable to reduce the use and purchase of paper. B. RECYCLED CONTENT PRODUCTS 1. It is the policy of the Town to purchase and use recycled products to the extent that such use does not negatively impact health, safety, or operational efficiency. 2. Town departments and staff shall examine their purchasing specifications and, where feasible, restructure them to include the use of products which contain post-consumer recycled content, are reusable, or designed to be easily recyclable. 3. Only recycled paper shall be purchased and used in copy machines and shall also be used for printing purposes by Town departments and staff. Copiers and printers purchased shall be compatible with the use of recycled content and remanufactured products. 4. The Town will favorably consider the selection of other recycled content and renewable materials, products and supplies over their non-recycled content and non- renewable alternatives in cases where availability, fitness, health, operational efficiency, quality, safety, and price of the recycled product is otherwise equal to, or better than the non-recycled content and/or non-renewable alternative. C. TOXICS REDUCTION AND POLLUTION PREVENTION 1. Town departments are encouraged to purchase energy-efficient products and to consider "less toxic alternatives" when purchasing products such as cleaning products, pesticides and herbicides. To the maximum extent practicable, all cleaning or disinfecting products (i.e. for janitorial or automotive use) shall (i) be products delineated on the NYS OGS Green Cleaning Product List or (ii) meet NYS OGS guidelines and specifications for green cleaning products (collectively "Green Cleaning Products"). 2. When maintaining buildings and landscapes, the Town shall manage pest problems through prevention and physical, mechanical and biological controls and use least toxic chemical pesticide products only after safer approaches or products have been Adopted August 11,2014 pg 8 determined to be ineffective. The Town shall adopt and implement an organic pest management policy and practices, or use chemical controls only as a last resort. 3. When maintaining buildings, the Town shall use products with the lowest amount of volatile organic compounds (VOCs), highest recycled content, and low or no formaldehyde when purchasing materials such as paint, carpeting, flooring, adhesives, furniture and casework. 4. The Town shall purchase products and equipment with no lead, cadmium or mercury whenever practicable. For products that must contain lead or mercury because no suitable alternative exists, preference shall be given to those products with the lowest quantities of these metals and to vendors with established lead, cadmium and mercury recovery programs. 5. The purchase of pentachlorophenol, arsenic and creosote treated wood shall be avoided whenever practicable D. ENERGY AND WATER SAVINGS 1. New and replacement equipment for lighting, heating, ventilation, refrigeration and air conditioning systems, water consuming fixtures and process equipment and all such components shall meet or exceed Federal Energy Management Program (FEMP) recommended levels, whenever practicable. 2. All products purchased by the Town and for which the U.S. EPA Energy Star certification is available shall meet Energy Star certification. When Energy Star labels are not available,products shall meet or exceed the FEMP recommended levels. 3. When energy is purchased, renewable or green sources are preferred. These include solar power or photovoltaics, wind power, geothermal, and hydroelectric energy sources and do not include fossil fuels (coal, oil or natural gas). 4. Demand water heaters shall be purchased whenever practicable. 5. Energy Star and power-saving features for copiers, computers, monitors, printers and other office equipment shall be enabled during the initial installation and shall remain enabled unless these features conflict with the manufacturer's recommended operation and maintenance of the equipment. E. LANDSCAPING 1. All landscape renovations, construction and maintenance by the Town, including workers and contractors providing landscaping services for the Town, shall employ sustainable landscape management techniques for design, construction and maintenance whenever possible, including, but not limited to, integrated pest Adopted August 11,2014 pg 9 management, grasscycling, drip irrigation, composting, and procurement and use of mulch and compost that give preference to those produced from regionally generated plant debris and/or food waste programs. 2. Plants should be selected to minimize waste by choosing species for purchase that are appropriate to the microclimate, species that can grow to their natural size in the space allotted them, and perennials rather than annuals for color. Native and drought- tolerant plants that require no or minimal watering once established are preferred. 3. Hardscapes and landscape structures constructed of recycled content materials are encouraged. The Town shall limit the amount of impervious surfaces in the landscape, wherever practicable. Permeable substitutes, such as permeable asphalt or pavers, are encouraged for walkways,patios and driveways. IMPLEMENTATION Nothing contained in this policy shall be construed as requiring any Town department or staff either (i) to procure products that do not perform adequately for their intended use or are not available at a reasonable price in a reasonable period of time, or (ii) to exclude adequate competition for products or services. Although not the lowest proposal or price quoted by suppliers, Town departments and staff may nonetheless purchase a product that adheres to the Green Procurement Policy, if there is "prudent and economical use of public moneys in the best interests" of Town taxpayers (GML 104-b (1)). Such determination of"best interests" may include full consideration and comparison of product life cycle costs (including product maintenance, operation and disposal costs), as described more fully in Point 2 above. A further consideration may include direct and identifiable benefits to Town taxpayers, other than product cost. For example, the cost of permeable pavers might exceed the cost of asphalt paving, yet the use of permeable pavers could mitigate storm water run-off and reduce the potential for flooding and infrastructure damage in low-lying areas. Justification for a determination of "best interests" shall be fully documented by Town departments and staff and submitted to the Town Finance Officer prior to the purchase of products or services. Implementation of this Green Procurement Policy may be phased based on available resources and Town priorities. Adopted August 11,2014 pg 10