HomeMy WebLinkAboutProcurement Policy DRAFT.pdf1 Procurement Policy and Procedures
Village of Cayuga Heights
Procurement Policy and Procedures
DRAFT
WHEREAS, General Municipal Law §104-b requires the governing body of every
municipality to adopt a procurement policy for all goods and services which are not required
by law to be publicly bid, and
WHEREAS, comments have been solicited from all officials and department heads in the
Village of Cayuga Heights,
THEREFORE BE IT RESOLVED: that the Village of Cayuga Heights does hereby adopt the
following Procurement Policy and Procedures which is intended to apply to all goods and
services which are not required by law to be publicly bid.
Purpose
Goods and services that are not required by law to be procured pursuant to competitive
bidding must be procured in a manner 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, the
Village of Cayuga Heights Board of Trustees has adopted an internal policy and procedures
governing all procurements of goods and services which are not required to be made pursuant
to the competitive bidding requirements of General Municipal Law, §103 or of any other
general, special, or local law.
All transactions shall be in accordance with the Village of Cayuga Heights’ Code of Ethics as
may be amended from time to time.
Procedures for Determining Whether Procurements are Subject to Bidding
The procedures for determining whether a procurement of goods or services is subject to
competitive bidding and documenting the basis for any determination that competitive bidding
is not required by law is as follows:
Procedure
Every purchase to be made must be analyzed to determine whether it is a purchase
contract or a public works contract. Once that determination is made, a good faith effort
will be made to determine whether it is known or can reasonably be expected that the
aggregate amount to be spent on the item of supply or service exceeds the monetary
threshold of competitive bidding taking into account past purchases and the aggregate
amount to be spent in a fiscal year. Monetary thresholds may not be avoided by
artificially splitting or breaking up contracts into lesser agreements, or entering into
a series of agreements for sums below the dollar thresholds.
Procurements Subject to Bidding
Specification Document
The specification document sets forth the standard and requirements that
2 Procurement Policy and Procedures
competitors must observe. The specification should indicate the basis on which the
bids and offers will be evaluated and the award made.
Awarding Contracts:
When competitive bidding is required, the award of the contract is generally made
to the lowest priced responsible bidder which has complied with the specifications.
The Village may elect to award a contract on the basis of “best value” instead of to
the lowest responsible bidder. “Best value” is defined for this purpose as a basis for
awarding contracts to the offeror which optimizes quality, cost and efficiency,
among responsive and responsible offerors. The use of best value for awarding
purchase contracts must be authorized by adoption of a local law.
Statutory Exceptions to Quotation/Proposal Requirements of This Policy and Procedures
The following items are not subject to competitive bidding pursuant to General Municipal
Law §103:
1. Purchase contracts under $20,000 and public works contracts under $35,000;
2. Emergency purchases: pursuant to §103(4) of General Municipal Law which sets
forth an exception to bidding requirements for emergency situations and provides as
follows: "Notwithstanding the provisions of subdivision one of this section, in the case
of a public emergency 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 or district therein, require immediate
action which cannot await competitive bidding, contracts for public work or the
purchase of supplies, material or equipment may be let by the political subdivision.”
Due to the nature of this exception, these goods or services must be purchased
immediately and a delay in order to seek alternate proposals may threaten the life,
health, safety or welfare of Village residents. This section does not preclude
alternate proposals if time permits.
3. Certain municipal hospital purchases;
4. Preferred source goods purchased from approved, qualified, nonprofit agencies for
the blind or severely handicapped, and certain approved qualified veterans’
workshops pursuant to State Finance Law §162(4);
5. Preferred source goods required to be purchased from the Correctional Industries
Program of the Department of Corrections and Community Supervisions (Corcraft)
pursuant to Correction Law §186;
6. Purchases under State contracts pursuant to General Municipal Law §104 and
Service contracts entered into through the New York State Office of General
Services “piggybacking” on certain other government contracts in accordance with the
prerequisites in GML, §103 [16]. In these instances, the State has already
3 Procurement Policy and Procedures
investigated and secured the lowest possible price for the municipality.
7. Purchases under county contracts and certain federal General Serv ice
Administration contracts pursuant to General Municipal Law §103(3);
8. 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 Board of Trustees
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 or architect engaged to prepare plans, maps and estimates;
securing insurance coverage and/or services of an insurance broker; services of a
certified public accountant; investment management services; printing services
involving extensive writing, editing or art work; management of municipally owned
property; and computer software or programming services for customized programs,
or services involved in substantial modification and customizing of pre-packaged
software;
9. Sole Source - Competitive bidding is not required under section 103 of the General
Municipal Law in those limited situations where there is only one possible source from
which to procure goods and services required in the public interest. Appropriate
documentation is required to show that a sole source condition existed.
Documentation
The decision that a purchase is not subject to competitive bidding will be documented in
writing by the head of the department l making the purchase. This documentation may
include written or verbal quotes (telephone logs) from vendors, a memo from the
purchaser indicating how the decision was arrived at, a copy of the contract indicating the
source which makes the item or service exempt , a memo from the purchaser detailing the
circumstances which led to an emergency purchase, or any other written documentation
that is appropriate. Alternative proposals or quotations for goods and services shall be
secured by use of either written requests for proposals, written quotations, verbal quotations
or any other method of procurement that furthers the purposes of the General Municipal Law
§104-b. Documentation is required for each action taken in connection with procurement.
4 Procurement Policy and Procedures
Methods of Competition to be used for Non-Bid Procurements
Alternative proposals or quotations should be obtained by use of written requests for
proposals (RFPs), written quotations, verbal quotations or any other method that furthers
the purposes of the law. This method of purchase assures the prudent and economical
use of public moneys in the best interest of the taxpayers and facilitates the acquisition of
goods and services of maximum quality at the lowest possible cost.
Awards to Other than the Lowest Responsible Dollar Offeror
Documentation and an explanation are required whenever a contract is awarded to other
than the lowest responsible offeror. This documentation will include an explanation of
how the award will achieve savings or how the offeror was not responsible. A
determination that the offeror is not responsible shall be made by the purchaser and may
not be challenged under any circumstances. ·
Whenever any contract is awarded to other than the lowest responsible dollar offeror, the
reasons that such an award furthers the purpose of General Municipal Law, section 104-b,
as set forth herein above, shall be documented as follows:
Estimated Amount of Purchase Contract Method
$500 - $4,999 two (2) verbal quotes
$5,000 - $19,999 two (2) written/fax quotes or written RFPs
Estimated Amount of Public Works Contract Method
$500 - $2,999 two (2) verbal quotes
$3,000 - $9,999 two (2) written/fax quotes
$10,000 - $34,999 two (2) written/fax quotes or written RFPs
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 proposals be a bar to the procurement.
Items Excepted from this Policy and Procedures by the Board of Trustees
Pursuant to General Municipal Law § 104-b(2)(g), the procurement policy may contain
circumstances when, or types of procurements 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 municipality. The Board sets forth the following circumstances when,
or types of procurements for which, it may not be in the best interests of the Village of
Cayuga Heights taxpayers to solicit alternative proposals or quotations or document the
basis for not accepting the lowest proposal:
1. Purchases of surplus and second-hand goods from any source or goods purchased at
auction. If alternate proposals are required, the Village is precluded from purchasing
surplus and second-hand goods at auctions or through specific advertised sources
5 Procurement Policy and Procedures
where the best prices are usually obtained. It is also difficult to try to compare prices of
used goods and a lower price may indicate an older product.
2. Goods or services under $500. The time and documentation required to purchase
through this policy may be more costly than the item itself and would therefore not be
in the best interests of the taxpayer. In addition, it is not likely that such de minimis
contracts would be awarded based on favoritism.
3. Employee expenses such as conference expenses, mileage and other reimbursable
expenses in performance of day-to-day duties.
4. Reimbursement of petty cash funds.
5. Utility bills.
6. Service contracts for a fixed monthly or annual amount for which a formal contract
exists.
7. Interdepartmental charges.
8. Medical examinations.
9. Legal notices.
10. Postage
11. Other limited exceptions apply. These are outlined in various documents and are
available from the Clerk & Treasurer upon request.
Individual(s) Responsible for Purchasing
With the exception of purchases made under blanket purchase orders and/or confirming
orders (those requiring immediate action) only the persons designated as purchasing agent
may commit the local government for a purchase. The following individuals are designated
as purchasing agents. They may designate their assistant to perform this function in their
absence .
Names and titles of individuals responsible for purchasing and their respective titles;
Brent Cross Superintendent of Public Works
Asst. Superintendent of Public Works
Glenn Galbreath Village Justice
Joan Mangione Clerk & Treasurer
James Steinmetz Chief of Police
George Tamborelle Fire Department Superintendent
The listed information will be updated biennially or at the time of a staff change.
6 Procurement Policy and Procedures
General
1. Material, equipment, supplies and/or services to be purchased shall be of the quality and
in the quantity required to serve the function in a satisfactory manner, as determined by
the appropriate purchasing department head.
2. It is the responsibility of the requisitioner and the appropriate purchasing department
head to provide an adequate description of all items needed so that the procurement
may be reviewed and/or specifications prepared to procure the desired commodity
and/or service. As needed the requisitioner will assist the purchasing department head in
the preparation of specifications.
3. It is the responsibility of the purchasing department head to make alternative suggestions
to the requisitioner if, in the judgment of the purchasing department head, the
specifications would restrict competition or otherwise preclude the most economical
purchase of the required items. In case of disagreement as to the content of the
specifications the Board of Trustees, after reviewing all available data, should make the
final determination.
Requisition
The requisitioner will provide the Clerk & Treasurer with the following information on items to
be procured:
1. Description of item requested
2. Quantity required
3. Department and appropriation to be charged
4. Date
5. Signature of requisitioner and/or department head
Purchase Order
1. Each department head is responsible for the compliance with the purchasing
procedures adopted.
2. Only purchase order forms provided by the Clerk & Treasurer shall be used.
3. Purchasing information shall be provided as described above.
4. The purchase order will be prepared by the Clerk & Treasurer and based on the signed
requisition information.
5. All purchase orders will be approved by the purchasing department head and the Clerk
& Treasurer.
6. The Clerk & Treasurer will certify by signature on each purchase order that the moneys
are available and that the appropriation has been encumbered.
7. Multiple copy purchase orders shall be used. The original will be provided for the
vendor. One copy will be returned to the requisitioning department. A copy will be
7 Procurement Policy and Procedures
retained by the Clerk & Treasurer.
Confirming Orders
A verbal order, subject to subsequent confirmation by a written purchase order may be
given in cases where necessity for immediate action exists. The individual placing such
an order shall justify the need for this action when providing the requisition information. A
confirming order should be issued immediately after availability of funds is determined.
The order shall follow the same procedures as other orders but shall have priority so that
the vendor will receive the order without delay. The order shall be marked
"CONFIRMATION - DO NOT DUPLICATE."
Department heads are responsible for orders placed verbally.
Blanket Orders
Blanket purchase orders or open-end accounts may be issued to various vendors for the
purchase of items considered to be of immediate need or for the purpose of consolidated
purchases. The amount of the blanket purchase order shall be determined by the Clerk-
Treasurer. It shall be based on information available in the records covering previous
fiscal years and data obtained from the purchasing department head.
Blanket purchase orders shall not extend beyond the Village's fiscal year end. Billings
against blanket orders shall be made monthly. The department head should keep a record
of purchases made to insure that they do not exceed the amount allowed by the blanket
purchase order.
Blanket orders may be cancelled prior to the fiscal year end at any time by the Clerk-
Treasurer. Any encumbered, unexpended funds shall be returned to the original
appropriation. In some cases, it will not be practical to encumber blanket orders of a
broad nature.
Note that the above contract exceptions are valid only when the purchases are made from
the vendor holding the current State, state approved or county contract.
Notice to Vendors
Notice will be given to each new supplier explaining the purchasing format. Vendors
deviating from the purchasing procedures will be notified immediately and informed of
possible consequences. Such notice will include the statement "The Village of
Cayuga Heights will not be responsible for purchases made without prior authorization
from the designated purchasing department head except as otherwise stated herein."
The purchasing department head shall also notify the vendor of the Village's tax
status , and obtain the appropriate tax information from the vendor as is necessary to
comply with Internal Revenue Service reporting requirements.
Receipt of Goods
The requisitioning department shall notify the Village Office when goods are received. This
shall be done by providing a copy of the packing slip, which should be signed to indicate
8 Procurement Policy and Procedures
that the goods have been received and are in satisfactory condition.
Insufficient Appropriations
In the event that an appropriation balance is insufficient, and funds are not available in
the same department and type classification, the Clerk & Treasurer will notify the
department head. To request an increase in appropriation, the department head
should proceed as follows:
The request for a transfer or an increase in appropriations should be in writing and
directed to the Clerk & Treasurer.
An explanation as to why the purchase is necessary must be included in the
request.
The amount needed and the accounts involved must be indicated.
The Treasurer will present a summary of all transfer requests to the Village Board in
a regular or special meeting. After approval of the transfer he/she shall notify the
purchasing department head that the order may be processed.
When funds exist in a department in the same type classification the purchase order
may be issued prior to board approval of the transfer from the sub classification. For
example , a transfer may be presumed from account A8160.410 to A8160.420,
because the department (A8160) is identical and the type classification (400, contract
expenditure) is identical. Such requisitions will be encumbered on the appropriate
account and the transfers shall be made prior to the payment of the invoice.
Audit of Claims
Standard vouchers shall be prepared for payment of all items purchased under this
policy. The purchase order number should be included on the voucher. The
voucher shall be signed by the responsible department head in the space provided.
Vouchers received up to one week prior to a regularly scheduled Board of Trustees
meeting will be included on the Abstract of Audited Vouchers and submitted for
Board approval by the Clerk &Treasurer. Once such approval has been made the
invoices may be paid.
Input From Officers
Comments have been solicited from department heads and appointed officials therein
involved in the procurement process prior to the enactment of this policy and procedures,
and will be solicited from time to time hereafter.
Annual Review
The Board of Trustees shall annually review and, when needed, update this policy and
procedures.
The Village Clerk & Treasurer shall be responsible for conducting an annual evaluation
of the effectiveness of the procurement policy and procedures and an evaluation of the
control procedures established to ensure compliance with the procurement policy, and
shall be responsible for reporting back to the board.
9 Procurement Policy and Procedures
Unintentional Faiure to Comply
The unintentional failure to comply fully with the provisions of General Municipal Law,
§104-b shall not be grounds to void action taken or give rise to a cause of action against
the Village of Cayuga Heights or any officer or employee thereof.
Resolution
Adopted on ___________ __, 2015 by ____________ vote of the Board of Trustees of the
Village of Cayuga Heights.
Effective Date
This policy shall go into effect ___________ __, 2015 and will be reviewed annually.
10 Procurement Policy and Procedures