[HISTORY: Adopted by the Town Board of the Town of Smithtown 1-3-2017.[1] Amendments noted where applicable.]
GENERAL REFERENCES
Best value bid awards — See Ch. 57A.
[1]
Editor's Note: This resolution superseded the former Procurement
Policy adopted 1-5-2016.
The Procurement Policy and Procedures is developed by the Purchasing
Department and its acceptance is subject to the approval of the Town
Board. It has been crafted so as to:
All purchases for commodities, services and public works are
subject to federal, state, county and Town laws that regulate municipal
purchasing; the fundamentals for most of these regulations are as
follows:
A.
New York State General Municipal Law §§ 103 and 104-b.
(1)
Contained in New York State General Municipal Law Article 5A, §§ 100
through 109-b. In particular, New York State General Municipal Law
§ 103 relates to all governmental purchases of commodities,
services and technologies that are subject to the laws of competitive
procurement and are applicable for the following monetary thresholds:
commodity expenditures in excess of $20,000 and contracts for public
work involving expenditures in excess of $35,000. When using competitive
bidding, contracts are awarded to the "lowest responsible bidder"
after public advertisement for sealed bids.
(2)
In January of 2012, changes were made to New York State General Municipal
Law § 103(1) which allow 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
offeror if factors such as lower cost of maintenance, durability,
higher quality and longer product life can be documented.[1]
(a)
This amendment provided that purchase contracts (including contracts
for service work, but excluding any purchase contracts necessary for
the completion of a public works contract pursuant to Article 8 of
the Labor Law) shall be awarded on the basis of best value rather
than to the lowest responsible bidder. Sections 3 through 11 amend
other subdivisions of § 103 and § 103-e of the
General Municipal Law to conform these subdivisions to allow for the
awarding of purchase contracts (including contracts for service work)
on the basis of best value.
(b)
Based on these changes to GML, the Town of Smithtown's
Procurement Policy and Procedures will now allow for the use of "best
value" as a method of awarding contracts in a manner that is in the
best interest of the Town.
(c)
Goods and services procured and awarded on the basis of "best
value" are those that are proven to optimize quality, cost and efficiency,
among responsive and responsible bidders/offerors. The determination
shall be based on an objective analysis of clearly described and documented
criteria as they apply to the rating of bids or offers. Where possible,
such determination shall also be based upon and include a quantifiable
analysis of the same. The criteria may include, but shall not be limited
to, any or all of the following:
(d)
Whenever any contract is awarded on the basis of best value
instead of lowest responsible bidder, the basis for determining best
value shall be thoroughly and accurately documented.
(3)
Further amendments to General Municipal Law § 103 through
the addition of a new Subdivision (16) allow political subdivisions
"to make purchases of apparatus, materials, equipment or supplies,
or to contract for services related to the installation, maintenance
or repair of apparatus, materials, equipment, and supplies, . . .
as may be required by such county, political subdivision or district
therein through the use of a contract let by the United States of
America or any agency thereof, any state or any other county or political
subdivision or district therein..."
(a)
It is important to note that the use of such contracts ("piggybacking")
is conditioned on the contract that is to be utilized having been
"let in a manner that constitutes competitive bidding consistent with
state law, and made available for use by other governmental entities."
(4)
Local Law No. 1-2015, passed April 23, 2015, allowed for the Town
of Smithtown Purchasing Department to utilize "best value" procurement
and "piggyback" on all contracts that were let in compliance with
NYS GML statutes.
B.
Federal regulations.
(1)
The GSA Cooperative Purchasing Program, authorized by statute, allows
state and local governments to purchase a variety of commercial supplies
(products) and services under specific GSA Schedule contracts to save
time, money and meet their everyday needs and missions. The Cooperative
Purchasing Program gives state and local government entities access
to:
(2)
Provide commodities/services for law enforcement and safety and security
purposing.
(3)
In addition, there are hundreds of detailed rules and regulations
regarding the process/manner of the use of federal grant funds specific
to issuing agencies and intended usages.
C.
Suffolk and other counties. Suffolk County and other county contracts
are acceptable, as permissible.
D.
Town of Smithtown. Upon adoption of this Procurement Policy and Procedures,
the Town Board authorizes 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
Town law, in addition to requiring compliance with all applicable
federal, state, and county statutes, also has laws that have been
enacted solely by the Town. They are:
(1)
Apprenticeship Training Program (ATP).
(a)
The Town of Smithtown requires any contractor or subcontractor,
prior to entering into a construction contract with the Town, to have
apprenticeship agreements, appropriate for the type and scope of work
to be performed, which have been registered with and approved by the
New York Commissioner of Labor in accordance with Article 23 of the
New York Labor Law, anything in § 5103 of the New York General
Municipal Law to the contrary notwithstanding.
(b)
If the amount bid for a construction contract awarded by the
Town, or the aggregate value of the individual construction contracts
on multi-prime contracts that comprise a project, is in excess of
$500,000, the contract(s) will be subject to Town Board Resolution
No. 2009-226, which requires that firms entering into contracts with
the Town for such work participate in registered and approved apprenticeship
training programs. The contractor and his subcontractors shall provide
evidence of participation in approved apprenticeship training programs
that are appropriate for the type and scope of work to be performed
under the agreement. In addition to this policy, any contract to be
awarded by the Town shall be subject to the requirements and conditions
set forth in the bid documents.
(2)
Bid submission requirement.
(a)
To maintain the integrity of the bid process, the Town reserves
the right to reject any bids that are deemed incomplete, conditional,
obscure, or which contain irregularities of any kind, including unbalanced
bids. An unbalanced bid is one in which the amount bid for one or
more separate items is substantially out of line with current market
prices for the materials and/or work covered thereby.
(b)
"Tie bids" are low, responsive bids from responsible bidders
that are identical in price and which meet all the requirements and
criteria set forth in the Town's bid solicitation. As applicable,
a "tie bid" will be awarded by applying the following tie-breaking
criteria, in the order as stated:
[1]
To a vendor offering the highest prompt payment discount.
[2]
To a vendor with a principal place of business listed on the
bid document that is within the Township of Smithtown.
[3]
To a vendor with a principal place of business listed on the
bid document that is within the County of Suffolk, New York.
[4]
To a vendor with a principal place of business listed on the
bid document that is within the State of New York.
[5]
The drawing of lots, if all prior criteria are the same for
included vendors.
[a]
In the event that lots must be drawn to determine the award,
all tied bidders will be given the opportunity to witness the drawing.
[b]
Bidders will be given a minimum of five business days'
advanced written notice as to the place and time the drawing will
be conducted.
[c]
The drawing will be conducted by the Purchasing Department and
witnessed by at least one representative from the Town of Smithtown's
Town Clerk's office.
(c)
If, during the term of the contract, the contractor and/or his/her
subcontractor is not in compliance with these regulations, the Town
may suspend the work and/or take whatever action is deemed appropriate
as defined in the bid terms and conditions.
(3)
Determination of need for formal bid or quotation.
(a)
Monetary thresholds.
[1]
In accordance with General Municipal Law § 103, competitive
bidding is required where it is reasonably anticipated that the aggregate
amount of the goods or services to be contracted for within one fiscal
year will exceed the monetary thresholds under General Municipal Law
§ 103 ($20,000 for the purchase of commodities, or $35,000
for public works or non-professional services as defined below).
[2]
No anticipated contract or purchase shall be divided or structured
with the intent of avoiding the requirements set forth in the Town
Procurement Policy and Procedures, and statutory law.
[3]
Prior to issuance of a purchase order pursuant to acceptance
of a competitive bid under an approved Town of Smithtown contract
(posted on the "R" drive), the Purchasing Department must possess
copies of documentation of required insurance and contract security
or performance bond, as applicable. Purchases should be made from
vendors with existing Town of Smithtown contracts, if a contract exists.
In these instances, blanket purchase orders are encouraged and should
be used to the extent permissible and practical.
[4]
When submitting a purchase order for payment on any purchase
order originally issued in an amount exceeding $20,000, the originating
department must submit a Contractor Performance Report (CPR) by scanning
it into KVS, before submitting the request to the Comptroller's
office. Any questions regarding this matter should be directed to
the Purchasing Department.
[5]
Any purchases exceeding $750 for non-Public Works projects (including non-professional services) or $1,499.99 for public works projects and professional services must adhere to the following applicable procedures (under §§ 57-4 and 57-5) and have a Town-approved purchase order. Exceptions to this rule requiring a purchase order are expenditures for certain bills, including, but not limited to, insurance, performance bond reimbursements, snow contractors, tax bills, permit refunds, travel and mileage reimbursements, release of escrow, Medicare reimbursements, inter-governmental and intra-governmental purchases, petty cash reimbursements and invoices from outside counsel. All of these may be processed using vouchers. For convenience, blanket purchase orders should be used for gas, fuel oil, electric, phones, water, office supplies, equipment leases, dumpster fees, consultants, instructors and similar expenditures that are likely to result in an annual aggregate vendor expenditure exceeding $1,499.99.
[6]
No purchase order or contract shall be issued for an amount
that exceeds the competitive bidding thresholds stated above prior
to undertaking the formal bid process, except for those limited circumstances
set forth under this policy and applicable law.
(b)
Annual aggregate amount.
[1]
Every noncontract purchase that will require a purchase order
must be initially reviewed by the Purchasing Department to determine
whether it falls into the category of a commodities purchase or a
public works procurement request. Once that determination is reached,
a good faith effort must be extended to determine whether it is known
or can reasonably be expected that the annual aggregate amount to
be spent on the commodity or service exceeds the competitive bidding
thresholds.
[2]
Annual aggregate purchases shall be evaluated to determine cumulative
dollar amounts expected within 12 months or a given expected contract
term. As necessary, user departments' anticipated requirements
will be evaluated in an attempt to determine yearly values of commodities
and/or services. In addition, past history will also be taken into
consideration in evaluating the yearly cost associated with the purchase
of commodities and services.
[3]
If it is expected that the bid limit will be exceeded for any
one type of noncontracted commodity or service, completion of the
formal bid process shall take place. The decision to require the formal
bid process shall rest with the designated authority appointed by
the Purchasing Department.
For the purpose of the Town Procurement Policy and Procedures,
the following terms shall have the meanings as set forth herein:
A blanket purchase order gives authority to the vendor to
deliver subsequently authorized goods or services, as instructed by
a Town department and approved by the Director of Purchasing. These
subsequent instructions will indicate the specific services, goods
and quantities to be delivered and the specific delivery times, dates
and locations.
Standard articles of commerce in the form of material goods,
supplies, products, equipment or similar items with no more than incidental
labor required.
Performance of a task (labor) that may include providing
incidental materials in connection with said service.
Services requiring specialized skill, training, knowledge,
expertise and technical skill, and involving the exercise of professional
judgment and discretion.
Contracts for services, labor, construction, repairs and/or
maintenance or other work, that include the furnishing of supplies
or materials incidental to the work.
Official documents that evidence the expenditure as authorized
by the designee for a commodity, public work or service on a one-time
basis or multiple purchases or blanket order, as may be applicable.
The initial document generated in the accounts payable computer
software (presently KVS) pursuant to the process as stated in these
policies and procedures in order to generate a purchase order. It
must be created before committing to a purchase.
A contract for a specified period, with fixed unit pricing
and for an indefinite amount of goods or services to be furnished
as ordered.
A purchasing document that is generated subsequent to purchase
of goods or services and receipt of an invoice from a vendor. The
circumstances that make use of a voucher appropriate are stipulated
in these policies and procedures.
Department heads may not obligate funds nor enter into any agreement
in excess of these limits without prior written approval from the
Purchasing Department.
A.
P-Card or voucher.
(1)
$0.01 to $750 ($0.01 to $1,499.99 with P-Card): Use of a Town of
Smithtown purchasing card (P-Card) or voucher enables authorized employees
to make purchases directly from any vendor that accepts the card or
for a purchase without a purchase order. Town departments participate
in the P-Card program on a voluntary basis. Use of the card or a voucher
eliminates the need to process individual purchase orders for most
small transactions; however, any such purchases can only be charged
to budget codes having adequate unencumbered balances to accommodate
the purchase. When using the P-Card, detailed card usage reports will
be provided to participating departments and to individual employees
authorized to use a P-Card. The P-Card may not be used for any personal
or unauthorized charges.
B.
Purchase orders.
(1)
$750.01 to $1,499.99: For purchases in the amount of $750.01 to $1,499.99
(except when using a P-Card as permitted), the department shall enter
a purchase requisition into the purchasing software. Such purchases
are at the discretion of the department head or his/her designee.
A Town-approved purchase order is required before the purchase.
(2)
$1,500 to $2,999.99: For purchases in the amount of $1,500 to $2,999.99,
the department shall enter a purchase requisition into the purchasing
software. Such purchases are at the discretion of the department head
or his/her designee and will be made from the responsive, responsible
vendor offering lowest price, provided at least one other quotation
is received. Evidence of the second quotation shall be documented
in the purchasing software (currently KVS). A Town-approved purchase
order is required before the purchase.
(3)
$3,000 to $19,999.99: For purchases in the amount of $3,000 to $19,999.99,
the department shall enter a purchase requisition into the purchasing
software with attachments detailing three written/fax/internet website
price quotes from three different vendors. The purchase requisition
shall include a detailed description of the required goods/services,
the appropriate budget code(s), a "ship to" location, a requisition
number, an estimated price (including applicable shipping charges),
suggested vendor(s) and department head's approval. The Purchasing
Department shall maintain the records of such quotes. A Town-approved
purchase order is required before the purchase.
(4)
$20,000 and over: Purchase contracts for goods involving an expenditure
of $20,000 or greater, under General Municipal Law § 103
(for one purchase or multiple purchases of a particular item within
12 months), shall require competitive bidding. A Town-approved purchase
order is required before the purchase.
Department heads may not obligate funds nor enter into any agreement
in excess of these limits without prior written approval from the
Purchasing Department.
B.
Purchase orders.
(1)
$1,500.01 to $4,999.99: For purchases in the amount of $1,500.01
to $4,999.99, the Department shall enter a purchase requisition into
the purchasing software. Such purchases are at the discretion of the
department head or his/her designee and will be made from the responsive,
responsible vendor offering lowest price, provided at least one other
quotation is received. Evidence of the second quotation shall be documented
in the purchasing software (currently KVS). A Town-approved purchase
order is required before the purchase.
(2)
$5,000 to $34,999.99: For purchases in the amount of $5,000 to $34,999.99,
the department shall enter a purchase requisition into the purchasing
software, attaching details of three written/fax/internet website
price quotes from three different vendors. The purchase requisition
shall include a detailed description of the required goods/services,
the appropriate budget code(s), a "ship to" location, a requisition
number, an estimated price (including applicable shipping charges),
suggested vendor(s) and department head's approval. The Purchasing
Department shall maintain the records of such quotes. A Town-approved
purchase order is required before the purchase.
(3)
$35,000 and over: Public works or services involving an expenditure
of $35,000 of greater, under General Municipal Law § 103,
for a one-time public works or service purchase shall require competitive
bidding. A Town-approved purchase order is required before the purchase.
A.
Quotations required.
(1)
All requests for written and/or faxed quotations shall be documented
and attached in KVS; a hard copy of the purchase order is filed in
the Town Purchasing Department.
(2)
A good faith effort shall be made to obtain the required number of
quotations. If for any reason the user department purchasing staff
are unable to obtain the requisite number of quotations, the user
department or Purchasing Department shall properly document in writing
the reasons why, and the efforts made to obtain the required written
quotes. A documented inability to obtain the requisite number of quotations
shall not be an impediment to securing the procurement.
B.
Less than three quotes.
(1)
For goods and services purchases exceeding $2,999.99 (but less than
$20,000) and public works projects or non-professional services exceeding
$4,999.99 (but less than $35,000), in the event less than three quotes
are received, at the request of the Purchasing Department, a cost
or price analysis (as applicable) shall be conducted by the using
department. Price analysis will be based on comparison to other similar
awards, list prices, prices offered to the general public for similar
quantities, etc. The cost analysis will separate specific cost elements
of the quote, comparing them, as appropriate, to any pre-quote estimates
prepared by or for the Town, established industry standards or prevailing
wage rates.
(2)
Under no circumstances shall a quotation that exceeds General Municipal
Law § 103 bid limits be awarded prior to a formal bid taking
place, except as set forth herein.
C.
Contractor renewals and contractor performance report.
(1)
Prior to renewing annual requirements contracts, the Purchasing Department
will send a partially completed Contractor Performance Report (CPR)
(copy attached as Exhibit A[1]) to the contract's primary user department(s) with
a request for them to complete the evaluation questions and return
the CPR to the Purchasing Department.
[1]
Editor's Note: Exhibit A is on file in the Town offices.
(2)
The Purchasing Department will upload the completed CPR into the
KVS accounting software (Purchasing Module) as an "attachment" to
the vendor's "Master Record." Uploaded CPRs are accessible for
review by all Town departments.
(3)
Acting upon the recommendation of the user department, the Purchasing
Department will send a contract renewal inquiry to the vendor/contract
holder. If the vendor/contract holder expresses an interest in renewing
the contract, a resolution will be prepared for the Town Board's
consideration.
(4)
Upon approval, by Town Board resolution, the Purchasing Department
will send written notification to the vendor/contract holder and user
department(s) indicating the revised contract expiration date.
(5)
Departments are encouraged to complete a CPR upon completion of each
contract for the purchase of goods, services, public works and professional
services regardless of intent to renew the contract. Completed CPRs
should be forwarded to the Purchasing Department for uploading into
KVS.
A.
Exceptions to competitive bidding requirements and procurement policies
not subject to competitive bid processing as defined by NYS GML § 103
are subject to NYS GML § 104(6).
(1)
General Municipal Law § 104(b) relates to all services
that are exempt from GML § 103, including, but not limited to,
such professional services that require specialized or technical skills,
expertise or knowledge; and mandates that municipalities shall adopt
internal policies and procedures to govern the procurement of all
goods and services that are not subject to the competitive bidding
requirements of General Municipal Law § 103.
(2)
The Town Procurement Policy and Procedures prescribe a method for
determining whether a procurement of goods and services is subject
to competitive bidding. These procedures provide for methods to obtain
alternative proposals and quotations for goods and services that are
not subject to competitive bidding.
(3)
NYS GML § 104(b) as it relates to procurement policies
not covered by GML §§ 100 through 103:
(a)
Goods and services which are not required by law to be procured
by competitive bidding must be procured in a manner so as to assure
the prudent and economical use of public moneys in the best interests
of the taxpayers of the political subdivision. To further these objectives,
the governing board of every political subdivision and any district
therein, by resolution, shall adopt internal policies 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.
(b)
Such policies and procedures shall contain provisions which,
among other things:
[1]
Prescribe a procedure for determining whether a procurement
of goods and services is subject to competitive bidding.
[2]
Provide that alternative proposals or quotations for goods and
services shall be secured by use of written requests for proposals,
written quotations, verbal quotations or any other method of procurement
which furthers the purposes of this section.
[3]
Set forth when each such method of procurement will be utilized,
taking into account which method will best further the purposes of
this section and the cost-effectiveness of the method.
[4]
Require adequate documentation of actions taken in connection
with each such method of procurement.
[5]
Require justification and documentation of any contract awarded
to other than the lowest responsible dollar offeror, setting forth
the reasons such an award furthers the purpose of this section.
[6]
Identify the individual or individuals responsible for purchasing
and their respective titles. Such information shall be updated biennially.
[7]
Set forth any circumstances when, or types of procurements for
which, solicitation of alternative proposals or quotations will not
be in the best interest of the political subdivision.
B.
Professional services. Contracts for services that involve specialized
skill, training, knowledge, expertise, technical skill and the use
of professional judgment are considered "professional services" contracts
which are excluded from the competitive bidding requirements of General
Municipal Law § 103. Examples of professional services include,
but are not limited to, accountants, architects, attorneys, surveyors
and engineers. The procurement of such services is subject to General
Municipal Law § 104(b). The following sets forth the procedures
and requirements for the procurement of professional services:
(1)
Professional service consultants (herein "consultants") shall be
authorized pursuant to the Town Board's authorized list of professional
services consultants adopted by resolution at the Town Board's
annual organizational meeting or pursuant to a specific Town Board
resolution. It is the intent of the Town Board to develop this authorized
list through submissions received in response to a Town-prepared request
for qualifications (RFQs). This list shall be maintained by the Purchasing
Department.
(2)
In lieu of applicants appointed via an RFQ, the Town allows for professional
consultants to submit a professional consultant application. After
review and approval by the appropriate department and the Director
of Purchasing, the application must be submitted to the Town Board
for approval and placement on the professional services consultants'
list.
(3)
Professional service requisitions (PSRs) shall be prepared by the
requesting department and approved by the department head. It shall
be further approved by the Director of Purchasing.
(a)
Town Board approval shall be required for any PSR issued to
an authorized professional service consultant under the following
circumstances:
[1]
For either a non-capital project or a capital project in an
amount of $25,000 or greater;
[2]
If a second award is made to the same consultant for a specified
project wherein the combined total of contracts is equal to or greater
than $25,000; or
[3]
An award of contract to a professional services consultant that
is not on the designated list, but has been selected for specialized
expertise; the contract resolution also will designate the Director
of Purchasing to award a PSR to the selected consultant and the Purchasing
Department will add the consultant to the authorized consultant list.
(b)
PSRs issued for a non-capital or a capital project in amounts
less than $25,000 shall require a written justification from the requesting
department. The department head of the requesting department must
state and validate that the price is reasonable given current market
conditions and that the work is necessary. The Purchasing Department
shall maintain this documentation with the authorized PSR.
(c)
Comparative pricing shall be required when a particular project
is anticipated to exceed $25,000 but is less than $50,000 for non-capital
and capital projects and the following procedures shall be adhered
to:
[1]
Contact at least two firms with qualifications that match the
work that is required and obtain written price quotes;
[2]
Once a firm is selected, obtain a written proposal for the particular
work to be performed and an estimated cost, based on the number of
staff hours requited to complete the project, as well as any other
additional direct out-of-pocket costs the contractor expects to incur;
[3]
Request that the Town Attorney's office prepare an agreement
for the project. Note that a separate contract must be entered into
between the Town and a selected contractor for each project;
[4]
Submit a proposed contract award to the Town Board for approval.
(d)
When there are no qualified consultants on the professional
services consultants list that possess the necessary expertise or
knowledge needed, the department head submits a written request to
the Director of Purchasing containing the following:
[1]
Supporting documentation which sets forth specific and adequate
justification for selecting a particular professional consultant;
[2]
Upon the Director of Purchasing's written approval, the
worksheet resolution form to approve the PSR may be submitted to the
Town Board for approval without first obtaining comparative pricing;
and
[3]
The written request of the department head shall be included
as supporting documentation to the Town Board resolution.
(4)
Below is a quick overview of the procedure to be followed when hiring
a professional services contractor at various dollar values:
|
Project Value
|
Procurement Requirements
|
Resolution Needed to Award
|
Contract Required
|
Resolution Needed to Contract
|
|---|---|---|---|---|
|
Under $1,500.01
|
None (1)
|
No
|
No
|
N/A
|
|
$1,500.01 to $24,999.99
|
Any approved contractor based on department head justification
(2)
|
No
|
Yes
|
Yes
|
|
$25,000 to $49,999.99
|
At least two proposals from approved contractors and
based on written department head justification (3)
|
Yes
|
Yes
|
Yes
|
|
$50,000 or over
|
Formal request for proposals (RFP) required (4)
|
Yes
|
Yes
|
Yes
|
|
Notes:
| |
|
(1)
|
Use a claim voucher, procurement card or purchase requisition.
|
|
(2)
|
Justification to include need for work and reasonability
of price. Obtain a written proposal from contractor. Contact Purchasing
for CPA form. Prepare a resolution authorizing the Supervisor to sign
agreement.
|
|
(3)
|
Obtain at least two written proposals. Either award
to the lowest-priced proposer or prepare a written justification to
award to other than the lowest proposer. Contact Purchasing for a
CPA form. Prepare a resolution authorizing the project and the Supervisor
to sign agreement.
|
|
(4)
|
Contact Purchasing to prepare a request for proposals
(RFP).
|
C.
Emergencies. An emergency is an accident or other unforeseen occurrence
or dangerous condition that affects public buildings, public property,
life, health, safety or private property or threatens, curtails or
terminates an essential service to Town residents or the public and
the remediation cannot await competitive bidding or the solicitation
of written proposals or quotations. To meet this criteria, there must
be a present, immediate and existing condition which is creating an
imminent threat or danger.
(1)
For goods and services valued between $750.01 and $2,999.99 ($1,500 to $2,999.99 for P-Cards), procedures under § 57-4, Purchase orders, (above) should be followed and a special request made to the Director of Purchasing for expedited processing.
(2)
For goods and services valued between $3,000 and $19,999.99, the
following expedited purchasing procedures will apply, provided the
department head submits, to the Purchasing Department, a written request
sufficiently detailing:
(a)
The date the emergency first became known to the Town;
(b)
The date, time and place the goods/services are needed;
(c)
A description of how the emergency meets the definition stated
above;
(d)
A list of the required goods and services, their prices and
quantities from the selected supplier;
(e)
The names of any other suppliers contacted and any alternate
price quotes received;
(f)
A recommended course of action;
(g)
A list of any prior related emergencies.
In most cases, if the requesting department complies with these
instructions, approval for the emergency procurement will be granted
within one business day.
(3)
When a Town Board Declaration of emergency is required for goods
and services valued in excess of $19,999.99, Town Board approval must
be obtained prior to issuance of a purchase order. Departments are
instructed to contact their Town Board liaison or the Town Supervisor
to commence this process as soon as possible.
D.
Sole-source procurement. Sole-source procurement is one in which
only one vendor can supply the commodity, technology and/or perform
the services required, or as otherwise required by law, and there
is no substantial equivalent. In such cases, contract prices, terms
and conditions shall be determined through negotiation between the
supplier and the Town.
(1)
To initiate a sole-source purchase, a solicitation review (SR) report
shall be prepared by the using department. The SR shall contain the
following elements, as applicable:
(a)
Description of the goods, services or construction to be procured;
(b)
Need for the procurement;
(c)
Required date of delivery for goods and services;
(d)
Need to contract out (services only);
(e)
Estimated cost of the proposed contract;
(f)
Anticipated level of competition, including:
[1]
Identification of any applicable statutory authority mandating
the purchase from a required source;
[2]
Detailed explanation of why the goods, services or construction
are available from only one source of supply;
[3]
Description of efforts made to explore other sources of supply;
[4]
A statement describing intended actions to develop competition
in the future;
[5]
Any other facts which help support a non-competitive award;
and
[6]
Cost or price analysis (as applicable) offering justification
that the proposed price is fair and reasonable.
(2)
The SR report must be signed and dated by the department head. The
completed SR report should be submitted to the Purchasing Department,
along with a purchase requisition (if applicable).
(3)
As this process is somewhat paper-intensive, departments are urged
to consolidate repeat sole-source purchases into requirements contracts.
Sole-source requirement contracts may not exceed two years in duration.
(4)
For sole-source purchases valued less than $20,000 ($35,000 for public
works), the Purchasing Department will send the vendor a purchase
order.
(5)
For sole-source purchases in excess of $19,999.99 ($34,999.99 for
public works), the Purchasing Department will prepare a Town Board
resolution based upon the information contained in the SR report.
E.
Equipment leases. Before any commodity or equipment lease is finalized,
the lease must be forwarded to the Town Attorney for review and approval
and the Town Board shall review and approve the lease prior to execution
by the Supervisor.
F.
Governmental sources. Governmental procurement sources for commodities
and service requested by the user departments shall be investigated
and utilized in accordance with applicable law, to the extent possible.
These sources may include:
(1)
Federal General Services Administration (FGSA), Schedules 70 and
84;
(2)
New York State Office of General Services (NYS OGS contracts);
(3)
Suffolk County and other county contracts as permissible;
(4)
Surplus and secondhand purchases from other governmental entities;
(5)
Commodities and/or services shall be procured from preferred sources,
pursuant to State Finance Law § 162. The Purchasing Department
shall obtain and maintain a current list of preferred source providers
from the NYS Office of General Services. Procurements shall be in
compliance with the Office of General Services' NYS Procurement
Bulletin — Preferred Source Guidelines;
(6)
National cooperative contracts as are approved and available and
in the Town of Smithtown's best interest; and
(7)
Such other goods and services authorized by the Town Board in accordance
with General Municipal Law.
A.
Change orders shall be authorized in the same manner as the awarded
contract. When a change order increase would result in an aggregate
change of at least the greater of 10% of the Town Board approved contract
value or $20,000, then a budget approved requisition must be submitted
to Purchasing, and approval evidenced by a Town Board resolution is
required.
B.
A change order exceeding these minimum amounts may require competitive
bidding at the discretion of the Town Board.
C.
The department requesting a change order shall document, in writing,
that the requested change order does not constitute a new undertaking
and/or alter the essential identity or main purpose of the contract
for the commodities or services provided.
