The procedures for determining whether a procurement
of goods and services is subject to competitive bidding and documenting
the basis for any determination that competitive bidding is not required
by law is as follows:
A. Generally the official responsible for making the
particular procurement will make the determination of whether competitive
bidding is required. In making this determination, the following questions
must be considered:
(1) Is the proposed procurement a purchase contract or
a contract for public work?
(2) If it is a purchase, will the combined total of similar
procurements made by all Town Departments exceed the bid limit and,
if so, do any exceptions apply?
(3) If not a purchase, what type of procurement is it?
B. The procuring official must document the basis for
any determination that competitive bidding is not required. This documentation
may include evidence of written or verbal quotes that the price of
the item or service will not exceed the bidding limits. The official
may also document the amount expended in previous years in comparison
with the threshold to show that the bidding will not be required.
The documentation must also state how it was determined whether the
procurement was a purchase or a contract for public work.
The procedures are as follows:
Commodities, Equipment or Goods
|
Dollar Limit
|
Procedure
|
$1 to $499
|
At the discretion of the Department
|
$500 to $2,999
|
Documented verbal quotes from three vendors
|
$3,000 to $4,999
|
Formal written quotes from at least three vendors
|
$5,000 to $9,999
|
Formal request for proposal (RFP) with a response
from 3 vendors
|
$10,000 and over
|
Sealed bids in conformance with Municipal Law,
§ 103
|
Public Works Projects (Prevailing wage
rates apply to all public works projects)
|
Dollar Limit
|
Procedure
|
Less than $999
|
At the discretion of the department
|
$1,000 to $4,999
|
Documented verbal quotes from three vendors
|
$5,000 to $9,999
|
Formal written quotes from at least three vendors
|
$10,000 to $19,999
|
Formal request for proposal (RFP) with a response
from 3 vendors
|
$20,000 and over
|
Sealed bids in conformance with Municipal Law,
§ 103
|
Professional Services (recommended not
required)
|
Dollar Limit
|
Procedure
|
Less than $5,000
|
At the department's discretion
|
$5,000 to $20,000
|
Written quotes from two sources should be obtained
|
Over $20,000
|
Written RFP with response from 3 sources
|
NOTE: Document all quotes (including verbal
quotes) using the summary of quotations form attached to purchase
order.
|
Documentation of actions taken in connection
with each such method of procurement is required. Documentation of
quotes must be made on an approved form and maintained by the ordering
department for the same period of time as the corresponding purchase
or contract. Documentation acceptable to the Board must be provided
whenever the required number of quotes is not provided.
The purchasing official must clearly state in
writing on the quotation form the reason for any award made to other
than the lowest price offered.
In certain circumstances, orders are placed
with certain vendors numerous times each month. To eliminate the need
for processing many small orders, a department may use a blanket purchase
order. The estimated value of items to be acquired during the month
will be placed on the order prior to release to the vendor. Bookkeeper
copies will be sent to the Bookkeeper for encumbrance. The voucher,
along with all the individual invoices, will be processed at the end
of the month and a new blanket order issued for the following month.
A department desiring to use this system must submit a list of proposed
vendors, estimated average monthly amounts to be authorized and the
reason a blanket order is desired for the approval of the Board. Once
this has been obtained, no further approval of subsequent blanket
orders are necessary even though they may exceed the $500 limit, unless
a single item is over $500.
Vouchers for reimbursement of mileage paid on
a contractual basis. Payment will be made at the same rate as the
current approved rate for Town employees, unless authorized for a
different amount.
The governing board shall annually review these
policies and procedures. The Town Supervisor shall be responsible
for conducting an annual review of the procurement policy and for
an evaluation of the internal control structure established to ensure
compliance with the procurement policy.