Village of Owego, NY Procurement Policy

Editor's Note: This resolution also superseded former Ch. 57, Procurement Policy, adopted 1-6-1992.

The Village of Owego does hereby adopt the following procurement policy, which is intended to apply to all goods and services which are not required by law to be publicly bid:

For every purchase to be made, it shall be determined: i) to be either a purchase contract or a public works contract; and ii) whether it is known or can reasonably be expected that the aggregate amount to be spent on the item of supply or service 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 § 103 of the General Municipal Law:

(1)

Purchase contracts under $20,000 and public works contracts under $35,000.

(2)

Emergency purchases.

(3)

Certain municipal hospital purchases.

(4)

Goods purchased from agencies for the blind or severely handicapped.

(5)

Goods purchased from correctional institutions.

(6)

Purchases under state and county contracts.

(7)

Surplus and secondhand purchases from another governmental entity.

The decision that a purchase is not subject to competitive bidding shall be clearly documented, in writing, by the individual making the purchase. Said documentation shall contain:

(1)

All written or verbal quotes as may be required. All verbal quotes shall clearly set out the date, time, name of the vendor or agency solicited, the representative who provided the quote, and a summary of the verbal request for quote as provided by the purchaser;

(2)

A memo from the purchaser fully and clearly identifying the source and justification(s) in deciding that a purchase is not subject to competitive bidding;

(3)

A memo from the purchaser detailing the circumstances which led to an emergency purchase; and

(4)

Any other written documentation as may be required or deemed appropriate.

All goods and services shall be secured in a manner that clearly dispels and/or avoids the appearance of favoritism or collusion by: i) use of written requests for proposals; ii) written quotations; iii) fully documented verbal quotations; or iv) any other approved methods that assures that goods and services will be purchased at the lowest price. Exceptions are as follows:

(1)

Purchase contracts over $20,000 and public works contracts over $35,000;

(2)

Goods purchased from agencies for the blind or severely handicapped pursuant to § 175-b of the State Finance Law;[1]

[1]

Editor's Note: Section 175-b of the State Finance Law was repealed by L. 1995, c. 83, § 33, effective 4-1-1995. See now State Finance Law § 162.

(3)

Goods purchased from correctional institutions pursuant to § 186 of the Correction Law;

(4)

Purchases under state contracts pursuant to § 104 of the General Municipal Law;

(5)

Purchases under county contracts pursuant to § 103, Subdivision 3, of the General Municipal Law; or

(6)

Purchases pursuant to § 57-1H of this chapter.

The following method of purchase will be used when required by this chapter in order to achieve the highest savings:

(1)

Purchase contracts.

	Estimated Amount of Purchase Contract	Method
	$500 to $4,999	Documented verbal quotations in compliance with § 57-1B of this chapter
	$5,000 to $19,999	Written/fax quotations and written request for proposals

(2)

Public works contract.

	Estimated Amount of Public Works Contract	Method
	$500 to $4,999	Verbal quotations
	$5,000 to $9,999	Written/fax quotations
	$10,000 to $34,999	Written/fax quotations and written request for proposals

Due diligence shall be made to obtain the required number of proposals or quotations under the appropriate regulations set forth herein. If the purchaser is unable to obtain the required number of proposals or quotations, the purchaser will present the documented attempt made at obtaining the required proposals or quotations to the Village Board of Trustees, who will then decide whether or not to approve the procurement.

Documentation is required of each action taken in connection with each procurement.

Clear and complete written documentation is required whenever a contract is awarded to other than the lowest responsive and responsible offeror. This documentation shall include an explanation of how the award was determined, how it will achieve savings for the Village, and how the offeror was not responsive or responsible. A determination that the offeror is not responsive or responsible shall be made by the purchaser and presented to the Village Board for record.

Pursuant to General Municipal Law § 104-b, Subdivision 2f, the procurement policy may contain provisions for 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. In the following circumstances, it may not be in the best interest of the Village of Owego to solicit quotations or document the basis for not accepting the lowest bid:

(1)

Professional services.

(a)

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 Village of Owego Board of Trustees shall take into consideration the following guidelines:

[1]

Whether the services are subject to state licensing or testing requirements;

[2]

Whether substantial formal education or training is a necessary prerequisite to the performance of the services; and

[3]

Whether the services require a personal relationship between the individual and municipal officials.

(b)

Professional or technical services shall include but not be limited to the following types of services:

[1]

Services of an attorney;

[2]

Services of a physician;

[3]

Technical services of an engineer engaged to prepare plans, maps and estimates;

[4]

Securing insurance coverage and/or services of an insurance broker;

[5]

Services of a certified public accountant;

[6]

Investment management services;

[7]

Printing services involving extensive writing, editing or artwork;

[8]

Management of municipally owned property; and

[9]

Computer software or programming services for customized programs or services involved in substantial modification and customizing of prepackaged software.

(2)

Emergency purchases pursuant to § 103, Subdivision 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 alternate proposals may threaten the life, health, safety or welfare of the residents. This subsection does not preclude alternate proposals if time permits.

(3)

Purchases of surplus and secondhand goods from any source. If alternate proposals are required, the Village of Owego is precluded from purchasing surplus and secondhand goods at auctions or through specific advertised sources 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.

(4)

Goods or services under $500. The time and documentation required to purchase through this chapter 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.