[HISTORY: Adopted by the Town Board of the Town of Phelps as indicated in article histories. Amendments noted where applicable.]
The Town of Phelps 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.
Every purchase to be made must be initially reviewed 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 is not 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:
Purchase contracts under $10,000 and public works contracts under $20,000.
Certain municipal hospital purchases.
Goods purchased from agencies for the blind or severely handicapped.
Goods purchased from correctional institutions.
Purchases under state and county contracts.
Surplus and secondhand purchases from another governmental entity.
The decision that a purchase is not subject to competitive bidding will be documented in writing by the individual making the purchase. This documentation may include written or verbal quotes 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.
All goods and services will be secured by use of written requests for proposals, written quotations, verbal quotations or any other method that assures that goods will be purchased at the lowest price and that favoritism will be avoided, except in the following circumstances: purchase contracts over $10,000 and public works contracts over $20,000; goods purchased from agencies for the blind or severely handicapped pursuant to § 175-b of the State Finance Law; goods purchased from correctional institutions pursuant to § 186 of the Correction Law; purchases under state contracts pursuant to § 104 of the General Municipal Law; purchases under county contracts pursuant to Subdivision 3 of § 103 of the General Municipal Law; or purchases pursuant to § 33-5 of this policy:
Editor's Note: Said section was repealed by L. 1995, c. 83, § 33.
The following method of purchase will be used when required by this policy in order to achieve the highest savings:
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.
Documentation is required of each action taken in connection with each procurement.
Documentation and an explanation is 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.
Pursuant to Subdivision 2f of General Municipal Law § 104-b, 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. In the following circumstances, it may not be in the best interests of the Town of Phelps to solicit quotations or to document the basis for not accepting the lowest bid:
Professional services or services requiring special or technical skill, training or expertise.
The individual or company must be chosen 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 Town of Phelps shall take into consideration the following guidelines: whether the services are subject to state licensing or testing requirements; whether substantial formal education or training is a necessary prerequisite to the performance of the services; and 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 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 artwork; management of municipally owned property; and computer software or programming services for customized programs or services involved in substantial modification and customizing of prepackaged software.
Emergency purchases pursuant to Subdivision 4 of § 103 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 section does not preclude alternate proposals if time permits.
Purchases of surplus and secondhand goods from any source. If alternate proposals are required, the town 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.
Goods or services under $1,000. 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 on favoritism.
[Adopted 7-14-2014 by L.L. No. 3-2014]
New York State General Municipal Law § 103 requires competitive bidding for purchase contracts and public works contracts and has historically required that such bids be awarded to the lowest responsible bidder whose bid meets the requirements of the specifications for the project. Section 103 was amended to provide that by enacting a local law so providing, towns and other municipalities may award purchase contracts (including contracts for service work), which would otherwise be subject to the "lowest bidder" rule, on the basis of best value, as defined in the New York State State Finance Law § 163, to a responsive and responsible bidder or offerer. The Town Board hereby determines that it is in the best interest of the Town of Phelps and its residents for the Town to have the authority to award purchase contracts on the basis of best value.
In addition to the other manners of awarding contracts provided in the New York State General Municipal Law § 103 and the Town of Phelps Procurement Policy, the Town of Phelps may award 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 New York State Labor Law, on the basis of best value, as that term is defined in § 163 of the New York State State Finance Law, to a responsive and responsible bidder or offerer in the manner provided by § 103 of the New York State General Municipal Law.
This local law is enacted pursuant to the authority of the Municipal Home Rule Law and the General Municipal Law § 103(1).