[Adopted 9-29-2010]
The purposes of the policy are to standardize the purchasing
procedure of the Town of Islesboro thereby securing for the Town the
advantages of a centralized and uniform purchasing policy saving the
taxpayers' money and increasing public confidence in the procedures
for municipal purchasing; to promote the fair and equitable treatment
of all suppliers of goods and services; and to set forth the duties
and responsibilities of the department heads and the Town Manager
or Town Manager's designee, thereby fostering interdepartmental
cooperation and trust in the purchasing system. The purpose of this
policy is to allow the Board of Selectmen and Town Manager, or Town
Manager's designee, the ability, when in the best interest of
the Town, to give preferential treatment to bids and/or bidders that
represent a direct benefit to the local economy.
The following terms shall have the meanings indicated:
A bid chosen on the basis of price, quality of merchandise,
suitability of merchandise, and service reputation of the vendor,
and therefore may not necessarily mean the lowest bid received.
The process of obtaining the bid most advantageous to the
Town for any purchase, whether through formal or informal bidding
procedures.
A purchase made by the Town in conjunction with or from another
governmental or quasi-governmental agency, such as, but not limited
to, the State of Maine, Islesboro Central School, Dark Harbor Wastewater
Treatment Facility or another municipality.
A written quotation obtained in a sealed envelope from a
vendor or through advertisement and opened at a specific day, place
and time.
A written quotation obtained from a vendor but not required
to be opened publicly at a specified day, place and time.
Bidders whose company's headquarters are in Islesboro
and/or who pay excise or personal property taxes in Islesboro.
Buying, renting, leasing, or otherwise acquiring supplies
or services for a price.
The lease or rental of all grounds, buildings, offices, space
or equipment required by the Town, the repair or maintenance of equipment
or real property owned by or the responsibility of the Town and all
labor furnished to the Town and the use of equipment by persons, firms,
individuals or corporations not part of or connected with the Town
government. "Services" shall not include professional services provided
to or for the Town by lawyers, architects, engineers, auditors and
consultants, nor shall "services" include utilities such as electricity
and phone services.
All supplies, materials and equipment.
The Town Manager or the Town Manager's designee.
Responsibilities of department heads shall be as follows:
A.
To practice economy in the use of materials.
B.
To maintain equipment in serviceable condition.
C.
To plan future purchases to provide ample time to secure favorable
prices.
D.
To ensure compliance by employees with purchasing regulations and
procedures.
E.
To assure that a sufficient unencumbered balance in the department's
appropriation is available before a purchase it made.
F.
To supply the Town Manager with a list of estimated annual requirements
of frequently used supplies, thereby fostering cooperative purchasing.
H.
To be empowered to reject any unacceptable supply or commodity on
the grounds of high cost or low quality, and provide the Town Manager
with a written detailed report of any rejection.
A.
Purchase limits are as follows:
|
Purchase Amount
|
Process
| |
|---|---|---|
|
$0 to $2,500
|
Purchase order required
| |
|
Between $2,500 and $10,000
|
Informal bidding
| |
|
Over $10,000
|
Formal bidding
|
B.
Purchases of $2,500 or less:
(1)
Authority. Department heads are authorized to make purchases from
vendors when the total cost is $2,500 or less if budget funds are
available. Department heads are expected to investigate the local
market and select items best suited for their needs by both quality
and price.
(2)
Purchase order. Purchase orders will be submitted for all purchases
and will be approved by the department head, followed by the Town
Manager. A copy of the purchase order will be sent to the vendor,
or the purchase order number will be relayed to the vendor for placement
on the invoice with proper account coding.
(3)
Invoice necessary. The department head making the purchase will ensure
that the invoice is to the Town of Islesboro and should also ensure
that the vendor provides a legible and complete description of the
item purchased on the invoice. A copy of the supplier's invoice
signed by the person making the purchase will be delivered to the
department head. The department head shall verify (by signing the
invoice) the receipt of the item and ensure that the invoice reflects
the department and activity for which the purchase was made. The invoice
shall also have the corresponding purchase order number clearly printed
on the invoice so that the Treasurer and/or Deputy Treasurer can expeditiously
pay the invoice. Invoices shall be delivered to the Treasurer and/or
Deputy Treasurer as soon as possible.
(4)
Department heads. Department heads shall exercise prudence and care
to ensure that the appropriate vendor selection method is utilized.
(5)
Blanket purchase. Blanket purchase orders for ongoing purchases of
supplies or seasonal contracts shall be renewed annually.
C.
Purchases between $2,500 and $10,000.
(1)
Dollar limits. An informal bidding process may only be used in the
purchase of items under $10,000 or over $10,000 in an emergency. Department
heads are expected to investigate the local market and select the
items best suited for their needs by both quality and price.
(2)
Informal bidding process. Informal bidding shall require at least
three written quotations from separate vendors whenever possible.
Under this method the request for quotations is not publicly advertised
nor is there a formal bid opening. All informal purchases shall, whenever
possible, be based on at least three competitive quotations and be
awarded in accordance with the standards set forth. Generally, an
informal bidding process shall be used whenever a purchase or contract
exceeds $2,500 but is less than $10,000. If written quotes are not
possible, a log containing the date, vendor's name, items, price and
delivery quoted shall be prepared and maintained by the department
head.
D.
Formal bidding. Purchases over $10,000 shall normally require the
use of the following bid process:
(1)
Notice of invitation to bid should be posted in at least three conspicuous
public locations in Town and mailed to a bidder's list if available.
Notification shall be made whenever possible at least five days preceding
the last day acceptable for receipt of bids. In addition to the invitation
to bid, each prospective bidder will be furnished a specification
sheet and a bid proposal form.
(2)
Bids shall be submitted, sealed and identified as bids on the envelope.
They shall be opened by the Town Manager or the Manager's designee,
in public, at the time and place stated, and a tabulation of all bids
shall be available for public inspection.
(3)
When deemed necessary by the Town Manager, bid deposits will be required.
Unsuccessful bidders shall be entitled to return of their deposit,
while the successful bidder shall forfeit the bid deposit upon failure
on their part to enter into a contract within 10 days after award.
(4)
Before entering into a contract, the Town Manager shall have the
authority to require performance bonds in such amounts as he/she shall
find necessary to protect the best interest of the Town.
(5)
The Town Manager may make cooperative purchases without competitive
bidding if the Town Manager determines the purchase is being made
after competitive bidding by the cooperative entity or at a price
more advantageous than the Town would be likely to obtain by competitive
bidding.
(6)
The Town Manager may waive the requirements for competitive bidding
for purchases of $10,000 or less in cases of emergency or when the
purchase is inappropriate for competitive bidding due to the nature
of the item, time constraints or other factors, provided that the
Town Manager shall file a full and complete statement of the reasons
for waiving competitive bidding.
(7)
The Board of Selectmen may waive the requirements for competitive
bidding for purchases of $10,000 or more in the case of a nonemergency
purchase when the purchase is inappropriate for competitive bidding
due to the nature of the item, time constraints, or other factors.
(8)
The Town Manager may waive the requirements for competitive bidding
in any amount in all emergency situations, provided that the Town
Manager shall file a full and complete statement with the Town Clerk
of the reasons for waiving competitive bidding and notify the Chair
and members of the Board of Selectmen of such.
(9)
All purchases requiring utilization of the formal bidding process
shall be subject to Board of Selectmen approval prior to the initialization
of the formal bid process.
The responsibility for preparing specifications rests with the
department head, in collaboration with the Town Manager.
Upon return of the bid proposals or the request for quotation
form from the vendors, the department head will summarize the prices
offered on a quotation summary form and recommend to the Town Manager
the vendor to be chosen. The Town Manager will determine the lowest
and best bid. A summary of the bid process will be provided to the
Board of Selectmen.
A.
The following factors shall be considered in awarding each bid:
(1)
The stated bid price.
(2)
The ability, capacity and skills of the bidder to perform the contract
or provide the purchase within the time specified without delay or
interference.
(3)
The character, integrity, judgment, experience and efficiency of
the bidder.
(4)
The quality of performance of previous contracts or purchases.
(5)
The previous and existing compliance by the bidder with the laws
and ordinances relating to the contract for service.
(6)
The sufficiency of the financial resources and ability of the bidder
to perform the contract or provide the purchase.
(7)
Quality, availability and adaptability of the contract or purchase.
(8)
The ability of the bidder to provide future maintenance service on
the items to be purchased.
(9)
The number and scope of conditions attached to the bid.
B.
If all
bids received are the same total amount or within 10% variance, up
to a maximum of $25,000, with quality being equal, the contract shall
be awarded to an Islesboro business, service or professional.
C.
The department head will notify the Treasurer and/or Deputy Treasurer
upon receiving the goods or services, by stamping the purchase order
with the receiving stamp and forwarding the stamped copy of the purchase
order form, together with the statement, invoice and other documents
accompanying the shipment, to the Treasurer and/or Deputy Treasurer.
No equipment or accessory may be put to use by any department
for the purpose of testing its suitability or fitness in advance of
purchase without the prior written approval of the Town Manager. In
all cases, proof of insurance must be furnished by the supplier or
contractor.
The Town Manager shall have the authority to join with other
units of government in cooperative purchasing when the best interests
of the Town would be secured.
Cash purchases may be made in small amounts through the petty
cash fund.
A.
The amount of a single cash purchase shall not exceed $25. Persons
making cash purchases shall be reimbursed upon presentation of a receipt
to the person authorized by the Town Manager to disburse petty cash.
B.
A record of disbursements, their purpose and receipts shall be maintained
by the person authorized by the Town Manager to disburse petty cash.
C.
The petty cash fund shall not exceed $100 and shall be kept separate
from all other cash. It shall be replenished as needed by warrant
approved by the Board of Selectmen.
