The Town Manager is designated to act as purchasing agent (PA) for all departments of the Town, except the School Department, and for selling unused, worn out, surplus or obsolete equipment and materials.
Whenever it is deemed necessary or desirable that supplies, materials, equipment or contractual services be purchased or secured, requests are to be submitted to the purchasing agent specifying the nature of the purchase desired, the quantity required, and the performance requirements to be met. Upon receipt of any such a request, the purchasing agent shall inquire of potential suppliers as to the cost of such purchase in the form of informal offers to supply the items required.
If the probable cost thereof, as shown by informal offers, will be $25,000 or more, the PA shall undertake formal bidding as hereinafter provided. If the probable cost will be less than $25,000, the PA may award to the supplier offering the lowest responsible bid among the informal bidders; provided, however, that if the cost will be $10,000 or more, at least three informal bids, or a statement of why three bids are not available, must be secured in writing.
Whenever formal bidding is necessary by reason of the probable amount involved, the purchasing agent is to prepare or cause to be prepared specifications for the article or services required and advertise the requirements of the Town at least once in a newspaper of general circulation in the Town, inviting the tender of bids in writing for providing such requirements. Said bids must be publicly opened and read by the purchasing agent at a time and place specified in the public notice. An investigation as to the responsibility of the bidders is to be made if the purchasing agent deems it necessary.
The Town Manager is to report the bid results to the Council.
Vendors will be selected on a competitive basis. Bids, quotations and proposals will be solicited by newspaper advertising, direct mail requests to prospective suppliers, and by telephone. Purchasing orders and contracts will be awarded to the lowest responsible vendor. All bids, etc., may be rejected if it is in the public interest to do so. In determining "lowest responsible vendor," in addition to price the following will be considered:
Ability, capacity and skill of the vendor to perform the contract or provide the material or service required;
Whether the vendor can perform the contract or provide the material or service promptly, or within the time specified, without delay or interference;
The character, integrity, reputation, judgment, experience and efficiency of the vendor;
The quality of performance of previous contracts, orders or services;
The previous and existing compliance by the vendor with laws and ordinances relating to the contract, order or service;
The sufficiency of the financial resources and ability of the vendor to perform the contract, or fill the order, or provide the service;
The quality, availability and adaptability of the supplies or contractual service to the particular use required;
The ability of the vendor to provide future maintenance and service for the use of the subject of the contract; and
The number and scope of conditions attached to the bid.
Purchases of less than $10,000 will be made in the open market without necessary IFB or RFQ procedures. Every effort will be made, however, to obtain the lowest and best price.
Purchases and supplies and services between $10,000 and $25,000 will require a request for quotation. RFQs are similar to IFBs, except that legal advertising is not required and detailed specifications may not be appropriate. At least two written responses from RFQs, to be submitted to the purchasing agent, or a statement of why two are not available, will be required.
Except as otherwise provided in this section, when the estimated cost of a procurement exceeds $25,000, an invitation for bids will be published in a newspaper in general circulation within the community at least seven days before the bid opening. The IFB will include a general description of the items to be purchased, the bid deposit and performance bond required, and is to state where bid proposal forms and specifications may be secured and the time and place for opening bids. The purchasing agent may also solicit bids from responsible prospective suppliers by sending them a copy of such notice.
The IFB method of advertising, and to a lesser extent the RFQ method, involves the inflexible process of sealed bids, public opening, and award to the lowest responsible bidder. On the other hand, after receipt of quotations, negotiation usually involves the process of bargaining with suppliers, providing the "best deal" to the Town. Like procurement by formal advertising, Town procurement by negotiation requires the observation of impartiality toward all offers. While negotiation procedures are more flexible than advertised procedures, such flexibility demands a greater degree of care to ensure that all competitive offers are treated equally.
It is recognized that the purposes of a formalized purchasing procedure could be subverted by lost opportunity and time if required on incidental purchases. Therefore, the purchasing agent expressly delegates a limited purchase allowance to the following persons and grants a per-purchase allowance as indicated.
(1) Department heads have the limit of $5,000, as well as those listed underneath "department heads."
(2) The limit of $5,000 applies to all those listed in the table.
This allowance is intended to speed the purchase of incidental items and does not relieve the department head of encumbrance accountability.
Editor's Note: Amended at time of adoption of Code (see Ch. 1.1, Code Adoption).
Unless otherwise specifically stated by a resolution or ordinance of Council, all purchasing contracts made by or on behalf of the Town must be executed by the purchasing agent.
In the event of disaster or other emergency, if purchases of supplies, materials, equipment or contractual services must be made immediately without an opportunity for the procedures herein or Council approval, the Town Manager is authorized to make necessary purchases to protect the public health and safety and without complying with the procedures outlined in this chapter. In the event of such emergency purchases, the Town Manager shall report the details of the purchase to Council as soon as possible thereafter.
All municipally owned property, real or personal, must be disposed of either by:
Unless otherwise requested by the Town Manager and so directed by the Council, monies received pursuant to Subsection A(2) and (3) above must be credited to the vehicle or equipment reserve fund revenue account designated as the current vehicle or equipment fund used by the department for which it was purchased.
[Added 11-10-2014 by Ord. No. 14-07]
This chapter does not apply to disposal of:
The above procedure must be followed at all times unless prior approval is obtained from the Town Council.