[HISTORY: Adopted by the Malone Village Board 4-27-1992. Amendments
noted where applicable.]
GENERAL REFERENCES
Code of Ethics — See Appendix, Part IV.
Goods and services which are not required by law to be procured
pursuant to competitive bidding must be procured in a manner so as
to assure the prudent and economical use of public moneys, in the
best interests of the taxpayers, to facilitate the acquisition of
goods and services of maximum quality at the lowest possible cost
under the circumstances and to guard against favoritism, improvidence,
extravagance, fraud and corruption. To further these objectives, the
governing board is adopting internal policies and procedures governing
all procurements of goods and services which are not required to be
made pursuant to the competitive bidding requirements of General Municipal
Law § 103 or of any other general, special or local law.
Generally, the official(s) responsible for making the particular
procurement will make the initial determination of whether competitive
bidding is required. Steps involved in making this determination,
among other things, include:
A.
A policy for determining whether it is expected that, over the course
of the fiscal year, the Village of Malone will spend in excess of
the competitive bidding thresholds for the same or similar items or
services (e.g., checking budgetary appropriations; prior years'
expenditures). Meetings of all officials authorized to make purchases
will be held periodically to ensure that the objectives of this statute
are met.
B.
A procedure that legal issues regarding the applicability of competitive
bidding requirements are presented, as appropriate, to the Village
of Malone's legal counsel.
C.
In the case of an emergency, analyzing that the statutory criteria
are met.
D.
In the case of a lease, analyzing that a document is a true lease
and not an installment purchase contract.
E.
In the case of a sole source, verifying that the item is required
in the public interest, has no reasonable equivalent and is in fact
available only from one source.
F.
In the case of a combination of professional services and a purchase,
analyzing whether the professional service is the predominate part
of the transaction and is inextricably integrated with the purchase.
Except for procurements made pursuant to General Municipal Law
§ 103, Subdivision 3 (through county contracts, or § 104
(through state contract), State Finance Law § 175-b (from
agencies for the blind or severely handicapped),[1] Correction Law § 186 (articles manufactured
in correctional institutions) or the items excepted herein, alternative
proposals or quotations for goods and services shall be secured by
use of written requests for proposals, written quotations, verbal
quotations or any other method of procurement which furthers the purposes
of General Municipal Law § 104-b.
[1]
Editor's Note: Former § 175-b of the State
Finance Law was repealed by L. 1995, c. 83, § 33, eff. April
1, 1995. See § 162 of the State Finance Law.
A.
The methods of procurement to be used are as follows:
(1)
Verbal quotations. The telephone log or other record should record,
at a minimum, the date, item or service desired, the price quoted,
the name of the vendor and the name of the vendor's representative.
(2)
Written quotations. Vendors should provide, at a minimum, the date,
the description of the item or details of the service to be provided,
the price quoted and the name of the contact.
(3)
Requests for proposals. A way to award contracts for professional
services is to award them only after a minimum number of professionals
are contacted and asked to submit written proposals. Requests for
proposals (RFP's) are traditionally used as a means of obtaining
all types of professional services. RFP's are used to obtain
the services of architects, engineers, accountants, lawyers, underwriters,
fiscal consultants and other professionals.
B.
A request for proposals and evaluation of proposals may consider
price plus other factors like experience, staffing and suitability
for needs and may include negotiations on a fair and equal basis.
The award shall be the most advantageous to the Village of Malone.
Documentation of actions taken in connection with each such
method of procurement is required as follows:
A.
Emergencies.
(1)
An exception to the competitive bidding requirements exists for emergency
situations. There are three basic statutory criteria to be met in
order to fall within this exception:
(a)
That the situation arises out of an accident or unforeseen occurrence
or conditions;
(b)
That public buildings, public property or the life, health,
safety or property of the political subdivision's residents are
affected; and
(c)
That the situation requires immediate action which cannot await
competitive bidding.
(2)
Even when a governing board passes a resolution that a public emergency
exists, the public interest dictates that purchases are made at the
lowest possible costs, seeking competition by informal solicitation
of quotes or otherwise, to the extent practicable under the circumstances.
(3)
Documentation should include verbal quotes, etc.
C.
Secondhand equipment from other governments.
(1)
There is a statutory exception to competitive bidding requirements
which permits the purchase of surplus and secondhand supplies, materials
or equipment without competitive bidding from the federal or state
government or from any other political subdivision or public benefit
corporation within the state. However, purchases of used items from
any other source (e.g. private sources like auctions or going-out-of-business
sales) are not exempt from bidding requirements.
(2)
Documentation should include market price comparisons (verbal or
written quotes) and the name of government.
D.
Sole source.
(1)
Competitive bidding is not required under § 103 of the
General Municipal Law in those limited situations when there is only
one possible source from which to procure goods and services required
in the public interest, such as in the case of certain patented goods
or services or public utility services. Thus, for example, if the
Village of Malone, acting in good faith and without intent to arbitrarily
inhibit or restrict competition, determines that a particular patented
item is required in a public interest and it is further determined
that such item is available only from one source so that no possibility
of competition exists, competitive bidding may not be required for
the procurement of the item.
(2)
In making these determinations, the Village of Malone should document,
among other things, the unique benefits of the patented item as compared
to other items available in the marketplace; that no other item provides
substantially equivalent or similar benefits; and that, considering
the benefits received, the cost of the item is reasonable, when compared
to conventional methods. In addition, the Village of Malone should
document that, as a matter of fact, there is no possibility of competition
for the procurement of the goods.
E.
Insurance. Insurance coverage is not subject to formal competitive
bidding. The Village of Malone still has the option, however, of requiring
formal bidding in its policies and procedures. Documentation would
include bid advertisements, specifications and awarding resolution.
Alternatively, written or verbal quotation forms could serve as documentation
if formal bidding is not required. Requests for proposals (RFP's)
documented as indicated above may also be used.
F.
Piggybacking on other government contracts.
[Added 5-11-2015 by L.L. No. 1-2015]
(1)
Pursuant to GML § 103(16), local governments are allowed
to "make purchases of apparatus, materials, equipment or supplies,
or to contract for services related to the installation, maintenance
or repair of apparatus, materials, equipment, and supplies, may make
such purchases, or may contract for such services related to the installation,
maintenance or repair of apparatus, materials, equipment, and supplies,
as may be required by such county, political subdivision or district
thereon through the use of a contract let by the United States of
America or any agency thereof, any state or any other county or political
subdivision or district therein if such contract was let in a manner
that constitutes competitive bidding consistent with state law and
made available for use by other governmental entities."
(2)
Allowance of any political subdivision authorized under the General
Municipal Laws of the State of New York, to purchase any goods and/or
services awarded as a result of a Village of Malone bid in accordance
with the latest amendments of NYS GML 100 through 103.
Whenever any contract is awarded to other than the lowest responsible
dollar offer, the reasons such an award furthers the purpose of General
Municipal Law § 104-b as set forth hereinabove shall be
documented as follows. Specific examples of why the contract should
not be awarded to the lowest bid follow:
The Board sets forth the following circumstances and/or types
of procurements that it determines would not be in the best interests
of the Village of Malone to solicit alternative proposals or quotations:
A.
In emergencies, where time is a crucial factor.
B.
For procurements for which there is no possibility of competition
(sole-source items).
C.
For procurements of professional services, which because of the confidential
nature of the services do not lend themselves to procurement through
solicitation.
D.
For very small procurements for which solicitations of competition
would not be cost-effective.
Comments concerning the policies and procedures shall be solicited
from officers of the Village of Malone involved in the procurement
process prior to the enactment of the policies and procedures and
will be solicited from time to time hereafter.
The governing board shall annually review these policies and
procedures. The designated person 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.
The unintentional failure to fully comply with the provisions
of General Municipal Law § 104-b shall not be grounds to
void action taken or give rise to a cause of action against the Village
of Malone or any officer or employee thereof.
[Added 7-8-2013 by L.L. No. 2-2013]
A.
The Village Board of Trustees seeks to exercise its local option set forth in the New York State General Municipal Law § 103, Subdivision 1, as amended by Chapter 608 of the Laws 2011 and Chapter 2 of the Laws of 2012, which amendment authorizes the Village to award purchase contracts and contracts for services subject to competitive bidding under General Municipal Law § 103 on the basis of either the lowest responsible bidder or "best value" as defined in the New York State Finance Law § 163. Factors that may be used to enact the "best value" option, where cost efficient over time to award the good(s) or service(s) to other than the lowest bidder, are:
B.
The Village
Board may award purchase contracts and service contracts that have
been procured pursuant to the competitive bidding clause of General
Municipal Law § 103 wherein the award of purchase contracts
or service contracts must be determined by either the lowest responsible
bid or the best value of said good(s) or service(s).
C.
The provisions
of this section apply to the Village purchase contracts involving
any expenditure of more than $20,000 and the Village contracts for
service(s) involving expenditures of more than $35,000 but exclude
purchase contracts necessary for the completion of a public works
contract pursuant to New York State Labor Law Article 8 and exclude
any other contract that may, in the future, be excluded under state
law from the best value option. If the dollar thresholds of General
Municipal Law § 103 are increased or decreased in the future
by New York State Legislature, the dollar thresholds set forth herein
shall be deemed simultaneously amended to match the new General Municipal
Law § 103 thresholds.
D.
Goods and
services procured and awarded on the basis of "best value" are those
that the Village Board of Trustees determines will be of the highest
quality while being most cost efficient. The determination of quality
and cost efficiency shall be based on objectively quantified and clearly
described and documented criteria, which may include, but shall not
be limited to, any or all of the following:
E.
Whenever
any contract is awarded on the basis of best value instead of lowest
responsible bidder, the basis for determining best value shall be
thoroughly and accurately documented.
F.
Any inconsistent
provision of the Village of Malone's Procurement Policy, as adopted
prior to the effective date of this section, by resolution of the
Village Board of Trustees of the Village of Malone, or as amended
thereafter, shall be deemed superseded by the provision of this section.
