Editor's Note — Ord. no. 12-015 §1, adopted March
19, 2012, deleted ch. 140 "procurement" and enacted new provisions
set out herein. Former ch. 140 derived from R.O. 2006 §§135.010
— 135.050, 135.070 — 135.170; CC 1992 §§135.010
— 135.050, 135.070 — 135.170; CC 1974 §§25.010
— 25.050, 25.070 — 25.160.
[Ord. No. 12-015 §1, 3-19-2012]
A.
Purchasing And Sales Policy.
1.
Purpose. The purpose of this Chapter is to establish
guidelines regarding purchases made by the City and the sale of City
property in order to maximize the value realized for each public dollar
spent and for public property.
2.
Applicability. This Chapter is applicable to all
purchasing for the City regardless of the source of funds used for
the purchase and the sale of any City property outside the scope of
ordinary services. With the exception of Federal forfeiture funds
which are managed by the Chief of Police and may be utilized to acquire
any authorized items or services, the Police Chief will additionally
comply with the latest copy of the Guide to Equitable Sharing for
State and Local Law Enforcement Agencies published by the United States
Department of Justice.
3.
Basic goals. The basic goals of the City are:
a.
To comply with all applicable Federal, State and local legal requirements.
b.
To assure vendors and buyers that impartial and equal treatment will
be afforded to all who wish to do business with the City.
c.
To maximize the value realized for each public dollar spent and for
public property.
d.
To obtain goods and services at the time and place needed in the
proper quantity and quality.
e.
To sell or lease property that is no longer necessary or useful to
the City and that can be better used by the private sector.
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If the procedures and guidelines established in this Chapter
are followed, each department should efficiently manage, control and
plan its available resources to meet present and future departmental
needs and help the City meet its goals.
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B.
APPROPRIATION
AUTHORIZED PURCHASER
BUDGET
CONSTRUCTION
CONTRACT
COOPERATIVE PURCHASING AGREEMENT
COST COMPARISONS
DEPARTMENTS
EXISTING PURCHASING CONTRACT
FORMAL WRITTEN BID
ITEM
OPEN MARKET SALE
MATERIAL VALUE
PROCUREMENT
PURCHASE ORDER
QUOTATION
REQUISITION
SCOPE OF SERVICES
SPECIFICATIONS
Definitions. The following terms shall be defined as stated
for purposes of this Chapter:
The legal authorization of monies for anticipated or incurred
expense.
An approved employee of the City who has been nominated by
a Department Director and appointed by the City Administrator to make
purchases at a specified monetary level on behalf of the City. The
Accounts Payable Clerk shall maintain the list of authorized purchasers
as supplied by the Department Directors.
A document which sets forth proposed revenues and expenses
to be incurred during a fiscal year for the various City operations.
The process of building, altering, repairing, improving or
demolishing any public structure or facility or other public improvement
of any kind.
A legally binding promise enforceable by law and, generally,
in writing.
A legally binding contract approved by the Board of Aldermen
entered into by the City, the United States of America, the State
of Missouri or any of the subordinate agencies or departments and
any other approved organization which manages a cooperative purchasing
program to obtain goods and services at the most advantageous price
for its members and the City specifically.
An informal analysis of the amounts paid or requested for
a product or service accomplished through personal contact, printed
or digital media.
Includes law, administration, finance, police, parks and
recreation, planning and development, public works, Municipal Court
and the office of the City Clerk.
A contract previously entered into by the City and currently
existing including, but not limited to, a term-and-supply contract,
an annual contract, a maintenance contract and a warranty contract.
A competitive bid which must be submitted in response to
an advertised request in a prescribed format pursuant to applicable
instructions, including typically that the bid be submitted in a sealed
envelope to be opened in public at a specified time.
A product, material or service.
The sale of an item of property in a market in which any
buyer or seller may trade and in which prices and product availability
are determined by free competition.
The value of an item to be purchased or sold, to be determined
in the first (1st) instance by the department director.
Purchasing, renting, leasing or otherwise acquiring any supplies,
services, property or construction, including performance of any necessary
functions such as writing specifications, selection and solicitation
of sources, preparation and award of contract and contract administration.
An offer to make a contract between the City and a vendor.
The contract is not binding until it is accepted by the vendor.
A statement of price, terms of sale and description of property,
goods or services offered by a vendor to a prospective purchaser by
digital communication, letter, fax, telephone or other means of communication.
A quotation (or "quote") is not required to be in writing from the
vendor; however, some written memorandum of the elements listed above
must be maintained.
An internal document by which a department sends details
of supplies, services or material required to the Finance Department,
including documentation of authority to commit funds for the purchase.
A detailed description of the tasks to be performed.
A description of the physical or functional characteristics
or the nature of a supply, service, property or construction item;
the requirements to be satisfied by a product or process; indicating,
if appropriate, the procedures to determine whether the requirements
are satisfied and/or the capabilities and performance characteristics
that the item must satisfy.
[Ord. No. 12-015 §1, 3-19-2012]
A.
The City Administrator shall have the discretion to direct payment of an invoice so long as the transaction was approved in compliance with Section 140.030. Any other invoice shall require review and approval by the Board of Aldermen prior to payment.
B.
At
each regularly scheduled Board of Aldermen meeting, the City Administrator
shall provide a copy of all invoices which have been received since
the previous regular Board of Aldermen meeting.
[Ord. No. 12-015 §1, 3-19-2012]
A.
General Guidelines.
1.
Buying preferences. It is the desire of the City
to purchase from City of Ozark, Missouri, and/or American vendors
whenever possible. When all other factors are equal, preference shall
be provided to City of Ozark vendors first (1st), Missouri vendors
second (2nd) and American vendors third (3rd). To be considered a
City of Ozark vendor, the person or entity must have a physical place
of business located in the City and a City business registration.
To be considered a Missouri vendor, the person or entity must have
a physical place of business in the State and authority to conduct
business in the State. To be considered an American vendor, the person
or entity must have a physical place of business in the country and
authority to conduct business in the country.
2.
Recycled products. The City shall purchase recycled-content
products in preference to those made from virgin materials when cost,
quality, variety, quantity, delivery time and any other defined specifications
are comparable to products made from virgin materials.
3.
Planning. Small orders and last-minute purchases
should be minimized, thereby increasing the capability of each department
to purchase its goods and services in larger quantities in order to
obtain the maximum discounts possible.
4.
Buying proper quality. It is the duty of the requisitioning
department to secure the best quality for the purpose intended. "Quality
buying" is the buying of goods or services that will meet or exceed
the requirements for which they are intended.
5.
Sales tax. The City is generally exempt from paying
local and State sales taxes and Federal excise taxes. The Finance
Department can provide the necessary exemption documents to any vendor
upon request.
6.
Endorsements. It is the policy of the City not to
endorse or in any way permit an employee's name, position or the City's
name to be used and advertised as supporting a product or vendor.
7.
Personal purchases. Purchases for employees' personal
use by the City are prohibited. City employees are also prohibited
from using the City's name or the employee's position to obtain special
consideration in personal purchases.
8.
Lowest responsible bidder. Contracts for purchases
shall be awarded to the lowest and best bidder. In determining the
"lowest responsible bidder", in addition to price, the City will consider,
when applicable, the following:
a.
The ability, capacity and skill of the bidder to perform the contract
or provide the service required.
b.
Whether the bidder can perform the contract or provide the service
promptly or within the time specified without delay or interference.
c.
The character, integrity, reputation, judgment, experience and efficiency
of the bidder.
d.
The quality of performance of previous contracts or services.
e.
The previous and existing compliance by the bidder with applicable
laws.
f.
The sufficiency of the financial resources and ability of the bidder
to perform the contract or provide the service.
g.
The quality, availability and adaptability of the supplies or contractual
services to the particular use required.
h.
The ability of the bidder to provide future maintenance and service
for the use of the subject of the contract.
i.
The number and scope of conditions attached to the bid.
j.
Any other pertinent factor.
B.
Purchasing Procedures For Materials And Supplies. Purchases
for all dollar amounts listed below shall require the requisition
and approval of a purchase order.
1.
Purchases with material value below one thousand dollars ($1,000.00)
within total budget may be made by an authorized purchaser without
a quotation.
2.
Purchases with material value from one thousand dollars one cent
($1,000.01) to five thousand dollars ($5,000.00) within total budget
and not available through an existing purchasing contract or a cooperative
purchasing agreement may be made by an authorized purchaser. Prior
to placing an order, the authorized purchaser should obtain the lowest
cost through quotations whenever reasonably possible. Any requisition
must be signed by the authorized purchaser and submitted, along with
a record of the quotations, to the Finance Department for issuance
of a purchase order.
3.
Purchases with material value from five thousand dollars one cent
($5,000.01) to twenty thousand dollars ($20,000.00) within total budget
and not available through an existing purchasing contract or a cooperative
purchasing agreement may be ordered by the authorized purchaser with
the approval of the Director of the Department or the City Administrator.
Such purchase must have at least three (3) quotations. Any requisition
must be signed by the authorized purchaser, the Director of the Department
or the City Administrator and submitted, along with a record of the
quotations, to the Finance Department for issuance of a purchase order.
4.
Purchases with material value greater than twenty thousand dollars
one cent ($20,000.01) within total budget and not available through
an existing purchasing contract or a cooperative purchasing agreement
may be ordered by the Department Director with the approval of the
City Administrator and/or Director of Finance. For any such purchase,
a formal written bid must be advertised once a week on the same day
for two (2) consecutive weeks in a written and/or electronic publication
of general circulation. Any purchase request having a value greater
than twenty thousand dollars one cent ($20,000.01) that is outside
the total budget may be ordered only after formal written bid, advertised
once a week on the same day for two (2) consecutive weeks in a written
and/or electronic publication of general circulation and formal approval
by a majority of the Board of Aldermen. Purchases with material value
greater than twenty thousand dollars one cent ($20,000.01) within
total budget and available through an existing purchasing contract
or a cooperative purchasing agreement may be ordered by the Department
Director with the approval of the City Administrator and/or Director
of Finance.
5.
The City Administrator shall have the authority to approve purchases
of less than twenty thousand dollars ($20,000.00) which require the
transfer of funds from one budgetary line item to another within the
same department and/or fund as long as the expenditure is within the
total budget.
6.
Multiple or repeat orders. Multiple or repeat orders
from the same vendor during any consecutive five (5) business days
cannot be used to avoid the requisite approvals for the total purchase
amount.
7.
Special circumstances. On purchases of less than
twenty thousand dollars ($20,000.00), if less than three (3) quotations
are received and the quotations all exceed the amount budgeted for
the purchase, departments should either request new quotations for
the desired goods or services or obtain approval from the City Administrator
to proceed based on the initial quotation(s) on the grounds that special
circumstances exist such that requests for new quotations would not
generate a different result. Such special circumstances should be
explained by the Department Director in a written memorandum accompanying
the purchase order.
8.
Exempt purchases. The following purchases, by their
very nature, are exempt from the normal purchasing guidelines and
require the special procurement practices set forth below:
C.
Change Orders.
1.
Construction change orders approved by City Administrator. The City Administrator is authorized to approve change orders so
long as the amount of the change order does not cause the project
to exceed the total budget amount, the approved project cost or the
available bond proceeds, whichever is greater.
2.
Construction change orders approved by the Board of Aldermen. In the event a construction change order contains costs in an amount
that exceeds the authorization of the City Administrator, the change
order must go to the Board of Aldermen for approval. In the event
change orders on a single contract accumulate to an amount in excess
of the City Administrator's authorization, all subsequent change orders,
regardless of amount, must go to the Board of Aldermen for approval.
3.
Changes to purchase orders. Change orders to purchase
orders are only allowed if the change is in the cost of the item being
purchased. No change orders are allowed for changes in quantity or
scope of the original purchase order. Changes in quantity or scope
are to be purchased with separate purchase order numbers unless the
City Administrator or his/her designee authorizes the amendment of
an existing purchase order. When the cost of an item changes the approval
requirements, a new purchase order will be requested following the
appropriate purchase procedures.
D.
Fuel Purchases. Bulk fuel purchases for vehicles may be
made without approval of a purchase order, provided that three (3)
quotes are obtained and the lowest cost vendor is selected. To the
extent vehicles cannot be fueled through the City's bulk-purchasing
program, purchases may be made at any commercial service station,
although price shopping is still encouraged. Documentation of the
purchase shall be submitted.
E.
Cooperative Agreements.
1.
The City may contract directly with other governmental entities (political
subdivisions or municipalities, County, State or Federal) for the
purchase of items or the providing or receipt of services. If such
contract occurs, each such contract must be, in writing, and signed
by the City Administrator prior to the acquisition of the products
or provision or receipt of services. The City may also participate
in, sponsor, conduct or administer a cooperative-purchasing agreement
whereby items are procured in accordance with a contract established
by another governmental entity provided that such contract was established
in accordance with the laws and regulations applicable to the establishing
governmental entity.
[Ord. No. 15-042 §1, 9-21-2015]
2.
The City Clerk shall make available to Department Directors and authorized
purchasers a list of cooperative-purchasing programs in which the
City will participate. The City Clerk shall be responsible for notifying
the Departments of current approved cooperative-purchasing agreements
and any limitation or special requirements for their use.
3.
The City Administrator will review and approve all cooperative-purchasing
agreements with other governmental agencies with material value under
twenty thousand dollars ($20,000.00) prior to their use. The Board
of Aldermen shall review and approve cooperative-purchasing agreements
with material value of twenty thousand dollars ($20,000.00) or more.
Competitive-bidding procedures do not apply to such purchases made
through approved cooperative-purchasing agreements.
4.
"Acceptable cooperative-purchasing agreements" are
agreements which contain the same terms, conditions, specifications
and pricing for the respective item that the department would bid
and purchase on their own.
5.
Additional Board of Aldermen approval shall not be required for the
purchase of any budgeted items from approved "acceptable cooperative-purchasing
agreements".
F.
Term-And-Supply And Annual Contracts Open Purchase Orders.
1.
Term-and-supply contracts and annual contracts shall be bid through
each department following the same procedures established by this
policy for other purchases based upon the estimated material value
of a contract. The department requesting the service shall prepare
a recommendation of award for the Board of Aldermen approval for all
term-and-supply and annual contracts with material value of twenty
thousand dollars ($20,000.00) or more based upon the annual value
of the contract. All multiple-year contracts should contain a clause
explaining that the obligation of the City to pay for goods and/or
services under the contract is limited to payment from available revenues
and shall constitute a current expense of the City and shall not in
any way be construed to be a debt of the City in contravention of
any applicable constitutional or statutory limitations or requirements
concerning the creation of indebtedness by the City nor shall anything
contained in the contract constitute a pledge of the general tax revenues,
funds or monies of the City and all provisions of the contract shall
be construed so as to give effect to such intent.
2.
Once such a contract is approved, specific purchases within budget
should be made on an "as-needed" basis without further bidding while
the contract remains open, unless and until the City terminates the
contract. Any department that believes such a contract is no longer
competitive should provide such information to the City Clerk.
G.
Professional Services Contracts.
1.
Contracts for professional services provided by legal counsel, financial
advisors, physicians, certified public accountants, engineers, architects,
land surveyors, brokers, consultants and other specialized or technical
services shall be obtained through the special procurement procedures
set forth in this Section.
2.
Requests for qualifications for professional services shall be submitted
to the City Administrator, Administrative Projects Director or other
appropriate Department Director as assigned by the City Administrator
for review and approval prior to distribution. When an RFQ for professional
services is approved, a number of qualified professionals will be
invited to submit a proposal setting forth their interest, qualifications
and description of proposed services. The selection committee will
then proceed with the necessary stages of the selection process including,
but not limited to, development of a selection committee, grading
of proposals based upon fair and equitable grading criteria, ranking
of interviews based upon fair and equitable criteria and negotiation
of a contract with the professionals deemed to best meet the City's
needs.
3.
Unless otherwise required by State Statute and upon approval of the
City Administrator, professional services contracts under twenty thousand
dollars ($20,000.00) annually may be exempt from the request for qualifications
process.
4.
Professional services contracts for twenty thousand dollars ($20,000.00)
or more annually must be approved by the Board of Aldermen.
H.
Emergency Purchases. In case of an emergency which requires
immediate purchase of supplies or services, the City Administrator
may authorize such purchase or secure such services needed without
complying with the procedures as set out above. Department directors
faced with an emergency purchase need shall notify the City Administrator
as soon as possible. When possible (if purchase is greater than twenty
thousand dollars ($20,000.00)) in such an emergency, the City Administrator
shall seek approval from the Board of Aldermen at a special or regular
meeting prior to the purchase. If a timely special or regular meeting
of the Board of Aldermen is not possible, a full report of such an
emergency purchase shall be made by the City Administrator to the
Board of Aldermen as soon as possible.
I.
Sole-Source And Monopoly Purchases.
1.
The City Administrator or a Department Director may authorize a sole-source purchase, at any monetary purchasing level set forth in Section 140.030(B) above and accordingly waive competitive-purchasing procedures, when such a request is presented in writing by the requesting authorized purchaser with the requisition, documenting that only a single feasible procurement source exists. A single feasible sole source exists when:
a.
Supplies or services are proprietary and only available from a single
manufacturer or a single distributor; or
b.
It is determined that only one (1) distributor services the region;
or
c.
When supplies or services are available at a significant discount
from a single distributor for a limited period of time; or
d.
When a project with specific circumstances requires specialized consultant
or technical services with a unique combination of abilities or expertise.
2.
In the event the amount of a sole-source purchase will exceed twenty
thousand dollars ($20,000.00), it must also be approved in advance
by the City Administrator and must be approved by the Board of Aldermen.
J.
Lease Of Real Property.
1.
The City may lease real property that it owns for fair market value,
if authorized by the Board of Aldermen when such property is currently
underutilized, in order to maximize the economic return of the property
to the City until such time as such property shall be required for
public usage.
2.
Nothing herein shall prevent the City Administrator or designated
representative from negotiating a higher rent for a lessee of any
real property that is shown to have a unique value to such lessee
due to its configuration, accessibility or size, subject to approval
from the Board of Aldermen.
K.
L.
Declaration And Disposal Of Surplus Goods And Real Property.
[Ord. No. 22-029, 6-20-2022; Ord. No. 23-058, 8-21-2023]
1.
Surplus Real Property.
a.
By February 1 annually, the City Administrator shall bring forward an ordinance to the Board of Aldermen listing all City-owned property deemed to be surplus property ready for disposal following the process set forth in Subsection (L)(1)(b). Factors to consider when deeming property surplus, include, but are not limited to:
b.
Upon passage of an ordinance by the Board of Aldermen authorizing
the disposal of surplus property for, at a minimum, fair market value,
the City shall cause said property to be sold as follows:
(1)
Notice shall be given that the City shall accept sealed bids
for the purchase of surplus real property parcels no less than sixty
(60) days prior to the scheduled bid opening. The notice shall include
the fair market value of the property. Notice shall be made as follows:
(2)
The City shall enter into a real estate contract with the highest
bidder for the purchase of surplus real property.
2.
Disposal Of Surplus Goods. All surplus goods of the City shall be
declared surplus by the department director from which the surplus
goods originate with the approval of the City Administrator. The City
should promptly dispose of all surplus property to the economic advantage
of the City. Competitive bidding on surplus, obsolete or unusable
goods is required through sealed bids, auction, open market sales
or other available means. Advertisement of the surplus goods shall
be made on the City website and shall include a link to any website
utilized for the sale of said surplus goods. The disposal of all such
goods requires the approval of the City Administrator; additional
approval by the Board of Aldermen is required for goods in excess
of twenty thousand dollars ($20,000.00) in total material value. Trade-in
opportunities should be pursued when available to reduce the City's
purchasing costs. Competitive bidding shall only apply to a trade-in
to the extent it applies to the new purchase. Approvals of a trade-in
shall be handled in conjunction with the approval of the new purchase
as dictated by the purchase price. The City Administrator is hereby
authorized to dispose of any surplus property by transfer to any governmental
agency within the State of Missouri regardless of the value of the
surplus property.
M.
Purchasing Policy Supplements. In the event a specific procurement
procedure is required to be in writing when the City is purchasing
an item which is funded in whole or in part by grant funds, (i.e.,
CDBG), the City Administrator shall have the authority to supplement
this Section to incorporate the special requirements of that procurement.
[Ord. No. 22-029, 6-20-2022]
N.
Policy Clarification. The City Administrator may clarify
the provisions of this Section in furtherance of the stated goals
of this Section by written statement, provided the City Administrator
cannot alter in any way the extent to which Board of Aldermen action
is required hereunder.
[Ord. No. 22-029, 6-20-2022]
[Ord. No. 12-015 §1, 3-19-2012]
A.
Purchase Orders.
1.
After approval of a requisition, the City purchase order form will
be completed by the Accounts Payable Clerk. In order to insure expeditious
processing of purchase orders, it is important that the requisition
be completed accurately by the requisitioning department. When applicable,
a copy of the Board of Aldermen approval action, the City Administrator's
approval action, the Department Director's approval action and bid
or quotation documents shall be attached to the requisition.
2.
The issuance of purchase orders or direct purchases by unauthorized
individuals or any other unauthorized purchase (including, but not
limited to, personal expenses) will not be recognized by the City
and payment for these obligations will not be approved. Purchase orders
in excess of five thousand dollars ($5,000.00) must be signed by the
Department Director or the City Administrator.
3.
The purchase order will consist of three (3) copies; one (1) copy
will remain in the Finance Department (attached to the requisition)
and two (2) copies will be returned to the requisitioning department.
4.
Purchase orders are classified as either "original" or "confirming"
based on whether or not the vendor has previously been notified of
the City's intent to make the purchase of goods or services.
B.
Construction Contracts.
1.
Construction contracts supervised by City personnel shall be bid
through the City Clerk in accordance with the procedures established
for other purchases according to the applicable price range and specifications
shall be prepared by the appropriate department and submitted to the
City Clerk for posting as prescribed by State Statute.
2.
Bid specifications and requirements for construction contracts supervised
by outside consulting services shall be prepared in coordination with
the Public Works Department. A bid package shall be reviewed by the
Public Works Department and approved by the Department Director or
designated representative. The consultant, as determined by the Public
Works Department and the Department Director or designated representative,
shall distribute the bid package to the City Clerk for posting and
distribution to interested bidders. The City Clerk shall receive,
record and tabulate the bids and shall certify that bids were opened
in compliance with all purchasing policy requirements. The final award
of the bid shall be communicated to the successful bidder by the City
Clerk.
3.
All required performance and/or bid bonds must be obtained and documented
prior to the award of the contract.
C.
Product Testing/Demonstrations.
1.
Product demonstrations may be held as deemed appropriate by a department
director without prior approval of the Finance Department.
2.
Prior to taking into the City's possession any item for testing or
evaluation, departments shall contact the City Administrator for approval.
The department shall notify the vendor in writing that the City has
taken the item into possession for test purposes only and if a purchasing
decision is made, that decision will be communicated directly to the
vendor at the end of the test period. In no event shall the retention
of a test item by the City be evidence of intent to purchase said
item.
D.
General Instructions For Bid Specifications.
1.
General specifications.
a.
Keep specifications as simple as possible while maintaining the exactness
required insuring bidders provide the quality goods or services as
required by specifications.
b.
Whenever possible, identify the equipment or material required with
some name brand or known standard specifications already on the market.
c.
Specifications should promote competition. Justification must be
provided to the City Administrator for restrictive specifications.
d.
Flexibility in the specifications is desirable in instances where
new terminologies are being sought. Specifications should be specific
enough to guarantee the quality required but sufficiently flexible
to allow vendors to be creative in their proposals.
e.
Specifications should be written with clear, simple language.
f.
Bid specifications and requirements shall be prepared by the Department
Director. The bid packet should be submitted to the City Clerk with
all specifications, date of opening, award dates, requirements for
potential bidders and names and addresses or known interested bidders
to receive bid notices. The City Clerk shall be responsible for posting
notice of bids, opening and recording of bids received and reporting
to the City Administrator and the Board of Aldermen the bids received
as well as the staff's recommendation as to the award of the bid.
2.
Types of specifications. There are several ways
of structuring specifications to protect the integrity of the purchasing
process and to insure that the needs of the City are met. Different
methods of structuring specifications include:
a.
Qualified products or acceptable brands list. These
lists are developed only where it is not possible to write specifications
adequate to identify the quality and performance required of the goods
or services to be purchased. Acceptable brands lists are also used
when tests that would be necessary to determine compliance with technical
specifications are lengthy, costly or require complicated technical
equipment.
b.
Specifications by brand or trade name. Brand or
trade names should be used where brand name products have been found
to be superior to others for the purpose intended.
c.
Specifications by blueprint or dimension sheet. Specifications
of construction projects for everything from buildings and streets
to custom-built cabinets, furniture, machines or other equipment should
be written to reference the blueprints or dimension sheets prepared
by the engineer or architect.
d.
Specifications by chemical analysis or physical properties. Specifications which include the chemical analysis or physical properties
of the goods, when clearly requested, place responsibility on the
supplier to provide exactly those items requested.
e.
Specifications by performance, purpose or use. Specifications
which include a set of performance criteria for the goods or services
required will provide flexibility for vendors to design products or
programs specifically aimed at meeting such criteria.
f.
Specification by identification with industry standards. Specifications will often refer to industry-wide standards or to
standards set by other public jurisdictions.
g.
Specifications by samples. Whenever appropriate,
a sample is always a good way to make requirements perfectly clear.
3.
Delivery and performance guidelines. A contract
or purchase order that is complete in all respects and that is accepted
by the parties concerned still must produce the intended results or
objectives before it can be considered a successful or completed purchase,
The terms and conditions must clearly define the delivery and performance
requirements of the services, supplies or equipment.
a.
Follow-up and expediting. Follow-up normally applies
to the monitoring of the delivery schedules to assure compliance.
Expediting, in the purest sense, involves an attempt to improve or
to reduce the contractually stipulated delivery time for various reasons
and the vendor is not legally obligated to comply. The primary objectives
of the follow-up function are:
(1)
To assure full compliance by the vendor; and
(2)
To develop documentation for future evaluation of the vendor's
performance;
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If delivery problems develop, there are certain techniques that
may be used to help solve them:
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a.
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Contact the salesman for assistance;
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b.
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Initiate collect phone calls; letters may also be used;
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c.
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Visit the vendor's plant. This might help solve the problem
and will assist in verifying any reason for the delay;
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d.
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Cancel the contract for non-performance.
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Prior to the cancellation, authorization from the Director of
Finance or City Administrator must be obtained.
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4.
Delinquent deliveries. When follow-up efforts have
failed and the deliveries have become delinquent, one (1) of two (2)
actions must be taken:
a.
Authorize additional time for delivery; or
b.
Cancel and order from other sources.
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Prior to cancellation, authorization from the Director of Finance
or City Administrator must be obtained. In all cases, the reasons
for delinquent deliveries should be documented. This information may
be needed in evaluating future bids submitted by that particular vendor.
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5.
Partial deliveries. Some purchase orders may list
several items. If these items can be used separately, partial payments
can and should be authorized. However, if the separate items are part
of a system, then partial deliveries should not be authorized.
6.
Substitution. To meet the contractual delivery schedule,
it may be appropriate in some situations to consider substitute items.
The specifications may cover such a possibility.
Whenever substitutions are necessary due to shortcomings of
the vendor, it is the responsibility of the purchaser to seek and
obtain an adjustment for lower prices on the substituted items.
7.
Non-performance. Should the vendor fail to meet
any requirements of the specifications, the vendor can be cited for
non-performance. Recourse could include:
a.
The City may exercise its rights under a liquidated-damages clause
or under the terms of a performance bond.
b.
The City may obtain the needed items from another source and charge
delinquent vendor the excess difference in cost.
c.
The City may terminate the contract for default if it is in the best
interest of the City and items can be obtained under more favorable
conditions from other sources.
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Any such action should be approved by the Finance Director or
the City Administrator.
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8.
Inspection and testing guidelines. Goods and materials
should be checked at the time of receipt to detect any damage or defects.
Inspection and testing may be performed at origin or destination.
a.
Reports, rejection and return authorization. Whenever
an inspection is performed, all reports to properly support claims
or actions must be thoroughly documented. A copy of the inspection
report will normally be used to substantiate payment for the goods
and verification of receipt. In the event of rejection, for whatever
purpose, certain steps must be taken to inform and protect the rights
of the vendor as well as the City. Reasons for rejection must be listed
and these reasons should reference specific requirements of the contract.
b.
Damage during shipment. It is important that all
damage be completely described on the receiving report. Any evidence
of concealed damage should be noted at this time. The carrier should
be notified immediately and a joint inspection should be scheduled
with the carrier's representative. When it is apparent that the extent
of the damage causes the goods to be worthless, they should not be
accepted.
c.
Latent defects. Latent defects may be the result
of damages in transit or of failure of the manufacturer to conform
to specifications. If specific liability for the defect cannot be
determined between the carrier, the vendor or the manufacturer, the
City may have to file a claim against all parties seeking their cooperation
in resolving the situation.
9.
Invoices. Vendors are to be instructed to send all
original invoices to the City of Ozark, Accounts Payable Department,
P.O. Box 295, Ozark, Missouri 65721-0295.
10.
Purchases supported by grant funds. Departments
shall review all requirements for grant funds used in the procurement
of items to insure the bidding process required as a condition to
receiving said grant funds is complied with during the procurement
of the item. The Finance Department will assist in the inclusion of
all required procedures that are in addition to the requirements of
the policy.
11.
Delivery of items. When items are delivered to City
departments, the only paperwork to be signed is the delivery notice.
Any other vendor purchase order, document, contract, warranty, maintenance
agreement, etc., is not to be signed at delivery. All such documents
shall be forwarded to the Accounts Payable Section or retained by
the appropriate department.
E.
Disputes, Adjustments And Appeals.
1.
Departments shall notify the Finance Department in a timely manner
concerning any complaint or dispute regarding an order, delivery,
specification, defective goods or poor performance by a supplier.
Any decision concerning an attempt to cancel a contract or an attempt
to resolve a dispute regarding defective products or unacceptable
services shall be made jointly by the Finance Department and the department
director. Any correspondence with suppliers shall be made available
to both the department director and the Director of Finance.
2.
In the event a procurement dispute arises between the requesting
department and the Finance Department, the City Administrator shall
make the final decision.
F.
Compliance With Applicable Law. All transactions shall be
made in compliance with applicable law, including, but not limited
to, the City's Code and ordinances and also State laws governing such
issues as guaranteed energy cost savings contracts (Section 8.231,
RSMo.), buying preferences (Sections 34.073 et seq., RSMo.), health
insurance (Section 67.150, RSMo.), transactions with Federal and State
Government (Sections 70.100 et seq., RSMo.), special assessment sidewalks
(Sections 88.880 et seq., RSMo.), solid waste (Section 260.208, RSMo.)
and prevailing wage on public works projects (Section 290.250, RSMo.).
Before commencing efforts regarding a transaction involving an unfamiliar
subject area, a determination should be made as to whether a consultation
with the City Attorney is necessary.