[Ord. 1184, 9/10/1987, Section 1]
a.
Purpose. The purpose of this Ordinance shall be to establish procedures
for the purchase of products, goods and services, the making of contracts,
and the sale or lease of personal or real property of the Municipality.
Procedures shall include negotiated contracts, competitive bidding,
controls on aggregate spending and safeguards against special interests.
b.
Functions. The purchasing functions shall include the:
(1)
Procurement of the highest quality in supplies, materials, equipment
and contractual services meeting specifications at the least expense
to the Municipality.
(2)
Encouragement of open, competitive pricing.
(3)
Encouragement of savings or cost avoidance through bulk or quantity
purchasing.
(4)
Maintenance of lists of vendors and contractors.
(5)
Assurance of vendor and contractor compliance with Municipal
specifications and contract terms and provisions.
(6)
Administration of a system of stocking or warehousing of materials
and supplies for day-to-day use.
[Ord. 1184, 9/10/1987, Section 2]
As used in this Ordinance, these words and terms shall have
the following meanings:
The maximum amount of any purchase or contract above which
the purchase or contract must be approved by Council. The Bid Limit
is determined annually as follows:
The Base Value is $25,000 as adopted by Council on May 2,
2005. Adjustments to the base value will be calculated annually on
January 2 based on the change in the Municipal Cost Index as published
by American City and County Magazine from the base date of April 30,
2005, to November 30 of the year preceding the bid limit calculation.
If the index would result in a negative adjustment, no adjustment
will be made. The calculated amount will be rounded to the nearest
$500, with the result being the Bid Limit in effect until the following
January 2.
[Added by Ord. No. 2195, 12/19/2022]
The State College Municipal Council, as provided for in the
Home Rule Charter of the Municipality.
The Charter of the Municipality, as approved by electors
of State College, 1973, with amendments, if any, thereafter lawfully
adopted and approved.
The municipal Manager, as provided for in the Home Rule Charter
of the Municipality.
The Borough of State College, Pennsylvania.
Any natural person, partnership, association, firm, corporation,
governmental body or agency or other entity.
The State College Borough Manager or their designee.
[Amended by Ord. No. 2195, 12/19/2022]
A business entity or individual who has the capability and
financial and technical capacity to perform the requirements of the
solicitation and subsequent contract.
[Amended by Ord. No. 2195, 12/19/2022]
A bid or proposal that fully conforms in all material respect
to the Invitation for Bids {IFB)/Request for Proposals (RFP) and all
its requirements, including all form and substance.
[Added by Ord. No. 2195, 12/19/2022]
[Ord. 1184, 9/10/1987, Section 3; amended by Ord. 1293, 10/17/1990,
Section 1; Ord. 1664, 5/21/2001; Ord. 1812, 5/2/2005; Ord. 1856, 11/20/2006,
Section 1 and 2; Ord. No. 2195, 12/19/2022]
Competitive bidding shall be required on all contracts for equipment, services and construction with an estimated value in excess of the Bid Limit, except as indicated in Sections 1404 and 1405 of this chapter. The following provisions shall apply to competitive bidding:
a.
Notice to Prospective Bidders. Notice of the desire of the Municipality
to receive bids from contractors or vendors shall be given as follows:
(1)
By advertisement at least two times at intervals of not less
than three days in at least one newspaper of general circulation in
the Municipality. The first advertisement shall be published not more
than 45 days and the second advertisement not less than 10 days prior
to the date filed for the opening of bids. This advertisement shall
include a general description of the supplies, materials, equipment
and contractual services to be purchased, a statement as to where
bid forms and specifications may be secured and the time and place
for the opening of bids.
(2)
At the discretion of the Purchasing Authority, additional notice
may be given in any publication or journal devoted to the dissemination
of information about construction, materials and supplies.
(3)
The Purchasing Authority may also solicit bids from prospective
vendors and contractors by mailing copies of the specifications and
forms and/or any other information which will acquaint them with the
proposed purchase or contract.
(4)
By posting the advertisement in a conspicuous place within the
municipal offices.
b.
Specifications for Bidders. When bids are sought for the erection,
construction or alteration of any public building or facility, the
Purchasing Authority may have separate specifications prepared for
any one or more of the phases, parts, sections or internal or external
systems of the work and, when this is done, separate bids may be required
for each of those parts of the work. The contract may be awarded to
the lowest responsible bidder for each of those branches or parts
or on the basis of the lowest total price.
c.
Bid Security. When it shall be deemed necessary to protect the interests
of the Municipality, bid security shall be required. The amount of
security required shall be set forth in the bid specifications. Bid
security may be in the form of a certified check, cashiers check or
bid bond. If a bid bond is submitted, it must be in a form approved
by the Purchasing Authority.
d.
Submission, Acceptance and Opening of Bids. Bids shall be sealed,
shall be identified as bids on the envelope, shall be submitted at
the place of opening no later than the time stated in the public notice
inviting bids and shall be opened by the Purchasing Authority at a
public meeting at the time and place stated in the public notice.
Bids received after the stated time shall not be accepted.
In certain instances when specified in the invitation to bid,
the Borough will permit the electronic submission of bids. The Borough
will maintain the confidentiality of these bids until the date and
time of the bid opening. All bids submitted electronically must be
received by the Borough by the date and time and at the e-mail address
specified in the public notice. Electronic bids received after the
stated time shall not be accepted.
e.
Award of Contracts. Contract awards by Council shall be made at an
advertised public meeting. The following shall apply to Council awards:
(1)
Awards shall normally be made to the lowest responsible bidder.
However, Council, upon recommendation of the Purchasing Authority,
shall have the right to take into consideration such other factors
as delivery date, quality of service, length of warranty, etc.
(2)
Council shall have the authority to waive minor irregularities
and defects when the best interests of the Borough would be served.
(3)
Council shall have the authority to accept or reject any and/or
all bids or to hold all bids for 45 days or until the next regular
Council meeting.
(4)
If two or more of the lowest bids received from responsible
bidders are for the same total amount or unit prices and the quality,
delivery date and service capability are equal, the contract may be
awarded to the bidder with business offices in the Borough or as an
alternative, the Purchasing Authority may break ties by requesting
each of the equal low bidders to submit, in writing, their lowest
and final bid. Said bids shall be opened in public and each of the
bidders shall be informed of the time and place of said opening.
(5)
A tabulation of bids shall be made available for public inspection.
f.
Exceptions. Contracts or purchases made by the Municipality involving
an expenditure in excess of the Bid Limit to which this Ordinance
shall not apply, unless the Council shall otherwise direct in a specific
instance, shall include:
(1)
Those for maintenance, repair or replacement of the public works
of the Municipality, provided they do not constitute new additions,
extensions or enlargements of existing facilities and equipment.
(2)
Those made for improvements, repairs and maintenance of any
kind made or provided by the Municipality through its employees, except
that all materials used for street construction, maintenance or improvement
in excess of the Bid Limit shall be subject to the provisions of this
Ordinance.
(3)
Those where particular types, models or pieces of new equipment,
articles, apparatus, vehicles or parts which are patented, manufactured
or copyrighted, cannot reasonably be acquired from more than one vendor.
(4)
Those involving any purchase of insurance or surety bond; those
made for public utility service under tariffs on file with the Pennsylvania
Public Utility Commission; those made with the federal government,
the Commonwealth of Pennsylvania or any subdivision thereof, including
the sale, lease or loan of any supplies, materials, equipment or services
by the Commonwealth, the federal government or their subdivisions.
The price charged to the Municipality shall not be in excess of that
fixed by the Commonwealth, the federal government or their subdivisions.
(5)
Those involving personal or professional services.
(6)
Those made for improvements, repairs and maintenance of any
kind of property of the Municipality for labor, materials or profits
and overhead, entered into with any organization which is engaged
in rehabilitative or job training programs and such organization receives
state or federal funding for such purposes.
(7)
Those cases, with Council approval, where the Purchasing Authority
deems it is in the best interest of the Municipality to purchase without
competitive bidding.
(8)
Those involving the purchase of equipment and services related
to computer software, technology, and information systems. The purchase
of equipment and services related to computer software, technology,
and information systems shall be made on the basis of best value procurement.
Contracts under best value procurement shall be made only after the
Borough has solicited proposals based on performance and outcome specifications
developed by the Borough and describing, at minimum, the objectives
to be met by the system, the tasks to be performed by the system,
the users of the system, system security issues, the time frame for
system implementation, potential operating technologies, compatibility
with existing systems, training and maintenance, and shall indicate
the process by which the contract shall be awarded. Best value procurement
shall not require a sealed bid process, and shall permit the Borough
to negotiate the terms of the agreement with any responsive and responsible
vendor. Any contract for the procurement of equipment and services
related to computer software, technology, or information systems in
excess of the Bid Limit shall be awarded by Borough Council at a public
meeting.
g.
Disposition of Bid Deposits.
(1)
The Municipality shall return to the unsuccessful bidders the
bid deposits submitted by them.
(2)
A successful bidder shall forfeit any deposit made by them,
upon failure on their part to enter into a contract with the Municipality
within 20 calendar days after award, unless an extended time is authorized,
in writing, by the Purchasing Authority.
h.
Piecemeal Contracts and Purchases Restricted. It shall be prohibited
for any officer or employee of the Municipality to purposely evade
use of the procedures for competitive bidding by making a series of
purchases or contracts, each under the minimum set out in § 1-1403
of Part N of this chapter or by making several simultaneous purchases
or contracts, each below that minimum amount.
i.
Contract Extensions. The Purchasing Authority may authorize change
orders and extend a contract if it is deemed in the best interest
of the Municipality. Such change orders or extensions shall be in
writing and shall not individually or jointly exceed 15% of the original
contract award. The Purchasing Authority may make purchases from any
contract awarded under § 1-1403 of Part N of this chapter
within eight months of the award.
j.
Performance Bonds. To protect the interests of the Municipality,
a 100% performance bond shall be required from the successful bidder
before entering into a construction contract.
The Purchasing Authority shall establish the percent of the
contract price required in the performance bond for purchase of materials,
supplies and equipment.
If the performance bond is not furnished within 20 days after
the award of the contract, the award shall be void. Deliveries, accomplishments
and guarantees may be required in all cases of expenditure.
k.
Bonds for the Protection of Labor and Materials. Any person entering
into a contract with the Municipality for the construction, erection,
installation, completion, alteration or repair of or alteration to
any public work or improvement whatsoever shall, before commencing
work under the contract, execute and deliver to the Municipality,
in addition to the performance bond, an additional bond, in a sum
not less than 50% and not more than 100%, as the Purchasing Authority
may prescribe, conditioned for the prompt payment of all material
furnished and labor supplied or performed in the prosecution of the
work, whether or not the material or labor entered into becomes component
parts of the work or improvement contemplated. This additional bond
shall be deposited with and held by the Municipality for the use of
any interested party. This bond shall provide that every person who,
whether as subcontractor or otherwise, has furnished material or supplied
or performed labor in the prosecution of the work, and who has not
been paid for it, may sue in assumpsit on this additional bond, for
their use, and prosecute the suit to final judgment for whatever sum
may be justly due them, and have execution thereof. The Municipality
shall not be liable for the payment of any costs or expenses of any
suit.
l.
Workers Compensation. Every contract entered into by the Municipality
which involves the construction or doing of any work involving the
employment of labor, shall contain a provision that the contractor
shall accept, insofar as the work covered by that contract is concerned,
the provisions of the Workers Compensation Act of 1915 and its supplements
and amendments, and that the contractor will insure their liability
under that Act or file, with the Municipality, a certificate of exemption
from insurance from the Bureau of Workers Compensation of the Pennsylvania
Department of Labor and Industry. Any contract executed in violation
of this section shall be null and void.
m.
Discrimination Prohibited.Any contract entered into by the Municipality
for the construction, alteration or repair of any public building
or public work must contain provisions by which the contractor agrees
that, in the hiring of employees for the performance of work under
the contract or any subcontract under it, no contractor or subcontractor
and no person acting on behalf of the contractor or subcontractor
shall, by reason of race, creed, color, sex, sexual orientation or
gender identity, discriminate against any person who is qualified
and available to perform the work to which the employment relates.
Violations of this provision by the contractor will constitute grounds
for terminating the contract.
n.
Competitive Electronic Auction Bidding.{795}
(1)
Conditions of use. Notwithstanding any other provision of this
ordinance concerning the requirements for competitive bidding for
purchases and contracts, if the Borough determines that use of competitive
electronic auction bidding is in the Borough's best interest, a contract
for supplies and services, but not for construction or design professional
services, may be entered into by competitive electronic auction bidding.
(2)
Invitation for bids. An invitation for bids shall be issued
and shall include a procurement description and all contractual terms,
whenever practical, and conditions applicable to the procurement,
including a notice that bids will be received in an electronic auction
manner.
(3)
Public Notice. Public notice and advertisement of the invitation
for bids shall be given in the same manner as provided in § 1-1403
of Part N of this chapter.
(4)
Auctions. Bids shall be accepted electronically at the time
and in the manner designated in the invitation for bids. During the
auction, each bidder shall have the capability to view their bid rank
or the low bid price. Bidders may reduce their bid prices during the
auction. At the conclusion of the auction, the record of the bid prices
received and the name of each bidder shall be open to public inspection.
(5)
Award of Contracts. Contract awards by Council shall be made
at an advertised public meeting. The following applies to Council
awards:
(a)
Awards shall normally be made to the lowest responsible bidder.
However, Council, upon recommendation of the Purchasing Authority,
may have the right to take into consideration such other factors as
delivery date, quality of service, length of warranty, etc.
(b)
Council shall have the authority to waive minor irregularities
and defects when the best interests of the Borough would be served.
(c)
Council shall have the authority to accept or reject any and/or
all bids or to hold all bids for 45 days or until the next regular
Council meeting.
(d)
A tabulation of bids shall be made available for public inspection.
[Ord. 1184, 9/10/1987, Section 4; amended by Ord. 1293, 10/17/1990,
Section 2; Ord. 1856, 11/20/2006, Section 3]
a.
All purchases of supplies, materials, equipment and contractual services
not made under the provisions of § 1-1403 of Part N of
this chapter shall be made, when feasible and when in the best interests
of the Municipality, in the open market without newspaper advertisement
and without observing the procedures prescribed for the receipt of
formal sealed bids and the award of contracts on those bids, in one
of the following manners: by written inquiry, telephone solicitation,
or competitive electronic auction bidding.
b.
Open market purchasing, wherever possible, shall be based on two
or more quotations and shall be awarded based on the lowest quotation
and most favorable delivery. In determining "lowest quotation," the
Purchasing Authority shall do so on the basis of the lowest quotation
meeting the specification or the description or the sample as set
forth in the price quotation request.
c.
The Purchasing Authority shall keep a record of all open market orders
and the quotations submitted in competition thereon for a minimum
of three years. Those records shall be open to public inspection during
normal business hours.
[Ord. 1184, 9/10/1987, Section 5]
In case of actual emergency and with the approval of the Purchasing
Authority, the head of any department or using agency may purchase
directly any supplies, materials and/or equipment, the immediate procurement
of which is essential to prevent delays in the work of the department
or using agency which might vitally affect the life, health, safety
and/or welfare of citizens. The head of the department or using agency,
after having made any emergency purchase, as authorized by this section,
shall submit to the Purchasing Authority, a record of the emergency
purchase together with a report of the circumstances of the emergency.
[Ord. 1184, 9/10/1987, Section 6]
The ordering department shall, through inspection, testing or
other means, certify to the Purchasing Authority the conformance of
all purchased goods, equipment, supplies and services with Borough
specifications and contract provisions with the specifications set
forth in the order of contract.
[Ord. 1184, 9/10/1987, Section 7]
The Purchasing Authority shall have authority to join with other
units of government in cooperative purchasing plans when the best
interests of the Municipality would be served.
[Ord. 1184, 9/10/1987, Section 8]
Council may authorize the disposition of real estate owned by
the Municipality in any of the following ways:
a.
The property may be sold to the highest bidder after notice in at
least one newspaper of general circulation in the Municipality, the
advertisement to give notice of the property to be disposed of, the
requirement for sealed bids and the time and place where the bids
are to be received and opened.
b.
The property may be sold to the highest bidder at public auction,
of which notice shall be given at least 30 days in advance of the
auction sale, in at least one newspaper of general circulation in
the Municipality.
c.
In the case of property needed by another unit of government, a municipal
authority, a council of governments or a similar agency, that property
may be disposed of upon recommendation of the Purchasing Authority,
on terms mutually agreeable to the Municipality and to the other unit
of government concerned. Sale of real property shall be announced
at a regular Council meeting.
[Ord. 1184, 9/10/1987, Section 9,{800} as amended by Ord.
1856, 11/20/2006, Section 4]
a.
All using agencies shall submit to the Purchasing Authority, at those
times and in whatever form prescribed, reports showing stocks of all
supplies, materials and equipment that are no longer used or that
have become obsolete, worn out or scrapped.
b.
The Purchasing Authority may transfer surplus supplies, materials
and equipment to other using agencies or may exchange or trade-in
such personal property for new supplies, materials and equipment or
may sell, on behalf of the Municipality, or may scrap personal property
which has become unsuitable for public use. The sale of personal property
shall be by written contract to the highest responsible bidder in
the manner specified in § 1-1408 of Part N of this chapter;
by public auction as specified in § 1-1408 of Part N of
this chapter; by open market sale in the manner specified in § 1-1404
of Part N of this chapter; or by competitive electronic auction bidding
as specified in § 1-1403 of Part N of this chapter, except
without newspaper advertisement and without observing the procedures
prescribed for the receipt of formal sealed bids and the award of
contracts on those bids for the disposition of personal property with
a value of the Bid Limit or less.
[Amended by Ord. No. 2195, 12/19/2022]
