Article XVIA Purchasing and Contracting

Whose response to a request for bids offers the lowest price and is responsive; and

RESPONSIBLE BIDDER OR VENDOR

Who is responsible.

Able to complete the contract in accordance with its requirements, including but not limited to requirements pertaining to experience, moral integrity, operating capacity, financial capacity, credit, and workforce, equipment, and facilities availability.

RESPONSIVE

Conforming in all material respects to the terms and conditions, specifications, legal requirements and other provisions of the request as determined by the city.

STATUTORY CONSTRUCTION

The provision of this Article shall be liberally construed to grant the municipality the greatest latitude authorized pursuant to the Local Public Contracts Law. Conflicts between this chapter and the Local Public Contracts Law shall be construed in favor of the Local Public Contracts Law.

USING AGENCY

Any department, agency, commission, board or other unit in the city government including the Boards of Police, Fire and Water.

VOLUNTARY USING AGENCY

Any autonomous unit in the city government which controls expenditures of funds appropriated to it by the city or other govern-mental unit.

Purchasing and contracting generally.

Reserved.

Contractors. Any person, business, corporation, partnership, bidder, government agency or their agents and assigns entering contracts with the City of Orange Township and owning real property located therein shall obtain a certification from the Director of Finance at the time of bidding or execution of contracts that their municipal property taxes and water and sewer charges are current. This provision is incorporated by reference into all bid specifications and conditions of sale promulgated by the city. Any person, business, corporation, partnership, bidder, government agency or their agents and assigns applying for certificates of habitability, permits or licenses for construction, demolition, electrical, plumbing or related work in the municipality shall obtain a certification from the Director of Finance that their municipal property taxes and water and sewer charges are current. Notwithstanding any laws or regulations to the contrary, these provisions are not exclusive and shall apply to all departments, divisions, agencies, boards and commissions of the City of Orange Township and shall be applicable to any person, business, corporation, partnership, bidder, government agency or their agents and assigns entering contracts, obtaining permits and licenses or otherwise doing business with the city.

Contracts awarded by Council. The Council shall, by resolution, establish the bid threshold, award contacts or reject bids for commodities, equipment and services priced over the limits set forth in N.J.S.A. 40A:11-3, Local Public Contracts Law, upon recommendation of the purchasing agent and pursuant to the requirements of the Local Public Contracts Law.

(4)

Mayor to execute contracts. The Mayor shall execute on behalf of the city, and the Clerk shall attest, all contracts and other legally binding obligations approved by the Council.

(5)

Supervision of Procurement Division of the Department of Finance; duties generally. The City Purchasing Agent shall be the head and have general supervision of the Procurement Division of the Department of Finance. He shall perform all duties required by law and shall have the powers and duties prescribed by this chapter. As a part thereof, he shall coordinate the central purchasing of municipal goods and services.

(6)

The City Purchasing Agent shall have civil service status and shall be appointed in the manner that all municipal employees are appointed.

(7)

The City Purchasing Agent shall give an official bond, approved as to form by the City Council, not less than fifty thousand dollars ($50,000.).

(8)

Scope of purchasing authority.

Purchase or contract.

[1]

The City Purchasing Agent shall have the power and it shall be his duty to purchase or contract for all goods and services needed by any using agency, for the internal management and operation of the Procurement Division of the Department of Finance. The Purchasing Agent is authorized to join with voluntary using agencies in cooperative purchasing plans and to delegate his rights to purchase to a voluntary using agency when the best interests of the city would be served thereby, provided that nothing herein shall prevent the Purchasing Agent from entering into cooperative purchasing plans and from delegating his rights to purchase to another governmental unit or independent governmental agency in accordance with state statutes when such an undertaking would be in the best interest of the city.

[2]

The Purchasing Agent is also authorized to enter into joint agreements with other federal, state or local governmental contracting units for the provision and performance of goods and services, if such an undertaking is determined to be in the best interest of the city upon approval by resolution of the Council.

Purchases by other officials. All purchases for all using agencies shall be made by the City Purchasing Agent, except that using agencies are authorized to make emergency purchases of goods and services in accordance with the provisions of Local Public Contracts Law and § 4-70.14 without regard to any restriction set forth in this chapter.

Unauthorized purchases. Except as provided in this Article, no city officer or employee shall order the purchase of any goods and services or make any contract within the purview of this Article other than through the Procurement Division of the Department of Finance. Unauthorized purchases of tangible goods shall be the responsibility of the employee who procured said goods and shall not bind the city.

(9)

Additional powers and duties. In addition to the purchasing authority conferred by this Article, the City Purchasing Agent shall:

Minimum expenditure. Act to procure for the city the highest quality in goods and services at least expense to the city.

Encourage competition. Discourage uniform bidding and endeavor to obtain as full and open competition as possible on all purchase of goods and services.

Rules and regulations. Subject to the approval of the Mayor and City Council, where applicable, establish and amend all rules and regulations authorized by this Article and all others necessary to its operation.

(d)

Purchasing analysis. Keep informed of current developments in the filed of purchasing, prices, market conditions and new products, and secure for the city the benefits of research done in the field of purchasing by other governmental jurisdictions, national technical societies, trade associations having national recognition and by private businesses and organizations.

(e)

Forms. Prescribe and maintain such forms as he shall find reasonably necessary to the operation of this Article.

(f)

Standard nomenclature. Prepare and adopt a standard purchasing nomenclature for using agencies and suppliers.

(g)

Vendors' catalog file. Prepare, adopt and maintain a vendors' catalog file. Such catalog shall be filed according to materials and shall contain descriptions of vendors, commodities, prices and discounts.

(h)

Bulk purchases. Exploit the possibilities of buying in bulk so as to take full advantage of discounts.

(i)

Federal tax exemptions. Act so as to procure for the city all federal tax exemptions to which it is entitled.

(j)

Cooperate with the Chief Financial Officer so as to secure for the city the maximum efficiency in budgeting and accounting.

Purchasing regulations.

Reserved.

§ 4-70.4 Gifts and rebates to city officers and employees.

Reserved.

§ 4-70.1 Requisition and estimates.

All using agencies, either by or with the authorization of the head of the department under which the using agency operates, shall file with the City Purchasing Agent detailed requisitions or estimates of their requirements in goods and services in such manner, at such time and for such future periods as the Purchasing Agent shall prescribe.

Unforeseen requirements. A using agency shall not be prevented from filing, in the same manner, with the Purchasing Agent, at any time, a requisition or estimate for any goods and services the need for which was not foreseen when the detailed estimates were filed.

Revision power of Purchasing Agent. The City Purchasing Agent shall examine each requisition or estimate and shall have the authority to revise it as to quantity, quality or estimated cost, but revision as to quality shall be in accordance with the standards and specifications established pursuant to this Article.

§ 4-70.2 Encumbrance of funds.

Except in cases of emergency, the City Purchasing Agent shall not issue any order for delivery on a contract or open market purchase until the Chief Financial Officer shall have certified, after preaudit, that there is to the credit of the using agencies concerned a sufficient unencumbered appropriation balance, in excess of all unpaid obligations, to defray the amount of such order.

§ 4-70.3 Conflicts of interest.

Any purchase order or contract within the purview of this Article in which the City Purchasing Agent or any officer or employee of the city is financially interested, directly or indirectly, shall be void.

The City Purchasing Agent and every officer and employee of the city are expressly prohibited from accepting, directly or indirectly, from any person, company, firm or corporation to which any purchase order or contract is or might be awarded, any rebate, gift, money or anything of value whatsoever, except where given for the use and benefit of the city, and no city officer or employee shall accept employment with any person, company, firm or corporation for the performance of work under any agreement with the city.

§ 4-70.5 Competitive contracting.

The Purchasing Agent is authorized to initiate competitive contracting for goods or services pursuant to N.J.S.A. 40A:11-9.

§ 4-70.6 Advertisements for bids.

Except as otherwise provided by the provisions of the Local Public Contracts Law, no contract shall be entered into by the city for doing of any work or for the furnishing of any materials, goods and services or labor or the hiring of teams or vehicles unless the city shall first publicly advertise for bids thereunder and the contract shall be awarded to the lowest responsible bidder who has submitted a responsive bid.

The Purchasing Agent shall be accorded authority to implement this section and negotiate and award contracts pursuant to the provisions of N.J.S.A. 40A:11-3 in accordance with bidding threshold set by the Governor of the State of New Jersey. However, nothing in this Article shall preclude the Council from establishing by resolution a bid threshold lower than the threshold set by the Governor. If Council so elects to establish a bid threshold lower than the aforementioned threshold set by the Governor, then the Purchasing Agent shall be bound by the threshold established by Council.

§ 4-70.7 Contents of advertisements for bids; publication.

All advertisements for bids shall be completed in accordance with the Local Public Contracts Law.

§ 4-70.8 Formal contract procedure.

All goods and services for which public bidding is required or undertaken pursuant to this Article shall be completed in accordance with the Local Public Contracts Law. Any formal contract as required under this section or the Local Public Contracts Law shall be executed by the Mayor and the City Clerk on behalf of the city, with the corporate seal affixed thereto.

Notice inviting bids. Notice inviting bids shall be in accord with the requirements of § 4-70.6 and shall include a general description of the articles to be sold.

Bidders' list. The City Purchasing Agent shall also solicit sealed bids from all responsible prospective suppliers who have requested their names to be added to a bidders' list, which the Purchasing Agent shall maintain, by sending them a copy of such newspaper notice or such other notice as will acquaint them with the proposed purchase or sale.

Bulletin board. The Purchasing Agent shall also advertise for bids by a notice posted on the public bulletin board in the City Hall.

Bid deposits. In accordance with the Local Public Contracts Law, bid deposits shall be prescribed in the public notices inviting bids. Unsuccessful bidders shall be entitled to return of deposit where the Agent has required such. A successful bidder shall forfeit any deposit required by the City Purchasing Agent upon failure on his part to enter a contract.

Bid opening procedure.

Presentation of sealed bids. Sealed bids shall be presented to and received by either the Purchasing Agent or the City Clerk, as designated in the bid specification, and at least one other city official or their authorized representatives. The time and place for receipt of sealed bids shall be specified in the advertisement for bids as approved by resolution of the Council.

Opening. Bids shall be received and opened in public at the time and place stated in the public notice and advertisement for bids.

Tabulation. A tabulation of all bids received shall be posted for public inspection.

Rejection of bids.

The Council shall have authority to reject any or all bids.

The Council may, by resolution approved by the majority of the governing body, disqualify a bidder who would otherwise be determined to be the lowest responsible bidder, if the governing body finds that it has had prior negative experience with the bidder as defined by the Local Public Contracts Law. The decision to disqualify shall be made within the discretion of Council in the best interests of the city.

This section shall be construed to grant Council any and all authority it may have to reject bids under the Local Public Contracts Law or other applicable statute.

Award of contract.

Lowest responsible bidder. Contracts shall be awarded by the Council to the lowest responsible bidder in accordance with the Local Public Contracts Law. "Lowest responsible bidder," in addition to price, shall be determined by the following criteria:

The ability, capacity and skill of the bidder to perform the contract or provide the services required.

Whether the bidder can perform the contract or provide the service promptly or within the time specified without delay or interference.

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 laws and ordinances relating to the contract or service.

(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 goods and 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)

The bid is responsive.

§ 4-70.10 Consulting and professional contracts.

Performance bonds. The City Purchasing Agent shall have the authority to require a performance bond pursuant to the provisions of the Local Public Contracts Law.

Subdivision prohibited. No contract or purchase shall be subdivided to avoid the requirements of this Article.

§ 4-70.9 Open market procedure.

All purchase of goods and services which do not exceed the bid threshold set forth in the Local Public Contracts Law may be made in the open market without newspaper advertisement and without observing the procedure prescribed by § 4-70.8; except that the Chief Financial Officer's approval shall be affixed thereto and in the event the estimated value is one thousand dollars ($1,000.) or more, approval of the Mayor or his designee shall be affixed to the purchase order or formal written contract, as the case may be.

Minimum number of quotations. All open market purchases shall, wherever possible, be based on at least three (3) competitive quotations and shall be awarded to the lowest responsible bidder in accordance with the standards set forth in § 4-70.8G(1).

Notice inviting quotations. The City Purchasing Agent shall solicit quotations by direct mail request to prospective vendors, by telephone and by public notice posted on the bulletin board of the City Hall.

Recording. The City Purchasing Agent shall keep a record of all open market orders and the quotations submitted in competition thereon, and such records shall also be open to public inspection.

Consulting and professional contracts are subject to the provisions of the Local Public Contracts Law and shall be conducted in a manner appropriate to contracts of this chapter. Where budget provisions are made for hiring consultants and professional persons to perform services for the city, but are not otherwise subject to approval by a board, commission or agency of the city, the contract shall be subject to approval and execution by the Mayor and attested to by the City Clerk, including those contracts.

§ 4-70.11 Petty cash fund.

Established. There is hereby established a petty cash fund of three hundred dollars ($300.) which shall be known as the "Purchasing Agent's petty cash fund." From this fund shall be paid all purchases not in excess of twenty-five dollars ($25.) each, made by the heads of using agencies for incidentals, with the approval of the City Purchasing Agent.

Monthly statement. At the end of each month the City Purchasing Agent shall render to the Chief Financial Officer a statement showing the actual expenditures for each using agency so made out of the Purchasing Agent's petty cash fund, and the City Treasurer shall reimburse the Purchasing Agent's petty cash fund for such expenditures in the same manner as other expenditures of such using agencies are paid.

Rules and regulations. The City Purchasing Agent shall promulgate rules and regulations for use of the Purchasing Agent's petty cash fund, subject to the approval of the Mayor, Council and the Chief Financial Officer.

Accounting and expenditure practices. All accounting and expenditure practices and rules and regulations of the City Purchasing Agent in regard thereto shall be in accord with the requirements of the Local Public Contracts Law and the regulations of the Department of Community Affairs, Division of Local Government.

§ 4-70.12 Central warehousing.

The City Purchasing Agent shall control and supervise storerooms and warehouses and shall administer the inventory revolving fund.

Inventory revolving fund. There shall be provided in each annual budget an amount required to provide the necessary funds to establish an inventory revolving fund.

Accounting procedure. Requisitions from goods and services in a storeroom or warehouse shall be credited by the City Purchasing Agent to the inventory revolving fund by a charge against the appropriation of the using agency.

Inventory. The City Purchasing Agent shall maintain a perpetual inventory record of all materials, goods and services or equipment stored in storerooms and warehouses of the city.

§ 4-70.13 Available supplies.

The head of the using agency shall have the authority to submit requisitions to the City Purchasing Agent for goods and services made available to the using agencies by the City Purchasing Agent.

§ 4-70.14 Emergency purchases.

Any contract may be negotiated or awarded without public advertising for bids and bidding therefor, notwithstanding that the contract price will exceed the bid threshold, when an emergency affecting the public health, safety or welfare requires the immediate delivery of goods or the performance of services; provided that the awarding of such contracts is made in the following manner:

The Purchasing Agent shall be notified of such an emergency and the need for invoking this section. If an emergency exists, then the Purchasing Agent shall be authorized to award a contract or contracts for such purposes as may be necessary to respond to the emergent needs. Such notification shall be reduced to writing and filed with the Purchasing Agent.

§ 4-70.15 Inspection and testing of items purchased.

Implementation of emergency purchases shall be in accordance with N.J.S.A. 40A:11-6 and N.J.A.C. 5:34-6.1.

Agent's responsibility. The City Purchasing Agent shall keep a record of all emergency purchases and shall make an analysis of such purchases and report to the Mayor and the City Council whenever his analysis shall indicate that the emergency provision procedure is being used to circumvent the requirements of the Local Public Contracts Law or of this chapter otherwise applicable.

The City Purchasing Agent shall inspect or supervise the inspection of all deliveries of goods and services to determine their conformance with the specifications set forth in the order or contract.

Inspection by using agency. The City Purchasing Agent shall have the authority to authorize using agencies having the staff and facilities for adequate inspection to inspect all deliveries made to such using agencies under rules and regulations which the Agent shall prescribe.

Tests. The City Purchasing Agent shall have the authority to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with the specifications. In the performance of such tests, the City Purchasing Agent shall have the authority to make use of laboratory facilities of any agency of the city government or of any outside laboratory.

§ 4-70.16 Disposition of surplus stock.

All using agencies shall submit to the City Purchasing Agent, at times and in such form as he shall prescribe, reports showing stocks of all goods and services which are still being used, no longer used or which have become obsolete, worn out or scrapped.

The City Purchasing Agent shall have the authority to transfer surplus stock to other using agencies.

The City Purchasing Agent shall have the authority to sell all goods and services which have become unsuitable for public use or to exchange the same for or trade in the same on new goods and services.

Sales under this section shall be made by sealed bid or public auction to the highest responsible bidder pursuant to N.J.S.A. 40A:11-36 and in conformance with § 4-70.8 or § 4-70.9, whichever is applicable.

§ 4-70.17 Contracts subject to fair and open process.

Contracts awarded having an anticipated value in excess of $17,500 or such other dollar amount as shall be established in N.J.S.A. 19:44A-20.5 may be awarded pursuant to the fair and open process established in this Article.

All contracts awarded pursuant to the provisions of the Local Public Contract Law through public bidding, the competitive contracting process or N.J.S.A. 40A:11-1 et seq. shall be deemed to have satisfied the municipal standards for the fair and open process.

The City of Orange Township, its boards and commissions shall not enter into a contract having an anticipated value which shall exceed $17,500 or such other dollar amount as established by N.J.S.A. 19:44A-20.5 with a business entity, except a contract awarded in a fair and open process as defined by this Article, if, beginning January 1, 2006, one (1) year prior to the award of the contract (excluding year 2005 or earlier) that business entity has made a contribution that is reportable by the recipient under N.J.S.A. 19:44A-1 et seq. to any municipal committee of a political party in Orange if a member of that political party is serving in an elective public office of Orange when the contract is awarded or to any candidate committee of any person serving in an elective public office of Orange when the contract is awarded.

Prior to awarding any contract having an anticipated value exceeding $17,500 or such other dollar amount as determined by N.J.S.A. 19:44A-20.5, except a contract awarded pursuant to the fair and open process as defined by this Article or contracts defined in subsection B of this section, the business entity shall be required to submit a written certification that it has not made a contribution that would bar the award of a contract pursuant to N.J.S.A. 19:44A-1 et seq.

§ 4-70.18 Standards for fair and open process.

Notice.

Notice shall be given in either an official newspaper of the City of Orange Township or on the city's official web site.

Sufficient time of notice shall be publication of either a request for proposals or request for qualifications at least ten (10) calendar days prior to the designated date for receipt of proposals or qualifications in either the official newspaper or web site. Nothing in this section shall prevent the city from establishing a date sooner, or period that the request for proposals or qualifications shall run.

Receipt of proposals or qualifications shall be the City's Purchasing Agent or his designee, and the date, time, place and manner of receipt shall be included in the notice.

(4)

Sufficient contents of notice shall include the following:

Description of the goods or services;

Contact information for obtaining the proposal or qualification document;