City of Amsterdam, NY Purchasing

It is the responsibility of each employee involved in the procurement process to become familiar with these procedures and to follow their requirements.

If there are any questions or concerns relative to either these procedures or the ability of the employee to respond effectively to their requirements, it is the responsibility of that employee to bring such matters to the attention of the purchasing agent.

§ 47-3 Delegation of purchase commitment authority.

Purpose. The purpose of this procedure is to delegate purchase commitment authority in limited circumstances.

This procedure applies to the purchase of materials, equipment, supplies and services.

General. Section C-40B of the City Charter requires that the City's purchasing agent shall... "Determine the needs of the various departments and agencies for standard, commonly used supplies, materials and equipment and contract for and purchase all such supplies, materials and equipment required by any department, office, board, commission or agency of the City in such quantities and at such times as may be most advantageous to the City." However, circumstances may arise which require delegation of purchase commitment authority.

Delegation of authority. The following delegation of purchase commitment authority is hereby made:

The individuals listed below are responsible for conducting purchase transactions within established guidelines:

	Category	Individual Delegation
	Professional services	Appropriate department head
	Emergency purchases	Appropriate department head

In determining whether a procurement is an emergency purchase, it must fit one of the following categories:

Emergency purchases pursuant to § 103, Subdivision 4, of the General Municipal Law. Due to the nature of this exception, these goods or services must be purchased immediately, and a delay in order to seek alternative proposals may threaten the life, health, safety or welfare of residents. This section does not preclude alternative proposals if time permits.

Work stoppage of City employees due to a breakdown in machinery or equipment; no alternative equipment available.

Loss of revenue with justification.

The department head will provide the Controller with a written description of the facts giving rise to the emergency within a reasonable time period (not to exceed seven days), to be attached to the purchasing paperwork.

[Added 3-3-2009 by Res. No. 08/09-251]

Under the remarks section of the purchase requisition, please provide the appropriate category to which this purchase applies.

Approvals.

Approval of the Common Council is required for contracts for professional services in excess of $999.

[Amended 3-3-2009 by Res. No. 08/09-251]

Emergency purchases shall be documented. A requisition for any purchase made under emergency conditions shall be forwarded to the purchasing agent with a written description of the facts giving rise to the emergency within one business day from the date of occurrence.

The Controller may act as the purchasing agent, contract for purchasing agent services or designate an employee or employees of the Department of Finance to act in that capacity.

[Added 3-3-2009 by Res. No. 08/09-251]

§ 47-4 Competitive bidding.

Purpose. The purpose of this procedure is to establish procedures for formal competitive bids.

Scope. This procedure applies to all purchases requiring competitive bidding as required by General Municipal Law § 103. (As of 2012, this applies to purchases of materials, supplies, equipment or apparatus exceeding $20,000 and public work contracts exceeding $35,000.)

[Amended 2-21-2012 by Res. No. 11/12-176]

Responsibility.

It is the responsibility of the department head to identify the purchases to be made by his/her department in a fiscal year that will exceed the monetary limits stated above and to initiate the competitive bidding process by contacting the purchasing agent.

[Amended 3-3-2009 by Res. No. 08/09-251]

It is the responsibility of the purchasing agent to determine whether the accumulated cost of a specific item used by more than one department will exceed the threshold established by General Municipal Law § 103 in a fiscal year and is therefore subject to competitive bidding requirements.

[Amended 2-21-2012 by Res. No. 11/12-176]

General.

General Municipal Law § 103 requires that certain purchases exceeding a threshold amount and public works contracts exceeding a separate threshold amount be awarded to the lowest responsible bidder after public advertising for sealed bids. The term "public works contract" apples to those items or projects involving labor or both material and labor.

[Amended 2-21-2012 by Res. No. 11/12-176]

Competitive bidding is required when it is known or can reasonably be expected that the aggregate amount to be spent on equipment or supply items will exceed the threshold established by General Municipal Law § 103 in a fiscal year. Supply items of a similar nature when are generally handled by one vendor should be grouped together for the purpose of determining whether the limit is exceeded.

[Amended 2-21-2012 by Res. No. 11/12-176]

Generally, the purchasing agent will write the item specifications with the assistance of the department that requires it. However, specifications for construction projects or those for highly technical equipment or systems may require the services of an expert in the field. The cost of engaging expert help to write specifications is the responsibility of the department that requires the item. Item specifications must accompany the resolution authorizing advertising for bids.

Approvals.

[Amended 6-17-2008 by Ord. No. 2008-5]

The Common Council must approve a resolution authorizing advertisement for bids for the item or project. The advertisement must be published in at least two publications, one of which shall include the State Contract Reporter, if appropriate.

The bids will be received by the City Clerk and opened in public by the City Clerk at the time and place indicated in the bid specifications and instructions. The City Clerk shall prepare a report to the Common Council of all bids received (including all details of each bid for each item), whether they are in the proper form, whether bid security has been posted and, based on the recommendation of the department head or other qualified authority, whether the bidder is qualified.

The Common Council must award all bids by resolution.

The department heads or responsible City official will prepare all bid specifications and resolutions for the Common Council's consideration. Bid specifications shall be provided to the Common Council one week prior to consideration of a resolution authorizing advertisement for bids by the Common Council (unless an emergency is declared by the Mayor requiring immediate action).

§ 47-5 Nonbid procurements.

Purpose. The purpose of this procedure is to define procedures for nonbid procurements.

Scope. This procedure applies to all nonbid procurements listed below.

Responsibility. The department head or purchasing agent responsible for making the procurement decision will determine whether the purchase is a nonbid procurements.

General. If a purchase is a nonbid procurement, it will be documented as outlined below:

[Amended 3-3-2009 by Res. No. 08/09-251]

Purchase contracts below the threshold established by General Municipal Law § 103:

[Amended 2-21-2012 by Res. No. 11/12-176]

	Category	Documentation
	$1 to $999	At the discretion of the department head with approval by the purchasing agent
	$1,000 to $4,999	Documented verbal price quotes from at least 3 vendors
	$5,000 and above	Formal written price quotes from at least 3 vendors

Public works contracts below the threshold established by General Municipal Law § 103 (includes service/maintenance agreements and equipment repairs):

[Amended 2-21-2012 by Res. No. 11/12-176]

	Category	Documentation
	$1 to $999	At the discretion of the department head with approval by the purchasing agent
	$1,000 to $6,999	Documented verbal price quotes from at least 3 vendors
	$7,000 and above	Formal written price quotes from at least 3 vendors

Common Council approval is required for all public works contracts requiring competitive bids.

A good-faith effort shall be made to obtain the required number of proposals or quotations. If the purchaser is unable to obtain the required number of proposals or quotations, the purchaser shall document the attempt made at obtaining the proposals. In no event shall the inability to obtain the proposals or quotes be a bar to the procurement.

[Added 3-3-2009 by Res. No. 08/09-251]

§ 47-6 Exceptions to competitive bidding requirements.

Purpose. The purpose of this procedure is to indicate the exceptions to competitive bidding.

Scope. This procedure applies to all exceptions listed below.

Responsibility. The department head or purchasing agent responsible for making the procurement decision will determine whether any of the statutory exceptions to competitive bidding apply.

General. Listed below are the exceptions to competitive bidding requirements generally recognized by the Office of the State Comptroller:

Purchases made through the New York State Office of General Services.

The department responsible for making the requisition will consult the state contract for any commodity that is covered.

If a procurement can be made for less than state contract pricing, no other documentation is required.

If a department head wishes to purchase an item that is different from the item on state contract and the price is higher, the procedures for procurements from other than the lowest-dollar offer must be followed.[1]

Editor's Note: See § 47-7 of this chapter.

Secondhand or surplus items purchased from other governments.

Three verbal or written price quotes will be obtained from vendors of similar equipment.

The department head requesting the purchase will provide a written statement outlining the benefits to be achieved from the procurement. The person responsible shall follow the procedures set forth in § 47-5 of these policies and procedures, as appropriate.

[Amended 3-3-2009 by Res. No. 08/09-251]

Common Council approval is required for any item over $10,000.

Purchases in emergency situations arising out of an accident or other unforeseen occurrence or condition will be documented in accordance with existing guidelines.

Purchases from Industries for the Blind, Industries for the Handicapped and the New York State Department of Correctional Services, Division of Industries.

Contracts for professional services or services requiring special or technical skill, training or expertise.

Sole-source procurements. The department head requesting the purchase will provide a statement of the benefits to be achieved from purchasing that particular product. The statement will prove that the product has no reasonable equivalent and will explain why the item is required in the public interest. The sole-source determination will be substantiated by a statement from the manufacturer or agent attesting to the fact that the product is available from only one source.

[Amended 3-3-2009 by Res. No. 08/09-251]

Lease arrangements where rentals are reasonable compensation for use and where there is no obligation to purchase the equipment at the end of the lease period.

(8)

Real property purchases.

(9)

Goods or services under $1,000.

[Amended 3-3-2009 by Res. No. 08/09-251]

(10)

Equipment purchased pursuant to a public auction with prior approval from the Mayor.

§ 47-7 Procurements from other than lowest-dollar offeror.

Purpose. To establish procedures for procurements awarded to other than the lowest-dollar offeror.

Scope. This procedure applies to all procurements.

Responsibility. The department head or purchasing agent responsible for making the procurement decision will provide justification and documentation of any contract awarded to other than the lowest responsible dollar offeror.

General.

Three written price quotes will be obtained for similar products.

The department head or purchasing agent requesting the purchase will provide a written statement outlining the benefits to be achieved from the procurement. There must be justification and documentation of the reason why the purchase is in the best interest of the City.

The Mayor's approval is required for procurements.

§ 47-8 Unintentional failure to comply.

Purpose. The purpose of this procedure is to establish a policy for unintentional failure to fully comply with § 104-b.

Scope. This policy applies to all employees involved in the procurement process.

General. Section 104-b, Subdivision 5, states that the unintentional failure to fully comply with the provisions of § 104-b shall not be grounds to void action taken or give rise to a cause of action against the City of Amsterdam or any officer or employee thereof.

§ 47-9 Requisition preparation.

Purpose. The purpose of this procedure is to establish procedures for preparing requisitions forms.

Scope. This procedure is applicable to all purchases.

Responsibility.

It is the responsibility of each department to initiate a requisition form when materials or services are required. Requisitions must be approved by the department head or his/her authorized representative.

The buyer is responsible for ensuring that proper approval is obtained before a purchase order is issued.

General. The department determines need for materials or services. A good-faith effort shall be made to obtain a minimum of three quotations or proposals. If the department head is unable to obtain the required number of proposals or quotations, the department will document the attempt made at obtaining the proposals or quotations. The failure of a sufficient number of vendors to respond to a purchase request shall not be a bar to the procurement process.

The department completes the requisition form.

It is the responsibility of the requisitioner to provide an adequate description of the materials or services required. Descriptions should include size, type, style, color, reorder or catalog number and any other information that will identify the items.

"Vendor Information" shall list the name and vendor number of the lowest responding offeror. Written documentation and an explanation is required whenever a contract is awarded to other than the lowest responding offeror.

"Requisitioned By" area shall list the name and phone number of the person to be contacted regarding the requisition.

"Purchase Authorization" area shall be signed by the department head or his/her authorized representative. If a department needs to know the cost of an item before an order is placed, the "Purchase Authorization" area may be left blank. The requisition will be returned to the department for signature when the cost is known.

(e)

If the department wants to confirm this order after it has gone through the purchasing procedure, it should be marked clearly "Will Confirm"; if this procurement is a confirmation, it should be marked clearly "Confirmation" in the "Remarks" section of the requisition. This will ensure that there will be no duplication of the order; the Controller's office will not mail the purchase order to the vendor.

(f)

"Remarks" area will include shipping instructions.

(g)

"Bid Record" area.

"Bid Record" area will include either of the following:

[a]

The name of the company, telephone number, the price quotes and the names of the contact person from three possible vendors.

[b]

The names of three vendors and telephone number that the purchasing agent can contact for price quotes.

It may also contain a recommended vendor, a preferred brand name or last order information for materials or services that have been purchased before.

(h)

Areas labeled for "Purchasing Department" and "Bid Record" information will not appear on the computer-generated purchase order.

(i)

Insert the proper account codes in the "Accounting Data" area.

(j)

"Date Reqd. by Des." area requires a reference as to when the procurement is needed by the department. It is the objective of the purchasing agent to obtain the best value for every dollar expended by the City. Sufficient lead time should be built into the procurement process to permit adequate planning, comparisons, vendor selections, documentation, etc.

(k)

Requisition forms should be neatly written in ink.

(l)

The Mayor may by executive order require mayoral approval of any purchase over $300 or ay higher amount specified by executive order, submitted to the office with the form outlining the budget line the item(s) are charged to, anticipated expenses on that line, balance of the line after the expenditure and explanation of the purchase.

[Amended 2-21-2012 by Res. No. 11/12-176]

The original requisition form is forwarded to the purchasing agent.

§ 47-10 Purchase order preparation.

Purpose. The purpose of this procedure is to establish procedures for preparing purchase orders.

Scope. This procedure is applicable to all purchases.

Responsibility. It is the responsibility of the purchasing agent to prepare purchase orders for needed materials and services after receipt of a signed requisition form authorizing the purchase.

General.

The purchasing agent will accept the original requisition from the originating department on Monday and Tuesday of each week. Any requisition submitted after Tuesday will be held until the following week.

The purchasing agent approves the vendor and assigns the purchase order. If a vendor has not been assigned by the department, then the purchasing agent selects the vendor and enters the cost.

The Controller's office personnel encumbers funds and generates the purchase order.

If funds are not available, the requisition will be returned to the originating department.

The originating department is responsible for transferring funds for the purchase. When the transfer has been completed, the requisition is returned to the Controller's office for processing.

The purchase order and requisition is signed by the purchasing agent.

Copies are distributed as follows:

Vendor: original copy unless marked "Will Confirm."

Purchasing: purchasing copy and numerical copy.

[3]

Department: department copy and receiving report.

If order is not marked "Will Confirm," the order will be mailed out. This can result in duplicate orders.

The Controller's office personnel files the original requisition with the numerical copy of the purchasing order.

The originating department files the department copy and the receiving report voucher copy in an "Open Purchase Order" file.

§ 47-11 Purchase order receiving.

Purpose. The purpose of this procedure is to establish procedures and provide proper documentation for the receipt of materials, supplies and equipment.

Scope. This procedure applies to all deliveries of materials, supplies and equipment.

Responsibility. It is the responsibility of the department head or his/her designee to become familiar with this procedure and to follow its requirements.

General.

A person should be designated in each department to be responsible for receiving and inspecting all deliveries.

The person who delivers the shipment may ask the receiving person to sign a delivery receipt. Before signing, the receiving person shall:

Verify that the items listed on the delivery receipt were actually delivered. If there is a discrepancy, ask the delivery person to note the difference on the receipt.

Check to see if any cartons are damaged. If they are, inspect the contents before accepting the shipment. Do not accept damaged shipments.

If the cartons are not damaged, note on the delivery receipt "Contents Not Inspected" before signing.

The receiving person shall inspect the contents of each shipment as soon as it is delivered to ensure that the items received are in good condition.

If any damage is found, the receiving person shall notify the purchasing agent at once. The purchasing agent will contact the vendor to initiate corrective action.

If the shipment is satisfactory, the receiving person shall complete the receiving report provided with the voucher copy of the purchase order and send it to the Controller's office without delay, before any payment can be made.

§ 47-12 Purchase order payment.

The purpose of this procedure is to define the steps to be taken to ensure prompt payment of invoices for materials or services received.

Scope. This procedure applies to all purchase orders for materials and services.

General.

The vendor receives the original purchase order by mail, phone, FAX or in person.

The vendor delivers the materials or services.

The vendor sends the original invoice to the Controller's office.

The Controller's office personnel matches the invoice and receiving report to the purchasing copy of the purchase order. If a pricing error is noted, the invoice is referred to the purchasing agent for resolution.

The Controller's office personnel processes the claim for payment.

§ 47-13 Verbal orders.

Purpose. The purpose of this procedure is to define the use of verbal orders for materials and services.

Scope. This procedure applies to the use of all verbal orders.

General.

A verbal order may be given to vendors in cases where the necessity for immediate action exists. The individual requesting such an order shall justify the need for this action.

Verbal orders are subject to subsequent confirmation by a written purchase order. A requisition form must be prepared and forwarded to the purchasing department without delay.

Only the purchasing agent are authorized to give verbal orders to vendors. The availability of funds will be determined before the order is placed.

§ 47-14 Exception to purchasing system.

Purpose. The purpose of this procedure is to indicate the expenditures for which purchase orders are not required.

Scope. This procedure applies to all expenditures listed below.

General. Check requests should be prepared by the City Controller for the expenditures listed below and forwarded directly to the City Clerk for payment.

Reimbursement of employee expenses.

Reimbursement of petty cash funds.

Postage stamps.

Utilities bills.

Bond payments including principal and interest.

Refund of overpayment of taxes.

Insurance premiums.

§ 47-15 Blanket purchase orders.

Purpose. The purpose of this procedure is to establish guidelines for the use of blanket purchase orders.

Scope.

This procedure applies to the procurement of supplies that are considered to be of immediate need.

This procedure eliminates the necessity for the issuance of separate purchase orders for groups of items that are purchased frequently from the same vendor and permits the department to purchase items of this nature on an as-needed basis.

General.

The department determines the need for ongoing supplies.

Vendors are selected according to existing guidelines.

The department prepares a separate requisition form for each vendor and inserts the following information:

Name of vendor.

Items or category of items to be purchased.

Estimated amount of purchases to be made during the time period.

Time period: in most cases the vendor's billing cycle (usually monthly) will be used. (example: $200 per month for 12 months).

The purchasing agent will issue a purchase order for each requisition.

The department will attach all delivery receipts and/or invoices to a copy of the purchase order and will ensure that the purchases do not exceed the purchase order amount.

The department will forward the copy of the purchase order with attachments to the Controller's office personnel for payment.

The Controller's office personnel will reconcile the monthly statement to the copy of the purchase order with attachments and process for payment.

§ 47-16 Contracts for professional services.

Purpose. The purpose of this procedure to establish procedures for the encumbrance of funds payable under written contracts for professional services.

Scope. This procedure applies to all written contracts for professional services if the contractor is paid a fixed amount for the services and that amount is payable one or more times a year.

Responsibility. The Common Council is responsible for approving all contracts for professional services in excess of $999.

[Amended 3-3-2009 by Res. No. 08/09-251]

General.

The department determines the need for the services and procures such services in accordance with existing guidelines.

The department determines the cost of the contract and the payment terms.

The department prepares the contract, requisitions and receives the appropriate approvals.

The Controller's office personnel encumbers the full amount of the contract via the requisition.

When payment is due, the department prepares the receiving report or a copy of the receiving report if more than one payment is necessary.

The receiving report or copy will be forwarded to the Controller's office personnel for payment.

§ 47-17 Maintenance and service contracts.

Purpose. The purpose of this procedure is to establish procedures for the acquisition and payment of maintenance and service contracts or agreements and their subsequent renewal.

Scope. This procedure covers maintenance and service contracts or agreements for equipment, such as office machines, computers, communication equipment, elevators and heating and cooling equipment.

Responsibility. The Common Council approval is required for any maintenance and service contracts or agreements over the threshold established by General Municipal Law § 103.

[Amended 2-21-2012 by Res. No. 11/12-176]

General.

The department determines the need for service to its equipment.

The vendor is determined in accordance with existing guidelines.

The vendor submits a written agreement stating the services to be provided and all terms and conditions.

The department completes a requisition form stating the duration and cost of the agreement and forwards the requisition to the purchasing agent with a copy of the agreement.

The purchasing agent reviews the agreement and issues a purchase order.

Payment is made using the receiving report of the purchase order.

This procedure will be followed for each initial agreement and for each renewal of an existing agreement.

§ 47-18 Lease or rental agreements.

Purpose. The purpose of this procedure is to establish procedures for the procurement and payment of lease or rental agreement.

Scope. This procedure applies to the lease or rental of all equipment or real property.

Responsibility. The Common Council is responsible for approving all leases or rentals for all equipment or real property.

General.

The department determines the need for the lease or rental of equipment or real property.

The department head requesting the lease will provide a written statement outlining the benefits to be achieved from the lease. A cost benefit analysis of leasing versus purchasing will be included.

The purchasing agent solicits quotations for the lease or rental in accordance with existing guidelines.

The Mayor enters into the lease or rental agreement after appropriate approvals are received.

Lease or rental payments will be encumbered on an annual basis for the current fiscal year.

The department will prepare a requisition form covering the current fiscal year's payments for each lease or rental agreement. The requisition form shall contain the following information:

Name of vendor.

Term of lease or rental agreement and the time period covered by the payments.

[3]

Amount due and payable during the current fiscal year.

The Controller's personnel will issue a purchase order covering the current fiscal year.

If the lease or rental payment is due and payable once a year, the receiving report of the purchase order will be forwarded to the Controller's personnel for payment on the due date.

If the lease or rental payments are due and payable two or more times a year, the department will prepare a copy of the receiving report for each payment period and forward it to the Controller's personnel for payment.

(e)

Requisition forms for lease or rental agreements will be forwarded to the purchasing agent at the beginning of each fiscal year or upon entry into the agreement.

§ 47-19 Installment-purchase contracts.

Purpose. The purpose of this procedure is to establish procedures for the procurement and payment of installment-purchase contracts.

Scope. This procedure applies to the installment-purchase contracts of all equipment or real property.

Responsibility. The Common Council is responsible for approving all installment-purchase contracts for all equipment or real property.

General.

The department determines the need for the installment-purchase contract of equipment or real property.

The department head requesting the installment purchase will provide a written statement outlining the benefits to be achieved from the installment purchase. A cost-benefit analysis of installment purchase versus purchasing or bonding will be included.

The purchasing agent solicits quotations for the installment purchase in accordance with existing guidelines.

The Corporation Counsel will review the installment contracts and forward to the Mayor.

The Mayor enters into the installment-purchase contract after appropriate approvals are received.

Installment-purchase contracts will be encumbered on an annual basis for the current fiscal year.

The department will prepare a requisition form covering the current fiscal year's payments for each installment-purchase contract. The requisition form shall contain the following information:

Name of vendor.

Term of installment contract and the time period covered by the payments.

[3]

Amount due and payable during the current fiscal year.

The Controller's personnel will issue a purchase order covering the current fiscal year.

If the installment contract is due and payable once a year, the receiving report of the purchase order will be forwarded to the Controller's personnel for payment on the due date.

If the installment contract payments are due and payable two or more times a year, the department will prepare a copy of the receiving report for each payment period and forward it to the Controller's personnel for payment.

(e)

Requisitions forms for installment contracts will be forwarded to the purchasing agent at the beginning of each fiscal year or upon entry into the contract.

§ 47-20 Credit and debit cards.

[Added 10-19-2010 by Res. No. 10/11-95]

Purpose: to regulate the use of credit cards or purchasing cards by City employees and officers to improve the overall efficiency of purchasing transactions and increase purchasing oversight.

[Amended 9-5-2023 by Ord. No. 4-2023]

The Controller is hereby authorized to contract with credit card companies, banks or vendors to establish lines of credit or obtain credit or purchasing cards.

[Amended 2-8-2011 by Res. No. 10/11-187; 9-5-2023 by Ord. No. 4-2023]

The total aggregate credit limit is determined at the discretion of the Controller.

The total number of cards to be issued is determined by the Controller.

The maximum credit line for each cardholder shall be determined by the Controller.

Access to credit or purchasing cards.

[Amended 9-5-2023 by Ord. No. 4-2023]

The Controller shall determine if a particular employee or official requires access to a credit card or purchasing card for the efficient execution of their duties.

Any employee or official issued access to a credit card or purchasing card shall sign an agreement that any use of the card shall be in conformance with Chapter 47 of the City Code, shall not exceed budget amounts for any expense incurred and shall obligate the employee or officer to be personally liable for any cost incurred for purchases in violation of this chapter or in excess of budgeted amounts.