Town of Albion, NY Purchasing Policy

Small and/or locally owned businesses, with priority to businesses owned by or which employ low- or moderate-income persons as defined by HUD; and

Qualified minority and women-owned business enterprises (M/WBE) firms listed in the directory or ratified minority and women-owned businesses maintained by the Empire Development Corporation on its website at: http://205.232.252.35 or at http://www.empire.state.ny.us/smalland growingbusinesses/mwbe.asp; and

These provisions shall apply to the procurement of goods and services related to the implementation of the CDBG-funded programs and activities as well as to the procurement of goods and services related to the general conduct of business by the Town of Albion.

§ 29-2 Determining need for bidding; documentation of determination.

The procedures for determining whether a procurement of goods and services is subject to competitive bidding and documenting the basis for any determination that competitive bidding is not required by law is as follows:

Generally the official responsible for making the particular procurement will make the determination of whether competitive bidding is required. In making this determination, the following questions must be considered:

Is the proposed procurement a purchase contract or a contract for public work?

If it is a purchase, will the combined total of similar procurements made by all Town Departments exceed the bid limit and, if so, do any exceptions apply?

If not a purchase, what type of procurement is it?

The procuring official must document the basis for any determination that competitive bidding is not required. This documentation may include evidence of written or verbal quotes that the price of the item or service will not exceed the bidding limits. The official may also document the amount expended in previous years in comparison with the threshold to show that the bidding will not be required. The documentation must also state how it was determined whether the procurement was a purchase or a contract for public work.

§ 29-3 Procedures for selecting vendor, contractor or service provider.

The procedures are as follows:

Commodities, Equipment or Goods
Dollar Limit	Procedure
$1 to $499	At the discretion of the Department
$500 to $2,999	Documented verbal quotes from three vendors
$3,000 to $4,999	Formal written quotes from at least three vendors
$5,000 to $9,999	Formal request for proposal (RFP) with a response from 3 vendors
$10,000 and over	Sealed bids in conformance with Municipal Law, § 103
Public Works Projects (Prevailing wage rates apply to all public works projects)
Dollar Limit	Procedure
Less than $999	At the discretion of the department
$1,000 to $4,999	Documented verbal quotes from three vendors
$5,000 to $9,999	Formal written quotes from at least three vendors
$10,000 to $19,999	Formal request for proposal (RFP) with a response from 3 vendors
$20,000 and over	Sealed bids in conformance with Municipal Law, § 103
Professional Services (recommended not required)
Dollar Limit	Procedure
Less than $5,000	At the department's discretion
$5,000 to $20,000	Written quotes from two sources should be obtained
Over $20,000	Written RFP with response from 3 sources
NOTE: Document all quotes (including verbal quotes) using the summary of quotations form attached to purchase order.

§ 29-4 Formal bids.

When formal bids are required, specifications will be prepared by the ordering department and submitted to the Town Board for approval.

If the Town Board approves the specifications, the department may place the bid notice and proceed with the bid process. The Town's general bid specifications and noncollusion clause and nonresponse form must be incorporated into every bid. Approval or rejections of bids may only be done by resolution of the Town Board.

§ 29-5 Required documentation.

Documentation of actions taken in connection with each such method of procurement is required. Documentation of quotes must be made on an approved form and maintained by the ordering department for the same period of time as the corresponding purchase or contract. Documentation acceptable to the Board must be provided whenever the required number of quotes is not provided.

§ 29-6 Awards not based on lowest price.

The purchasing official must clearly state in writing on the quotation form the reason for any award made to other than the lowest price offered.

§ 29-7 Procedure for purchase orders.

All commitments or orders in excess of $100 shall be either by a purchase order or contract (see following procedure for contracts) signed by the appropriate officials. No contract shall be recommended or purchase released until after determining that unencumbered appropriations are sufficient to cover such obligation.

Purchase orders or agreements with a value less than $500 may be released to the vendor by the ordering department except for printing. Orders of $500 or more require the approval of the Board and certification from the Bookkeeper that funds are available before being released.

The Town Attorney, prior to final approval by the Town, must review all contracts and agreements with a value of more than $1,000 or which extend for more than one year. If approved by the Town Attorney, the agreement then must be signed by the department head and forwarded to the Town Board for final approval. A properly completed fact sheet signed by an authorized department representative must accompany each submission.

The Town Board shall approve all contracts, agreements and purchase orders for goods and services that have been budgeted, regardless of the value.

Supplies used by various departments should be uniform whenever practical. The Board is authorized to require a department to reconsider specification or quality of material if it appears Town interests could be better served.

Distribution of the purchase order set shall be as follows:

Copy marked vendor will be mailed or delivered to the supplier.

Copy marked Bookkeeper will be sent to the Clerk's office.

Copies marked department and voucher will be kept at the originating department until receipt of the goods or services.

Once the order is completed to the department head's satisfaction, the voucher is signed by the designated department official and forwarded along with invoices and other related material to the Clerk. If the payment is for a purchase made from a state bid, a copy of the appropriate section of the state award must be attached. Any modifications to an approved order shall be confirmed in writing.

§ 29-8 Blanket purchase orders.

In certain circumstances, orders are placed with certain vendors numerous times each month. To eliminate the need for processing many small orders, a department may use a blanket purchase order. The estimated value of items to be acquired during the month will be placed on the order prior to release to the vendor. Bookkeeper copies will be sent to the Bookkeeper for encumbrance. The voucher, along with all the individual invoices, will be processed at the end of the month and a new blanket order issued for the following month. A department desiring to use this system must submit a list of proposed vendors, estimated average monthly amounts to be authorized and the reason a blanket order is desired for the approval of the Board. Once this has been obtained, no further approval of subsequent blanket orders are necessary even though they may exceed the $500 limit, unless a single item is over $500.

§ 29-9 Contractual reimbursement of mileage.

Vouchers for reimbursement of mileage paid on a contractual basis. Payment will be made at the same rate as the current approved rate for Town employees, unless authorized for a different amount.

§ 29-10 Procedure for contract approvals.

A "contract" is a legal obligation between a buyer and a seller to perform certain duties for a specified price. Technically, it may be verbal or written. However, the Town recognizes only written contracts. Generally, a formal (written) contract will be used when the terms and conditions involved in a commitment are such that a standard purchase order is not adequate. In addition, there is a formal contract when:

The purchase period extends beyond one year; or

The procurement involves an installation or labor component; or

Professional services are involved.

Because contracts can expose the Town to significant liability and risks, processes are needed to establish clear controls and accountability. The contracting process has a number of important factors, including writing, review, approval and administering. Considering the complexity of the key issues involved, proper training of all staff involved in the contract process is necessary. The primary goal of the contracting process is to establish agreements needed to conduct Town business in a manner that serves the best interest of the Town. For Town purposes, an agreement will fall within one of four categories, each with a different approval process.

A memorandum of understanding/memorandum of agreement is an agreement to share information in a structured way in order to facilitate service delivery that does not involve monetary terms. All such agreements must include language indicating there is no financial obligation on behalf of either party to such an agreement. Approval requires only the department head's signature. Examples include agreements defining procedures for serving joint clients, for undertaking joint responsibilities or transfer agreements.

Department level contracts are contracts that define standard terms of payment for budgeted services, that include a payment to or from a Town department that does not exceed $5,000, and that do not exceed a term of one year. Approval requires the signature of the department head, a review by the Town Attorney and approval by the Board. A properly completed fact sheet signed by the department head must accompany each submission. Examples include annual fire safety inspection, purchase of services between Town and county departments that do not exceed $5,000, maintenance agreements, and the like.

Grant applications must first be approved by the department head. A detailed fact sheet signed by the department head is then submitted to the Board. A resolution will then be placed on the agenda for the Board's consideration. Any agreement for the acceptance of grant monies must be approved by resolution.

(4)

Insurance company generated contracts are contracts with health insurance companies where language is standard for a large line of business and where the negotiation is limited to rate setting. Approval process is by the Board following consultation with the Board member(s) assigned to that task.

(5)

For all other contracts, agreements, grant applications and other commitments not covered elsewhere in this policy, the process begins with approval by the department head. This is followed by a review with the appropriate Board Committee. It is then forwarded to the Town Attorney and then to the Board for its review. It will then be placed on the agenda for consideration by the Board. A properly completed fact sheet signed by the department representative may be required to accompany each submission if the Board or Attorney feel it is necessary. Examples include grant funding applications.

§ 29-11 Summary of general approval process.

Purchases of $100 or more require a purchase order.

Purchases of $200 or more require documented comparison quotes, except for state bid purchases which must have a copy of the state bid attached with the payment voucher.

The department head may approve purchase orders less than $500.

The Town Board's approval is required for:

All purchase orders over $500.

All contracts under $5,000.