[HISTORY: Adopted by the Town Council of the Town of South Berwick 10-25-2004.
Amendments noted where applicable.]
The purposes of the regulation are to standardize the purchasing procedure
of the Town of South Berwick thereby securing for the Town the advantages
of a centralized and uniform purchasing policy saving the taxpayers' money
and increasing public confidence in the procedures for municipal purchasing;
to promote the fair and equitable treatment of all suppliers of goods and
services; and to set forth the duties and responsibilities of the department
heads and the Purchasing Agent, thereby fostering interdepartmental cooperation
and trust in the purchasing system.
As used in this chapter, the following terms shall have the meanings
indicated:
A bid chosen on the basis of price, quality of merchandise, suitability
of merchandise, and service reputation of the vendor, and therefore may not
necessarily mean the lowest bid received.
The process of obtaining the bid most advantageous to the Town for
any purchase, whether through formal or informal bidding procedures.
A purchase made by the Town in conjunction with or from another governmental
or quasi-governmental agency, such as, but not limited to, the State of Maine,
Greater Portland Council of Governments (GPCOG), the School District, the
Sewer District or another municipality.
A written quotation obtained in a sealed envelope from a vendor or
through advertisement and opened at a specific day, place and time.
A written quotation obtained from a vendor but not required to be
opened publicly at a specified day, place and time.
Buying, renting, leasing, or otherwise acquiring supplies or services
for a price.
The Town Manager or the Town Manager's designee.
The lease or rental of all grounds, buildings, offices, space or
equipment required by the Town, the repair or maintenance of equipment or
real property owned by or the responsibility of the Town and all labor furnished
to the Town by persons, firms, individuals or corporations not part of or
connected with the Town government. "Services" shall not include professional
services provided to or for the Town by lawyers, architects, engineers, auditors
and consultants; nor shall "services" include utilities such as electricity,
water, and phone services.
All supplies, materials and equipment.
Responsibilities of department heads shall be as follows:
A.
To practice economy in the use of materials.
B.
To maintain equipment in serviceable condition.
C.
To plan future purchases to provide ample time to secure
favorable prices.
D.
To ensure compliance by employees with purchasing regulations
and procedures.
E.
To assure that a sufficient unencumbered balance in the
department's appropriation is available before a purchase is made.
G.
To supply the Town Manager with a list of estimated annual requirements
of frequently used supplies, thereby fostering cooperative purchasing.
I.
To be empowered to reject any unacceptable supply or
commodity on the grounds of high cost or low quality, and provide the Town
Manager with a written detailed report of any rejection.
Purchase limits are as follows:
|
Purchase Amount
|
Process
|
|---|---|
|
$1,000 or less
|
No purchase order
|
|
Over $1,000
|
Purchase order required
|
|
Between $2,500 and $10,000
|
Informal bidding
|
|
Over $10,000
|
Formal bidding
|
A.
Purchases of $1,000 or less.
(1)
Authority. Department heads are authorized to make purchases
from vendors when the total cost is $1,000 or less if budget funds are available.
Department heads are expected to investigate the local market and select items
best suited for their needs by both quality and price.
(2)
Purchase orders are not necessary for all purchases of
$1,000 or less.
B.
Purchases over $1,000.
(1)
Authority. Department heads are authorized to make purchases
from vendors when the total cost is over $1,000 only after approval from the
Finance Department and Town Manager.
(2)
Purchase order. Purchase orders are necessary for all
purchases. Purchase orders will be submitted for all purchases exceeding $1,000
and will be approved by the department head, followed by the Finance Department
and Town Manager. A copy of the P.O. will be sent to the vendor or the purchase
order number will be relayed to the vendor for placement on the invoice.
(3)
Invoice necessary. The person making the purchase will
ensure that the invoice is to the Town of South Berwick and should also ensure
that the vendor provides a legible and complete description of the item purchased
on the invoice. A copy of the supplier's invoice signed by the person making
the purchase will be delivered to the department head. The department head
shall verify (by signing the invoice) the receipt of the item and ensure that
the invoice reflects the department and activity for which the purchase was
made. The invoice shall also have the corresponding purchase order number
clearly printed on the invoice so that the Finance Department can expeditiously
pay the invoice. Invoices shall be delivered to the Finance Department as
soon as possible.
A.
Department heads shall exercise prudence and care to
insure that the appropriate vendor selection method is utilized.
B.
Vendor selection method.
(1)
"Blanket" puchase orders for ongoing purchases of supplies or
seasonal contracts shall be renewed annually.
[Added 12-12-2005]
(2)
An informal purchase process may only be used in the purchase
of items under $2,500 or in an emergency. Department heads are expected to
investigate the local market and select the items best suited for their needs
by both quality and price.
(3)
Informal bidding shall require three quotations to be obtained
from a vendor in writing. Under this method the request for quotations are
not publicly advertised nor is there a formal bid opening. All informal purchases
shall, whenever possible, be based on at least three competitive quotations
and be awarded in accordance with the standards set forth in this chapter.
Generally, an informal bidding process shall be used whenever a purchase or
contract exceeds $2,500 but is less than $10,000. If written quotes are not
possible, a log shall be retained by the department head.
[Amended 12-12-2005]
(4)
Formal bidding. Purchases and contracts of $10,000 or more shall
normally require the use of the following bid process:
(a)
Notice of invitation to bid should be published in the
newspaper or mailed to a bidder's list. Notification shall be made whenever
possible at least five days preceding the last day acceptable for receipt
of bids. In addition to the invitation to bid, each prospective bidder will
be furnished a specification sheet and a bid proposal form.
(b)
Bids shall be submitted, sealed and identified as bids
on the envelope. They shall be opened by the Town Manager or his designee,
in public, at the time and place stated, and a tabulation of all bids shall
be available for public inspection.
(c)
When deemed necessary by the Town Manager, bid deposits
will be required. Unsuccessful bidders shall be entitled to return of their
deposit, while the successful bidder shall forfeit the bid deposit upon failure
on their part to enter into a contract within 10 days after award.
(d)
Before entering into a contract, the Town Manager shall
have the authority to require performance bonds in such amounts as he/she
shall find necessary to protect the best interest of the Town.
(e)
The Town Manager may make cooperative purchases without
competitive bidding if the Town Manager determines the purchase is being made
after competitive bidding by the cooperative entity or at price more advantageous
than the Town would be likely to obtain by competitive bidding.
(f)
The Town Manager may waive the requirements for competitive
bidding for purchases of $10,000 or less in cases of emergency or when the
purchase is inappropriate for competitive bidding due to the nature of the
item, time constraints or other factors, provided that the Town Manager shall
file a full and complete statement of the reasons for waiving competitive
bidding.
(g)
The Town Council may waive the requirements for competitive bidding
for purchases of $10,000 or more in the case of a nonemergency purchase when
the purchase is inappropriate for competitive bidding due to the nature of
the item, time constraints, or other factors.
[Added 12-12-2005]
(h)
The Town Manager may waive the requirements for competitive bidding
in any amount in all emergency situations, provided the Town Manager shall
file a full and complete statement with the Town Clerk of the reasons for
waiving competitive bidding and notify the Chairman of the Town Council of
such.
[Added 12-12-2005[1]]
[1]
Editor's Note: This enactment also redesignated former Subsection
B(4)(g) and (h) as B(4)(i) and (j) respectively.
(i)
All purchases requiring utilization of the formal bidding
process shall be subject to Council approval prior to the initialization of
the formal bid process.
(j)
All purchases requiring a formal bid shall require confirmation
by the Town Council subject to the Town Manager's recommendation.
(5)
Specifications. The responsibility for preparing specifications
rests with the department head, subject to approval by the Town Manager.
(6)
Quotation or bid summary form. Upon return of the bid proposals
or the request for quotation form from the vendors, the department head will
summarize the prices offered on a quotation summary form and recommend to
the Town Manager the vendor to be chosen. The Town Manager will determine
the lowest and best bid. A summary of the bid process will be provided to
the Town Council.
(7)
The following factors shall be considered in awarding each bid:
(a)
The stated bid price.
(b)
The ability, capacity and skills of the bidder to perform the
contract or provide the purchase within the time specified without delay or
interference.
(c)
The character, integrity, judgment, experience and efficiency
of the bidder.
(d)
The quality of performance of previous contracts or purchases.
(e)
The previous and existing compliance by the bidder with the laws
and ordinances relating to the contract for service.
(f)
The sufficiency of the financial resources and ability of the
bidder to perform the contract or provide the purchase.
(g)
Quality, availability and adaptability of the contract or purchase.
(h)
The ability of the bidder to provide future maintenance service
on the items to be purchased.
(i)
The number and scope of conditions attached to the bid.
(j)
If all bids received are the same total amount or within a 10%
variance, with quality and service being equal, the contract shall be awarded
to a South Berwick business establishment.
The department head will notify the Finance Department upon receiving
the goods or services, by stamping the purchase order with the receiving stamp
and forwarding the stamped copy of the purchase order form, together with
the statement, invoice and other documents accompanying the shipment to the
Finance Department.
A.
Accepting equipment on trial. No equipment or accessory
may be put to use by any department for the purpose of testing its suitability,
or fitness in advance of purchase, without the prior written approval of the
Town Manager.
B.
Joint purchasing. The Town Manager shall have the authority
to join with other units of government in cooperative purchasing when the
best interests of the Town would be secured.
C.
Disposal of property. All municipally owned property,
real or personal, shall be disposed of either by:
(1)
Trade-in on purchase of new equipment. Any item that
is offered as a trade-in shall also be offered for sale by competitive bid.
The higher amount of the two (trade-in allowance or bid) shall be accepted.
(2)
Sealed bids.
(3)
Auction.
(4)
Donated with Council approval.
(5)
Equipment or material that is obsolete, valueless, or
surplus is to be reported to the Town Manager for disposition instructions.
