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:
BID MOST ADVANTAGEOUS TO THE TOWN
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.
COMPETITIVE BIDDING
The process of obtaining the bid most advantageous to the Town for
any purchase, whether through formal or informal bidding procedures.
COOPERATIVE PURCHASE
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.
FORMAL BID
A written quotation obtained in a sealed envelope from a vendor or
through advertisement and opened at a specific day, place and time.
INFORMAL BID
A written quotation obtained from a vendor but not required to be
opened publicly at a specified day, place and time.
PURCHASE
Buying, renting, leasing, or otherwise acquiring supplies or services
for a price.
SERVICES
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.
SUPPLIES
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.
F. To insure purchases are not split with the direct intention
of circumventing the purchase order system.
[Added 12-12-2005]
G. To supply the Town Manager with a list of estimated annual requirements
of frequently used supplies, thereby fostering cooperative purchasing.
H. To report to the Town Manager the following:
(2) Items being replaced or to be replaced.
(3) Items no longer of use to department operations.
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.
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.