69-1

PURCHASING POLICY

Chapter 69

 

PURCHASING POLICY

 

69-1.                              Policy objectives.

69-2.                              Definitions.

69-3.                              Purchasing and bidding procedures.

69-4.                              Vendor selection.

69-5.                              Exceptions.

69-6.                              Emergency clause

 

(HISTORY: Adopted by the Board of Selectmen of the Town of Rutland 4-28-1997. Amendments noted where applicable.)

 

69-1.      Policy objectives.

The primary objectives of the Town of Rutland’s purchasing policy are as follows:

 

A.                To promote and effect, in the best interest of the Town of Rutland, open and intelligent purchasing of supplies, equipment and services which will result in the maximum value received for each tax dollar spent.

B.                To ensure realization of the principles of competitive purchasing and best buy at least cost.

C.                To assist management in reaching responsible and cost-effective decisions in the procurement of quality supplies and services for Town use.

D.                To ensure that all vendors will have an equal opportunity to do business with the Town of Rutland and promote good will and clear communication in town/vendor relations.

 

69-2.      Definitions.

As used in this chapter the following terms shall have the meanings indicated:

 

INCIDENTAL PURCHASES – Those purchases calling for delivery of goods or services of less than $500.

 

MAJOR PURCHASES – Those purchases calling for delivery of goods or services in the amount of $2,000 or greater.

 

REGULAR PURCHASES – Those purchases calling for delivery of goods or services in the amount of $500 to $1,999.

 

 

69-3.      Purchasing and bidding procedures.           

 

A.     Major purchases shall require a formal bid process. The department head shall prepare or cause to be prepared specifications or a request for proposal for the article or services required and shall advertise an invitation to bid at least once in a newspaper of general circulation in Rutland.

 

(1)               The invitation to bid shall include the following :

(a)   The location, time and place for receiving and opening of sealed bids.

(b)   Information on how to obtain bid specifications and bid forms or requests for proposal.

(c)    A description of the supplies, materials, equipment or services for which bids are to be received.

(d)   The right of the Town of Rutland to reject any and all bids if such action is deemed in the best interest of the town.

(e)   An outline where appropriate of the insurance requirements of the town in order to limit the town’s risk.

 

(2)               Such bids shall be publicly opened not less than 10 days following the date of the first advertisement, at the time and date specified in the published notice. Contracts for major purchases shall be awarded by the Board of Selectmen, and the date advertised shall be the next meeting of the Board of Selectmen after the ten-day period.

 

B.     Regular purchases.

 

(1)     Regular purchases must be accomplished through competitive solicitation, but not necessarily through formal bids. Regular purchases may be made through formal bid or written quotation at the discretion of the department head for whose department the purchase is being made in consultation with the Board of Selectmen. Bids or quotations should be sought from at least three vendors unless a sole source is approved as per 69-4 below.

(2)      Purchase orders shall be utilized for all regular purchases utilizing the following distribution of copies: white: vendor’s copy; yellow: Town Treasurer; pink: department head.

 

C.    Incidental purchases may be accomplished without the solicitation of bids or

quotations. However, if practicable, quotations should be solicited.

 

69-4.      Vendor selection     

 

A.     Vendors will be selected on a competitive basis. Purchases shall be awarded to the lowest, best-qualified and responsible vendor. Any or all bids, quotations or proposals may be rejected if such action is deemed to be in the best interest of the town.

B.     In determing the “lowest, best qualified and responsible vendor”, in addition to price, the following may be considered:

 

(1)   The substantial performance of the bidder in meeting the specifications and other terms and conditions of the solicitation.

(2)   The ability, capacity and skill of the vendor to perform the contract or provide the materials or service required and to do so promptly or within the time specified.

(3)   The character, integrity, reputation, experience, financial resources and performance under previous contracts of the vendor.

(4)   The quality, availability and adaptability of the service or product being purchased and the ability of the vendor to provide further maintenance if necessary.

 

69-5.      Exceptions.

 

A.          Waiver of bids: the Selectmen may waive the bid process or approve a sole source solicitation for major purchases when they deem it to be in the best interest of the town. Sole- source solicitations should be reviewed to determine that the price offered is fair and reasonable or that there is only one manufacturer/supplier of the item to be purchased.

 

B.          Professional services: The purchase of professional services shall be exempt from the formal bid process. It is recognized that proposals for professional services (including but not limited to legal counsel, insurance, engineering/architectural services, and various consulting services) are difficult to compare and that weight must be given to many considerations other than price. The purchase of professional services, the cost of which is expected to exceed $1,000 for a project must be approved by the Board of Selectmen.

 

C.         Exemptions: The following items are exempted from the bid process but required quotations:

 

1.                 Salt.

2.                 Repairs on equipment.

3.                 Fire hydrants.

4.                 Utilities.

5.                 Service contracts.

 

 

69-6.      Emergency clause.

 

A.     This policy may be waived in the event of an emergency. An emergency situation shall be defined as one which threatens the lives or health of the people, the property of the town or its citizens of the town.

B.     During emergency situations, when normal procurement procedures would be impracticable, the following procedures shall be followed:

 

(1) The Board of Selectmen shall approve all requests for emergency purchases. It must be emphasized that the emergency purchases are costly. They are made hurriedly, usually on a noncompetitive basis, and often not at the best price. Every effort should be made to avoid them.