Montague Municipal Code Ch. 3.32 Purchasing

PURCHASING

Sections:

• 3.32.010 Definitions. 3.32.020 Purpose. 3.32.030 Purchasing officer.

• 3.32.040 Requisitions.

• 3.32.050 Purchase orders.

• 3.32.060 Unencumbered appropriation required. 3.32.070 Emergency purchases.

• 3.32.080 Open market purchasing. 3.32.090 Formal bid procedure. 3.32.100 Local preference. 3.32.110 Inspection and testing. 3.32.120 Cooperative purchasing. 3.32.130 Gratuities. 3.32.140 Conflict of interest. 3.32.150 Federal requirements. 3.32.160 Violation—Penalty.

The following terms, whenever used in this chapter, shall be construed as follows:

• A. “Agency” and “using agency” means any department, agency, commission, bureau or other unit of the city government which derives its support wholly or in part from the city.

B. “Bidder's list” means a current file of sources of supply for each category of repetitively purchased supplies, services and equipment purchased for city use. The purchasing officer may exercise the authority to declare a vendor who defaults on his quotation to be a nonresponsible bidder and to disqualify him from receiving any business from the city for a specified period of time.

• C. Lowest Responsible Bidder. In addition to price, the “lowest responsible bidder” will be determined by consideration of the following factors:

  1. The quality, availability and suitability of the supplies, equipment or services to the particular use required;

  2. The ability, capacity and skill of the bidder to perform the service required;

  3. Whether the bidder has the financial resources and facilities to perform or provide the service promptly, or within the time specified, without delay or interference;

  4. The character, integrity, reputation, judgment, experience and efficiency of the bidder;

  5. The bidder's record of performance or previous contracts or services, including compliance by the bidder with laws and ordinances relating to such contracts or services;

  6. The ability of the bidder to provide future maintenance and service for the use of the equipment or materials to be purchased;

  7. The number and scope of conditions attached to the bid.

D. “Purchases” means purchases of supplies, services and equipment, including leases or rentals as well as transactions by which the city acquires ownership.

E. “Responsible bid” means an offer submitted by a responsible bidder to furnish supplies, equipment or services in conformity with the specifications, delivery terms and conditions and other requirements including in the invitation for bids.

F. “Responsible bidder” means a bidder who submits a responsible bid and who is not only financially responsible, but is possessed of the resources, judgment, skill, ability, capacity and integrity requisite and necessary to perform the contract according to is terms.

G. “Services” means any and all services including but not limited to the following: the repair or maintenance of equipment, machinery and other property. The term does not include services rendered by city officers, employees, or architectural or other professional services which by their nature do not lend themselves to normal competitive procedures. (Ord. 88-16 Art. 1 § 15, 1988)

Centralized purchasing shall provide for efficient procedures for the purchase of supplies, materials, equipment and other property and services, to acquire the same at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases, and to assure the quality of the purchases. (Ord. 88-16 Art. 1 § 1, 1988)

A. The city clerk shall be designated the chief purchasing officer of the city. The chief purchasing officer shall have the authority to:

1. Prepare and recommend rules and regulations governing the purchase of supplies, services and equipment for the city. The rules and regulations shall be approved by the city council, and shall be adopted by resolution;

2. Prescribe and maintain such forms as reasonably necessary to the operation of this chapter and other rules and regulations;

3. Supervise the transfer of surplus or unused supplies and equipment between departments as needed and the sale of all supplies and equipment which can not be used by any agency or which have become unsuitable for city use;

4. Encourage the standardization of similar equipment, materials and services used by the various city departments.

• B. Each department shall designate a purchasing officer, who shall have the authority to:

  1. Purchase or contract for supplies, services and equipment required by any using agency in accordance with the purchasing procedures prescribed by the city and this chapter, such administrative regulations as the purchasing officer shall recommend for the internal management and operation of the purchasing division, and such other rules and regulations as shall be prescribed by the city council;

  2. Negotiate and recommend execution of contracts for the purchase of supplies, services and equipment;

  3. Act to procure for the city the needed quality of supplies, services and equipment at least expense to the city;

  4. Discourage uniform bidding and endeavor to obtain as full and open competition as possible on all purchases;

  5. Keep informed of current developments in the field of purchasing, prices,

market conditions and new products. Recommend purchase of alternative products of a higher quality or lower cost;

6. Department heads shall supervise the receipt and inspection of all supplies, services and equipment purchased to ensure conformance with specifications;

7. Maintain appropriate records needed for the efficient operation of the purchasing division. (Ord. 88-16 Art. 1 § 2, 1988)

Using agencies shall submit requests for supplies, services and equipment to the purchasing division on standard requisition forms. (Ord. 88-16 Art. 1 § 3, 1988)

A. Purchase of supplies, services and equipment shall be made only by purchase order or city council approved contract. Except in cases of emergency as defined in this chapter, no officer or employee of the city shall request a supplier to deliver supplies, services and equipment to the city unless a regular purchase order has been issued by the purchasing officer.

B. The chief purchasing officer may issue prenumbered purchase orders to authorized city officials for use in securing over-the-counter delivery of miscellaneous supplies against an open purchase order as needed. All purchase orders and order blanks shall be the responsibility of the city clerk's office. (Ord. 88-16 Art. 1 § 4, 1988)

Except in cases of emergency, the chief purchasing officer shall not issue any purchase order for supplies, services or equipment unless it has determined there exists an unencumbered appropriation in the fund account against which the purchase is to be charged. (Ord. 88-16 Art. 1 § 5, 1988)

The chief purchasing officer, with the approval of the city council, may authorize emergency purchases free of all provisions of this chapter upon a showing by any agency or officer that the purchase required is for the immediate preservation of health, safety and welfare of the people, repair to existing city equipment which impacts ongoing city operations, or for the protection of property, and that there is a present, immediate and existing emergency which could not reasonably be foreseen. (Ord. 88-16 Art. 1 § 6, 1988)

Purchasing of supplies, services and equipment of an estimated value in the amount of one thousand to five thousand dollars and the purchase of supplies, services and equipment for public works improvement, and repair projects not required to be let through public bidding, and repairs to existing city equipment, may be made by the purchasing officer in the open market in accordance with the following procedure:

A. Minimum Number of Quotations. Open market purchases, wherever possible, may be based on at least three quotations and shall be awarded to the lowest responsible bidder.

B. Solicitation of Quotations. The purchasing officer may solicit and receive quotations by written request to prospective suppliers, or by telephone.

C. Record of Quotations. The chief purchasing officer shall keep a record of all open market procurements and quotations for a period of one year after the placing of the order. This record, while so kept, shall be open to public inspections.

D. Exceptions. When the suppliers, services and equipment are available from only one source, the purchase is for highly perishable material or medical supplies, when prices for supplies, services and equipment are established by law, purchases from government agencies, when supplies, services and equipment require the repair, standardization or interchangeability of parts with existing equipment, or for small purchases that do not warrant the time and cost for obtaining competitive quotations, the procurement may be made in the most efficient method available consistent with the intent of this section and the best interest of the city. (Ord. 88-16 Art. 1 § 7, 1988)

Except as otherwise provided in this chapter, purchases of supplies, services and equipment of an estimated value greater than fifteen thousand dollars shall be by written bid with city council approval prior to award to the lowest responsible bidder, pursuant to the procedure prescribed in this section.

A. Notice Inviting Bids. Notice inviting bids shall include a general description of the supplies, service or equipment to be purchased, shall state where bid blanks and specifications may be secured, and the time and place for opening bids.

1. Published Notice. Notice inviting bids shall be published at least ten days before the date of opening of the bids. Notice shall be published at least once in a newspaper of general circulation, printed and published in the city.

2. Bidder's List The purchasing officer shall also solicit sealed bids from all responsible prospective suppliers whose names are on the bidder's list or who have requested their names to be added thereto.

B. Bidder's Security. When deemed necessary by the purchasing officer, bidder's security may be prescribed in the public notice inviting bids. Bidders shall be entitled to return of bid security; provided, that a successful bidder shall forfeit his bid security upon refusal or failure to execute the contract within ten days after the notice of award of contract has been mailed, unless the city is responsible for the delay. The city council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest bidder, the amount of the lowest bidder's security shall be applied by the city to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder.

C. Bid Opening Procedure. Sealed bids shall be submitted to the purchasing officer and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the public notice. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than thirty calendar days after the bid opening.

• D. Rejection of Bids. In its discretion, the city council may reject any and all bids and readvertise for bids.

E. Award of Bids. Bids shall be awarded by the city council to the lowest responsible bidder except as otherwise provided in this chapter.

F. Tie Bids. If two or more bids received are the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay of readvertising for bids, the city council may accept the one it chooses or accept the lowest bid made by negotiation with the bidders at the time of the bid opening.

G. Performance Bonds. The purchasing officer shall have authority to require a performance bond before entering a contract in such amount as it shall find reasonably necessary to protect the best interests of the city. If the purchasing officer requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids.

H. Right of Negotiation. The purchasing officer shall have the authority to negotiate contractual provisions, performance requirements, price and tradeoff considerations as part of the source selection process. (Ord. 96-05, 1996; Ord. 88-16 Art. 1 § 8, 1988)

In order to promote the economic health of the city and to encourage local participation in the procurement process, the city, determining the lowest responsible bidder, may take into consideration the sales tax which would be returned to the city as a result of the award. (Ord. 88-16 Art. 1 § 9, 1988)

All department heads may inspect supplies and equipment delivered, and contractual services performed, to determine their conformance with the specifications set forth in the order or contract All department heads shall have authority to require chemical and physical testing of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications. (Ord. 88-16 Art. 1 § 10, 1988)

The purchasing officer shall be authorized to join with other units of government in cooperative purchasing plans so that the best interest of the city shall be served thereby. (Ord. 88-16 Art. 1 § 11, 1988)

The purchasing officer and all other officers and employees of the city are prohibited from accepting directly or indirectly from any person to which any purchase order or contract is or might be awarded, any rebate, gift or money. The offer of such gratuity to an official or employee by any supplier or contractor shall be cause for declaring such individual to be an irresponsible bidder and for preventing him from bidding as provided in Sections 3.32.090 and 3.32.100. (Ord. 88-16 Art. 1 § 12, 1988)

No officer or employee of the city shall have any financial interest in the transaction of any business in connection with the purchase of goods and services for the city. No officer or employee of the city may contract with any person related to any officer or employee of the city by blood or marriage within the third degree for supplies, services and equipment unless the purchase be by competitive bid and the person so related submits the lowest responsible bid therein. (Ord. 88-16 Art. 1 § 13, 1988)

If any section, subsection, subdivision, sentence, clause or phrase of this chapter conflicts with any federal requirements mandated for any grant-funded procurement, the applicable federal requirements shall apply to that procurement. (Ord. 88-16 Art. 1 § 14, 1988)

Any employee having notice of the rules and regulations who fails to comply with or to make a good-faith effort to comply with this chapter is guilty of insubordination subject to discipline prescribed by the city's personnel ordinance and any resolution promulgated in connection therewith. (Ord. 88-16 Art. 2 § 23 (part), 1988)