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Sebago Maine Town Seal
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Purchasing Policy
Town of Sebago
Municipal
Purchasing, Grants
& Sales
Policy




02-12 Amended August 7, 2012
02-12 Amended August 19, 2014








Table of Contents
SECTION I. PURPOSE      3
SECTION II. DEFINITIONS 3
SECTION III. APPLICABILITY      5
SECTION IV. APPROPRIATION       5
SECTION V. PURCHASING AGENT: POWERS AND DUTIES  5
SECTION VI. PURCHASE LIMITS     6
SECTION VII. COMPETITIVE BIDDING        6
SECTION VIII. FORMAL BIDDING ($5,000 >) 7
SECTION IX. INFORMAL BIDDING ($1,000 to $5,000) 8
SECTION X. ADMINISTRATIVE PROCEDURES & CONDITIONS       8
SECTION XI. DUTIES OF DEPARTMENT HEADS  10
SECTION X  GRANT PROCEEDURES    11
SECTION XI GIFT PROCEEDURES     12
SECTION XII SCOPE OF TOWN MANAGER’S AUTHORITY 12


APPENDICIES

        GRANT APPLICATION WORKSHEET………………………..……………..14

        OFFICIAL BID RESPONSE FORM……………………………..…………….15

        BIDDER INFORMATION……………………………………………..………16

        CONFLICT OF INTEREST DISCLOSURE FORM………………...…………17
SECTION I. PURPOSE
The purposes of the regulation are to standardize the purchasing procedure of the Town of Sebago, thereby securing for the Town the advantages of a uniform purchasing policy in an effort to both save money and increase public confidence in the procedures for municipal purchasing. Additionally it is to promote the fair and equitable treatment of all suppliers of goods and services and to clearly set forth the duties and responsibilities of the Department Heads and the purchasing agent.

SECTION II. DEFINITIONS
Bid: For purposes of this policy, the term “request for bids” shall also include “request for proposals” or “request for qualifications”.
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 most advantageous bid for any purchase, whether through formal or informal procedures.
Emergency: Any situation or circumstance, that will inhibit a department from providing delivery of services when said services are, or may be, needed.
Cooperative Purchase: A purchase made by the Town in conjunction with, or from, another governmental or quasi-governmental agency, such as the State of Maine, school, county, another municipality, or Mid-Coast Solid Waste Corporation.
Field Purchase: An informal purchase of supplies needed in small quantities from any vendor for day-to-day operation made directly by a Department Head or his/her designee.
Formal Bid: A written quotation received in a sealed envelope from a vendor, having been publicized, and opened at a specified day, place, and time.
Invitation to bid: The complete assembly of specific related material (whether attached or incorporated by reference) furnished to prospective.
Informal Bid: A written quotation which is not required to be opened publicly at a specified day, place, and time or an oral quotation (followed up by an email, email attachment, fax or other written communication) will be accepted from a vendor.

Annually, Public Works does a generic bid request for material and equipment rental rates, which shall be considered an informal bid.
Purchase: Buying, renting, leasing, or otherwise acquiring supplies or services for a price.
Purchasing Agent: Purchasing Agent means the Town Manager or the Town Manager’s designee.
Services: The lease or rental of equipment; the repair or maintenance of equipment owned by the Town or that is the responsibility of the Town; lease or rental of all grounds, buildings, offices, or space required by the Town; all labor furnished to the Town by persons, firms, individuals, or corporations not part of, or connected with Town government.
It shall not include:
12.1. Professional services provided to or for the Town by attorneys, architects, engineers, auditors, and other professional consultants;
12.2. Utilities such as electricity, water, sewer, etc.
Specifications: Standards, including quality, set by Department Heads as a guide to the purchasing agent and as a measure of that which successful vendors must achieve. Specifications shall be either technical specifications for bids, which shall state formulations as broadly as is practicable, yet be specific enough to meet the requirements of the department; or non-technical specifications for bids which shall state in general terms how the quality requirements will be achieved. Department Heads may rely on technical advice from suppliers, salesman and other agencies in developing specifications.
14 .Supplies: All supplies, materials and equipment.

15.  Capital expenditure – means all major expenditures of a non-recurring nature such as new buildings, major remodeling projects and major equipment purchases.  Excluded from this definition shall be all in-house projects unless the cost of the materials alone exceeds $5,000.

16.  Gifts – Gifts of funds, services, land, material, vehicles or other items may be offered to the town from foundations, corporations, governments, small businesses and individuals. If offered, gifts must be accepted by the voters of the town, usually either directly in a warrant article at town meeting or by a delegation of authority to do so to the Board of Selectmen.

17.  Grants - Grants are funds, services, material and/or vehicles given to individuals, tax-exempt nonprofit organizations or local governments by foundations, corporations, governments, small businesses and individuals. Most grants are made to fund a specific project and require some level of reporting and may require a local match. The process involves an applicant submitting a proposal to a potential funder, either on the applicant's own initiative or in response to a Request for Proposals from the funder.  If awarded, grants must be accepted by the voters of the town, usually either directly in a warrant article at town meeting or by a delegation of authority to do so to the Board of Selectmen. The appropriation of any local match of funds or in-kind services required by the grantor must also be approved by the voters of the town in the same manner.


SECTION III. APPLICABILITY
This regulation shall apply to purchases, gifts, grants and capital expenditures made by departments and agencies of the Town, except as otherwise specified herein.

SECTION IV. APPROPRIATION
Neither the purchasing agent nor any Department Head shall make any purchase or allow any purchase to be made until an appropriation has been approved by the Town Meeting or Select Board, if applicable. However, the Town Manager may permit an item to be bid prior to the approval of an appropriation if it is in the best interest of the Town and will so note in the bid materials that the bid approval is subject to the appropriation being approved at Town Meeting.
SECTION V. PURCHASING AGENT: POWERS AND DUTIES
The Town Manager shall be the purchasing agent for the Town, and supervise and manage the purchase of all supplies, materials, and equipment for use by the Town in the operation/maintenance of its departments. The purchasing agent shall also govern the sale of surplus, obsolete, or unused supplies, materials, including wood products and equipment whenever the same shall no longer be required for municipal purposes, with approval of the Board of Selectmen. The Select Board shall award bids for services or materials requiring bonding. Lease purchases containing non-appropriation language shall be awarded by the purchasing agent.


SECTION VI. PURCHASE LIMITS
The following purchasing (dollar) limits shall pertain to all purchases made by, or on behalf of, the Town of Sebago; except as otherwise provided within this policy:
A Department Head, or the Department Head’s designee, may make a field purchase when the total purchase price for the goods and service being purchased is less than $1,000.
2.   No single purchase of supplies or services exceeding $2,500 shall be made without the written approval of the Town Manager.
3.  No single purchase of supplies or services exceeding $5,000 shall be made without the approval of the Board of Selectmen,  except as provided below.
4.  Purchases made in emergency circumstances shall be considered to be exempted from the aforementioned limit. Notification that an emergency exists shall be made to the Town Manager. A discussion between the Department Head and Town Manager shall take place specifying the nature of the emergency, the source of funding for the emergency purchase, and the most advantageous manner in which to make the purchase.
5.  The Town Manager may approve certain expenditures greater than $5,000 when, in her/his judgment, no alternate suppliers exist or buying in bulk creates a purchase in excess of the stated limits.
6. The Town Manager has the authority to purchase an item in the excess of $5,000 in an emergency situation with the approval of the Board of Selectmen.

SECTION VII. COMPETITIVE BIDDING

The procedure for competitive bidding shall be as follows:
1. Competitive bids shall be required for all purchases in excess of $5,000 unless specifically exempted by this Policy or by action of the Town Meeting or Select Board.
Informal Bidding procedures shall be allowed when a purchase is required to be competitive bid if the total purchase price is more than $1,000 and less than $5,000, unless the purchasing agent recommends use of formal bidding procedures due to
project complexity, funding source requirement, or to insure that the Town is receiving the best price or value.
Formal Bidding procedures are specified in Section VIII and shall be followed by the purchasing agent or his/her designee.
The purchasing agent may make cooperative purchases without competitive bidding, if the purchasing agent determines the purchase being made after competitive bidding by the cooperative entity is at a price more advantageous than the Town would be likely to obtain by competitive bidding on its own.
The purchasing agent may waive the requirements for competitive bidding 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 purchasing agent shall file a statement of the reason(s) for waiving competitive bidding.

SECTION VIII. FORMAL BIDDING ($5,000 >)

The procedure for formal bidding shall be as follows:
Invitation for bids: The Department Head or purchasing agent shall prepare the invitation for bids, describing the Town’s requirements clearly, accurately, and completely, but avoiding unnecessarily restrictive specifications that unduly limit the number of bidders. The purchasing agent shall determine that the requirements are clearly, accurately, and completely stated within the invitation to bid. Every invitation to bid shall note that all purchases are subject to the conditions set forth in Section X, hereof.
The Department Head or purchasing agent shall publicize the invitation for bids through the following methods at least ten (10) calendar days prior to the time set for public opening of sealed bids:
2.1. Distribution to prospective bidders;
2.2. Posting at approved posting locations in Town;
2.3. Town of Sebago website;
2.4. Appropriate professional or trade publications; and/or
2.5. All other means as the purchasing agent determines is appropriate.
Bidders shall submit sealed bids to the Town prior to the date and time specified for the opening of bids. Email, attachment, or faxed bids will be accepted only if specifically noticed in the request for bid.
4.   Late bids shall not be accepted. If less than three bids are received or if in the opinion of the
Department Head or purchasing agent, no bids are acceptable, re-bidding may be required.
5.   Bids shall be publicly opened at the time and place specified in the invitation to bid. A contract may then be awarded to the responsible bidder whose bid meets all specifications required by the Town and whose bid is determined to be the most advantageous to the Town. Award may be delayed pending verification of the bidder’s credentials, insurance (if required), and references or review of the bids received.
6.  Nothing in this Section shall preclude the Town from rejecting any and all bids, as provided in Section X, hereof.

SECTION IX. INFORMAL BIDDING ($1,000 to $5,000)

The procedure for informal bidding shall be as follows:
Request for Bids: The Department Head or purchasing agent shall prepare the request for bids, describing the Town’s requirements clearly, accurately, and completely, but avoiding unnecessary restrictive specifications for requirements that unduly limit the number of bidders. The purchasing agent shall determine that the requirements are clearly, accurately, and completely stated within the request for bids. Every request for bids shall note that all purchases are subject to the conditions set forth in Section X, hereof.
The purchasing agent or Department Head shall publicize the request for bids through:
2.1. Distribution to prospective bidders;
2.2. Town of Sebago website;
2.3. Professional or trade publications (if appropriate).
Bidders shall submit bids to the Town prior to the date and time specified for the receipt of bids. If less than three bids are received or if in the opinion of the
Department Head or purchasing agent, no bids are acceptable, re-bidding may be required.
Late bids shall not be accepted.
SECTION X. ADMINISTRATIVE PROCEDURES & CONDITIONS
Competitive bids shall be administered by the purchasing agent and shall be subject to the following conditions:
The Department Head or purchasing agent shall establish a bid master file which
includes a check-off sheet and all required documentation including, but not limited
to, the following:
1.1. Bid specifications
1.2. Conflict of Interest form
1.3. Copy of advertising/web postings and where
1.4. Mailing/contact list
1.5 Bidder Information Form
1.6. Bid response Forms
1.7. Bid tabulation
1.8. Award letter/rejection letters (required for Formal Bidding only)
1.9. Post bid results on the Town website
1.10. Notes from any bid specification review meetings with participant roster
(required for Formal Bidding only)
Bid format:
2.1. Bid packages will be, whenever possible, standardized.
2.2. Bid specifications will be, whenever practical, in a standardized format depending on the category of goods or services sought.
2.3. Establishing bids specifications shall be the responsibility of the Department Head or purchasing agent.
Bid advertising shall follow the procedures specified in Sections VII and VIII.
Request for Bids shall be mailed or advertised at least ten (10) calendar days prior to the deadline set for the receipt of bids.
The Department Head or purchasing agent may hold a bid specification meeting when a particular project is complex or when it will clarify the project or service required.
The meeting shall be open to all interested perspective bidders. Said meeting time and place shall be included in the bid documents and all advertisements.
Bids shall be noted with the time and date received.
The Department Head or purchasing agent shall keep a record of all bids submitted, and such records shall be open for inspection.
All bidders shall be notified in writing of bid results within ten days after the bids are opened for Formal Bidding only.
Tie bids shall be resolved by the Board of Selectmen.
All bids shall be awarded on the basis of the bid most advantageous to the Town, which may or may not be the lowest bidder.
The Town reserves the right to reject any and all bids, or to accept the bid that appears to be in the best interest of the Town, investigate the qualifications of any bidder, and to waive or not waive any and all formalities in the bids when making an award.

If an award is made to other than the low bidder, the purchasing agent shall file a statement of the reasons for determining that the low bid was not the bid most advantageous to the Town, together with all papers relating to the bidding process for the Formal Bidding process only, unless required as part of a grant.
Subject to Section X (10), (11), and (12), the Town may give preference to local bidders For purposes of this section, “Located in Sebago” shall mean bidders whose company headquarters are in Sebago and/or who pay excise tax on their vehicles in Sebago and/or who pay personal property tax in Sebago. Individuals shall be classified as “Located in Sebago” if they are residents of the Town of Sebago. The Town retains custody of all bids submitted, pursuant to this Policy.

The Board of Selectmen shall determine bid event is null and void under the following conditions: if bid conditions are altered, changed, incomplete or modified after the request for bids is poised; or if deadlines for submission and review are not complied with.
SECTION XI. DUTIES OF DEPARTMENT HEADS

Determine acceptable quality of commodities and supplies to be purchased.
The Department Heads are empowered to reject any unacceptable supply of goods and or materials provided to the Town by a vendor on the grounds of low quality. The Department Head shall notify the purchasing agent of the rejection and supply a written report supporting the rejection.
Prepare requisitions with an eye towards cooperative purchasing, and keep corresponding records to facilitate correct accounting charges. Department Heads shall be responsible for signing off on invoices for goods and services purchased by their department.
When appropriate, report to the purchasing agent the following:
4.1. Items beyond use;
4.2. Items being replaced or to be replaced;
4.3. Items no longer of use to the department operations.
Maintain adequate supplies on hand to minimize the need for direct field purchases.
All other duties as outlined in this document.

SECTION X. GRANT PROCEEDURES

  • Grant Applications.  Any individual or organization in the Town of Sebago who wishes to apply for grants on behalf of the Town shall submit a Grant Application Form to the Town Manager and obtain approval before submitting a grant application to the grantor.  This is to allow coordination of grant requests. The Town Manager shall review all applications of grants submitted on behalf of the Town of Sebago.  If the grant application does not exceed $5,000.00 then he/she can approve or deny the process to continue.  Grants that exceed $5,000.00 in nature need to be brought to the Board of Selectmen for approval.  (Attached Appendix A – Grant Application Form)
  • Acceptance of Grants.  The voters of the Town of Sebago must accept any grants awarded on behalf of the Town of Sebago.  The Board of Selectmen will review grants won and will make recommendation to accept or deny the grant to the voters at a regular or special town meeting.  The voters may vote at a town meeting to authorize the Board of Selectmen to accept grants on behalf of the town.   
  • Local Match.  Many grants require a local match of funds, in-kind services, or similar local contribution.  Local matches can be donated by individuals, local groups, businesses, or town funds can be used.  The voters of the Town of Sebago must authorize any expenditure of town funds for grant local matches upon a recommendation from the Board of Selectmen at a regular or special town meeting.
  • Expenditure of Grants.   Procedures for obtaining competitive bids, record keeping, reporting and audits specified by the grantor will be followed in making purchases under the grant.  If no procedures are specified then the responsible Department Head will obtain at least three competitive bids for all purchases under the grant and will maintain bid documents and receipts for at least 3 years.  The responsible Department Head will inform the Town Manager when bids are received, purchases made, and will copy the Town Manager on all progress reports to grantors.  At the end of the grant process the responsible Department Head, administrator, or elected official will supply the office of the Town Manger with a complete Grant file, to be kept on file at the Town Manager’s Office.   At the completion of each grant the Town Manager will file a summary report to the Board of Selectmen.  


SECTION XI. GIFT PROCEEDURES

  • Acceptance of Gifts.  The voters of the Town of Sebago must accept any gifts or donations awarded on behalf of the Town of Sebago.  The Board of Selectmen will review proposed gifts and donations and will make recommendation to accept or deny them to the voters at a regular or special town meeting.  The voters may vote at a town meeting to authorize the Board of Selectmen to accept gifts and donations on behalf of the town.   
SECTION XII. SCOPE OF TOWN MANAGER’S AUTHORITY

The Town Manager shall purchase or contract for all supplies and services needed by using any department or agency which derives its support wholly or in part from the Town of Sebago, in accordance with procedures prescribed by these Regulations and such additional lawful rules, not inconsistent herewith, as the Town Manger shall adopt for the efficient internal management and operation of the Town.  

  • Exceptions.
1)      Exceptions Prohibited.  The authority of the Town Manager to make all purchases for all using departments and agencies shall not be abridged by excepting any using agency unless, by order of the Board of Selectmen, such exception is granted for a specific purpose.

  • Temporary Absences.  During periods of temporary absences of the Town Manager, the authority to implement the provisions of these regulations will be held by the Chairman of the Board of Selectmen.
  • Tax Exemptions. The Town Manager shall act to procure for the Town all Federal and State tax exemptions to which the Town is entitled.
  • Disqualification of Bidders. The Town Manager shall have the authority to disqualify bidders who default on their bids, quotations, contracts or purchase orders from receiving further awards from the Town.  Such decisions will be subject to the right of the disqualified bidder to appeal to the Board of Selectmen for a reversal or reinstatement.



  • Rejection of Bids. The Town Manager shall have the authority to reject any and all bids received in response to invitations for bids when bids are deemed non-responsive, token, collusive or otherwise non-acceptable and when such action is in the best interests of the Town.
  • Cooperative Purchasing.   The Town Manager shall have the authority to join other units of government including Federal, State, County, Municipal and Municipal sub-divisions, such as Water Districts, Sewer Districts, School Districts and Councils of Government in cooperative purchasing plans when the best interests of the Town would be served thereby and when such action is in accordance with and pursuant to law.
  • Other Duties.  The Town Manager shall perform such other duties related to the functions, duties and authorities set forth herein, as may be prescribed by the Board of Selectmen and by any applicable state or local laws or ordinances.
  • Grants. The Town Manager shall review all applications of grants submitted on behalf of the Town of Sebago.  If the grant application does not exceed $5,000.00 then he/she can approve or deny the process to continue.  Grants that exceed $5,000.00 in nature need to be brought to the Board of Selectmen for approval.  The Town Manager shall have oversight authority over purchases made under grants on behalf of the town.
  • Purchases-Real Estate and Leases.  Except in special circumstances, the Town Manager shall seek to meet the Town’s needs for real estate or leases on a competitive bases by surveying and evaluation those properties available on the market and comparing them in light of the Town’s needs.  The Town Manager may negotiate with any one or more of the owners of the real property proposed to be purchased or leased.  Any lease or real estate purchase and sales agreement negotiated by the Town Manager shall be subject to approval of the Board of Selectmen.  Request for such approval will be accompanied by a statement of facts justifying the recommendation.



Approved:  August 7, 2012
Amended: August 19, 2014





Appendix A

Grants For The Town of Sebago
Application Worksheet

What is the source of the grant (e.g. – agency, company, foundation, etc…)?  ________________________________________________________________________

How much is being requested?  $_____________ What is the local match?  $__________
Who would provide the local match (town funds, private funds,…?) _____________
What town department would benefit from the grant if won?  ___________________
What is the grant being requested for (describe items, equipment, service, etc…)?  ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
When must the application be submitted (filing date)? ____________________________

**********************
If the grant is won, what would be the commitment to maintain, house, or replace the equipment by the town?
 
Estimated cost per year?  $_______________  
Estimated number of years? ______________
Explain what the commitment would be (e.g. – service contract, vehicle maintenance costs, housing, etc.)
________________________________________________________________________________________________________________________________________________
If a vehicle, where would it be stored?_________________________________________

************************
Submitted by (name) _____________________________________ Date ____________

Department/Group/Club/Organization  ________________________________________  

*************************
Reviewed by Town Manager  ______________________________  Date:____________

Action/Recommendation:   Approve _______  Modify_______ Deny _________

*************************
Reviewed by Board of Selectmen.                     Date:____________

Action:                    Approve _______  Modify_______ Deny ____

        Form 3/12/07
TOWN OF SEBAGO

OFFICIAL BID RESPONSE FORM




Company Name:  __________________________________________

Authorized Signature: _______________________________________

Printed Name: ______________________________________________

Position: ________________________________________

Date: _____________________


UPON ACCEPTANCE BY THE TOWN OF ROCKPORT and signed below, THIS OFFICIAL BID RESPONSE FORM AND SUCH OTHER DOCUMENTS AS STATED IN THE INSTRUCTIONS AND GENERAL CONDITION TO BIDDERS, SHALL SERVE AS THE CONTRACT.

Authorized Signature: _______________________________________

Printed Name:  James M. Smith III

Position:  Town Manager

Date: _____________________
BIDDER INFORMATION


The undersigned declares that the signer of this proposal is:

        INDIVIDUAL doing business as: __________________________________

        PARTNERSHIP doing business as: _________________________________

        CORPORATION entitled: ________________________________________
                
                Organized under the laws of the State of _________ having its principal offices                 
                at: ______________________________________________________________





Authorized Signature

Printed Name and Title of Authorized Signer
        
Firm or Corporate Name  
Contact Name and Title  

Street Address  
E-mail Address  

City/Town, State, Zip Code      
Telephone Number        

Date Signed     
Fax Number      

Social Security or Federal ID Number (voluntary)                
                
CONFLICT OF INTEREST DISCLOSURE FORM


Pursuant to conforming with the intent of Town of Sebago Conflict of Interest and for the purposes of determining any possible conflict of interest in that regard, April 3, 2012bidders/vendors/agencies must disclose if any elected officials, appointed officials, or employees of the Town of Sebago are owners, corporate officers, majority stockholders, or employees of the bidding business or corporation.

Please indicate either “Yes” if any of the above statement pertains to you or “No” if it does not.

YES ____
NO   ____

If “Yes”, please fill in the information below:


NAME(S)
POSITION(S)


Authorized Signature: _______________________________________

Printed Name: ______________________________________________

Position: _______________________________

Date: _____________________



An Order to Establish Procedures for Municipal Sales and Purchases.

BE IT ORDERED BY THE BOARD OF SELECTMEN OF THE TOWN OF SEBAGO, MAINE:

That the following Municipal Purchasing Policy is hereby adopted.

Section 1.      Purpose

The purposes of this regulation are to standardize the sales and purchasing procedures of the Town of Sebago, thereby securing for the Town the advantages of a centralized and uniform sales and purchasing  policy saving the taxpayers money and increasing public confidence in the procedures for municipal sales and purchasing; to promote the fair and equitable treatment of all consumers and suppliers of goods and services; and to set forth the duties and responsibilities of department heads and Town Manager, thereby fostering interdepartmental cooperation and trust in the sales and purchasing system.

Section 2.      Definitions

A)      Approved vendors means those vendors identified by each department head to the Town Manager, who maintains a list of approved vendors for bidding purposes.  The Town Manager shall keep detailed lists for each department on file at all times.

B)      Bid most advantageous to the Town means a bid chosen on the basis of price, planned use quality of merchandise, suitability of merchandise and the service reputation of the vendor, and therefore may not necessarily mean the lowest bid received.

C)      Competitive bidding means the process of obtaining the bid most advantageous to the town for any sale or purchase, whether through formal or informal bidding procedures.

D)      Informal bid means a written or oral quotation obtained from an approved vendor, but not required to be opened publicly at a specified day, place, and time.

E)      Field purchase means an informal purchase of supplies needed in small quantities for day-to-day operation made directly by a department head or his/her designated representative from any vendor.

F)      Formal bid means a written quotation obtained in a sealed envelope from an approved vendor or through advertisement and opened at a specific day, place, and time.


G)      Cooperative purchase means 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, MSAD 61, the Portland Water District or other municipalities.

H)      Purchase means buying, renting, leasing or otherwise acquiring supplies or services for a price.

I)      Services means the lease or rental of all grounds, buildings, offices, space or equipment required by the Town, the repair or maintenance of all 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 Town Government.

J)      Specifications means standards, including quality, set by department heads as a guide to the Town Manager and as a measure of that which successful vendors must achieve.  Specifications shall be either technical specifications for bids, which shall state formulations as broadly as practicable, yet shall be specific enough to describe the requirements of the department or non-technical specification for bids, which shall state the quality required in general terms.

K)      Supplies shall mean all supplies, materials, and equipment.

L)      Capital expenditure means all major expenditures of a non-recurring nature such as new buildings, major remodeling projects and major equipment purchases.  Excluded from this definition shall be all in-house projects unless the cost of the materials alone exceeds $7,500.

M)      Sale the liquidation of Town property that is no longer required or desired.  This includes land, property, equipment and tools.  All proceeds from the sale of Town Property will be deposited into the undesignated fund balance.

Section 3.      Applicability

This regulation shall apply to all sales and purchases made by departments and agencies of the Town, except as otherwise specified herein.

Section 4.      Limits

A)      Formal Advertising.  Purchases shall be made by formal advertising whenever such method is feasible and practical under existing conditions and circumstances.

B)      Record of Bids.  The Town Manager shall keep a record of all bids submitted, and such record shall be open to proper inspection by any interested party within a reasonable amount of time.


C)      Approval        

1)      No purchase of supplies or services exceeding $500 shall be made by any Department Head without the written approval of the Town Manager.  No sale of goods or services of any value shall be made by any Department Head without the written approval of the Town Manager.

2)      No single purchase of supplies or services exceeding $5,000 shall be made by the Town Manager without the approval of the Board of Selectmen.  No sale of goods or services exceeding $2,500 shall be made by the Town Manager without the approval of the Board of Selectmen.

D)      Exclusions.  The Town Manager may approve certain expenditures greater than $5,000 when, in her/his judgment, no alternate suppliers exist or when buying in bulk creates a purchase in excess of the stated limits.

E)      Negotiation.    Notwithstanding the basic policy that negotiated procurement shall be on a competitive basis to the maximum practical extent (see Section 3F) purchases may be negotiated when one of the following circumstances is present:

1)      Small Sales and Purchases.  When the total dollar value of the purchase does not exceed $2,500.

2)      Emergencies.  When the public welfare will not permit the delay incident to advertising.  In such emergencies the Town Manager may authorize immediate negotiated purchases of supplies or services, not to exceed $7,500, that are needed to protect the best interests of the Town.

3)      Formal Advertising Impractical.  When the purchase of supplies of services for which it is impracticable or impossible to obtain competition.

F)      Negotiation Procedures & Policies.  Negotiated procurement shall be on a competitive basis to the maximum practical extent.  Whenever supplies or services are procured by negotiation, price quotations or other evidence of reasonable prices and other vital matters deemed necessary by the Town Manager shall be solicited by the maximum number of qualified sources of supplies or services consistent with the nature of and requirements for the supplies or services to be purchased, in accordance with the basic policies set forth below:


1)      Sales and Purchases - Not to Exceed $2,500 When the Town Manager considers prices to be fair and reasonable and when the total amount of a sale/ purchase does not exceed $2,500, procedures and documentation will be simplified to the maximum degree possible.  He/she shall establish such rules of procedures for such sales and purchases as he/she feels necessary to insure against abuse of the public interest.  No Town property will be sold or leased without the approval of the Board of Selectmen

2)      Sales and Purchases - $2,500 to $5,000.  Negotiated sales and purchases exceeding $2,500 but not exceeding $5,000 in total cost will be supported by a record of price quotations from three (3) competitive sources or an adequate explanation justifying the absence of such competition.  Such quotations may be obtained in writing, verbally or by such other means as may be prescribed by the Town Manager as appropriate to the circumstances.
3)      Sales and Purchases Exceeding $5,000.  Negotiated sales and purchases exceeding $5,000 in value must be approved by the Board of Selectmen prior to award.  Request for such approval will be accompanied by a full statement of facts justifying the recommendation for award.  Sales and purchases with potential values that may exceed $5,000 will be advertised twice in a minimum of three different periodicals.   Responses to these advertised bids must be made in a written format.

G)      Requisitions.  Purchases involving the immediate encumbrance of Town funds shall be made only on a written requisition submitted by the head of the requesting department in such form as required by the Town Manager.

Revision Power in the Town Manager.  The Town Manager shall examine each requisition and shall have the authority to revise it as to quantity, quality, or estimated cost; but revision as to quality shall be only with the concurrence of the using agency or department.

H)      Conflict of Interest. No person authorized to act on behalf of the town shall enter into any agreement, contract of purchase order with any individual, firm, corporation or organization in which said person has a financial interest.  This shall also include the acceptance of any gift or gratuity, directly or indirectly, from any person, firm, corporation or organization to which any purchase order or contract is, or might be, awarded, any rebate, gift or anything of value whatsoever, except where given for the express use of benefit of the Town of Sebago.

Section 5.      Scope of Town Managers Authority
The Town Manager shall purchase or contract for all supplies and services needed by using any department or agency which derives its support wholly or in part from the Town of Sebago, in accordance with procedures prescribed by these Regulations and such additional lawful rules, not inconsistent herewith, as the Town Manger shall adopt for the efficient internal management and operation of the Town.

A)      Exceptions.


1)      Exceptions Prohibited.  The authority of the Town Manager to make all purchases for all using departments and agencies shall not be abridged by excepting any using agency unless, by order of the Board of Selectmen, such exception is granted for a specific purpose.

2)      Temporary Absences.  During periods of temporary absences of the Town Manager, the authority to implement the provisions of these regulations will be held by the Chairman of the Board of Selectmen.

B)      Tax Exemptions. The Town Manager shall act to procure for the Town all Federal and State tax exemptions to which the Town is entitled.

C)      Disqualification of Bidders. The Town Manager shall have the authority to disqualify bidders who default on their bids, quotations, contracts or purchase orders from receiving further awards from the Town.  Such decisions will be subject to the right of the disqualified bidder to appeal to the Board of Selectmen for a reversal or reinstatement.

D)      Rejection of Bids. The Town Manager shall have the authority to reject any and all bids received in response to invitations for bids when bids are deemed non-responsive, token, collusive or otherwise non-acceptable and when such action is in the best interests of the Town.

E)      Cooperative Purchasing.   The Town Manager shall have the authority to join other units of government including Federal, State, County, Municipal and Municipal sub-divisions, such as Water Districts, Sewer Districts, School Districts and Councils of Government in cooperative purchasing plans when the best interests of the Town would be served thereby and when such action is in accordance with and pursuant to law.

F)      Other Duties.  The Town Manager shall perform such other duties related to the functions, duties and authorities set forth herein, as may be prescribed by the Board of Selectmen and by any applicable state or local laws or ordinances.