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 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.
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.
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