Town Policy - Procurement

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The following is an excerpt from the Town's Financial Policies.  Section 17 d. outlines the Town's policy for bids and contracts:

17. Procurement - No order shall be placed by any Town employee, contractor or representative that in any way encumbers or obligates the Town until after that person has received an approved purchase order.  The Town will not be held responsible for any order placed by any employee, contractor or representative if the vendor has not received an approved purchase order before delivery of services or goods.  The following policies will provide guidelines for all procurement.

a. Local preference - When all other factors are the same, the Town encourages staff to purchase locally provided the cost is within 10% of other bids.  Factors may include quality of product, quality of service, delivery, maintenance, and other issues that may be relevant.

b. Recycle - The Town encourages recycling and environmental concerns.  When all other factors are the same, the Town encourages staff to purchase recycled products provided the cost is within 10% of other bids.

c. Purchase order approvals - Requests for purchase orders will be approved by Staff, Department Directors and/or the Finance and Administrative Services Director, based on the amount.

d. Bids and contracts -The Town recognizes the need to use outside sources for providing Professional Services (consultants), for constructing Capital Projects (vendors & contractors) and for providing services for day-to-day operations and maintenance.  The Town requires staff to solicit bids for any purchase of goods over $150K or services over $100K. Council may waive the bid requirement for purchases of services less than $100K.  Selection of vendors, contractors or consultants may be based on past experience with the Town, knowledge of the Town and region, philosophy of the nature of the job, availability of time, quality of product, quality of service and material, maintenance, warranties, price, and such other criteria as deemed appropriate for a particular public project.  Town Council shall approve contracts for the purchase of goods over $150K or contracts for services over $100K by resolution/ 

18. When bids are required, a competitive process shall be initiated  The request for proposals shall include an adequate description of the work to be completed, any specifics which may be required of the vendor, all contractual terms, and conditions applicable to the public project.  Bids shall be opened publicly at the time and place designated in the invitation for bids.The amount of each bid and such other relevant information as may be specified by rules, together with the name of each bidder, shall be entered on a record and open to public inspection.  After the time of the award, all bids and documents shall be open to public inspection.  The Town shall not be obligated to select the lowest bidder, but shall select based on the established criteria in the invitation to bid. 

19. Exceptions – In certain cases, the procurement process may hinder the efficient operation of the Town.  The cost of processing purchase orders, invoices, and payments make it practical that some purchases be exceptions to the procurement code.  In the following cases, alternative processes are followed:

a. Minor purchases may be made through Petty Cash.  Receipts are required to validate expenditures.  Petty Cash banks are secured in a locked location and amounts are immaterial.

b. Town-issued credit cards (purchasing cards/P-cards) may be used for purchases up to the user’s credit limit for items approved in the budget.  Users of Town Purchasing Cards are subject to the Purchasing Card Policy and increases to limits go through approval channels similar to those of requisitions/purchase orders. 

c. Items of a recurring nature, such as payments to insurance providers, may be set up as recurring invoices with Finance and Administrative Services Department authorization.  Department approval of monthly invoices is still required, but requisitions and purchase orders are not.

d. Emergencies - In the event of natural disasters, accidents or other emergencies where the health, safety or welfare of the community is at risk the procurement requirements may be waived by the Manager.  The staff will notify the Council of any emergency immediately identifying the emergency and any purchase that may be required.