[HISTORY: Adopted by the City Council of the City of Altoona 11-9-2020 by Ord. No. 5773. Amendments noted where applicable.]
The purpose of this chapter is to ensure that the taxpayers
of City of Altoona receive full return on the investment of tax dollars;
City of Altoona government operates openly, efficiently, and effectively
in its public purchasing; vendors and potential vendors are treated
fairly; and all purchasing activities are conducted in such a matter
as to maintain public trust.
As used in this chapter, the following terms shall have the
meanings indicated:
A written change to an invitation for bids.
A dollar amount to be added to or subtracted from the base
bid price. The Purchasing Director may request alternate bid prices
in order to compare various options that may be in the City's
best interest.
A determination, after review, that a certain vendor will
be given the contract.
A price submitted by a vendor for a product, service, or
construction.
Any person or entity who submits a quote, proposal or bid.
The City of Altoona, Pennsylvania.
A bid submitted by a bidder on which the bidder has made
certain conditions for acceptance that are contrary to the conditions
of the IFB or that were not requested in the IFB.
A legal agreement between a vendor and the City.
The use of an existing contract held by another governmental
entity to purchase the same goods or services.
The Commonwealth of Pennsylvania's cooperative purchasing
program.
An action taken by the City to bar a vendor from doing business
with the City for a period of time.
Any functional division of the City of Altoona's Government.
The City Manager or any City employee so designated by the
City Manager.
A sudden and unexpected occurrence or condition which the
City reasonably could not foresee, posing an actual and immediate
threat to the continuance of essential normal operation of a City
Department or the need to cope with a public exigent condition.
A written, sealed bid for goods, services, or construction.
Invitation for bids.
A bidder whose principal place of business is located within
the corporate boundaries of the City of Altoona, Pennsylvania. Determination
of an in-City bidder shall be made in the sole and exclusive discretion
of the Director of Purchasing.
The purchase of goods or services where the total value is
less than $500.
A document or collection of documents or materials constituting
a solicitation for proposals or bids.
The bidder who has submitted the lowest price, has met all specifications, qualifications, and requirements of an invitation for bids, and is capable of carrying out the terms of the contract as determined by the Director of Purchasing or his or her designee using the criteria in § 557-7C(7) of this chapter.
The purchase of goods, services or construction where the
total value is greater than $19,100.
One which is merely a matter of form and not of substance
or pertains to some immaterial or inconsequential defect or variation
of a bid or proposal from the exact requirement of the solicitation,
the correction or waiver of which would not be prejudicial to the
other bidders as determined by the Director of Purchasing.
The purchase of goods, services or construction where the
total value is $500 or more, but not greater than $19,100.
A bidder who has not met all specifications, qualifications, and requirements of an invitation for bids, and/or is not capable of carrying out the terms of the contract as determined by the Purchasing Director or his or her designee using the criteria in § 557-7C(7) of this chapter.
A formal notice of the award of a bid.
A formal notice to a vendor authorizing the vendor to proceed
with work in accordance with the bid.
An open purchase order effective for a stated period of time
and not to exceed stated dollar limits to which miscellaneous individual
similar purchases can be charged.
A bidder whose principal place of business is not located
in the City of Altoona, Pennsylvania. Determination of an out-of-City
bidder shall be made in the sole and exclusive discretion of the Director
of Purchasing.
An individual, corporation, partnership of any kind, limited
liability company, trust, unincorporated association, unincorporated
business, or any other form of business or entity of any kind, whether
or not recognized under the laws of the Commonwealth of Pennsylvania.
Services provided by physicians, auditors, attorneys, architects,
engineers, graphic designers, consultants or other individuals or
organizations possessing a high degree of technical skill.
The written submission of a firm price other than by sealed
bid.
For the purpose of this chapter, a public capital improvement
shall be nonrecurring physical expenditures such as land, buildings,
or new public infrastructure but shall not include renovation or maintenance
of existing capital improvements.
Any individual designated a purchasing agent pursuant to
this manual.
A credit card, debit card, or other similar authority enabling
a purchasing agent, Department Head, or other authorized individual
to purchase materials, supplies, or services on and for the City as
provided herein.
The oral submission of a price.
A solicitation for proposals, generally used for more complex
solicitations.
A solicitation for qualifications, generally used to evaluate
the qualifications of professional services providers.
A bidder who has submitted a bid and who has met all specifications,
qualifications, and requirements of an invitation for bids, and is
capable of carrying out the terms of the contract as determined by
the Director of Purchasing or his or her designee.
The secret submission of a price that will be opened and
read aloud in a public meeting.
The purchase of goods, services, or construction from a single
vendor without competitive bid or quotes.
The act of seeking bids, proposals, or qualifications from
potential vendors.
Responsive bids from bidders that are identical in price,
terms and conditions and which meet all the requirements and evaluation
criteria set forth in the invitation for bids.
A supplier of goods, services or construction.
A list of qualified vendors maintained by the City.
A.
Authority. As authorized by Chapter C., Article X., § 10-3,
and such Commonwealth of Pennsylvania statutes as may apply, the City
Council hereby enacts this chapter to establish a system of competitive
bidding, including such definitions, publication requirements, deposit
and bond requirements, conditions, terms, rules, regulations, waivers
and exception.
B.
Applicability of provisions. All Departments of the City of Altoona
that receive appropriations from the City's adopted budget, and
all of employees of the City, shall comply with and be subject to
provisions of this chapter and any subsequent rules and regulations
adopted by resolution by the City Council, or with other procedures
approved by the City Council, for the purchase or contract of goods,
services or construction or acquisition or lease of real property.
C.
Compliance with state and federal regulations required. Wherever
applicable, all requirements set forth in state and federal grant,
loan, and assistance programs and contracts shall be satisfied. The
requirement that provides the greater restriction or highest standards
shall prevail.
D.
Appropriation and certification of funds. The City Council, through
the City's annual budgetary process, appropriates funds for all
City Departments. The Director of Purchasing, or the appropriate Department
Head, as the case may be, will certify that funds have been appropriated
before purchases are authorized.
A.
Director of Purchasing. The City Manager or any employee designated
in writing by the City Manager shall serve as the Director of Purchasing.
B.
Powers and duties. The Director of Purchasing and/or his or her designee
shall have the following powers and duties:
(1)
Implement the provisions of this chapter and any subsequent regulations
for the purpose of purchasing or contracting for goods, services or
construction.
(2)
Ensure that products or services are provided according to the contract
terms.
(3)
Supervise bid processes.
(4)
Maintain inventory control of City property and assets.
(5)
Prescribe and maintain such forms as are reasonably necessary to
the operation of this chapter.
(6)
Prepare and maintain vendors lists.
(7)
Declare a vendor or person who defaults on his/her quotations, contracts,
or obligations, or which otherwise has a record of poor or untimely
performance, as a not responsible bidder and/or disqualify or debar
such vendors or persons from receiving any business from the City
for up to five years.
(8)
Determine if prequalification of bidders is appropriate and set forth
the criteria for prequalification.
(9)
Give periodic post-purchase public notice of major purchases.
(10)
Supervise the preparations of specifications for goods, services
and construction.
(11)
Schedule and hold pre-bid conferences.
(12)
Prepare and distribute addendums to IFBs.
(13)
Ensure that all necessary documentation is maintained.
(14)
Ensure that expenditures funded by grants comply with the terms
and provisions of grant agreements.
(15)
Prepare and maintain a purchasing manual.
(16)
Provide training and guidance to City departments on purchasing.
C.
Delegation. The Director of Purchasing may delegate part or all of
his or her powers and duties to designated Department Heads and/or
other City employees pursuant to this chapter. Delegation of purchasing
approval by the Director of Purchasing shall not relieve him or her
for all responsibility thereof.
D.
Suspension. The Director of Purchasing may temporarily reduce or
suspend the purchasing authority for any City department head or other
employee for cause as determined in the sole and exclusive discretion
of the Director of Purchasing.
A.
Real estate purchase, sale, or lease. The Mayor shall execute all
contracts, regardless of amount, for the purchase, sale, lease, or
use of real estate.
B.
Public capital improvements. Authorization of contracts for the construction
of public capital improvements shall be approved by ordinance. Adoption
of the Capital Improvement Plan (CIP) by ordinance shall suffice to
meet this requirement.
C.
Major purchases. All contracts of the City involving sums in excess of $19,100, subject to adjustment pursuant to § 10.6 of the City Charter, shall be publicly bid, unless exempt from such requirement by the provision § 10.4 of the City Charter, shall be in writing and shall be executed on behalf of the City by the Mayor or, in the Mayor's absence, the City Manager.
D.
Minor purchases. All contracts of the City involving sums equal to or less than $19,100, subject to adjustment pursuant to § 10.6 of the City Charter, shall be publicly bid, unless exempt from such requirement by the provision § 10.4 of the City Charter, shall be in writing shall be executed on behalf of the City by the City Manager or his or her designee.
E.
Form of contract. Any City official or employee required to execute
a written contract may request the City Solicitor to approve the same
as to form.
A.
Determination of value. In determining bidding requirements, the
value of any goods, services, and/or construction shall be the cumulative
value over the term of any contract under which the goods, services,
and/or construction are delivered.
B.
Purchasing processes.
(1)
Incidental purchases under $500. While seeking three or more verbal
or written bids is recommended, it is not required.
(2)
Minor purchases up to $2,000. Three or more verbal bids are required.
Verbal bids must be documented and are subject to internal audit.
(3)
Minor purchases between $2,001 and $19,100. Three or more written
bids are required.
(4)
Major purchases greater than $19,100. Three or more sealed bids or
a request for proposals (RFP) process is/are required.
C.
Alternate purchasing processes.
D.
Alternate processes. As authorized by § 10.4 of the City Charter, the following procedures may be used for purchasing of goods, services, and construction under the specific circumstances described therein:
(1)
Cooperative (piggyback) purchases. The City strongly supports cooperative
purchasing where other units of government have purchased goods, services,
or construction through an open, competitive bid process. This includes
the Commonwealth of Pennsylvania's cooperative purchasing program
COSTARS or any other intergovernmental cooperative purchasing programs
as determined by the Director of Purchasing.
(2)
Emergency purchases. In the event of an emergency, the Mayor shall
have the power to suspend requirements of this chapter for such purchases
and contracts to secure such goods or services as deemed immediately
necessary to protect public health, safety, and welfare. After any
instance where the requirements of this chapter are suspended in the
event of an emergency, the Mayor shall make a full report to the Council
regarding any and all such expenditures at the next scheduled Council
meeting.
(3)
Sole source. Sole source purchasing may be authorized when only one
specific good or service will produce the desired result or is the
most appropriate for a given situation; the good or services is only
available from one source; and the use of such sole source is economically
feasible and operationally in the City's best interest. A request
for sole source purchase shall be submitted to the Director of Purchasing
and shall include a comprehensive justification.
(4)
Professional services. Contracts involving professional services
such as accounting, architecture, auditing, engineering, law, planning
and surveying may be negotiated by the Director of Purchasing or a
designee rather than competitively bid.
(5)
Services price fixed by law. Services for which the rate or price
is fixed by a public authority authorized by law to fix rates or prices
may be purchased without competitive bidding.
A.
Competitive bids. The preferred method for the City to procure goods,
services, and construction is through competitive bid processes.
B.
Bid bonds. When deemed necessary by the Purchasing Director, bid
deposits and/or bid bonds shall be prescribed in the notices inviting
bids. Upon entering into a contract, bidders shall be entitled to
return of bid deposit and/or bid bond where the Purchasing Director
has required such. A successful bidder shall forfeit any bid deposit
and/or bid bond required by the purchasing agent upon failure on his
part to enter into a contract within 10 days after the award; provided,
however, that the Purchasing Director may waive this forfeiture.
C.
Sealed bids. Procedure for sealed bids shall be as follows:
(1)
Sealing. Bids shall be submitted to the City securely sealed in an
envelope, and shall be identified on the envelope in accordance with
bid instructions.
(2)
Opening. Bids shall be opened in public at the time and place stated
in the notices.
(3)
Tabulation. A tabulation of all bids received shall be available
for public inspection.
(4)
Rejection of bids. The Purchasing Director shall have the authority
to reject all bids, parts of all bids, or all bids for any one or
more supplies or contractual services included in the proposed contract,
when the public interest will be served thereby.
(5)
Bidders in default to City. The purchasing agent shall not accept
the bid of a vendor or contractor who is delinquent in the payment
of taxes, license, or other moneys due the City.
(6)
Award of contract. The Purchasing Director shall have the authority
to award contracts pursuant to the requirements of this chapter to
the lowest responsible bidder.
(7)
Lowest responsible bidder. In making the determination of lowest
responsible bidder, the Purchasing Director may consider; the ability,
capacity and skill of the bidder to perform the contract or provide
the service required; whether the bidder can perform the contract
or provide the service promptly, or within the time specified, without
delay or interference; the character, integrity, reputation, judgment,
experience and efficiency of the bidder; the quality of performance
of previous contracts or services; the previous and existing compliance
by the bidder with laws and ordinances relating to the contract or
services; the sufficiency of the financial resources and ability of
the bidder to perform the contract or provide the service; the quality,
availability and adaptability of the supplies or contractual services
to the particular use required; the ability of the bidder to provide
future maintenance and service for the use of the subject: of the
contract; the number and scope of conditions attached to the bid.
(8)
Award to other than low bidder. When the award is not given to the
lowest bidder, a statement of the reasons for the decision shall be
prepared by the Purchasing Director.
D.
Performance bonds, labor and material man's bond and additional
bonding. The Purchasing Director shall have the authority to require
a performance bond, a labor and material man's bond and any other
bonding prescribed in the notices inviting bids, before entering into
a contract, in such form and amount as he shall find reasonably necessary
to protect the best interests of the City.
A.
Form documents. The Director of Purchasing shall provide form documents
for requests for proposals (RFPs), requests for qualifications (RFQs),
general conditions, and standard legal agreements.
B.
Most favorable proposal. Rather than the lowest responsible bidder,
the City will use the request for proposal (RFP) process to determine
and select the proposal that is the most advantageous in cost and
other factors outlined in the RFP.
A.
Except as otherwise provided in this chapter, it no City official
or employee shall purchase, contract for, or order goods, services
or construction for which funds have not been appropriated by the
City Council in the adopted budget.
C.
Anything in this chapter to the contrary notwithstanding, no contract
for goods or services shall be entered into by or on behalf of the
City, the payment obligations of which contract extend beyond the
fiscal year in which the contract is executed, unless the contract
contains an appropriations clause allowing the City to terminate the
contract if sufficient funds for that contract are not legally appropriated
by the City, or unless the contract is specifically approved by the
City Council.
Mistakes made by City officials or employees during the purchasing
process which do not substantially affect the purchase, but which
are contrary to the provisions of this chapter may be waived by the
Director of Purchasing at their discretion. Mistakes shall not include
unauthorized purchases.
A.
Purchase cards. Purchase cards are used to promote efficiency and
to reduce paperwork related to incidental and minor purchases. Purchase
cards may be issued to authorized employees and may only be used for
official City business and in compliance with this chapter to make
incidental and minor purchases. The Director of Purchasing or his
or her designee shall establish a spending limit for every purchase
card. The Director of Purchasing or his or her designee shall have
the authority to review, audit, reduce or increase the spending limit,
revoke, or cancel any City purchase card without notice. Purchase
card users are required to submit all substantiating purchasing documentation
including but not limited to bid quotes to the Finance Department.
B.
Purchase orders. Purchase orders are used to authorize the expenditure
of City funds to purchase goods, services, and construction. The Director
of Purchasing and his or her designee shall have the authority to
sign purchase orders. Department heads shall have the authority to
sign purchase orders for purchases in conformance with the adopted
budget and this chapter for up to the amount of their purchasing authority.
C.
Open purchase orders. An open purchase order may be authorized to
facilitate the repeat purchase of good, services, or construction
over the course of a fiscal year. An open purchase order shall have
a "not-to-exceed" limit in conformance with the adopted budget.
D.
Recurring expenses. A purchase order is not necessary for the payment
of a recurring expense such as a utility bill; however, a file shall
be created and maintained for every recurring expense where such file
shall include the legal authorization for the expenses and other such
documents as required by the Director of Purchasing.
No contract or purchase shall be subdivided to avoid the requirements
of this chapter.
The Director of Purchasing or his or her designee shall ensure
for proper inspection and review of all goods, services, and construction,
and shall determine conformance with any specifications or requirements
set forth in bid documents, purchase orders, or contracts. The Director
of Purchasing, Department Heads, purchasing agents, or individuals
to whom such duties may be delegated shall indicate the receipt and
acceptance of goods, services, or construction.
The Purchasing Director and every official and employee of the
City are expressly prohibited from accepting, directly or indirectly,
from any person, company, firm or corporation to which any purchase
order or contract is, or might be awarded, any rebate, gift, money,
or anything of value whatsoever, except where given for the use and
benefit of the City.
No member of the City Council or any official or employee of
the City, shall have a financial interest in any contract or in the
sale to the City or to a contractor supplying the City of any land
or rights or interests in any land, material, supplies or services;
except when a majority of the City Council determines such exception
in the best interest of the City, provided that no Councilperson whose
interest is involved shall vote on the question. Any violation of
this section with the knowledge express or implied of the person or
corporation contracting with the City shall render the contract voidable
by the City Manager or the City Council.
Unless otherwise directed by the Director of Purchasing, all
material relevant to purchase made pursuant to this chapter shall
be maintained by the Department at whose direction or upon whose behalf
a contract for goods or services is made. Notwithstanding the foregoing,
all documentation required to be submitted to the Director of Purchasing
or to the Director of Finance shall be so submitted with originals
or copies, as the case may be, to be retained by such Department,
including, but not limited to, titles, registrations, warranties,
and instructional and operating manuals. Wherever possible, such materials
shall be referenced to the applicable item or service and the contract
relating thereto.
The Director of Purchasing is authorized to prepare a purchasing
manual and additional regulations as necessary where such manual and
additional regulations may be adopted by the City Council by resolution.
A.
Introduction. Any City Department Head may propose that a vendor
be debarred from doing business with the City based upon the poor
quality of goods or services, provided the timeliness of providing
such goods or services, the breach of any warranty or contract term
or condition relating to the supplying of such goods or services,
or any other matter or reason deemed sufficient by the employee to
warrant such action.
B.
Process.
(1)
The Department Head will review all allegations, claims, circumstances,
and documentation prepared or provided and determine whether or not
to forward a proposal to debar to the Purchasing Director. If the
Department Head forwards a proposal to debar, the Purchasing Director
shall review the submittal and determine if the matter should be further
pursued.
(2)
If the Director of Purchasing determines that the matter should be
further pursued, the Director of Purchasing shall notify the vendor
by first class mail, postage prepaid, that there has been a proposal
to debar the vendor from doing business with the City, and provide
the vendor an opportunity to be heard at a hearing conducted by the
Director of Purchasing to address the facts and circumstances regarding
the matter.
(3)
Any hearing held pursuant hereto shall be informal, shall not be
subject to formal rules of evidence or procedure, and shall provide
the vendor an opportunity to review any written material regarding
the matter. The vendor shall not have the right to call witnesses
or cross-examine any City employee. A vendor may submit a written
statement, summary, or other document in support of the vendor's
position in the matter.
(4)
The Director of Purchasing shall determine the weight and credibility
to be given any documentation, evidence, and testimony submitted in
the matter.
(5)
The Director of Purchasing shall render a decision promptly and,
unless delayed for good cause, within 30 days after the hearing. The
failure of a vendor to appear at the hearing shall not prohibit the
Director of Purchasing from issuing a decision in the matter.
(6)
A vendor may be debarred for a period not to exceed five years from
the date the Director of Purchasing renders a decision.
(7)
The vendor shall have a right to appeal as may be afforded by the
Local Agency Act of the Commonwealth of Pennsylvania, and as may be
amended from time to time.
