Town of Malta, NY Procurement Policy

Less than $20,000 but greater than $3,000 requires written request for proposal (RFP) and written/fax quotes from three vendors.

[Amended 1-3-2011 by Res. No. 11-2011]

Less than $3,000 but greater than $500, require quotes from two vendors.

[Amended 1-6-2003]

Less than $500 are left to the discretion of the purchaser.

[Amended 1-6-2003]

All estimated public works contracts of:

Less than $35,000 but greater than $10,000 requires a written RFP and fax/proposals from three contractors.

[Amended 1-3-2011 by Res. No. 11-2011]

Less than $10,000 but greater than $1,000, require quotes from two vendors.

[Amended 1-6-2003]

§ 31-7 Approved purchase order required for certain Town Hall, Court, and Parks and Recreation Department expenditures.

Less than $1,000 are left to the discretion of the purchaser.

[Amended 1-6-2003]

Any written RFP shall describe the desired goods, quantity and the particulars of delivery. The purchaser shall compile a list of all vendors from whom written/FAX/oral quotes have been requested and the written/FAX/oral quotes have been offered.

All information gathered in complying with the procedures of this section shall be preserved and filed with the documentation supporting the subsequent purchase or public works contract.

§ 31-4 Acceptance of lowest bid required; exceptions.

The lowest responsible proposal or quote shall be awarded the purchase of public works contract unless the purchaser prepares a written justification providing reasons why it is in the best interest of the Town and its taxpayers to make an award to other than the low bid. If a bidder is not deemed responsible, facts supporting that judgment shall also be documented and filed with the record supporting the procurement.

§ 31-5 Inability to obtain required number of proposals and quotations.

A good faith effort shall be made to obtain the required number of proposals or quotations. If the purchaser is unable to obtain the required number of proposals or quotations, the purchaser will document the attempt made at obtaining the proposals. In no event shall the inability to obtain the proposals or quotes be a bar to the procurement.

§ 31-6 Exceptions to procurement policy.

Except when directed by the Town Board, no solicitation of written proposals or quotations shall be required under the following circumstances:

Acquisition of professional services or services requiring special or technical skill, training or expertise. If directed by the Town Board to request proposals for professional services, the Town Board reserves the right to contract with any responsible proposer based on a determination that the selected proposal is more responsive to the request for proposal and may negotiate with any proposer.

[Amended 1-6-2003; 1-7-2008 by Res. No. 20-2008]

Emergency purchases pursuant to § 103(4) of General Municipal Law.

[Amended 1-6-2003]

Sole source situations.

Goods purchased from agencies for the blind or severely handicapped.

Goods purchased from correctional facilities.

Goods purchased from another governmental agency.

Goods purchased as surplus or secondhand.

[Amended 1-6-2003]

Goods purchased for less than $250.

Public works contracts for less than $5,000.

Goods purchased under state contract.

[Added 1-6-2003]

Purchases of material, equipment or supplies, or to contract for services (other than services subject to Article 8 or 9 of the Labor Law) through a contract established by any county in the state.

[Added 1-5-2004]

Goods purchased from Federal General Services Administration Schedule 70 (information technology and telecommunications hardware, software and professional services), e-government and defense supply contracts.

[Added 1-3-2012 by Res. No. 9-2012]

Goods/services purchased from County Public Works contracts.

[Added 1-3-2012 by Res. No. 9-2012]

Goods or services as may be required through the use of a contract let by the United States of America or any agency thereof, any state or any other county or political subdivision or district therein, provided that such contract ("piggybacking") is let in a manner that constitutes competitive bidding consistent with state law and made available for use by other governmental entities.

[Added 1-7-2013 by Res. No. 10-2013]

Goods or services, as may be required, through the use of a membership cooperative purchasing organization in which the Town of Malta is allowed to participate, provided that such contract is let in a manner that constitutes competitive bidding consistent with state law and made available for use by other governmental entities or members (“piggybacking”).

[Added 9-6-2021 by Res. No. 139]

[Added 9-3-1996; amended 1-6-2003; 1-7-2008 by Res. No. 20-2008]

The Town Board hereby establishes a policy requiring an approved purchase order for all Town Hall, Court, and Parks and Recreation Department expenditures exceeding $500.[1]

Editor's Note: Former § 31-8, Approved purchase order required for certain Parks Department expenditures, added 1-5-1998, which immediately followed this section, was repealed 1-6-2003.

§ 31-8 Individuals responsible for purchasing.

[Amended 1-7-2013 by Res. No. 10-2013; 1-6-2014 by Res. No. 6-2014; 1-5-2015 by Res. No. 10; 1-8-2018 by Res. No. 21; 1-7-2019 by Res. No. 23; 1-6-2020 by Res. No. 22; 1-4-2021 by Res. No. 21; 1-3-2022 by Res. No. 20; 1-9-2023 by Res. No. 22]

In compliance with General Municipal Law § 104-b.2(f), policies and procedures shall contain provisions which, among other things, identify the individual or individuals responsible for purchasing and their respective titles. Such information shall be updated annually. The Town authorizes the following:

Department	Title	Name
Town Board	Supervisor	Mark E. Hammond
Comptroller	Comptroller	Julia Smith
Comptroller	Account Clerk	Meagan Conley Deborah Tanski
Building and Planning	Building and Planning Director	Jaime O'Neill
Buildings and Grounds	Buildings Maintenance	Terry Barnes Kevin Thull, John Silverstruck
Town Clerk	Town Clerk	Jennifer Holmes
Tax Receiver	Tax Receiver	Candace Schmidt
Assessor	Assessor	Rae Lyn Dussault
Highway	Highway Superintendent	Roger Crandall
Highway	Highway Account Clerk	Nancy Fodera
Highway	Working Supervisor	Brian Cline, Stephen Gori
Highway	Mechanic	Kevin Thompson, Richard McKeever
Court	Clerk to the Town Justice	Jennifer Miller
Parks and Recreation	Recreation Director	Kristan Gottmann
Youth	Youth Director	Barb Mazurak
Artistic	Artistic Director	Elyse Young

§ 31-9 Contract awards based on best value methodology.

[Added 7-7-2014 by L.L. No. 5-2014]

Definitions. As used in this section, the following terms shall have the meanings indicated:

BEST VALUE

The basis upon which a contract may be awarded after a competitive bid or competitive offer for the purchase of goods or services to the bidder or offeror or which optimizes quality, cost and efficiency among responsive and responsible bidders or offers. Such basis shall reflect, wherever possible, objective and quantifiable analysis. Such basis may also identify a quantitative factor for bidders or offerors that are small businesses or certified minority- or women-owned business enterprises, as defined in Subdivisions 1, 7, 15 and 20 of § 310 the Executive Law, to be used in evaluation of offers for awarding of contracts for services. Factors that may be used to determine the best value and to award a contract to other than the lowest bidder are:

Cost of maintenance for good(s) or service(s);

Durability of good(s) or service(s);

Quality of good(s) or service(s); or

(4)

Product life of good(s) or service(s).

PURCHASING AGENT

The Town Comptroller, or other appropriate officer, board, committee or agency of the Town of Malta, consistent with the purchasing policy established (and as may be amended from time to time) by the Town Board of the Town of Malta, to have the authority to award purchase contracts on the basis of best value as defined herein.

The best value award methodology. When developing solicitation documents for competitive bids or competitive offers for the award of purchase contracts, including contracts for service work, but excluding any purchase contracts necessary for the completion of a public works contract pursuant to Article 8 of the Labor Law, the Purchasing Agent may, and subject to the requirements herein and the applicable requirements set forth in the Town's purchasing policy, determine that an award of a purchase contract shall be based upon best value methodology. In making such determination, the Purchasing Agent shall consider the recommendation, if any, of the department head or designee of the department the purchase contract is being procured for. The department head or designee shall, in all instances, obtain the approval of the Purchasing Agent to utilize best value methodology prior to issuance of the competitive bid or competitive offer documents.

Requirements. Where the basis for an award of a purchase contract will be the best value offer, the Purchasing Agent shall, in all instances:

Document in the procurement record as a component of the competitive award process and in advance of the initial receipt of offers the determination of the evaluation criteria, which, whenever possible, shall be quantifiable, and the process to be used in the determination of best value and the manner in which the evaluation process and selection shall be conducted; and

Select a formal competitive procurement process in accordance with guidelines established under the Town's purchasing policy and document the determination in the procurement record. The process of selection shall include, but may not necessarily be limited to, a clear statement of need; a description of the required specifications governing performance and related factors; a reasonable process for ensuring a competitive field; a fair and equal opportunity for offerors to submit responsive offers; and a balanced and fair method of award. Where the basis for the award is best value, documentation in the procurement record shall, where practicable, include a quantification of the application of the criteria to the rating of proposals and the evaluation results, or, where not practicable, such other justification which demonstrates that best value will be achieved.

The solicitation shall prescribe the minimum specifications or requirements that must be met in order to be considered responsive and shall describe and disclose the general manner in which the evaluation and selection shall be conducted. Where appropriate, the solicitation shall identify the relative importance and/or weight of cost and the overall technical criteria to be considered by the Town in its determination of best value.

§ 31-10 Federal grant procurement requirements.

[Added 1-6-2020 by Res. No. 22]

Procurement standards. The Town of Malta does not have a centralized grants department; therefore, it is the responsibility of each department obtaining a grant to administer, and be familiar with, all grant documents and requirements. If it is a federal grant, the department should immediately notify the Town of Malta Comptroller’s office. For purposes of this policy, "department head' applies to the individual within a given department who will be responsible for the grant. The Town of Malta Comptroller’s office includes this information in completing the Town’s single audit, if the Town meets the single audit threshold. The department administering the grant shall monitor contractors to ensure their performance is in accordance with the terms, conditions and specifications of their contracts or purchase orders.

Uniform guidance compliance supplement – general information. The following financial policies have been separately reviewed and approved by the Town of Malta Town Board. These policies are incorporated into this section by reference. All of the policies below are applicable to federal grants where appropriate:

Town of Malta Procurement Policy.

Town of Malta Code of Ethics (Town Code Chapter 11).

Affirmative Action Policy (refer to Employment Policy/Employee Handbook).

Uniform guidance compliance – procurement standards. The type of purchase procedures required depends on the cost of the item(s) being purchased. (Note: if the Town’s procurement policy is more restrictive than the federal purchase methods below, departments must always follow the most restrictive policy.) There are five methods of procurement:

Micro-purchase. Purchases where the aggregate dollar amount does not exceed $3,000 (or $2,000 if the procurement is construction and subject to Davis-Bacon). When practical, the entity should distribute micro-purchases equitably among qualified suppliers. No competitive quotes are required if management determines that the price is reasonable.

Small purchase. Includes purchases up to the simplified acquisition threshold, which is currently $150,000. Informal purchasing procedures are acceptable, but price or rate quotes must be obtained from an adequate number of sources.

Sealed bids (formal advertising).For purchases over $150,000, bids (Note: Town requirements are $20,000 or above) are publicly solicited and a firm fixed price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming with all the material terms and conditions of the invitation for bids, is the lowest in price.

(a)

The sealed bid method is the preferred method for procuring construction, if the following conditions apply:

A complete, adequate, and realistic specification or purchase description is available;

[2]

Two or more responsible bidders are willing and able to compete effectively for the business; and

[3]

The procurement lends itself to a firm fixed price contract and the selection of the successful bidder can be made principally on the basis of price

(b)

If sealed bids are used, the following requirements apply:

Bids must be solicited from an adequate number of known suppliers, providing them sufficient response time prior to the date set for opening the bids and the invitation for bids must be publicly advertised;

[2]

The invitation for bids, which will include any specifications and pertinent attachments, must define the items or services in order for the bidder to properly respond;

[3]

All bids will be opened at the time and place prescribed in the invitation for bids and the bids must be opened publicly;

[4]

A firm fixed price contract award must be made in writing to the lowest responsive and responsible bidder.

(c)

Where specified in bidding documents, factors such as discounts, transportation cost, and life cycle costs must be considered in determining which bid is lowest. Payment discounts will only be used to determine the low bid when prior experience indicates that such discounts are usually taken advantage of. Any or all bids may be rejected if there is a sound documented reason.

(4)

Competitive proposals. The technique of competitive proposals is normally conducted with more than one source submitting an offer, and either a fixed price or cost reimbursement type contract is awarded. It is generally used when conditions are not appropriate for the use of sealed bids.

(a)

If this method is used, the following requirements apply:

Requests for proposals must be publicized and identify all evaluation factors and their relative importance. Any response to publicized requests for proposals must be considered to the maximum extent practical;

[2]

Proposals must be solicited from an adequate number of qualified sources; and

[3]

Contracts must be awarded to the responsible firm whose proposal is most advantageous to the program, with price and other factors considered.

(b)

The Town may use competitive proposal procedures for qualifications-based procurement of architectural/engineering (A/E) professional services whereby proposers' qualifications are evaluated and the most qualified proposer is selected, subject to negotiation of fair and reasonable compensation. The method, where price is not used as a selection factor, can only be used in procurement of A/E professional services. It cannot be used to purchase other types of services though A/E firms are a potential source to perform the proposed effort.

(5)

Noncompetitive proposals (sole sourcing). Procurement by noncompetitive proposals is procurement through solicitation of a proposal from only one source and may be used only when one or more of the following circumstances apply:

(a)

The item is available only from a single source;

(b)

The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation;

(c)

The federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the Town; or

(d)

After solicitation of a number of sources, competition is determined inadequate.

Contract/price analysis:

The Town performs a cost or price analysis in connection with every procurement action in excess of $150,000, including contract modifications [2 CFR 200.323(a)]. A cost analysis generally means evaluating the separate cost elements that make up the total price, while a price analysis means evaluating the total price, without looking at the individual cost elements.

The method and degree of analysis is dependent on the facts surrounding the particular procurement situation; however, the Department Head must come to an independent estimate prior to receiving bids or proposals [2 CFR 200.323(a)].

When performing a cost analysis, the department head negotiates profit as a separate element of the price. To establish a fair and reasonable profit, consideration is given to the complexity of the work to be performed, the risk borne by the contractor, the contractor’s investment, the amount of subcontracting, the quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work [2 CFR 200.323(b)].

(4)

The cost plus a percentage of cost and percentage of construction cost methods of contracting must not be used.

Full and open competition. All procurement transactions shall be conducted in a manner providing full and open competition consistent with 2 CFR 200.319. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, or invitations for bids or requests for proposals must be excluded from competing for such procurements.

Solicitation language.

The Town shall ensure that all solicitations incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured. Such description must not, in competitive procurements, contain features which unduly restrict competition. The description may include a statement of the qualitative nature of the material, product or service to be procured and, when necessary, must set forth those minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use. Detailed product specifications should be avoided if at all possible.

When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a “brand name or equivalent” description may be used as a means to define the performance or other salient requirements of procurement. The specific features of the named brand which must be met by offers must be clearly stated; and identify all requirements which the offerors must fulfill and all other factors to be used in evaluating bids or proposals [2 CFR §200.319(c)].

Geographical preferences prohibited. The Town shall conduct procurements in a manner that prohibits the use of statutorily or administratively imposed state, local, or tribal geographical preferences in the evaluation of bids or proposals, except in those cases where applicable federal statutes expressly mandate or encourage geographic preference. When contracting for architectural and engineering (A/E) services, geographic location may be a selection criterion provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract.

Prequalified lists. The Town shall ensure that all prequalified lists of persons, firms, or products which are used in acquiring goods and services are current and include enough qualified sources to ensure maximum open and free competition. Also, the Town must not preclude potential bidders from qualifying during the solicitation period.

Full and open competition. All procurement transactions must be conducted in a manner providing full and open competition consistent with 2 CFR 200.319. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, or invitations for bids or requests for proposals must be excluded from competing for such procurements.

Avoiding acquisition of unnecessary or duplicative items. The Town shall avoid the acquisition of unnecessary or duplicative items. Additionally, consideration is given to consolidating or breaking out procurements to obtain a more economical purchase. And, where appropriate, an analysis must be made of leases versus purchase alternatives, and another other appropriate analysis to determine the most economical approach. These considerations are given as part of the process to determine the allowability of each purchase made with federal funds.

Use of intergovernmental agreements To foster greater economy and efficiency, the Town enters into state and local intergovernmental agreements where appropriate for procurement or use of common or shared goods and services.

Use of federal excess and surplus property The Town considers the use of federal excess and surplus property in lieu of purchasing new equipment and property whenever such use is feasible and reduces project costs.

Debarment and suspension.

The Town awards contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources.

The Town may not subcontract with or award subgrants to any person or company who is debarred or suspended. For all contracts over $25,000 for commodities, and $35,000 for public works, the Town verifies that the vendor with whom the Town intends to do business with is not excluded of disqualified [2 CFR Part 200, Appendix II (1) and 2 CFR §§ 180.220 and 180.300]. This is done by the department head by checking on sam.gov and by completing the Vendor Responsibility Questionnaire.

Maintenance of procurement records. The Town shall maintain records sufficient to detail the history of all procurements. These records will include, but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, the basis for the contract price (including a cost or price analysis), and verification that the contractor is not suspended or debarred (to be supplied by the Department Head, as described above).

Settlements of issues arising out of procurements. The Town alone is responsible, in accordance with good administrative practice and sound business judgment, for the settlement of all contractual and administrative issues arising out of procurements. These issues include, but are not limited to, source evaluation, protests, disputes, and claims. These standards do not relieve the Town of any contractual responsibilities under its contracts. Violations of law will be referred to the local, state, or federal authority having proper jurisdiction.

Protest procedures to resolve dispute. The Town maintains protest procedures to handle and resolve disputes relating to procurements and, in all instances, discloses information regarding the protest to the awarding agency.

Standards of conduct. In accordance with 2 CFR §200.18(c)(1), the Town maintains the following standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts.

No employee, officer, or agent may participate in the selection, award, or administration of a contract supported by a federal award if he or she has a real or apparent conflict of interest. Such a conflict of interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract.

The officers, employees, and agents of the Town may neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts, unless the gift is an unsolicited item of nominal value.

Bonding requirements of 2 CFR 200.325. For construction or facility improvement contracts or subcontracts exceeding the simplified acquisition threshold, the Town shall require:

A bid guarantee from each bidder equivalent to 5% of the bid price.

A performance bond on the part of the contractor for 100% of the contract price.