[HISTORY: Adopted by the Town Board of the
Town of Guilderland 7-12-2022 by L.L. No. 8-2022.[1] Amendments noted where applicable.]
It is the policy of the Town to award contracts for the purchase
of goods and services to the lowest bidder at the lowest quote unless
there is a determination of "best value" to award a contract to another
responsible bidder. With the exceptions noted herein, all goods and
services shall be procured pursuant to competitive bidding as set
forth in this article and in General Municipal Law (GML) § 103.
Goods and services that are not required by law to be procured by
competitive bidding shall be procured in a manner as to assure the
prudent and economical use of public moneys in the best interest of
taxpayers, and to facilitate the purchase of goods and services of
maximum quality at lowest possible cost.
This policy shall be reviewed annually by the Town Board at
its organizational meeting or as soon thereafter as is reasonably
practicable. The Comptroller shall be responsible for conducting an
annual evaluation of the effectiveness of this policy and its procedures,
an evaluation of control procedures established to ensure compliance
with this policy, and informing the Town Board of any recommended
changes.
Unless otherwise directed by the Town Board, this article is
not applicable to:
A.
The purchase of products and services under $3,000, and other special
department purchasing thresholds approved by the Town Board.
B.
The procurement of professional and technical services, under General
Municipal Law § 104-b(2)(F), that require special or technical
skill, training or expertise, are subject to state licensing or testing
requirements, and require substantial formal education or training
as a necessary prerequisite to the performance of the service. Professional
and technical services shall include, but not be limited to, attorney,
physician, engineer, insurance broker, certified public accountant,
investment management services, printing services involving extensive
writing, editing or artwork, property management, computer software,
network management, and management consulting services. The Town Board
may require formal bidding for awarding a contract for professional
services and shall approve a professional services agreement.
C.
Procurements under General Municipal Law § 103(3) (county
contracts); General Municipal Law § 104 (certain state and
federal contracts); General Municipal Law § 103(16) (piggybacking
on certain government contracts); General Municipal Law § 104-b
(state contracts); State Finance Law § 175-b (agencies for
the blind or severely handicapped); Correction Law §§ 184
and 186 (articles manufactured in correctional institutions).
D.
Emergency purchases under General Municipal Law § 103(4)
that due to an accident or other unforeseen occurrence or condition
whereby circumstances affecting public buildings, public property
or the life, health, safety or property of the residents of the Town
require immediate action which cannot await competitive bidding, quotes
or prior approval. When circumstances warrant, the Town Board shall
approve emergency purchases. In the absence of an opportunity for
Town Board approval, the Town Supervisor shall authorize emergency
purchases, with notice to the Town Board.
E.
Sole-source procurements. Competitive bidding is not required under
General Municipal Law § 103 where there is only one possible
source from which to procure goods and services required in the public
interest, such as in the case of certain patented goods and services
or public utility services. Required quotes may not be required in
cases where a manufacturer must be used and the product has no reasonable
equivalent. The department head shall document the sole-source procurement
on a justification form provided by the Comptroller.
F.
Single source. "Single source" means a procurement in which although
two or more offerers can supply the required commodities or services,
the department head, upon written findings setting forth the material
and substantial reasons therefor, may procure the commodities or services
from one offerer over the other. A single source could be a distributor/wholesaler/retailer
that has a contractual agreement for a specific territory to the exclusion
of others. The department head shall document the single-source procurement
on a justification form provided by the Comptroller.
A.
Types of procurements.
(1)
Purchase of products or services. The acquisition of commodities,
materials, supplies, equipment or other similar items with no more
than incidental labor required shall be procured as follows:
|
Amount of Purchase (see § 3 below)
|
Requirements
|
|---|---|
|
Less than $3,000
|
Discretion of department head
|
|
$3,001 to $10,000
|
2 written or verbal quotes
|
|
$10,001 to $20,000
|
3 written quotes
|
|
Greater than $20,000
|
Formal bid procedures
|
(2)
Public works contract. Contracts for services, labor, construction,
repairs and/or maintenance or other work that include the furnishing
of supplies or materials incidental to the work shall be procured
as follows:
|
Amount of Purchase [see Subsection A(3) below]
|
Requirements
|
|---|---|
|
Less than $5,000
|
Discretion of department head
|
|
$5,001 to $20,000
|
Two written or verbal quotes
|
|
$20,001 to $35,000
|
Three written quotes
|
|
Greater than $35,000
|
Formal bid procedures
|
(3)
Determination of threshold purchase amount. The determination of
the threshold amount of a purchase shall consider the reasonably expected
aggregate amount of all purchases of the same commodities or services
to be made within the twelve-month period commencing on the date of
purchase. Purchases shall not be artificially divided for the purpose
of satisfying or avoiding a purchase threshold requirement.
B.
Required documentation.
(1)
Verbal quotes. Verbal quotes shall be documented, including date,
description of items or details of the purchase, price quoted, and
name of the contact person at the firm, on a quote sheet and forwarded
as part of the documentation for payment. An approved purchase order
is required prior to purchasing.
(2)
Written quotes. Written quotes can be written, faxed or emailed and
shall be retained and forwarded as part of the documentation for payment.
At a minimum, this documentation shall include the date, description
of the purchase, price quoted, and name of the contact person at the
firm. An approved purchase order is required prior to purchasing.
(3)
Formal bid procedures. The formal bid procedure shall involve the preparation of a request for proposals (RFP) with specifications of the requested materials, standards for considering responses, and evaluation criteria. The department head shall receive approval from the Town Board to issue the RFP. The Town Clerk shall publish the RFP in an official Town newspaper and, with input from the department head and staff, advertise the RFP in a manner to generate fair competition among multiple vendors. The Town Clerk shall receive and publicly open the responses to the RFP at the specified date, time and place set forth in the RFP. The Town Clerk shall tabulate the responses and provide a copy to the department head. The department head shall prepare a report for the Town Board containing their recommendations for the award to the lowest and best responsible bidder or bidder with the best value as provided in § 85-5. The Town Board shall review and, if deemed appropriate, award the contract.
(4)
A good-faith effort shall be made to obtain the required number and
type of quotes or bids. If the department head is unable to obtain
the required number or type, the department head shall document the
attempts. In no event shall the failure to obtain the required number
of type of quote be a bar to the procurement. The unintentional failure
to comply with this chapter or the provision of General Municipal
Law § 104-b shall not be grounds to void action taken or
provide a basis for a cause of action against the Town or any officer
or employee.
(5)
Any purchase made by using federal funding shall be completed and
monitored by adhering to the requirements in the Uniform Administrative
Requirements, Cost Principles and Audit Requirements for Federal Awards
(Uniform Guidance), Title 2, Subtitle A, Chapter II, Part 200, as
may be amended.
A.
Pursuant to NYS Labor Law § 816-b, the Town requires that
all contractors and subcontractors entering into any construction
contract with the Town have established apprenticeship agreements
appropriate for the type and scope of work to be performed under the
contract that have been approved by the NYS Commissioner of Labor.
Such contractor must provide proof of such apprenticeship participation
before entering into a construction contract with the Town.
B.
All contractors and subcontractors entering into any construction
contracts with the Town shall make every effort to employ apprentices
that reside in the Town.
C.
CONSTRUCTION CONTRACT
PARTICIPATION or PARTICIPATE
Definitions. For purposes of this section, the following definitions
shall apply:
Any contract with a value in excess of $300,000 involving
the construction, improvement, rehabilitation, installation, alteration,
renovation, demolition, or otherwise providing for any building, facility,
or physical structure of any kind.
In a New York State registered apprenticeship program means
that the contractor or subcontractor is a signatory to a collective
bargaining agreement with a labor organization which sponsors an apprentice
program registered with the New York State Department of Labor; or
individually sponsors an apprenticeship program registered by the
New York State Department of Labor; is signatory to or otherwise bound
by a project labor agreement covering the project which provides for
referral of apprentices. In all cases, such apprenticeship program
must be specific to the type and scope of work that is being performed
and must have a graduation rate of at least 30%, as determined by
the New York State Department of Labor.
A.
Standards for best value. Goods and services procured and awarded
based on best value are those that the department head determines
are of highest quality while being the most cost-efficient. "Best
value" is used as a basis for awarding contracts to the offerer which
optimizes quality, cost and efficiency, among responsive and responsible
offerers. The determination of quality and cost-efficiency shall be
based on objectively quantified, described and documented criteria,
which may include, but shall not be limited to, cost of maintenance;
proximity to the end user if distance or response time is a significant
term; durability; availability of replacement parts or maintenance
contractors; longer product life; product performance criteria; and
quality of craftsmanship.
B.
Documentation. Whenever any contract is awarded based on best value
instead of lowest responsible bidder, the basis for determining best
value shall be thoroughly and accurately documented. All contracts
awarded based on best value shall require Town Board approval.
A.
General.
(1)
The purchasing procedures employed shall comply with all applicable
laws and regulations of New York State and shall be subject to Town
Board approval.
(2)
No Town employee or family member, as stated in the Town of Guilderland
Code of Ethics, shall be interested financially in contracts entered
into by the Town as defined in General Municipal Law § 800.
B.
Request for the payment of an invoice shall be made by the department
head on forms provided by the Comptroller's Office. The following
procedures shall be followed to document and support all claims:
(1)
Department head. The department head is responsible to ensure that:
(a)
Compliance with laws and policies covering procurement and purchasing.
(b)
No expenditure shall be made or obligation authorized unless
an appropriation has previously been made and there is, at the time,
a sufficient unencumbered balance for the appropriation.
(c)
There are sufficient funds in the proposed budget line or has
made an appropriate request for a budget amendment to the Comptroller
and Town Board as necessary.
(d)
Any employee violating the policy regarding unauthorized purchases
may be held personally accountable for the purchases. Violation of
the purchasing policy may result in disciplinary action, up to and
including dismissal.
(e)
Goods and services are requisitioned in such a way as to allow time for competitive bidding, ordering, and delivery of materials, except for emergency purchases as detailed in § 85-3D.
(f)
Adequate documentation of all action taken in connection with
each method of procurement is maintained.
(2)
Comptroller (or designee). The Comptroller shall ensure that:
(a)
The claim contains required documentation, signatures, and approvals.
(b)
The claim is a valid, legal, and necessary obligation incurred
by an authorized employee, in its proper form, is mathematically correct,
does not include charges previously paid, and complies with all Town
policies and procedures.
(3)
Fiscal Officer (or designee). The Fiscal Officer shall ensure that:
(a)
There is an unencumbered balance and adequate funds available
in the proposed budget line for the proposed purchase.
(b)
The claim is a valid, legal, and necessary obligation incurred
by an authorized employee, in its proper form, is mathematically correct,
does not include charges previously paid, and complies with all Town
policies and procedures.
(4)
Finance clerk. The Finance Clerk shall prepare the proposed check
run for paying the claim properly processed under this policy and
shall issue the check in payment of the claim after the Town Supervisor
has reviewed and signed the proposed check run.
C.
Exceptions to purchasing requirements.
(1)
The use of petty cash to reimburse an employee for authorized incidental
purchases as authorized by the Town Board. The use of petty cash should
not be considered as a substitute for regular purchasing procedures.
(2)
Direct payables. A direct payable is used for transactions that are
preapproved and contractual in nature, or which have already taken
place, and where other purchasing methods would not apply, including:
(a)
Utilities: phones, gas and electric.
(b)
Insurance benefits: health, dental and other personnel expenses.
(c)
Postal fees.
(d)
Police contraband fund.
(e)
Bond payments (bank transfer).
(f)
Retirement disbursement to New York State.
(g)
Payment of county taxes.
(h)
"Pass through" grants.
(i)
Payroll direct payables.
(j)
Refunds.
(3)
Travel and conference expenditures. Travel and conference expenses
shall be approved in advance by the department head pursuant to the
travel policy. Preapproval by the department head or Town Supervisor
is required for all overnight travel. These expenses are reimbursable
on the claim form, or preapproved payment may be made on a Town credit
card.
Town-issued credit cards may be used by authorized persons for
purchases authorized under this policy, as follows:
B.
Persons are authorized to use Town-issued credit cards under the
following conditions:
(1)
All cardholders shall sign the acknowledgment of card receipt and
cardholder agreement.
(2)
In no event can the purchases on a credit card circumvent the purchase
order process. All transactions require a purchase order to be issued
to the credit card company.
(3)
Credit cards are to be used only for authorized Town purchases.
(4)
No sales tax is to be charged on any purchases except for gas, restaurants
and out-of-state hotel bills.
(5)
Any misuse of the credit card shall result in revocation of the card
and, if necessary, appropriate disciplinary action.
D.
Credit cards should not be used for vendors with which the Town has
an established credit account.
E.
If it is necessary to make frequent credit card purchases at the
same local vendor, the establishment of a credit account with that
vendor may be warranted.
F.
All purchases of goods or services transacted with a credit card
shall comply with all other sections of this policy.
G.
All required documentation shall be promptly forwarded to the Town
Comptroller's Office so that any charges incurred are paid within
the applicable grace period to avoid incurring finance charges.
A.
General. Each year, the Town Board shall designate, by resolution,
the Town departments that are authorized to use petty cash funds,
the purpose(s) for the use of petty cash funds, and the authorized
amounts.
B.
Process.
(1)
Amount. Unless otherwise approved by the Town Board, the amount of
petty cash funds shall not exceed $300 per authorized department.
Any disbursements from petty cash funds shall not exceed $25 for any
single transaction.
(2)
Replenishment. Petty cash funds may be replenished by an authorized
Department providing the Comptroller with the following: i) signed
claim form listing all disbursements from petty cash funds since the
date that funds were last replenished; and ii) receipted bills supporting
such disbursements. The Comptroller shall replenish petty cash funds
from the appropriate budget line(s) in an amount equal to the total
of approved disbursements.
(3)
Authorized department responsibility. A department head whose department
is authorized to use petty cash funds shall:
(a)
Designate a department employee who is responsible for the safekeeping
of funds in a safe and secure location.
(b)
Record all petty cash transactions in a written account log.
(c)
Maintain original receipts supporting the use of petty cash.
(d)
Reconcile on a monthly basis the petty cash on hand and unreimbursed
receipts against the authorized petty cash amount.
(e)
Provide a yearly accounting of the petty cash account to the
Comptroller.
Any Town employee or family member, as stated in the Town's
Code of Ethics, who has, will have, or acquires an interest in any
actual or proposed contract with the Town shall publicly disclose
the nature and extent of such interest, in writing, to the Town Board
as soon as the person has knowledge of an actual or prospective interest.
This written disclosure shall be made part of the official minutes
of the Town Board. If an employee has a reason to believe that the
person may have a conflict of interest, the Town Attorney should be
contacted immediately.
