Township of West Deer, PA Chapter 14 Contracts

[HISTORY: Adopted by the Board of Supervisors of the Township of West Deer 4-19-2017 by Ord. No. 417[1]. Amendments noted where applicable.]

[1] Editor’s Note: This ordinance also repealed former Ch. 14, Contracts, adopted 1-17-1980 by Ord. No. 135, as amended.

§ 14-1 Purpose and objectives.

A. Purpose. The purpose of this chapter shall be to establish a system of competitive bidding for the purchase of products, goods, and services in accordance with the Home Rule Charter of the Township of West Deer.

B. Objectives. The system of competitive bidding set forth herein is intended to achieve the following:

(1) Procurement of the highest quality supplies, materials, equipment and contractual services at the least amount of cost to the residents.

(2) Encouragement of open, competitive pricing.

(3) Encouragement of savings through bulk or quantity purchasing.

(4) Maintenance of lists of vendors and contractors.

(5) Assurance of vendor and contractor compliance with municipal specifications and contract terms and provisions.

(6) Administration of a system of stocking or warehousing of materials and supplies for day-to-day use.

(7) Encouragement of the purchase of goods made in West Deer Township, Pennsylvania, and/or the United States of America.

§ 14-2 Competitive bidding.

Except as otherwise set forth in Section C-1164 of the Home Rule Charter of the Township of West Deer, competitive bidding shall be required for all contracts for products, goods, and services in accordance with the following procedures and terms.

A. Contracts in excess of the base amount. For contracts and purchases in an amount in excess of the base amount specified under 53 P.S. § 68102(a) of the Second Class Township Code (as amended), the following shall apply:

(1) The Township Manager shall advertise and publish a notice for bids at least one time in at least one newspaper of general circulation in the Township. The advertisement shall be published not more than 45 days - and no less than 10 days - prior to the date of the opening of bids; provided, however, the advertisement may be published less than 10 days prior to the date of the opening of bids where an expedited process is believed to be beneficial to the Township and such period is approved by the Board of Supervisors. The published notice for bids shall contain full plans and specifications of the products, goods, or services to be purchased (or refer to the places where copies may be obtained); state the amount of any bond requirements; and state the date, time, and place of any meeting at which the Board of Supervisors - or an individual or committee appointed by the Board of Supervisors - will open and read the respective bids.

(2) The Township Manager shall announce the Township's notice for bids on the West Deer Township website not more than 45 days prior to the date of the opening of bids. The announcement shall include the information set forth in the advertisement required above in § 14-2A(1). Said website shall be generally operational and accessible to the public and to all interested bidders from the first posting until the deadline for the submission of bids.

(3) At the discretion of the Township Manager, additional notice may be given in any publication or journal devoted to the dissemination of information about the products, goods, or services being sought by the Township.

(4) The Township Manager may further solicit bids from prospective bidders by mailing, delivering, or electronically transmitting copies of the specifications and forms and/or any other information which will acquaint them with the proposed purchase or contract.

B. Contracts under the base amount. For contracts and purchases in an amount in excess of $1,000 but less than the base amount specified in 53 P.S. § 68102(a) of the Second Class Township Code (as amended), the following shall apply:

(1) The Township Manager shall request written or telephonic bids and/or price quotations from at least three qualified and responsible contractors.

(2) The Township Manager may, at his or her discretion, announce the Township's desire to receive bids on the West Deer Township website not more than 45 days prior to the award of the contract. This announcement shall include a general description of the products, goods, or services to be purchased, a statement as to where the specifications and/or other information may be secured, and the dates, time, and place for the submission of the bids. Said website shall be generally operational and accessible to the public and all interested bidders from the first posting until the deadline for the submission of bids.

(3) At the discretion of the Township Manager, additional notice may be given in any publication or journal devoted to the dissemination of information about the products, goods, or services being sought by the Township.

(4) The Township Manager may further solicit bids from prospective bidders by mailing, delivering, or electronically transmitting copies of the specifications and forms and/or any other information which will acquaint them with the proposed purchase or contract.

(5) The Board of Supervisors may award a contract to the best responsible bidder notwithstanding the Township Manager's inability to obtain a total of three written or telephonic price quotations or bids, provided the Township Manager contacted and requested a price quotation or bid from a minimum of three responsible contractors.

(6) The Township Manager shall keep a written record of all qualified and responsible contractors contacted for price quotations or bids under this section for a period prescribed by the Commonwealth of Pennsylvania General Records Retention and Disposition Schedule.

C. Specifications for bidders. When bids are sought for the erection, construction, or alteration of any public building or facility, the Manager may - upon approval of the Board of Supervisors - have separate specifications prepared for any of the phases, parts, sections, or internal or external systems of the work. When this occurs, separate bids may be required for each of those parts of the work, and the contract may be awarded to each of the best responsible bidders for each part and on a lowest total price basis.

D. Bid security. When it is deemed necessary by the Board of Supervisors to protect the interests of the Township, bid security shall be required in an amount to be determined by the Board of Supervisors upon recommendation of the Township Manager. The amount of bid security required shall be set forth in the bid specifications. Bid security may be in the form of a certified check, cashier's check, or bid bond. If a bid bond is submitted, it must be in a form approved by the Township Manager.

E. Submission, acceptance, and opening of bids.

(1) All bids submitted must be received by the Township by the date and time and at the address specified in the public notice and/or advertisement. Any bids received after the stated time shall not be accepted.

(2) Sealed bids shall be sealed, shall be identified by their specific bids on the envelope, shall be submitted at the place of opening no later than the time stated in the public notice inviting bids, and shall be opened by the Township Manager, or his or her designee, in public at the time and place stated in the public notice. The Township will maintain the confidentiality of these bids until the date and time of the bid opening.

F. Award of contracts.

(1) Contract awards by the Board of Supervisors shall be made at an advertised public meeting.

(2) The following shall apply to the Board of Supervisors' award of contracts:

(a) Awards shall be made to the best responsible bidder. In determining the best responsible bidder, the Board of Supervisors shall have the right - in addition to the amount of the bid - to take into consideration such other factors as:

[1] Delivery date.

[2] Quality of prior performance.

[3] Length of warranty.

[4] Experience and/or technical expertise.

[5] Financial condition of the bidder.

[6] Such other factors as may be permitted by law.

(b) The Board of Supervisors shall have the authority to waive minor irregularities.

(c) The Board of Supervisors shall have the authority to accept or reject any and/or all bids, or to hold all bids for 60 days or until the next regular Board of Supervisors meeting.

(d) If two or more of the bids received are for the same total dollar amount - and all other material factors, such as quality, delivery date, etc., are equal - the Township Manager may break ties by requesting each of the equal low bidders to submit, in writing, their lowest and final bid. Said tiebreaking bids shall be opened and read in public, and each of the bidders shall be informed of the time and place of the opening. If the bids are still tied, either bidder may be chosen by the Board of Supervisors at its discretion.

(e) A tabulation of bids shall be made available for public inspection.

G. Disposition of bid deposits.

(1) The Township shall return to the unsuccessful bidders any bid deposits submitted by them.

(2) A successful bidder shall forfeit any deposit made upon failure on their part to enter into a written contract with the Township within 20 calendar days after the awarding of the contract, unless an extended time is authorized, in writing, by the Township Manager.

H. Piecemeal contracts and purchases restricted. It shall be prohibited for any officer or employee of the Township to purposely evade use of the procedures for competitive bidding by making a series of purchases or contracts, each under the minimum stated thresholds, or by making several simultaneous purchases or contracts, each below that minimum amount.

I. Performance bonds.

(1) To protect the interests of the Township, a performance bond - which shall be not less than 10% nor more than 100% of the contract amount - shall be required from the successful bidder before entering into a construction contract. The amount of the bond shall be stated in the bid specifications.

(2) The Township Manager shall establish the percent of the contract price required in the performance bond for purchase of materials, supplies and equipment. If the performance bond is not furnished within 20 days after the award of the contract, the award shall be void. Deliveries, accomplishments, and guarantees may be required in all cases of expenditure.

J. Bonds for the protection of labor and materials. Any person entering into a contract with the Township for the construction, erection, installation, completion, alteration, or repair of any public work or improvement whatsoever shall, before commencing work under the contract, execute and deliver to the Township, in addition to the performance bond, an additional bond in a sum not less than 50% and not more than 100%. This determination shall be prescribed by the Township Manager and conditioned for the prompt payment of all material furnished and labor supplied, or performed, in the prosecution of the work, whether or not the material or labor entered into becomes component parts of the work or improvement contemplated. This additional bond shall be deposited with and held by the Township for the use of any interested party. This bond shall provide that every person who, whether as subcontractor or otherwise, has furnished material or supplied or performed labor in the prosecution of the work and who has not been paid for it may sue in assumpsit on this additional bond, for his or her use, and prosecute the suit to final judgment for whatever sum may be justly due to him or her, and have execution thereof. The Township shall not be liable for the payment of any costs or expenses of any suit.

K. Workers' compensation. Every contract entered into by the Township which involves the construction or doing of any work involving the employment of labor shall contain a provision that the contractor shall accept, insofar as the work covered by that contract is concerned, the provisions of the Workers' Compensation Act of 1915,[1] and its supplements and amendments, and that the contractor will insure his or her liability under that act or file with the Township a certificate of exemption from insurance from the Bureau of Workers' Compensation of the Pennsylvania Department of Labor and Industry. Any contract executed in violation of this section shall be null and void.

[1] Editor's Note: See 77 P.S. § 1 et seq.

L. Discrimination prohibited. Any contract entered into by the Township for the construction, alteration, or repair of any public building or public work may contain provisions by which the contractor agrees that, in the hiring of employees for the performance of work under the contract or any subcontract under it, no contractor or subcontractor and no person acting on behalf of the contractor or subcontractor shall, by reason of race, creed, sex, or color, discriminate against any person who is qualified and available to perform the work to which the employment relates. Violations of this provision by the contractor will constitute grounds for terminating the contract.

M. Competitive electronic auction bidding.

(1) Notwithstanding any other provision of this section regarding the requirements for competitive bidding for purchases and contracts, if the Township determines that the use of competitive electronic auction bidding is in the Township's best interest, a contract for supplies and services - but not for construction or design professional services - may be entered into by competitive electronic auction bidding.

(2) An invitation for bids shall be issued and shall include a procurement description and all contractual terms, whenever practical, and conditions applicable to the procurement, including a notice that bids will be received in an electronic auction manner.

(3) Public notice and advertisement of the invitation for bids shall be given in the same manner as provided in § 14-2A or other governing law.

(4) Bids shall be accepted electronically at the time and in the manner designated in the invitation for bids. During the auction, each bidder shall have the capability to view his or her bid rank or the low bid price. Bidders may reduce their bid prices during the auction. At the conclusion of the auction, the record of the bid prices received and the name of each bidder shall be open to public inspection.

(5) Contract awards by the Board of Supervisors shall be made at an advertised public meeting in the manner proscribed in § 14-2E.

§ 14-3 Emergency purchases.

A. In accordance with Section C-1164(5) of the Home Rule Charter of the Township of West Deer, in the event of an actual emergency and with notice being given to the Board of Supervisors, the Township Manager may directly purchase any products, goods, or services of which the immediate procurement is essential to prevent that which might vitally affect the life, health, safety, and/or welfare of citizens.

B. After having made any emergency purchase as authorized by this section, the Township Manager shall record and file the emergency purchase together with a report of the circumstances of the emergency.

§ 14-4 Cooperative purchasing.

In accordance with Section C-1164(6) of the Home Rule Charter of the Township of West Deer, the Township Manager, upon approval of the Board of Supervisors, shall have the authority to contract and/or join with other units of government, intergovernmental cooperatives, councils of governments, government purchasing associations, the commonwealth, or any other cooperative purchasing plan offering the benefits of cooperative purchasing to public entities when the best interests of the Township would be served.

§ 14-5 Effective date.

All provisions of this chapter and of the Code shall be in force and effect on and after April 20, 2017.