[HISTORY: Adopted by the Malone Village Board 4-27-1992. Amendments noted where applicable.]
Code of Ethics — See Appendix, Part IV.
Goods and services which are not required by law to be procured pursuant to competitive bidding must be procured in a manner so as to assure the prudent and economical use of public moneys, in the best interests of the taxpayers, to facilitate the acquisition of goods and services of maximum quality at the lowest possible cost under the circumstances and to guard against favoritism, improvidence, extravagance, fraud and corruption. To further these objectives, the governing board is adopting internal policies and procedures governing all procurements of goods and services which are not required to be made pursuant to the competitive bidding requirements of General Municipal Law § 103 or of any other general, special or local law.
Generally, the official(s) responsible for making the particular procurement will make the initial determination of whether competitive bidding is required. Steps involved in making this determination, among other things, include:
A policy for determining whether it is expected that, over the course of the fiscal year, the Village of Malone will spend in excess of the competitive bidding thresholds for the same or similar items or services (e.g., checking budgetary appropriations; prior years' expenditures). Meetings of all officials authorized to make purchases will be held periodically to ensure that the objectives of this statute are met.
A procedure that legal issues regarding the applicability of competitive bidding requirements are presented, as appropriate, to the Village of Malone's legal counsel.
In the case of an emergency, analyzing that the statutory criteria are met.
In the case of a lease, analyzing that a document is a true lease and not an installment purchase contract.
In the case of a sole source, verifying that the item is required in the public interest, has no reasonable equivalent and is in fact available only from one source.
In the case of a combination of professional services and a purchase, analyzing whether the professional service is the predominate part of the transaction and is inextricably integrated with the purchase.
Except for procurements made pursuant to General Municipal Law § 103, Subdivision 3 (through county contracts, or § 104 (through state contract), State Finance Law § 175-b (from agencies for the blind or severely handicapped), Correction Law § 186 (articles manufactured in correctional institutions) or the items excepted herein, alternative proposals or quotations for goods and services shall be secured by use of written requests for proposals, written quotations, verbal quotations or any other method of procurement which furthers the purposes of General Municipal Law § 104-b.
Editor's Note: Former § 175-b of the State Finance Law was repealed by L. 1995, c. 83, § 33, eff. April 1, 1995. See § 162 of the State Finance Law.
The methods of procurement to be used are as follows:
Verbal quotations. The telephone log or other record should record, at a minimum, the date, item or service desired, the price quoted, the name of the vendor and the name of the vendor's representative.
Written quotations. Vendors should provide, at a minimum, the date, the description of the item or details of the service to be provided, the price quoted and the name of the contact.
Requests for proposals. A way to award contracts for professional services is to award them only after a minimum number of professionals are contacted and asked to submit written proposals. Requests for proposals (RFP's) are traditionally used as a means of obtaining all types of professional services. RFP's are used to obtain the services of architects, engineers, accountants, lawyers, underwriters, fiscal consultants and other professionals.
A request for proposals and evaluation of proposals may consider price plus other factors like experience, staffing and suitability for needs and may include negotiations on a fair and equal basis. The award shall be the most advantageous to the Village of Malone.
Documentation of actions taken in connection with each such method of procurement is required as follows:
An exception to the competitive bidding requirements exists for emergency situations. There are three basic statutory criteria to be met in order to fall within this exception:
That the situation arises out of an accident or unforeseen occurrence or conditions;
That public buildings, public property or the life, health, safety or property of the political subdivision's residents are affected; and
That the situation requires immediate action which cannot await competitive bidding.
Even when a governing board passes a resolution that a public emergency exists, the public interest dictates that purchases are made at the lowest possible costs, seeking competition by informal solicitation of quotes or otherwise, to the extent practicable under the circumstances.
Documentation should include verbal quotes, etc.
Secondhand equipment from other governments.
There is a statutory exception to competitive bidding requirements which permits the purchase of surplus and secondhand supplies, materials or equipment without competitive bidding from the federal or state government or from any other political subdivision or public benefit corporation within the state. However, purchases of used items from any other source (e.g. private sources like auctions or going-out-of-business sales) are not exempt from bidding requirements.
Documentation should include market price comparisons (verbal or written quotes) and the name of government.
Competitive bidding is not required under § 103 of the General Municipal Law in those limited situations when 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 or services or public utility services. Thus, for example, if the Village of Malone, acting in good faith and without intent to arbitrarily inhibit or restrict competition, determines that a particular patented item is required in a public interest and it is further determined that such item is available only from one source so that no possibility of competition exists, competitive bidding may not be required for the procurement of the item.
In making these determinations, the Village of Malone should document, among other things, the unique benefits of the patented item as compared to other items available in the marketplace; that no other item provides substantially equivalent or similar benefits; and that, considering the benefits received, the cost of the item is reasonable, when compared to conventional methods. In addition, the Village of Malone should document that, as a matter of fact, there is no possibility of competition for the procurement of the goods.
Insurance. Insurance coverage is not subject to formal competitive bidding. The Village of Malone still has the option, however, of requiring formal bidding in its policies and procedures. Documentation would include bid advertisements, specifications and awarding resolution. Alternatively, written or verbal quotation forms could serve as documentation if formal bidding is not required. Requests for proposals (RFP's) documented as indicated above may also be used.
Piggybacking on other government contracts.
[Added 5-11-2015 by L.L. No. 1-2015]
Pursuant to GML § 103(16), local governments are allowed to "make purchases of apparatus, materials, equipment or supplies, or to contract for services related to the installation, maintenance or repair of apparatus, materials, equipment, and supplies, may make such purchases, or may contract for such services related to the installation, maintenance or repair of apparatus, materials, equipment, and supplies, as may be required by such county, political subdivision or district thereon 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 if such contract was let in a manner that constitutes competitive bidding consistent with state law and made available for use by other governmental entities."
Allowance of any political subdivision authorized under the General Municipal Laws of the State of New York, to purchase any goods and/or services awarded as a result of a Village of Malone bid in accordance with the latest amendments of NYS GML 100 through 103.
Whenever any contract is awarded to other than the lowest responsible dollar offer, the reasons such an award furthers the purpose of General Municipal Law § 104-b as set forth hereinabove shall be documented as follows. Specific examples of why the contract should not be awarded to the lowest bid follow:
The Board sets forth the following circumstances and/or types of procurements that it determines would not be in the best interests of the Village of Malone to solicit alternative proposals or quotations:
In emergencies, where time is a crucial factor.
For procurements for which there is no possibility of competition (sole-source items).
For procurements of professional services, which because of the confidential nature of the services do not lend themselves to procurement through solicitation.
For very small procurements for which solicitations of competition would not be cost-effective.
Comments concerning the policies and procedures shall be solicited from officers of the Village of Malone involved in the procurement process prior to the enactment of the policies and procedures and will be solicited from time to time hereafter.
The governing board shall annually review these policies and procedures. The designated person shall be responsible for conducting an annual review of the procurement policy and for an evaluation of the internal control structure established to ensure compliance with the procurement policy.
The unintentional failure to fully comply with the provisions of General Municipal Law § 104-b shall not be grounds to void action taken or give rise to a cause of action against the Village of Malone or any officer or employee thereof.
[Added 7-8-2013 by L.L. No. 2-2013]
The Village Board of Trustees seeks to exercise its local option set forth in the New York State General Municipal Law § 103, Subdivision 1, as amended by Chapter 608 of the Laws 2011 and Chapter 2 of the Laws of 2012, which amendment authorizes the Village to award purchase contracts and contracts for services subject to competitive bidding under General Municipal Law § 103 on the basis of either the lowest responsible bidder or "best value" as defined in the New York State Finance Law § 163. Factors that may be used to enact the "best value" option, where cost efficient over time to award the good(s) or service(s) to other than the lowest bidder, are:
The Village Board may award purchase contracts and service contracts that have been procured pursuant to the competitive bidding clause of General Municipal Law § 103 wherein the award of purchase contracts or service contracts must be determined by either the lowest responsible bid or the best value of said good(s) or service(s).
The provisions of this section apply to the Village purchase contracts involving any expenditure of more than $20,000 and the Village contracts for service(s) involving expenditures of more than $35,000 but exclude purchase contracts necessary for the completion of a public works contract pursuant to New York State Labor Law Article 8 and exclude any other contract that may, in the future, be excluded under state law from the best value option. If the dollar thresholds of General Municipal Law § 103 are increased or decreased in the future by New York State Legislature, the dollar thresholds set forth herein shall be deemed simultaneously amended to match the new General Municipal Law § 103 thresholds.
Goods and services procured and awarded on the basis of "best value" are those that the Village Board of Trustees determines will be of the highest quality while being most cost efficient. The determination of quality and cost efficiency shall be based on objectively quantified and clearly described and documented criteria, which may include, but shall not be limited to, any or all of the following:
Whenever any contract is awarded on the basis of best value instead of lowest responsible bidder, the basis for determining best value shall be thoroughly and accurately documented.
Any inconsistent provision of the Village of Malone's Procurement Policy, as adopted prior to the effective date of this section, by resolution of the Village Board of Trustees of the Village of Malone, or as amended thereafter, shall be deemed superseded by the provision of this section.