[CC 1996 §116.010; Ord. No. 1053 §§I — III, 10-5-1998]
A.
This
policy has been designed to insure that the policies set by the Board
of Aldermen with regard to the expenditure of public funds are met
by all City departments. If these policies are adhered to, the City
will receive the maximum value for each public dollar spent.
B.
Basic Goals. The basic goals of the City's purchasing program
are:
1.
To comply with the legal requirements of public purchasing.
2.
To assure vendors that impartial and equal treatment will be afforded
all who wish to do business with the City.
3.
To receive maximum value for each public dollar spent.
4.
To provide City department's required goods and services at the time
and place needed in the proper quantity and quality.
5.
To purchase only goods and services for which funds have been approved
and not previously encumbered.
C.
If
the procedures and guidelines established in this manual are followed,
each department will efficiently manage, control and plan their available
resources to meet present and future departmental needs and help the
City meet these goals.
[CC 1996 §116.020; Ord. No. 1053 §§I — III, 10-5-1998]
A.
These
general guidelines should be considered administrative rules and regulations
and are to be adhered to as closely as possible by all departments
in the procurement of goods and services.
1.
Local buying. It is the desire of the City to purchase
from Bowling Green vendors whenever possible. This can be accomplished
by insuring that local vendors who have goods or services available
which are needed by the City are included in the competitive shopping
process which will precede most purchases. The City has a responsibility
to its residents, however, to insure that the maximum value is obtained
for each public dollar spent. It is assumed that local vendors who
wish to do business with the City will offer the lowest possible quote
for the item being purchased.
2.
Planning. Planning for purchases should be done
on both a short-term and a long-term basis. Small orders and last
minute purchases should be minimized, thereby increasing the capability
of each department to purchase its goods and services in larger quantities
in order to obtain the maximum discount possible. Planning will also
reduce the number of trips required to obtain materials and minimize
the amount of clerical and supervisory time spent on documenting purchases.
The purchasing process begins with the preparation of the annual budget.
3.
Overdrafts prohibited. No purchase will be authorized
which would overdraw a budgetary account. Department heads who are
contemplating a purchase that will exceed a budgetary account should
contact the Administrator or Treasurer to insure that provision is
made for the necessary budget allocation prior to initiating the purchase.
4.
Buying proper quality. Quality and service are just
as important as price and it is the duty of the requisitioning department
to secure the best quality for the purpose intended. Quality buying
is the buying of goods or services that will meet but not exceed the
requirements for which they are intended. In some instances the primary
consideration is durability. With other purchases, it may be a question
of immediate availability, ease of installation, frequency of repair
or efficiency of operation that must be given primary consideration.
In the case of motor vehicles and other capital expenditures, departments
may want to investigate life cycle costs or EPA mileage ratings to
compare bids as opposed to utilizing price as the sole criterion for
determining the lowest responsible bidder. It is the responsibility
of each department head to become familiar enough with available equipment
to determine the appropriate quality required when developing specifications.
5.
Bribery. Bribery, in any form, represents malfeasance
in office and means that public funds are being mismanaged. Bribery
by vendors in order to secure favorable consideration is seldom attempted.
Vendors may attempt to secure favoritism by offering gifts or providing
entertainment to City Officials. Attempts to influence decisions regarding
the expenditures of public funds may be directed towards any employee
who has influence over the selection of vendors. The penalty for accepting
a bribe is immediate termination.
6.
Sales tax. The City is exempt from all local and
State sales taxes or Federal excise taxes. The Finance Department
will provide the necessary exemption documents to any vendor, upon
request.
7.
Public access. All specifications, bid documents,
purchase orders and supporting documents are public records which
will be made available to citizens, vendors or the media upon request.
8.
Endorsements. It is City policy not to endorse or
in any way permit an employee's name or position or the City's name
to be used and advertised as supporting a product or vendor.
9.
Performance/payment bond.
a.
The purchasing agent shall have the authority to require a performance/payment
bond in cash or otherwise for such amount that he/she may deem sufficient
to secure the execution of the contract for furnishing goods or services
for the best interests of the City.
b.
If a performance/payment bond is supplied, the purchasing agent shall
also have the authority to:
(1)
Require a certificate from the Secretary of State, State of
Missouri, which authorizes the bonding company to conduct business
within the State of Missouri;
(2)
Obtain a rating from Best's or from Standard and Poor's of an
"A" rating of the company to show it is reasonably solvent; and
(3)
Require a certificate from the original issuing company stating
that the bond is in effect.
10.
Personal purchases. Purchases for employees by the
City are prohibited. City employees are also prohibited from using
the City's name or the employee's position to obtain special consideration
in personal purchases.
B.
The
General Fund Reserves shall have at least one million dollars ($1,000,000.00)
at all times other than as herein provided. In a financial emergency,
as declared by the Mayor, sums may be spent therefrom by a majority
of the Board of Aldermen through affirmative vote. Within thirty (30)
days after said vote, the Board of Aldermen, by a majority of the
Board of Aldermen through affirmative vote, shall establish the manner
in which the General Fund Reserve shall be replenished.
[Ord. No. 1869, 4-16-2018]
[CC 1996 §116.030; Ord. No. 1053 §§I — III, 10-5-1998; Ord. No. 1308 §I, 8-21-2002]
A.
The
Board of Aldermen has established policies regulating the degree of
formality to be followed in the purchase of goods and services, depending
on the cost of the items to be purchased. The splitting of purchases
into small orders to avoid these requirements is prohibited.
1.
Purchases under $500.00. Department heads are authorized
to issue a requisition form directly to vendors for any purchase in
the amount of five hundred dollars ($500.00) or less. It is the responsibility,
however, of each department head to designate employees who will be
allowed to make purchases and to provide internal control procedures
to insure that all purchases are for legitimate public purposes, that
monthly statements from vendors are reconciled and all purchases accounted
for. Department heads may wish to consider an internal requisition
system which would insure that a numbered, controlled document is
set aside for each purchase made, including small items purchased
under open accounts. Any department that routinely makes purchases
costing less than five hundred dollars ($500.00) or purchases frequently
under open accounts should establish such a system.
2.
Purchases from $500.01 to $1,500.00. On a purchase
of more than five hundred dollars ($500.00) but less than one thousand
five hundred dollars ($1,500.00), a purchase order must be submitted
by the department head for the Treasurer's approval before an order
is placed with a vendor. The requesting department should competitively
shop to insure that vendors with which the City deals are maintaining
competitive pricing and appropriate quality. The department may find
it convenient to use the request for quotation or telephone quotation
forms, even though items required are below the amounts necessary
to trigger this procurement process. These forms need to be submitted
to the Finance Department with the purchase order when purchases are
less then one thousand five hundred dollars ($1,500.00).
3.
Purchases from $1,500.01 to $3,000.00. Purchase
orders for goods or services having a value of one thousand five hundred
dollars ($1,500.00) to three thousand dollars ($3,000.00) must be
approved by the City Administrator prior to placing an order with
a vendor. Before submitting a purchase order, department heads must
obtain three (3) oral quotations for the goods or services required.
The quotations may be obtained over the telephone utilizing the telephone
quotation form. The purchase order awarding the purchase to the lowest
responsible bidder should then be forwarded to the Treasurer along
with the telephone quotation form. If department heads are unable
to secure three (3) telephone quotations, a notation explaining why
less than three (3) qualified vendors were available should be made
on the quotation form, attached to the purchase order and forwarded
to the Treasurer. When seeking three (3) informal quotes, the practice
of "auctioneering" should be avoided by refusing to disclose a vendor
the price quoted by competitors.
4.
Purchases from $3,000.01 to $5,000.00.
a.
Prior to processing a purchase order to secure goods or services
costing over three thousand dollars ($3,000.00), department heads
must obtain three (3) written quotations. The request for quotation
forms may be used for this purpose. If department heads are unable
to secure three (3) written quotations, a memorandum explaining why
less than three (3) qualified vendors were available, as well as a
summary of quotes, should be attached to the purchase order and forwarded
to the Administrator's office for approval. All purchases in excess
of three thousand dollars ($3,000.00) require the Administrator's
prior approval.
b.
The request for quotation form is a four (4) page form formatted
so that by completing the top form the three (3) vendor copies are
properly typed. Once the vendor copies have been returned to the department,
the summary section on the top copy should be completed prior to the
preparation of a purchase order.
c.
Department heads are reminded that the use of written quotation forms
requires appropriate planning to insure that adequate lead time is
available to satisfy the purchasing requirements. It is, of course,
possible to hand carry or fax the request for quotation form to qualified
vendors and obtain the three (3) quotes, complete the summary and
submit a purchase order in a single day.
5.
Purchases in excess of $5,000.00.
a.
Department heads anticipating the purchase of goods or services exceeding
five thousand dollars ($5,000.00) in value should prepare specifications
based upon standards appropriate to meet the City's needs. Specifications
should be forwarded to the Administrator's office for review, comment
and approval. The Administrator's office will then authorize the preparation
of the bid package, public notices and advertisements to meet the
City purchasing policy and will also send bid invitations to qualified
vendors. Department heads should submit a list of such vendors along
with the specifications. A bid packet containing an invitation to
bid, specifications and general bid documents will be sent to these
vendors, as well as those that respond to the legal notice. Formal
bids will be advertised for at least ten (10) business days prior
to bid opening. After the bids are opened in public, they will be
turned over to the department head for review. The department head
will prepare a written tabulation of all bids and draft a memorandum
to the Administrator, which will include the department head's recommendation
for the bid award. All purchases over five thousand dollars ($5,000.00)
must be awarded by the Board of Aldermen at a public meeting.
b.
The award of a purchase contract will normally be made to the low
bidder meeting specifications. However, there may be instances when
the low bid meeting specifications is not from a responsible bidder.
When such a situation arises, it is incumbent upon the department
head to thoroughly document the reasons why the low bidder should
be disqualified.
[CC 1996 §116.040; Ord. No. 1053 §§I — III, 10-5-1998]
A.
Occasionally
the City may need to purchase goods or services under circumstances
which do not clearly fit the City's procurement process or for which
normal competitive shopping procedures do not apply. The following
guidelines are provided with regard to making such purchases.
1.
Sole source.
a.
In the event that there is only one (1) vendor capable of providing
a particular good or service, the competitive shopping procedures
outlined in this manual may be waived by the Administrator.
b.
Whenever a department head determines that he/she must purchase goods
or services from a "sole source vendor", he/she should document why
only one (1) company or individual is capable of providing the goods
or services required. The documentation should be attached to the
purchase order. The Administrator must approve all sole source purchases
over five hundred dollars ($500.00).
2.
Cooperative procurement programs. Department heads
are encouraged to use cooperative purchasing programs. This Chapter
shall not apply to purchases made through or with the State or any
other governmental jurisdiction which operates a cooperative procurement
program and will allow the City to purchase goods or services that
the jurisdiction has made available following the completion of its
own internal purchasing procedures.
3.
Professional services.
a.
Normal competitive procedures cannot be utilized in securing professional
services such as attorneys, engineers, certified public accountants,
appraisers, planners and other professional people who, in keeping
with the standards of their discipline, will not enter into a competitive
bidding process.
b.
A request for proposal (RFP) can be prepared much the same way as
specifications, including requirements and minimum standards for the
services to be provided. RFPs should be submitted to the Administrator
for review and approval prior to distribution. When an RFP for professional
services is approved, a limited number of qualified professionals
known to the City will be invited to submit a proposal setting forth
their interest, qualifications and how they can meet the City's needs.
In securing professional services it is the primary goal of the City
to obtain these services from a provider who has a proven record of
providing, in a professional way, those services required.
c.
A contract will be negotiated with the professional deemed to best
meet the City's needs. If an agreement on the cost and conditions
cannot be reached, then these negotiations will be terminated and
negotiations will commence with the next most qualified professional.
d.
The City Administrator is authorized to approve contracts for professional
services valued at under three thousand dollars ($3,000.00). A memorandum
setting forth department head's recommendation should accompany a
purchase order for such services. For contracts exceeding three thousand
dollars ($3,000.00), Board approval is required.
e.
For larger contracts, the department head, with the approval of the
City Administrator, will prepare a "short list" of three (3) qualified
professionals to be interviewed by the Board of Aldermen. The Board
will select the professional with whom the City will negotiate a contract.
4.
Open purchase orders. Open purchase orders are for
long-term contracts for goods or services awarded after receiving
competitive bids. The purchase order remains open for a period of
up to one (1) year to purchase the goods or services specified on
an "as needed" basis. Examples of open purchase orders include construction
materials such as rock, concrete and asphalt, trees and other landscaping
materials, automotive supplies such as gas, tires and batteries, hardware
and office supplies frequently or routinely utilized by the City and
for which the initiation of competitive shopping each time the goods
or services are required would be cumbersome and inefficient.
5.
Emergency purchases.
a.
The bid procedures outlined in this manual may be waived under emergency
conditions when a delay may threaten the basic mission of a department.
b.
True emergency situations are rare. Occasionally equipment will require
emergency repairs or other circumstances will necessitate purchasing
which cannot await compliance with these regulations. Department heads
faced with an emergency purchase are to notify the Administrator as
quickly as possible.
6.
Petty cash accounts.
a.
Very often, there is a need for immediate availability of funds.
Petty cash funds will be issued to the following departments in the
amounts noted.
Finance Department: $250.00.
Police Department: $200.00.
Streets and Engineering: $200.00.
b.
Petty cash funds should be used to avoid the time and expense of
issuing purchase orders for items totaling thirty dollars ($30.00)
or less. Petty cash receipts are to be completed by the person responsible
for the fund in each department; these should include the amount,
description of item, budget account number and signatures of the persons
receiving the funds and the person issuing the funds. Petty cash funds
will be replenished at least monthly.
c.
A check will be prepared, made payable to the individual responsible
for the department's petty cash. It will be that person's responsibility
to cash the check and assure that the funds are placed back into the
departmental petty cash fund. The Administrator and Treasurer may
conduct unannounced audits of petty cash funds to assure that monies
are being properly accounted for. The use of petty cash funds for
personal use, even for very short periods of time, is contrary to
City policy and grounds for termination.
7.
Purchase of used equipment. New equipment is to
be preferred over used equipment. However, there are situations where
the purchase of used equipment should be considered. These include:
a.
When price is of prime importance and the difference in cost between
new and used equipment is significant.
b.
Where equipment will be used infrequently, for a limited time, for
training or for auxiliary operations.
c.
When faster delivery is essential.
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The purchase of used equipment requires careful shopping and
the requisitioning department should make every effort to secure a
minimum warranty or guarantee that the equipment will perform as needed
and that service or replacement parts are reasonably available.
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8.
Change orders.
a.
Change orders are amendments to contracts for the purchase of goods
or services that are made after the contract has been awarded. Change
orders result from the discovery of unforeseen conditions. Change
orders may not be used to overdraw a budget account, to avoid the
City's competitive bidding process or to materially alter the purpose
of the original bid or contract.
b.
The Administrator must approve all change orders. The Board of Aldermen
must approve all change orders in excess of five thousand dollars
($5,000.00), change orders which increase the total purchase above
five thousand dollars ($5,000.00) or change orders in excess of ten
percent (10%) of the value of a contract previously awarded by the
Board.
c.
All approved change orders in contracts previously awarded by the
Board will be reported to the Board in writing within three (3) business
days.
[CC 1996 §116.050; Ord. No. 1053 §§I — III, 10-5-1998; Ord. No. 1143 §I, 5-15-2000]
A.
Formal Competitive Bidding. When goods or services are bought
under formal competitive bidding process, specifications must be prepared.
Specifications, regardless of the type, should do four (4) things:
B.
General Guidelines.
1.
Keep specifications as simple as possible while maintaining the exactness
required to keep bidders from utilizing a loophole to avoid providing
the quality of goods or services required or in another fashion to
take advantage of their competitors.
2.
Whenever possible, identify the equipment or material required with
some name brand or known standard already on the market. All specifications
that utilize a name brand must include the term "or equivalent" to
avoid being restrictive and eliminating fair competition.
3.
Specifications should promote competition. Specifications will normally
allow several bidders to provide the City with alternatives and insure
that the City obtains the lowest possible price for the goods or services
required.
4.
Flexibility in the specifications is desirable in instances where
new technologies are being sought. Specifications should be specific
enough to guarantee the quality required but sufficiently flexible
to allow vendors to be creative in their proposals. If a proposal
does not meet the City's needs, it can be rejected and the bid which
closely follows the specifications accepted. These procedures should
be used sparingly and department heads contemplating flexible specifications
should contact the Administrator to discuss the format and degree
of flexibility anticipated prior to the completion of a final draft.
5.
Specifications should be reasonable and precise. Unnecessary precision
or over use of proprietary terms is expensive.
6.
Specifications should be written with clear, simple language, free
of vague terms or those subject to variation in interpretation.
C.
Types Of Specifications. There are several ways of structuring
specifications to protect the integrity of the purchasing process
and to insure that the needs of the City are met. Different methods
of structuring specifications include:
1.
Qualified products or acceptable brands list. These
lists are developed only where it is not possible to write specifications
adequate to identify the quality and performance required of the goods
or services to be purchased. Acceptable brands lists are also used
when tests necessary to determine compliance with technical specifications
are lengthy, costly or require complicated technical equipment.
2.
Specification by brand or trade name. Brand or trade
names should be used where brand name products have been found to
be superior to others for the purpose intended or when their composition
is secret, unknown or patented. The use of brand names established
a quality standard but is not intended to limit or eliminate competition.
Whenever this method of establishing specifications is used, the specifications
should specifically provide for bidding of competitive "or equivalent"
grades. It is incumbent on a vendor who bids on goods or supposed
equal quality to those specified to document that the goods or services
that he/she is bidding are, in fact, of equal quality.
3.
Specification by blueprint or dimension sheet. Specifications
of construction projects for everything from buildings and streets
to custom built cabinets, furniture, machines or other equipment should
be written to reference the blueprints or dimension sheets prepared
by the engineer or architect. Such specifications provide an appropriate
method of evaluating all bids and later of verifying the quality of
the construction work or the equipment or fixtures delivered.
4.
Specifications by chemical analysis or physical properties. Specifications which include the chemical analysis or physical properties
of the goods requested clearly place responsibility on the supplier
to provide exactly those items requested. Care must be taken in preparing
specifications utilizing this method to insure that competition remains
a part of the bidding process. If the specifications are drawn too
narrowly and only one (1) bidder is qualified to meet the technical
specifications, the cost of obtaining these items may be higher than
necessary due to the lack of competition.
5.
Specifications by performance, purpose or use.
a.
Specifications which include a set of performance criteria for the
goods or services required will provide flexibility for vendors to
design products or programs specifically aimed at meeting the purpose
or performance standards the City has established. Generally, specifications
which center on performance standards generate greater competition
since they allow vendors to exercise creativity in the types of services
or goods included in their bids.
b.
Department heads are cautioned to exercise care by including technical
specifications which will provide a floor or bottom line quality determination.
The use of performance specifications without minimum standards could
result in items being installed, paid for and later determine not
to meet City expectations. It can then be very difficult to go back
to a vendor and argue that the item bid did not meet the performance
criteria established. At that point the determination of satisfactory
performance can become extremely subjective, with the vendor insisting
that his/her item is acceptable even though actual experience indicated
otherwise.
6.
Specification by identification with industry standards. Specifications will often refer to industry-wide standards or to
standards set by other public jurisdictions. Some examples of these
would be lumber grading, standards set by the asphalt or concrete
industries or by referencing standard specifications of the Missouri
Department of Transportation or other State or Federal agencies.
7.
Specifications by samples. Whenever appropriate,
a sample is a good way to make requirements perfectly clear. A good
example is printing bids for which work or an existing form is attached.
Whenever samples are utilized, department heads should provide an
adequate supply so that originals can be sent with all bid invitations
to vendors who request bidding documents.
D.
Standard Insurance Requirements. All specifications for
work to be performed for the City shall contain the following requirements
and each contractor performing any work for the City shall have in
full force and effect during all times of performance insurance for
the following matters which are written with a reputable insurance
company licensed to do business in the State of Missouri and acceptable
to the City, to wit:
1.
Worker's Compensation and employee benefit acts per State Statutes;
2.
Public liability of not less than one million dollars ($1,000,000.00);
3.
Bodily injury damage of not less than one million dollars ($1,000,000.00);
4.
Property damage of not less than two hundred fifty thousand dollars
($250,000.00);
5.
Casualty and builders risk not less than the fair market value of
the improvement; and
6.
Motor vehicle insurance of bodily injury not less than one million
dollars ($1,000,000.00) and property damage not less than two hundred
fifty thousand dollars ($250,000.00).
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All contractors shall provide the City with a certificate issued
by the insurance company evidencing such insurance to be in full force
and effect during all times of any work and said policy shall be written
to ensure the City and the contractor and shall contain a provision
that same may not be cancelled without prior written ten (10) day
notice to the City.
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[CC 1996 §116.060; Ord. No. 1053 §§I — III, 10-5-1998]
A.
The
City Purchase Order Form must be completed by entering the necessary
data via computer terminal and signed by the department head under
the procedures established in this manual. In order to insure expeditious
processing of purchase orders it is important that all forms are completed
accurately by the requisitioning department.
B.
A purchase
order is a contract between the City and a vendor. The contract is
not binding until it is accepted by the vendor. The issuance of purchase
orders by unauthorized individuals will not be recognized by the City
and payment of these obligations will not be approved. Unauthorized
purchases are classified as personal expenses.
C.
Purchase
orders are classified as either "original" or "confirming" based on
whether or not the vendor has previously been notified of the City's
intent to purchase goods or services from him/her. Confirming purchase
orders are used to prevent double purchasing of the same item. The
use of confirming purchase orders should be minimized.
[CC 1996 §116.080; Ord. No. 1053 §§I — III, 10-5-1998]
A.
A contract
or purchase order that is complete in all respects and that is accepted
by the parties concerned still must produce the intended results or
objectives before it can be considered a successful or completed purchase.
The terms and conditions must clearly define the delivery and performance
requirements of the services, supplies or equipment.
B.
The
importance of the delivery schedule should be emphasized to the vendor.
Delivery requirements must be clearly written and fully understood
by all contract participants. If several items are required by the
contract, there may be a different delivery schedule for each item.
The delivery schedule will normally be shown in calendar days from
a specific date or transaction, such as receipt of order by the vendor.
It is also important that you clearly show the place for delivery
and the receiving time schedule at the delivery points. If there are
liquidated damages for non-delivery or late delivery, call these terms
to the attention of the vendor and stress their importance. All parties
should know where the material will be accepted — f.o.b.(free
on board) origin or destination. The f.o.b. location is where title
to the goods passes from the vendor to the City. Generally, the f.o.b.
location will be City Hall or a job site.
C.
Follow-Up And Expediting. Follow-up is the monitoring of
the delivery schedule to assure compliance. Expediting involves an
attempt to improve or to reduce the contractually stipulated delivery
time for various reasons and the vendor is not legally obligated to
comply.
2.
The early detection of possible delivery delays will provide the
City with a greater opportunity for resolving the problem and for
developing satisfactory alternatives.
3.
The initial follow-up action would be to reaffirm the delivery schedule
and to establish a proper liaison with the seller's representative.
4.
If delivery problems do develop, there are techniques that may be
used to help solve them:
5.
Delinquent deliveries. When follow-up efforts have
failed and deliveries have become delinquent, one (1) of two (2) actions
must be taken:
a.
Authorize additional time for delivery; or
b.
Cancel and order from other sources.
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In making the decision as to which of these actions should be
taken, several factors must be considered:
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a.
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Needs and requirements of the City;
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b.
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Agreements with the vendor;
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c.
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Availability of the items from other sources; and
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d.
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The time it would take for delivery if reordered from another
source.
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In all cases, the reasons for delinquent deliveries should be
documented. This information may be needed in evaluating future bids
submitted by that vendor.
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6.
Partial deliveries. Some purchase orders may list
several items. In this event it may be possible for the vendor to
complete timely delivery on some of the items, which would be referred
to as "partial deliveries" on the complete bid. If these items can
be used separately, partial payments can and should be authorized.
However, if the separate items are part of a system, then parties
deliveries would be of little value to the City. In this case, partial
payments should not be authorized.
7.
Substitution.
a.
To meet the contractual delivery schedule, it may be appropriate
in some situations to consider substitute items. The specifications
should cover this eventuality and would govern the legality of the
transaction. However, substitutions may be necessary, regardless of
the specifications, if it is absolutely necessary for the City to
have the material by a specified date. Other reasons for substitution
may be design changes, raw material shortages or health and safety
priorities.
b.
Whenever substitutions are necessary, due to shortcomings of the
vendor, it is the responsibility of the purchaser to seek and obtain
an adjustment for lower prices on the substituted items. This action
will serve to meet the legal requirements of the contract and to discourage
future substitutions by the same vendor. In addition, this action
will serve notice on the other bidders that no favoritism was shown
and that compliance with specifications is expected from all vendors.
8.
Non-performance.
a.
Should the vendor fail to meet any requirement of the specifications,
the vendor can be cited for non-performance. The seriousness of non-performance
must be evaluated based on the circumstances surrounding each violation.
However, there should always be some recourse to the City when a vendor
fails to perform in accordance with the terms and conditions of a
contract.
b.
These recourses include:
(1)
The City may exercise its rights under a liquidated damages
clause or under the terms of a performance bond.
(2)
The City may obtain the needed items from another source and
charge the delinquent vendor the excess difference in cost. However,
obtaining the delinquent items from another source is not always an
acceptable solution, since additional delivery time may be required.
A revised delivery schedule with the vendor may be the best remedy.
(3)
The City may terminate the contract for default if it is in
the best interest of the City and provided that the items can be obtained
under more favorable conditions from other sources.
[CC 1996 §116.090; Ord. No. 1053 §§I — III, 10-5-1998]
A.
Human
lives as well as the success of expensive projects may depend upon
how well the purchased items meet design and performance specifications.
B.
Goods
and materials should be checked at the time of receipt to detect any
damage or defects. Inspection also includes assuring that the material
is in compliance with the specifications.
C.
A variety
of tests may be conducted to determine if the merchandise meets specifications.
Certain forms of inspection and testing will only be conducted on
a percentage of the items, as the procedure may make the items unusable.
Inspecting/testing every item received is neither economical nor practical.
D.
Inspection
and testing may be performed at origin or destination. These tests
are classified as sampling, chemical/lab, functional and endurance
tests. In some cases a certification of compliance will be accepted.
E.
All
requirements for inspection and testing must be clearly stated in
the specifications.
F.
Both
inspection and testing are costly, but the benefits far outweigh the
expense when defects can be detected before they cause the loss of
life, injury or equipment failure.
G.
Inspection,
testing and acceptance are conclusive, except for latent defects or
fraud.
H.
Reports, Rejection And Return Authorization.
1.
Whenever an inspection is performed, all reports to properly support
claims or actions must be thoroughly documented. Sufficient time should
be scheduled to allow for an inspection immediately upon arrival of
the goods, taking into consideration required tests as necessary.
2.
Goods should be inspected for damage, quantity, quality, price and
for all other requirements listed in the specifications. A copy of
the inspection report will normally be used to substantiate payment
for the goods and verification of receipt.
3.
In the event of rejection, for whatever purpose, certain steps must
be taken to inform and to protect the rights of the vendor as well
as of the City. Reasons for rejection must be listed and these reasons
should reference specific requirements of the contract.
I.
Damage During Shipment.
1.
One of the major reasons for inspection at the time of receipt is
to detect any visible damage. It's important that all damage be completely
described on the receiving report. Any evidence of concealed damage
should also be noted at this time. The carrier should be notified
immediately and a joint inspection should be scheduled with the carrier's
representative.
2.
When it is apparent that the extent of the damage causes the goods
to be worthless, they should not be accepted. If the shipment is "f.o.b.
destination", the vendor is responsible for assisting with the settlement
of the claim and for full replacement of the damaged items. Payment
will be withheld until the claims are settled.
J.
Latent Defects.
1.
Latent defects may be the result of damages in transit or of failure
of the manufacturer to conform to specifications. Consequently, it
is sometimes very difficult to fix responsibility for the defective
material. If the carrier is suspected to be the one at fault, then
the carrier's representative should be invited to come in for a joint
inspection. Subsequently, a claim describing the situation should
be filed with the respective carrier.
2.
A similar procedure should be followed if the vendor/manufacturer
is suspected to be at fault. The importance of "f.o.b. destination"
shipments should be reiterated at this point, for on such shipments,
the vendors are responsible for rectifying the situation or for correcting
the defect. If specific liability for the defect cannot be determined
between the carrier, the vendor or the manufacturer, the City may
have to file a claim against all parties seeking their cooperation
in resolving the situation.
[CC 1996 §116.100; Ord. No. 1053 §§I — III, 10-5-1998]
A.
Goods
become obsolete or they wear out. Occasionally they are overstocked.
Changing technology, accumulation of "waste" and fulfillment of the
"useful" life of goods make the disposal of surplus inevitable.
B.
The
City is interested in full realization of the value of goods it purchases
and disposes of.
C.
Competitive
selling of surplus, obsolete or usable goods is required. This may
be achieved through sealed bids, auction or open market sales. The
disposal of all goods requires the approval of the City Administrator
and documentation by memorandum of the sale price, method of sale
and purchaser of the goods.
D.
The
sale of City property valued in excess of three thousand dollars ($3,000.00)
requires approval of the Board of Aldermen.
[CC 1996 §116.110; Ord. No. 1053 §§I — III, 10-5-1998]
A.
It
is the policy of the City to encourage the purchase of products manufactured,
assembled or produced in the United States if the quality and price
are comparable with other goods. On purchases in excess of one thousand
dollars ($1,000.00), department heads should give preference to the
purchase of American products over foreign products of comparable
quality and price. Requests for quotations and specifications will
be used to inform bidders of the policy and to ascertain whether the
item proposed to be purchased is a product of the United States.
B.
Every
contract for public works construction or maintenance in excess of
one thousand dollars ($1,000.00) shall contain the following provision:
"The contractor is requested to use American products in the performance
of this contract whenever the quality and price are comparable with
other goods".
[CC 1996 §116.120; Ord. No. 1053 §§I — III, 10-5-1998]
It is the policy of the City, where economically feasible, to
purchase office supplies made of recycled materials, preferably post-consumer,
and to make every effort to separate and properly dispose of recyclable
materials.
[CC 1996 §116.210; Ord. No. 1053 §§I — III, 10-5-1998]
A.
Any
purchase order or contract within the purview of this Chapter in which
the purchasing agent or any officer or employee of the City is financially
interested, directly or indirectly, shall be void, except that before
the execution of a purchase order or contract, the Board of Aldermen
shall have the authority to waive compliance with this Section when
it finds such action to be in the best interests of the City.
B.
The
agent and every officer and employee of the City shall not directly
or indirectly solicit any gift or accept or receive any gift, whether
in the form of money, services, loans, promises or any other form,
under circumstances in which it could reasonably be inferred that
the gift was intended to influence them, or could reasonably be expected
to influence them, in the performance of their official duties or
was intended as a reward for any official action on their part.
[Ord. No. 1645 §I, 10-19-2009]
A.
Any
project with contractors or subcontractors as those terms are defined
in Section 292.675, RSMo., requires on-site employees to complete
a ten (10) hour course in constructions safety and health approved
by the Occupational Safety and Health Administration (OSHA) or similar
program approved by the Missouri Department of Labor and Industrial
Relations which is at least as stringent as an approved OSHA program.
The training must be completed within sixty (60) days of the date
the work on the project commences. On-site employees found on the
worksite without documentation of the required training shall have
twenty (20) days to produce such documentation.
B.
The
request for bids for such projects shall specify the requirements
of Section 292.675, RSMo.
C.
The
contract awarded for this project shall specify the requirements of
Section 292.675, RSMo., and shall include a notice of the penalties
for the contractor or subcontractor's failure to comply with that
Statute as set forth in Section 292.675, RSMo.
