[HISTORY: Adopted by the Town Board of the
Town of Saratoga as indicated in article histories. Amendments noted
where applicable.]
[Adopted 7-13-1992; amended in its entirety 5-14-2012]
Every prospective purchase of goods or services shall be evaluated
to determine the applicability of General Municipal Law § 103
(GML § 103). Every Town officer, board, department head
or other personnel with the requisite purchasing authority (hereinafter
"purchaser") shall estimate the cumulative amount of the items of
supply or equipment needed in a given fiscal year. That estimate shall
include the canvass of other Town departments and past histories to
determine the likely yearly value of the commodity to be acquired.
The information gathered and conclusions reached shall be documented
and kept with the file or other documentation supporting the purchase
activity.
All purchases of supplies or equipment which are at or will
exceed $20,000 in the fiscal year or public works contracts at or
over $35,000 shall be formally bid pursuant to GML § 103.
A.
All estimated purchases of:
(1)
Less than $20,000 but at or greater than $5,000 require a written
request for a proposal (RFP) and written/fax quotes from three vendors.
(2)
Less than $5,000 but at or greater than $3,000 require an oral request
for the goods and oral/fax quotes from two vendors.
(3)
Less than $3,000 is left to the discretion of the purchaser.
B.
All estimated public works contracts of:
C.
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 offered.
D.
All information gathered in complying with the procedures of this
guideline shall be preserved and filed with the documentation supporting
the subsequent purchase or public works contract.
The lowest responsible proposal or quote shall be awarded the
purchase or 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 lowest
bidder. If a bidder is not deemed responsible, facts supporting that
judgment shall also be documented and filed with the record supporting
the procurement.
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 shall 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.
Except when directed by the Town Board, no solicitation of written
proposals or quotations shall be required under the following circumstances:
A.
Acquisition of professional services.
B.
Emergencies.
C.
Sole source situations.
D.
Goods purchased from agencies for the blind or severely handicapped.
E.
Goods purchased at auction.
F.
Goods purchased from correctional facilities.
G.
Goods purchased from another governmental agency.
H.
Goods purchased from state and/or county bid.
I.
Goods purchased for less than $3,000.
J.
Public works contracts for less than $3,000.
This policy shall be reviewed annually by the Town Board at
its organizational meeting or as soon thereafter as is reasonably
practicable.
[Adopted 10-14-2015 by L.L. No. 3-2015]
This article shall be known as "A Local Law to Authorize Contract
Awards Based Upon Best Value Methodology."
A.
General Municipal Law § 103 ("GML § 103") sets
forth the general rules applicable to the awarding of contracts for
public work and contracts for purchase by a municipality.
B.
Prior to January 27, 2012, GML § 103 required that contracts
for public work involving an expenditure of more than $35,000, and
all purchase contracts involving an expenditure of more than $20,000,
shall be awarded by the appropriate officer, board or agency of a
municipality to the lowest responsible bidder furnishing the required
security after advertisement for sealed bids.
C.
The State Legislature and Governor amended GML § 103 (A8692/S6117)
on January 27, 2012, to provide local governments greater flexibility
in awarding contracts by authorizing 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, on the basis of best value.
D.
Enactment of this article provides additional procurement options
to localities in ways that may expedite the procurement process and
result in cost savings. The "best value" standard for selecting goods
and services vendors is critical to efforts to use strategic sourcing
principles to modernize the supply chain and ensure that taxpayers
obtain the highest quality goods and services at the lowest potential
cost, while also ensuring fairness to all competitors.
E.
The federal government, approximately half of the states and many
localities have added best value selection processes to their procurement
options, in recognition of these advantages. With the increased complexity
of the goods and services that municipalities must obtain in order
to serve taxpayers, it is critical to consider selection and evaluation
criteria that measure factors other than cost in the strictest sense.
F.
Taxpayers are not well served when a public procurement results in
low unit costs at the outset, but ultimately engenders cost escalations
due to factors such as inferior quality, poor reliability and difficulty
of maintenance. Best value procurement links the procurement process
directly to the municipality's performance requirements, incorporating
selection factors such as useful lifespan, quality and options and
incentives for more timely performance and/or additional services.
G.
Even if the initial expenditure is higher, considering the total
value over the life of the procurement may result in better value
and long-term investment of public funds. Best value procurement also
encourages competition and, in turn, often results in better pricing,
quality and customer service. Fostering healthy competition ensures
that bidders will continue to strive for excellence in identifying
and meeting municipalities' needs, including such important goals
as the participation of small, minority and women-owned businesses,
and the development of environmentally preferable goods and service
delivery methods. Best value procurement will provide much-needed
flexibility in obtaining important goods and services at favorable
prices, and will reduce the time to procure such goods and services.
As used in this article, the following terms shall have the
meanings indicated:
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 which optimizes quality, cost and efficiency,
among responsive and responsible bidders or offerors. 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
of the Executive Law, to be used in evaluation of offers for awarding
of contracts for services. Other factors that may be used to determine
the best value are:
Cost of maintenance for good(s) or service(s);
Features of the offered product or service set forth in detailed
specifications for the product offered;
Warranties and/or maintenance to be provided with the product
or service;
Product life of good(s) or service(s);
References, past performance and reliability, including reliability
or durability of the product being offered and current or past experience
with the provision of similar goods or services;
Organization, staffing (both members of staff and particular
abilities and experience), and ability to undertake the type and complexity
of the work;
Financial capability; or
Record of compliance with all federal, state and local laws,
rules, licensing requirements, where applicable, and executive orders,
including but not limited to compliance with existing labor standards
and prevailing wage laws.
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 Town Board 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 Board 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 Town Board to utilize best value methodology
prior to issuance of the competitive bid or competitive offer documents.
Where the basis for an award of a purchase contract will be
the best value offer, the Town Board shall, in all instances:
A.
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
B.
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.
C.
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
criterion to be considered by the Town in its determination of best
value.
