Town of East Hampton, CT Purchasing

It is the intent of the Town to provide consistent rules for the purchase of equipment, services, supplies and materials to facilitate efficient municipal operations and to provide fairness to all parties, including but not limited to individuals, corporations, or government agencies whose equipment, services and supplies are purchased by the Town of East Hampton, including the Board of Education. Purchases shall be made considering price, quality and availability as important determining factors in the selection of equipment, services and supplies.

Where federal or state law or regulations including grant requirements require other procedures, such other procedures will be followed in lieu of those specified within this policy.

The Town Council may delegate its responsibility under this chapter to other Town boards and committees.

Responsibility for compliance. Compliance with this purchasing policy shall be monitored as follows:

(1)

The Town Manager shall bear primary, nondelegable responsibility for ensuring compliance with this policy. The Superintendent of Schools shall bear primary, nondelegable responsibility for ensuring compliance with this policy for purchases made by the Board of Education (BOE).

(2)

All employees, including department heads, supervisors and any other authorized personnel who make purchases for the Town are responsible for following the provisions outlined in this policy and the purchasing procedures manual when making purchases with Town funds.

§ 117-2 Definitions.

As used in this chapter, the following terms shall have the meanings indicated as follows:

BID/REQUEST FOR PROPOSAL (RFP)

A notice in writing in a sealed envelope delivered to the Town Manager (or designee) or Superintendent of Schools (or designee), as the case may be, by a specified date, to be opened in public at a specified date and time by the Town Manager (or designee) or by the Superintendent of Schools (or designee), as the case may be, whereby a vendor informs the Town of the price for which he/she shall furnish supplies, materials, equipment, or services to the Town.

CAPITAL EQUIPMENT

Equipment, including rolling stock, vehicles, machinery, etc., other than supplies, which is used to provide a service to the community.

LEGAL SERVICES

Services provided by firms and individuals licensed to practice law in the State of Connecticut.

MATERALS

Basic ingredients in a relatively raw, unrefined or unmanufactured state that may be worked into a more finished form (i.e., sand, wood, asphalt).

PROFESSIONAL ENGINEERING

A person or firm who is licensed to practice in the State of Connecticut and qualified by reason of his knowledge of mathematics, the physical sciences and the principles of engineering, acquired by professional education and practical experience, to engage in engineering practice, including rendering or offering to render to clients any professional service such as consultation, investigation, evaluation, planning, design or responsible supervision of construction, in connection with any public or privately owned structures, buildings, machines, equipment, processes, works or projects in which the public welfare or the safeguarding of life, public health or property is concerned or involved.

QUALIFIED

Meeting such qualifications as the Town may set forth in its requests for bids, quotations, or proposals.

QUOTATION

A notice, in writing, whereby a vendor informs the Town of the price for which he/she will furnish supplies, materials, equipment or services to the Town. A written promise from a supplier, vendor, contractor or professional guaranteeing the cost of specific supplies, materials, equipment or services. Any and all quotes deemed not to be in the best interests of the Town may be rejected, and any quote deemed to be in its best interests may be accepted.

RESPONSIBLE

Having the experience and financial strengths, in the reasonable judgment of the Town, necessary to perform in the delivery of services, materials, equipment or supplies.

SERVICES

Contractual services rendered to the Town by a vendor.

STUDENT EDUCATIONAL

Tuition paid to public or private institutions as well as special education services provided to children as identified in the child's Individualized Educational Program (IEP).

SUPPLIES

Goods in a manufactured state kept in the ordinary course of business for regular use or consumption.

TOWN

All Town agencies, including the Board of Education and excluding Town of Colchester-Town of East Hampton joint facilities ("joint facilities").

§ 117-3 Purchases of capital equipment, services, materials and supplies.

All purchases in excess of $2,000 require a purchase order, standing purchase order or requisition. The following requirements shall govern the purchase of supplies, equipment and services:

If the estimated value is less than $10,000, the department or agency head may make the purchase after careful review of the most competitive price considering the quality of the proposed purchased items.

If the estimated value is equal to or greater than $10,000 but less than $20,000, the purchase may be made with the approval of the Town Manager or his designee (or in the case of Board of Education purchases, the Superintendent of Schools or his designee) after the department head or agency head has received at least three written quotations, and the purchase shall be the lowest qualified and responsible quote. If for any reason three quotes are not obtained, the purchase may be made after providing written documentation for the files, indicating why three quotes could not be obtained.

If the estimated value is equal to or greater than $20,000, the purchase shall generally be made from the lowest qualified and responsible bidder using a sealed bid procedure described in § 117-5 below, with two exceptions hereafter described. The award shall be made by the Town Council or, in the case of education purchases, the Board of Education, unless it is a joint bid with another Town agency, in which case the Council shall make the award.

(1)

The first exception is where the proposal of the lowest qualified and responsible bidder exceeds the Town's budget for the item, in which case the Town may reject all proposals by majority vote of the Town Council or Board of Education, as the case may be.

(2)

The second exception applies where it is deemed to be in the best interests of the Town of East Hampton to make the award to a bidder other than the lowest qualified and responsible bidder. This latter exception requires an affirmative vote of 3/4 of the elected membership of the Town Council at a regular or special meeting.

Contracts for service and/or maintenance shall be acquired or bid in accordance with the provisions of this section. Such contracts may be entered for periods renewable on a month-to-month basis and shall be terminable upon written thirty-day notice by the Town/Board of Education or the vendor/supplier. Such contracts shall remain in effect until such termination and shall not require quotation or rebid until such termination.

Splitting of contracts to avoid any of the limits of this section shall be prohibited.

Consulting services shall be acquired through a request for proposal process, unless a written justification is provided to the Town Council or Board of Education that a single source is uniquely qualified to provide the desired services.

§ 117-4 Exemptions.

The items listed below will not require sealed bids and are exempt from the requirements of § 117-3, but do require Town Manager approval or, in the case of education purchases, the Superintendent of Schools:

Legal, physician, professional engineering and student educational services. Auditing services shall be exempt and shall be approved by the Board of Finance.

Purchases made from any agency or office of the federal, state or local government or other governmental unit, or nonprofit organization or sole-source supplier shall be exempt.

Nothing in this chapter shall prohibit the Town from purchasing items under state bids and/or contracts and/or participation in regional purchasing councils who have used a sealed bid procedure.

Nothing in this chapter shall prohibit the Town from contracting for repairs of an immediate nature for health and safety reasons and to prevent damage or injury.

Materials. When multiple suppliers of material are not within the transportable range, the Public Works Department shall seek to obtain the best price within the transportable range.

Existing maintenance or service contracts which have no fixed duration shall remain in effect on a renewable basis and shall not be subject to the acquisition and/or bid requirements outlined in § 117-3 until such time as said contract is terminated in accordance with § 117-3D.

Purchases of used equipment where comparable bids are unavailable, and it has been determined by the Town Manager that the purchase of a particular piece of equipment is of good value to the Town, shall be exempt.

Services furnished by a monopoly utility.

Annual maintenance agreements that are provided by a specialized vendor for specialized types of equipment, i.e., telephone or computer system service contract.

Those exempted or determined by law.

On-line reverse auctions pursuant to State Public Act 08-141, approved June 5, 2008.

Items that will maintain consistency with other like items previously purchased.

The purchase of surety bonds and insurance shall be exempt

§ 117-5 Sealed bid procedure.

All requests for bids shall be advertised in a newspaper suitable for notifying multiple prospective bidders or advertised on the State of Connecticut Department of Administrative Services Web page.[1] When necessary, the Town shall also directly solicit potential qualified sources for bids. The goal shall be to obtain at least three bids. If, however, after due diligence has been exercised, fewer than three bids have been received, the Town may award the contract if it is in the best interest of the Town.

[1]

Editor's Note: The Department of Administrative Services Web page can be accessed at www.das.state.ctus.

A copy of the invitation to bid or the legal notice will be posted at the Town Hall in the office of the Town Clerk until the bids have been opened.

Bid documents shall be available to all firms indicating an interest in bidding. A fee may or may not be charged for bid documents.

§ 117-6 Insurance and licensing requirements.

All parties employed by the Town to perform work on Town-owned property shall carry the required level of insurance coverage, indemnity, and hold the Town harmless. The Town shall be named as additional insured on the insurance certificate. When required by law (such as the trades, etc.), all parties performing work for the Town shall have and maintain the required licenses and/or certifications to perform such work.

§ 117-7 Waivers.

With a vote of 3/4 of the elected membership of the Town Council, at a regular or special meeting, the Town Council may waive the bidding procedure with regard to any purchase upon finding that such waiver is in the best interest of the Town. Such waiver shall include in the record the reasons for the Council's action. Public notice shall be given at least seven days in advance of any vote to consider a waiver of the bidding procedure.

§ 117-8 Nondiscrimination.

Purchasing shall be conducted without regard to the political affiliation, race, sex, age, religion, national origin, disability, familial relationship or business associations of vendors and/or contractors. All purchasing will comply with the provisions of applicable state and federal laws pertaining to civil rights, equal opportunity and affirmative action.

§ 117-9 Conflicts of interest.

The Ethics Resolution as adopted and amended by the Town Council shall be applicable to this chapter.[1]

[1]

Editor's Note: See Ch. E, Code of Ethics.

§ 117-10 Local vendor preference.

For all bids and quotes submitted for purchases exceeding $20,000, any qualified and registered local vendor who has submitted a bid or quote not more than 5% higher than the lowest qualified bid or quote will be awarded the contract or purchase order, so long as such local vendor agrees to provide the goods or services which are the subject of such contract or purchase order at the same price as the lowest qualified bid or quote received. In the event that more than one local vendor submits a bid or quote not more than 5% higher than the lowest qualified bid or quote, the award shall be to that local vendor originally submitting the lowest qualified bid or quote.

For purposes of this section, a qualified and registered local vendor is defined as one who maintains a principal place of business within the Town limits of East Hampton by occupying real property in which to conduct such business or by paying ad valorem taxes on business property to the Town. Evidence of the maintenance of such principal place of business may include the ownership or long-term lease of real estate from which the principal place of the business is operated or the payment of property taxes on the personal property of the business to be used in the performance of the bid. This section shall not apply in any situation where the preference created by this section would violate federal or state law or any existing contracts.

This section shall not apply in those instances where the bid requested involves a cooperation purchasing arrangement between the Town and other municipalities or the State of Connecticut.