[HISTORY: Adopted by the Board of Trustees of the Village
of Red Hook 3-4-1996; amended in its entirety 4-8-2019 by Res. No. 17-2019. Amendments noted where applicable.]
A.
Every purchase to be made must be initially reviewed to determine
whether it is a purchase contract or a public works contract. Once
that determination is made, a good-faith effort will be made to determine
whether it is known or can reasonably be expected that the aggregate
amount to be spent on the item of supply or service is not subject
to competitive bidding, taking into account past purchases and the
aggregate amount to be spent in a year. The following items are not
subject to competitive bidding pursuant to § 103 of the
General Municipal Law: purchase contracts under $20,000 and public
works contracts under $35,000; emergency purchases; certain municipal
hospital purchases; goods purchased from agencies for the blind or
severely handicapped; goods purchased from correctional institutions;
purchases under state and county contracts; and surplus and secondhand
purchases from another governmental entity.
B.
The decision that a purchase is not subject to competitive bidding
will be documented in writing by the individual making the purchase.
This documentation may include written or verbal quotes from vendors,
a memo from the purchaser indicating how the decision was arrived
at, a copy of the contract indicating the source which makes the item
or service exempt, a memo from the purchaser detailing the circumstances
which led to an emergency purchase or any other written documentation
that is appropriate.
All goods and services will be secured by use of written requests for proposals, written quotations, verbal quotations or any other method that assures that goods will be purchased at the lowest price that achieves the best value for the product or service sought and avoids favoritism, except in the following circumstances: purchase contracts over $20,000 and public works contracts over $35,000; goods purchased from agencies for the blind or severely handicapped pursuant to § 175-b of the State Finance Law; goods purchased from correctional institutions pursuant to § 186 of the Correction Law; purchases under state contracts pursuant to § 104 of the General Municipal Law; purchases under county contracts pursuant to§ 103, Subdivision 3, of the General Municipal Law; or purchases pursuant to § 50-5 of this chapter.
A.
The following method of purchase will be used when required by this
policy in order to achieve the highest savings:
|
Estimated Amount of Purchase Contract
|
Method
|
|---|---|
|
Up to $2,000
|
Discretion of the department head
|
|
$2,001 to $4,999
|
Good-faith effort to obtain three written/fax/e-mail quotes
|
|
$5,000 to $19,999
|
Good-faith effort to obtain three quotes or via request for
proposals
|
|
Over $20,000
|
Formal public bid
|
|
Estimated Amount of Public Works Contract
|
Method
|
|---|---|
|
Up to $2,000
|
Discretion of the department head
|
|
$2,001 to $4,999
|
Good-faith effort to obtain three written/fax/e-mail quotes
|
|
$5,000 to $34,999
|
Good-faith effort to obtain three quotes or via request for
proposals
|
|
Over $35,000
|
Formal public bid
|
B.
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 three proposals or quotations, the purchaser will document
the attempt made. In no event shall the failure to obtain three separate
proposals bar the procurement.
A.
Documentation is required of each action taken in connection with
each procurement. All purchases resulting from same shall have quotes
referenced on purchase orders or vouchers, thus creating an audit
trail.
B.
Documentation and an explanation will be required whenever a contract
is awarded to any person, institution and the like who is not the
lowest reasonable offeror. Documentation will include an explanation
of how the award will achieve savings or how the offeror was not reasonable
and responsible. A determination that the offer is not reasonable
and/or responsible shall be made by the purchaser and can only be
challenged upon just cause.
C.
The Board of Trustees will specify annually, by title, the individual
in each department with authority to authorize purchases under this
section, except as altered by union agreement. The Village Clerk and
Deputy Clerk shall have purchasing authority. All purchases for $500
or greater shall require approval from the Mayor. All public works
contracts will require Board approval.
Pursuant to General Municipal Law § 104-b, Subdivision
2(g) the procurement policy may contain circumstances when, or types
of procurement for which, in the sole discretion of the governing
body, the solicitation of alternative proposals or quotations will
not be in the best interests of the municipality. In the following
circumstances it will not be required that the Village of Red Hook
solicit quotations or document the basis for not accepting the lowest
bid:
A.
Professional service or services requiring special or technical skills,
training or expertise. The individual or company must be chosen based
on accountability, reliability, responsibility, skills, education
and training, judgment, integrity and moral worth. These qualifications
are not necessarily found in the individual or company that offers
the lowest price and the nature of the services are such that they
do not readily lend themselves to competitive procurement procedures.
B.
In determining whether a service fits into this category, the Village
of Red Hook Board of Trustees shall take into consideration the following
guidelines:
(1)
Whether the services are subject to state licensing or testing requirements;
(2)
Whether substantial formal education or training is a necessary prerequisite
to the performances of the services; and
(3)
Whether the services require a personal relationship between the
provider and the municipal officials. Professional or technical services
shall include, but not be limited to, the following:
(a)
Services of an attorney;
(b)
Services of a physician;
(c)
Technical services of an engineer engaged to prepare plans,
maps and estimates;
(d)
Securing insurance coverage and/or services of an insurance
broker;
(e)
Services of a certified public accountant;
(f)
Investment management services;
(g)
Printing services involving extensive writing, editing or art
work;
(h)
Management of municipally owned property; and
(i)
Computer software or programming services for customized programs
or services involved in substantial modification and customizing of
prepackaged software.
C.
Emergency purchases pursuant to § 103, Subdivision 4, of
the General Municipal Law. Due to the nature of this exception, these
goods or services must be purchased immediately, and a delay in order
to seek alternate proposals may threaten life, health, safety or welfare
of the residents. This subsection does not preclude alternate proposals
if item permits.
D.
Goods or services under $1,000. The time and documentation required
to purchase through this policy may be more costly than the item itself
and would therefore not be in the best interest of the taxpayer. In
addition, it is not likely that such de minimis contracts would be
awarded based on favoritism.
Notwithstanding the provisions of this chapter, the Village
of Red Hook may, for purposes of public purchases, utilize the provisions
of New York State General Municipal Law § 103 with regard
to so-called "piggybacking" of purchases. Pursuant to New York State
General Municipal Law § 103, the Village of Red Hook may
purchase through the bids solicited by the United States government,
New York State and/or any other state, political subdivision (counties,
towns, school districts, etc.), provided those contracts clearly state
that they are available for use by other governmental entities within
the requirements of New York General Municipal Law § 103(16).
Prior to such purchase, the Village of Red Hook will ensure that a
piggyback purchase qualifies as follows:
A.
The contract must have been let by the United States or any agency
thereof, any state or any other political subdivision or district
therein.
B.
The contract involved must have been available for use by other governmental
entities through the bid solicitation process. In such case, the Village
of Red Hook should determine that there is contained within the bidding
political subdivision's bid package a provision that the bid
is open to and can be used by either the Village of Red Hook or other
municipalities. This determination should be made on a case-by-case
basis.
C.
The specific contract must have been let to the lowest responsible
or on the basis of best value and in accordance with or in a manner
consistent with the provisions of New York General Municipal Law § 103.
A.
New York General Municipal Law § 103 requires competitive
bidding for purchase contracts and public works contracts and has
historically required that such bids be awarded to the lowest responsible
bidder whose bid meets the requirements of the specifications for
the project. General Municipal Law § 103 was amended to
provide that by adopting a resolution so providing, municipalities
may award purchase contracts which would otherwise be subject to the
"lowest bidder" rule on the basis of best value, as defined in State
Finance Law § 163, to a responsive and responsible bidder
or offeror.
B.
Notwithstanding the provisions of this chapter, the Village of Red
Hook hereby determines that it is in the best interest of its residents
to have the authority to award purchase contracts on the basis of
best value. Factors that may be used to enact the "best value" option,
where cost efficiency over time to award the good(s) or service(s)
to other than the lowest bidder include, but are not limited to:
C.
The Village of Red Hook may award purchase contracts, including contracts
related to the installation, maintenance or repair of apparatus, equipment
and supplies, but excluding any purchase contracts necessary for the
completion of a public works contract pursuant to Labor Law Article
8, on the basis of best value, as defined in State Finance Law § 163,
to a responsive and responsible bidder or offeror.
(1)
Where the basis for award is the best value offer, the Village of
Red Hook shall document, in the procurement record 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.
(2)
Where appropriate, the solicitation shall identify the relative importance
and/or weight of cost and the overall technical criterion to be addressed
by the Village of Red Hook in its determination of best value.
(3)
The election to award any such contract on the basis of best value
shall be made by the Board of Trustees. In the event that no such
election is made, purchase contracts will continue to be awarded to
the lowest responsible bidder furnishing any required security in
accordance with this chapter.
A.
All prices quoted must be "per unit" as specified: e.g., do not quote
"per case" when "per dozen" is requested; otherwise bid may be rejected.
B.
Bidder must insert the price per unit and the extensions against
each item in his bid. In the event of a discrepancy between the unit
price and the extension, the unit price will govern.
C.
Prices shall be net, including transportation and delivery charges
fully prepaid by the successful bidder to destination indicated in
the proposal. If award is made on any other basis, transportation
charges must be prepaid by the successful bidder and added to the
invoice as a separate item. In any case, title shall not pass until
items have been delivered and accepted.
D.
Where a bidder is requested to submit a bid on individual items and/or
on a total sum or sums, the right is reserved to award bids on individual
items or on total sums.
E.
All bids received after the time stated in the public notice may
not be considered.
Samples, when required, must be submitted strictly in accordance
with instructions, otherwise the bid may not be considered.
Awards will be made to the lowest responsible bidder, as will
best promote the public interest, taking into account the reliability
of the bidder, the quality of the materials, equipment or supplies
furnished, their conformity with the specifications, the purposes
to which required and the terms of delivery.
Delivery must be made in accordance with the instructions to
bidders and specifications.
The successful bidder shall not be held responsible for any
losses resulting if the fulfillment of the terms of the contract shall
be delayed or prevented due to wars, acts of God, strikes or any other
acts not within the control of the bidder.
The form of noncollusion bidding certification must be executed
by the bidder and submitted with the proposal.
