[Ord. No. 3641, 3-20-2023]
A.
This purchasing policy provides guidelines to be followed in purchasing goods and services for the City of Harrisonville, Missouri ("City"). The City Administrator shall be responsible for enforcing this policy. These policies are intended to promote increased efficiency, standardization of purchasing procedures while obtaining supplies, equipment, and services as economically as possible. This purchasing policy is established pursuant to the authority granted in Section 130.020, Purchasing Policy Procedure, of the City of Harrisonville, Missouri City Code.
B.
Each department is responsible for the management of their budget
and purchasing.
C.
All purchasing will demonstrate a reasonable and good faith effort
to obtain goods and services at the lowest possible cost with the
optimum quality needed. Competition among suppliers shall be encouraged.
D.
Accepting gratuities in exchange for preferential treatment is strictly
prohibited. Any discounts, free merchandise or prizes given as the
result of City purchases become the property of the City.
E.
The City considers its vendors to be valuable assets. Sales representatives
and vendors shall be treated with respect and dignity. They will be
helpful in obtaining product and pricing information.
F.
The City will attempt to save as much money as possible by combining
orders for greater buying power and by standardizing and simplifying
the products being purchased.
G.
Procurement and purchasing procedures and administrative practices
developed shall be uniformly standardized but sufficiently flexible
to care for isolated unique conditions. Items commonly used in the
various departments, therefore, shall be standardized whenever consistent
in the interest of efficiency and economy. The necessity for pre-planning
supply and equipment needs by using departments cannot be overemphasized.
H.
No member of the Board of Aldermen of the City of Harrisonville shall:
1.
Perform any service for the City or an agency of the City for
any consideration other than the compensation provided for the performance
of his/her official duties, except as provided in the following paragraphs.
2.
Sell, rent or lease any property to the City or any agency of
the City for consideration in excess of five hundred dollars ($500.00)
per transaction or five thousand dollars ($5,000.00) per annum, unless
the transaction is made pursuant to an award on a contract let or
sales made after public notice and, in the case of property other
than real property, competitive bid, provided that the bid or offer
accepted is the lowest received.
3.
No sole proprietorship, partnership, joint venture, or corporation
in which any member of the Board of Aldermen is the sole proprietor,
a partner having more than a ten percent (10%), partnership interest,
or a coparticipant or owner in excess of ten percent (10%) of the
outstanding shares of any class of stock shall:
a.
Perform any service for the City or any agency of the City for
any consideration in excess of five hundred dollars ($500.00) per
transaction or five thousand dollars ($5,000.00) per annum, unless
the transaction is made pursuant to an award of contract after public
notice and competitive bidding, provided that the bid or offer accepted
is lowest received.
b.
Sell, rent or lease any property to the City or any agency of
the City where the consideration is in excess of five hundred dollars
($500.00) per transaction or five thousand dollars ($5,000.00) per
annum, unless the transaction is made pursuant to an award on a contract
let or sale made after public notice and, in the case of property
other than real property, competitive bidding, provided that the bid
or offer accepted is the lowest bid.
c.
The Board of Aldermen sets goals, priorities and standards for
the City programs and services through adoption of the annual budget.
The budget establishes expenditure levels for each department. No
further Board of Aldermen action is required to initiate purchases
within the budget limits.
d.
Department heads are granted full responsibility and broad discretion
by the City Administrator to make purchases within the scope of their
departmental appropriations. Budget appropriations do not mandate
expenditures. Purchases are to be mandated by need, not an unspent
budget appropriation. The City Administrator may establish spending
levels below those budgeted if revenue collections are inadequate
to fulfill budgetary needs. Expenditures more than the appropriated
personnel services element require written approval from the City
Administrator.
I.
Notwithstanding any requirements or provisions arising from Federal or State law, the Board of Aldermen may, by motion and affirmative vote of a majority of its members, suspend and waive any and all provisions and requirements imposed by Sections 135.020 through 135.030. Such motion shall clearly state the provisions and requirements to be suspended and waived, and either the duration of the suspension and waiver or the particular purchases to which the suspension and waiver applies.
J.
The City shall endeavor to require all vendors to provide certificates
of insurance and/or bonds such that the City is satisfied that it
shall not be exposed to unwarranted or unnecessary liability arising
from its purchases and contracts. It is the department head's
responsibility to verify all applicable licenses, insurances and bonds
are valid prior to entering into any agreement of services and goods.
[Ord. No. 3641, 3-20-2023]
A.
Specifications. It is the responsibility of the departments to write
specifications and establish the quality of the product or service
required. Specifications should be written to foster competition.
B.
Preference Policy. All things being equal, the City prefers to deal
with local distributors or local sources. If an item is needed, local
vendors need to be contacted to see if the items can be obtained from
them as economically as out-of-town sources. The City shall have an
agreement with the State of Missouri Cooperative Procurement Program
for purchases of goods. Vendors shall be treated in a fair and businesslike
manner with preference given to area vendors when all factors are
reasonably comparable.
C.
Domestic Product Policy. The City shall not enter any contract for
the purchase or lease of manufactured commodities unless the contract
contains a provision that any manufactured goods or commodities used
or supplied in the performance of that contract or any subcontracts
thereto shall be manufactured, assembled, or produced in the United
States, except:
1.
Where the specified products are not manufactured, assembled,
or produced in the United States in sufficient quantities to meet
the requirement of the contract;
2.
The specific product cannot be manufactured, assembled, or produced
in the United States within the necessary time or in sufficient quantities
to meet the contract requirements;
3.
Where the costs of buying United States manufactured products
would be more than five percent (5%) over foreign made goods; or
4.
Where the contract is for less than one thousand dollars ($1,000.00).
D.
Purchases Supported By Grant Funds. Departments shall review all
requirements for grant funding to ensure the procurement process required
as a condition to receiving said grant funds are complied with during
the procurement of the item. Departments may have the CIP Analyst
assist in the inclusion of all required procedures that are in addition
to the requirements of this policy.
1.
To the extent that a grant contains a requirement related to
mandatory procurement policies that are not contained in this Purchasing
Policy, the City Administrator shall have the authority to waive provisions
of this policy in the form of a written memorandum for the limited
purpose of ensuring compliance with the grant.
E.
Product Testing/Demonstrations. Product testing and demonstrations
may be held as deemed appropriate by the department and does not require
prior approval. In no case shall the retention of a test item by the
City be evidence of intent to purchase said item.
1.
The using agencies under the authority of the City Administrator
shall be responsible for ensuring that all supplies and contractual
services conform to the specifications set forth in the order or contract.
2.
The City Administrator shall have the authority to require chemical
tests of samples submitted with bids and samples of deliveries which
are necessary to determine their conformance with the specifications.
In the performance of such tests, the City Administrator shall have
authority to make use of laboratory facilities of any agency of the
City or any outside laboratory.
F.
Computer Related Items. Purchases of computer-related equipment/software
must be made via the IT Department unless the Director of Administrative
Services delegates certain purchases to certain departments. All purchases
shall follow this procurement policy. Prior approval of the Director
of Administrative Services or his/her designee is required to purchase,
transfer, or dispose of any computer software or related hardware.
G.
Capital Asset Items. Departments shall follow the City's Capital
Asset Policy when accepting and receiving any item that meets the
definition of a capital asset. An item is a capital asset if all the
following criteria are met:
H.
Sensitive Asset Items. A sensitive asset is an asset with a value
of five thousand dollars ($5,000.00) or less which could easily be
adopted for personal use or converted into cash, including property
for which theft, loss, or misplacement could be dangerous to the public
safety or community security. Sensitive asset property must be subject
to physical security, protection, control, and accountability by the
department assigned with responsibility of the asset. Examples of
sensitive asset items include but are not limited to, firearms and
weapons; computers; cell phones; and audio-visual equipment.
I.
Construction Projects. Construction projects should be procured through
and coordinated with the Public Works Department. Projects of this
type and size require specific construction documents, professional
services, and management. Section 4 Approval Levels apply to construction
projects.
J.
Licenses. It is the responsibility of the department doing the purchasing
or construction of a project to confirm that a business has a valid
City business license on file.
K.
Insurance Requirements. If applicable, vendors shall provide a certificate
of insurance and endorsements in accordance with all contractual requirements.
L.
Vendor Requirements. To be placed in the City's ERP system as
a vendor, vendors are required to provide a Federal W-9 which needs
to be turned in to the Accounts Payable Office, prior to any purchase
of goods or services.
M.
Work Authorization And E-Verify. For any contract for services greater
than five thousand dollars ($5,000.00), the successful bidder shall
comply with Section 285.530, RSMo., as amended, and: (1) provide by
affidavit affirmation that it does not knowingly employ any person
who is an unauthorized alien, and (2) provide documentation affirming
its enrollment and participation in a Federal work authorization program
with respect to the employees working in connection with this contract.
The required documentation affirming enrollment must be from the Federal
work authorization program provider. A letter from bidder reciting
compliance is not sufficient. When applicable, solicitations shall
require the signed and notarized work authorization affidavit and
the electronic signature page from the E-Verify program prior to the
issuance of a contract.
N.
Prevailing Wage. Contracts for construction or major repair projects
that have an estimated or actual expenditure of seventy-five thousand
dollars ($75,000.00) or more shall comply with Section 290.210, et
seq., RSMo., as amended. Missouri's prevailing wage law establishes
a minimum wage for certain projects. For assistance determining if
a project is in compliance, contact the City Attorney.
O.
Contract Total Cost. When determining the total cost for a contract,
departments shall include the annual cost of goods, services, maintenance,
shipping, handling, travel expenses, labor, installation, and any
other ancillary costs ("contract total cost"). The amount of the contract
total cost determines which approval level in Section 4 applies. The
annual lease amount for equipment or real property and associated
ancillary costs shall be used as the contract total cost when applying
approval levels in Section 4.
P.
Funding. Prior to initiating any procurement, staff shall ensure
that sufficient budgeted funds are available for the acquisition of
the goods and/or services.
Q.
Purchase Orders. Absent extenuating circumstances, staff should create
a requisition for purchase order approval, prior to making a purchase
of five hundred dollars ($500.00) or more from an awarded quote, bid,
RFP, RFQ, ITB, or other solicitation process to assure City and vendor
compliance to the contract or the City's standard terms and conditions
are incorporated. Examples of crucial times to process a requisition
are projects that have prevailing wage, cover multiple years, goods
that may have a lead time, or when it is critical the City's
terms and conditions are included. Staff should also provide all necessary
forms for purchasing and inventory.
[Ord. No. 3641, 3-20-2023]
As used in this purchasing policy, the following terms shall
have the meanings ascribed to them:
An insurance agreement, accompanied by a monetary commitment,
by which a third party (the surety) accepts liability and guarantees
that the bidder will not withdraw the bid. The bidder will furnish
bonds in the required amount and if the contract is awarded to the
bonded bidder, the bidder will accept the contract as bid, or else
the surety will pay a specific amount.
The Board of Aldermen of the City, as set forth in the City
Code.
A written alteration that is issued to modify or amend a
construction contract or construction project purchase order. A bilateral
(agreed to by all parties) or unilateral (government orders a contract
change without the consent of the contractor) request which directs
the contractor to make changes to the contracted scope of work or
specifications. In reference to construction contracts, it relates
primarily to changes caused by unanticipated conditions encountered
during construction not covered by the drawings, plans or specifications
of the project.
A form used on construction contracts when an amendment to
the original contract is requested by the contractor and the work
must proceed prior to processing a change order in order to prevent
project delays.
The City of Harrisonville, Missouri.
The Code of Ordinances of the City.
The process of utilizing labor to build, alter, improve,
or demolish any structure, building or public improvement. Generally
does not apply to routine maintenance, repair, or operation (MRO)
of existing real property.
Personal services, all telephone, gas, water, electric light
and power services, towel and cleaning services, leases for all grounds,
buildings, offices, or other space required by the using agency and
the rental, repair or maintenance of equipment, machinery and other
City-owned personal property. The term shall not include insurance,
professional and other contractual services which are in their nature
often unique and not subject to normal competitive bidding.
Any department, agency, commission, bureau, or other unit
in the City Government not under the direction and control of the
Board of Aldermen or part of any other governmental unit whether school
district, special authority, other municipality, County or otherwise
which cooperates with the City in purchasing any items covered by
this policy.
A bid that must be submitted in a sealed envelope and in
conformance with a prescribed format to be opened in public at a specified
date and time. As it pertains to the City, formal bids must be solicited
for all goods or services fifteen thousand dollars ($15,000.00) or
more.
A competitive bid, price quotation or proposal for goods
or services that is conveyed by a letter, e-mail or other written
manner that does not require a formal sealed bid or proposal, public
opening, or other formalities. Generally relegated to requirements
that may be considered low value or fall under a stipulated price/cost
threshold.
An unexpected and urgent situation where an immediate threat
to public health and safety exists; where conservation of public resources
is at risk; where an immediate response is necessary to prevent further
damage to public property, machinery, or equipment; where delay would
result in significant financial impact to the City as determined by
the City Administrator; or an emergency as declared by the Board.
All supplies, materials, equipment, commodities, and capital
outlays.
Any department, agency, commission, bureau, or other unit
in the City Government using supplies or procuring contractual services
as provided for in this policy and which shall be under the direction
and control of the Board of Aldermen.
