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HomeMy WebLinkAbout91-22.-~ ORDINANCE NO. 91-22 An Ordinance Establishing Purchasing Policies and Procedures for the Town of Pulaski WHEREAS, the Virginia Public Procurement Act, codified in Title 11 of the Code of Virginia of 1950, as amended, establishes a general policy and procedure for the procurement of goods, serv- ices, and construction from nongovernmental sources through com- petitive principles; and, WHEREAS, Section 11-35(D) of the Public Procurement Act provides an exemption from the provisions of the Act, except as stipulated in Section 11-35(E), to any town whose governing body adopts alternative policies and procedures which are based on competi- tive principles and which are generally applicable to the pro- curement of goods and services by the town; and, WHEREAS, Section 11-35(G) of the Public Procurement Act states that it is the intent of the General Assembly that individual public bodies enjoy broad flexibility in the design of their loc- al purchasing policies and procedures based on competitive prin- ciples; and, WHEREAS, it is the desire of the Town Council to adopt "alterna- tive policies and procedures which are based on competitive ciples" but which are also designed to address the specific needs of the Town of Pulaski. NOW, THEREFORE, BE IT ORDAINED by the Council of the Town of Pulaski, Virginia, meeting in Regular Session on this 3rd day of September, 1991, that: Section 1. The following shall be, and hereby is, adopted as the general Procurement Policy for the Town of Pulaski: A.__Desianation of Purchasina Official The Town Manager is hereby appointed as the principal Pur- chasing Official for the Town of Pulaski. The Town Manager may designate a responsible person to perform the duties of Purchasing Official, subject to his/her direction. B. Authority and Responsibility of Purchasina Official The Purchasing Official is hereby authorized, and it shall be his/her responsibility, to oversee and approve, where appro- priate, the procurement of goods, services, insurance, and construction for the Town of Pulaski in accordance with the provisions of this ordinance. i The Purchasing Official is further authorized to adopt such rules and regulations as are deemed necessary for the inter- Page 1 - /oL- • nal management and operation of the procurement function. Such rules and regulations, which shall be consistent with the provisions of this ordinance and the mandatory provi- sions of the Virginia Public Procurement Act, shall be effec- tive upon the approval by the Town Manager. C. Unauthorized Purchases No Town officer, official, or employee shall procure any goods, services, insurance, and construction for the Town except in accordance with the provisions of this ordinance, the mandatory provisions of the Virginia Procurement Act, and such supplemental rules and regulations that may be adopted by the Purchasing Official. The Town shall not be bound by any such unauthorized purchase or contract. D.. Procurement Guidelines No procurement of goods or services of any kind or descrip- tion for the Town of Pulaski, for which payment is to be made from Town funds, shall be made by any Town officer, official, or employee, except in accordance with the following provi- sions: 1. Purchases of $1 000 or Less . Whenever any contemplated purchase or contract for goods or services is estimated to be for a sum of ONE THOUSAND DOLLARS ($1,000) or less, the Department Head of the de- partment making the purchase may order the goods or serv- ices as needed in accordance with the approved operating budget and established accounting procedures. 2. Purchases From $1 001 to $2 500 Whenever any contemplated purchase or contract for goods or services is estimated to be within the range of ONE THOUSAND AND ONE DOLLARS ($1,001) to TWO THOUSAND FIVE HUNDRED DOLLARS ($2,500), inclusive, the Department Head of the department making the purchase shall submit a pur- chase requisition to the Purchasing Official and shall obtain an approved purchase order prior to obligating the purchase. The purchase requisition must include at least two quota- tions from suppliers. Phone quotations may be accepted. In determining the quotation to be accepted, the Depart- ment Head and the Purchasing Agent shall use the same criteria as are used for formal sealed bids. Those cri- teria are listed in Section G below. Page 2 - i ~3 - • 3. Purchases from S2 501 to State Bid Limit Whenever any contemplated purchase or contract for goods or services is estimated to be at least TWO THOUSAND FIVE HUNDRED AND ONE DOLLARS ($2,501) but less than the AMOUNT UNDER THE VIRGINIA PUBLIC PROCUREMENT ACT WHICH REQUIRES SEALED COMPETITIVE BIDS, the Department Head of the de- partment making the purchase shall submit a purchase req- uisition to the Purchasing Official and shall obtain an approved purchase order prior to obligating the purchase. The purchase requisition must include at least three written quotations from suppliers. The Town Manager, however, is hereby authorized to approve requisitions containing less than three written quotations where, in his/her determination, it is impracticable to obtain that number of written quotations. In determining the quotation to be accepted, the Depart- ment Head and the Purchasing Agent shall use the same criteria as are used for formal sealed bids. Those cri- teria are listed in Section G below. 4. Purchases At or Exceedina State Bid Limit All contracts with nongovernmental contractors for the • purchase or lease of goods, or for the purchase of serv- ices, insurance, or construction, where such purchase or lease will exceed the AMOUNT UNDER THE VIRGINIA PUBLIC PROCUREMENT ACT WHICH REQUIRES SEALED COMPETITIVE BIDS OR COMPETITIVE NEGOTIATION, shall be awarded after competi- tive sealed bidding or competitive negotiation as provi- ded in this ordinance, unless otherwise authorized by law. Professional services shall be procured by competitive negotiation. Professional services shall include, but not necessarily be limited to, work performed by an inde- pendent. contractor within the scope of the practice of accounting, actuarial services, architecture, land sur- veying, landscape architecture, law, medicine, optometry, pharmacy, or professional engineering. 5. Town Manaaer Mav Require Competitive Sealed Biddina or Competitive Negotiations on Smaller Purchases The Town Manager may require competitive sealed bidding or competitive negotiations on smaller purchases where, in his/her determination, it is in the best interest of the Town to do so. 6. Competitive Neaotiation Instead of Competitive Bidding • Upon a determination made in advance by the Town Manager Page 3 /o ~- • and set forth in writing that competitive sealed bidding is either not practicable or not fiscally advantageous to the public, goods, services, or insurance may be procured by competitive negotiation. The writing, a copy of which shall be forwarded to the Town Council, shall document the basis for this determination 7. Procurement of Insurance Throu h Licensed A ent or Broker Upon a written determination made in advance by the Town Manager that competitive negotiation is either not prac- ticable or not fiscally advantageous, insurance my be procured through a licensed agent or broker selected in the manner provided for the procurement of things other than professional services in subdivision 3(b) of the definition of "competitive negotiation" in Section 11-37 of the Code of Virginia. The writing, a copy of which shall be forwarded to the Town Council, shall document the basis for this determination. 8. Determination of Single Source Upon a written determination made in advance by the Town Manager that there is only one source practicably availa- ble for that which is to be procured, a contract may be negotiated and awarded to that source without competitive bidding or competitive negotiation. The writing, a copy of which shall be forwarded to the Town Council, shall document the basis for this determination. The Town Man- ager shall also issue a written public notice stating that only one source was determined to be practicably available, and identifying that which is being procured, the contractor selected, and the date on which the con- tract was or will be awarded. This notice shall be post- ed in a designated public area on the day the Town Mana- ger awards or announces his/her decision to award the contract, whichever occurs first. 9. Emeraencv Purchases In case of an emergency which requires the immediate pur- chase of supplies or services and time is of the essence, as determined by the Town Manager, the Town Manager shall be empowered to authorize the purchase or to secure the goods or services needed without complying with the pro- cedures as set forth in this ordinance, including the awarding of a contract without competitive sealed bidding or competitive negotiation. However, such procurement shall be made with such competition as is practicable un- der the circumstances. A written determination of the basis for the emergency • and for the selection of the particular contractor shall be prepared by the Town Manager and shall be included in Page 4 io~l- • the contract file. A copy of the writing shall be for- warded to the Town Council. The Town Manager shall also issue a written public notice stating that the contract is being awarded on an emergency basis, and identifying that which is being procured, the contractor selected, and the date on which the contract was or will be award- ed. This notice shall be posted in a designated public area on the day the Town Manager awards or announces his/her decision to award the contract, whichever occurs first, or as soon thereafter as is practicable. E. Biddinct Procedures Competitive sealed bidding, as a method of contractor selec- tion, shall have the following minimum elements: 1. Issuance of a written Invitation to Bid. 2. Public notice of the Invitation to Bid at least ten cal- endar days prior to the date set for receipt of bids. 3. All notices and invitations shall state the time and place for the opening of the bids. 4. All bids shall be sealed, identified clearly on the enve- lope as a bid, and submitted to the Town Official or Of- ficer designated in the Invitation to Bid. 5. All bids shall be opened in public at a time and place stated in the public notices. 6. Evaluation of bids. 7. Award of contract to the lowest responsive and responsi- ble bidder. When the terms and conditions of multiple bids are so provided in the Invitation to Bid, awards may be made to more than one bidder. 8. The Town Manager shall have the authority to reject any and all bids and to readvertise or resolicit bids when- ever it is deemed, in his/her opinion, to be in the best interest of the Town. The reasons for the rejection shall be made part of the contract file. The Town Manag- er may also waive informalities in bids. F._. Procedures for Competitive Negotiations Competitive negotiations, as a method of contractor selec- tion, shall have the following minimum elements: 1. Issuance of a written Request for Proposal. • 2. Public notice of the Request for Proposal at least ten calendar days prior to the date set for receipt of pro- Page 5 ~-,~ • ~' posals. 3. All notices and invitations shall state the place and deadline for the receipt of proposals. 4. Individual discussions with two or more offerors deemed fully qualified, responsible, and suitable on the basis of initial responses, with emphasis on professional com- petence to provide the required services. 5. Selection in order of preference, based on the initial discussions, of two or more offerors whose professional qualifications and proposed services are deemed most mer- itorious. 6. Final negotiations, beginning with the offeror ranked first. 7. Award of contract. 8. The Town Manager shall have the authority to reject any and all proposals and to readvertise or resolicit pro- posals whenever it is deemed, in his/her opinion, to be in the best interest of the Town. The reasons for the rejection shall be made part of the contract file. • G. Determinin the Lowest Res onsive and Res onsible Bidder In determining the lowest responsive and responsible bidder, the following items shall be considered: 1. The ability, capacity, and skill of the bidder to perform the contract or provide the services required. 2. Whether the bidder can perform the contract to provide the services promptly or within required time periods without delay or interference. 3. The quality of performance of previous contracts or serv- ices. 4. The previous and existing compliance by the bidder with laws and ordinances of the Town. 5. The financial resources and the ability of the bidder to perform the contract or provide the service. 6. The quality, availability, and adaptability of the sup- plies or services. H-, Approval of Purchases Where the proposed expenditure of funds for goods or services is below the amount under the Virginia Public Procurement Act Page 6 /07 • which requires competitive bids or competitive negotiations, and budgetary funds are available for the purchase, then the contract shall be awarded in accordance with the provisions of Section D above. Where the proposed expenditure of funds for goods or services is above the amount under the Virginia Public Procurement Act which requires competitive bids or competitive negotiations, but where funds have been budgeted and are available for the purchase, then the Town Manager shall have the authority to approve and award the contract. Where the proposed expenditure of funds for goods or services is above the amount under the Virginia Public Procurement Act which requires competitive bids or competitive negotiations, but where funds have not been budgeted and are not available for the purchase, then the proposed contract award shall be submitted to the Town Council for approval. I. Discrimination Prohibited In the solicitation or awarding of contracts, no Town offi- cer, official, or employee shall discriminate because of the race, religion, color, sex, or national origin of the bidder or offeror. Whenever solicitations are made for competitive sealed bids or formal written proposals, businesses selected • from a list made available by the Department of Minority Business Enterprise shall be included. J. Cooperative Purchasing Subject to the approval of the Town Manager, the Purchasing Official is hereby authorized to participate in, sponsor, conduct, or administer a cooperative procurement agreement with the Commonwealth of Virginia or any other governmental jurisdiction for the purpose of combining requirements to in- crease efficiency or reduce administrative expenses. Except for the provisions in Section H, this ordinance shall not apply to purchases made through the Commonwealth of Vir- ginia or any other governmental jurisdiction which operates a cooperative procurement program and will allow the Town to purchase goods or services that the jurisdiction has made available following the completion of its own internal com- petitive purchasing procedures. K. Subdividina of Purchasina Prohibited No contract or purchase shall be subdivided for the purpose of circumventing or avoiding the requirements of this ordi- nance. Page 7 ~. ,(a ~' - • L. Local Buvina It is the desire of the Town to purchase from Pulaski vendors whenever possible. In determining the award of any contract, wherein the projected contract price will be less than the AMOUNT UNDER THE VIRGINIA PUBLIC PROCUREMENT ACT WHICH REQUIRES SEALED COMPETITIVE BIDS, the contract may be awarded to the lowest responsive and responsible bidder from the Town of Pulaski or Pulaski County so long as that bidder's bid price is not more than four percent greater than the bid price of the lowest responsive and responsible bidder from outside Pulaski County. M. Employment Discrimination by Contractor Prohibited Every contract over 510,000 shall include the following pro- visions as required by Virginia law: 1. During the performance of this contract, the contractor agrees as follows: a. The contractor will not discriminate against any em- ployee or applicant for employment because of race, color, sex, national origin, except where religion, sex, or national origin is a bona fide occupational qualification reasonably necessary to the normal op- eration of the contractor. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause. b. The contractor, in all solicitations or advertise- ments for employees placed by or on behalf of the contractor, will state that such contractor is an equal opportunity employer. c. Notices, advertisements, and solicitations placed in accordance with federal law, rule, or regulation shall be deemed sufficient for the purpose of meet- ting the requirements of this section. 2. The contractor will include the provisions of the fore- going paragraphs a, b, and c in every subcontract or pur- chase order of over 510,000, so that the provisions will be binding upon each subcontractor or vendor. N. Bid Bonds 1. Except in cases of emergency, all sealed bids or formal proposals for construction contracts shall be accompanied by a bid bond from a surety company selected by the bid- • der which is legally authorized to do business in Vir- ginia, as a guarantee that if the contract is awarded to such bidder, that bidder will enter into the contract for Page 8 ioy • the work mentioned in the bid. The amount of the bid bond shall not exceed five percent of the amount bid. 2. Nothing in this section shall preclude the Purchasing Official from requiring sealed bids or formal proposals for other goods and services to be accompanied by a bid bond, as provided above, when, in the determination of the Purchasing Official, it is in the best interest of the Town to so require. 0. Performance and Payment Bonds 1. Except in cases of emergency, upon the award of any pub- lic construction contract to any prime contractor fol- lowing the receipt of sealed bids or formal proposals, such contractor shall furnish to the Town the following bonds: a. A performance bond in the sum of the contract amount conditioned upon the faithful performance of the con- tract in strict conformity with the plans, specifica- tions, and conditions of the contract. b. A payment bond in the sum of the contract amount. Such bond shall be for the protection of claimants who have and fulfill contracts to supply labor or • materials to the prime contractor to whom the con- tract was awarded, or to any subcontractors, in the prosecution of the work provided for in such con- tract, and shall be conditioned upon the prompt pay- ment for all such material furnished or labor sup- plied or performed in the prosecution of the work. 2. Nothing in this section shall preclude the Purchasing Official from requiring, upon the award of any other con- tract for other public construction or for other goods and services, to require such contractor to furnish a performance bond and payment bond, as provided above, when, in the determination of the Purchasing Official, it is in the best interest of the Town to so require. P. Alternative Forms of Security 1. In lieu of a bid, payment, or performance bond, a bidder may furnish a certified check or cash escrow in the face amount required for the bond. 2. If approved by the Town Attorney, a bidder may furnish a personal bond, property bond, or bank or savings and loan association's letter of credit on certain designated funds in the face amount of the bid bond. Approval shall be granted only upon a determination by the Town Attorney that the alternative form of security proffered affords protection to the Town equivalent to a corporate surety's Page 9 _ /16 - • bond. Q. Sales and Transfers of Surplus Pro~ertY 1. All Departments shall submit to the Purchasing Official reports showing stocks of all supplies and equipment which are no longer used or needed or which have become obsolete, worn out, or scrapped. 2. The Purchasing Official is hereby authorized to transfer surplus stock to other Departments. 3. The Purchasing Official is hereby authorized to sell all supplies having an estimated value of FIVE THOUSAND DOL- LARS OR LESS ($5,000) which have become unsuitable for public use, or to exchange the same for, or trade in the same, on new supplies. Sales under this subsection shall be made by auction or to the highest bidder. R. Restricted Participation by Public Employees in Procurement Transactions Except as may be specifically allowed by the provisions of the State and Local Government Conflict of Interests Act (Code of Virginia, Section 2.1-639.1 et seq.), no Town offi- cer, official, or employee having official responsibility for • a procurement transaction shall participate in that transac- tion on behalf of the Town when the employee knows that: 1. The employee is contemporaneously employed by a bidder, offeror, or contractor involved in the procurement trans- action; or 2. The employee, the employee's partner, or any member of the employee's immediate family holds a position with the bidder, offeror, or contractor such as an officer, direc- tor, trustee, partner, or the like, or is employed in a capacity involving personal and substantial participation in the procurement transaction, or owns or controls an interest of more than five percent; or 3. The employee, the employee's partner, or any member of the employee's immediate family has a pecuniary interest arising from the procurement transaction; or 4. The employee, the employee's partner, or any member of the employee's immediate family is negotiating, or has an arrangement concerning, prospective employment with a bidder, offeror, or contractor. S. Solicitation or Acceptance of Gifts . No Town officer, official, or employee having official re- sponsibility for a procurement transaction shall solicit, Page 10 -~~_ • demand, accept, or agree to accept from a bidder, offeror, contractor, or subcontractor any payment, loan, subscription, advance, deposit of money, services or anything of more than nominal or minimal value, present or promised, unless consid- eration of substantially equal or greater value is exchanged. The Town may recover the value of anything conveyed in viola- tion of this section. T. Disclosure of Subseauent Employment No Town officer, official, or employee having official re- responsibility for procurement transactions shall accept em- ployment with any bidder, offeror, or contractor with whom the employee or former employee dealt in an official capacity concerning procurement transactions for a period of one year from the cessation of employment by the Town unless the offi- cer, official, or employee provides written notification to the Town Manager prior to the commencement of employment by that bidder, offeror, or contractor. U. Gifts by Bidders Offerors Contractors or Subcontractors No bidder, offeror, contractor, or subcontractor shall confer upon any Town officer, official, or employee having official responsibility for a procurement transaction any payment, loan, subscription, advance, deposit of money, services, or • anything of more than nominal value, present or promised, unless consideration of substantially equal or greater value is exchanged. V. Purchase of Building Materials, Etc., from Architect or Enaineer Prohibited Except in cases of emergency, no building materials, sup- plies, or equipment for any building or structure constructed by or for the Town shall be sold by or purchased from any person employed as an independent contractor by the Town to furnish architectural or engineering services, but not con- struction, for such building or structure, or from any part- nership, association, or corporation in which such architect or engineer has a pecuniary interest. W. Penalty for Violation Willful violation of any provision of Sections R through V above shall constitute a Class 1 misdemeanor. Upon convic- tion, any Town officer, official, or employee, in addition to any other fine or penalty provided by law, shall forfeit his/her employment. Section 2. Resolutions establishing purchasing procedures for the Town of Pulaski and adopted by the Town Council on January 4, • 1983, March 15, 1983, and July 17, 1984, and any other provisions of prior ordinances or resolutions in conflict with the provi- Page 11 ~~~ L, • sions herein, are hereby repealed. Section 3. This ordinance shall be effective upon adoption and is hereby adopted this 3rd day of September, 1991, by recorded vote of the Pulaski Town Council as follows: Charles D. Crispin - Aye Andrew L. Graham - Absent J. R. Schrader, Jr. - Aye W, H, Schrader, Jr. - -Afisent Mary Lou Copenhaver - Absent Alma H. Holston - -Aye Robert N. Glenn - ~ye- TOWN OF PULASKI, VIRGINIA BY : ~' ~~~ GARY HANCOCK, MAYOR Attest: ~• R th A. Harrell Clerk of Council • Page 12 -iii I, Ruth A. Harrell, Clerk of the Council of the Town of Pulaski, Virginia, do hereby certify that Ordinance No. 91-22 Establishing Purchasing Policies and Procedures for the Town of Pulaski, is a true and correct copy as adopted by the Town Council at their regular meeting on September 3, 1991. ~~ ~. ~ Ruth A. Harrell, Clerk of Council