TOWN OF PORTSMOUTH, RI PURCHASING POLICY & PROCEDURES

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1 TOWN OF PORTSMOUTH, RI PURCHASING POLICY & PROCEDURES TABLE OF CONTENTS SECTION I. AUTHORITY... 2 SECTION II. EXCLUSIONS... 2 SECTION III. APPLICABILITY... 2 SECTION IV. PURCHASING AUTHORITY... 2 SECTION V. SMALL PURCHASES NOT REQUIRING COUNCIL APPROVAL... 3 SECTION VI. BID PURCHASING REQUIREMENTS... 4 SECTION VII. SPECIAL RULES... 4 SECTION VIII. SOLE SOURCE PROCUREMENT... 5 SECTION IX. EMERGENCY PROCUREMENT... 5 SECTION X. APPLICATION TO OTHER ENTITIES... 5 SECTION XI. SEVERABILITY... 5 SECTION XII. EFFECTIVE DATE... 5

2 TOWN OF PORTSMOUTH, RI Purchasing Policy & Procedures Section I. Authority This policy is adopted pursuant to the authority contained in Section , Rhode Island General Laws, 1956, 1988 Reenactment, as amended (RIGL). This policy supersedes the Small Purchases Regulations adopted by the Town Council February 8, Section II. Exclusions Contracts for professional, architectural, consulting or engineering services are expressly exempted from the terms of this policy and shall follow the qualification based selection process in accordance with RIGL The procurement of the service of an attorney, physician or dentist by the Town is also expressly exempted from the terms of this policy in accordance with RIGL Section III. Applicability Procurements, not to exceed an aggregate amount of $10,000 for construction and $5,000 for all other purchases shall be made in accordance with this policy. These amounts shall be increased or decreased annually hereafter at the same rate as the Boston Regional Consumer Price Index. Procurement requirements shall not be artificially divided so as to constitute a small purchase under RIGL For purposes of this policy, the terms procurement and construction shall be defined as in RIGL Purchases in excess of the above specified amounts shall be made in accordance with state law and Section VI of this policy. Section IV. Purchasing Authority The Town Council shall have the following final powers and discretions with respect to all purchases: (a) (b) (c) To purchase or contract for all supplies, materials and equipment required by any office, department or agency. To establish and enforce specifications with respect to supplies, materials and equipment required by the Town. To be responsible for the inspection of deliveries of supplies, materials and equipment and to determine their quality, quantity and conformance with specifications and to have the authority, where personal inspection is not feasible, to delegate said responsibility. 2

3 (d) To transfer to or between offices, departments or agencies surplus, obsolete or unused supplies, materials and equipment and to sell any Town property. (e) (f) To be responsible for the storage and distribution of all supplies, materials and equipment used by any office, department or agency and to have charge of any general store rooms and warehouses of the Town. To delegate any or all of the above to the Town Administrator upon majority vote. In accordance with RIGL , the Town Council hereby appoints the Finance Director as Purchasing Agent. The Finance Director is responsible for ensuring that the Town s procurement actions comply with State law. Section V. Small Purchases Not Requiring Prior Council Approval The Town Administrator or Department Head, acting on behalf of the Town Council, may approve the purchase of any previously budgeted item or items otherwise reasonably necessary or incidental to the day to day functioning of Town offices and departments, without prior approval of the Town Council providing that such purchase shall be in a sum less than $5,000 ($10,000 for construction). In the case of purchases of less than $1,000, such purchases may be made without the necessity of seeking competitive bids. Where practicable, however, solicitation of competitive quotations is encouraged. In the case of purchases costing $1,000 or more, but less than $2,500, three telephonic or written quotations shall be necessary and documented, but advertising and approval by the Town Council shall not be necessary. If three quotes cannot be obtained, it shall be so stated in writing. Exhibit A is a form which may be used for either telephonic or written quotations. In the case of purchases costing $2,500 or more, but less than $5,000 ($10,000 for construction), three written quotations shall be necessary, but advertising and approval by the Town Council shall not be necessary. If three written quotes cannot be obtained, it shall be so stated in writing. The $5,000 and $10,000 figures shall be adjusted annually at the same rate as the Boston Regional Consumer Price Index. The requirement for three telephonic or written quotes may be waived if the goods or services have already been competitively bid on a local, regional, state or national level by a governmental organization and the Town is permitted to use the contract price established by the other governmental entity. 3

4 Such small purchases shall be deemed ratified as if expressly authorized by the Town Council at the time the Town Administrator or Department Head first approves the purchase. The Finance Director is responsible for ensuring that procurement using grant funds is in accordance with the terms of the grant. The Finance Director is also responsible for ensuring that purchases made with general revenue, special revenue and grant funds are made lawfully. Such funds may not be used to purchase political materials or services. Such funds may not be used to procure goods or services which would benefit Town employees or elected officials. Department Heads will retain bid documentation for a minimum of three years after bid award. Section VI. Bid Purchasing Requirements Each purchase which is not a small purchase as set forth in the preceding section shall be subject to the method of source selection set forth in RIGL The Finance Director is responsible for ensuring that the Town complies with State law for large procurement actions. (a) (b) Competitive sealed bidding will be the most common method of source selection. Specifications can be prepared that permit award on the basis of either the lowest qualified bid price or the lowest qualified evaluated bid price. The invitation for bids shall state whether award shall be made on the basis of the lowest bid price or the lowest evaluated or responsive bid price. If the latter basis is used, the objective measurable criteria to be utilized shall be stated in the invitation for bids. The invitation to bid shall be advertised and other provisions of RIGL shall be followed. Upon receiving the report of the Finance Director for large procurement actions, the Town Council, by majority vote, shall award the purchase to the lowest qualified bid or the lowest evaluated or responsive bid as required by RIGL The requirement for competitive sealed bidding shall be considered met if the goods or services have already been competitively bid on a local, regional, state or national level by a governmental organization and the Town is permitted to use the contract price established by the other governmental entity. Section VII. Special Rules The Finance Director may make any and all such special rules and regulations affecting any specific bid purchase from time to time as necessary and relevant under the circumstances concerning any such purchase provided, however, that all responsive bidders are furnished notice of such special regulations and an opportunity to inspect the same prior to the submission of a bid. 4

5 Section VIII. Sole Source Procurement A contract may be awarded for a supply, service or construction item without competition when the Finance Director (or the Department Head in the case of small purchasing) determines, in writing, that there is only one source for the required supply, service or construction item as permitted by RIGL Section IX. Emergency Procurement The President of the Town Council, Town Administrator or Department Head may make or authorize others to make emergency procurements when there exists a threat to public health, welfare, or safety under emergency conditions as defined by the State s Emergency Management Agency or where the procurement will be in the best interest of the Town; provided, that emergency procurements shall be made with as much competition as is practicable under the circumstances. A written determination of the basis for the emergency and for the selection of a particular contractor shall be included in the contract file. Section X. Application to Other Entities The provisions of this policy shall not apply to purchases by the School Department since a specific provision in the Town Charter pertains. Section XI. Severability If any part of this policy is held unconstitutional, or otherwise invalid or unenforceable, by a judicial court of competent jurisdiction, the other remaining portions of this policy not affected thereby shall remain in full force and effect. Section XII. Effective Date This policy shall take effect upon its adoption or amendment. The Town Council approved this policy on April 11, This policy supersedes the Small Purchase Regulations which were previously adopted on February 8, Small Purchase Regulations Adopted February 8, 1993 Reprinted 8/27/96 Superseded by this Policy April 11,

6 Telephone Quotation Form Presented as EXHIBIT A is a copy of the Town s approved Telephone Quotation form. This form must be used to document price quotations obtained through telephone contact with prospective Vendors for any goods and services with a dollar value between $1,000 and $2,500. Form Field Reference Description A. Item Name Enter a brief common name of the item. B. Item Description Enter a brief item description that includes important specifications of the item such as size (length, height, width, circumference, caliber, etc.), capacity (tonnage, gallons, motor wattage, 3 drawer, etc.), or other distinguishing and important features (e.g. fireproof, locking, construction characteristics, etc.) C. Vendor Name Enter the Vendor s full company name, including abbreviations such as Co., Inc., LLP, etc. In the case of sole proprietors, please provide the Vendor s d.b.a. or Doing Business As name. D. Vendor Rep Name Please provide the name of the Vendor s representative who supplied the telephone quotation. If appropriate, provide a title of the individual providing the quotation (e.g. sales representative, owner, etc.) E. Telephone Number Enter the telephone number of the Vendor. Number shall include area code, and extension if applicable. F. Delivery Date Request that the Vendor provide a delivery date for the goods or services. If items are stock items that are immediately available, use the date of the quotation, and indicate that the goods are immediately available. Enter the date in month/day/year format. G. Quantity Please indicate the numeric quantity of the item for which the quotation applies. H. Price per Unit of Measure Please provide the actual quoted cost of the item, exclusive of any delivery, set-up, or other charges. I. Other Charges Enter any additional costs associated with the delivery, set-up, customization, or associated service contract cost of the item. J. Total $ Value Calculate the total dollar value of the price quote. K. Provide any other important information regarding the item or quotation, particularly any information detailing other charges or services included in the quotation. If the Vendor utilizes part numbers, please provide the Vendor s part number. L. Recommended Vendor Provide the name of the Vendor selected based upon the quotation data obtained and documented. M. Primary Reason for Indicate with a check mark the primary reason for the selection of the 6

7 Form Field Reference Vendor Selection Description recommended Vendor. N. Signature of Person Obtaining the Quotations O. Date Quotations were Completed P. Reason for Fewer than 3 Quotations Q. Department Head Approval R. Date of Department Head Approval The individual obtaining the quotations must sign (in ink) attesting to the care, due diligence and accuracy with which they obtained and documented the quotation information provided by the Vendor. Please indicate the date (month/day/year format) on which the Telephone Quotation form was completed. If the form has less than 3 quotations, the person obtaining the quotations must indicate (with a check mark or description in the case of other ) a valid reason for why the required additional quotations were not obtained. The Department Head must sign (in ink) the Telephone Quotation form indicating his or her approval of the quotation process and Vendor selection, and concurrence that the goods selected are fit for the purpose desired. Please indicate the date (month/day/year format) on which the Department Head reviewed and concurred with the quotation process and Vendor selection. 7

8 Exhibit A Town of Portsmouth Telephone Quotation Item Name: (A) Item Description: (B) Vendor Name Vendor Rep. Phone Number Delivery Date Qty Unit Price Other Charges Total Cost 1. (C) (D) (E) (F) (G) (H) (I) (J) (K) Recommended Vendor (L) Reason for Selection: (M) Lowest Price Best Terms Quality Other: Signature of Person Receiving Quotes (N) Date (O) If less than 3 Quotes, indicate reason (with check mark) (P) Emergency Purchase Proprietary Item Sole Source State Contract Department Head Approval (Q) Date (R) 8

9 Town of Portsmouth Telephone Quotation Item Name: Item Description: Vendor Name Vendor Rep. Phone Number Delivery Date Qty Unit Price Other Charges Total Cost Recommended Vendor Reason for Selection: Lowest Price Best Terms Quality Other: Signature of Person Receiving Quotes Date If less than 3 Quotes, indicate reason (with check mark) Emergency Purchase Proprietary Item Sole Source State Contract Department Head Approval Date 9

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