A. Purpose: The underlying purposes of the procurement procedures are:
1. To ensure fair and equitable treatment of all persons who wish to, or do, conduct business with the town.
2. To provide for the greatest possible economy in the town procurement activities.
3. To foster effective, broad based competition within the free enterprise system to ensure that the town will receive the best possible service or product at the lowest possible price.
B. Compliance Required; Exemption:
1. This policy shall not prevent the town from complying with the terms and conditions of any grant, gift or bequest that is otherwise consistent with law.
2. When procurement involves the expenditure of federal assistance funds, the town shall, as required, comply with applicable federal law regulations.
C. Source Selection And Contract Formation:
1. Work Area Appropriation: No appropriation may be encumbered and no expenditure may be made against any work area appropriation unless there is a sufficient unencumbered balance in the department's appropriation, except in cases of emergency as provided by this chapter.
2. Outstanding Encumbrances: All encumbrances designated as outstanding as of the end of the fiscal year shall be evidenced by a purchase order issued on or before the last day of the fiscal year and approved by the mayor and town council.
3. Purchases Made According To Purchasing Procedures: All purchases or encumbrances of such purchases by the town shall be made or incurred according to the purchasing procedures established by this chapter and applicable state law.
4. No Expenditures Made In Excess: No expenditures or encumbrances shall be made in excess of the total appropriations for any work area in the budget as adopted or subsequently amended. (Ord. 99-01, 2-5-1999)
5. Purchases Less Than One Thousand Dollars:
a. For small purchases of one hundred dollars ($100.00) or less, authorized personnel desiring to make purchases do not need to obtain bids and may purchase the items without any formal approval procedure. Authorized purchases of one hundred dollars ($100.00) or less do require a purchase order.
b. Small purchases in excess of one hundred dollars ($100.00) but less than one thousand dollars ($1,000.00) do not require bids of any type but do require a purchase order and preapproval from a member of the town council, before proceeding with the purchase.
6. Purchases Of One Thousand Dollars Or More:
a. Purchases of one thousand dollars ($1,000.00) or more shall require bids prior to obligation of funds. For purchases in excess of one thousand dollars ($1,000.00) the department head, before requesting bids, shall submit a purchase order to the town clerk for determination that the purchase would be within the department's budget. Upon approval of the purchase order by the town clerk, the purchase order and the town clerk's statement of approval shall be submitted to the financial officer, who will then submit the statement to the governing body, who may then approve or disapprove the purchase.
b. Following approval of the governing body, purchases of one thousand dollars ($1,000.00) or more shall be submitted for bids prior to obligation of funds, except as provided in subsection C6b(4) of this section.
(1) At least three (3) bids shall be required for purchases from one thousand dollars ($1,000.00) to ten thousand dollars ($10,000.00), and must be authorized by the town council. A purchase order is required.
(2) Sealed bids shall be required for all purchases in excess of ten thousand dollars ($10,000.00). The town council must authorize purchases from bids of more than ten thousand dollars ($10,000.00). The purchase shall not be divided so as to constitute a small purchase under this section.
(3) Purchase orders are required for all purchases. Clarkston Town will not be required to reimburse any individual, who spends their own money on town purchases, and fails to get a purchase order. (Res. 11-07, 3-22-2011)
(4) Contracts for public improvements with an estimated cost in excess of twenty five thousand dollars ($25,000.00) shall be in accordance with Utah Code Annotated section 10-7-20, as amended, as it currently exists, or as it hereafter may be modified. (Ord. 99-01A, 3-14-2002)
(5) The procurement of services is exempt. No bids or purchase orders are required for the procurement of services; however, the purchasing agent must contact a member of the town council, prior to the procurement of services, to inform the member of the need to obtain services. (Res. 11-07, 3-22-2011)
D. Bidding Procedures:
1. Sealed Bids: Bids or proposals shall be submitted sealed unless specified otherwise.
2. Single Source: A purchase may be awarded without competition or bidding when the work area supervisor and financial officer, with the approval of the town council determine in writing that there is only one source for the required service or item and the use of the sole source is allowed under applicable law. In that event, bids will not be necessary but all other procedures, as set forth in this chapter, shall be followed.
3. Invitation For Bids; Notice: An invitation for bids shall be issued when a contract is to be awarded by competitive sealed bidding or sealed proposals. The invitation shall include a purchase description and all contractual terms and conditions applicable to the procurement. Public notice of the invitation for bids shall be given at least fourteen (14) days prior to the date set forth therein for the opening of bids. The notice may include publication in a newspaper of general circulation and shall be so published when and as required by law.
4. Minimum Number Issued: In all instances, the request for bids/proposals shall be issued to at least three (3) separate vendor/sources, if reasonable and possible.
5. Specifications In Notice: Each request for notice of, or advertisement regarding, bids/proposals shall set forth specifications for the item or service to be purchased. A copy of such request, notice or advertisement shall be maintained in the office of the town clerk as well as with the department head.
6. Receipt Of Bids; Opening: Sealed bids/proposals shall be received and held by the financial officer who shall indicate on the bids the date and the time of the receipt of such bids. Sealed bids/proposals shall be opened at the time and place as specified in the bid notice request and shall be opened in the presence of at least two (2) of the following town officials: the financial officer, mayor, department head or the town treasurer. The amount of each bid and any other relevant information, together with the name of each bidder, shall be recorded. The record and each bid shall be open to public inspection.
7. Contracts; Compliance Required: All sealed bids for contracts shall be made in compliance with this chapter.
8. Construction Contracts: All notices of or requests for bidding on construction contracts shall specify requirements for a performance bond and payment bond in compliance with the provisions of Utah Code Annotated sections 14-1-18, 14-1-19, 63-56-38 and 63-56-39, as amended.
9. Bid Security: A bid security in an amount equal to at least five percent (5%) of the amount bid shall be required for all sealed bidding for construction contracts and shall be in the form of a bond provided by a surety company authorized to do business in the state, the equivalent in cash, or any other form satisfactory to the town.
10. Failure To Comply With Security Requirement: If a bidder fails to comply with the requirement for bid security, the bid may be rejected, unless it is determined that the failure to comply with the security requirement is nonsubstantial.
11. Irrevocable After Opening: After all bids are open, such bids shall be irrevocable for the period specified in the invitation or request for bids. However, if the bidder is permitted to withdraw a bid before the award, no action shall be taken against the bidder or the bid security.
12. Cost Plus Percentage Prohibited: "Cost plus a percentage of cost" contracts are prohibited. Subject to the limitations of this section, any type of contract that will promote the best interests of the town may be used; provided, that the use of a cost plus a percentage of cost contract is prohibited. A cost reimbursement contract may be used only when a determination is made that such a contract is likely to be less costly to the town than any other type or that it is impracticable to obtain the supplies, services or construction required except under such a contract. (Ord. 99-01, 2-5-1999)
13. Required Contract Clauses: The following clauses shall be required on all contracts: (Ord. 99-01, 2-5-1999; amd. 2003 Code)
a. The unilateral right of the town to order, in writing, changes in the work within the scope of the contract and changes in the time of performance of the contract that do not alter the scope of the contract work.
b. How the contract resolves variations occurring between estimated quantities of work in a contract and actual quantities.
c. How suspension of work can be ordered by the town.
14. All bids/proposals received, together with proof of advertisement by publication or otherwise, shall be maintained by the town auditor for a period of at least three (3) years following the award of any contract pursuant to such bids/proposals and for three (3) years following the date of first advertisement or publication of the notice for such bids/proposals in the event that all bids/proposals pursuant to that notice as advertised are rejected.
15. Recording: All bids/proposals shall be recorded as to the name of the bidder, the amount of the bid, compliance with the bid notice and request, and such record shall be submitted to the approving authority for confirmation and award of bid as required by this chapter.
16. Rejection: The town shall at all times and in all bidding circumstances reserve the right to reject any an all bids/proposals with or without cause.
E. Exemptions From Bidding Procedure: All purchases which are exempt from bidding procedures may be authorized and funds obligated by the approving authority, provided the expenditures are within the budget appropriation. The financial officer may approve individual purchases greater than eight thousand dollars ($8,000.00) under those exempt from bidding provisions only when the purchase was approved as a specific line item in the budget, otherwise, authorization shall be obtained as required by this chapter. The following purchases shall be exempt from bidding requirements:
1. Purchases from any federal or state agency, including, but not limited to, state central stores, surplus sources or state approved contract lists.
2. Salaries and benefits for town employees.
3. Utilities, including gas, electric, water, sewer, solid waste and telephone.
4. Ongoing contracts which have been provided for in the town's budget, such as, but not limited to, lease purchase agreements, land purchase agreements and otherwise.
5. Seminars, training and conferences for town employees, officers or authorized representatives.
6. Reimbursement for travel costs, and expenses incurred by town employees, officers and authorized representatives.
7. Fuel purchases, which may be bid on an annual basis rather than on a purchase by purchase basis.
8. Items to be acquired from sole source; providing, that there is written documentation that there is only one source for the required items.
9. Interlocal agreements.
10. Professional services such as legal, auditing, accounting, engineering, consulting and other similar services; provided however, that sealed proposals may be requested each three (3) years, or as conditions may warrant, on such services at the discretion of the town council.
F. Financial Officer's Duties In Procurement Process:
1. The financial officer is appointed by the town to control and expedite town purchasing. His/her duties and powers are set forth in this chapter.
2. The financial officer shall provide any assistance requested by town personnel desiring to make purchases with respect to bid preparation, actual purchases, delivery, installation and monitoring the performance of any purchase related agreements. The financial officer shall involve town personnel as may be reasonably necessary in the purchase process.
3. The financial officer, upon receipt of the general specifications prepared by town personnel and the request for bid, together with other related information, will typically, unless instructed otherwise:
a. Review the documents as submitted.
b. Make comparisons to other sources for the same items or services.
c. Prepare the bid document.
d. Contact potential bidders for bids.
e. Determine if purchases could be made jointly with other work areas in order to obtain better prices and terms.
f. Receive bids and confirm adherence to the specifications of the bid request and clarify any questions concerning the bid.
g. Submit any proposed agreements or leases to an attorney for a legal opinion.
h. Make recommendations to the department head, the mayor and to the town council. (Ord. 99-01, 2-5-1999)