(A) Incorporation. The preambles in the ordinance codified herein hereby are incorporated by this reference as if set out in full at this place.
(B) Responsible bidder.
(1) Criterion for responsible bidder. Bids shall be evaluated based on the requirements set forth in the invitation for bids, which may include the following criteria:
(a) The ability, capacity and skill of the bidder to perform the contract or provide the service required;
(b) Whether the bidder can perform the contract or provide the service promptly, or within the time specified, without delay or interference;
(c) The character, integrity, reputation, judgment, experience and efficiency of the bidder;
(d) The quality of the performance of previous contracts or services;
(e) The previous and existing compliance by the bidder with laws and ordinances relating to the contract or service;
(f) The sufficiency of the financial resources and ability of the bidder to perform the contract or provide the service;
(g) The quality, availability and adaptability of the supplies or contractual services to the particular use required;
(h) The ability of the bidder to provide future maintenance and service for the use of the subject of the contract; and
(i) The number and scope of conditions attached to the bid.
(2) Obligations of responsible bidder.
(a) Compliance with municipal ordinances. All responsible bidders shall comply with the ordinances adopted by the village, including but not limited to the Prevailing Wage Ordinance and any ordinance governing the operation of businesses within the village. Similarly, all responsible bidders must show that they are in “good standing” with governing and/or taxing bodies within the county and the state.
(b) Bid and performance bonds. Bid and performance bonds or other security, including cash may be required for supply or service contracts as the Village Administrator, in consultation with the head of a using department, deems advisable to protect the village’s interest. Any such bonding requirements shall be set forth in the solicitation. Bid or performance bonds shall not be used as a substitute for a determination of a bidder or offeror’s responsibility.
(c) Collusion among bidders and disclosures. Any agreement or collusion among bidders or prospective bidders to bid a fixed price or to otherwise restrain freedom of competition by agreement shall render the bids of such bidders void and a finding of “non-responsible”. Each bidder shall accompany his or her bid with a written sworn statement that no such agreement or collusion took place.
(C) Methods of source selection. Unless otherwise authorized through the Governmental Joint Purchasing Act (ILCS Ch. 30, Act 525, §§ 2 et seq.) or other lawful provision, all village contracts shall be awarded by one of the following methods.
(1) Competitive sealed bidding. Contracts shall be awarded by competitive sealed bidding, except as otherwise provided in this section.
(a) Invitation for bids. An invitation for bids shall be issued for contracts and shall include specifications and all contractual terms and conditions applicable to the procurement.
(b) Public notice. Adequate public notice of an invitation for bids shall be given at a reasonable time, not less than 15 calendar days prior to the date set forth therein for the opening of bids. The Village Administrator shall designate a means of distribution of information to interested parties using methods that are reasonably available. These methods may include publication in newspapers of general circulation, electronic or paper mailing lists, and web sites designated and maintained for the notification. The notice shall state the place, date and time of the bid opening.
(c) Bid opening. Bids shall be opened publicly in the presence of one or more witnesses at the time and place designated in the invitation for bids. The amount of each bid, and such other relevant information as the Village Administrator deems appropriate, together with the name of each bidder shall be recorded; the record created herein and each bid submitted shall be open to public inspection in accordance with lawful requirements.
(d) Correction or withdrawal of bids. Correction or withdrawal of inadvertently erroneous bids before or after bid opening or cancellation of awards or contracts based on such bid mistakes, may be permitted where appropriate. All decisions to permit the correction or withdrawal of bids or to cancel awards or contracts based on bid mistakes, shall be supported by a written determination made by the Village Administrator. Mistakes discovered before bid opening may be withdrawn by written, electronic or telegraphic notice received in the office designated in the invitation for bids prior to the time set for bid opening. Any modification prior to the bid opening must be submitted in a sealed envelope prior to the scheduled opening of the bid. After bid opening, no changes in bid prices or other provisions of bids prejudicial to the interest of the village or fair competition shall be permitted. In lieu of bid correction, a low bidder alleging a material mistake may be permitted to withdraw its bid if:
1. The mistake is clearly evident on the face of the bid document, but the intended corrected bid is not similarly evident; or
2. The bidder submits evidence that clearly and convincingly demonstrates that a mistake was made.
(e) Award. The contract shall be awarded by the corporate authorities with reasonable promptness by appropriate written notice to the lowest responsive and responsible bidder whose bid meets the requirements and criteria set forth in the invitation for bids.
(f) Multi-step sealed bidding. When it is considered impractical to prepare a purchase description to support an award based on price, an invitation for bids may be issued requesting the submission of unpriced offers to be followed by an invitation for bids limited to those bidders whose offers have been determined to be technically acceptable under the criteria set forth in the first solicitation.
(2) Competitive sealed proposals. When the Village Administrator determines that the use of competitive bidding is either not practical or not advantageous to the village, a contract may be awarded by the use of the competitive sealed proposals method.
(a) Request for proposals. Proposals shall be solicited through a request for proposals.
(b) Public notice. Adequate public notice of the request for proposals shall be given in the same manner as provided in division (C)(1)(b) above, provided the notice shall not be less than 20 calendar days prior to the date set forth therein for the opening of proposals.
(c) Management of proposals. Proposals shall be opened so as to avoid disclosure of the identity of any offeror or the contents of any proposal to competing offerors during the process of negotiation. A register of proposals shall be prepared containing the name of each offeror, the number of modifications received, if any, and a description sufficient to identify the item offered. The register of proposals shall be open for public inspection only after contract award.
(d) Evaluation factors. The request for proposals shall state the relative importance of price and other evaluation factors.
(e) Processing responses to request for proposals. As provided in the request for proposals, discussions may be conducted with responsible offerors who submit proposals determined to be potentially acceptable for award for the purpose of clarification and to assure full understanding of and conformance to the solicitation requirements. Offerors determined to be substantially equivalent shall be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals, and the revisions may be permitted after submissions and prior to award for the purpose of obtaining best and final offers. In conducting discussions, there shall be no disclosure of the identity of competing offerors or of any information derived from proposals submitted by competing offerors.
(f) Award. Award shall be made to the responsible offeror whose proposal is determined to be the most advantageous to the village, taking into consideration, price and the evaluation factors set forth in the request for proposals. No other factors or criteria shall be used in the evaluation. The contract file shall contain the basis on which the award is made.
(g) Reverse auctions. The Village Administrator may award contracts for supplies and nonprofessional services by reverse auction, a procurement method where bidders, anonymous to each other, electronically submit real time bids. During the bidding process, bidders’ prices are revealed and bidders shall have the opportunity to modify their bid prices for the duration of the time period established through the solicitation. Award shall be made to the lowest responsive, responsible bidder.
(3) Small purchases. Any purchase estimated not to exceed $20,000 may be made in accordance with the small purchase procedures authorized in this section; provided, however, that procurement requirements shall not be artificially divided so as to constitute a small purchase under this section.
(a) Small purchases in excess of $10,000 but less than $20,000. Insofar as it is practical for small purchases in excess of $10,000, but less than $20,000, no less than three persons shall be solicited to submit written quotations. Award shall be made to the responsive, responsible person offering the lowest acceptable quotation. The names of the persons submitting quotations, and the date and amount of each quotation shall be recorded and maintained as a public record.
(b) Small purchases in excess of $1,000 but less than $10,000. Insofar as is practical for small purchases in excess of $1,000, but less than $10,000) no less than three persons shall be solicited to submit oral quotations. Award shall be made to the responsive, responsible person offering the lowest acceptable quotation. The names of the persons submitting quotations, and the date and amount of each quotation shall be recorded and maintained as a public record.
(c) Small purchases not to exceed $1,000. The Village Administrator shall adopt operational procedures for making small purchases of $1,000 or less. The operational procedures shall provide for obtaining adequate and reasonable competition for the supply, service or construction being purchased.
(d) Delegation to village departments.
1. The Village Administrator may adopt operational procedures allowing village departments to obtain written or oral quotations and submit them with the purchase request.
2. In accordance with divisions (C)(3)(b) and (c) above, the Village Administrator may adopt operational procedures allowing village departments to make small purchases up to $10,000 per transaction, provided said delegated authority is exercised in accordance with the provisions of this section.
(4) Sole source procurement. A contract may be awarded without competition when the Village Administrator determines in writing, after conducting a good faith review of available sources, that there is only one source for the required supply, service or construction item. The Village Administrator, or their designee, shall conduct negotiations, as appropriate, as to price, delivery and terms. A record of sole source procurements shall be maintained as a public record and shall list each contractor’s name, the amount and type of each contract, a listing of the item(s) procured under each contract and the identification number of each contract file.
(5) Emergency procurements. Notwithstanding any other provisions of this section, the Village Administrator may make, or authorize others to make emergency procurements of supplies, services or construction items when there exists an immediate threat to public health, welfare or safety or to prevent or minimize serious disruption of government services; provided that the emergency procurements shall be made with the competition as is practical under the circumstances. A written determination of the basis for the emergency and for the selection of the particular contractor shall be included in the contract file. As soon as feasible, a record of each emergency procurement shall be made and shall set forth the contractor’s name, the amount and type of the contract, a listing of the item(s) procured under the contract, and the identification number of the contract file. The record of any emergency procurement in excess of $20,000 shall be submitted to the Village Board of Trustees at its next regularly scheduled meeting.
(6) Revenue generating and concession contracts. Revenue generating and concession contracts shall be awarded in accordance with the provisions contained in this section, except that price shall be evaluated on the basis of the highest bid or offer.
(7) Responsibility of bidders and offerors. Notwithstanding the source selection process utilized, a written determination on nonresponsibility setting forth the basis of the finding, shall be prepared by the Village Administrator in the event that the lowest responsive bidder is found nonresponsible. The unreasonable failure of a bidder or offeror to promptly supply information in connection with an inquiry with respect to responsibility may be grounds for a determination of nonresponsibility with respect to the bidder or offeror.
(8) Pre-qualification of suppliers. Prospective suppliers may be pre-qualified for particular types of supplies, services and construction. The Village Administrator shall determine the method of submitting pre-qualification information and the information required in order to be pre-qualified.
(9) Cancellation of invitations for bids or requests for proposals.
(a) An invitation for bids, a request for proposals or other solicitation may be canceled, or any or all bids or proposals may be rejected in whole or in part as may be specified in the solicitation by the Village Administrator when in the best interest of the village. Notice of cancellation shall be sent to all persons solicited. The reasons therefore shall be made part of the contract file.
(b) Each solicitation issued by the village shall state that the solicitation may be canceled and that any bid or proposal may be rejected in whole or in part when in the best interest of the village. The reason(s) for rejection shall be provided upon request by unsuccessful bidders or offerors.
(D) Procurement of construction.
(1) Responsibility for selection of project delivery method. The Village Administrator, in consultation with the appropriate village department or agency, shall have discretion to select the appropriate project delivery method. In determining which method to use, the Village Administrator shall consider the village’s requirements, its resources and the capabilities of potential contractors.
(2) Bid security. Bid security shall be required for all construction contracts awarded by competitive sealed bidding in accordance with applicable law. Bid security may be required for construction contracts awarded by competitive sealed proposals or other methods. Bid security shall be a bond provided by a surety company authorized to do business in the state or the equivalent in cash, or otherwise supplied in a form satisfactory to the Village Administrator.
(a) Amount. Bid security shall be in an amount equal to at least 10% of the amount of the bid.
(b) Rejection of bids. When the invitation for bids requires security, noncompliance requires that the bid be rejected unless it is determined that the bid fails to comply only in a nonsubstantial manner with the security requirements.
(c) Withdrawal of bids. If a bidder is permitted to withdraw its bid before award as provided in division (B)(1)(e) above, no action shall be taken against the bidder or the bid security.
(3) Contract performance and payment bonds.
(a) When required. When a construction contract is awarded in excess of $10,000, the following bonds or security shall be delivered to the village and shall become binding on the parties upon the execution of the contract:
1. A performance bond satisfactory to the village, executed by a surety company authorized to do business in the state or otherwise secured in a manner satisfactory to the village, in an amount equal to 100% of the price specified in the contract; and
2. A payment bond satisfactory to the village, executed by a surety company authorized to do business in the state or otherwise secured in a manner satisfactory to the village, for the protection of all persons supplying labor and material to the contractor or its subcontractors for the performance of the work provided in the contract. The bond shall be in an amount equal to 100% of the price specified in the contract.
(b) Authority to require additional bonds. Nothing in this section shall be construed to limit the authority of the Village Administrator to require other forms of security to assure timely, faithful and uninterrupted performance.
(4) Insurance.
(a) Contractor’s insurance. Contractors and subcontractors performing any construction work for the village shall maintain insurance coverage as specified by the Village Administrator for the duration of the project and any extensions thereof.
(b) Errors and omissions insurance. The Village Administrator may require professional service firms, including but not limited to architectural, engineering, planning and legal service firms, to provide appropriate errors and omissions insurance to cover their professional services.
(E) Supply management and surplus property.
(1) Inventory. The Village Administrator shall exercise general supervision and control over all property, supplies and equipment (collectively referred to herein as “property”), including requiring inventory control procedures to be used by village departments.
(2) Excess supplies.
(a) Declaration. All department heads shall submit to the Village Administrator in such form as may be prescribed by the Village Administrator, reports showing stocks of all property which are no longer used or which have become obsolete, worn out or scrapped (hereinafter “surplus property”).
(b) Transfer. The Village Administrator shall have the authority to transfer the surplus property from one department to another.
(3) Disposal of surplus property. The Village Administrator shall be responsible for the sale or disposition of surplus property by method(s) deemed reasonable, lawful and in the best interest of the village by the Village Administrator, including but not limited to:
(a) Request for proposal, pursuant to division (C)(2) above, when the estimated value of the surplus property is less than $20,000, except that award shall be made to the highest responsive, responsible bidder;
(b) Competitive sealed bidding, pursuant to division (C)(1) above, when the estimated value of the surplus property is $20,000 or more, except that award shall be made to the highest responsive, responsible bidder;
(c) Public auction;
(d) Electronic auction;
(e) Trade in, when the Village Administrator determines that the trade in value is expected to exceed the value estimated to be obtained through the sale of the surplus property; or
(f) Disposal, when the Village Administrator determines that the surplus property has no resale value, or that the cost of transportation, storage and sale of the surplus property will exceed the anticipated sale value.
(4) Surplus real property. Upon the Village Board’s determination that continued ownership of any parcel of real estate is no longer necessary, appropriate, required for the use of, profitable to or in the best interest of the village, the Village Board may authorize by resolution or ordinance the sale or conveyance of the real estate. The sale or conveyance shall be conducted in accordance with ILCS Ch. 65, Act 5, § 11-76-2 or ILCS Ch. 65, Act 5, § 11-76-4.1, as amended, unless otherwise determined by the Village Board’s authorizing resolution or ordinance. No sale or conveyance shall be deemed authorized except as provided in the authorizing resolution or ordinance.
(F) Electronic commerce.
(1) Electronic transactions.
(a) The village may conduct procurement transactions, including competitive sealed bids, competitive sealed proposals and informal quotations, by electronic means or in electronic form.
(b) The Village Administrator shall adopt operational procedures regarding:
1. Appropriate security to prevent unauthorized access to the bidding, approval and award processes;
2. Identification;
3. Confidentiality; and
4. Utilization of digital signatures, where applicable.
(2) Electronic posting. The village may electronically post solicitations, determinations and other information related to procurement on a centralized internet web site designated by the village for this purpose.
(3) Electronic records. In accordance with the Illinois Electronic Commerce Security Act, ILCS Ch. 5, Act 175, §§ 1-101 et seq., whenever this section requires a record to be “written” or “in writing”, an electronic record satisfies that requirement.
(G) Exemption from construction and bidding requirements for public buildings. The acquisition and construction of a project shall not be subject to any requirements relating to public buildings, structures, grounds, works or improvements imposed by the Illinois Compiled Statutes or any other similar requirements which may be lawfully waived by this section and any requirement of competitive bidding or restriction imposed on the procedure for award of contracts for the purpose or the lease, sale or other disposition of property of the village is not applicable to any action taken under authority of this section.
(H) Prohibited interests.
(1) No municipal officer shall be interested, directly or indirectly, in his or her own name or in the name of any other person, association, trust, corporation or entity, in any contract, work or business of the municipality, or in the sale of any article, whenever the expense, price or consideration of the contract, work, business or sale is paid either from the treasury or by any assessment levied by any statute or ordinance.
(2) No municipal officer shall be interested, directly or indirectly, in the purchase of any property which:
(a) Belongs to the municipality;
(b) Is sold for taxes or assessments; or
(c) Is sold by virtue of legal process at the suit of the municipality.
(I) Exceptions to prohibited interests.
(1) Notwithstanding the prohibitions established in division (G) above, members of the Village Board of Trustees may have an ownership, employment or family interest in any contract, business or transaction if the interest meets one of the following conditions:
(a) The ownership, employment or family interest is less than seven and one-half percent share of the ownership of the entity and any contract is awarded by competitive bidding;
(b) The ownership, employment or family interest is 5% or less of the shares of a publicly-held corporation traded on a stock exchange;
(c) The contract awarded by the village is less than $10,000 and is in accord with the procedures of divisions (B)(3)(b) and (c) of this section;
(d) The ownership, employment or family interest is less than 7.5% share of any public utility company providing utility services to the village and the utility’s rates are approved by the Illinois Commerce Commission or the Federal Energy Regulatory Commission; or
(e) The ownership, employment or family interest is less than a seven and one-half percent share of a bank or savings and loan institution which has a contract of deposit of monies, loans or financial services with the village.
(2) In addition to the exemptions identified above, any elected or appointed member of the governing body may provide materials, merchandise, property, services or labor if:
(a) The award of the contract is approved by a majority vote of the Village Board of Trustees provided that any such interested member shall abstain from voting;
(b) The amount of the contract does not exceed $5,000;
(c) The award of the contract would not cause the aggregate amount of all such contracts so awarded to the same person, firm, association partnership, corporation or cooperative association in the same fiscal year to exceed $10,000;
(d) The interested member publicly discloses the nature and extent of his or her interest prior to or during the deliberation concerning the proposed award of the contract; and
(e) The interested member abstains from voting on the award of the contract, though he or she shall be considered present for the purposes of establishing a quorum.
(Ord. 853, passed 2-21-2007)