The following are the purchasing rules for the town.
(A) Publication of notices. The purchasing agent shall schedule the publication of notice to provide a reasonable amount of time for preparation and submission of proposals. The notice will be published two times, at least one week apart. The second publication must occur at least seven days prior to the date the proposals will be opened.
(1) Invitation for bids. All notices of invitation for bids shall be published in accordance with I.C. 5-3-1 in the Anderson Herald Bulletin. The purchasing agent shall schedule the publication of notice to provide a reasonable amount of time for preparation and submission of bids. The notice will be published two times, at least one week apart. The second publication must occur at least ten days prior to the date the bids will be opened.
(2) Request for proposals. All notices of request for proposals shall be published in accordance with I.C. 5-3-1 in the Anderson Herald Bulletin. The purchasing agent shall schedule the publication of notice to provide a reasonable amount of time for preparation and submission of proposals. The notice will be published two times, at least one week apart. The second publication must occur at least seven days prior to the date the proposals will be opened.
(3) Request for specifications. All notices of request for specifications shall be published in accordance with I.C. 5-3-1 in the Anderson Herald Bulletin.
(4) Electronic notice. Whenever a notice or other material, including specifications, an invitation for bids, request for proposals or request for specifications, is sent by mail, the purchasing agent may also send the notice or other material by electronic means, provided that the transmission of the information is at least as efficient as mailing the information.
(B) Receiving offers.
(1) Opening of offers. Bids received in response to an invitation for bids must be opened publicly in the presence of at least one or more witnesses at the time and place designated in the invitation for bids. Proposals received in response to a request for proposals must be opened so as to avoid disclosure of the contents to competing offerors during the process of negotiation. Proposals received in response to a request for specifications may be opened as specified in the request for specifications.
(2) Electronic receipt of offers. The purchasing agency may receive electronic offers in response to an invitation to bid, request for proposals or request for specifications. A purchasing agency may only receive an electronic offer if:
(a) The solicitation includes the procedure for the electronic transmission of the offer; and
(b) The purchasing agency receives the offer on a fax machine or other system with a security feature that protects the contents of an electronic offer with the same degree of protection as provided to an offer not transmitted electronically.
(3) Correct and withdrawal of bids. An offeror may correct inadvertent errors in a bid up to the time at which bids will be opened by supplementing the erroneous bid and submitting a revised bid. A bidder may not supplement an inadvertently erroneous bid after the time at which the bids were opened. A bidder may withdraw a bid containing inadvertent errors up to the time at which bids will be opened and for a period of not more than 24 hours after the time at which bids will be opened.
(4) Cancellation of solicitation. When the purchasing agent makes a written determination that it is in the town’s best interests, the purchasing agent may cancel a solicitation or reject all offers, provided that the solicitation included information concerning the procedure for cancellation.
(C) Protection of offers; status of documents as public records.
(1) Protection of offers prior to opening. The Clerk-Treasurer of the town or the purchasing agent who receives offers, shall retain all offers received in a secure location prior to the date and time at which offers will be opened in order to prevent disclosure of the contents prior to the opening of the offers.
(2) Unobstructed evaluation of offers. After offers have been opened, the purchasing agent shall be responsible for maintaining the offers in such a manner as to permit evaluation of the offers by the persons responsible for evaluating the offers.
(3) Public records status of bids. Bids submitted in response to an invitation for bids must be made available for public inspection and copying after the time of the bid opening, unless the bid opening is delayed, as authorized in this section or any other statute or ordinance.
(4) Register of proposals. The purchasing agent shall prepare a register of proposals for each request for proposals issued which shall contain information concerning the proposals available for public inspection and copying. Proposals may not be disclosed.
(D) Discussions with offerors responding to a request for proposals. The purchasing agent may conduct discussions with parties who are submitting proposals. Final offers may be obtained from responsible offerors who submit proposals and are determined to be reasonably susceptible of being selected for a contract award.
(E) Delay of openings of offer. When the Town Council makes a written determination that is in the town’s best interest, offers may be opened after the time stated in the solicitation. The date, time and place of the rescheduled opening must be announced at the time and place of the originally scheduled opening.
(F) Evidence of financial responsibility.
(1) Purchases less than $25,000. The purchasing agent may not require evidence of financial responsibility when the estimated cost of a purchase is less than $25,000.
(2) Purchases between $25,000 and $100,000. The solicitation may include a requirement that an offeror provide evidence of financial responsibility. If evidence of financial responsibility is required, the solicitation must indicate the kind of evidence that will be acceptable. If a bond or certified check is required, it may not exceed 10% of the estimated cost of the purchase.
(3) Purchases over $100,000. The solicitation shall include a requirement that an offeror provide evidence of financial responsibility and must indicate the kind of evidence that will be acceptable. If a bond or certified check is required, it may not exceed 10% of the estimated cost of the purchase.
(G) Use of RFP for purchases of designated types of supplies. If the Town Council determines that it is either not practicable or not advantageous to purchase certain types of supplies by sealed competitive bidding, they shall authorize the appropriate purchasing agent to receive proposals.
(H) Modification and termination of contracts.
(1) Price adjustments. Any purchasing agent for the town may include provisions to permit price adjustments in a purchase contract; the following provisions for price adjustments may be included:
(a) Price adjustments must be computed by agreement on a fixed price adjustment before the beginning of the pertinent performance or as soon after the beginning of performance as possible;
(b) Price adjustments must be computed by unit prices specified in the contract or subsequently agreed upon;
(c) Price adjustments must be computed by costs attributable to the events or situations under such clauses with adjustment of profit or fee, all as specified in the contract or subsequently agreed upon; and
(d) Price adjustments must be computed in such other manner as the contacting parties may mutually agree upon.
(2) Adjustments in time of performance. The purchasing agent may include provisions in a purchase contract concerning adjustments for time of performance under the contract.
(3) Unilateral rights of the town. The purchasing agent may include in a purchase contract provisions dealing with the unilateral right of the purchasing agent, or the Town Council, to order changes in the work within the scope of the contract or to order temporary work stoppage or delays in time of performance.
(4) Quantity variations. The purchasing agent may include in a purchase contract provisions dealing with variations between the estimated quantities of work in a contract and the actual quantity delivered.
(I) Small purchases. This section applies to all purchases which are defined as small purchases under I.C. 5-22-8-2.
(1) The purchasing agent may purchase supplies with an estimated cost of less than $5,000 on the open market without inviting or receiving quotes.
(2) In the event the purchase is between $5,000 and $25,000, the purchasing agent making the purchase shall receive prices either by phone, in writing or in person from at least three suppliers.
(3) The purchasing agent shall keep a file for purchases made under this section with the following information:
(a) The name, address and phone number of each supplier who provided a price;
(b) The price provided by each supplier;
(c) The supplier chosen and the reason for the choice if the supplier did not provide the lowest price; and
(d) The reasons why less than three suppliers were not contacted.
(J) Purchases between $25,000 and $75,000.
(1) Purchases between $25,000 and $75,000 may be made by the purchasing agent for the town by inviting quotes from at least three persons known to deal in the lines or classes of supplies to be purchased. The purchasing agent shall mail an invitation to quote to the persons described above at least seven days before the time fixed for receiving quotations.
(2) If the purchasing agent receives a satisfactory quote, the purchasing agent shall award the contract to the lowest responsible and responsive offer for each line or class of supplies required, subject to approval by the Town Council.
(3) The purchasing agent may reject all quotes.
(4) If the purchasing agent does not receive a quote from a responsible and responsive offeror, the purchasing agent may make a special purchase pursuant to the provisions of I.C. 5-22-10-10.
(K) Purchases between $75,000 and $150,000. Purchases between $75,000 and $150,000 may be made by the purchasing agent for the town utilizing the invitation for bids procedure set out herein above.
(L) Alternate purchasing procedures. Nothing contained herein is intended to infringe, in any way, on the ability of the town purchasing agent to make purchases pursuant to the provisions of I.C. 5-22-10-1 et seq.
(M) Purchase of supplies manufactured in the United States. Supplies manufactured in the United States shall be specified for all town purchases and shall be purchased unless the town determines that:
(1) The supplies are not manufactured in the Untied States in reasonably available quantities;
(2) The prices of the supplies manufactured in the United States exceeds by an unreasonable amount the price of available and comparable supplies manufactured elsewhere;
(3) The quality of the supplies manufactured in the United States is substantially less than the quality of comparable priced available supplies manufactured elsewhere; or
(4) The purchase of supplies manufactured in the United States is not in the public interest.
(N) Additional limits. Notwithstanding anything set forth above, the following additional limits on purchasing authority of employees and department heads of the town, are as follows:
Up to $500 | Department heads may approve |
Up to $2,000 | Town Manager may approve |
Up to $500 | Town Manager and Town Council President may approve in emergency situations |
Up to $1,000 | Town Marshal may approve |
Over or above limits | Town Council approval in advance |
(Ord. 032315B, passed 4-13-2015; Ord. 082415, passed 8-24-2015)