(a) Establishment. There is hereby created in the Department of Finance a Purchasing Department, hereafter referred to as the Purchasing Agent, who shall be accountable to the Director of Finance.
(b) General Duties. The Purchasing Agent shall continually work to obtain the best possible prices without sacrificing needed quality, usability, and reliability for the goods and services acquired by the City. He or she shall also adhere to State contracting and purchasing laws applicable to the City and to Federal laws and procedures governing purchasing related to Federal programs operated by the City.
(c) Exceptions to Purchasing Responsibilities. The Purchasing Agent shall be responsible for all purchases or leases of goods, materials, supplies, and services obtained by the City of Johnstown with the following exceptions:
(1) Construction projects which are bid;
(2) Insurance and bonds;
(2) Consultant services; and
(4) Legal and accounting services.
(d) Assisting Department Heads. The Purchasing Agent shall assist the department heads responsible for the above acquisition with the exception of legal and accounting services.
(e) Subgranting of Funds. The subgranting of State, Federal, private- foundation, or similar funds passed through the City to other entities shall not ordinarily be judged "purchasing" in the meaning of this section.
(f) Cooperation With Other City Agencies. The Purchasing Agent shall cooperate with all department heads and other officials of the City to obtain the goods and services needed at the best prices and to make certain federal, state, and foundation grant and program regulations and/or conditions are met.
(g) Review Procedures. The Purchasing Agent shall continually review the needs of the City for various materials, supplies, parts, and services. He or she shall:
(1) Develop lists of items and probable quantities to be needed within the foreseeable future up to, but usually not in excess of, one year.
(2) Determine what items are being supplied by only one sources and seek to obtain either generic substitutes or other equivalent items distributed by more suppliers or additional competitive suppliers.
(3) Maintain contact with vendors and keep informed about market conditions affecting availability and prices of materials, supplies, parts, and services used by the City.
(4) Develop and maintain clear and accurate specifications describing the goods and services in common or recurring usage by the City.
(5) Obtain quotations or bids for items needed.
(6) For certain items in recurring use by the City, obtain competitive quotations to remain firm for a designated period of time up to one year or until changes occur in the market conditions affecting those goods and services.
(7) Award purchase contracts to the vendor offering the lowest overall cost to the City for the items quoted or their equivalents in quality and function.
(8) Develop and maintain a computerized database covering goods and services in use by the City, recording quantities, vendors, prices, and other matters.
(9) Develop and maintain a purchase-order form system.
(10) Keep informed about intergovernmental purchasing opportunities of potential benefit to the City.
(11) Develop, implement, and oversee a system for verifying the receipt and quality of goods purchased pursuant to this section.
(12) Approve all purchase orders.
(13) Provide for purchases in emergency situations.
(14) Identify needs to transfer funds among budget appropriation codes.
(h) Competition.
(1) All procurements, except unsolicited proposals pursuant to paragraph (i)(6) hereof and noncompetitive negotiation pursuant to paragraph (i)(7) hereof shall be conducted in a manner providing full and open competition.
(2) Neither the Purchasing Agent nor any other official or employee of the City shall communicate the particulars of any vendor's quotation, bid, or proposal directly or indirectly to any other vendor until after the purchase in question is made or the vendor is chosen. To further the objective of competition, the Purchasing Agent shall:
A. Not place unreasonable requirements on forms in order for them to qualify to do business.
B. Not require unnecessary experience and/or excessive bonding.
C. Discourage, expose, and avoid noncompetitive pricing practices between firms or companies.
D. Avoid noncompetitive awards to vendors that are on retainer contracts.
E. Avoid conflicts of interest.
F. Avoid specifying by "brand-name" product without allowing an "equal or equivalent" product to be offered.
G. Avoid any arbitrary action in the procurement process.
(i) Alternative Purchasing Methods.
(1) The Purchasing Agent shall make purchases on behalf of the City of Johnstown in one of the following ways:
A. By competitive bids pursuant to the contract provisions of the Pennsylvania Third Class City Code (53 P.S. Sections 36901 et seq.).
B. By direct quotations for the item or items in question pursuant to this section.
1. The Purchasing Agent may seek to obtain ad-hoc quotations from at least three vendors for goods or services needed by the City. Should two or more vendors decline to quote, the Purchasing Agent shall continue to contact vendors until the City has either received at least two quotations or the Purchasing Agent has concluded that further contact of potential vendors will be useless.
2. For direct quotes, the Purchasing Agent shall prepare a clear and accurate specification for the needed good or service, and shall obtain the quotations in writing, in a personal meeting, or by telephone, from the potential vendors. When procuring a quotation by telephone or in a personal meeting, the Purchasing Agent shall record each vendor's firm name, name of the person making the quote, a detailed description of the item, the price, warranty, delivery information, and other matters.
C. By intergovernmental cooperation with other local governments, a council of governments, the State of Pennsylvania, the Federal Government, or other public body which has utilized lawful procurement practices and is making the goods or services available to the City at a prorata cost or better.
D. By obtaining the item or items through a purchase agreement from a designated preferred supplier.
1. When the City anticipates needing an unpredictable number of common category items, the precise quantities and descriptions of which cannot be foretold (e.g. paints, lumber, electrical supplies, plumbing supplies, etc.), the Purchasing Agent may seek competitive proposals applicable to an entire inventory category supplied by such a general class of vendors. The said proposals would be in the form of a discount below the listed prices normally charged to the typically non-quantity customer for a stated period of time or for a particular project. In considering this type of proposal, the Purchasing Agent shall consider:
a. The vendor's catalogs or pricing sheets which list prices normally charged in the category of goods;
b. The quoted percentage of discount from the catalog or pricing sheets to be allowed to the City by the vendor for the period in question;
c. The general availability of the materials either in the vendor's immediate inventory or through other means of timely acquisition and distribution.
2. The Purchasing Agent shall not commit the City to a preferred purchase arrangement if the anticipated total costs applicable to that category of purchases is expected to exceed ten thousand dollars ($10,000) or more during a forthcoming twelve month period.
3. The Purchasing Agent may choose a preferred vendor for a defined period of time up to one year and award all of the City's business pertaining to that category to the preferred vendor. The preferred vendor shall furnish all of the items in the category to the City unless:
a. The preferred vendor does not have a needed item or set of items in stock or cannot make a timely delivery to the City;
b. The vendor's place of business is closed and the item is needed immediately;
c. There is a genuine emergency, and an item is needed immediately, and it is infeasible to acquire the item from the preferred vendor.
G. By designating a vendor to supply a manufacturer's line of goods or equivalent.
1. The Purchasing Agent may designate certain categories of goods used repeatedly by the City which are to be purchased from a successful vendor who has offered price quotations to remain in effect for stated periods of time or until market conditions change. Examples shall be such things as oil filters, fan belts, spark plugs, tires, bolts or other fasteners, stationery, and janitorial supplies.
2. The Purchasing Agent may designate several representative sizes or types of such goods by a leading manufacturer's part or catalog number, but any quotations sought shall also seek other manufacturers' equivalents. "Equivalent" shall mean an item supplied by one manufacturer, which item is equal in size, function, warranty and quality, to that supplied by another. Approximate quantities of need will also be indicated.
3. The Purchasing Agent may seek quotations for entire lines of items or the equivalent, meaning all the catalog listings in the line, with the prices and a percentage of discount off of the stated prices, during the period the quote, is to be in effect. When this method of purchasing is used, the Purchasing Agent shall acquire all of the category of goods from the vendor whose standing quotation, including the discount, affords the least overall cost to the City.
F. By unsolicited proposal.
1. To encourage vendors of goods and services to promote innovative improvements in the way the City operates, A vendor, or potential vendor, may submit an unsolicited proposal for an item, process, or technique which has never been used by the City.
2. After carefully reviewing an unsolicited proposal, the City may summarily accept it provided the acceptance does not violate any other City ordinance or State or Federal law or regulation. Such a proposal must:
a. Be completely unsolicited by any officials or employee of the City;
b. Provide for an innovation in City operations which is reasonably anticipated to lower costs, improve City services, or both.
3. Acceptance of any unsolicited proposal shall be reported immediately to the City Council in writing.
G. By noncompetitive negotiation.
1. "Noncompetitive negotiation" is procurement through solicitation of a proposal from only one source, or after solicitation has been attempted from a number of sources, competition is determined to be non-existent. Noncompetitive negotiation may be used when the award of a contract is infeasible under any other procurement method authorized under this section and would not violate 53 P.S. Sections 36901 et seq. or other applicable State or Federal law or regulation.
2. Circumstances under which a contract may be awarded by noncompetitive negotiation are limited to any of the following:
a. The item is available only from a single source;
b. There is a public emergency, and urgency for the item or service will not permit a delay incident to any other more competitive purchasing procedure;
c. The Federal or State grantor agency authorizes noncompetitive negotiation in connection with a program administered by the City, which is funded by the Federal or State agency;
d. After solicitation of a number of sources, competition is determined to be non-existent or inadequate.
(Ord. 4587. Passed 8-14-91.)
(2) A detailed master plan (or plans) has been developed for a set or sets of technological or equipment types and related software to be used by the City. Such plan or plans shall foster ease of maintenance, servicing, operation, training, the facilitation of spare parts and related supplies, and other factors to such a degree that it is in the City's interest to standardize the equipment makes and types. The plan and its preparation shall be open to public scrutinies and shall not be prepared by a vendor or agent for a vendor dealing in the equipment called for in the plan.
A separate plan may be applicable to the City's motorized fleet and equipment or sections thereof, computer and other automated data processing equipment, office equipment, radio transmitting and receiving equipment, and similar types of technology and equipment.
After being adopted by the City Manager, each such plan shall be submitted to the City Council.
Once a plan has been approved by the City Manager and has not been rejected by resolution of the City Council to be acted upon prior to or during the first regularly scheduled City Council meeting to occur after one month of its transmittal by the City Manager, the plan shall be presumed to be adopted and shall remain in effect until revised in the same manner as its original adoption.
(Adopting Ordinance)
(3) Except when mandated by State or Federal law or regulation, the Purchasing Agent shall have discretion to determine which category of purchase shall be utilized obtaining the various goods and services needed by the City.
(j) Conflict of Interest.
(1) No employee, officer or agent of the City of Johnstown, or grantee or subgrantee of City funds, shall participate in the selection or in the award or administration of a contract supported by City funds if a conflict of interest, real or apparent, would be involved such a conflict would arise when the employee, officer or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the above, has financial or other interests in the firm selected for award.
(2) The City's officers, employees, or agents, including those of any grantees and subgrantees of City funds, shall neither solicit nor accept anything of monetary or other value from contractors, potential contractors, vendors, potential vendors, or any entity whose officers or employees are using or hope to use City controlled funds. The above prohibition shall not apply to gifts of nominal value with the firm or vendor's name appearing thereon used in advertising the firm.
(3) A violation of the foregoing conflict of interest or gratuities standards by an officer, employee or agent shall result in one or more of the following disciplinary actions:
A. A written warning or reprimand;
B. Suspension without pay for specified periods of time;
C. Termination of employment.
(4) These provisions shall not be construed as impairing any civil or criminal action against the offending party, nor shall they be construed as relieving the offending party of any responsibility under Federal or State law.
(k) Publication and Other Notice.
(1) When required by Federal or State law or regulation, the Purchasing Agent shall cause the required legal notice or other advertising to be published or otherwise posted or promulgated.
(2) If there is no mandated publication required by law, the Purchasing Agent may cause a notice to be published or otherwise promulgated if he or she has reason to believe such publication or notice will enhance competition and thereby reduce expenditures sufficiently to justify the cost of the notice.
(3) The Purchasing Agent may develop and use special forms of notice of the material and service needs of the City to include, but not be limited to: a bulletin board, leaflets, computer-to-computer transmissions, media announcements of all sorts, and vendor solicitation lists for categories of goods or services.
(l) Protest Procedures.
(1) The City of Johnstown will provide a hearing to any vendor or potential vendor or contractor or potential contractor which files a formal written protest alleging the City has erred in the administration of this section and the error has injured the protesting party.
(2) The hearing shall be conducted by the City Solicitor, the Assistant City Solicitor, or a hearing officer designated by the City Solicitor.
(3) The hearing may be formal or informal. The degree of formality shall be determined by the City Solicitor to be appropriate under the circumstances.
(4) If the hearing officer determines the City Purchasing Agent or other City official has erred, a recommended order shall be submitted in writing to the City official empowered to implement the order.
(5) If the City official refuses to implement the recommended order of the hearing officer, he or she shall answer the order in writing stating why the recommended order will not be implemented. If the order remains not implemented by action of the City administration after consultation with the City Solicitor, the matter shall be considered closed insofar as the City is concerned, and any further action by the aggrieved party shall be in the judicial system of the Commonwealth.
(m) Performance Audit. As part of the annual post audit done by an independent accounting and auditing firm, there shall be a performance audit of the administration of the purchasing program of the City which shall include, but not be limited to:
(1) The following of the procedures defined in this section and other applicable law and regulations;
(2) Any suggestions for administrative improvement;
(2) Any suggestions for revisions to this section.
(n) Relationship of Purchasing System to Accounting System. The purchase order system shall be made to relate to the accounting system of the City. Prior to each purchase order or contract being finalized, the full amount of the order shall be encumbered against the appropriate budgetary account or accounts. After goods or services are received and the invoice is paid, the encumbrance shall be eliminated and the amount paid shall be included in the expenditures for the proper account or accounts.
(o) Further Procedures and Regulations. To further the purposes of this section the Purchasing Agent may develop and communicate additional rules, policies, procedures, and forms not in conflict with this Code. These may include, but not be limited to, the following:
(1) Delegation of authority to make certain purchases.
(2) Level of authority for requisitions.
(3) Leases.
(4) Stocked materials.
(5) Stocked materials budget. Inventory control:
A. Records
B. Receipts and issues
C. Balances
(6) Qualified vendor lists.
(7) Requests for quotations and sealed bids.
(8) Blanket purchase orders.
(9) Emergency purchases.
(10) After hours, weekend, and holiday purchases.
(11) Requisition status and expediting.
(12) Receipt of purchases; discrepancies.
(13) Remedies for non-performance.
(14) Sale of surplus materials.
(15) Shipping materials.
(16) Compliance with Federal and Pennsylvania right-to-know laws.
(Ord. 4587. Passed 8-14-91.)