(A) Purchasing agency and purchasing agents in accordance with I.C. 5-22.
(1) The Town Council is hereby designated as the purchasing agency for the town.
(2) The purchasing agency shall have all the powers and duties authorized under I.C. 5-22, as may be supplemented from time to time by ordinances adopted by the Town Council and policies adopted by the purchasing agency.
(3) The purchasing agency shall act as the purchasing agency for every agency, board, office, branch, bureau, commission, council, department or other establishment of the town. The Town Council members, Clerk-Treasurer, Town Manager and any department heads shall act as purchasing agents for that office or department.
(B) Purchasing policies for the town. The following are the purchasing rules for the town.
(1) Publication of notices.
(a) Invitation for bids. All notices of invitation for bids shall be published in accordance with I.C. 5-3-1 in the Greenfield Daily Reporter. 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.
(b) Request for proposals. All notices of request for proposals shall be published in accordance with I.C. 5-3-1 in the Greenfield Daily Reporter. 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.
(c) Request for specifications. All notices of request for specifications shall be published in accordance with I.C. 5-3-1 in the Greenfield Daily Reporter. 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.
(d) 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.
(2) Receiving offers.
(a) Opening of offers.
1. 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.
2. 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.
3. Proposals received in response to a request for specifications may be opened as specified in the request for specifications.
(b) Electronic receipt of offers.
1. The purchasing agency may receive electronic offers in response to an invitation to bid, request for proposals or request for specifications.
2. 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.
(c) Correct and withdrawal of bids.
1. 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.
2. 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.
(d) 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.
(3) Protection of offers: status of documents as public records.
(a) 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.
(b) Unobstructed evaluation of offers. After offers have been opened, the purchasing agent shall be responsible for maintaining the offers in a manner so as to permit evaluation of the offers by the persons responsible for evaluating the offers.
(c) 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 division (B), or any other statute or ordinance.
(d) 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.
(4) 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 to being selected for a contract award.
(5) 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.
(6) Evidence of financial responsibility.
(a) 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.
(b) 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.
(c) 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.
(7) 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.
(8) Modification and termination of contracts.
(a) 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:
1. 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;
2. Price adjustments must be computed by unit prices specified in the contract or subsequently agreed upon;
3. Price adjustments must be computed by costs attributable to the events or situations under the clauses with adjustment of profit or fee, all as specified in the contract or subsequently agreed upon; and
4. Price adjustments must be computed in some other manner as the contacting parties may mutually agree upon.
(b) Adjustments in time of performance. The purchasing agent may include provisions in a purchase contract concerning adjustments for time of performance under the contract.
(c) 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.
(d) 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.
(9) Small purchases. This division (B)(9) applies to all purchases which are defined as small purchases under I.C. 5-22-8-2.
(a) The purchasing agent may purchase supplies with an estimated cost of less than $5,000 on the open market without inviting or receiving quotes.
(b) 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.
(c) The purchasing agent shall keep a file for purchases made under this section with the following information:
1. The name, address and phone number of each supplier who provided a price;
2. The price provided by each supplier;
3. The supplier chosen and the reason for the choice if the supplier did not provide the lowest price; and
4. The reasons why less than three suppliers were not contacted.
(10) 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:
(a) The supplies are not manufactured in the United States in reasonably available quantities;
(b) The prices of the supplies manufactured in the United States exceeds by an unreasonable amount the price of available and comparable supplies manufactured elsewhere;
(c) The quality of the supplies manufactured in the United States is substantially less than the quality of comparable priced available supplies manufactured elsewhere; or
(d) The purchase of supplies manufactured in the United States is not in the public interest.
(11) Reverse auction procedures.
(a) Use of third party to conduct reverse auctions.
1. The purchasing agency is authorized to use a third party to conduct reverse auction on behalf of the town for the purchase of supplies. The purchasing agent is authorized to select the third party that will conduct the reverse auction, who must have prior experience in conducting reverse auctions on behalf of local governments.
2. The purchasing agent shall obtain a copy of the procedures established by the third party to conduct the reverse auction on behalf of the town and present those procedures to the Council for adoption and inclusion in its applicable procedures prior to participating in a reverse auction conducted by the third party.
(b) Transmission of notices, solicitations and specifications.
1. Notices. The Council shall give notice of a reverse auction by:
a. Publishing notice of the invitation to bid two times, at least one week apart, with the second publication at least seven days before the commencement of the reverse auction in accordance with I.C. 5-22-7-5, I.C. 5-22-18 and I.C. 5-3-1;
b. Posting the invitation to bid on the town’s website; and
c. If a third party is conducting the reverse auction on behalf of the purchasing agency, by posting or permitting to have posted, the invitation to bid on the third party’s website. Note: posting the invitation to bid on a website requires compliance with I.C. 5-22-3-4. Note: the Council may also give notice of a reverse auction by electronic mail or faxes.
2. Solicitations and specifications. The Council shall transmit solicitations and specifications by:
a. In accordance with the invitation to bid, identifying a designated location where, during regular business hours, the invitation to bid may be inspected and copied or copies may be obtained;
b. Making them available on the town’s website or providing information on the website identifying a designated location where, during regular business hours, the invitation to bid may be inspected and copied or copies may be obtained; and
c. If a third party is conducting the reverse auction on behalf of the purchasing agency, making them available on the third party’s website.
3. Note: posting the invitation to bid on a website requires compliance with I.C. 5-22-3-4.
(c) Pre-qualification of bidders.
1. All bidders desiring to participate in a reverse auction must be pre-qualified, by submitting materials to ensure that they meet the specifications identified by the buyer as to the types of supplies to be offered for purchase, no later than 24 hours prior to the time for the commencement of the reverse auction, as provided in the invitation to bid.
2. The pre-qualification process shall be used to determine whether the bidder is responsible and responsive, as provided in the Act, whether there is any bidding or purchasing preference or preferences applicable to a particular bidder, and whether the bidder has submitted evidence of financial responsibility, as required by the purchasing agency. In order to assist the Council in pre-qualifying bidders, the bidder must submit, in accordance with the invitation to bid, all documentation and other information relating to the supplies being offered for purchase, except for price, and any other information that may assist the Council in making its determination. The documentation will include evidence of financial responsibility or a certified check, as specified in the invitation to bid.
3. In determining whether a bidder is responsible, the purchasing agent may consider the following factors:
a. The ability and capacity of the bidder to provide the supplies;
b. The integrity, character and reputation of the bidder; and
c. The competency and experience of the bidder.
4. In determining whether a bidder is responsive, a purchasing agent may consider the following factors:
a. Whether the bidder has submitted information demonstrating that his or her offer for supplies conforms in all material respects to the specifications;
b. Whether the bidder has submitted documentation that complies specifically with the solicitation and the instructions to bidders; and
c. Whether the bidder has complied with all applicable statutes, ordinances, resolutions or rules pertaining to the award of a public contract.
5. The determination that a bidder is not responsive or not responsible must be made in writing.
6. Pre-qualification of bidders must be done by the purchasing agent or an authorized representative of the purchasing agency in the presence of one or more witnesses, and must be completed no later than 24 hours prior to the commencement of the reverse auction bidding period.
7. The Council shall notify any bidder determined to be not pre-qualified in writing, by facsimile or electronic mail (as requested by the bidder) and shall exclude the bidder so notified from participation in the reverse auction.
8. The Council’s determination that a bidder is not pre-qualified is limited to the reverse auction for which the request for pre-qualification was received.
(d) Contents of invitation to bid. The invitation to bid must include all of the following:
1. A purchase description;
2. A statement that bids will be accepted by means of a reverse auction process;
3. A description of all contractual terms and conditions that apply to the purchase, including the requirement of a non-collusion affirmation by the successful bidder;
4. The criteria that will be used by the purchasing agency to pre-qualify bidders to determine whether a bidder is responsive and responsible;
5. The information and other documentation required to be submitted for pre-qualification, including a certified check or other evidence of financial responsibility;
6. The location and manner in which bidders must submit information for pre-qualification, the deadline for submission of the information and the deadline by which the Council will determine whether a bidder is pre-qualified;
7. The location, including any websites, at which the invitation to bid may be inspected and copied or copies may be obtained, including, if a third party is conducting the reverse auction, the procedures to be used by the third party in conducting the reverse auction;
8. A statement as to whether a third party is conducting the reverse auction on behalf of the town;
9. A statement that offers submitted by pre-qualified bidders will only be received through the town’s secure website, or if a third party is conducting the reverse auction on behalf of the town, through the third party’s secure website;
10. The date and time at which the reverse auction bidding period will commence and the approximate length of time for which the reverse auction will be conducted, allowing automatic extensions based upon resulting competitive activity;
11. The deadline by which pre-qualified bidders must submit an initial price to a secure website for the purposes of establishing a bidder’s participation and initial ranking at the commencement of the reverse auction bidding period;
12. A statement explaining that the bidding period during which the reverse auction is conducted may be extended based upon competitive activity, at pre-determined periods determined by the purchasing agency;
13. A statement identifying the circumstances under which the reverse auction may be postponed, paused, rescheduled or cancelled;
14. The place and approximate time at which, following the close of the bidding period, offers will be reviewed publicly by an authorized representative of the purchasing agency in the presence of one or more witnesses;
15. A statement that the third party conducting the auction on behalf of the town will collect a service charge from the successful bidder for its participation in the reverse auction;
16. The name, address and telephone number of a representative of the purchasing agency who can provide additional information related to the reverse auction;
17. If a third party is conducting the auction on behalf of the town, the name, address and telephone number of a representative of the third party who can provide additional information related to the reverse auction, including the mandatory training required of all pre-qualified bidders as a condition of participating in the reverse auction; and
18. The conditions under which the invitation to bid may be cancelled or postponed in accordance with I.C. 5-22-18-1.
(e) Receiving offers.
1. The Council shall receive offers only from bidders who have been pre-qualified, in accordance with the invitation to bid.
2. If a third party conducts the reverse auction on behalf of the town, all pre-qualified bidders must receive training provided by the third party in order to participate in the reverse auction.
3. Prior to receiving electronic offers, the Council must find that: the invitation for bid for the reverse auction indicates the procedure for transmitting the electronic offer; and the electronic system on which the offer is received has a security feature that protects the content of an electronic offer with the same degree of protection as the content of an offer that is not transmitted by electronic means.
4. In accordance with the invitation to bid, offers submitted by pre-qualified bidders will only be received:
a. Through the town’s secure website; or
b. If a third party is conducting the reverse auction on behalf of the town, through the third party’s secure website.
(f) Reverse auction bidding period.
1. For each reverse auction, the purchasing agent must establish an initial bidding period during which bidders may submit prices for which the supplies being offered may be purchased. The initial bidding period shall not be less than one hour. The purchasing agent may automatically extend the reverse auction bidding period for additional pre-determined periods based upon competitive activity.
2. During the bidding period for the reverse auction, information available for public display is limited to the ranking, price and name of bidders of each price bid relative to all other prices bid.
3. The dollar amounts of the prices bid by bidders shall not be disclosed to the bidders until the close of the bidding period.
4. All information received, obtained or retained during a reverse auction remains confidential, and may not be disclosed until after the close of the reverse auction bidding period.
(g) Opening offers.
1. In accordance with the Act, offers will be deemed to be opened when a computer generated record of the information contained in all bids received from pre-qualified responsive and responsible bidders is reviewed publicly at the close of the bidding period for the reverse auction in the presence of one or more witnesses at the time and place designated in the invitation for bids by the purchasing agency (or an authorized representative of the purchasing agency, including the purchasing agent).
2. The purchasing agency, and any of its agents or employees, are prohibited from displaying for public viewing the amount of each initial bid price until the close of the initial bidding period for the reverse auction. The purchasing agency is required to protect the identity of a bidder and the prices which have been submitted by each bidder until the initial bid has been placed until the reverse auction begins, at which time bids will be deemed opened.
(h) Contract award.
1. In accordance with I.C. 5-22-7-8, the purchasing agency must award a contract for the purchase of supplies with reasonable promptness by written notice to the lowest responsible and responsive bidder.
2. If the contract is not awarded to the lowest bidder, the purchasing agent must indicate the reasons for the award in writing.
3. As provided in the invitation to bid, the third party conducting the reverse auction may impose a fee as a term of the contract for a purchase made by means of a reverse auction.
(i) Purchase orders and payments.
1. A fully executed purchase order must be filed with Clerk-Treasurer within 30 days after the award of a contract of a purchase of supplies through a reverse auction, in accordance with I.C. 5-22-18-5.
2. Payments for supplies purchased in a reverse auction shall be made only after receiving properly submitted claims in accordance with I.C. 5-11-10, I.C. 36-4-8 and I.C. 36-5-4.
(j) Documentation. The purchasing agency shall be required to maintain adequate documentation regarding its reverse auctions so that the transactions may be audited as provided by law. The purchasing agency shall maintain an indexed file of specifications prepared by or under the authority of its purchasing agents for each reverse auction in which the purchasing agency participates.
(Ord. 071198, passed 7-11-1998; Ord. 071198A, passed 7-11-1998; Ord. 030299A, passed 3-2-1999; Ord. 031009B, passed 3-10-2009)