(A) Introduction/statement of policy.
(1) The purpose of this purchasing manual is to provide the City of Oak Forest staff with guidelines and directions for the acquisition of goods and services. When used with good judgment and common sense, the policies and procedures conveyed within will allow the city to obtain required supplies and services efficiently and economically.
(2) This manual is designed to be a fluid document and will be modified from time to time to conform to changes in legislation, technology and actual practice. Although it may not answer every question related to purchasing practices, it does provide general guidelines for purchasing activities. Employees who need help dealing with specific situations not covered by the manual should contact the controller for assistance.
(3) The provisions of this manual shall be approved by the City Council. Administration of the manual shall be the responsibility of the City Administrator.
(4) Failure to follow the procedures outlined in this manual may lead to disciplinary action in accordance with the provisions of the City of Oak Forest personnel policy manual.
(B) Purchasing policies.
(1) Code of ethics. All city personnel engaged in purchasing and related activities shall conduct business dealings in a manner above reproach in every respect. Transactions relating to expenditure of public funds require the highest degree of public trust to protect the interests of the city and the residents of Oak Forest. City employees shall strive to:
(a) Ensure that public money is spent efficiently and effectively and in accordance with statutes, regulations and city policies;
(b) Maintain confidentiality at all times;
(c) Not accept gifts or favors from current or potential suppliers, which might compromise the integrity of their purchasing function;
(d) Purchase without favor of prejudice;
(e) Ensure that all potential suppliers are provided with adequate and identical information upon which to base their offer or quotation and that any subsequent information is made available to all bidders;
(f) Establish and maintain procedures to ensure that fair and equal consideration is given to each offer or quotation received and selection is based upon the lowest responsible bid;
(g) Offer a prompt and courteous response to all inquires from potential or existing suppliers;
(h) Responsibly plan purchases to insure that the need for “emergency” approvals reflects true emergencies; and
(i) It shall be the responsibility of the City Administrator to determine if a violation of this code of ethics has occurred and if disciplinary action is necessary in accordance with the city’s personnel manual.
(2) Approval of city purchases. No employee shall purchase goods or services on behalf of the city without first seeking approval as required by this policy. All purchases shall require advance approval of the appropriate department head, purchasing agent or the City Council in accordance with the guidelines described in this division:
Dollars Limits | Required Approval |
Up to $1,000 | Department head |
$1,001.00 to $10,000 | City Administrator |
$10,001 and above | City Council |
(3) Regular purchase orders. All purchases exceeding $1,000 shall require the issuance of a regular purchase order to the vendor before an order for goods or services is filled. Employees shall be responsible for planning for purchases exceeding $1,000 in advance, and should allow sufficient time to have a requisition processed and purchase order issued and mailed to the vendor. Vendors must indicate the correct purchase order number on an invoice and forward it to the Finance Clerk to process it for payment.
(4) Change orders to regular purchase orders. After a regular purchase order is issued to the vendor, it may become necessary to change it to include additional quantities, shipping costs and the like. If the actual purchase exceeds the requisition by more than 10%, the department head should forward a request to edit the purchase order to the controller indicating the reason for the increase. If the change is less than or equal to 10%, no action is necessary.
(5) Blanket purchase orders. Blanket purchase orders are intended to give employees flexibility when purchasing mass quantities from the same vendor on a recurring basis (e.g., concrete, patching material, car washes). Blanket purchase orders will be issued to a vendor on a monthly basis. The department head shall enter a requisition for the approximate quantity needed for the month. The controller will approve the monthly expenditure and issue a purchase order. The purchase order will be closed at the end of the month. In instances where a blanket purchase order has been issued, it is not necessary to process a requisition and have a regular purchase order issued in advance of obtaining the goods. Employees may obtain items from vendors in the field upon approval of the department head. Vendors must reference the correct blanket purchase order number on an invoice and forward it to the Finance Clerk to process it for payment.
(6) Contract purchase order. Contract purchase orders shall be issued if the city has an annual contract with a vendor or supplier (e.g., insurance policy, maintenance contract). Contract purchase orders will be created by the Finance Clerk at the beginning of each fiscal year. Department heads should forward the terms of any contract to the controller so that a purchase order can be created and mailed to the vendor. The purchase order will be closed at the end of the fiscal year. Vendors must indicated the correct contract purchase order number on an invoice and forward it to the Finance Clerk to process it for payment.
(7) Union and contractual benefits. A request for payment for union and contractual benefits paid to city employees should be forwarded to the Finance Clerk to be included on the list of bills presented to the City Council. Examples of union and contractual benefits include optical and dental reimbursement, tuition reimbursement and uniform reimbursement. The check request approved by the department head will supersede the requirement for a purchase order.
(8) Grant purchases. Purchases made with grant proceeds require a regular purchase order, if it is greater than $1,000. The department head should request the controller to propose a budget adjustment to the City Council if the income and expenditure was not previously budgeted.
(C) Competitive quotes and exceptions to the policy.
(1) General policy for soliciting quotes.
(a) Employees are responsible for obtaining quotes for purchases in the instances outlined in this section. When requesting a purchase, quotes should be forwarded to the purchasing agent. Requisitions submitted without the required quotes or a satisfactory explanation of why quotes were not obtained (e.g., sole source, emergency, standardized vendor and the like) would be returned to the originator without approval.
Up to $1,500 | One verbal quote is required, however, employees are encouraged to seek additional quotes when possible. |
$1,501 to 10,000 | Three quotes must be obtained and submitted to the purchasing agent with the requisition. A purchase order will be issued after approval by the purchasing agent. |
$10,001 to 20,000 | Three written quotes must be obtained and submitted to the purchasing agent with the requisition. The purchasing agent will forward the request to the City Council for approval. A purchase order will be issued after approval by the City Council. |
$20,001 and above | Must be competitively bid in accordance with state law and city ordinances. City Council approval is required for all contracts of this dollar amount. A purchase order will be issued after approval by the City Council. |
(b) Items purchased more than once during a fiscal year (e.g., paper, office supplies and the like) do not need quotes every time a purchase is made. However, competitive quotes for these items shall be sought at the beginning of each fiscal year to ensure that vendors are competitive.
(2) Joint purchasing.
(a) City employees are authorized to obtain goods and services using the State of Illinois joint purchasing program.
(b) When available through the state program, it is not necessary for city employees to obtain quotes or to competitively bid the goods or services, which are sought.
(c) Employees shall be responsible, however, for ensuring that the goods or services are of a quality sufficient to meet the city's needs and that pricing is competitive.
(d) When making purchases using the state’s assigned vendor, employees shall submit a purchase requisition to the purchasing agent and shall include the State of Illinois’ contract number. This information should be indicated on the requisition by using the special instructions field when entering the purchase requisition. The controller will then issue a purchase order to the vendor.
(e) The city is also authorized to enter into agreements for joint purchasing with authorized units of government under the law.
(f) These units include, but are not limited to, the City of Chicago, Cook County and other municipalities in the Northwest Municipal Conference and the South Suburban Mayors’ and Managers’ Association. Furthermore, if a local vendor matches the contract amount in a competitively bid joint purchase program, that vendor will be deemed the lowest responsible bidder for that purchase.
(3) Sole source purchases.
(a) Contracts for parts, supplies or equipment that are available only from a single source are referred to as sole source purchases.
(b) Sole source procurements may arise from the following circumstances:
1. Equipment for which there is no comparable competitive product or is available only from one supplier;
2. Public utility services from natural or regulated monopolies;
3. A component or replacement part for which there is no commercially available substitute, and which can be obtained only from the manufacturer;
4. An item where compatibility is the overriding consideration, such as computer software; and
5. A used item, for example, a television transmitter tower, that becomes immediately available and is subject to prior sale.
(c) These items shall not be subject to requirements for seeking competitive quotes or bids. When submitting a request for purchase, the requisitioner must indicate that the item or service is a sole source purchase. This should be noted on the special instructions field when entering the requisition. The controller will then issue a purchase order to the vendor.
(d) Sole sources purchases in excess of $10,000 shall be presented to the City Council prior to acquisition with a request to waive bids, approve the purchase and enter into a formal contract.
(4) Emergency purchases policy.
(a) EMERGENCIES are defined as events that could not have been foreseen where immediate action is necessary to safeguard the public’s health and safety. In the event of an emergency affecting the public health and safety, the department head or his or her designee may authorize a vendor to perform work necessary to resolve the emergency without formal bid solicitation.
(b) A department head may authorize a vendor to perform any and all work necessary only if the public health and safety could be affected.
(c) After the emergency has been resolved, the department shall enter a requisition in the purchase order module for the goods or services purchased.
(d) Using the requisition special instructions field, the department shall indicate that it was an emergency and forward an explanation to the purchasing agent.
(e) The controller will then issue an emergency purchase order to the vendor.
(5) Waiving of bids. When appropriate, the City Council may waive the bidding procedure and authorize a purchase by a vote of two-thirds of all aldermen.
(D) Competitive bidding and requests for professional services.
(1) When a formal bid is required.
(a) All purchases of goods or services exceeding $20,000 shall be purchased by sealed bids, formal bidding procedures and from the lowest responsive bidder after an adequate period of public notice.
(b) Public notice shall be published in at least one newspaper of general circulation in the city, at least 14 days prior to bid closing.
(c) The newspaper notice shall include, at a minimum, a brief description of the item to be purchased or sold, where bid blanks and specifications may be secured, the time and place for bid opening and a rejection rights clause.
(2) Bid opening procedures. All sealed bids shall be publicly opened by an employee as assigned by the applicable department head at the time stated in the legal notice. The purchasing agent or his or her designee shall be present at the bid opening as well as at least one other employee to serve as a witness and tabulate the bid results.
(3) Bid lists.
(a) Each department shall be responsible in maintaining their own lists of prospective bidders.
(b) Requests to be placed on the bid list received by City Administrator or controller shall be forwarded to the appropriate department head.
(c) Departments shall be responsible for maintaining current lists of bidders and for determining prospective bidder’s qualifications.
(4) Requests for professional services.
(a) Some contracts, by their nature, are not adapted to award by competitive bidding. Examples include, but are not limited to, contracts for the services of individuals possessing a high degree of professional skill where the education, experience or character of the individual is a significant factor in determining their ability to meet the city’s needs.
(b) These contracts generally result from a request for proposal (RFP) solicited from consultants for “professional services.”
(c) The city is required by the Local Government Professional Services Selection Act to follow specific procedures when hiring an architect, engineer or land surveyor. The procedures must be followed, unless:
1. The city has a satisfactory relationship for services with one or more firms;
2. An emergency situation exists and an architect, engineer or land surveyor must be selected in an expeditious manner; or
3. When the cost of those services is expected to be less than $25,000. If none of these conditions apply, the city must solicit proposals.
(E) Minimum requirements for certain bidders on city contracts.
(1) Prior to the award of any contract for the purchase of any work for the City of Oak Forest, any successful bidder shall produce each of the following:
(a) Federal employee tax number if an entity other than an individual or social security number if an individual;
(b) Proof of compliance with provisions of Subchapter VI of Chapter 21, Title 42 of the United States Code and Federal Executive Order No. 11246 as amended by Executive Order No. 11375 (known as Equal Opportunity Employer provisions);
(c) Certificates of insurance indicating the following coverages: general liability workers’ compensation, complete operations, automobile, hazardous occupation, product liability and professional liability as may be necessary for the project and in the amounts as described in the bid specifications;
(d) Proof of compliance with all provisions of the Illinois Prevailing Wage Act, including wages, medical and hospitalization insurance and retirement for all those trades covered in the Act.
(2) Failure to produce these items within five business days of the date of written request by the city shall result in the bidder’s disqualification. For purposes of this division (E),
WORK
shall mean any repair, construction, installation or labor provided in furtherance of any repair, construction or installation.
(2000 Code, § 2.28.020) (Ord. 2659, passed 10-8-2002; Ord. 2931, §§ 2, 3 (Exh. A), passed - -2005; Ord. 2014-05-0495O, passed 5-27-2014)