A. Purposes: The purposes of this section are to standardize the purchasing procedure of the village, thereby securing for the village the advantages of a uniform purchasing policy in an effort to both save money and increase public confidence in the procedures for municipal purchasing. Additionally, it is to promote the fair and equitable treatment of all suppliers of goods and services and to clearly set forth the duties and responsibilities of the department heads and the purchasing agent.
B. Definitions: When used in this section, the following words and terms shall have the meanings ascribed to them in this subsection:
BID MOST ADVANTAGEOUS TO THE VILLAGE: A bid chosen on the basis of price, quality of merchandise, suitability of merchandise, and service/reputation of the vendor and, therefore, may not necessarily mean the lowest bid received.
COMPETITIVE BIDDING: The process of obtaining the most advantageous bid for any purchase, whether through formal or informal procedures.
COOPERATIVE PURCHASE: A purchase made by the village in conjunction with, or from, another governmental or quasi- governmental agency, such as the state of Illinois, school, county, or another municipality.
EMERGENCY: Any situation or circumstance that will inhibit a department from providing delivery of services when said services are, or may be, needed.
FIELD PURCHASE: An informal purchase of supplies needed in small quantities from any vendor for day to day operation made directly by a department head or his/her designee.
FORMAL BID: A written quotation received in a sealed envelope from a vendor, having been publicized, and opened at a specified day, place, and time.
INFORMAL BID: A written quotation which is not required to be opened publicly at a specified day, place, and time or an oral quotation (followed up by an e-mail, e-mail attachment, fax or other written communication) which can be accepted from a vendor.
INVITATION TO BID: The complete assembly of specific related material (whether attached or incorporated by reference) furnished to prospective bidders.
PURCHASE: Buying, renting, leasing, or otherwise acquiring supplies or services for a price.
PURCHASING AGENT: The village administrator or the village administrator's designee.
REQUEST FOR BIDS: The term "request for bids" shall also include "request for proposals" or "request for qualifications".
SERVICES: The lease or rental of equipment; the repair or maintenance of equipment owned by the village or that is the responsibility of the village; all labor furnished to the village by persons, firms, individuals, or corporations not part of or connected with village government. The term shall not include professional services provided to or for the village by attorneys, architects, engineers, auditors, and other professional consultants or utilities such as electricity, water, sewer, etc.
SPECIFICATIONS: Standards, including quality, set by department heads as a guide to the purchasing agent and as a measure of that which successful vendors must achieve. Specifications shall be either technical specifications for bids, which shall state formulations as broadly as is practicable, yet be specific enough to meet the requirements of the department; or nontechnical specifications for bids which shall state, in general terms, how the quality requirements will be achieved. Department heads may rely on technical advice from suppliers, salesmen and other agencies in developing specifications.
SUPPLIES: All materials and equipment.
C. Application Of Provisions: This section shall apply to purchases made by department heads and the village purchasing agent, except as otherwise specified herein.
D. Purchasing Agent: The village administrator shall be the purchasing agent for the village, and shall supervise and manage the purchase of all supplies, materials, and equipment for use by the village in the operation/maintenance of its departments. The purchasing agent shall also govern the sale of surplus, obsolete, or unused supplies, materials, and equipment whenever the same shall no longer be required for municipal purposes. The board of trustees shall award bids for services or materials requiring bonding. Lease purchases containing nonappropriation language shall be awarded by the purchasing agent or his designee.
E. Appropriation Required: Neither the purchasing agent nor any department head shall make any purchase or allow any purchase to be made until an appropriation has been approved by the village board of trustees, if applicable. However, the village administrator may permit an item to be bid prior to the approval of an appropriation if it is in the best interest of the village and will so note in the bid materials that the bid approval is subject to the appropriation being approved by the board of trustees.
F. Purchase Limits: The following purchasing (dollar) limits shall pertain to all purchases made by, or on behalf of, the village, except as otherwise provided in this section:
1. A department head, or the department head's designee, may make a field purchase when the total purchase price for the goods and service being purchased is less than two thousand five hundred dollars ($2,500.00). For the bulk purchase of routine operating supplies that are offered by limited vendors and exceed two thousand five hundred dollars ($2,500.00), such as chemicals for water treatment purposes, approval shall be considered granted at the time of the approval of the overall operating budget for the village, in which case, additional board of trustees approval is not required.
2. Purchases made in emergency circumstances shall be considered to be exempted from the aforementioned limit. Notification that an emergency exists shall be made to the village administrator. A discussion between the department head and the village administrator shall take place specifying the nature of the emergency, the source of funding for the emergency purchase, and the most advantageous manner in which to make the purchase.
3. All other purchases over two thousand five hundred dollars ($2,500.00), unless exempted by this section, must be preapproved by the board of trustees.
G. Bidding:
1. Competitive Bidding: The procedure for competitive bidding shall be as follows:
a. Competitive bids shall be required for all purchases in excess of five thousand dollars ($5,000.00) unless specifically exempted by this section or by action of the board of trustees.
b. Informal bidding procedures shall be allowed when a purchase is required to be competitively bid if the total purchase price is more than five thousand dollars ($5,000.00) and less than twenty thousand dollars ($20,000.00), unless the purchasing agent recommends use of formal bidding procedures due to project complexity, funding source requirement, or to ensure that the village is receiving the best price or value.
c. Formal bidding procedures are specified in subsection G2 of this section and shall be followed by the purchasing agent or his/her designee.
d. The purchasing agent may make cooperative purchases without competitive bidding if the purchasing agent determines the purchase being made after competitive bidding by the cooperative entity is at a price more advantageous than the village would be likely to obtain by competitive bidding on its own.
e. The purchasing agent may waive the requirements for competitive bidding in cases of emergency or when the purchase is inappropriate for competitive bidding due to the nature of the item, time constraints, or other factors; provided, that the purchasing agent shall file a statement of the reason(s) for waiving competitive bidding.
2. Formal Bidding; Over Twenty Thousand Dollars: The procedure for formal bidding (over $20,000.00) shall be as follows:
a. The department head or purchasing agent shall prepare the invitation for bids, describing the village's requirements clearly, accurately, and completely, but avoiding unnecessarily restrictive specifications that unduly limit the number of bidders. The purchasing agent shall determine that the requirements are clearly, accurately, and completely stated within the invitation to bid. Every invitation to bid shall note that all purchases are subject to the conditions set forth in subsection H of this section.
b. The department head or purchasing agent shall publicize the invitation for bids through the following methods at least ten (10) calendar days prior to the time set for public opening of sealed bids:
(1) Distribution to prospective bidders;
(2) Posting at approved posting locations in the village;
(3) Village website;
(4) Appropriate web based bid sites;
(5) Appropriate professional or trade publications; and/or
(6) All other means as the purchasing agent determines is appropriate.
c. Bidders shall submit sealed bids to the village prior to the date and time specified for the opening of bids. No e-mail, attachment, or faxed bids will be accepted.
d. Late bids shall not be accepted.
e. Bids shall be publicly opened at the time and place specified in the invitation to bid. A contract may then be awarded to the responsible bidder whose bid meets all specifications required by the village and whose bid is determined to be the most advantageous to the village. Award may be delayed pending verification of the bidder's credentials, insurance (if required), and references or review of the bids received.
f. Nothing in this subsection G2 shall preclude the village from rejecting any and all bids, as provided in subsection H of this section.
3. Informal Bidding; Five Thousand Dollars To And Including Twenty Thousand Dollars: The procedure for informal bidding ($5,000.00 to and including $20,000.00) shall be as follows:
a. The department head or purchasing agent shall prepare the request for bids, describing the village's requirements clearly, accurately, and completely, but avoiding unnecessary restrictive specifications for requirements that unduly limit the number of bidders. The purchasing agent shall determine that the requirements are clearly, accurately, and completely stated within the request for bids. Every request for bids shall note that all purchases are subject to the conditions set forth in subsection H of this section.
b. The purchasing agent or department head shall publicize the request for bids through:
(1) Distribution to prospective bidders.
(2) Village website.
(3) Web based bid sites (if appropriate).
(4) Professional or trade publications (if appropriate).
c. Bidders shall submit bids to the village prior to the date and time specified for the receipt of bids. If, in the opinion of the department head or purchasing agent, no bids are acceptable, rebidding may be required.
d. Late bids shall not be accepted.
H. Administrative Procedures And Conditions: Competitive bids shall be administered by the purchasing agent and shall be subject to the following conditions:
1. The department head or purchasing agent shall establish a bid master file which includes a checkoff sheet and all required documentation including, but not limited to, the following:
a. Bid specifications.
b. Copy of advertising/web postings and where.
c. Mailing/contact list.
d. Bid responses.
e. Bid tabulation.
f. Award letter/rejection letters (required for formal bidding only).
g. Post bid results on the village website.
h. Notes from any bid specification review meetings with participant roster (required for formal bidding only).
2. Bid format:
a. Bid packages will be, whenever possible, standardized.
b. Bid specifications will be, whenever practical, in a standardized format depending on the category of goods or services sought.
c. Establishing bid specifications shall be the responsibility of the department head or purchasing agent.
3. Bid advertising shall follow the procedures specified in subsections G1 and G2 of this section.
4. Request for bids shall be mailed or advertised at least ten (10) calendar days prior to the deadline set for the receipt of bids.
5. The department head or purchasing agent may hold a bid specification meeting when a particular project is complex or when it will clarify the project or service required. The meeting shall be open to all interested prospective bidders. Said meeting time and place shall be included in the bid documents and all advertisements.
6. Bids shall be noted with the time and date received.
7. The department head or purchasing agent shall keep a record of all bids submitted, and such records shall be open for inspection.
8. All bidders shall be notified in writing of bid results within ten (10) days after the bids are opened for formal bidding only.
9. Tie bids shall be resolved by the village administrator.
10. All bids shall be awarded on the basis of the bid most advantageous to the village, which may or may not be the lowest bid.
11. The village reserves the right to reject any and all bids or to accept the bid that appears to be in the best interest of the village, investigate the qualifications of any bidder, and waive or not waive any and all formalities in the bids when making an award.
12. If an award is made to other than the low bidder, the purchasing agent shall file a statement of the reasons for determining that the low bid was not the bid most advantageous to the village, together with all papers relating to the bidding process for the formal bidding process only, unless required as part of a grant.
13. Subject to subsections H10, H11 and H12 of this section, the village may give preference to local bidders if the difference between the lowest responsible bids submitted by companies or individuals located in Peoria Heights and those not located in Peoria Heights is two percent (2%) or less. For purposes of this section "located in Peoria Heights" shall mean bidders whose company headquarters are in Peoria Heights and/or who pay excise taxes on their vehicles in Peoria Heights and/or who pay personal property taxes in Peoria Heights. Individuals shall be classified as "located in Peoria Heights" if they are residents of the village. Competing bids submitted by companies/individuals located in Peoria Heights, as defined above, within two percent (2%) of each other shall be considered in accordance with the provisions of subsections H10, H11 and H12 of this section. This subsection H13 is required for formal bidding only.
14. The village retains custody of all bids submitted, pursuant to this section.
I. Duties Of Department Heads: The following are duties of the village department heads:
1. Determine acceptable quality of commodities and supplies to be purchased.
2. Reject any unacceptable supply of goods and/or materials provided to the village by a vendor on the grounds of low quality. The department head shall notify the purchasing agent of the rejection and supply a written report supporting the rejection.
3. Prepare requisitions with an eye toward cooperative purchasing and keep corresponding records to facilitate correct accounting charges. Department heads shall be responsible for signing off on invoices for goods and services purchased by their departments.
4. When appropriate, report to the purchasing agent the following:
a. Items beyond use.
b. Items being replaced or to be replaced.
c. Items no longer of use to the department operations.
5. Maintain adequate supplies on hand to minimize the need for direct field purchases.
6. All other duties as outlined in this section. (2016 Code)