(A) Purchasing agencies; rules. The following Boards and Commissions are established or acknowledged as the purchasing agency (the “Purchasing Agency”) for the city to the extent stated:
(1) Shelbyville Board of Aviation Commissioners for the purchase of supplies and services paid in whole or in part from:
(a) Any monies in the Aviation Operating Bank Account; or
(b) Any revenue from the operation of the Shelbyville Municipal Airport;
(c) An appropriation to the Board of Aviation Commissioners; or
(d) Monies related to a project which has been determined by the Board of Aviation Commissioners to be a benefit to the Shelbyville Municipal Airport.
(2) Shelbyville Economic Development Commission for the purchases of supplies and services which are paid in whole or in part from:
(a) Any monies in the Commission's Bank Accounts;
(b) Any revenues directly accruing to the Economic Development Commission;
(c) An appropriation to the Economic Development Commission; or
(d) Monies related to an economic development project which has been determined by the Economic Development Commission to be a benefit to a district.
(3) Shelbyville Park and Recreation Board for the purchase of supplies paid in whole or in part from:
(a) Any monies in any of the funds of the Shelbyville Park and Recreation Board;
(b) Any revenues from the operation of the Shelbyville Parks and Recreation Department including any of its programs;
(c) An appropriation to the Shelbyville Park and Recreation Board; or
(d) Monies related to a project which has been determined by the Shelbyville Park and Recreation Board to be a benefit to the Shelbyville Parks and Recreation Department.
(4) Shelbyville Redevelopment Authority for the purchases of supplies and services which are paid in whole or in part from:
(a) Any monies in the Authority's Bank Accounts;
(b) Any revenues of a Tax Increment Financing (TIF) District;
(c) An appropriation to the Redevelopment Authority; or
(d) Monies related to an economic development project which has been determined by the Redevelopment Authority to be a benefit to a TIF district.
(5) Shelbyville Redevelopment Commission for the purchases of supplies and services which are paid in whole or in part from:
(a) Any monies in the Commission's Bank Accounts;
(b) Any revenues of a Tax Increment Financing (TIF) District;
(c) An appropriation to the Redevelopment Commission; or
(d) Monies related to an economic development project which has been determined by the Redevelopment Commission to be a benefit to a TIF district.
(6) Board of Public Works and Safety for the purchases of supplies and services for the city including every agency, board, office, branch, bureau, commission, council, department or other establishment of the city, except as provided by divisions (1) through (5) above. Notwithstanding divisions (1) through (5), the Board of Aviation Commissioners, the Economic Development Commission, the Shelbyville Park and Recreation Board, the Shelbyville Redevelopment Authority and the Shelbyville Redevelopment Commission may request the Board of Public Works and Safety to make purchases for it as the purchasing agency and with its designated purchasing agents.
(B) Powers. The Purchasing Agency shall have all the powers and duties authorized under I.C. 5-22 as amended and as supplemented, and as may be supplemented from time to time by ordinances adopted by the Shelbyville City Council and policies adopted by the Purchasing Agency.
(C) Agents.
(1) The Presidents of the Economic Development Commission, the Shelbyville Redevelopment Authority and the Shelbyville Redevelopment Commission, the Shelbyville Park and Recreation Board and the Board of Aviation Commissioners shall be the purchasing agent of the Purchasing Agency for which they serve unless and until the Purchasing Agency files in writing terminating such status with the Executive Officer of the city.
(2) The City's Fiscal Officer, the City's Executive Officer and each executive department head shall be a purchasing agent of the Purchasing Agency of the Board of Public Works and Safety for purchases for their own departments or operations unless and until the Purchasing Agency files in writing terminating such status with the Executive Officer of the city or until the Purchasing Agency establishes a separate City Purchasing Agent, with Council concurrence.
(3) In addition, any Purchasing Agency may designate any employee of the agency or the city as one of its purchasing agents by filing in writing with the Executive Officer of the city. The writing shall delineate the purchasing agent's limits of authority. The designation of one as a purchasing agent may be terminated at the discretion of the Purchasing Agency.
(4) Any Purchasing Agency may authorize any of its purchasing agents to designate any of the agent's employees or office holders as purchasing agents under the terms and conditions it believes appropriate. Any such designations may be terminated by either the purchasing agent who designated such purchasing agent or by the Purchasing Agency by filing a writing terminating such purchase agent status with the Executive officer of the city.
(D) Required rules. The following are the required purchasing rules for the city for purchasing with no Federal Funds or Federal oversight:
(1) Purchase of supplies manufactured in the United States. Supplies manufactured in the United States shall be specified for all city purchases and shall be purchased unless the city's Purchasing Agency determines that:
(a) The supplies are not manufactured in the United States in reasonably available quantities;
(b) The price 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;
(d) The purchase of supplies manufactured in the United States is not in the public interest;
(e) The Purchasing Agency shall be responsible for defining the term “manufactured” in the United States; or
(f) The items exempted by authority of 48 CFR 25.103(b) and listed in 48 CFR 25.104, as amended from time to time, are presumed to not be manufactured in the United States in reasonably available quantities.
(2) Purchase of supplies from the Department of Correction.
(a) The city shall purchase from the Department of Correction supplies and services produced or manufactured by the department under I.C. 11-10-6 as listed in the department's printed catalog unless the Purchasing Agency or its purchasing agent has determined that:
1. The supplies and services cannot be furnished in a timely manner;
2. The supplies and services do not meet the specification and needs of the city; or
3. The supplies and services cannot be purchased as a fair market price.
(b) The Purchasing Agency shall be responsible for interpreting the terms in this subsection in order to carry out the intent.
(3) Purchase of supplies from the Rehabilitation Center under I.C. 12-12-3-1.
(a) The city shall purchase articles produced by the Rehabilitation Center as listed in the Bureau's printed catalog unless the Purchasing Agency or its purchasing agent has determined that:
1. The supplies and services cannot be furnished in a timely manner after having given the bureau a reasonable time to produce or supply the articles;
2. The supplies and services do not meet the specification and needs of the city;
3. The supplies and services cannot be purchased as a fair market price; or
4. Similar articles are produced by the city.
(b) The Purchasing Agency shall be responsible for interpreting the terms in this subsection in order to carry out the intent. However, once the Purchasing Agent has obtained a written statement from the Bureau that the article described in the catalog cannot be furnished, the agent may obtain the article elsewhere.
(E) Small purchases rule. Any Purchasing Agency may establish further policies for designated purchasing agents to purchase supplies with an estimated cost of less than $25,000 on the open market without inviting or receiving quotes.
(F) Special purchasing methods. Any Purchasing Agency may use any special purchasing method for which it can qualify under I.C. 5-22-10, as amended from time to time.
(G) Purchase of services. The Shelbyville City Council hereby determines that each Purchasing Agency department, the elected Executive Officer and the elected Fiscal Officer, and the Council, may purchase services in whatever manner the purchaser determines to be reasonable, to the extent provided by law.
(H) Procedural rules. The following are the purchasing rules for the city for purchasing with no Federal Funds or Federal oversight:
(1) Protection of offers: status of documents as public records. Pursuant to I.C. 5-22-18-4, as amended from time to time, all documents submitted to the city in response to a solicitation shall be protected from disclosure and public inspection as follows:
(a) Protection of offers prior to opening. The Purchasing Agent 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 such a manner as to permit evaluation of the offers by the persons responsible for evaluating the offers.
(c) 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, and keep the register available for public inspection and copying. Proposals may not be disclosed.
(d) The Purchasing Agent may provide in the solicitation that all information in the response to the solicitation claimed to be proprietary must be submitted in an envelope marked “CONFIDENTIAL” and that the offer must indemnify the city, the Purchasing Agency, and their agents of any claim under the Public Records Law in connection with the offer. The solicitation may also provide that if the offeror fails to defend the claim that the information is proprietary within five days of notice of a request for disclosure under the Public Records Law, the offeror has waived the claim and consents to disclosure.
(e) All registers of proposals will be kept in the Mayor's office for five years.
(2) Discussions with offerors responding to a request for proposals. The Purchasing Agent may conduct discussions with, and best and final offers may be obtained from, responsible offerors who submit proposals determined to be reasonably susceptible of being selected for a contract award.
(3) Delay of opening of offers. When the Purchasing Agency makes a written determination that it is in the city's best interests, 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.
(4) 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, without the approval of the Purchasing Agency.
(b) Purchases between $25,000 and $75,000. 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.
(5) Use of RFP for purchase of designated types of supplies. The Purchasing Agency shall determine when it is either not practicable or not advantageous to purchase certain types of supplies by sealed competitive bidding and receiving proposals is the preferred method for purchasing those supplies.
(6) Modification and termination of contracts.
(a) Price adjustments. The Purchasing Agent may include provisions to permit price adjustments in a purchase contract. The following provision 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 such clauses with adjustment of profit or fee, all as specified in the contract or subsequently agreed upon;
4. Price adjustments must be computed in such other manner as the contracting parties may mutually agree upon; or
5. In the absence of agreement by the parties, price adjustments must be computed by a unilateral determination by the governmental body of the costs attributable to the events or situations under such clauses with adjustment of profit or fee, all as computed by the governmental body in accordance with applicable rules adopted by the governmental body.
(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 Purchasing Agency. The Purchasing Agent may include in a purchase contract provisions dealing with the unilateral right of the city 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 a purchase contract provisions dealing with variations between the estimated quantities of work in a contract and the actual quantity delivered.
(7) Publication of notices.
(a) Invitation for bids.
1. All notices of invitation for bids shall be published in accordance with I.C. 5-3-1 as amended.
2. 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.
1. All notices of request for proposals shall be published in accordance with I.C. 5-3-1 as amended.
2. 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 ten days prior to the date the proposals will be opened.
(c) Request for specifications.
1. All notices of request for specifications shall be published in accordance with l.C. 5-3-1 as amended.
2. The Purchasing Agent shall schedule the publication of notice to provide a reasonable amount of time for preparation and submissions of specifications. 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 proposals will be opened.
(d) Electronic notices. 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.
(8) 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 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. The Purchasing Agency may receive electronic offers in response to an invitation to bid, request for proposals or request for specifications to the extent allowed by law.
(c) Correction 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 bid was 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 the bids were opened.
(9) Other procedural rules. The Purchasing Agency may make additional policies as it deems necessary to supplement these rules on either a purchase by purchase basis or for all of its purchases.
(I) For purchasing involving Federal funds or Federal oversight, the following procedure shall be followed:
(1) The city will maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following:
(a) Rationale for the method of procurement;
(b) Selection of contract type;
(c) Contractor selection or rejection; and
(d) The basis for the contract price.
(2) Informal procurement methods. When the value of the procurement for property or services under a federal award does not exceed the simplified acquisition threshold (SAT), as defined by Federal law, formal procurement methods are not required.
The city may use informal procurement methods to expedite the completion of its transactions and minimize the associated administrative burden and cost. The informal methods used for procurement of property or services at or below the SAT include:
(a) Micro-purchases.
1. Distributio n. The acquisition of supplies or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold established by Federal law. To the maximum extent practicable, the city should distribute micro-purchases equitably among qualified suppliers.
2. Micro-purchase awards. Micro-purchases may be awarded without soliciting competitive price or rate quotations if the city considers the price to be reasonable based on research, experience, purchase history or other information and documents it files accordingly.
3. Micro-purchase thresholds. The city adopts the Federally-determined threshold for micro purchases, reserving the right to increase the threshold based on an evaluation of risk.
4. If the city decides on a threshold above the Federal standard, the city must include any of the following:
a. A qualification as a low-risk auditee, in accordance with the Federally-set criteria for the most recent audit;
b. An annual internal institutional risk assessment to identify, mitigate, and manage financial risks; or,
c. For public institutions, a higher threshold consistent with state law.
5. If the city increases the micro-purchase threshold over $50,000, it must be approved by the cognizant agency for indirect costs. The city must submit a request with all Federal requirements. The increased threshold is valid until there is a change in status in which the justification was approved.
(b) Small purchases.
1. Small purchase procedures. The acquisition of property or services, the aggregate dollar amount of which is higher than the micro-purchase threshold but does not exceed the simplified acquisition threshold. Price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the City Council.
2. Simplified acquisition thresholds. The city adopts the Federal simplified acquisition threshold.
(3) Formal procurement methods. When the value of the procurement for property or services under a federal financial assistance award exceeds the SAT, formal procurement methods are required. Formal procurement methods require following documented procedures. Formal procurement methods also require public advertising unless a non-competitive procurement can be used in accordance with Federal law. The following formal methods of procurement are used for procurement of property or services above the simplified acquisition threshold or a value below the simplified acquisition threshold:
(a) Sealed bids. Bids shall be publicly solicited and a firm fixed-price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming with all the material terms and conditions of the invitation for bids, is the lowest in price.
(b) Sealed bids applicability. Sealed bids will be used when the following conditions are present:
1. A complete, adequate, and realistic specification or purchase description;
2. Two or more responsible bidders are willing and able to compete effectively for the business; and
3. A firm fixed price contract and the selection of the successful bidder can be made principally on the basis of price.
(c) If sealed bids are used, the following requirements apply:
1. Bids must be solicited from an adequate number of qualified sources, providing them sufficient response time prior to the date set for opening the bids, for local, and tribal governments, the invitation for bids must be publicly advertised;
2. The invitation for bids, which will include any specifications and pertinent attachments, must define the items or services in order for the bidder to properly respond;
3. All bids will be opened at the time and place prescribed in the invitation for bids, and for local and tribal governments, the bids must be opened publicly;
4. A firm fixed price contract award will be made in writing to the lowest responsive and responsible bidder. Where specified in bidding documents, factors such as discounts, transportation cost, and life cycle costs must be considered in determining which bid is lowest. Payment discounts will only be used to determine the low bid when prior experience indicates that such discounts are usually taken advantage of; and
5. Any or all bids may be rejected if there is a sound documented reason.
(d) Proposals. A procurement method in which either a fixed price or cost reimbursement type contract is awarded. Proposals are generally used when conditions are not appropriate for the use of sealed bids. They are awarded in accordance with the following requirements:
1. Requests for proposals must be publicized and identify all evaluation factors and their relative importance. Proposals must be solicited from an adequate number of qualified offerors. Any response to publicized requests for proposals must be considered to the maximum extent practical;
2. Contracts must be awarded to the responsible offeror whose proposal is most advantageous to the city, with price and other factors considered; and
3. The city may use competitive proposal procedures for qualifications-based procurement of architectural/engineering (A/E) professional services whereby offeror's qualifications are evaluated and the most qualified offeror is selected, subject to negotiation of fair and reasonable compensation. The method, where price is not used as a selection factor, can only be used in procurement of A/E professional services. It cannot be used to purchase other types of services though A/E firms that are a potential source to perform the proposed effort.
(4) Noncompetitive procurement. There are specific circumstances in which noncompetitive procurement can be used. Noncompetitive procurement can only be awarded if one or more of the following circumstances apply:
(a) The acquisition of property or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold;
(b) The item is available only from a single source;
(c) The public exigency or emergency for the requirement will not permit a delay resulting from publicizing a competitive solicitation;
(d) The federal awarding agency or pass-through entity expressly authorizes a noncompetitive procurement in response to a written request from the city; or
(e) After solicitation of a number of sources, competition is determined inadequate.
(5) The city shall conduct procurements in a manner that prohibits the use of statutorily or administratively imposed state, local, or tribal geographical preferences in the evaluation of bids or proposals, except in those cases where applicable Federal statutes expressly mandate or encourage geographic preference.
(6) When contracting for architectural and engineering (A/E) services, geographic location may be a selection criterion provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract.
(7) The city will follow procedures outlined in CFR 180.300, particularly that it will verify that the person with whom the city intends to do business is not excluded or disqualified, by checking (a) SAM Exclusions; or (b) Collecting a certification from that person; or (c) Adding a clause or condition to the covered transaction with that person.
(`81 Code, § 30.04) (Ord. 98-2297, passed 6-15-98; Am. Ord. 23-2971, passed 2-6-23)