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3.11 3.11 2023 ORGANIZATIONAL MEETINGTurchasing Policy RESOLUTION ADOPTING TOWN PURCHASING POLICY FOR 2023 RESOLUTION NO.: 12023 INTRODUCED BY: WHO MOVED ITS ADOPTION SECONDED BY: WHEREAS, the Queensbury Town Board wishes to adopt the Town of Queensbury Purchasing Policy for 2023, NOW, THEREFORE, BE IT RESOLVED, that the Queensbury Town Board hereby adopts the Town of Queensbury Purchasing Policy for 2023 substantially in the form presented at this meeting, and BE IT FURTHER, RESOLVED, that the Town Board further authorizes and directs the Town Budget Officer to distribute copies of such Policy to all Town Department Managers, and BE IT FURTHER, RESOLVED, that the Town Board further authorizes and directs the Town Supervisor and/or Town Budget Officer to take any actions necessary to effectuate the terms of this Resolution. Duly adopted this 2nd day of January, 2023 by the following vote: AYES NOES ABSENT : MISCELLANEOUSIPurd3sing Procedures- UPDATES? FOR [-! -2U- Attach Appendix A TOWN OF QUEENSBURY PURCHASING PROCEDURES I. OBJ -EC'I'IVE AND SCOPE In general, the Town's purchasing procedures are intended to assure the economical use of public funds, facilitate the acquisition of goods and services of maximum quality at the lowest possible price, and guard against favoritism, extravagance, fraud and corruption. This manual is primarily concerned with obtaining the goods and services needed in the operations of the Town at dollar amounts which are below the New York State bidding thresholds. See Section III of this manual of the NYS Bidding thresholds. For procurement which are over the NYS bidding thresholds, the Town Purchasing Agent will handle the bidding procedure for the requesting department, after receiving Town Board approval for the solicitation of bids. The Purchasing Agent duly appointed by the Town Board is Joanne Watkins. The Purchasing Agent will refer to the New York State Office of the State Comptroller Local Government Management Guide: The Practice of Internal Controls for details. The keynote to any successful purchasing system is cooperation: cooperation between the Department Heads and the Purchasing Agent; cooperation between the Purchasing Agent and the Budget Officer; cooperation between the governing board and all officers and employees of the Town. Cooperation coupled with a positive approach is essential. Ultimately, department heads wit( be reasonable for making sure that all purchasing procedures are complied with as outlined by the purchasing procedures. II. DEFINITION There are basically two kinds of procurement for the goods and services needed in the operations of the Town: I ) Purchase Contracts, and 2) Contracting for Public Work. In general, Purchase Contracts mostly involve the acquisition of commodities, materials, supplies I or equipment. Contracts for Public Work mostly involve services, labor or construction. Many times, contracts involve both goods and services, and it is difficult to determine whether the procurement is a Purchase Contract or a Contract for Public work. Each procurenxent must be reviewed on a case-by-case basis and a determination made as to what kind of contract is involved. In addition, the dollar amount of the procurement will determine the necessary steps for Purchase Order approval and purchasing procedures As a general rule, if a contract involves a substantial amount of services such that the services are the focal point, and the acquisition of goods is incidental, then it will be considered a Contract for Public Work. On the other hand, if the services or labor are only minimal or incidental to the acquisition of goods, then the procurement is considered to be a Purchase Contract Ill. NEW YORK STATE BIDDING LIMITS 1) General Rules New York State General Municipal Law 103 (GML 103) requires competitive bidding for the procurement of certain kinds and amounts of goods and services. Contracts for amounts over the amounts set forth in the current text of GML 103 for Purchase Contracts and Public Works Contracts will only be made by the Town Purchasing Agent after Town Board approval of bid specifications and review and approval of the lowest responsible bidder. Town Board resolutions are required for a project to go out to bid and to award the bid to the chosen bidder. The Purchasing Agent and the Department Read shall submit their recommendations to the Town Board prior to awarding the bid. If a single type of item is purchased by a Department Head, or the Town in total, through many purchases during the budget year, and the cumulative total is reasonably expected to exceed the amount set forth in the current text of GML. 103 for Purchase Contracts, then the item shall also be subject to competitive bidding, per NYS GML 103. 2) r`Pisaybacking" Alternative Under General Municipal Law § 303(16), the Town may purchase apparatus„ materials, equipment and supplies, and contract for services related to the installation, maintenance or repair of those items, tinder a Contract let by the United States or any agency thereof, any State or any other political subdivision or district without going through its own competitive bidding process if the Contract has been let in a manner that is consistent with those procedures and meets certain other requirements, The Memorandum of the New 'York State Comptroller entitled "New "Piggybacking" Law - Exception to Competitive Bidding" should be consulted to determine if a Contract meets the statutory prerequisites and other criteria for use under this alternative. Contracts of this type may only be utilized after Town Board approval. ©octunentation of the Town's decision-making process should include a copy of the Contract, the analysis discussed ensure that it rneets the statutory prerequisites and the cost savings analysis, including 2 consideration of other procurement methods. IV. PURCHASING FOR AMOUNTS LESS THAN THE NYS BIDDING LIMITS D General Rules of Pu_r_chasin The rules of purchasing depend on the annual total dollar amount of the items or services being purchased_ In general, for all purchases, the following is true: A) All purchases shah be initialized by the Department Head. The Purchasing Agent will be utilized by the Department Head for all purchases involving competitive bidding or the formal RFP process. D) All purchases over $1,000 require a Purchase Order approved by the Purchasing Agent to be processed before each order is placed. Purchase Orders for amounts under $1,000 may be issued if requested by the Vendor or Department Head. C) All single purchases of $20,000 and over require Torun Board approval by resolution whether trade through State Contract or by Competitive bidding. D) All purchases made from a vendor selling goods on Town premises must be accompanied by a valid purchase order. Invoices received without referring to a valid purchase order will not be processed. 2) Price Quotes All price quotes shall be in written form, such as a letter or a fax from the vendor to the Town. A copy of all quotes shall be submitted to the Purchasing Agent prior to approval of any Purchase Order. The written price quotes shall be submitted as an attachment to the voucher for payment. items purchased under State Coun or i back contract must have the contract number listed on the purchase order request. Single purchases between $2,500 and $20,000 will require 2 written quotes, one of which may be State Contract Pricing, Single purchases over $20,000 require competitive bidding process, unless State Contract Pricing is available. Department Heads must go through the Purchasing Agent for the bidding process. 3 3) Professional Services A. Retention of professional services over $ I o,000 in any given fiscal year must be approved by the Town Board of the Town of Queensbury, as evidenced by a Resolution adopted by majority vote. Selection of professional service contracts over $ 10,000 and below $20,000 is at the discretion of the Town Board, with consideration to Department Head recommendations. B. When the cost of the professional service is anticipated to exceed the amount of $20,000 in any given fiscal year, except as other wise provided herein, during the ordinary course of government business, written requests for proposals for a particular type of professional services shall be sent to at least three persons, firms or companies (hereinafter referred to as "professionals"). Department Heads shall prepare RFPs with available assistance from the Purchasing .gent, Budget Officer, Fiscal Manager, and Iegal staff. A copy of the RFP and a list of recipients shall be filed with the Purchasing Agent. A Town Board resolution is not needed for sending out RFPs. The Purchasing Agent and the Department Head shall submit their recommendations to the Town Board prior to awarding the contract to the selected proposer. Town Board approval by resolution is required to retain the service provider. C. Notwithstanding the foregoing, inasmuch as solicitation of proposals can sometimes result in duplication of effort, unnecessary costs, consumption of valuable time of Town staff and of professionals whom the Town may wish to again solicit from in the future, the following circumstances shall be grounds upon which the Town Board, in its sole discretion, may determine that the solicitation of proposals will not be in the best interest of the Torun. 1 . When, within the prior two years, the Town Board has engaged in the solicitation of proposals for a project that is substantially similar to the project currently under consideration by the Town Board for which professional services are determined to be needed. The Town Board's decision in this regard will be guided by whether the information from the previous Request for Proposals is available, whether three or more professionals were contacted, the types of responses received and the similarity of the projects. It shall be the sole discretion of the Town Board as to whether any previous Requests for Proposals are sufficient for the Town Board to make a determination as to which professional should be reta i ned. 2. When the Town Board, upon considering a) the professional's familiarity with the project, work, or Town records, b) the Town's experience and working relationship with the professional, c) the professional's specialized experience, d) the professional's creativity in performance, e) the Town and professional's personal trust and confidence, and/or 4 f) the reasonableness of the fee for professional services, desires to retain or continue the services of a particular professional which it has previously used in connection with the project being undertaken or continued, or a substantially similar project. 4) State Contract or Warren County Contract Pricing; "Piggybacking" NYS or- Warren County Contracting pricing should be used whenever it results in cost savings to the Town, given equal or better quality of the items purchased. For purchases over $5 ,000, an alternate price quote to State Contract Pricing should be obtained if at all possible to ensure the best price is obtained for goods purchased. The procedure described above in Section III(2) may also be followed for purchases of apparatus, materials, equipna.ent and supplies, and contract for services related to the installation, maintenance or repair of those items, under a Contract let by the United States or any agency thereof, any State or any other political subdivision or district, for amounts less than the State bidding limits_ 5) Blanket Purchase Orders If a Department Head, or the Purchasing Agent, expects to make multiple purchases which will likely total over $ 1 ,000 for the year, from a particular vendor for a particular type of item, then a Blanket Purchase Order should be issued for that vex'rdor and that type of item for the expected balance of purchases for the remainder of the year. 6) Leases, Rentals and Installment Purchase In general, leases, rentals and installment purchases follow the same purchasing guidelines as for other types of procurement covered by this manual A Purchase Order can be written for the estimated total dollar amount of the lease or rental for the balance of the calendar year. For leases or rentals which carry-over from one calendar year to the next, see the Town Purchasing Agent before entering into such agreements. V. EXCEPTIONS A. The following items are excepted from competitive bidding under NYS guidelines: 1) Emergencies. There are three basic statutory criteria to be met in order to fall within this exception. A) the situation arises out of an accident or other unforeseen occurrence or condition, and; B) the circumstances affect public buildings, public property or the life, health, 5 safety or property of the Town's residents, and; C) the situation requires immediate action which cannot await competitive bidding. 2) Agencies for the Blind and Other Severely Handicapped (See NYS OSC FMG, Subsection 8.3020). 3) Goods made in Correctional Institutions (See NYS OSC FMG, Subsection 8.3020). 4) State Contracts or Warren County Contracts 5) Professional Services (See NYS OSC FMG, Subsection 8.3020). 6) True Leases (See NYS OSC FMG, Subsection 9.3020). 7) Insurance (See NYS OSC FMG, Subsection 8.3020). 8) Section-Hand Equipment form father Governments (See NYS OSC FMG, Subsection 8-3020), B. Contracts with any State agency, including any department board, bureau, commission, division, office, council, committee, or officer of the State, whether permanent or temporary, or a public benefit corporation or public authority, an any unit of the State University of NY, pursuant to and consistent with Sections 355 and 6301 of the Education Law, within or without the Town of Queensbury, to ,provide water supply, sweeping or maintenance, sidewalk maintenance, drainage, sewage disposal, solid waste disposal or other services of government not regularly provided to the public as part of the general government services, may be entered into by direct negotiations and shall not be subject to the provisions of Section 103 of the GMI. nor the Policy set forth herein. Vt, RC UIR>CD STEPS FOR FOLLOWING THE PURCHASING PROCEDURES 1) Decide the category in which the dollar amount of the purchase belongs (see categories on page 3). 2) Make sure that sufficient appropriations exist in the current budget for each purchase before placing the order with the 'Vendor. 3) Obtain price quotes and obtain an approved Purchase Order, if applicable, before placing the order with the Vendor. 4) If applicable, request a Purchase Order from Purchasing Agent. 6 5) Receive Purchase order (if applicable) 6) When steps I through 5 are completed, then place the order with the Vendor. 7) Upon Receipt of Goods; Mark any packing slips as received, initial packing documents and set aside until invoice is received. S) Upon Receipt of Invoice: Match the invoice with packing documents and Purchase Orders and attach all documents to payment voucher. Forward voucher packets to Accounting Office once you entered batches into the system. Please note that all payment vouchers must be signed by the department head prior to being submitted to the Accounting Office. PIeaF,se note that copies of all quotes obtained in the procurement process must be attached to the voucher packet before forwarding them to the Accounting Department for processing. If you have any questions concerning the above policies, please contact the Town's Purchasing Agent or Budget Officer- Revised 1/I/202I 7 Appendix A - Uniform Guidance for Federal Awards Purpose. The Code of Federal Regulations (CFR) Title 2 Part 200 (subparts A-F) of the "Uniform Administrative: Requirements, Cost Principles, and Audit Requirements for Federal Awards" requires organizations receiving Federal awards to establish and maintain effective internal controls over Federal awards, This includes those instances where the Town of Queensbury (Town) is a sub-recipient of the state. General Policy Statement, The Town does not have a centralized grants department, therefore, it is the responsibility of each department obtaining a grant to be familiar with and follow all grant documents and requirements. For the purpose of this policy, "Program Director" shall apply to the individual(s) within a given Town Department who will be responsible for the grant. A list of the narue(s) of the Program Director(s) along with the corresponding grants that they oversee shall be supplied to the Town Supervisor. To comply with 2 CFR Part 200 (subparts A-F), the Town implements policies and procedures to include, but not be limited to, those contained herein. In addition, Appendix II to Para 200 - Contract Provisions for Non-Federal Entity Contracts under Federal Awards shall be applicable and is on file in the Accounting Department. §200.318 General Procurement Standards. A. The Town will use its own procurement procedures which reflect applicable State and Local Laws and Regulations, provided that the procurements conform to applicable Federal Law and Uniform Guidance. As such, Town procurements related to Federal grants will be subject to New York State General Municipal Law, the Town's Purchasing Policy and Uniform Guidance Requirements. B . The Program. Director within each Department shall maintain oversight to ensure that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders. C. No employee, officer or agent may participate in the selection, award, or administration of a contract supported by a Federal award if he/she has a real or apparent conflict of interest_ Such a conflict of interest would arise when the employee, officer or agent, any member of his/her immediate family, his/her partner, or an organization which employees or is about to ernploy any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for contract_ The officers, employees and agents of the Town may neither solicit nor accept gratuities, favors, or anything of monetary 8 value from contractors or parties to subcontracts. Standards for situations in which the financial interest is not substantial or the gift is an unsolicited item of nominal value shall be ,governed by the Town 's Code of Ethics. The Code of Ethics provides for enforcement actions to be applied for violations of such standards by officers, employees, or agents of the Town. D. The Town will avoid acquisition of unnecessary or duplicative items. Consideration should be given to consolidating or breaking out procurements to obtain a more economical purchase. Where appropriate, an analysis will be made of Iease versus purchase alternatives, and any appropriate analysis to determine the most economical approach. E. The Town may enter into state and local intermunicipal agreements, where appropriate, for procurement or use of common or shared ,goods and services. F. The Town may consider Federal excess and surplus property in lieu of purchasing new equipment and property whenever such use is feasible and reduces project costs. G. The Town may use value engineering clauses in contracts for construction projects of sufficient size to offer reasonable opportunities for cost reductions. Value engineering is a systematic and creative analysis of each contract item or task to ensure that its essential function is provided at the overall lower cost. H- The Town will only award contracts to responsible vendors and will document, in writing, such determination. To aid in the documentation process, the "Vendor Responsibility Questionnaire" shall be included in any competitive solicitations issued that will use Federal grant funding. §200.213 Suspension and debarment shall also apply: 1 . A contract award must not be made to parties listed on the government- wide exclusions in the System for Award Management (SAM), in accordance with OMB guidelines at 2 CFR 180 that implement Executive Orders 12549 and 12689 "Debarment and Suspension". 2. The Town will include a suspension/debarment clause within its "Standard Clauses for Federal Awards" requiring the vendor/contractor to certify that it is not suspended or debarred. The contract will also contain language requiring the vendor/contractor to notify the Government immediately upon becoming suspended or debarred. 3 . The Program Director within each Department shall be required to check the Vendor/Contractor's name through SAM to determine any exclusion. A copy of the SAM search shall be included with the contract 9 documentation. To register on the SAM website, use this link: httl)s://www.sarn/vgX/Rortal/S AM# I 4. If a Vendor/Contractor is found to be suspended or debarred, the Town will immediately cease to do business with the vendor. I. The Program Director within each Department shall maintain grant files. Documentation must include a significant history of the procurement, including the rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis of contract price. 3. The Town will only utilize time and material contracts when it has been determined that no other contract type is suitable. K. The Town must be responsible, in accordance with good administrative practice and sound business judgment for the settlement of all contractual and administrative issues arising out of procurements. These issues include, but are not limited to, source evaluation, protests, disputes, and claims. These standards do not relieve the Town of any contractual responsibilities under its contracts, The Federal awarding agency will not substitute its judgment for that of the Town unless the matter is primarily a Federal concern. Violations of law will be referred to the local, state, or federal authority having proper jurisdiction. §200.319 Competition. A. Procurements will provide for full and open competition as set forth in the Uniform Guidance, or State and local procurement policy/law, whichever is most restrictive. B. The Town 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_ §200.320 Methods of Procurement to be Followed. [See Appendix C Competitive Procurement Standards for further information that pertains to all cornpetitive solicitations.] Procurement by noncompetitive proposals is procurement through solicitation of a proposal from only one source and may be used only when one or more of the following circumstances apply: A. The item is available only from a single source. Documentation from the manufacturer must be provided to substantiate this. 10 Li. The public need or emergency for the requirement will not permit a delay resulting from competitive solicitation. This should not be the result of poor planning. C. The Federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the Town. U .After solicitation of a number of sources, competition is determined inadequate. §200.321 Contracting With Small and Minority Businesses, Woman-Owned Business Enterprises and Labor Surplus Area Firms. A. The Town shall take all necessary affirmative steps to assure that minority businesses, woman-owned bossiness enterprises, and labor surplus firms are used when possible. Steps to include! 1 . Placing qualified small and minority businesses and woman-owned business enterprises on solicitation lists; 2. Assuring that small and minority businesses and woman-owned business enterprises are solicited whenever they are potential sources; 3 . Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and woman-owned business enterprises; 4. .Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses and woman- owned business enterprises; and 5 . Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in paragraphs 1 -4 of this section. §200.323 Contract Cost and Price. The Town must perform a cost or price analysis in connection with every procurement action in excess of the Simplified Acquisition Threshold (as of December 2017 - $ 150,000) including contract modifications. The method and degree of analysis is dependent on the facts surrounding the particular procurement situation, but as a starting point, the Town will make independent estimates before receiving bids or proposals. Costs or prices based on estimated costs for contracts under the Federal award are allowable only to the extent that costs incurred or cost estimates inctuded in negotiated prices would be allowable for the Town under Subpart E - Cost Principles of this part. The cost plus percentage of cost and percentage of construction cost methods of contracting will not be used. 11 §200.324 Federal Awarding Agency or Pass-Through Entity Review. The Town shall make available, upon request of the Federal awarding agency or pass-through entity, technical specifications on ,proposed procurements where the Federal awarding agency or pass-through entity believes such review is needed. §200.325 Bonding Requirements. For construction or facility improvement contracts or subcontracts exceeding the Simplified Acquisition Threshold, the Town shall require: A. A bid ,guarantee from each bidder equivalent to 5% of the bid price; B, A performance bond on the part of the contractor for 100% of the contract price; and C. A payment bond on the part of the contractor for 100% of the contract price, §200.326 Contract Provisions. Town contracts under Federal awards shall contain the "Standard. Clauses for Federal Awards" in conformance with the provisions described in Appendix 11 to Part 200 - Contract Provisions for non-Federal Entity Contracts Under Federal Awards. Program Directors shall ensure that these clauses are included with any procurement contract that is part of a Federal award. 12