Glasgow Purchasing Guidelines ordinance (§ 145.060)

A. This policy establishes guidelines regulating the degree of formality to be followed in the purchase of goods and services, depending on the costs of the items to be purchased. The splitting of purchases into smaller orders to avoid these requirements is strictly prohibited. Good documentation and using extra caution to ensure that all vendors are treated fairly is in the City's best interest.

1. Small Purchase Procedures For Employees — Five Hundred Dollars ($500.00) Or Less.

a. Department heads shall designate employees who will be allowed to make purchases and to provide internal control procedures to ensure that all purchases are for legitimate public purposes and that purchases are accounted for. Department heads may place restrictions on employee's authority to purchase items.

2. Small Purchase Procedures For Department Heads — One Thousand Dollars ($1,000.00) Or Less.

a. Department heads are authorized to purchase directly from a vendor in the amount of one thousand dollars ($1,000.00) or less. Price comparisons should be made on a routine

basis to ensure the best value is obtained for each purchase.

3. Informal Purchase Procedures — One Thousand One Dollars ($1,001.00) To Ten Thousand Dollars ($10,000.00).

a. Department heads must obtain three (3) or more quotations for the goods or services required that will cost one thousand one dollars ($1,001.00) to ten thousand dollars ($10,000.00). Quotations can be done by 1 of 4 options: telephone, email, mail or fax. Bids received from vendors must be in written form and returned to the department by mail, fax or email. Informal written bids do not require formal advertising and a public notice of bid opening shall not be required. The Board of Aldermen will approve the purchase awarding it to the lowest, best responsible bidder. Under no circumstances shall the purchase of goods or services be divided into multiples in order to avoid the maximum limit of ten thousand dollars ($10,000.00).

4. Formal Bids — Purchases Ten Thousand Dollars ($10,000.00) And Above.

a. Department heads anticipating the purchase of goods or services exceeding ten thousand dollars ($10,000.00) in value shall prepare specifications based upon standards appropriate to meet the City's needs and following the formal bid process.

b. The award will normally be made to the lowest and best bidder meeting specifications. However, there may be instances when accepting the low bid is not in the best interest of the City. When such a situation arises, it is incumbent upon the department head to thoroughly document the reasons why the low bidder should be disqualified or not selected. The City reserves the right to select a vendor based upon past service and experience with the vendor.

5. Formal Bid Process.

a. Upon the approval of the Board of Aldermen, the City Clerk with the department head's approval will prepare and send the bid package consisting of an invitation to bid, specifications, and bid form to qualified vendors.

b. The City Clerk will prepare the bid notice and publish it in a local newspaper. All bid notices shall explicitly indicate that the City reserves the right to accept or reject any bid when it is determined in the best interest of the City to do so. All bids shall be sealed and filed with the City Clerk at or prior to the time on the date stated in the notice. Formal bids will only be accepted in a sealed envelope or package. Formal bids will not be accepted by fax, email or any other electronic means except in extreme circumstances.

c. All bids shall be opened at the specified time designated on the date stated in the bid notice and shall be publicly read by the Mayor or his/her designee. Any bids arriving after the designated bid opening day and time will be noted and the bid will remain unopened. The department from which the bid invitation was issued will be responsible to have one person from that department attend the bid opening to witness and record the bids as they are opened and read. The City Clerk will prepare a written tabulation of all bids.

6. Bid Evaluation Process. Initial evaluation of bids received, whether oral or written, shall be conducted by the Board of Aldermen who shall:

a. Determine acceptability of bids received. Examine the ability, capacity and skill of the bidder to perform the contract or provide the service required;

b. Review the quality of performance of previous contracts or services;

c. Verify bid bond included (if required);

d. Verify required information, i.e., literature, samples, etc., provided;

e. Determine lowest and best bid meeting specifications;

f. Determine the ability of the bidder to provide future maintenance and service for the use of the contract subject.