Chapter 3.25
PROCUREMENT POLICY
Sections:
3.25.02 Procurement procedures.
3.25.01 Purpose.
This policy is adopted to specify the procedures to be followed in the procurement of contracts, as well as goods and services, for the City of Baxter Springs. All procurements, regardless of the dollar amount, will be conducted to make the best use of city funds. The City of Baxter Springs reserves the right to give priority to locally owned businesses. (Ord. 811 § 1)
3.25.02 Procurement procedures.
If federal funds are used to pay for a product or service, or any part thereof, then federal procurement procedures apply unless this procurement policy is stricter. If federal funds are not used for any part of a contract, the procedures outlined in this policy will apply. This procurement policy is intended to describe how services or supplies are to be obtained. The general intent of this policy is to ensure that:
(a) Procurements will be reviewed to avoid unnecessary and duplicate purchases and to ensure costs are reasonable.
(b) Requests for proposals are to be clearly written to describe the technical requirements of the equipment or services.
(c) Positive effort will be made to use small, minority and/or female-owned businesses, but priority can be given to locally owned businesses.
(d) The method of contracting (fixed price, cost plus fixed fee, purchase orders, etc.) should be appropriate. Cost plus percent of cost contracts are specifically prohibited. (Ord. 811 § 2)
3.25.03 Procurement methods.
Five methods of procurement are allowed: small purchases, request for proposals, competitive negotiations, noncompetitive negotiations and emergency purchases:
(a) Small Purchases. Small purchases is a relatively simple and informal method used where goods or services do not cost in the aggregate more than $2,500.
(1) If the cost of the good or service is $2,500 or less, city staff is authorized to make the purchase, giving priority to locally owned businesses. “City staff” is defined as mayor, city clerk, chief of police, department supervisors and public works director. The city council reserves the right to refuse payment on any purchases made by city staff.
(2) If the cost of the good or service is more than $2,500 the city council must approve the expenditure in advance. The city council then authorizes city staff to obtain the most reasonable price with priority given to locally owned businesses.
(3) If the procurement involves professional services to be performed, preparation and signing of a contract formalizing a scope of work and the terms of compensation is required.
(b) Request for Proposal (RFP). Competitive sealed RFPs are initiated by either contacting a minimum of two sources or publishing a request for proposal (RFP) in the official city newspaper when the cost is estimated to be over $2,500 when applicable.
(1) All RFPs must be submitted in writing with description of goods or services to be purchased.
(2) Preparation and signing of a contract or purchase order formalizing a scope of work and the terms of compensation is required.
(c) Competitive Negotiations. Competitive negotiations are initiated by publishing a request for proposals (RFP) or a request for qualifications (RFQ). Although publishing is not required, it may be used if an adequate number of service providers are available in the circulation area. All qualified firms in the area should be notified. The RFP is used when price is a factor in selection; the RFQ is used when price is considered after selection (generally for architectural services or engineering services).
(1) In both the RFP and RFQ, the services to be procured are clearly defined, as are the factors to be used in evaluation and selection.
(2) All proposals received are to be reviewed according to the written criteria given to prospective bidders.
(3) For RFQs, an invitation is made to one or more respondents to negotiate a price or fee.
(4) For both RFPs and RFQS, selection is made on the basis of the most responsible offer or price and other factors considered.
(5) Preparation and signing of a contract formalizing a scope of work and the terms of compensation is required.
(d) Noncompetitive Negotiations. Noncompetitive negotiations can be used only when (1) the use of competitive negotiations is not feasible, such as only one supplier, (2) there is some public emergency, or (3) the results of the competitive negotiations are inadequate.
(1) Negotiations are conducted with the selected company regarding a scope of work and price.
(2) Preparation and signing of a contract formalizing a scope of work and the terms of compensation is required.
(e) Emergency Purchases. In the case of a vital service that is provided to the public becomes inoperative or threatened, the department supervisor, city clerk, chief of police or public works director is authorized to make necessary procurement upon obtaining a not to exceed cost and approval of the mayor. (Ord. 811 § 3)
3.25.04 Procurement files.
A separate file will be maintained for each procurement in excess of $2,500. All files should include copies of advertisements if applicable, a list of notified firms, a copy of the RFP/RFQ, a list of where bid packages were sent if applicable, copies of all bids or proposals received, and a written review of the proposals that includes cost data and the reasons for selection. If a contract is noncompetitively negotiated, the file should include justification for negotiation. All unsuccessful bidders will be notified in writing, and files should contain copies of letters to that effect. (Ord. 811 § 4)