Chapter 3.05
PURCHASING
Sections:
Article I. Public Purchasing Code
3.05.040 Establishment of rules and policies.
3.05.050 Duties and responsibilities of purchasing agents.
3.05.060 Rules regarding purchasing of materials and supplies.
3.05.065 Special purchasing methods and special purchases.
3.05.070 Rules regarding the modification and termination of contracts.
3.05.080 Reverse auction procedures.
3.05.090 Rules regarding the purchase of services.
Article II. Nepotism Rules Regarding Contracts
3.05.110 Special requirements for contracts involving relatives.
3.05.120 Annual certification by elected officers.
Article I. Public Purchasing Code
3.05.010 Title.
This chapter shall be known as the “public purchasing code” and shall be carried out supplementary to and consistent with the provisions of the Indiana Public Purchase Law, codified as IC 5-22 et seq. [Ord. 1089, 1998. Code 2000 § 31.15].
3.05.020 Definitions.
For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
“Adjusted offer” means the offer price of an offeror for preferred supplies as determined under IC 5-22-15-10.
“Change order” means a written order that:
(A) Is signed by the purchasing agent; and
(B) Directs the contractor to make changes that the contract authorizes the purchasing agent to order without the consent of the contractor.
“Contract modification” means a written alteration:
(A) In a specification, delivery point, rate of delivery, period of performance, price, quantity, or another provision of a contract; and
(B) Accomplished by mutual action of the parties to the contract.
“Contractor” means a person who has a contract with a governmental body.
“Cost reimbursement contract” means a contract that entitles a contractor to receive:
(A) Reimbursement for costs that are allowable and allocable in accordance with the contract terms and the provisions of this chapter; and
(B) A fee, if any.
“Data” means recorded information, regardless of its form or characteristics.
Data Processing. This term has the meaning set forth in IC 4-23-16-5(a).
“Designee” means an authorized representative.
“Established catalog price” means the price included in a catalog, price list, schedule, or other form that:
(A) Is regularly maintained by the manufacturer or contractor;
(B) Is either published or otherwise available for inspection by customers; and
(C) States prices at which sales are currently or were last made to a significant number of any category of buyers, or buyers constituting the general buying public, for the supplies or services involved.
“Gift” means a bequest, cooperative agreement, and grant.
“Governmental body” means an agency, a board, a branch, a bureau, a commission, a council, a department, an institution, an office, or another establishment of a political subdivision.
“Invitation for bids” means all documents, whether attached or incorporated by reference, used for soliciting bids.
“Offer” means a response to a solicitation. The term includes a bid, proposals and quote.
“Offeror” means a person that submits an offer to a governmental body.
“Operating agreement” has the meaning set forth in IC 5-23-2-7.
“Person” means an association, a business, a committee, a corporation, a fiduciary, an individual, a joint stock company, a joint venture, a limited liability company, a partnership, a sole proprietorship, a trust, or another legal entity, organization or group of individuals.
“Petroleum products,” for purposes of IC 5-22-17-10 and this purchasing code, includes:
(A) Gasoline;
(B) Fuel oils;
(C) Lubricants; and
(D) Liquid asphalt.
“Policy” means a governmental body’s or purchasing agency’s written statement of purchasing procedure or substantive purchasing purposes that does not have the force and effect of law.
“Political subdivision” has the meaning set forth in IC 36-1-2-13.
“Professional” means, for the purposes of 50 IAC 11:
(A) A person who performs the services of:
(1) Accountant;
(2) Architect;
(3) Attorney;
(4) Construction manager;
(5) Engineer;
(6) Financial advisor;
(7) Project administrator;
(8) Project manager;
(9) Tax analyst; or
(10) Other person who provides consulting services.
(B) But not a person who performs the services of:
(1) Underwriter;
(2) Investment banker; or
(3) Real estate broker or salesperson.
“Public funds” means money derived from the revenue sources of the governmental body and deposited into the general or a special fund of the governmental body. “Public funds” does not include either of the following:
(A) Money received by any person managing or operating a public facility under an authorized operating agreement under IC 5-23.
(B) Proceeds of bonds payable exclusively by a private entity.
“Purchase” means buy, procure, rent, lease, or otherwise acquire. The term includes the following activities:
(A) Description of requirements.
(B) Solicitation or selection of sources.
(C) Preparation and award of contract.
(D) All phases of contract administration.
(E) All functions that pertain to purchasing.
“Purchase description” means the words used in a solicitation to describe the supplies or services to be purchased. The term includes specifications attached to, or made a part of, the solicitation.
“Purchasing agency” means a governmental body that is authorized to enter into contracts by this chapter, rules adopted under this chapter, or by another law.
“Purchasing agent” means an individual authorized by a purchasing agency to act as an agent for the purchasing agency in the administration of the duties of the purchasing agency.
“Request for proposals” or “rfp” means all documents, whether attached or incorporated by reference, used for soliciting proposals.
“Rule” means an order, an ordinance, a resolution, or another procedure by which the governmental body is authorized by law to adopt a policy that has the force and effect of law.
“Services” means the furnishing of labor, time, or effort by a person, not involving the delivery of specific supplies other than printed documents or other items that are merely incidental to the required performance.
“Small business” means a business that is independently owned and operated; is not dominant in its field of operation; and satisfies the criteria established in the purchasing code or in any rules of the municipal purchasing agencies.
“Small business set-aside” means a purchase in which the solicitation states that offers will be accepted only from small businesses.
“Social services” means services obtained from funds covered by IC 12-13-10.
“Solicitation” means the procedure by which a governmental body invites persons to submit an offer to enter into a contract with the governmental body for the purchase or sale of supplies by the governmental body. The term includes an invitation for bids, a request for proposals, and a request for quotes.
“Special fund,” as used with respect to the state, means a dedicated fund.
“Special purchase” refers to a purchase authorized under IC 5-22-10.
“Specification” means a description of the physical or functional characteristics of a supply or service or the nature of a supply or service. The term includes a description of any requirements for inspecting, testing, or preparing a supply or service for delivery.
“State agency” has the meaning set forth in IC 4-13-1-1.
“State educational institution” has the meaning set forth in IC 20-12-0.5-1.
“Supplies” means any property. The term includes equipment, goods, and materials. The term does not include an interest in real property.
“Using agency” means a governmental body that uses supplies or services purchased under this chapter. [Ord. 1089, 1998. Code 2000 § 31.16].
3.05.030 Purchasing agencies.
(A) The town council, as the works board of the municipality, shall serve as purchasing agency for the municipality and its executive departments except for those executive departments which are expressly subject to the purchasing authority of a relevant governing board of jurisdiction. The departments subject to the jurisdiction of the works board include any department that is not otherwise subject to another board of jurisdiction and the following:
(1) Public works department (agency);
(2) Metropolitan police department;
(3) Fire department;
(4) Information technology communications department;
(5) Office of the town council;
(6) Office of the clerk-treasurer.
(B) The town council, as works board of the unit, may act in the stead of the board of directors of the waterworks and the board of sanitary commissioners when any purchase involves materials or supplies that will be purchased at a shared cost or will be jointly used by the civil government and the utilities. In such cases, the purchasing agent should communicate any agency action to the other affected agencies for concurrence and ratification by the boards of jurisdiction.
(C) The park and recreation board shall serve as purchasing agency for the parks and recreation department and its special taxing district.
(D) The board of waterworks directors shall serve as purchasing agency for the waterworks department, its special taxing district and utility.
(E) The board of sanitary commissioners shall serve as purchasing agency for the public sanitation department, its special taxing district and utility.
(F) The redevelopment commission shall serve as purchasing agency for the redevelopment department and its special taxing district.
(G) The plan commission shall serve as the purchasing agency for the building and inspection department. [Ord. 1518 § 1, 2012; Ord. 1593 §§ 1, 2, 2015; Ord. 1739 § 2, 2021. Code 2000 § 31.17].
3.05.040 Establishment of rules and policies.
(A) The purchasing agencies of the municipality shall have the authority to establish written rules or policies regarding purchases of materials and supplies which are not otherwise already provided by ordinance and which the agency deems to be in the best interests of the municipality and the public.
(B) Such written rules or policies regarding public purchases may provide for the limited delegation of authority to the purchasing agent or some other party, the authority to make policies of a ministerial nature and the authority to carry out certain duties on behalf of the purchasing agency which are of a ministerial nature.
(C) No rule or policy shall be enacted which permits a purchasing agent to enter into or execute any leases or rental agreements of greater than one year in duration, any leases with option to purchase of any duration, any capital leases of any duration, or any single contract for supplies or services of any term which exceeds purchasing value limits set forth in this chapter without the express approval of the purchasing agency.
(D) The town council shall have exclusive authority to approve purchases involving insurance of any type or term, except where ordinances of the unit otherwise permit. No rule may be made in conflict with this provision.
(E) No purchase described in this chapter can be made without an approved appropriation, sufficient resources or budgetary authority.
(F) Any written rules or policies regarding purchases in conflict with or contrary to laws of the state or ordinances of the municipality are null and void and unenforceable. [Ord. 1089, 1998; Ord. 1089-A, 1998; Ord. 1579 § 1, 2015. Code 2000 § 31.18].
3.05.050 Duties and responsibilities of purchasing agents.
(A) The purchasing agents for the municipality shall act pursuant to the provisions of IC 5-22, this code and any rules or policies of the purchasing agency not in conflict with the public purchase statute or ordinances of the municipality.
(B) Subject to the provisions of HMC 3.05.040, purchasing agents for the municipality are authorized to enter into agreements in support of the following types of purchases without additional approval of the purchasing agencies:
(1) Leases or rental agreements which are one year or less in duration and which do not exceed $15,000 in value;
(2) Contracts for supplies which are one year or less in duration and which do not exceed $15,000 in value;
(3) Except as provided in subsection (B)(4) of this section, contracts for services which are one year or less in duration and which do not exceed $15,000 in value;
(4) Contracts for services related to financial reporting which do not exceed $40,000;
(5) Contracts for the renewing of software licenses and which do not exceed $35,000, provided the original licensing and installation agreement was approved by the proper purchasing authority;
(6) Nothing in this subsection shall be construed in derogation of or in limitation to the exercise of powers and duties of the municipal fiscal officer expressly conferred under IC 5-11, 5-13, and 36-5.
(C) In addition to the foregoing, purchasing agents shall:
(1) Receive requisitions of materials from their respective departments or offices and, upon their receipt, determine that appropriations are available for such purposes, and acquire the items requisitioned in accordance with the public purchase law and this code. All contracts of purchase shall be made in the municipal department, division or office and be subject to the approval of the department or office.
(2) Establish such purchasing and contractual procedures as may best be suited to obtain the optimal economic value to the municipality.
(3) Prepare specifications and notices and see that the required notices are published where bidding and publication of notices are required by law.
(4) Cooperate and consult with the municipal fiscal officer for the purpose of ensuring that adequate funds are available prior to making the necessary purchases and acquisitions to assure they are within the limits of the budget appropriations of the department or division in need of the material.
(5) Act when required to sell or exchange any personal property ordered to be sold by a municipal department or office in accordance with procedures prescribed by law.
(D) The following persons shall serve as purchasing agents for the department or office indicated:
(1) The public works director or his/her designee for the public works department.
(2) The police chief or his/her designee for the metropolitan police department.
(3) The building commissioner/chief inspector or his/her designee for the building and inspection department.
(4) The fire chief or his/her designee for the fire department.
(5) The redevelopment director or his/her designee for the redevelopment department.
(6) The public works director as waterworks superintendent or his/her designee for the waterworks department.
(7) The public works director as wastewater (sewage works) superintendent or his/her designee for the public sanitation department.
(8) The parks and recreation superintendent or his/her designee for the parks and recreation department.
(9) The director of information technology or his/her designee for the information technology communications department.
(10) The clerk-treasurer or his/her designee for the office of the clerk-treasurer, for any department or office for which an agent is not otherwise expressly provided, and for all executive departments of the municipality. [Ord. 1518 § 2, 2012; Ord. 1579 § 2, 2015; Ord. 1739 § 3, 2021. Code 2000 § 31.19].
3.05.060 Rules regarding purchasing of materials and supplies.
(A) Rules Regarding Offers – Status of Documents as Public Records.
(1) 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.
(2) 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.
(3) Public Records Status of Bids. Bids submitted in response to an invitation for bids must be available for public inspection and copying after the time of the bid opening.
(4) 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 available for public inspection and copying. Proposals may not be disclosed.
(B) Rules Regarding Offers – 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.
(C) Rules Regarding Offers – Delay of Opening of Offers. When the purchasing agency makes a written determination that it is in the municipality’s best interest, 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.
(D) Rules Regarding Evidences of Financial Responsibility.
(1) Purchases Less Than $50,000. The purchasing agent may not require evidence of financial responsibility when the estimated cost of a purchase is less than $50,000.
(2) Purchases Between $50,000 and $150,000. 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 percent of the estimated cost of the purchase.
(3) Purchases Over $150,000. The solicitation shall include a requirement that an offeror provide evidence of financial responsibility and must indicate the kind of evidence that will be acceptable. If a bond or certified check is required, it may not exceed 10 percent of the estimated cost of the purchase.
(4) Small Business Set-Asides. The purchasing agent may determine that no evidence of financial responsibility shall be required for a small business set-aside purchase.
(E) Purchase of Supplies Manufactured in the United States. Supplies manufactured in the United States shall be specified for all municipal purchases and shall be purchased unless the municipality determines that:
(1) The supplies are not manufactured in the United States in reasonably available quantities;
(2) The prices of the supplies manufactured in the United States exceed by an unreasonable amount the price of available and comparable supplies manufactured elsewhere;
(3) The quality of the supplies manufactured in the United States is substantially less than the quality of comparably priced available supplies manufactured elsewhere;
(4) The purchase of supplies manufactured in the United States is not in the public interest.
(F) Use of quotes for purchases of materials and supplies valued at least at $50,000 and not more than $150,000.
(1) If a purchasing agent expects the purchase to be at least $50,000 and not more than $150,000, the purchasing agent may purchase supplies by inviting quotes from at least three persons known to deal in the lines or classes of supplies to be purchased.
(2) The purchasing agent shall mail an invitation to quote at least seven days before the time fixed for receiving quotes.
(3) If the purchasing agent receives a satisfactory quote, the purchasing agent shall award a contract to the lowest responsible and responsive offeror for each line or class of supplies required.
(4) The purchasing agent may reject all quotes.
(5) If the purchasing agent does not receive a quote from a responsible and responsive offeror, the purchasing agent may purchase the supplies under provisions of IC 5-22-10-10.
(G) Small Purchases Valued at Less Than $50,000. If a purchasing agent expects the purchase to be less than $50,000, the purchasing agent may purchase supplies either:
(1) By inviting quotes from at least three persons known to deal in the lines or classes of supplies to be purchased; or
(2) By purchase in the open market without inviting or receiving quotes.
(H) Purchases Valued at More Than $150,000.
(1) A purchasing agent shall follow the procedure described in this subsection in awarding a contract for supplies, unless another purchasing method is required or authorized by law.
(2) A purchasing agent shall issue an invitation for bids. An invitation for bids must include a purchase description; all contractual terms and conditions that apply to the purchase; and a statement of the evaluation criteria that will be used, including any of the following:
(a) Inspection.
(b) Testing.
(c) Quality.
(d) Workmanship.
(e) Delivery.
(f) Suitability for a particular purpose.
(g) The requirement imposed under IC 5-22-3-5.
(h) The time and place for opening the bids.
(i) A statement concerning whether the bid must be accompanied by a certified check or other evidence of financial responsibility that may be imposed in accordance with rules or policies of the governmental body.
(j) A statement concerning the conditions under which a bid may be canceled or rejected in whole or in part as specified under IC 5-22-18-2.
(3) Evaluation criteria that will affect the bid price and be considered in the evaluation for an award must be objectively measurable.
(4) Only criteria specified in the invitation for bids may be used in bid evaluation.
(5) The purchasing agency shall give notice of the invitation for bids in the manner required by IC 5-3-1.
(6) The purchasing agency shall open bids publicly in the presence of one or more witnesses at the time and place designated in the invitation for bids.
(7) Bids must be:
(a) Unconditionally accepted without alteration or correction, except as provided in IC 5-22-7-11 through 5-22-7-13; and
(b) Evaluated based on the requirements provided in the invitation for bids.
(8) A contract must be awarded with reasonable promptness by written notice to the lowest responsible and responsive bidder.
(9) The purchasing agency shall maintain the following information which is subject to public inspection after each contract award:
(a) The name of each bidder;
(b) The amount of each bid;
(c) Other information required by IC 5-22, and ordinances and rules adopted pursuant to IC 5-22.
(10) The governmental body may adopt rules or establish policies to allow any of the following:
(a) Correction or withdrawal of inadvertently erroneous bids before or after award.
(b) Cancellation of awards or contracts based on a mistake described in subsection (H)(10)(a) of this section.
(11) Except as provided in a rule or policy, a purchasing agency must make a written decision to permit the correction or withdrawal of a bid, or cancel awards or contracts based on bid mistakes.
(12) After bid opening, a purchasing agency may not permit changes in bid prices; or other provisions of bids prejudicial to the interest of the governmental body or fair competition.
(13) If a bidder inserts contract terms or bids on items not specified in the invitation for bids, the purchasing agent shall treat the additional material as a proposal for addition to the contract and may do any of the following:
(a) Declare the bidder nonresponsive;
(b) Permit the bidder to withdraw the proposed additions to the contract in order to meet the requirements and criteria provided in the invitation for bids;
(c) Accept any of the proposed additions to the contract, subject to this subsection.
(14) The purchasing agent may not accept proposed additions to the contract that are prejudicial to the interest of the governmental body or fair competition. Further, a decision of the purchasing agent to permit a change to the requirements of the invitation for bids must be supported by a written determination by the purchasing agency.
(I) Repealed by Ord. 1579. [Ord. 1089, 1998; Ord. 1518 § 3, 2012; Ord. 1579 § 3, 2015. Code 2000 § 31.20].
3.05.065 Special purchasing methods and special purchases.
(A) Notwithstanding any other provision of this chapter, a purchasing agent may make a purchase under this section without soliciting bids or proposals. Purchases authorized under this section shall be known as special purchases and must comply with the provisions of this section and IC 5-22-10.
(B) A special purchase must be made with competition as is practicable under the circumstances.
(C) A purchasing agent shall maintain the contract records for a special purchase in a separate file. A purchasing agent shall include in the contract file a written determination of the basis for the special purchase and the selection of a particular contractor.
(D) Notwithstanding any other law, a governmental body shall maintain a record listing all contracts made under this chapter for a minimum of five years. The record must contain the following information:
(1) Each contractor’s name.
(2) The amount and type of each contract.
(3) A description of the supplies purchased under each contract.
(E) A purchasing agent may make a special purchase when there exists, under emergency conditions, a threat to public health, welfare, or safety.
(F) A purchasing agent may make a special purchase when there exists a unique opportunity to obtain supplies or services at a substantial savings to the governmental body.
(G) A purchasing agent may make a special purchase at an auction.
(H) A purchasing agent may make a special purchase of data processing contracts or license agreements for software programs, or supplies or services, when only one source meets the using agency’s reasonable requirements.
(I) A purchasing agent may make a special purchase when: (1) the compatibility of equipment, accessories, or replacement parts is a substantial consideration in the purchase; and (2) only one source meets the using agency’s reasonable requirements.
(J) A purchasing agent may make a special purchase when purchase of the required supplies or services under another purchasing method under this chapter would seriously impair the functioning of the using agency.
(K) A purchasing agent may make a special purchase when the purchasing agency has solicited for a purchase under another purchasing method described in this chapter and has not received a responsive offer.
(L) A purchasing agent may make a special purchase for the evaluation of supplies or a system containing supplies for any one of the following reasons:
(1) To obtain functional information or comparative data; or
(2) For a purpose that in the judgment of the purchasing agent may advance the long-term competitive position of the governmental body.
(M) A purchasing agent may make a special purchase when the market structure is based on price but the governmental body is able to receive a dollar or percentage discount of the established price.
(N) Subject to subsection (O), (P), or (Q) of this section, a purchasing agent may award a contract for a supply when there is only one source for the supply and the purchasing agent determines in writing that there is only one source for the supply.
(O) A purchasing agent may make a purchase from a person when the purchasing agent determines in writing that: Supplies can be purchased from the person or the person’s authorized representative at prices equal to or less than the prices stipulated in current federal supply service schedules established by the federal General Services Administration; and it is advantageous to the governmental body’s interest in efficiency and economy.
(P) A purchasing agent may purchase supplies if the purchase is made from a person who has a contract with a federal agency and the person’s contract with the federal agency requires the person to make the supplies available to the state or political subdivisions.
(Q) A purchasing agent for a political subdivision may purchase supplies if the purchase is made from a person who has a contract with a state agency and the person’s contract with the state requires the person to make the supplies or services available to political subdivisions, as provided in IC 4-13-1.6 or 5-22-17-9.
(R) Subject to subsection (S) of this section, a purchasing agent may acquire supplies if the purchasing agent determines that the governmental body can obtain the transfer of the supplies from the federal government under IC 4-13-1.7 at a cost less than would be obtained from purchase of the supplies by soliciting for bids or proposals.
(S) A governmental body may not make a purchase under subsection (R) of this section if title to the property will be transferred to the governmental body before a sufficient appropriation to pay the costs of the purchase is appropriated. However, if the supplies will be transferred to the governmental body upon conditional sale or under a lease, a lease with option to purchase, or a contract for the use of the supplies, the governmental body may make the purchase under this subsection if there are sufficient funds appropriated to pay the consideration required for one year of the agreement.
(T) A purchasing agent who purchases or leases surplus federal materials shall, at the time of the purchase or lease, or immediately thereafter, give public notice in accordance with IC 5-3-1.
(U) A purchasing agent may acquire supplies by accepting a gift for the purchasing agent’s governmental body.
(V) A purchasing agent may make a special purchase from a public utility if the purchase or lease price is a negotiated price that considers the results of an independent appraisal that the purchasing agency obtains and an independent appraisal that the public utility obtains. [Ord. 1579 § 3, 2015].
3.05.070 Rules regarding the modification and termination of contracts.
(A) Price Adjustments. The purchasing agent may include provisions to permit price adjustments in a purchase contract. The following provisions 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 attributed 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 (purchasing agency) 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 (purchasing agency) in accordance with applicable rules adopted by the governmental body (purchasing agency).
(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 Right of Highland through Its Purchasing Agencies. The purchasing agent may include in a purchase contract provisions dealing with the unilateral right of the purchasing agency 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 in a purchase contract provisions dealing with variations between the estimated quantities of work in a contract and the actual quantity delivered. [Ord. 1089, 1998. Code 2000 § 31.21].
3.05.080 Reverse auction procedures.
(A) Use of Third Party to Conduct Reverse Auctions.
(1) The purchasing agency is authorized to use a third party to conduct reverse auction on behalf of the town for the purchase of supplies. The purchasing agent is authorized to select the third party that will conduct the reverse auction, who must have prior experience in conducting reverse auctions on behalf of local governments.
(2) The purchasing agent shall obtain a copy of the procedures established by the third party to conduct the reverse auction on behalf of the town and present those procedures to the board for adoption and inclusion in its applicable procedures prior to participating in a reverse auction conducted by the third party.
(B) Transmission of Notices, Solicitations and Specifications.
(1) Notices. The board shall give notice of a reverse auction by:
(a) Publishing notice of the invitation to bid two times, at least one week apart, with the second publication at least seven days before the commencement of the reverse auction in accordance with IC 5-22-7-5, 5-22-18 and 5-3-1;
(b) Posting the invitation to bid on the town’s website; and
(c) If a third party is conducting the reverse auction on behalf of the purchasing agency by posting, or permitting to have posted, the invitation to bid on the third party’s website.
(Note: Posting the invitation to bid on a website requires compliance with IC 5-22-3-4.)
(Note: The board may also give notice of a reverse auction by electronic mail or faxes.)
(2) Solicitations and Specifications. The board shall transmit solicitations and specifications:
(a) In accordance with the invitation to bid, identifying a designated location where, during regular business hours, the invitation to bid may be inspected and copied or copies may be obtained; and
(b) By making them available on the town’s website or providing information on the website identifying a designated location where, during regular business hours, the invitation to bid may be inspected and copied or copies may be obtained; and
(c) If a third party is conducting the reverse auction on behalf of the purchasing agency, making them available on the third party’s website.
(Note: Posting the invitation to bid on a website requires compliance with IC 5-22-3-4.)
(C) Prequalification of Bidders.
(1) All bidders desiring to participate in a reverse auction must be prequalified by submitting materials to ensure that they meet the specifications identified by the buyer as to the types of supplies to be offered for purchase no later than 24 hours prior to the time for the commencement of the reverse auction, as provided in the invitation to bid.
(2) The prequalification process shall be used to determine whether the bidder is responsible and responsive, as provided in the Act, whether there is any bidding or purchasing preference or preferences applicable to a particular bidder, and whether the bidder has submitted evidence of financial responsibility, as required by the purchasing agency. In order to assist the board in prequalifying bidders, the bidder must submit, in accordance with the invitation to bid, all documentation and other information relating to the supplies being offered for purchase, except for price, and any other information that may assist the board in making its determination. Such documentation will include evidence of financial responsibility or a certified check, as specified in the invitation to bid.
(3) In determining whether a bidder is responsible, the purchasing agent may consider the following factors:
(a) The ability and capacity of the bidder to provide the supplies;
(b) The integrity, character, and reputation of the bidder;
(c) The competency and experience of the bidder.
(4) In determining whether a bidder is responsive, a purchasing agent may consider the following factors:
(a) Whether the bidder has submitted information demonstrating that his offer for supplies conforms in all material respects to the specifications.
(b) Whether the bidder has submitted documentation that complies specifically with the solicitation and the instructions to bidders.
(c) Whether the bidder has complied with all applicable statutes, ordinances, resolutions, or rules pertaining to the award of a public contract.
(5) The determination that a bidder is not responsive or not responsible must be made in writing.
(6) Prequalification of bidders must be done by the purchasing agent or an authorized representative of the purchasing agency in the presence of one or more witnesses and must be completed no later than 24 hours prior to the commencement of the reverse auction bidding period.
(7) The board shall notify any bidder determined to be not prequalified in writing, by facsimile, or electronic mail (as requested by the bidder) and shall exclude the bidder so notified from participation in the reverse auction.
(8) The board’s determination that a bidder is not prequalified is limited to the reverse auction for which the request for prequalification was received.
(D) Contents of Invitation to Bid. The invitation to bid must include all of the following:
(1) A purchase description.
(2) A statement that bids will be accepted by means of a reverse auction process.
(3) A description of all contractual terms and conditions that apply to the purchase, including the requirement of a noncollusion affirmation by the successful bidder.
(4) The criteria that will be used by the purchasing agency to prequalify bidders to determine whether a bidder is responsive and responsible.
(5) The information and other documentation required to be submitted for prequalification, including a certified check or other evidence of financial responsibility.
(6) The location and manner in which bidders must submit information for prequalification, the deadline for submission of such information, and the deadline by which the board will determine whether a bidder is prequalified.
(7) The location, including any websites, at which the invitation to bid may be inspected and copied or copies may be obtained, including, if a third party is conducting the reverse auction, the procedures to be used by the third party to conduction the reverse auction.
(8) A statement as to whether a third party is conducting the reverse auction on behalf of the town.
(9) A statement that offers submitted by prequalified bidders will only be received through the town’s secure website or, if a third party is conducting the reverse auction on behalf of the town, through the third party’s secure website.
(10) The date and time at which the reverse auction bidding period will commence and the approximate length of time for which the reverse auction will be conducted, allowing automatic extensions based upon resulting competitive activity.
(11) The deadline by which prequalified bidders must submit an initial price to a secure website for the purposes of establishing a bidder’s participation and initial ranking at the commencement of the reverse auction bidding period.
(12) A statement explaining that the bidding period during which the reverse auction is conducted may be extended based upon competitive activity, at predetermined periods determined by the purchasing agency.
(13) A statement identifying the circumstances under which the reverse auction may be postponed, paused, rescheduled, or cancelled.
(14) The place and approximate time at which, following the close of the bidding period, offers will be reviewed publicly by an authorized representative of the purchasing agency in the presence of one or more witnesses.
(15) A statement that the third party conducting the auction on behalf of the town will collect a service charge from the successful bidder for its participation in the reverse auction.
(16) The name, address, and telephone number of a representative of the purchasing agency who can provide additional information related to the reverse auction.
(17) If a third party is conducting the auction on behalf of the town, the name, address, and telephone number of a representative of the third party who can provide additional information related to the reverse auction, including the mandatory training required of all prequalified bidders as a condition of participating in the reverse auction.
(18) The conditions under which the invitation to bid may be cancelled or postponed in accordance with IC 5-22-18-1.
(E) Receiving Offers.
(1) The board shall receive offers only from bidders who have been prequalified, in accordance with the invitation to bid.
(2) If a third party conducts the reverse auction on behalf of the town, all prequalified bidders must receive training provided by the third party in order to participate in the reverse auction.
(3) Prior to receiving electronic offers, the board must find that: (a) the invitation for bid for the reverse auction indicates the procedure for transmitting the electronic offer; and (b) the electronic system on which the offer is received has a security feature that protects the content of an electronic offer with the same degree of protection as the content of an offer that is not transmitted by electronic means.
(4) In accordance with the invitation to bid, offers submitted by prequalified bidders will only be received:
(a) Through the town’s secure website; or
(b) If a third party is conducting the reverse auction on behalf of the town, through the third party’s secure website.
(F) Reverse Auction Bidding Period.
(1) For each reverse auction, the purchasing agent must establish an initial bidding period during which bidders may submit prices for which the supplies being offered may be purchased. The initial bidding period shall not be less than one hour. The purchasing agent may automatically extend the reverse auction bidding period for additional predetermined periods based upon competitive activity.
(2) During the bidding period for the reverse auction, information available for public display is limited to the ranking, price and name of bidders of each price bid relative to all other prices bid.
(3) The dollar amounts of the prices bid by bidders shall not be disclosed to the bidders until the close of the bidding period.
(4) All information received, obtained or retained during a reverse auction remains confidential and may not be disclosed until after the close of the reverse auction bidding period.
(G) Opening Offers.
(1) In accordance with the Act, offers will be deemed to be opened when a computer-generated record of the information contained in all bids received from prequalified responsive and responsible bidders is reviewed publicly at the close of the bidding period for the reverse auction in the presence of one or more witnesses at the time and place designated in the invitation for bids by the purchasing agency (or an authorized representative of the purchasing agency, including the purchasing agent).
(2) The purchasing agency, and any of its agents or employees, is prohibited from displaying for public viewing the amount of each initial bid price until the close of the initial bidding period for the reverse auction. The purchasing agency is required to protect the identity of a bidder and the prices which have been submitted by each bidder until the initial bid has been placed until the reverse auction begins, at which time bids will be deemed opened.
(H) Contract Award.
(1) In accordance with IC 5-22-7-8, the purchasing agency must award a contract for the purchase of supplies with reasonable promptness by written notice to the lowest responsible and responsive bidder.
(2) If the contract is not awarded to the lowest bidder, the purchasing agent must indicate the reasons for the award in writing.
(3) As provided in the invitation to bid, the third party conducting the reverse auction may impose a fee as a term of the contract for a purchase made by means of a reverse auction.
(I) Purchase Orders and Payments.
(1) A fully executed purchase order must be filed with the clerk-treasurer within 30 days after the award of a contract of a purchase of supplies through a reverse auction in accordance with IC 5-22-18-5.
(2) Payments for supplies purchased in a reverse auction shall be made only after receiving properly submitted claims in accordance with IC 5-11-10 and IC 36-4-8/IC 36-5-4.
(J) Documentation. The purchasing agency shall be required to maintain adequate documentation regarding its reverse auctions so that the transactions may be audited as provided by law. The purchasing agency shall maintain an indexed file of specifications prepared by or under the authority of its purchasing agents for each reverse auction in which the purchasing agency participates. [Ord. 1300 § 1, 2006. Code 2000 § 31.22].
3.05.090 Rules regarding the purchase of services.
It is hereby determined that the purchasing agency of the relevant department may purchase services including the services of attorneys in whatever manner the purchaser determines to be reasonable. [Ord. 1300 § 2, 2006. Code 2000 § 31.23].
Article II. Nepotism Rules Regarding Contracts
3.05.100 Definitions.
(A) For the purposes of this article, “elected official” means: (1) a member of the legislative body of the unit; or (2) a member of the fiscal body of the town of Highland.
(B) For the purposes of this article, “relative” means any of the following:
(1)(a) A spouse;
(b) Parent or stepparent;
(c) A child or stepchild;
(d) A brother, sister, stepbrother, or stepsister;
(e) A niece or nephew;
(f) An aunt or uncle;
(g) A daughter-in-law or son-in-law.
(2) In addition, an adopted child of an individual is treated as a natural child of the individual and the terms “brother” and “sister” include a brother or sister by the half blood. [Ord. 1513 § 3, 2012].
3.05.110 Special requirements for contracts involving relatives.
(A) The town of Highland, its executive departments and utilities may enter into a contract or renew a contract for the procurement of goods and services or a contract for public works with an individual who is a relative of an elected official; or a business entity that is wholly or partially owned by a relative of an elected official, only if the requirements of this section are satisfied and the elected official does not violate IC 35-44-1-3;
(B) The town of Highland, its executive departments and utilities may enter into a contract or renew a contract with an individual or business entity described in subsection (A) of this section, provided as follows:
(1) The elected official files with the town a full disclosure, which must be in writing, describe the contract or purchase to be made by the town, describe the relationship that the elected official has to the individual or business entity that contracts or purchases, be affirmed under penalty of perjury, be submitted to the town council of and be accepted by it in a public meeting of that body prior to final action on the contract or purchase, and the disclosure must be filed, not later than 15 days after final action on the contract or purchase, the state board of accounts and the clerk of the circuit court of Lake County;
(2) Further, the appropriate agency or contracting body of the town must make a certified statement that the contract amount or purchase price was the lowest amount or price bid or offered; or make a certified statement of the reasons why the vendor or contractor was selected;
(3) Further still, the town of Highland must satisfy any other requirements under IC 5-22 or 36-1-12;
(4) An elected official shall also comply with the disclosure provisions of IC 35-44-1-3, if applicable.
(C) This section does not affect the initial term of a contract in existence at the time the term of office of the elected official of the town begins. [Ord. 1513 § 3, 2012].
3.05.120 Annual certification by elected officers.
(A) Each elected officer of the town as defined herein, shall annually certify in writing, subject to the penalties for perjury, that the officer is in compliance with this chapter. An officer shall submit the certification to the executive (town council president) of the town of Highland not later than December 31st of each year.
(B) The annual report filed by a unit with the state board of accounts under IC 5-11-13-1 must include a statement by the executive of the unit stating whether the unit has implemented a policy under IC 36-1-21. [Ord. 1513 § 3, 2012].