Chapter 2.25
PURCHASING POLICIES AND RULES
Sections:
2.25.020 Authority and definitions.
2.25.030 Competitive bids, quotes and price checks.
2.25.040 Specifications of supplies.
2.25.070 Requests for proposals.
2.25.100 County department responsibilities.
2.25.110 Role of the purchasing department.
2.25.010 Introduction
This chapter outlines the Vanderburgh County purchasing policy for the procurement of goods, materials and services. It is in compliance with state purchasing laws. The policy may be stricter than the state law at the discretion of the Board of Commissioners. IC 5-22-3-3 states: “The purchasing agency of a governmental body may establish written policies for purchases made by the purchasing agency. The written policies may apply to all purchases generally or to a specific purchase as stated in the solicitation for the purchase. A written policy may supplement this article or a rule adopted by the purchasing agency’s governmental body and not be inconsistent with this article or a rule adopted by the purchasing agency’s governmental body.
2.25.020 Authority and definitions
A. The provisions herein are to be construed consistent with the provisions of IC 5-22.
B. The definitions in IC 5-22 shall apply herein unless the context clearly indicates otherwise. Below are listed some definitions found within this policy.
“MBE” means a minority business enterprise.
“WBE” means a woman business enterprise.
“Purchase” includes buy, procure, rent, lease, or otherwise acquire. The term includes the following activities: description of requirements; solicitation or selection of sources; preparation and award of contract.
“Purchasing Agency” shall mean a governmental body that is authorized to enter into contracts by this article, rules adopted under this article, or by another law. This shall mean the Board of Commissioners.
“Emergency” shall mean a situation, which threatens injury or death to any person, damage to property or disruption of governmental services.
“Purchasing Agent” shall mean the County Supervisor of Purchasing.
“Supplies” includes equipment, goods and materials.
“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.
“Policy” refers to a governmental body’s or purchasing agency’s written statement of: (1) purchasing procedure; or (2) substantive purchasing purposes; that does not have the force and effect of law.
“Offer” response to a solicitation.
“Offeror” person that submits an offer.
C. This document is not intended to be a complete listing of authority and procedure under IC 5-22. Any power or authority delineated in IC 5-22 is hereby incorporated herein as a discretionary power of the Purchasing Agency or Purchasing Agent.
2.25.030 Competitive bids, quotes and price checks
A. Small purchases less than or equal to five hundred dollars ($500.00):
1. These purchases do not require price checks or competitive bidding.
B. Purchases over five hundred ($500.00) and less than Fifty Thousand dollars ($50,000.00):
1. Purchases over Five Hundred ($500.00) and less than Fifty Thousand Dollars ($50,000.00) require at least 3 (three) informal verbal or written quotes. The person obtaining the quotes shall record the item quoted, date, vendor, price and name of the person giving the quote. The information required above shall be attached to the requisition. The purchasing department shall keep a copy of the requisition and attachments for no less than two years.
C. Purchases over Fifty Thousand dollars ($50,000.00) and less than One Hundred Fifty Thousand dollars ($150,000.00) [ic 5-22-8-3]:
1. Purchases ranging from Fifty Thousand Dollars ($50,000.00) to One Hundred Fifty Thousand dollars ($150,000.00) will be procured through an informal quote method. Quotes shall be solicited from at least three (3) suppliers 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 7 (seven) days before the time fixed for receiving quotes. [5-22-8-3] The quotes are to opened at the Board of Commissioners’ meeting or other approved public forum. The lowest responsible and responsive offeror shall be awarded the contract for supplies. The purchasing agent may reject all quotes. If there are no responsive or responsible offerors’, the purchasing agent may purchase the items without further bidding under IC 5-22-10-10.
D. Purchases for One Hundred Fifty thousand dollars ($150,000.00) and above [ic 5-22-7]:
1. Formal competitive bidding is required.
2. Legal Advertising is required. The notice shall be published two (2) times, at least one (1) week apart, with the second publication made at least (7) days before the date the bids will be opened (IC 5-3-1).
3. Bids are to be opened at the Board of Commissioners’ meeting or at another authorized public forum.
E. State bid:
1. Departments must refer to the State Bid List when applicable on all items exceeding $1,000.00. Purchases do not have to be made from the State Bid List if better pricing can be obtained or if the State does not offer the product needed.
F. Supplies manufactured in the United States:
1. Pursuant to IC 5-22-15-21, supplies manufactured in the United States shall be specified and purchased unless the Purchasing Agent determines that any of the following apply:
a. the supplies are not manufactured in the United States in reasonable 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 outside the United States;
c. the quality of the supplies is substantially less than the quality of comparably priced available supplies manufactured outside the United States;
d. the purchase of supplies manufactured in the United States is not in the public’s best interest;
e. the Purchasing Agent decides to cancel the solicitation for any reason.
G. Faxed quotes, price checks, bids:
1. Faxed or E-MAILED offers may be considered for price checks or informal quotes. Fax or E-MAIL documents must contain all the requested forms and information set forth by the Purchasing Agent. The offeror assumes the risk of malfunctioning equipment, or equipment which does not deliver the fax or E-MAIL for any reason. An offeror shall follow-up the faxed or E-MAILED information by mailing an original document by U.S. mail on the same date, postage prepaid, as it is faxed or E-MAILED
H. All purchasing contracts furnished by the seller shall be submitted to the County Attorney for review prior to final approval by the Board of Commissioners.
I. Purchasing Sources
1. The following sources should be contacted before all other sources for purchases of all supplies.
a. Purchases from the department of correction [IC 5-22-11]: A Purchasing Agent shall purchase from the Department of Corrections supplies as listed in the department’s printed catalog unless the supplies cannot be furnished in a timely manner [IC 5-22-11-1-3]. Supplies and services purchased under this chapter must meet the specifications and needs of the purchasing governmental body and be purchased at a fair market value. [IC 5-22-11-2].
b. Purchase of rehabilitation center products [IC 5-22-12]: A Purchasing Agent shall comply with the provisions of IC 5-22-12 for purchases of supplies from the Rehabilitation Center established under IC 5-22-12-1-3. These provisions are the same as the above provisions cited for the Department of Correction.
c. Purchases from qualified nonprofit agencies for persons with severe disabilities [ic 5-22-11]: These provisions are the same as the above provisions cited for the Department of Correction.
d. Purchases from MBE and WBE vendors. It is the policy of Vanderburgh County to utilize and give equal opportunity to MBE/WBE vendors. Persons soliciting bids or quotes should check with the Purchasing Department for lists of MBE/WBE vendors who may be able to quote or bid on the product to be purchased. Discrimination against any MBE/WBE shall not be tolerated.
(Section 2.25.030, Amended 8/21/2007, Section 2.25.030 D, Amended 8/28/2007))
2.25.031 Services
A. A department head or office holder may purchase services using any procedure deemed appropriate. [IC 5-22-6-1] Competitive bidding is not required unless mandated by state or federal law.
B. The County may advertise and/or solicit competitive quotes for any service at the discretion of the office holder or purchasing agent. All contracts for professional services costing $1,500 or more must be in written form and reviewed by the County Attorney before being brought to the Board of Commissioners for approval. Under no circumstance is a county office holder or department head to sign a professional service agreement without the Board of Commissioners’ approval.
2.25.032 Lease of equipment
No lease for equipment shall be effective or signed by any office holder or department head without prior approval of the Board of Commissioners.
2.25.040 Specifications of supplies
A. “Specifications” means a description of the physical characteristics, functional characteristics, or nature of materials, and may include a description of a requirement for inspecting, testing, or preparing materials for delivery.
1. Specifications shall be required for every item over Twenty-five Thousand Dollars ($25,000.00) to be procured hereunder. Specifications for items under Twenty-five Thousand Dollars ($25,000.00) may be satisfied by including on the requisition the make, model, serial number, name of the product or a detailed description of the service.
2. The Purchasing Agency shall maintain an indexed file of specifications prepared by or under the authority of its Purchasing Agents (IC 5-22-5-4). Departments will be responsible for maintaining specifications for all items purchased on a blanket purchase order for not less than 2 years or as designated by the Board of Commissioners.
3. The Purchasing Agent may proceed under IC 5-22-5-5 for Request for Specifications when the Purchasing Agent makes a written determination that the development of specifications by the governmental body is not possible, and the Commissioners approves the use of IC 5-22-5-5.
4. All items to be procured shall be F.O.B. Evansville, Indiana at the location designated in the specifications. Prices must include delivery. No additional monies will be paid for delivery.
5. All insurance requirements shall be stated in the specifications as well as whether time of delivery is a consideration of the award.
6. Specifications must indicate whether the products are manufactured in the United States.
7. The Specifications shall contain the minimum warranty period required.
2.25.050 Solicitations
Invitation for Bids, Request for Proposals, and Request for Quotes
A. A Solicitation may provide that offers will be received and contracts awarded separately for any combination of lines or classes of supplies.
B. A Solicitation may provide that the Purchasing Agency will award a contract for supplies for an unspecified or estimated number of items at a fixed price per unit and that the contract may contain a formula or method for the escalation of the unit price.
C. Price. No offer or bidder shall be allowed to alter or change his/her quote or bid prior to award to the lowest responsible and responsive bidder. After the award, the lowest responsible and responsive bidder may negotiate terms and conditions more favorable to the county.
D. Prohibited additions. The Purchasing Agent may not accept additions to the contract that are prejudicial to the county or fair competition (IC 5-22-7-13).
E. Approved equals. If the specifications so provide, a bidder or quoter may submit a request for an approved equal before the deadline for approved equal submittal as stated in the specifications.
F. Discrepancies. If there are errors in the bid or quote, the written words shall control over numbers. Errors may be corrected by the offeror as long the Purchasing Agent determines that such errors were unintentional, do not affect fair competition, and are corrected to the advantage of the county. Unit prices shall prevail over extended prices.
G. Confidentiality. Offerors may request that certain confidential financial information or proprietary information be kept confidential. The product bid and the price shall in all events be subject to the open record law. If such confidentiality is brought into question in any Court or agency, the offeror shall defend, indemnify and hold harmless the county in any such proceeding if requested by the County Attorney and the Purchasing Agent.
H. Withdrawal of offers. An offeror may withdraw his offer at any time prior to the opening of the offer. After an offer is opened at the date and time specified, the offer may be withdrawn only upon the consent of the Purchasing Agent. The following criteria shall be used to determine whether the offeror should be allowed to withdraw its offer:
1. Financial hardship on the offeror if it is not withdrawn
2. Financial hardship on the County if withdrawn
3. Availability of the product from another offeror
4. What is the best interest of the County
I. Bid documents. The specifications shall state the documents to be submitted with the offer. The Purchasing Agent may not allow the offeror to submit a bid bond or certified check after the offers are open. Other documents may be supplemented or submitted if the omission is unintentional, does not affect the price, does not substantially affect the fairness in the bidding process and is approved by the Purchasing Agent.
J. Cancellation or rejection (IC 5-22-18-2). The Purchasing Agent may cancel a solicitation or reject all offers, in whole or in part, if the Purchasing Agent determines it is in the best interest(s) of the county. The reason for cancellation or rejection of all offers must be a part of the contract file. The county may temporarily discontinue services, stop work or alter the scope of services required.
K. Non-collusion form. The offeror must file an Affirmation Form pursuant to IC 5-22-16-6.
L. Offers opened after time stated in solicitation (IC 5-22-18-3). Offers may be opened after the time stated in the Solicitation if both of the following apply:
1. The Agency makes a written determination that it is in the best interest of the county to delay the opening.
2. The day, time and place of the rescheduled opening are announced at the date, time and place of the originally scheduled opening.
M. Solicitation not required (Non-profit agency) (IC 5-22-13-2). A Purchasing Agent may purchase supplies and services without advertising or calling for bids from a “qualified” Non-Profit Agency for persons with severe disabilities unless the supplies cannot be furnished in a timely manner.
N. Price preferences allowed under (IC 5-22-15-16)-Recycled materials components.
1. There is a ten percent (10%) price preference for supplies when they meet one (1) of the following:
a. At least fifty percent (50%) of the value of the original components consist of recycled materials.
b. The cost of purchasing recycled materials constituted at least fifty percent (50%) of the cost of producing the supplies.
c. A percentage by weight or volume of recycled materials that the Commissioner of the Department of Environmental Management determines by rule is eligible for purchase preference under 5-22-15.
2. Pursuant to IC 5-22-15-17, there is a price preference of fifteen percent (15%) for supplies that contain at least fifty percent (50%) by volume of recycled material that have been used by an ultimate consumer of the materials.
3. Only one (1) preference shall be allowed IC 5-22-15-7.
4. Any price preference shall be stated in the offer-submitted response to a solicitation.
2.25.060 Invitation for bids
A. An invitation for bids must include:
1. A purchase description describing the supplies or services to be purchased. This includes specifications attached to, or made a part of, the solicitation.
2. All contractual terms and conditions.
3. A statement of the evaluation criteria that will be used, including any of the following: inspection; testing; quality; workmanship; delivery; suitability for a particular purpose.
4. Time, date and place for opening bids.
5. Whether or not a certified check, bond, or other evidence of financial responsibility is required. A Purchasing Agent may provide that a certified check, bond or other evidence of financial responsibility is required to be submitted with the offer. If faxing is permitted, it shall be sufficient if a copy of such check, bond or evidence of financial responsibility is included in the fax and the original is placed in the United States mail, postage prepaid, addressed to the Purchasing Agent before the date offers are to be opened. Checks, bonds and other evidence of financial responsibility shall be required only when required by the invitation for bids at the discretion of the Purchasing Agent.
6. A statement concerning the conditions under which a bid may be canceled or rejected in whole or in part as specified in IC 5-22-8-2.
B. Maintenance of Bid information
1. The Purchasing Agency shall maintain the following information:
a. The name of each bidder
b. Amount of each bid
C. Other information required by state law. All information is subject to public inspection after each contract award. [IC 5-22-7-9]
D. Acceptance and Evaluation of Bids
1. Bids must be unconditionally accepted without alteration or correction, except as provided in IC 5-22-7-11 through IC 5-22-7-3 and evaluated based on the requirements provided in the invitation for bids. [IC 5-22-7-7]
2. 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 after bid opening. [IC 5-22-7-11]
3. 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 non-responsive.
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 the proposed additions to the contract, subject to IC 5-22-7-13.
d. Contract additions may not be accepted if they are prejudicial to the interest of the governmental body or fair competition. [IC 5-22-7-3].
4. A contract must be awarded with reasonable promptness by written notice to the lowest responsible and responsive bidder. [IC 5-22-7-8]
5. Except as provided in 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. [IC 5-22-7-10]
2.25.070 Requests for proposals
A. When a purchasing agent makes a written determination that the use of competitive sealed bidding is either not practicable or not advantageous to the governmental body, the purchasing agent may award a contract using the request for proposal process under IC 5-22-9.
B. The purchasing agency shall give public notice of the request for proposals in the manner required by IC 5-3-1.
C. Request for proposals must include the following:
1. The factors or criteria that will be used in evaluation. The only factors that may be used in the evaluation of proposals are those specified in the request for proposals. [IC 5-22-9-10]
2. A statement concerning the relative importance of price and the other evaluation factors.
3. A statement concerning whether the proposal must be accompanied by a certified check or other evidence of financial responsibility.
4. A statement concerning whether discussions may be conducted with responsible offerors, who submit proposals determined to be reasonably susceptible of being selected for award.
5. All other evaluation criteria.
D. An award shall be made to the responsible offeror whose proposal is determined in writing to be the most advantageous to the governmental body, taking into consideration price and the other evaluation factors set forth in the request for proposals. [IC 5-22-9-7]
2.25.080 Special purchases
A. Special Purchases must be made with competition as is practicable under the circumstances. The County Attorney shall be consulted prior to bringing a special purchase request to the Board of Commissioners. A Purchasing Agent may make a purchase without soliciting bids or proposals as follows:
1. Emergencies (IC 5-22-10-4). A Purchasing Agent may make a special purchase when there exists, under emergency conditions, a threat to the public health, welfare or safety.
2. Substantial savings (IC 5-22-10-5). A Purchasing Agent may make a special purchase when there exists a unique opportunity to obtain supplies or services at a substantial savings.
3. Auction (IC 5-22-10-6). A Purchasing Agent may make a special purchase at an auction.
4. Data processing contracts (IC 5-22-10-7). A Purchasing Agent may make a special purchase of data processing contracts or licensing agreements for:
a. software programs, or
b. supplies or services, when only one (1) source meets the using agency’s reasonable requirements.
5. Compatibility of equipment (IC 5-22-10-8). A Purchasing Agent may make a special purchase when:
a. the compatibility of equipment, accessories, or replacement parts is a substantial consideration in the purchase: and
b. only one (1) source meets the using agency’s reasonable requirements.
6. Other situations. The Purchasing Agent may make a special purchase under the following:
a. Threatened impairment of functioning of a County Department (IC 5-22-10-9).
b. Failure to receive a responsive offer through approved purchasing methods (IC 5-22-10-10).
c. For the evaluation of supplies or a system containing supplies. This would be in order to obtain functional information or comparative data (IC 5-22-10-11).
d. When the market structure is based on price but the County is able to receive a dollar or percentage discount of the established price.
e. Single or sole source supply under IC 5-22-10-13. A Purchasing Agent must determine in writing that there is only one (1) source for the supply.
f. Price equal to or less than Federal Supply Services established by the federal General Services Administration (IC 5-22-10-14).
g. Purchase is made from a person who has a contract with a federal agency or state agency and the person’s contract with the federal agency or state requires the person to make the supplies available to the state or political subdivisions (IC 5-22-10-15).
h. Transfer of supplies from Federal Government under (IC 5-22-10-16).
i. By accepting a gift (IC 5-22-10-17).
7. Contract files. A Purchasing Agent shall maintain the contract records for a special purchase in a separate file for a minimum of five (5) years. The file must include a written determination of the basis for the special purchase and the selection of a particular contractor. These records are subject to annual audit by the State Board of Accounts. [IC 5-22-10-3]
2.25.090 Contracts
A. This Section does not apply to a discounted contractual arrangement for services or supplies funded through a designated leasing entity.
B. A contract for supplies may be entered into for a period not to exceed four (4) years.
C. The contract must specify that payment and performance obligations are subject to the appropriation and availability of funds.
D. Subject to limitations found in IC 5-22-17-4, a contract may be renewed any number of times, for terms not longer than the original contract, so long as the contract does not contain any provisions for escalation of the price.
E. Petroleum products. Pursuant to IC 5-22-17-10, a Purchasing Agent may award a contract for petroleum product to the lowest responsible and responsive offeror or all responsive and responsible offerors. Contracts entered into under this section may allow for the escalation or de-escalation of price.
F. A cost plus a percentage of cost contracts are prohibited. IC [5-22-17-1]
G. A cost reimbursement contract is allowed if the purchasing agent determines in writing that the contract is likely to be less costly that any other contract type or it is impracticable to obtain the supplies required except under such a contract. [IC 5-22-17-2]
H. Late performance clauses are encouraged in all appropriate situations so as to protect the County’s interest. Notice of inclusion of this contract provision must be stated in the solicitation. [IC 5-22-17-6]
2.25.100 County department responsibilities
A. It is the responsibility of each Elected Office Holder and/or department head to ensure full compliance with Purchasing Procedures.
1. Each office holder or department head shall:
a. obtain a purchase order for all goods and services prior to committing the County to the purchase. The purchase order shall contain a description of the goods or services ordered, unit price, vendor, and account number from which the goods or services are to be paid. Verbal orders of goods and/or services are not valid orders. Requisitions shall be submitted to the Purchasing department for authorization;
b. plan purchasing needs on the basis of time and quantity to enhance cost savings;
c. verify that sufficient funds are budgeted or make arrangements for funding prior to initiating a purchase request; and
d. be available to participate in evaluating bids and request for proposals when submitted by prospective bidders.
2.25.110 Role of the purchasing department
The Purchasing Department will facilitate efficient and legal purchasing practices within the County. The Purchasing Department will ensure that the purchasing policy of Vanderburgh County is followed in the procurement of goods and services and administer an effective program that encourages free and open competition and bidding.
(2.25.110, Amended, 08/19/2002)