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HomeMy WebLinkAboutAdministrative Order 2021-11 Adoption of Update to City of Bozeman Purchasing, Travel Training and policy ADMINISTRATIVE ORDER 2021-11 Adoption of Update to City of Bozeman Purchasing, Travel/Training and Policy Effective 12/01/2021 Montana law delegates broad authority to the City to buy, sell, mortgage, rent, lease, hold, manage, and dispose of property', provided legal procedures are followed. The City of Bozeman (City) is committed to procuring the highest quality goods and services at the most competitive prices from reputable and responsible bidders. The City strives to ensure its purchasing processes are carried out in compliance with State law, City ordinances, City Commission Resolutions, and administrative orders. City purchasing and contracting must reflect the City's core values of integrity, service, teamwork, and leadership. The public relies on the City to make fair, competitive, and open purchasing decisions that are in the best interest of the City. The policies and processes in this Purchasing and Travel/Training help the City ensure supplies, equipment, and services necessary for the operation of the City are obtained at competitive prices in a manner that is transparent, guarantees fairness, and minimizes opportunities for fraud, waste, and abuse. Violations of this policy are subject to disciplinary action in accordance with the Employee Handbook and any applicable union contracts. DATED this t day of 2021 7&Ja f4 Je f e ich, Bozeman City Manager 17-1-4124, MCA. Page 1 CITY OF BOZEMAN PURCHASING, TRAVEL/TRAINING AND POLICY Per Administrative Order Adoption dated 12-01 -2021 MT t. *i A N Page 2 INTRODUCTION Montana law delegates broad authority to the City to buy, sell, mortgage, rent, lease, hold, manage, and dispose of property2, provided legal procedures are followed. The City of Bozeman (City) is committed to procuring the highest quality goods and services at the most competitive prices from reputable and responsible bidders. The City strives to ensure its purchasing processes are carried out in compliance with State law, City ordinances, City Commission Resolutions, administrative orders. City purchasing and contracting must reflect the City's core values of integrity, service, teamwork, and leadership. The public relies on the City to make fair, competitive, and open purchasing decisions that are in the best interest of the City. The policies and processes in this Purchasing and Travel/Training to help the City ensure supplies, equipment, and services necessary for the operation of the City are obtained at competitive prices in a manner that is transparent, guarantees fairness, and minimizes opportunities for fraud, waste, and abuse. Violations of this policy are subject to disciplinary action in accordance with the Employee Handbook and any applicable union contracts. 2 7-1-4124, MCA. Page 3 PURCHASING POLICIES & PROCEDURES A. Scope and Applicability These policies are applicable to all City departments and City agencies with purchasing authority for all purchases except as specified. All boards, committees, or other recognized entities of the City wherein a City employee is the authorized approver of the board's purchases must comply with this Manual. Any board or committee given independent purchasing authority by law or by the City Commission, including the Library Board of Trustees, the Parking Commission, Business Improvement Districts, and urban renewal boards must comply with this Manual. These policies may be supplemented by separate administrative orders, including but not limited to: • Vehicle Use Policy (Admin. Order No. 2007-03, as amended) • Vehicle/Equipment Replacement Policy (Admin. Order No. 2010-04, as amended) • Information Technology Use Policy (Admin. Order No. 2021-02, as amended) B. Administration The City Manager may establish by administrative order rules and procedures to enforce City codes and to favor competitive bidding.The Directors of the various City departments may adopt additional procedures to monitor and control purchase requests and Department compliance.To ensure compliance with purchasing rules, those making purchases must be familiar with these purchasing requirements and procedures. Departments must ensure that those employees who are authorized to purchase for the Department are familiar with procurement policies and procedures. Department Heads are responsible for meeting and serving the education and training needs of their department. Funds for education, training and associated travel should be adequately budgeted by the Department Head. Justification for the budget request shall be the responsibility of the Department Head during the budget process, and each Department Head shall allocate the funds so designated in a conscientious manner, having due regard to the overall needs of the department. However, every effort shall be made to secure outside funds such as grant funds to supplement training and travel budgets. Whenever a department secures outside funds,those outside funds shall not be used to reduce training and travel budgets or future allocations in budget cycles Piggybacking on other public agency contracts can achieve efficiency, easier access, and greater Page 4 volume discounts. The City Manager or designee has the authority to sign Interlocal Agreements to allow such shared use. In regards to grant funding for purchases, travel, training and contracts, ensure you are complying with policies and procedures outlined in the grant agreement. For Federal awards, direct or sub award, ensure to follow the Uniform Guidance (https://www.grants.gov/web/grants/learn-grants/grant-policies.htmi ). C. General Requirements 1. Conflicts of interest3 (a) Employees and public officials (as defined in the City's Ethics Code) may not benefit from a contract or purchase entered into by the City.' (b) The City does not contract with or purchase goods or services from employees or employee-owned businesses, or City officials or official-owned businesses.' (c) No employee or public official shall participate in the award and/or administration of a contract if a conflict of interest exists, whether real or apparent. Provision (b) above may be waived in particular circumstances by the City Commission before the purchase or contract has been entered into. Such a waiver requires a publicly advertised hearing for the specific purpose, along with consideration of the circumstances and factors outlined in 7-5-4109(2), MCA. The City has provided for annual review and disclosure of employee-vendor relationships.' These disclosures are on file in the City Clerk's office. If you plan to participate in a purchasing decision, you have a responsibility to advise the City Attorney's Office if there is any potential conflict of interest prior to participating. Whether an actual or potential conflict exists is a fact-specific determination, and the City Attorney's Office will talk through the circumstances with you. 3 Refer to the City's Ethics Code for specific conflict of interest regulations and prohibitions applicable to employees and City officials. 4 7-5-4109, Montana Code Annotated (MCA), 2-2-201(1), MCA,and 2.03.490(D), Bozeman Municipal Code(BMC). 5 7-5-4109, MCA. This also applies to the employee's or official's spouse, ex-spouse, parent or step-parent,sibling, child,step-child, or adopted child. e Sec. 2.03.550, BMC. Page 5 Pursuant to the City's Code of Ethics, no employee will receive a commission, profit, gratuity, or gift as a result of any contract or purchase made by the City.' Employees must remain impartial in purchasing decisions and decline any gifts or incentives that are offered for the purpose of influencing or rewarding decision-making. If in doubt, please contact the City Attorney's Office for guidance. 2. Use of City funds No employee may use City funds for personal purchases of any nature.$ (a) Authorized personal use of city-provided cell phone, data devices, and internet usage is allowed in certain cases, according to the City's IT Use Policy. (b) Authorized personal use of city-provided vehicles for commuting is allowed in certain cases, according to the City's Vehicle Usage Policy. (c) Purchases under the Dell, Microsoft, and Apple Employee Purchase Programs are authorized as an employee benefit, being repaid through payroll withholding. 3. Itemized receipts required Unless otherwise noted in this Policy, itemized receipts and invoices are required for all purchases. Details must be included to ensure the public can determine exactly what is being paid for, including individual units purchased and/or hours of service and the associate rate for each. 4. Division of contracts prohibited Purchases or contracts may not be divided in order to circumvent the competitive bidding and other procurement requirements set forth in this Manual. For items purchased multiple times during a fiscal year, the method of selection must be determined by the total value of the purchases. D. Authority to Make Purchases Only persons expressly authorized by this policy may make any purchase or enter into any contract for purchase. Sec.2.03.540, BMC. $2.03.490(D), BMC. Page 6 Depending on the type and size of the procurement, only the City Commission, the City Manager, Department Directors, and certain boards (including the Library Board of Trustees and the Parking Commission) are authorized to procure goods or services. No other employee is authorized to "sign for" a purchase or bind the City in any way. As discussed in the Contracts portion of this manual, this prohibition includes signing contracts and invoices on behalf of the City. The roles of other City staff in the procurement process, such as the City Clerk and the project manager assigned to the procurement, are discussed below. E. Procurement Planning&Advertising Procurement planning should focus on finding the best overall solution, using a procurement method that is legal, meets short and long range needs, and provides and promotes competition. Procurement planning begins with determining the type of purchase that is needed. Requirements for different types of procurements are discussed in more detail below. Depending on the type of procurement, you will generally need to advertise an Invitation for bids (IFB), request for proposals (RFP), or request for qualifications (RFQ). Certain purchases may be exempt from the requirement to advertise. 1. Writing specifications/scopes of work Specifications establish minimum requirements, characteristics, or standards a product or service must meet to be considered. Complete and understandable specifications are the only information the prospective Vendor has on which to base a bid/proposal. Specifications also establish legal parameters for acceptability. Specifications should: (a) Identify Minimum Requirements: Specifications describe the minimum acceptable requirements of the supply or service the department needs. Minimum, in this sense, does not mean substandard; it simply means those characteristics that a product must have in order to be considered. When writing a specification, include every feature that is needed. (b) Allow for Competitive Bids:Specifications should ensure that Vendors can compete. Competition is the best way to ensure low prices and equitable treatment of Vendors. Generally, specifications based upon performance requirements will allow for more competition than a specification based upon design requirements. (c) List Evaluation Criteria and Test Methods: Specifications should state how the Page 7 supply/service requested will be evaluated for award. If products will be compared, each Vendor needs to know how those comparisons will be made. (d) Provide for a FairAward at the Lowest Possible Cost: Specifications should ensure that the department receives the supplies/services it needs at a reasonable price and that the award will be made fairly. To perform those functions, specifications should be simple and clear, identifying exactly what is needed. 2. Preparing the solicitation notice; publication requirements Based on the specifications or scope of work, the Project Manager will develop the IFB, RFP, or RFQ. Therefore, it is critical the Project Manager have clear, concise, and detailed specifications or scope of work. Keep in mind it is unacceptable to draft or cause to be drafted any statement of work/specifications in such a manner as to limit the competition directly or indirectly to any one Vendor. Advertised solicitations for certain public works contracts and other non-construction services contracts over$25,000 must include information on Montana's prevailing wage requirements.9 If you're unsure whether the prevailing wage requirements apply to your solicitation, please consult with your department director or the City Attorney's Office. The advertisement for IFBs, RFPs, and RFQs must be published as provided in 7-1-4127, MCA, and the second publication must be made not less than 5 days or more than 12 days before the consideration of bids/proposals.10 In addition to the print advertisement, the City Clerk will post the IFB/RFP/RFQ on the City website. Examples of previously advertised IFBs, RFPs, and RFQs are available on the City's website at http://webIink.bozeman.net/WebLink8/Browse.aspx?startid=26&dbid=0. 3. Questions from potential vendors Solicitations must include contact information for the Project Manager so that prospective Vendors may submit questions regarding the solicitation. Such questions must be forwarded to the City Clerks so they may be posted on the City's bid website. e 18-2-401, MCA. 10 7-5-4302(2), MCA. Page 8 4. Pre-bid/proposal conferences Pre-bid or pre-proposal conferences provide an opportunity for bidders/offerors to emphasize and clarify critical aspects of solicitations (for example, statement of work), eliminate ambiguities or misunderstandings, and permit Vendor input. Attendance at conferences or site visits may be optional or mandatory. When mandatory attendance is stipulated, only bids or proposals from those Vendors represented will be accepted. After the conference, an addendum will be issued if a modification to the solicitation is required as a result of the conference. 5. Bid/proposal receipt The time and date for receipt of bids/proposals will be included in the solicitation notice. At the time of submission, all bids/proposals will be marked with a receiving date and time and signed by the City Clerk. If bids/proposals are not submitted by the specified date, time, and location identified in the solicitation notices, the response will be deemed non-responsive and will not be considered for review/evaluation. Late bids/proposals will be marked with a receiving date and time and filed unopened. The City reserves the right to reject any and all bids. 6. Bid/proposal mistakes By the City If the Vendor alleges a mistake in the City's solicitation prior to opening, the bid/proposal may be corrected or withdrawn. Solicitation amendments may be made by the issuance of an addendum prior to the time set for receipt of responses. Acknowledgement of receipt of an addendum must accompany the bid or proposal. Failure to acknowledge receipt of an addendum may be cause for rejection of the bid or proposal. By the Vendor A bid "informality" is a minor deficiency or variation of a bid or proposal from the exact requirements of the IFB, RFP, or RFQ, which does not affect the price, quality, quantity, or delivery schedule for the commodities, goods, or services being purchased.The City Attorney's Office may waive such informalities or permit the Vendor to correct them, whichever procedure is in the best interest of the City. An example is where the Vendor fails to sign the solicitation documentation. In no instance will the absence of a Bid Bond be considered a minor defect or variation. Page 9 A Vendor may amend or withdraw a bid or proposal before the deadline if the City Clerk receives a request in writing before the due date and time. The request must be signed by a person authorized to represent the Vendor that submitted the bid or proposal. No bid may be withdrawn after the opening of the bids or proposals without the consent of the City Commission for a period of sixty (60) days after the scheduled time of receiving bids or proposals. 7. When other entities are required to follow City purchasing rules In certain circumstances, private entities, such as property developers, may be asked to conduct a bid using the public procurement process. Examples of these circumstances include projects where the City is entering into a payment agreement for the City's share of infrastructure required for the developer's project, and development agreements through the Economic Development Department where the public process must be followed for the developer to receive reimbursement for infrastructure costs. Instructions for the private entity and template bid documents are available on the City Clerk's webpage on the City website. 8. Templates All invitation to bid/request for proposals/request for qualifications templates are located on the City's Projects folder. F. Purchasing Rules and Procedures—Selection of Vendors 1. Purchasing goods; construction. The City seeks the lowest life-cycle costs when comparing goods. Estimated useful life and maintenance costs must be documented whenever they are factored into purchasing decisions. General bidding requirements Generally, a contract for the purchase of any automobile, truck, other vehicle, road machinery, other machinery, apparatus, appliances, equipment, or materials or supplies or for construction, repair, or maintenance in excess of$80,000 must be let to the lowest responsible Page 10 bidder after advertisement for bids.11 There are several exceptions to this bidding requirement: (a) Public auction: In lieu of soliciting bids, the council may purchase at public auction any vehicle, machinery, appliances, apparatus, building, or materials or supplies for which must be paid a sum of$50,000 or less.12 (b) Emergencies: Purchases necessitated by an emergency caused by fire, flood, explosions, storm, earthquake, riot, insurrection, or other similar emergency. In such case, the City Commission may proceed in any manner which, in the judgment of three-fourths of the members of the Commission present at the meeting will best meet the emergency and serve the public interest. Such emergency must be declared and recorded in the minutes of the meeting.13 (c) Purchases of supplies or equipment from other government agencies: Purchases of supplies or equipment from government agencies are exempt from the bidding requirements of 7-5-4302, MCA when the purchase can result in a substantial savings to the City, and when there is sufficient budget for the purchase.14 (d) Alternative project delivery contracts: Alternative project delivery contracts provided for in Title 18, chapter 2, part 5 are exempt from the bidding requirement in 7-5-4302, MCA. See discussion below. (e) Energy performance contracts: Solicitation and award of an investment grade energy audit or energy performance contract pursuant to Title 90, Chapter 4, Part 11, and contracts for the construction or installation of conservation measures pursuant to the energy performance contract are exempt from the bidding requirement in 7-5-4302, MCA." 11 7-5-4302, MCA. 12 7-5-4310, MCA. 13 7-3-4303(1), MCA; 10-3-401 et seq., MCA. 14 7-3-4303(2), MCA. 15 7-5-4315, MCA. Page 11 Authorization for procurement of goods or for construction: Procurement Solicitation Procurement authority cost _< $5000 Department Director discretion Department Director $5001—$20,000 Minimum of two written quotes or other Department Director documentation16 for the item $20,001-$79,999 A minimum of two written quotes City Manager prepared for the City by Vendors is required. $80,000 or over All items in this range must follow the City Manager formal IFB process. 2. Purchasing services Contracts for services are awarded to the lowest most-responsible Vendor. When determining which Vendor is the "lowest most-responsible" you may take into consideration generally available information regarding their skill, ability,their integrity to do faithful, conscientious work, and promptly fulfill the contract according to its letter and spirit.17 This may include information such as qualifications, available staff, references, delivery date, inspection, testing, quality and workmanship, etc. (a) Architectural, engineering, and land surveying services Services costing over$50,000 The City must publicly announce requirements for architectural, engineering, and land surveying services over$50,000 by publishing an RFQ, and negotiate contracts for such professional services on the basis of demonstrated competence and qualifications for the type of professional services required and at fair and reasonable prices.1,, The City must publish in advance its requirement for professional services. The announcement must state concisely the general scope and nature of the project or work for which the services are required and the address of a representative of the government who can provide further details. A government may comply with this section by: 16 Catalog price lists, online price listings, etc. 17 Debcon Inc. v. City of Glasgow, 2001 MT 24,305 Mont.391, 28 P.3d 478. 18 18-8-201, MCA. Page 12 i. Publishing an announcement on each occasion when professional services provided by a licensed professional are required by the City; or ii.Announcing generally to the public its projected requirement for any category or type of professional services.19 The City typically advertises for these professional services for each particular project, but may also encourage firms engaged in the lawful practice of their profession to submit annually a statement of qualifications and performance data. When selecting the firm, the City evaluates current statements of qualifications and performance data on file with the City, if any, together with those that may be submitted by other firms regarding the proposed project, and conducts discussions with one or more firms regarding anticipated concepts and the relative utility of alternative methods of approach for furnishing the required services. The City will then select, based on criteria established under government procedures and guidelines and the law, the firm considered most qualified to provide the services required for the proposed project. The selection criteria must be available to the public and include at a minimum the criteria specified in 18-8-204(2)(b) as they relate to each firm. Exception for contracts estimated to cost less than $50,000 When architectural, engineering, and land surveying services fees are estimated not to exceed $50,000, the City may contract for those professional services by direct negotiation. This does not mean the selection of an architect, engineer, or land surveyor may be made based on price; selection must still be based on qualifications. However, rather than publishing an RFQ the Project Manager may directly contact (for example) engineering firms the City knows to be qualified based on previous work for the City or a recent Statement of Qualifications submitted by the firm. (b) General professional services and non-construction 20 services Authorization for procurement of services: i9 18-8-203, MCA. 20 As defined in 18-2-401(9), MCA. Page 13 Procurement Solicitation Procurement authority cost S $5000 Department Director discretion Department Director $5001—$79,999 Minimum of two written quotes, with the Department Director lowest responsible Vendor selected. $80,000 or over Services in this range require a published City Manager RFP, with the lowest responsible Vendor selected. (c) Contracts for goods and services When entering into an agreement that includes both the purchases of goods and services, apply the cost thresholds above applicable to a purchase of goods when the dollar value of the goods portion of the agreement is more than 50%. The same method applies to a procurement of services. (d) Legal services Procurement of legal services is exempt from the requirement to advertise the solicitation. Only the City Attorney's Office in consultation with the City Manager may obtain legal services for the City. 3. Meal and food purchases In many cases, it is to the City's advantage to provide food to employees and volunteers while they are conducting city business, or in special cases of recognition or award. Meal and food purchases are subject to all purchasing and approval requirements. (a) Non-per-diem meal and food purchases must have itemized receipts signed by Department Directors. (b) Per-diem amounts are established by the Training and Travel Policy, and do not require receipts. Only Department Directors or the City Manager may approve exceptions to the per-diem amounts.zs (c) Receipts for meals eaten at restaurants while not in an overnight travel status must be submitted to the Finance Department on a completed "Travel Advance" or "Meals—Taxable Fringe Benefit Form", whichever is applicable.22 21 Administrative Order No. 2007-04,Training and Travel Policy,Section VI. 22 Internal Revenue Code,Title 26.A.1.B.111,Sec 119. See also,Taxable Fringe Benefit Guidelines, IRS. Page 14 (d) The purchase of alcohol or tobacco with city funds is prohibited.23 4. Alternative project delivery In addition to traditional invitations to bid for construction projects, the City is authorized to use an alternative project delivery contract. An "alternative project delivery contract" is a construction management contract, a general contractor/construction manager contract, or a design-build contra ct.24 To use an alternative project delivery contract, the City must demonstrate that it has or will have knowledgeable staff or consultants who have the capacity to manage the contract.25 Prior to awarding an alternative project delivery contract the City Commission must adopt a Resolution determining that the proposal meets at least two of the sets of criteria described in (a) through (c) below, and that the proposal meets the provisions of(d). (a) The project has significant schedule ramifications and using the alternative project delivery contract is necessary to meet critical deadlines by shortening the duration of construction. (b) By using an alternative project delivery contract, the design process will contribute to significant cost savings. (c) The project presents significant technical complexities that necessitate the use of an alternative delivery project contract (d) Using an alternative project delivery contract will not encourage favoritism or bias in awarding the contract or substantially diminish competition for the contract. The City Commission's decision to award the alternative project delivery contract must be based, at a minimum, on (a) the applicant's history and experience with projects similar to the project under consideration; financial health; staff or workforce that is proposed to be committed to the project; approach to the project; and project costs, and (b) any additional criteria or factors that reflect the project's characteristics, complexities, or goaIS.21 At the conclusion of the selection process, the City must state and document in writing the reasons for selecting the contractor that was awarded the contract. The documentation must 23 Administrative Order No. 2007-04,Training and Travel Policy, Guidelines on Personal Expenses. 24 18-2-501, MCA. 2s 18-2-502(1), MCA. 2618-2-503(2), MCA. Page 15 be provided to all applicants and to anyone else, upon request.27 5. IT purchases All technology-related purchases, both hardware and software, must be approved by the IT Director or their designee prior to purchase. This includes the purchase of technology related services, such as application hosting or website editing. 6. Government Services (GSA, WSCA, etc.) and cooperative purchasing Supplies, equipment, and other professional services may be purchased from another government entity (including Montana State University, Montana Prison Industries, and other government purchasing programs) without bids or advertisements when done at a substantial savings to the City.28 (a) It should be noted that these purchasing arrangements are often, but not always, the lowest price available. (b) Requirements for prevailing wages must still be met for "public works" contracts and non-construction contracts over$25,000.29 Refer to Section 18-2-401, MCA for definitions of these services. (c) Where state and local laws require a good or service to be provided by a specific entity (Elections administration, Detention Center, etc.) quotes are not required. Montana law30 also allows the City to cooperate with other local governments to procure services and facilities more efficiently than would otherwise be possible. The State of Montana maintains a list of term contracts in which a source or sources of supply are established for a specific period of time at a predetermined price. City staff may utilize any of the term contracts listed by the State of Montana agencies as a cooperative purchaser. The list is maintained at http://svc.mt.gov/gsd/apps/termcontractdefault.aspx. City staff may utilize term contracts listed by the State without further competition. Other governmental agencies, including GSA or other States, may have existing term contracts the City may "piggyback" and purchase under. The cooperative purchasing arrangement may be required to be memorialized in an Interlocal 2718-2-503(4), MCA. 28 7-5-4303(2), MCA. 29 18-2-401(11), MCA. 30 7-11-102, MCA; 18-4-402, MCA. Page 16 Agreement, the required contents of which are set out in 7-11-105, MCA. Please contact the Legal Department if you are considering a cooperative purchase. 7. Special considerations (a) Prevailing Wages For procurements that include service work, Prevailing Wages may apply.31 Montana's prevailing wage law, often referred to as Montana's Little Davis-Bacon Law, applies to public works contracts entered into for construction services (heavy, highway and building) or non- construction services by the state, county, municipality, school district, or political subdivision in which the total cost of the contract is $25,000 or more involving public funds. It requires that bidders on contracts pay a set rate of compensation, including employee benefits, and at least 50% of the employees of each contractor working on the jobs be bona fide Montana residents. The Department of Labor and Industry, through its Labor Standards Bureau, determines prevailing wage rates for the construction and service industries. Established rates can be obtained through the State of Montana website at http://erd.dli.mt.gov/labor-standards/state- prevailing-wage-information.html. (b) Sole source procurement— when bids or quotes are not required The City may be exempt from the general requirement to advertise for competitive bids/proposals or obtain multiple quotes when it is in the best interest of the City to maintain a compatible and/or reliable system provided by a single vendor or professional. Sole source procurement may only be done where: i. There is only one course for the supply or service item (for instance, a vendor's warranty service, exclusive vendor-requirement maintenance agreements), or ii. Only one source is acceptable or suitable for the supply or service item, or iii. The supply or service item must be compatible with current supplies or services32, or iv. A collective bargaining agreement or other contract requires the utilization or employment of a specific good or professional. Sole source procurement must be pre-approved in writing by: "18-2-401, MCA. 32 18-4-306, MCA. Page 17 Purchases of goods and services Required authorization Up to $79,999 Finance Director $80,000 and over City Manager (c) Long term contracts Contracts for services or the purchase of goods may not be extended beyond a five-year duration without engaging in the competitive process according to the dollar thresholds established in this Manua1.33 (d) Installment purchases When the amount to be paid under and installment purchase contract exceeds $4,000, the City Commission may approve the payment of the amount in installments extending over a period of not more than 10 years.34 8. Records retention Documentation related to the procurement process is public information subject to disclosure. Notes may also become public information if they provide important documentation of the City's process or decisions. Do not make remarks or comments you are not comfortable sharing with a public audience. Keep those notes that help to document the process and decisions, and clearly organize them so they can be understood in the future. G. Travel and Training 1. Travel Purpose and Approval Travel for which the City pays, including payment by travel advance, reimbursement, or by any other method, must be for travel on official City business that is for the benefit of the City. All travel requests shall be approved by the Expending Authority prior to traveling. Out of State 33 7-5-4303, MCA. 34 7-5-4306, MCA. Page 18 Travel must be approved by Department Director. 2. Reasonable Cost Travel shall be done using the most reasonable cost and means under the circumstances. The determination of reasonableness of cost and of the means of travel shall be at the discretion of the Expending Authority, who shall consider economic factors and circumstances, including but not limited to number of days of travel, advance notice, possibility of trip cancellation, distance of travel, travel alternatives, and hours of arrival or departure. (a) Employees and officials are responsible for demonstrating that the expenses incurred and/or approved are reasonable and necessary. (b) In situations where the travel expenses are going to be paid from a grant, the allowable reimbursement amounts should be based upon the grant requirements or this policy, whichever is more restrictive. 3. Travel Advance Travel advances shall not be issued to the Traveler more than thirty calendar days PRIOR to the departure date of a trip. Travel advances may be requested by the Traveler for transportation, lodging, conferences, meeting expenses, meals (following per diem rules) and incidental expenses. The request shall be approved by the Expending Authority. (a) Only expenses of the Traveler shall be advanced. The City shall not advance travel expenses for persons other than the Traveler. (b) Travel advances shall not be issued to individuals who have not Travel Authorization and Expense Form that reconciles an outstanding balance in the City's financial system from a previous travel. (c) Any unused funds shall be returned to the City within thirty days of completion of the trip. (d) If the scheduled trip is cancelled, then the Traveler shall, upon learning of the cancellation, immediately refund all travel advances to the City. 4. Travel Reimbursement The Travel Expense Form reconciling travel expenses and the approved and signed travel Page 19 expense voucher shall be submitted to the Finance's Office within thirty days of completion of the trip. Travel that is not reconciled and submitted to the Finance's Office within forty-five days of completion of travel shall result in the entire advance being reported through the payroll system as additional wages to the employee no later than the first payroll period following the end of the forty-five days and shall be reported as income on the Traveler's W-2. The income and applicable employment taxes on the additional wages are to be withheld from the Traveler's regular earnings. The City shall not reimburse travel expenses for persons other than the Traveler. Original receipts are required for all expenses except meal per diem. Photocopies of invoices, credit card statements or records of charge slips accompanying monthly billing statements, or restaurant stubs are not acceptable. Travelers may be reimbursed for the following types of expenses incurred while on official City business. (a) Lodging—The City shall reimburse Travelers for lodging expenses based on the lodging per diem rates established by the GSA. (b) Meals: Meals will be reimbursed on a PER DIEM basis only. Any expenses over the per diem rate are the responsibility of the Employee. Exceptions to the policy are discouraged, but the Department Head may grant a deviation from this policy in exceptional circumstances. Meal per diem will not be provided for meals offered by the training/conference if they are at no additional cost. (c) Transportation —Travel may be accomplished by commercial airline, rental car, City-owned vehicle, rail, personal vehicle, courtesy transportation, or local public transportation, shuttle service, shared ride service or taxi. Authorization will only be given for the means that is most economical and beneficial to the City. (d) Miscellaneous Travel Expenses-The City shall reimburse the Traveler for meals at actual cost or according to per diem rates. The agency/department shall decide on the reimbursement method. Only one method of reimbursement may be used per trip. (e) Mileage: See "Vehicle Use Policy" 1. If City vehicle is available—The employee will use a City vehicle and no mileage will be reimbursed. If the employee is unable to obtain a gas card, any gas needed for the City vehicle will either be paid by City credit card, or reimbursed upon return with submission of appropriate receipts. If the employee chooses instead to use their own vehicle, they will be reimbursed at 60% of the IRS business mileage reimbursement rate. 2. If no City vehicle is available—The employee must submit Page 20 documentation showing they attempted to find a City vehicle and that none were available (i.e. email threads). The Department Head must also sign their approval for use of a personal vehicle. The employee will be paid 100% of the IRS business mileage reimbursement rate. (f) Travel expenses which require reimbursement shall be supported by itemized, detailed vendor receipts, with the exception of per diem. No reimbursements will be made without vendor receipts or documentation, except for certain instances where receipts are not customarily provided. (g) 5. Use of City Credit Card for Travel If a City credit card is used to pay for travel and training all the policies described in this section apply. If more than one traveler is paid for using the City card the card holder must breakdown the expense for each person to ensure compliance with per diem rules and rates. Amounts over per diem need to be approved by Department Head or reimbursed back to the City. 6. Non Reimbursable Travel Expenditures Travelers shall not seek reimbursement for goods or services (including transportation, lodging, etc.) that are provided free of charge, paid for by another source, or are not related to City business. If the travel advance exceeds allowable expenses, the Traveler shall refund to the City the excess funds within thirty days after completing travel. Only expenses of the Traveler shall be reimbursed. The City shall not reimburse travel expenses for persons other than the Traveler. H. Payment Methods 1. Credit cards Use of credit card accounts can be advantageous to the City. The City seeks to take advantage of the convenience of these accounts while paying minimal finance charges. Credit cards have been issued so that the City can minimize the amount of reimbursements needing to be made to employees for out-of-pocket purchases. (a) An employee will not be issued a City credit card without Department Director Page 21 and City Manager approval. (b) Items charged to credit card accounts are subject to all purchasing and approval requirements. (c) Cash advances are prohibited. (d) Departments making credit card purchases will make all necessary efforts to submit approved receipts to the Finance Department in time to avoid all finance charges on the card. Failure to submit approved receipts in time to avoid finance charges may be grounds for rescinding credit card privileges. (e) The Finance Director is responsible to authorize,to increase or decrease credit limits, block certain purchases by transaction codes, and issue and rescind card to city employees. I. Approval of Payments Two (2) signatures are required to approve payment for any good or service purchased by the City. The following must occur on each claim once submitted to Accounts Payable: 1. Authorizing signature: This will be routed electronically by Accounts Payable. Claims for payment must be signed electronically by the Department Director or their official designee, on record as authorized to sign in the Finance Department. By signing, they are certifying that the goods or services were received by the City, and are within the approved budget and agreed contract, if applicable. If they did not witness the delivery of the goods or services, they have verified with other staff members that the City received the goods or services. 2. Attest (witness) signature: any other City employee or board member who can also attest that the goods or services were received by the City. This individual is not required to be an authorized signer on record with the Finance Department. 3. Proof of authority for purchase: Attach a copy of the signed contract or other purchasing document (such as an invoice) to the claim for payment before submitting to the Finance Department for payment. J. Property Disposal Page 22 All City property and equipment (as opposed to real property such as land or buildings)that a department determines to be obsolete, outmoded, or unusable may be declared surplus and disposed of with prior approval of the City Commission.35 When feasible, any department declaring City property as surplus should determine if the property can be used elsewhere in the City prior to disposal. Whenever the City purchases equipment, as provided in MCA 7-5-4301 through 7-5-4310, equipment that is not necessary to the conduct of the City business may be traded in as part of the purchase price or may be sold at public auction, as provided in MCA 7-5-4310, in the discretion of the City Manager. 35 Sec. 2.06.870.A, BMC. Page 23 DEFINITIONS: 1. Bond— Bid: A written guaranty (cashier's check, certified check, bank money order, or band draft, drawn and issued by a national bank located in Montana or by a banking corporation incorporated in Montana or a bind bond, or bonds, executed by a surety corporation authorized to do business in Montana) submitted to the City by a Vendor with the submittal of a bid in the amount of 10% of the total bid amount. 2. Bond— Performance: A written guaranty (cashier's check, certified check, bank money order, or band draft, drawn and issued by a national bank located in Montana or by a banking corporation incorporated in Montana or a bind bond, or bonds, executed by a surety corporation authorized to do business in Montana) submitted to the City by a Vendor on winning the bid. A performance bond ensures payment of a sum of money in case the Vendor fails in the full performance of the contract. Performance bonds (at least 100% of the contract price) replace the bid bonds on award of the contract. 3. Bond — Payment: A written guaranty (cashier's check, certified check, bank money order, or band draft, drawn and issued by a national bank located in Montana or by a banking corporation incorporated in Montana or a bind bond, or bonds, executed by a surety corporation authorized to do business in Montana) submitted by a successful bidder as a surety that upon contract completion all sums owed by the Vendor to its employees, suppliers, subcontractors, and other credits will be paid on time and in full (at least 100% of the bid amount). 4. Change Order: Alteration to original contract involving the monetary amount, requirements, or time. 5. City: City of Bozeman. 6. Competitive Solicitation: Transparent procurement method in which bids or proposals from competing contractors, suppliers, or vendors are invited by openly advertising the scope, specifications, and terms and conditions of the proposed contract as well as the criteria by which the bids will be evaluated. Competitive Solicitation aims at obtaining goods and services at the lowest prices by stimulating competition and by preventing favoritism. 7. Construction Services: Work performed by an individual in building construction, heavy construction, highway construction, and remodeling work. 8. Consulting/Professional Services: A Consultant/Professional is an independent contractor who by experience, training, and education, performs specialized/technical activities over a limited time and pre-established term. The Consultant/Professional delivers or provides advice, recommendations, reports, analysis, evaluation, audit, survey, or other products of cognitive processes or expert services. Page 24 9. Contractor: Any individual or business having a contract with the City. 10. Contract for Term: A contract awarded by the City for goods or services which the City anticipates will be ongoing or as-needed for a specific term. 11. Cooperative Public Agency Procurement: Cooperative Public Agency Procurement refers to procurement involving more than one Public Agency as the purchaser. Public Agencies can procure cooperatively by approaching the market together (known as clustering), or by joining the contractual arrangement or standing offer arrangement of another Public Agency (known as piggybacking). 12. Emergency: A Department may find an Emergency situation which requires immediate acquisition of the goods and services. An Emergency situation includes situations that are a threat to public safety, health or welfare, or that requires immediate acquisition or repair to preserve or prevent damage to such things as public property, City operations and business, machinery or equipment. Such Emergency must be declared as provided in 10-3-401, MCA et seq. 13. Expending Authority: is the manager, elected official, department head, or agency head identified in the appropriating ordinance who appropriates funds to pay the expenses for conducting public business each year. Each Expending Authority is responsible for management of funds in his or her organization and for assuring that all expenditures are reasonable, necessary, and consistent with all city charter, ordinances, policies and procedures, and other applicable laws. 14. Evaluation Team: A team of no more than five (5) City employees appointed for the purpose of reviewing and evaluating RFP/RFQs. 15. For the benefit of the city (for the purpose of travel only): refers to those activities that enable the traveler to carry out responsibilities or functions useful to the City in a more productive, efficient, or beneficial way. For example, expenses incurred in relation to nonpolitical ceremonial functions of the City office would normally be for the benefit of the City. Expenses incurred in relation to activities, the primary purpose of which is the election or reelection of a city official, are not for the benefit of the City and are not allowable. It is the responsibility of the expending authority to make a determination as to whether expenses are "for the benefit of the City." 16. Invitation for Bid (IFB):An Invitation for Bid is a written invitation to prospective suppliers to submit a bid on materials and/or services. IFB is only a solicitation and does not qualify as an offer. 17. Official city business (for the purpose of travel only): is that which is required or useful for the benefit of the City to carry out the responsibilities of the Traveler or agency or to enhance the Traveler's or agency/department's effectiveness in the performance of city business. Page 25 18. Pre-Bid Conference: The Project Manager schedules a Pre-Bid Conference to fully explain the details and scope of work involved. All prospective bidders are invited to ask questions. 19. Prevailing Wages: When a Vendor performs skilled craft or laborer services, Prevailing Wages may apply. State law requires that employees working under a public contract within certain labor categories receive at least the Prevailing Wage. For purchases of services where such labor categories are required, the City will enforce Prevailing Wage requirements, regardless of the cost. 20. Professional Services: A consultant/professional is an independent contractor who by experience, training, and education, performs specialized or technical activities over a defined period of time. The consultant/professional delivers or provides advice, recommendations, reports, analysis, evaluation, audit, survey, or other products of cognitive processes or expert services. Professional services from engineers, architects, and land-surveyors are subject to special procurement laws. 21. Request for Proposals (RFP): A Request for Proposals is a solicitation by the City for specific and detailed proposals from interested professionals and consultants to complete a specified project. In response to an RFP, the proposal must include all the information requested for an RFP. If requested in the RFP, the proposal must provide references and contact information for previously completed similar projects listed in the RFP. The proposal must include a detailed outline of the specific approach and methods used to perform the work required within the time specified in the RFP. The proposal must include a schedule for performing the work, the interim and final work product, and delivery dates. The proposed work schedule must include a task breakdown showing sub-tasks, the time estimated for each, the role of any sub- consultant, and the total time estimated for the project. The proposal must also identify any services or support required of, or expected to be, supplied by the City in order to complete the work identified in the RFP. 22. Request for Qualifications (RFQ): A Request for Qualifications is a solicitation by the City for expressions of interest to provide a professional service and/or to complete a specific project. In response to an RFQ the professional must assemble and submit a listing of general qualifications to perform the work identified in the RFQ and must provide specific examples of directly related experience performing the work described in the RFQ. Included in the response must be a listing of personnel and/or other consulting professionals with their individual qualifications and related experience to perform the work. In addition, the response must indicate the ability to begin and complete the work according to any schedule indicated within the RFQ. 23. Sealed Bid: A Competitive Solicitation sealed and submitted to the City Clerk at a specific time on a specific date and opened in a public forum. 24. Sole Source: Goods or services which are only available from one supplier or service Page 26 provider. Sole Source conditions include such things as patented or proprietary items available from a single source; a single source required in order to function with existing equipment, systems, programs, or services; situations where the Sole Source is the only practical way to meet the City's requirements; delivery deadlines that only a single source can meet; or security requirements that limit information to only a single Vendor. 25. Surplus Property: Surplus Property is property that is either no longer in use or for which there is no further plan for use. It includes all tangible assets such as equipment, materials, supplies, and furniture. 26. Travel advance: is money advanced to the traveler in an amount reasonably estimated to cover some or all of authorized travel expenses. Advances are considered to be loans to the Traveler. Travel advances shall not exceed the per diem city allowance for meals and incidental expenses (M&IE), the actual cost of lodging, plus actual cost of other allowed travel expenses related to the travel on official city business. 27. Travel expenses: are reasonable, appropriate, and necessary travel and business related expenses(s) that are incurred while carrying out official City business. Travel expenses include costs that cover per diem expenses; transportation expenses; meals and/or coffee and light miscellaneous refreshment; and miscellaneous business expenses related to official City travel. 28. Traveler: is an Officer, City Employee, or Contractor who incurs travel expenses on official City business and is entitled to reimbursement of those expenses (for the purpose of travel only). 29. Vendor: A manufacturer, producer, seller, supplier, contractor, engineer, technician, etc. with which the City purchases materials or services. Page 27 i l I I I i I � � � t