HomeMy WebLinkAboutAdministrative Order No. 2009-06 Purchasing Policy CO•
Administrative Order No. 2009 -06 Purchasing Policy
Effective November 1, 2009:
The City of Bozeman Purchasing Policy is hereby adopted.
Ir
Chris Kukulski, City Manager
Dated:
l� -12- -09
'II
Purchasing; Policy Continued
Aa
City of Bozeman
9 TH PURCHASING POLICY
Cam O Dated: October 6, 2009
Purpose: The City of Bozeman takes care to ensure that we comply with federal and state laws and city
ordinances for all expenditures. The public can rely on us to make fair, competitive, and open
purchasing decisions that are in the best interest of the City.
Policy:
1) GENERAL PROVISIONS:
a) No employee will personally benefit from a contract or purchase entered into by the City of
Bozeman.'
b) No employee will use city funds for personal purchases of any nature."
i) Authorized personal use of city provided cell phone, data devices, and internet usage is
allowed in certain cases, according to the City's Phone and Internet Usage policy.
ii) Authorized personal use of city provided vehicles for commuting is allowed in certain cases,
according to the City's Vehicle Usage policy."
iii) Purchases under the Dell Employee Purchase Program are authorized as an employee
benefit, being repaid through payroll withholding.
c) No employee will receive a commission, profit, gratuity, or gift as a result of any contract or
purchase made by the city.
d) Itemized receipts and invoices are required for all purchases. Details must be shown to ensure
the public can determine EXACTLY what is being paid for, including individual units purchased
and /or hours of service and the associated rate for each.
e) All boards, committees, or other recognized entities of the City of Bozeman wherein a City
employee is the authorized approver of the board's purchases must comply with this purchasing
policy. Any board or committee given independent purchasing authority by law or by the City
Commission, including the Library Board of Trustees, the Parking Commission, the several
Business Improvement Districts and urban renewal agencies should comply, to the greatest
extent possible, with the requirements of this policy.
2) TRANSACTIONS WITH EMPLOYEES AND RELATED PARTIES:
a) The City does not contract with or purchase goods or services from employees or employee
owned businesses.'
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Purchasing Policy Continued
b) The City does not contract with or purchase goods or services from a business owned by an
employee's spouse, ex- spouse, mother, father, sister, brother, child, step child, or adopted
child."
c) Waiver of these employee and related -party restrictions can only be granted by the City
Commission BEFORE the purchase or contract has been entered into. Such a waiver requires a
publicly advertised hearing for that specific purpose, along with consideration of the
circumstances and factors outlined in MCA 7 -5 -4109 (2).
d) Provisions for annual review and disclosure of employee- vendor relationships will be developed
by the Finance Department, with disclosures on file in the City Clerk's office.
3) CREDIT CARD TRANSACTIONS: Use of credit cards accounts can be advantageous to the City. We
seek to take advantage of the convenience of these accounts while paying minimal finance charges.
a) Items charged to credit card accounts are subject to all existing purchasing and approval
requirements.
b) Cash advances are prohibited.
c) Departments making credit card purchases will make all necessary efforts to submit approved
receipts to the Accounting Division 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.
d) The Finance Director is responsible to authorize, to increases or decreases credit limits, block
certain purchases by transaction codes, and issue and rescind cards to city employees.
4) 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 existing purchasing and approval
requirements.
a) ALL meal and food purchases must have receipts signed by Department Directors.
b) Per Diem amounts are established in the Travel Training Policy. Only Department Directors
may approve exceptions to the Per Diem amounts.'
c) Receipts for meals eaten at restaurants while not in an overnight travel status must be
submitted to the Accounting Division on a completed "Travel Advance" or "Meals Taxable
Fringe Benefit Form whichever is applicable.
d) The purchase of alcohol and tobacco with city funds is prohibited.
5) INFORMATION TECHNOLOGY SOFTWARE HARDWARE PURCHASES: Computers, servers,
telephones, cell phones, personal data devices, printers, etc. ALL technology- related purchases,
both hardware and software, must be approved by the Director of Information Technology (or their
designee) PRIOR to purchase.
6) PREVAILING WAGE REQUIREMENTS: Certain "public works construction contracts" and other city
"non- construction" contracts over $25,000 must pay Montana's prevailing wage. Refer to Section
18 -2 -401 MCA for definitions of these services.
7) DOCUMENTATION AND SELECTION OF VENDORS:
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Purchasing Policy Continued
a) PURCHASING GOODS: ie. Supplies, materials, equipment, or other assets. The City seeks the
lowest life -cycle costs when comparing like goods. Estimated useful life and maintenance costs
must be documented whenever they are factored into purchasing decisions.
1. Up to $2,500 per unit. The department may purchase at the Department Head's
authorized signatory's discretion.
2. $2,501 $9,999 per unit. The department may purchase at the Department Head's
authorized signatory discretion, with a minimum of two phone quotes (or other
documentation, i.e. catalog price lists, online price listings, etc.) for the item.
Documentation must accompany the approved claim.
3. $10,000 $49,999 per unit. A minimum of two written quotes (on vendor's stationary) is
required. Documentation must accompany the approved claim.
4. $50,000 and up for auto, trucks, equipment, machinery, supplies, construction, repair
and maintenance. All items in this range must follow the formal advertisement process
outlined in state law.
b) PURCHASING SERVICES: Contracts for services are awarded to the lowest most responsible
vendor or bidder. When determining which vendor or bidder 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. (Including: qualifications, available staff, references, delivery date,
inspection, testing, quality and workmanship, etc.)
1. For all Architectural, Engineering, and Land Surveying services: Advertised Requests for
Proposals or Requests for Qualifications must be made for services costing over $20,000.
Refer to Section 18 -8 -201 MCA for the procedures required for selection of these vendors.
2. Other Professional Services, including non construction services as defined in Section 18-
2 -401 (9) MCA:
a. Professional services totaling up to $2,500 per agreement.
The department may purchase at the Department Head's authorized signatory's
discretion.
b. Professional Services totaling between $2,501- $50,000 per agreement:
At least three written quotes must be accumulated, with the "lowest most
responsible vendor" selected.
c. Professional Services totaling $50,000 or more per agreement:
A published "Request For Proposals" must be made, with the "lowest most
responsible vendor" selected.
c) Government Services (GSA, WSCA, etc.) Procurement: Supplies, equipment, and other
professional services may be purchased from another government entity (including government
purchasing programs) without bids or advertisements when done so at a substantial savings to
the City.
i) It should be noted that these purchasing arrangements are often, but not always the lowest
price available.
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Purchasing Policy Continued
ii) Requirements for prevailing wages must still be met for "public works construction
contracts" and "non- construction" contracts over $25,000. Refer to Section 18 -2 -401 MCA
for definitions of these services.
d) Special Cases for Sole Source Purchases: In the case of some of the City's information
technology, building mechanical, public works utility, and other infrastructure, it is in the best
interest of the City to maintain a compatible and reliable system provided by a single vendor.
For cases where:
i) there is only one source for the supply or service item, or
ii) only one source is acceptable or suitable for the supply or service item, or
iii) or the supply or service item must be compatible with current supplies or services",
the requirements for quotes on purchases up to $49,999 may be waived by the Director of
Finance. Approval must be documented and obtained from the Director of Finance PRIOR to
purchase.
8) APPROVAL OF PURCHASES: Two (2) signatures are required to approve the payment for any good
or service purchased by the City. The following must appear on each claim submitted to the
Accounting Division.
i) Authorizing signature: Must be the Department Director or their official designee, on record
as authorized to sign in the Accounting Division. In 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 good or services were received.
ii) 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 Accounting Division.
9) EMERGENCY PURCHASING PROVISIONS: In the case of an emergency or disaster declared under
Section 10 -3 -401 MCA, these purchasing rules may be temporarily suspended.
10) VIOLATIONS OF THIS POLICY: Violations of this policy are subject to disciplinary action in
accordance with the Employee Handbook and any applicable union contacts.
Ordinance No. 1759, Ethics Ordinance, Section 2.01.010 and Section 2.01.040(D)
Ordinance No. 1759, Fthics Ordinance, Section 2.01.040(D) and Section 2.01.050
Administrative Order 2007 -06A, Information Technology Use Policy, Page 3
Administrative Order No. 2007 -03, Vehicle Use Policy
Ordinance No. 1759, Ethics Ordinance, Section 2.01.090
Section 7 -5 -4109, Montana Code Annotated (MCA)
Section 7 -5 -4109, Montana Code Annotated (MCA)
Ordinance No. 1759, Ethics Ordinance, Section 2.01.100 (D)
Administrative Order No. 2007 -04, Training and Travel Policy, Section VI.
Internal Revenue Code, Section 119. See also: Taxable Fringe Benefit Guidelines, IRS.
x Administrative Order No. 2007 -04, Training and Travel Policy, Guidelines on Personal Expenses.
x Section 7 -5 -4302, MCA
Debcon, Inc. v. City of Glasgow, 2001 MT 24, 305 Mont, 391, 28 P.3d 478
Section 7 -5 -4303 (2), MCA
Section 18 -4 -306, MCA
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