Purchasing Manual

The Town is committed to Green Purchasing Practices in obtaining goods and services. To that end, environmentally preferable products are defined as materials or products that are durable, repairable, reusable, or recyclable; have a minimum of packaging, toxic content or chemical hazard potential; are resource or energy efficient in any or all phases of their manufacture, use, and disposal; or in their use or disposal minimize or eliminate the Town's potential environmental liability.

The Town shall fully consider environmentally preferable products and services when appropriate. However, nothing in this policy shall be construed as requiring a purchaser or contractor to procure products that do not perform adequately for their intended use, exclude adequate competition, or are not available at a reasonable price in a reasonable period of time.

SECTION I--AUTHORITY TO PURCHASE

UNDER $1,001: Department Heads or other authorized employees, as designated by the City Manager, have the authority to approve purchases up to $1,000. It is the Department Head's responsibility to insure that unencumbered funds are available and that the most competitive prices are being obtained for purchases under $1,001. All purchases, regardless of dollar amount, will require a Requisition, except for Field Purchase Orders as discussed under Section II.
$1,001--$9,999: A Requisition for a purchase must be accompanied by a minimum of 3 quotes obtained from vendors OR sufficient justification to warrant the purchase of an item from a specific vendor
GREATER THAN $9,999: Purchases exceeding $9,999 require sealed bids and City Council approval. In some instances, (sole source, emergency purchase, State Joint Purchasing) Council may waive formal bidding. Council approval to waive formal bidding MUST be granted prior to the Purchase Order being issued. Purchase Orders will be issued immediately after Council approval. Refer to Section III for instructions on obtaining sealed bids.
APPROVED BUDGET ITEMS/STATE JOINT PURCHASING: The purchase of items available through state joint purchasing which are included in the currently approved annual budget and whose cost exceeds $9,999, may be made without prior Council approval. Items exceeding $1,001 meeting the above criteria may be purchased without obtaining quotes. It is the responsibility of the Department Head to assure that the item is funded in the currently approved budget. The Department Head will inform the Purchasing Office under comments on a Requisition if the item to be purchased is in the currently approved annual budget. The City Council shall be notified by the City Manager of purchases in this category exceeding $9,999.
EMERGENCY PURCHASES: Department Heads shall be authorized to make emergency purchases, not exceeding $9,999, in cases where failure to do so could result in an immediate and apparent loss to the Town. The City Manager or his designee, shall be notified of an emergency purchase at the first opportunity. All emergency purchases in excess of $9,999, using the Requisition/Purchase Order process, which normally require formal bids, can only be authorized by the City Manager. The Purchasing Officer shall be notified immediately and shall provide any necessary assistance. When emergency purchases exceed $9,999, the City Manager shall render a full report to the City Council at or before its next regularly scheduled meeting.
EXEMPTIONS: In some instances, it will be difficult or result in unnecessary effort to conform to the previous regulations. Examples would be the purchase of office furniture or carpeting to match existing; the purchase of a second item, the first of which had been bid the month before; etc. If the Department Head believes that compliance with these regulations would result in undue, unnecessary effort, contact the Purchasing Officer and explain your reasoning. The City Manager may grant exemptions from the foregoing rules if conformance with the regulations would result in undue hardship or unnecessary effort to the Town.

SECTION II--PURCHASES

A Requisition is required to initiate a purchase. There are three parts to a Requisition. The first part lists the vendor being selected; where to deliver the goods ordered; when the goods are to be delivered by; and if this will be a purchase or a blanket order. The second part tells the vendor what goods and services are being requested; if related to inventory and/or fixed assets where the goods are located; quantity, unit of measure and cost; budget line item; and if associated with a project, the project number. Requisitions using Federal or State Grant funds may contain a Project Number that is assigned to the Grant. The third part reviews budget line item availability. For those purchases exceeding $1000 departments must use the “Comments” or “Quotes” section to list quotes obtained for the purchase. If quotes were not obtained or if the department is recommending buying from other than the low quote, the “Comments” section must be used to explain the rationale

Requisitions requesting computer components and automotive/mechanical parts must be approved by those operating departments, to ensure compatibility of goods and services.

Purchase Orders will be generated upon receipt of a Requisition by the Purchasing Office and returned to the requesting department for their distribution to the vendor. In the event a Requisition is returned to the generating department, comments will be added as to why the request was denied.

Blanket Purchase Orders will generally be initiated only at the beginning of the fiscal year. A Blanket Purchase Order is used for a vendor where purchases are made on a regular basis. If during the fiscal year a department decides to generate a Blanket Purchase Order, the Department Head will contact the Purchasing Office prior to initiating a Requisition. Blanket Purchase Orders will be generated by the Purchasing Office upon receipt of a Requisition and returned to the requesting department in a timely manner.

Field Purchase Orders are to be issued only for utility payments; annual dues and subscriptions; travel advances; employee reimbursements; refunds; petty cash reimbursement; and only Town’s credit card statements. In the future this list may be modified by direction of the City Manager. Additionally, by direction of the City Manager, departments will not use this process in order to circumvent appropriate processing. Field Purchase Orders cannot be used for fixed asset or inventory items.

Vendor Records will be established by the Purchasing Department. Establishment of all new vendors requires submission of a W9 Form from the Vendor. It shall be the responsibility of the Department involved to obtain the completed W9 form from the vendor and forward it to the Purchasing Department. Miscellaneous vendors are to be used only for refunds or a one-time payment under $600 per calendar year. Miscellaneous Vendors cannot be used on Requisitions.

SECTION III BIDDING

NOTE: AS A HOME RULE MUNICIPALITY, THE TOWN IS NOT BOUND BY THE PROVISIONS OF PUBLIC ACT 85-0854, COMMONLY REFERRED TO AS QUALITY BASED SELECTION.

Bidding is the method of purchasing goods and services through formal written solicitations. The Town requires bidding on all purchases in excess of $9,999 (except as discussed in Section I). Purchases for amounts less than $9,999 MAY also be bid.

Responsible bidder for construction contracts for public works which require the payment of prevailing wages under the Town of Normal Prevailing Wage Ordinance, means a bidder who meets all of the job specifications as required in the bid documents and as determined by the Town of Normal and has in place an apprenticeship and training program with craft specific programs approved and registered with the United States Department of Labor’s Bureau of Apprenticeship and Training. The foregoing shall not apply to contracts less than $100,000.00 in value nor to contracts determined by the City Manager to be an emergency purchase. The Purchasing Director shall require contractors to certify compliance with this provision by executing a certification substantially similar to Exhibit A attached hereto.

INVITATIONS TO BID: Invitations to Bid shall be advertised at least once in a local newspaper. The bid package shall be submitted to the Purchasing Officer for approval prior to being sent to the Office of the City Clerk, which shall be responsible for forwarding the Invitation to the publisher. The advertisement for bid shall appear in the publication not less than ten (10) days prior to bid opening.

Invitations to Bid shall include a general description of the articles to be purchased, state the location and times that Bid Packages may be obtained and state the date, time and place of the bid opening (See attachments A Boiler Bid (Public Works, construction, other services); B Bid Boiler (Products).

Invitations to Bid shall also be sent to potential bidders. A list of potential bidders shall be created by the Department soliciting the bid and forwarded to the Purchasing Officer as part of the bid package.
INSTRUCTIONS TO BIDDERS: All bid packages shall include Instructions to Bidders properly notifying the bidder of Town policies and procedures related to bidding.
PRE-BID CONFERENCE: Departments are encouraged to schedule a pre-bid conference, sufficiently in advance of a bid opening, to explain the Town’s policies, procedures, and specifications and hear questions from prospective bidders.

STATE STATUTE PROHIBITS ANY TOWN EMPLOYEE FROM DISCUSSING ANY INFORMATION CONCERNING THE SPECIFICATIONS OF A BID OR POTENTIAL SUBCONTRACTORS OUTSIDE THE PUBLICLY AVAILABLE OFFICIAL INVITATION TO BID, OR PRE-BID CONFERENCE.
SPECIFICATIONS: The Purchasing Officer and the department are jointly responsible for the preparation of specifications. The specifications shall state the standards acceptable to the Town, but shall not be overly restrictive so as to limit the number of bidders. Brand names may be used as a guideline; however, vendors are invited to submit items of equal or greater value/performance.
BID DEPOSITS: All construction bids in excess of $9,999 shall require a bid deposit in an amount of five (5%) percent of the NET bid. THE PURCHASING OFFICER MAY WAIVE THIS REQUIREMENT WHEN IT IS DEEMED IN THE BEST INTEREST OF THE TOWN. The Department Head with approval of the Purchasing Officer shall determine the amount of the bid deposit. A bid deposit shall be in the form of a Certified Bank Check, Cashier’s Check, or Bid Bond. The Town as a guarantee will retain this deposit that the bidder fulfills the terms of the bid. After award of the contract, unsuccessful bidders shall promptly have their bid deposits returned. The Department Head shall notify the Town Clerk as to when the bid deposits are to be returned.
PERFORMANCE BONDS: The successful bidder on all construction and capital improvement projects n excess of $10,000, shall furnish a Performance Bond equal to one hundred (100%) percent of the total bid. The Performance Bond shall be furnished before any contracts are executed or work commences. The company acting as surety for any bond issued shall be licensed to do business in the State of Illinois. Invitations to Bid shall clearly state that a Performance Bond will be required.

The failure of a contractor to satisfactorily fulfill any obligation shall be cause for the forfeiture of the Performance Bond.
BID PROPOSAL FORM: All bids shall be submitted on a bid proposal form supplied by the Town. If several items are being bid at one time and a vendor cannot bid on all items, the vendor should mark all items on which they are not bidding with the words “No Bid”. Care should be exercised that all amounts on the bid are correct. Extensions (sum total of multiple items) should be checked to insure accuracy. Prices must be either in ink or typewritten.

Any corrections must be initialed in ink by the person signing the original bid proposal. In case of a difference between unit price and extension, the lowest price shall be deemed correct. An appropriate officer or employee of the company bidding must sign the proposal.
HOLD HARMLESS: To the fullest extent permitted by law, the Contractor/Vendor must agree to defend, indemnify and hold harmless the municipality, its officers, agents and employees, against all injuries, deaths, loss, damages, claims, patent claims, suits, liabilities, judgments, cost and expenses, which may in any wise accrue against the municipality, its officers, agents and employees, arising in whole or in part or in consequence of the performance of this work by the Contractor/Vendor, its employees, or subcontractors, or which may in any wise result thereafter, except that arising out of the sole legal cause of the municipality, its agents or employees, the Contractor/Vendor shall at its own expense, appear, defend and pay all the charges of attorneys and all costs and other expenses arising therefore or incurred in connections therewith, and, if any judgement shall be rendered against the municipality, its officers, agents and employees, in any such action, the Contractor/Vendor shall, at its own expense, satisfy and discharge the same.

Contractor/Vendor expressly understands and agrees that any performance bond or insurance policies required by this contract, or otherwise provided by the Contractor/Vendor, shall in no way limit the responsibility to indemnify, keep and save harmless and defend the municipality, its officers, agents and employees has herein provided.
SAMPLES: If samples are to be submitted with a bid, they will be held until a bid award is made. Should a vendor wish to submit a sample for trial use, the product must be presented at no cost or obligation to the Town.
SUBMITTING BIDS: All bids must be sealed and marked as indicated in the Instructions to Bidders and must be received before the time stated for the opening of bids. As a safeguard against tampering with bids, upon receipt the Town Clerk shall stamp the sealed envelope containing the bids. Bids shall be placed in a vault or other locked receptacle until the time specified for opening. Under no circumstances shall the bids leave the Town Clerk’s control until after bids are opened and publicly read aloud. FAXED BIDS SHALL NOT BE ACCEPTED.
WITHDRAWAL/CHANGE OF BIDS: Bidders have the right to withdraw their bids or to make changes to their bid prior to the bid opening. A bidder may withdraw his bid by submitting a written request to the Town Clerk. No bid may be withdrawn after the closing time for receipt of bids. Changes to bids shall be accomplished by submitting a new Bid Form with the notation “Revised Bid” and the date of submission to the Town Clerk prior to bid opening. This change shall be submitted in a separate envelope marked the same as the original bid with the words “Revised Bid” and the date the revision is submitted. At the bid opening, the Town Clerk shall announce that a revision has been submitted and the date the revision was submitted. Upon opening of the bid, the Town Clerk shall open the envelope with the revision, read the revised price, and add the revised form to the original bid packet.
OPENING OF BIDS: Bid proposals will be publicly opened and read aloud in a designated place on the date and time specified in the Invitation to Bid. The Town Clerk or authorized representative shall preside at all bid openings. The Department Head involved or the Purchasing Officer shall witness the bid openings. Upon opening, all bid packages become a matter of public record and will be available for further inspection in the Office of the Town Clerk.
LATE BIDS: No bids shall be accepted after the stated time of the bid opening. Any bid received late shall remain unopened and returned to the bidder.
TABULATION AND ANALYSIS: After opening, the Clerk shall provide all bids to the Department Head involved. The Department Head shall tabulate the bids to include the name of the bidder, bidder’s address, confirmation of bid deposit, unit prices and total bid price. Original bids, along with the tabulation, shall be returned to the Clerk and placed on file and made available to any interested party. The Department Head shall send a copy of the tabulation to the Purchasing Officer and the Office of the City Manager, along with the Department Head’s recommendation.

If an award to other than the lowest bidder is recommended by the Department Head, justification must be made, in writing, to the Purchasing Officer. The Purchasing Officer shall then provide a written recommendation to the City Manager. The City Manager will make the final recommendation to the City Council.

The following factors shall be used in determining the lowest responsive bid:
1. The ability, capacity and willingness of the bidder to perform the contract or provide the service required.
2. Whether the bidder can perform the contract or provide the service promptly or within the time specified without delay or interference.
3. The reputation, judgement, relevant experience and efficiency, as determined by contact with prior customers, of the bidder. The bidder shall furnish to the Department Head involved a minimum of three (3) previous clients for whom the same or similar work was performed.
4. The previous and existing compliance by the bidder with laws and ordinances relating to the contract, purchase or service.
5. The equipment, personnel, and facilities available to the bidder to perform the contract or provide the services.
6. The quality, availability, and adaptability of the supplies, materials, equipment or services to the particular use required.
7. The ability of the bidder to provide maintenance and service.
8. The amount and conditions, if any, of the bid.
9. Previous experience providing products or services to the Town.
REJECTION OR WAIVING TECHNICALITIES IN BIDDING: The City Council reserves the right to reject any and all bids and to waive technicalities in bidding if such action is deemed to be in the best interests of the Town. The City Manager shall recommend to the City Council when a bid should be rejected and technicalities waived. The ultimate authority to accept, reject or waive technicalities rests with the City Council.
AWARD OF BIDS: The City Council has the final authority in awarding bids. After the City Council has voted to accept the most responsible bid, the Department Head shall issue a purchase Order to the successful bidder. The purchase is not consummated until the vendor receives the Town’s Purchase Order.
APPEAL AND INSPECTION OF BIDS: A bidder wishing to appeal a bid award must present a written appeal to the City Manager.
ACCEPTANCE OF WORK: Before any work, equipment or services are accepted, invoice paid or Performance Bond returned, the Department Head shall inspect the materials, equipment, or services performed to insure that all conditions of the contract have been met. If all conditions have been met, the Department Head shall notify the Finance Department by issuing a receipt against the purchase order for payment. If any condition(s) have not been met, the Department Head shall notify the Purchasing Officer, in writing, of the variance(s). The Purchasing Officer and Department Head shall then work directly with the vendor to resolve any variances. Final payment shall not be made until the vendor is in compliance with the contract.
NON-DISCRIMINATION: Bidder/Supplier and all sub-contractors shall, as a party to a public contract:
1. Refrain from unlawful discrimination in employment.
2. By submission of the bid or proposal, the bidder/supplier certifies that he is an “equal opportunity employer” as defined by Section 2000 (e) of Chapter 21, title 42, U.S. Code Annotated and Executive Orders #11246 and #11375, which are incorporated herein by reference. The Equal Opportunity Clause, Section 6.1 of the Rules and Regulations of the Department of Human Rights of the State of Illinois, is a material part of any contract awarded on the basis of this bid or proposal.
3. Bidder/supplier shall comply with standards set forth in the Title VII of Civil Rights Act of 1964, 42, U.S.C. s2000 et seq.; The Human Rights Act of the State of Illinois, 1968 Chapter 775 ILCS 5/1-101 et seq.; and The Americans with Disabilities Act.

SECTION IV PETTY CASH

Petty Cash has been established to expedite the miscellaneous purchases and paying of small bills which need not be handled through regular Town purchasing procedures. These funds are to be used by all departments for facilitating Town purchases. These funds are not to be used for the purpose of circumventing the purchasing procedures of the Town.

The Petty Cash fund shall be administered by the Finance Department. Requests for funds from Petty Cash must be submitted to the Finance Department on vouchers as supplied by the Finance Director. Petty Cash may be requested in advance of a purchase, although reimbursement for previous purchases is preferred.

There are two criteria for the use of Petty Cash funds:

Items purchased that are not ordinarily stocked or purchased by a Department.
Purchases which do not exceed $50.

Cash receipts must be attached to any requests for a Petty Cash reimbursement. The name of the vendor a description of transaction and account number must appear on the receipt and on the voucher (See attachment C).

The City Manager may authorize the establishment of individual Petty Cash funds in other departments. All other guidelines contained in this section shall apply to a department’s Petty Cash fund.

SECTION V GENERAL GUIDELINES

SUFFICIENT FUNDS: No purchase(s) shall be made unless sufficient unencumbered appropriations are available for payment. It is the responsibility of the Department Head to assure that sufficient unencumbered funds are available PRIOR TO issuance of a Purchase Order. If an item or service is needed and funds are not available, a Budget Adjustment Request Form (See attachment D) must be submitted to and approved by the Purchasing Officer and Finance Director prior to the issuance of a Requisition and Purchase Order.
TRANSPORTATION AND DELIVERY CHARGES: All shipments should be F.O.B. (Free On Board) unless otherwise stated The Department Head shall make every effort to determine any transportation or delivery charges prior to processing a Purchase Order. If transportation charges are over 10% of the total expense of the Purchase Order, notification to the Purchasing Office by email with the dollar amount of charges to be added to the Purchase Order, must be done prior to Receipting against the Purchase Order.
INSPECTION AND TESTING: The inspection and testing of delivered materials or equipment should occur at the time of delivery. Departments should exercise care to insure that the quantity and quality of the delivered goods are as ordered. Any discrepancies between the order and the receipt should be noted by the Department Head. Upon receipt of goods and services ordered, and if in good condition, departments will receipt against the issued Purchase Order and forward the invoice with the Purchase Order number written on the top right corner in red ink to Finance for final processing and payment. Shipping and handling charges if under 10% of the total expense of the Purchase Order will be added by Finance during the final processing for payment if not part of the original Requisition. For invoice totals over 10% of the total expense of the Purchase Order, a new Requisition will need to be generated stating the reason for the additional cost and identifying the Purchase Order the Requisition is to be added to. For goods and services received under a Blanket Purchase Order, departments will receipt for goods and services received and forward the invoice with the Blanket Purchase Order number written on the top right corner in red ink to Finance for final processing and payment.
COOPERATIVE PURCHASING: Cooperative purchasing, defined as more than one unit of government purchasing goods and services together, is strongly encouraged. When the Town purchases on behalf of other units of government, the procedures defined in this manual shall be followed. In instances where other units of government are purchasing on behalf of the Town, the department shall issue a Purchase Order to the other unit of government for the goods being supplied.
PROFESSIONAL SERVICE CONTRACTS: The purchase of professional services (e.g. auditors, architects, consultants, etc.) must be treated differently than the purchase of hard goods. In the purchase of hard goods, it is generally accepted that the lowest responsible bidder meeting specifications is awarded the bid. In purchasing services, there are no specifications as such, therefore, emphasis should be on accurately evaluating the capability of the firms that are interested in performing the services. The Request For Proposal/Qualifications (RFP/RFQ) method is the most appropriate in such cases. The RFP/Q should include the following:
1. A work statement or performance specification.
2. Time frames in which the work is to be completed.
3. Specific criteria to be used in evaluating the proposal. (These criteria can cover the offerer’s proposed approach to accomplish the work, management capability and price.)
The RFP/Q should request the offerer to provide the following information:
1. An understanding of the problem or program; the work to be done; and, the approach to be used to achieve the objectives, including, detailing of tasks involved in the offerer’s approach.
2. Facility and capability data, including related experiences and resumes of key personnel.
3. Time frame of milestone accomplishment (if not defined in the RFP/Q).
4. Pricing, including a flat fee or percent and any incidentals (e.g. mileage, per diem, etc.).
In evaluating proposals and recommending award, the following criteria should be used:
1. GENERAL QUALITY AND RESPONSIVENESS OF OFFERER:
  1. Responsiveness to terms, conditions and time frames.
  2. Completeness and thoroughness.
  3. Grasp of the problem or of work to be performed, and of approach to be used.
2. ORGANIZATION AND PERSONNEL:
  1. Evidence of good organizational and management practices.
  2. Qualifications of personnel.
  3. Experience and past performance.
3. PRICE AND PROPOSAL PRICE BREAKDOWN OR PRICE RANGE AND COST SCHEDULE:
The two most important differences of RFP/Q’s are:

They are NOT bids, they are proposals and, as such, can be negotiated subsequent to opening.
The submission of pricing information is NOT synonymous with competitive bidding, whereby price is the primary evaluating factor and the low responsible bid is accepted. Cost, in many instances, can become a secondary consideration.

PROHIBITIONS: Employees are hereby prohibited from purchasing any item in the name of the Town for personal use. Employees are further prohibited from using their status as a Town employee to coerce special consideration in the purchase of goods and/or services for personal use.
ADHERENCE TO POLICY: Departments will be required to strictly adhere to all procedures contained in this manual. It will be the Department Head’s responsibility to insure compliance within their department.

Rev. 9/03/2002

This page last modified 02/07/08.