Appendix F. PURCHASING POLICY AND PROCEDURES
POLICY STATEMENT
Recognizing its obligations to the public, to the services rendered by the City government, to the business community, and specifically to the overall efficiency and value for the taxpayer, it is hereby declared the policy of the City of Clarksville to provide an effective central purchasing program through which, by means of competition based on fair and equal opportunity extended to qualified persons and firms interested in doing business with the City and City departments, the using departments may obtain needed goods and services at competitive costs consistent with suitable performance standards, quality and time of completion.
The purchasing policies and procedures described herein shall apply to the expenditure of all federal, state, and local appropriated funds.
ENABLING LEGISLATION
ORDINANCE 58-2003-04
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLARKSVILLE, TENNESSEE:
That a centralized purchasing department is hereby established to handle all purchasing and contracting for all departments of City government. Plans and operating procedures for the new department shall be developed under the oversight of the Finance & Administration Committee, by the Director of Human Resources, and other appropriate City employees with technical assistance from the Municipal Technical Advisory Service. The department shall begin functioning on or before July 1, 2004.
FIRST READING: January 5, 2004
SECOND READING: February 5, 2004
PUBLICATION DATE: February 8, 2004
TCA 6-56-301, Municipal Purchasing Law of 1983, 6-56-302(1) provides that the Municipal Purchasing Law of 1983 shall not apply to purchases by authorized officials in municipalities having charter provisions or private act requirements governing competitive bidding and purchases.
PURCHASING DEPARTMENT RESPONSIBILITIES
The Purchasing Department's responsibilities include:
1.
Using the most cost effective, best practices to procure quality goods and services, which present the best value and are of the best interest to the City;
2.
Maintaining a comprehensive qualified vendors list;
3.
Advertising solicitations as described herein;
4.
Disposal of surplus property, seized property and unclaimed personal property, by means of online auctions;
5.
Disposal of surplus real property in accordance with city code and described herein;
6.
Oversight of the City's PCard program, to ensure proper use by cardholders;
7.
Conducting and/or participating in procurement education and training programs for City employees;
8.
Shall approve all requisitions over $3,000.00 that are properly documented.
These services are offered to all City departments, agencies of the City and agencies funded by the City, when payment responsibilities rest with the City.
REQUESTING DEPARTMENT RESPONSIBILITIES
The procurement process is a combined effort between the using department or agency and the Purchasing Department. The responsibilities of the using department and/or agencies include:
1.
Allow ample lead-time for the Purchasing Department to process bid/proposal requests, issuance of purchase orders, execution of contract documents and any other task performed by the Purchasing Department.
a.
2 weeks is the minimum lead-time for the sealed bid/proposal process.
b.
If a shorter lead-time is requested, it will be at the discretion of the Purchasing Department.
2.
Plan purchases in advance to eliminate avoidable urgent or emergency situations.
3.
Ensure funds have been allocated and approved by the City Council.
4.
Provide the Purchasing Department with a clear and accurate description of the technical requirements for the material, product or service to be procured. Such description must not contain information which restricts the competitive process. Templates are available to aid the departments.
5.
Advise the Purchasing Director, in writing, of issues or dissatisfaction as soon as they arise with any vendor's performance related to terms, conditions, specifications and performance of their contracts or purchase orders.
6.
Inform the Purchasing Department of purchases when state, federal or grant funds will be used or when funds from Clarksville Transit may be used in whole or in part. The Requesting Department shall also inform the Purchasing Department of any procurement policy that is required when using state, federal or grant funds.
7.
With the help of the Purchasing Department, the using department shall ensure that contractors perform in accordance with the terms, conditions and specifications of their contracts or purchase orders.
8.
Ensure that the purchasing policy is followed by all personnel prior to any purchase.
9.
Entering requisitions for all purchases less than $10,000.00 while ensuring that all proper backup is attached during requisition entry.
10.
Ensure that proper internal controls are in place for all purchasing transactions.
SPECIFICATIONS PREPARED BY OTHER THAN CITY PERSONNEL
A person, firm or subsidiary of a firm that prepares the specifications, scope of work or evaluation criteria for a competitive solicitation;
1.
May not respond to the solicitation or compete for award of a contract arising from either directly as a respondent or indirectly as a subcontractor at any tier for a respondent.
2.
Shall prepare the specifications, scope of work and/or evaluation criteria in accordance with the City's purchasing policy.
3.
When managing a project for the City; shall ensure contractors perform in accordance with the terms, conditions and specifications of their contracts or purchase orders. This shall be done with the help of the Purchasing Department, Project Management team and/or the using department.
COMPETITIVE PROCUREMENT PROCESS
METHODS OF PURCHASE
Unless otherwise authorized by state or federal law, all City contracts above the sealed bid limit shall be obtained by Competitive Sealed Bid with the award made to the lowest responsible and responsive bidder whose bid is most economical and efficient for the purpose intended according to the criteria set forth in the solicitation.
Other methods of award may be used following the determination by the Purchasing Director or his/her designee that the Competitive Sealed Bid is not practicable or advantageous to the City. These methods are Request for Proposals and Multi-Step Bidding. Purchase methods are defined as follows:
1.
COMPETITIVE SEALED BIDS
All purchases, leases, and lease-purchases of twenty-five thousand dollars ($25,000.00) or more purchased either singly or in the aggregate, for like items purchased in lots of two (2) or more within a fiscal year shall be formally bid prior to the purchase. All such purchases competitively bid shall be awarded to the lowest and best bidder unless provided for within the provisions of this document. All such bids shall be reported to the Finance and Administration Committee. The City Purchasing Director or his/her designee prior to purchase shall approve all purchases awarded. All specifications drafted shall provide for the competitive procurement of goods and services. All bids solicited under this paragraph must be sealed. Bids received after the stated opening time shall be rejected with the time and date of receipt recorded and filed in the bid file.
2.
REQUEST FOR PROPOSALS
In the event a sealed bid process would not be practical or advantageous to the City, the Request for Proposal (RFP) method will be used. All RFP's shall be evaluated based on criteria set forth in the RFP document.
The RFP is a method of negotiated source selection when the using department anticipates the following conditions:
1.
The using department can describe the desired end result; however, detailed, clear and concise specifications are not available or known making it impractical for bid.
2.
Contract award shall be made to the responsible respondent whose proposal is the most advantageous to the City taking into consideration price and the evaluation factors set out in the RFP.
All RFP's are subject to the following criteria:
1.
Evaluation criteria with relative weight to support each factor shall be established and included in the RFP. Cost shall not outweigh vendor qualifications, experience or competency.
2.
Proposals shall be evaluated by no less than 3 evaluating members. Members can be made up of both City employees and non-city employees. Non-city employees shall be chosen because of their knowledge of similar projects. All members on the evaluation team are required to sign a Confidentiality and No Conflict of Interest Certification found in Attachment A prior to evaluating any proposal. Members unable to sign this form shall not be permitted to evaluate the responses. The signed forms shall be submitted to the Purchasing Department prior to the evaluation.
If the evaluation team deems it necessary, the top candidates may be required to come to the using department to provide a formal presentation. If needed, presentations may be required in front of the full City Council.
In the event there is a tie between two or more vendors, factors such as prior experience with the vendor(s), project timeline proposed and information received during formal presentations (if requested) shall be considered.
3.
It is recommended that one member of the evaluation team be from outside of the using department. While this is not a requirement, it is recommended to provide transparency during the evaluation process.
4.
Contract negotiations shall take place with the top evaluated vendor. If contract negotiations fail, then negotiations shall be conducted with the second rated vendor and so on until a contract has been negotiated.
Offeror, if requested , shall be accorded fair and equal treatment regarding any opportunity for discussions and/or negotiations of submitted proposals, and such negotiations may be permitted after submission and before award to obtain the best and final offer as is in the best interest of the City. In conducting discussions and/or negotiations, there shall be no disclosure of any information derived from proposals submitted by competing proposers.
5.
Proposals shall be opened in a manner that avoids disclosure of contents to competing respondents during the negotiation.
6.
Proposals shall be open for public inspection after the intent to award the contract to the particular respondent is announced.
3.
MULTI-STEP BIDDING PROCESS
The multi-step sealed bidding process is a two phase process consisting of a technical first phase composed of one or more steps in which bidders submit unpriced technical offers to be evaluated by the City, and a second phase in which those bidders whose technical offers are determined to be acceptable during the first phase have their price bids considered.
This method is designed to obtain the benefit of Competitive Sealed Bidding by award of a contract to the lowest responsive and responsible bidder, and at the same time obtain the benefits of the competitive sealed proposals procedure through the solicitation of technical offers and to conduct discussions to evaluate and determine their acceptability.
PURCHASES OF $25,000.00 OR MORE:
All purchases, leases, and lease-purchases of $25,000.00 or more, purchased either singly or in the aggregate, for like items purchased in lots of two (2) or more, shall be competitively bid or sealed proposals solicited, prior to the purchase. Purchases of like items shall be aggregated for purposes of the bid threshold. All such purchases competitively bid shall be awarded to the lowest and best bidder unless otherwise provided for herein. All awarded bids or proposals shall be reported to the Finance and Administration Committee of the City Council. The Purchasing Director, or his/her authorized designee, prior to purchase, shall approve all such purchases to be awarded pursuant to this subsection. All specifications drafted shall provide for the competitive procurement of goods and services, except as may otherwise be provided within this Purchasing Policy and Procedures Manual. All bids and proposals submitted in accordance with this subsection shall be sealed. Bids and proposal submittals received after the stated opening time shall be rejected and returned to the bidder or proposer.
ADVERTISING:
All invitations to bid or requests for proposals in an amount of twenty-five thousand dollars ($25,000.00) or more shall be publicly advertised no less than five (5) days prior to the bid or proposal opening. "Publicly advertised" or "public advertising" shall mean the following methods of conveyance to the public of notice of the City's intention to purchase; newspaper or magazine advertisement, billboard, poster, radio announcement, internet or website listing, email, or letter notice sent to interested or potentially interested parties, contractors, vendors, bidders and proposers by United States mail or commercial carrier.
Purchase orders shall be issued by the Purchasing Department.
PURCHASES OF $3,000.00 TO $24,999.99:
All purchases of three thousand dollars ($3,000.00), but less than twenty-five thousand dollars ($25,000.00) purchased either singly or in the aggregate, for like items purchased in lots of two (2) or more, shall require the solicitation of three (3) or more competitive bids (written quotes) prior to purchase, except in instances where three (3) bids (written quotes) cannot be obtained due to lack of availability of providers/suppliers for the item(s) to be acquired, but need not be publicly advertised. Purchases of like items shall be aggregated for purposes of the quote threshold. All such purchases for which bids (written quotes) are received shall be awarded to the lowest and best bidder unless otherwise provided for herein. Purchases to be awarded pursuant to this subsection may be approved at the department level if all supporting documentation is provided. Such documentation (bid/quote) may be in the form of a letter, fax, or email, or other written or printed document stating:
1.
The vendor's/contractor's/company's name, address, phone number,
2.
The person's name and title or position giving the quote,
3.
The price, including delivery, and
4.
A complete description of the product or service provided.
On-line quotations may be used provided the above information is included.
The purchase authority shall not be used for purchases of a recurring nature and purchases shall not be split. A split purchase results when a total purchase of more than $3,000.00 is divided into more than one purchase event for the same or similar goods or services from the same vendor or multiple vendors to avoid the formal quote, bid or proposal procurement method. When purchases are repetitive to the extent that the total of the goods or services nears $25,000.00 within a fiscal year, the using department shall consult with the Purchasing Department and an alternate purchasing method shall be used.
After the information is obtained by the using department and attached to the requisition, it shall be confirmed and approved. Purchase orders for goods or services of $10,000.00 or more shall be issued by the Purchasing Department.
PURCHASES OF LESS THAN $3,000.00:
Purchases under $3,000.00 are considered small dollar purchases and do not require competitive quotes. A purchase order or the City Purchasing Card (PCard) program may be used for such purchases.
Purchases of like items shall be aggregated for purposes of the quote threshold. The purchase authority shall not be used for purchases of a recurring nature and purchases shall not be split. A split purchase results when a total purchase of $3,000.00 is divided into more than one purchase event for the same or similar goods or services from the same vendor or multiple vendors to avoid the formal quote, bid or proposal procurement method. When purchases are repetitive to the extent that the total of the goods or services nears $3,000.00 within a fiscal year, the using department shall follow the procedures outlined for purchases over $3,000.00.
PROCUREMENT INVOLVING USE OF FEDERAL OR STATE FUNDS
In the event that the project is funded in whole or in part by Federal or State funding or grants, all applicable Federal and/or State laws, regulations, grant conditions, and procedures must be followed. Federal procurement requirements are found in 2 CFR 200.318-326. This particular procedure begins with the revised effective date of this policy. The grant contract will reference all requirements applicable to that particular grant project.
1.0 PROCUREMENT INVOLVING TRANSIT DEPARTMENT
The Clarksville Transit System shall adhere to all applicable Federal Transportation Administration and otherwise applicable federal procurement laws and regulations including, but not limited to, the Clarksville Transit System's procurement policy regarding the procurement of goods and services.
2.0 PROCUREMENT INVOLVING THE COMMUNITY AND ECONOMIC DEVELOPMENT DEPARTMENT
Federal procurement requirements for purchases made by the Community and Economic Development Department are found in 2 CFR 200.318-326. The grant contract will reference all requirements applicable to that particular grant project.
APPROVAL AUTHORITY DESCRIBED
The City Purchasing Director or his/her designee has the authority to issue contracts for bids or proposals within the following conditional guidelines:
1.
Purchases over $25,000.00 shall be obtained through the approved competitive procurement methods. Bids or proposals will be advertised at least five (5) working days to the opening date. Refer to page 8 of this manual for advertising methods. Bid or proposal requests and specifications shall be mailed or emailed to prospective bidders;
2.
Bid award shall be made to the lowest responsible and responsive vendor meeting quality and performance specifications;
3.
RFP award shall be made to the respondent who scored highest during the evaluation process;
4.
Items have been previously identified and approved for purchase by the City Council during the budget process for that fiscal year (appropriated funds); and
5.
The award does not exceed the budgeted amount approved.
A Bid Summary/Recommendation Form found in Attachment B containing a recap of activity shall be presented to the Finance and Administration Committee at each meeting. This report shall state the bid number, department, bid description, successful vendor, and amount of each purchase made within these guidelines. In addition, the Purchasing Department will include a listing of all unsuccessful bidders and the amount of their bid.
AUTHORITY OF PURCHASING DIRECTOR
The Purchasing Director or his/her designee is authorized to adopt, implement, and enforce all purchasing policies, regulations, and procedures necessary to implement the provisions of this policy.
EXEMPTION FROM COMPETITIVE PROCUREMENT PROCESS
In the event that the exempt procurement is funded in whole or in part by Federal or State funding or grants, all applicable Federal and State laws, regulations, grant conditions, and procedures must be followed. Federal procurement requirements are found in 2 CFR 200.318-326. This particular procedure begins with the revised effective date of this policy. Grant contracts will reference all requirements applicable to that particular grant project.
When using federal assistance awarded by the Federal Transportation Administration (FTA), the City will comply with all applicable Federal Transportation Administration and otherwise applicable federal procurement laws and regulations including, but not limited to, the Clarksville Transit System's procurement policy regarding the procurement of goods and services.
EXEMPTIONS FROM THE BID PROCESS:
The following purchases, leases and lease purchases shall be exempt from the foregoing competitive procurement process. The Purchasing Director, or his/her authorized designee, prior to purchase, shall approve all such purchases to be awarded pursuant to any of the exceptions in this subsection, except as may otherwise be provided herein pertaining to emergency purchases.
1.
Sole Source Purchases: Sole source of supply, or proprietary products, as determined after a thorough search for suppliers for the goods or services by the director or department head concerned, under the direction and in consultation with the Purchasing Director. Refer to the Sole Source Procurement Policy on page 13.
2.
Emergency Purchases: Emergency purchases with the subsequent approval by one of the following: (1) the Purchasing Director, or (2) the Mayor. All such emergency purchases shall be reported in writing to the Finance and Administration Committee at their next regularly scheduled meeting. If the financial resources of the City, or its' physical plant, or the public welfare of the City's citizens, is jeopardized by the continued existence of the emergency and the continued delay in obtaining the appropriate approval, the director / department head involved in the emergency may complete the emergency purchase prior to reporting the purchase to, and obtaining the approval of, the Purchasing Director or Mayor. A written report must be filed with the Purchasing Director within three (3) workdays after the emergency purchase detailing the emergency and explaining why the normal competitive purchasing procedures could not be followed. Any employee, supervisor, department head, or official abusing the emergency procedures of this section shall be subject to disciplinary action, to include termination. Refer to the Emergency Procurement Policy on page 13.
3.
Purchases from Government Instrumentalities: Purchases from instrumentalities created by two (2) or more cooperating governments.
4.
Purchases from Nonprofit Corporations: Purchases from nonprofit corporations whose purpose, or one of whose purposes, of which is to provide goods or services specifically to municipalities.
5.
Purchases of real property: Except as provided for in subsection d, below, all recommendations to purchase property must first come before the finance and administration committee with a written justification for the property's acquisition. The finance and administration committee may authorize an appraisal from a state-certified appraiser. No appraisals greater than one year old will be considered. If the finance and administration committee decides there is a need to purchase real property, the following procedures will be followed:
a.
The appraised price, closing costs, and any additional costs deemed necessary to avoid the necessity of condemnation proceedings will be reported to the city council, which may authorize an offer in an amount not to exceed the reported amount if it is determined that there is a need to purchase the property.
b.
A written offer will then be submitted to the owner.
c.
If a price is not accepted the city council may authorize to begin condemnation procedures.
d.
The acquisition of utility easements or rights-of-way shall be accomplished in accordance with policies and procedures adopted by a department and approved by the appropriate council committee. If negotiations are unsuccessful, the provisions of subsections a. through c. shall apply.
e.
The requirements of this subsection may be suspended, and the city council may authorize the purchase of real property in excess of the amount reported pursuant to paragraph (a) above, upon the finding of public necessity, and two-thirds (2/3) affirmative vote of the city council to take such action.
6.
Purchases from Governmental Agencies: Purchases, leases, and lease-purchases from any federal, state, or local governmental unit or agency.
7.
Purchases from Other Governmental Units: Purchases through other units of governments as authorized by the Municipal Purchasing Law of 1983 as amended.
8.
Tennessee State Industries: Purchases from Tennessee State Industries shall be exempt.
9.
Professional Services: Purchases and contracts for legal services, fiscal agents, financial advisor services, accounting services, training services, architects, engineers, surveyors, property appraisers, construction contract management services, property and liability insurance advisor services, medical or health insurance advisor services, or retirement/pension, or other employee benefit advisor services, information management services, and similar services by licensed or professional persons or groups of high ethical standards shall be made pursuant to the provisions of state law of general application, to include Tennessee Code Annotated (T.C.A.) § 12-3-1209 and T.C.A. § 12-4-107, as may be amended. Refer to Professional Service Contracting on page 13.
10.
Liens: When the payoff of liens/purchase of confiscated vehicles when the market value exceeds the payoff of the lien or purchase price of the confiscated vehicles. The City Chief of Police shall obtain from the City Fleet Manager a written estimate of the vehicle's value, which shall include the mileage and a description of the vehicle's condition and, if possible, one additional estimate from an auto dealership not involved in the transaction. The purchase or payoff of a lien shall be approved by the Purchasing Director upon the recommendation of the Chief of Police if the payoff is less than the value of the vehicle as determined by the Fleet Manager.
11.
Repairs: For repair services or parts for damaged, inoperable, or less than fully operable equipment, three (3) or more written quotes (estimates) shall be required. If the actual cost of the repairs exceeds the lowest quote (estimate) due to unanticipated repairs that could not have been reasonably foreseen, the additional cost above the quote (estimate) shall be approved on an emergency purchase basis.
12.
Fuels: The purchase of fuels, fuel products, or perishable commodities.
13.
Resale Items: The purchase of items by the Parks and Recreation Department (to include municipal golf courses) purchased for resale to the public.
14.
Used equipment: Purchases of used or secondhand articles shall be in accordance with state law of general application to include T.C.A. § 12-3-1202 as may be amended. Refer to Purchase of Used or Second-Hand Items on page 14.
15.
Change orders: Change orders to existing construction or improvement contracts within established budgetary limits.
SOLE SOURCE PROCUREMENT POLICY
Sole source procurement is exempted from the competitive process. A contract may be awarded for a commodity, service, or proprietary item to the only known capable supplier where:
1.
No competition exists, due to the unique nature of the requirement, the supplier, or market conditions.
2.
Where the compatibility of equipment, accessories or replacement parts is the paramount consideration.
3.
Where the sole supplier's items are needed for a trial use or testing.
Sole source procurement shall not be used unless there is clear and convincing evidence that there is only one source. The department requesting sole source procurement shall fill out a Sole Source Justification form found in Attachment C and provide a sole source letter from the vendor and/or written evidence and/or report of research to support the request to the Purchasing Director or his/her designee for approval. The determination as to whether a good or service shall be considered a sole source shall be made by the Purchasing Director or designee.
Sole source approvals shall be good for one year from the date of approval by the Purchasing Director. At the end of said year, if the vendor is still a sole source, an updated Sole Source Justification form and sole source letter and/or documentation will be required for re-approval.
EMERGENCY PROCUREMENT POLICY
All purchases for emergency situations shall first be attempted through the contracted supplier. If no contracted supplier, the department supervisor or department head involved in the emergency shall obtain the product or service at the best possible cost to the City.
The above policy statement shall not apply to the procurements that were caused from poor planning or scheduling by the using department as determined by the Purchasing Director or his/her designee. Any employee, supervisor, department head or official abusing the emergency procedures of this section shall be subject to disciplinary action, to include termination.
PROFESSIONAL SERVICE CONTRACTING
Contracts for professional services (i.e., legal services, fiscal agent, financial advisor or services, accounting services, training services, and similar services by professional persons or groups of high ethical standards) are not required to be based upon the proposal process. Professional service contracts shall be awarded based on recognized competence and integrity, and in its sole discretion, the City may interview eligible vendors to determine the capabilities of such vendors. The City will enter into a negotiated contract with the professional service provider.
Professional services include, but are not limited to the following professions:
1.
Accountant
2.
Appraiser
3.
Architect
4.
Attorney
5.
Audiologist
6.
Broker-Dealer
7.
Chiropractor
8.
Construction Management firms
9.
Dentist
10.
Educational Consultant
11.
Engineer
12.
Investment/Financial Advisor
13.
Landscape Architect
14.
Optometrist
15.
Pharmacist
16.
Physician
17.
Podiatrist
18.
Psychologist
19.
Real Estate Broker
20.
Securities Agent
21.
Surveyor
22.
Veterinarian
When attempting to enter into a professional service contract, the using department shall provide the Purchasing Director with the written, proposed scope of work on a Professional Service Request form found in Attachment D . The selected vendor is required to sign a Conflict of Interest form to indicate there is no conflict of interest for the work they are contracted to perform. This form can be found in Attachment E . It is at the discretion of the Purchasing Director to determine whether the work/service qualifies as a professional service and is therefore exempt from the competitive procurement requirements. Once this form is signed by the Purchasing Director, the using department may then negotiate the cost of the contract.
THIS SIGNED FORM IS KEPT ON FILE IN THE PURCHASING DEPARTMENT. ALL PROFESSIONAL SERVICES ARE REPORTED TO THE FINANCE AND ADMINISTRATION COMMITTEE.
PURCHASE OF USED OR SECOND-HAND ITEMS
T.C.A § 12-3-1202 authorizes any municipality to purchase used or second- hand articles, goods, equipment, materials, supplies or commodities from private individuals and entities without public advertisement and competitive soliciting. Further stipulations provide that the purchased item must be valued through a nationally recognized publication or by a licensed appraiser, AND the price is not more than 5% higher than the highest value of the documented price.
COOPERATIVE PURCHASING AGREEMENTS
Pursuant to TCA 12-3-1205, the City is authorized to use cooperative purchasing agreements and contracts.
(a)
Any municipality, county, utility district, or other local government of the state may participate in, sponsor, conduct or administer a cooperative purchasing agreement for the procurement of any supplies, services or construction with one (1) or more other local governments in accordance with an agreement entered into between the participants. Such cooperative purchasing may include, but is not limited to, joint or multi-party contracts between local governments. Where the participants in a joint or multi-party contract are required to advertise and receive bids, it shall be sufficient for those purposes that the purchasing entity comply only with its own purchasing requirements.
(b)
(1)
Notwithstanding any other law to the contrary, any municipality, county, utility district, or other local government of the state may participate in, sponsor, conduct, or administer a cooperative purchasing agreement for the procurement of any goods, supplies, services, or equipment with one (1) or more other governmental entities outside this state, to the extent the laws of the other state permit the joint exercise of purchasing authority, or with an agency of the United States, to the extent federal law permits the joint exercise of purchasing authority, in accordance with an agreement entered into between or among the participants; provided, such goods, supplies, services, or equipment were procured in a manner that constitutes competitive bidding and were advertised, evaluated, and awarded by a governmental entity and made available for use by other governmental entities.
(2)
A municipality, county, utility district, or other local government of the state may participate in a master agreement by adopting a resolution accepting the terms of the master agreement. If a participant in a joint or multi-party agreement is required to advertise and receive bids, then it will be deemed sufficient for those purposes that the purchasing entity or the entity that procured the bid complied with its own purchasing requirements. The participant shall acquire and maintain documentation that the purchasing entity or entities that procured the bid complied with its own purchasing requirements.
(3)
The powers conferred by this section are in addition and supplemental to the powers conferred by any other law, and any limitations imposed by this section shall not affect powers conferred by any other law.
(4)
This subsection (b) shall not apply to:
(A)
Purchases of new or unused motor vehicles, unless the motor vehicles are manufactured for a special purpose as defined in T.C.A. § 12-3-1208;
(B)
Purchases of construction, engineering, or architectural services; construction materials; or construction machinery, including, but not limited to, bulldozers and other heavy equipment utilized in construction or on construction sites. For purposes of this subdivision (b)(4)(B), "construction materials" shall not include materials used in the operation of a municipal utility system, including, without limitation, transformers, conductors, insulators, poles, cross-arms, anchors, pipes, valves, meters, or other components or parts of a utility system, whether purchased in accordance with a purchasing agreement with the Tennessee Valley authority or another purchasing arrangement; or
(C)
Purchases of fuel, fuel products, and lubricating oils.
(c)
The chief procurement officer may collect information from municipalities, counties, utility districts, or any other local government unit concerning the type, cost, quality, and quantity of commonly used goods, supplies, services, or equipment being procured under cooperative purchasing agreements. The chief procurement officer may make available all such information to any municipality, county, utility district, or other local government unit upon request.
RIGHT TO AUDIT
Contractors shall establish a reasonable invoice accounting system which enables ready identification of contractor costs of goods and use of funds. The City or its representative may audit the contractor's records any time before four (4) years after final payment (or until all disputed claims have been settled, whichever is longer) to verify the City's payment obligation and the use of City's funds. This right to audit shall include subcontractors from whom goods or services are subcontracted by the contractor. Contractor shall ensure the City has these rights with subcontractors. Any disputed claims will be verified by an independent auditor at the cost of the City unless the contractor is found to have overcharged the City in which case the contractor will pay the cost of the audit as well as repay all overcharges.
DURATION OF CONTRACTS
The City of Clarksville may enter into annual contracts for goods or services that contain a one-year renewable option not to exceed a total of three years. Lease or lease/purchase agreements may be for more than three years with the decision for time determination being based on that which will best serve the interest of the City. Special contract conditions will be at the discretion of the Purchasing Director or his/her designee.
BIDDER'S LISTS
The Purchasing Department shall maintain current information relative to vendors who have requested to be placed on the bid list. Every effort shall be made to identify potential vendors for each solicitation to foster competition and ensure a fair and equitable environment. Requests for removal from the active bid file shall be in writing delivered to the City Purchasing Department.
Vendor Applications may be obtained by accessing the Purchasing Department page on the City of Clarksville official website at www.cityofclarksville.com. Applications may also be picked up at the Purchasing Department office located at 1 Public Square, Suite 301, Clarksville, TN.
It is necessary, periodically, to delete from our bidders list the names of those persons, firms or corporations who fail to respond after having been invited to bid on a commodity or commodities for three (3) successive bid/proposal opportunities.
SUSPENSION AND DEBARMENT OF VENDORS
The Purchasing Director may suspend or debar a vendor for cause the right of a vendor to be included on a vendor list and any bid/proposal response from that vendor rejected.
Suspension - A vendor may be suspended for a period not to exceed two (2) years as determined by the Purchasing Director based upon, but not limited to, the following:
1.
Default or failure to fully comply with the conditions, specifications, drawings or terms of a quote, bid, proposal or contract with the City;
2.
Vendor commits any fraud or misrepresentation in connection with a quote, bid, proposal or contract;
3.
Vendor is charged by a court of a criminal offense as an incident to obtaining or attempting to obtain a public or private contract or subcontract (of any kind) or in the performance of such contract or subcontract;
4.
Vendor is charged by a court with any of the following: embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property, or any other offense indicating a lack of business integrity or business honesty which currently seriously and directly affects responsibility as a City contractor.
If charges are dismissed or the vendor is found not guilty, the suspension shall be lifted automatically upon written notification and proof of the final court disposition provided by the vendor;
5.
Vendor becomes insolvent, has proceedings in bankruptcy instituted against it or compounds its debts or assigns over its estate or effects for payment thereof or has a receiver or trustee appointed over its property;
6.
Vendor violates the ethical standards set forth in local, state or federal law;
7.
Vendor is found to have colluded in order to receive business from the City;
8.
Default on the payment of taxes, licenses or other monies lawfully due to the City;
9.
Or any other cause the Purchasing Director determines to be so serious and compelling as to materially and adversely affect the capability of the vendor to function as a city contractor.
Debarment - A vendor may be permanently debarred for the following:
1.
Default or failure to fully comply with the conditions, specifications, drawings or terms of a quote, bid, proposal or contract with the City on more than one occasion;
2.
Conviction by a court of law for the commission of those offenses in connection with the vendor's enterprise as stated in sections 3 and 4 of the Suspension section above. If the conviction or judgment is reversed through the appellate process, the debarment shall be removed immediately upon written notification and proof of the final court disposition provided by the vendor;
PROCUREMENT OF CONSTRUCTION SERVICES
City construction or renovation projects shall comply with state law of general application, to include the provisions of T.C.A. § 62-2-107 as may be amended.
When the purchase of construction services is needed, every attempt shall be made to insure all the construction documents are clear, concise and competitive in nature. It is the City's intent to provide a clear project approach that will result in the most timely, economical and successful completion of the construction project.
Every attempt shall be made to ensure that qualified changes to existing projects shall be in accordance with this Purchasing Policy.
A CONTRACT CANNOT BE MODIFIED VIA THE CHANGE ORDER PROCESS TO CIRCUMVENT THE COMPETITIVE PROCUREMENT PROCESS.
SURETY REQUIREMENTS
For construction projects, certain types of bonds may be required during the bid process. Those are:
BID BOND:
A bid bond issued by a surety company licensed to do business in the State of Tennessee may be required for a specified solicitation. The amount of the bid bond shall be (5%) of the total contract price. Bid bonds submitted by unsuccessful vendors will be returned upon award of a contract.
PERFORMANCE BOND:
A performance bond issued by a surety company licensed to do business in the State of Tennessee and acceptable to the City of Clarksville may be required for a specified solicitation. The amount of the performance bond shall be in the amount of (100%) of the total contract price.
If the successful bidder fails to furnish a performance bond and execute a contract within the time allowed, the bid bond of the bidder shall be retained by the City as liquidated damages and not as a penalty. In addition, the City shall remain free to pursue any other remedies it may have at law or in equity.
PAYMENT BOND:
A payment bond issued by a surety company licensed to do business in the State of Tennessee may be required for a specified solicitation. The bond shall be in the amount of 100% of the contract price. The bond is to ensure that the contractor will pay for all labor and materials used by the contractor or any immediate or remote subcontractor under the contractor.
QUALITY ASSURANCE, INSPECTION, AND TESTING
The Purchasing Director or his/her designee may take such steps as deemed desirable to ascertain or verify that supplies, services or construction items procured conform to specifications. This authority may be delegated to the using department or the Project Management team if the best interest of the City operation is served.
FEDERAL AND STATE SURPLUS PROPERTY
Authority is granted to the City Purchasing Director or his/her designee to monitor both Federal and State surplus property programs and to allow using departments to purchase if (a) the price is reasonable; (b) the item is budgeted; (c) funds are available; and (d) justification of need is provided. An approved purchase order will be obtained from the Purchasing Department before making the purchase. The purchase shall be reported to the Finance and Administration Committee at their next regularly scheduled meeting.
DISPOSAL OF SURPLUS PERSONAL PROPERTY
The using departments shall identify in writing surplus, scrap, or obsolete property and report same to the Purchasing Department. The Purchasing Director, or his/her designee shall be authorized to dispose of and/or transfer title to City surplus personal property for the proper conduct of the City's business in a manner determined by them to be in the best interest of the city, and in accordance with state law of general application, and shall report same to the Finance and Administration Committee. Disposal of goods shall be, but not limited to, the following methods: online auction, public auction or sale or by Request for Sealed Offers.
Equipment acquired by a department through federal or state grant funding which no longer serves the needs for which originally acquired shall be disposed of in accordance with federal or state laws of general application.
T.C.A. 6-54-125 provides the following relating to purchase of city property by officials and employees:
a)
It is unlawful for any municipal official or employee to purchase from the municipality any property declared to be surplus by the municipality, except by bid at public auction during the tenure of such person's office or employment, or for six (6) months thereafter.
b)
A purchaser who violates this section commits a Class A misdemeanor.
Public auction includes on-line auctions open to the public.
Additionally no person involved in the seizure of property may purchase such property, including at public auction. Employees and officials purchasing or bidding on seized property shall attest in writing to the Purchasing Director that they have not been involved in any way with the seizure of said property.
At times, it is more advantageous for the City to request sealed offers for certain types of surplus goods or property. In these cases, public notice shall be given at least two (2) weeks prior to the opening of said offers. Notice shall be given in a variety of ways to include, but are not limited to, mailing of the Request for Sealed Offers to prospective bidders, emailing of the Request for Sealed Offers, advertising on the City's website, advertising in the local newspaper and posting of the advertisement on the bulletin board outside of the Purchasing Department.
DISPOSAL OF CITY SURPLUS REAL PROPERTY
The Purchasing Director, or his/her designee, with such assistance as may be required from the City Attorney, or his / her designee, upon resolution approved by a majority of the full membership of the City Council, and upon such terms as the City Council may determine to be in the best interest of the City, shall be authorized to dispose of and transfer all surplus real property, together with all improvements thereon, at public auction, or as otherwise directed by the City Council and in accordance with state law of general application.
CODE OF ETHICS
The City of Clarksville is obligated to uphold the highest level of ethical standards. The City shall strive to provide the citizens a transparent way or procuring goods and services.
All city employees, city officials, board members, etc. shall abide by and adhere to the Code of Ethics listed in Title 1, Chapter 6 of the City Code.
In addition the Purchasing Department subscribes to the NIGP Code of Ethics as stated below:
• Seeks or accepts a position as head (or employee) only when fully in accord with the professional principles applicable thereto and when confident of possessing the qualifications to serve under those principles to the advantage of the employing organization
• Believes in the dignity and worth of the service rendered by the organization, and the societal responsibilities assumed as a trusted public servant
• Is governed by the highest ideals of honor and integrity in all public and personal relationships in order to merit the respect and inspire the confidence of the organization and the public being served
• Believes that personal profit obtained through misuse of public or personal relationships is dishonest and not tolerable
• Identifies and eliminates participation of any individual in operational situations where a conflict of interest may be involved
• Believes that members of the Institute and its staff should at no time, or under any circumstances, accept directly or indirectly, gifts, gratuities, or other things of value from suppliers, which might influence or appear to influence purchasing decisions
• Keeps the governmental organization informed, through appropriate channels, on problems and progress of applicable operations by emphasizing the importance of the facts
• Resists encroachment on control of personnel in order to preserve integrity as a professional manager
• Handles all personnel matters on a merit basis, and in compliance with applicable laws prohibiting discrimination in employment on the basis of politics, religion, color, national origin, disability, gender, age, pregnancy and other protected characteristics
• Seeks or dispenses no personal favors. Handles each administrative problem objectively and empathetically, without discrimination
• Subscribes to and supports the professional aims and objectives of NIGP - The Institute for Public Procurement
CONFLICT OF INTEREST
Federal conflict of interest requirements are found in 2 CFR Part 200.112. Grant contracts will reference all requirements applicable to that particular grant project.
No employee, officer, agent, any member of an employee's family or his or her partner shall have any financial interest or a tangible personal benefit in the profit of any contract, service or other work performed for the City. He/she shall not personally profit directly or indirectly from any contract, purchase, sale or service between the City and any person or company. A conflict of interest would also arise when the parties indicated herein are employed or about to be employed by a person or company wishing to do business with the City. Any member listed in this section violating provisions of this rule shall be subject to appropriate disciplinary action including termination.
"Direct Interest," means any contract with the employee himself or with any business in which the employee is the sole proprietor, a partner, or the person having an ownership interest in the business.
"Indirect Interest" means any contract in which the employee has no direct interest however a spouse, partner or relative has an interest in the contract. A conflict of interest exists if the spouse, partner or relative commingle their assets.
In the event that a purchase is funded in whole or in part by Federal funding or grants, all applicable Federal laws, regulations, grant conditions, and procedures regarding conflicts of interest and organizational conflict of interest shall be followed. Federal conflicts of interest and organizational conflicts of interest requirements are found in 2 CFR 200.318 sections (c)(1) and (c)(2) as amended. This particular procedure begins with the revised effective date of this policy.
Further, no employee, officer or agent of the City of Clarksville may participate in the selection, award or administration of a contract supported by a Federal award if he or she has a real or apparent conflict of interest.
GIFTS AND REBATES
Employees, officers or agents of the City are expressly prohibited from accepting, directly or indirectly, from any person, company, firm, corporation, contractors or parties to subcontracts to which any purchase order or contract is, or might be, awarded, any rebate, gift, special consideration, money or anything of value as provided in Title 1 Chapter 6 of the Ethics Code, except as it may be given for the use and benefit of the City.
DEBT OWED TO THE CITY
The City will not do business with anyone who owes a debt to the City of Clarksville nor is a defaulter on surety to the City.
ANTITRUST LAWS
All purchases shall be made according to applicable prevailing State and Federal antitrust laws. Non-competitive practices will not be encouraged or approved. All methods of purchase shall be designed to promote open and fair competition.
CIVIL RIGHTS
Nondiscrimination - In accordance with Title VI of the Civil Rights Act, as amended, 42 U.S.C. 2000d, section 303 of the Age Discrimination Act of 1975, as amended, 42 U.S.C. 6102, section 202 of the Americans with Disabilities Act of 1990, 42 U.S.C. 12132, and Federal transit law at 49 U.S.C. 5332, the Contractor agrees that it will not discriminate against any employee or applicant for employment because of race, color, natural origin, sex, age or disability. In addition, the Contractor agrees to comply with applicable Federal implementing regulations and other implementing requirements FTA/FHWA/DOT may issue.
ILLEGAL ALIENS
Clarksville Ordinance 30-2006-07 provides as follows:
If any person who contracts to supply goods or services to the city or other city entities, or who submits a bid to contract to supply goods or services to the city or other city entities, is discovered to have knowingly utilized the services of illegal aliens in the performance of such a contract to supply goods or services to the city or other city entities, the purchasing agents shall declare that person to be prohibited from contracting for or submitting a bid for any contract to supply goods or services to the city or other city entities for a period of one (1) year from the date of discovery of the usage of illegal alien services in the performance of a contract to supply goods or services to the city or other city entities.
The foregoing provisions are a condition of the contract which is the subject of this solicitation for bids/proposals.
RECORDS RETENTION
All formal competitive bids or proposals of twenty-five thousand dollars ($25,000.00) or more received shall be recorded and maintained for a minimum of seven (7) years after the fiscal year in which the purchase occurred, or as may be otherwise required pursuant to the City Records Retention Policy/Ordinance, or state law of general application. The Purchasing Director shall be the custodian for all bids, proposals, and quotes. Copies of all bids, proposals, and quotes over three thousand dollars ($3,000.00) shall be provided to the Purchasing Director.
FUNDING
All purchases, leases and lease purchases shall be made within the limits of the then current approved budget, from appropriated funds approved by the City Council.
VIOLATION OF PURCHASING POLICIES
Any employee, supervisor, department head, or appointed official that willfully violates or causes another person to willfully violate the provisions herein are subject to disciplinary action.
Department Heads shall be responsible for explaining any such violations in writing to the Mayor, Finance and Administration Committee, City Purchasing Director and/or the City Council.
CONTRACTING WITH MINORITY BUSINESSES
The City of Clarksville shall take all necessary steps to assure that minority businesses, women's business enterprises and labor surplus area firms are given equal opportunity to bid on City projects. And further, equal opportunity shall be given to contract with the City for any good or service.
PROCUREMENT PROTEST PROCEDURES
WHEN QUESTIONS OR PROTESTS REGARDING PROCUREMENTS ARE AT ISSUE, THE FOLLOWING PROCEDURES WILL BE ADHERED TO BY THE CITY OF CLARKSVILLE:
Any protest or objection to the Conditions and or Specifications in the Bid Documents or the Procurement Process must be submitted for resolution to the Purchasing Director for the City of Clarksville. Each protest must be made in writing and supported by sufficient information to enable the protest to be considered. A protest or objection will not be considered by the City if it is insufficiently supported or if it is not received within the specified time limits. The City of Clarksville shall respond in detail to each substantive issue raised in protest.
A party wishing to protest shall post a protest bond in the amount of $500.00 at the time of filing a notice of protest with the City of Clarksville Purchasing Director. Protest bonds must be in the form of a cashier's or certified check made payable to the City of Clarksville. If the Protest Review Board upholds the protest, the bond shall be returned to the filing party. If the protest is denied, the bond will be retained by the City of Clarksville to cover the costs associated with the protest.
If a pre-bid/proposal protest is not resolved to the protester's satisfaction, then the protest shall be referred to the Department Head who initiated the bid request for the City of Clarksville, or his/her designee, for resolution. If the protest is still unresolved, the protest shall be referred to the Protest Review Board for resolution. The decision of the Protest Review Board shall be final. The Protest Review Board will consist of the Department Head initiating the bid, the Purchasing Director for the City, and the City Attorney.
Protest arising after the opening of bids or proposals and prior to award (pre-award) of the contract and based upon grounds that were known or should have been known will be submitted to the Purchasing Director for the City within three (3) working days after notification of the apparent low responsive and responsible bidder. The Purchasing Director will present the protest to the Protest Review Board for a decision and the decision of the Protest Review Board will be final.
The decision of the Protest Review Board shall be final for all pre-bid and pre-award protests and no further appeals will be considered by the City.
Protests after the award of a contract (post-award) must be filed with the Purchasing Director within three (3) working days of the award of the contract. The protest will be brought before the Protest Review Board for resolution. The decision by the Protest Review Board will be final and no further appeals will be considered by the City.
In all protests— pre-bid, pre-award, and post-award— requests for reconsideration of final decisions will only be granted in the event that new information becomes available which was not previously known or there has been an error of law or regulation.
Enacted: July 1, 2004
Revisions: July 12, 2004
July 16, 2004
June 16, 2005
February 9, 2006
May 19, 2006
August 22, 2006
May 9, 2007
September 10, 2007
July 1, 2009
December 23, 2009
January 26, 2011
May 2, 2011
August 15, 2011
December 19, 2011
January 12, 2012
July 12, 2012
November 1, 2013;
July 1, 2018