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HomeMy Public PortalAbout14397 Purchasing OrdinanceORDINANCE NO. 14397 AN ORDINANCE, repealing Ordinance No. 13537, adopted December 13, 2012 relating to the purchase of all supplies, materials and services except as otherwise specified , and enacting in lieu thereof a new ordinance updating the applicable process for the purchase of all supplies, materials and services except as otherwise specified. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT: WHEREAS, Ordinance No. 13537, adopted December 13, 2012, is hereby repealed, provided, however, that any existing legal rights, duties, obligations or relationships established by actions taken pursuant to such Ordinance when effective shall not be altered or extinguished. SECTION 1: GENERAL GUIDELINES: 1. All purchasing will be accomplished within the requirements of the MSD Charter and applicable Missouri statutes and regulations. 2. The Purchasing Manager shall be the head, and have general supervision, of Purchasing except as otherwise provided herein, and shall assure the completion of all duties prescribed by this ordinance. 3. Purchasing Manager’s Duties: Except as otherwise provided herein by law or Ordinance or other powers and duties prescribed by Ordinance, it shall be the Purchasing Manager's duty to: a. Purchase or contract for all supplies, materials and services needed by any Using Agency in accordance with Purchasing Procedures as prescribed by this Ordinance and such other rules and regulations as may be prescribed. b. Procure for the District a suitable quality in supplies, materials or services at the best value for the District. c. Discourage collusive or restrictive bidding and endeavor to obtain as full and open competition as possible on purchases. d. Establish, and amend when necessary, purchasing policies and procedures as necessary to assure the continuous and efficient operation of the District. e. Act so as to procure for the District all federal, state, and local tax exemptions to which it is entitled. f. Assure that MSD procurement is consistent with the District’s Minority and Women Owned Business Enterprise (MWBE) inclusion programs and policies. 4. Approving Purchase Orders: The Purchasing Division shall not issue any order for delivery on a contract or purchase without an approved purchase requisition. This certifies that previously unencumbered funds have been made available for the amount of the purchase contemplated. To the extent possible, no delivery shall be made or service performed without an approved purchase order. 5. Inspection of Goods and Services: The Purchasing Manager shall have the authority to delegate to Using Agencies the inspection, receipt and storage of all deliveries made, under rules and regulations which the Purchasing Manager shall prescribe. 6. Authorization for the Use of Electronic Transmissions: The use of electronic media, including the acceptance of electronic signatures, is authorized provided appropriate security is in place to prevent unauthorized access to the bidding, approval, and award process and accurate retrieval or conversion of electronic forms to permit copying are provided. 7. Surplus Equipment: Using Agencies shall submit to the Purchasing Manager, at such times and in such form as shall be prescribed, reports showing stocks of all supplies or materials which are no longer used or which have become obsolete, worn out or scrapped. The Purchasing Manager shall have the authority to transfer surplus stock to other agencies and/or to sell all supplies or materials which have become unsuitable for public use or to exchange the same for, or trade in the same on, new supplies or materials. Sales under this Section shall be made to the highest responsible bidder. 8. Disposal of Surplus Equipment: Surplus property may be sold or donated only after it has been determined by the Purchasing Manager and Director of the Using Agency to be surplus to the District's needs. Surplus inventory shall be offered for sale on a competitive basis that will result in the best return to the District, or donated after approved by Resolution passed by the Board of Trustees. 9. All contractors or consultants retained to perform work under the Consent Decree shall be directed to the District’s website and instructed to read the Consent Decree. SECTION 2: NON-CAPITAL PROCUREMENT: 1. The Purchasing Manager and the Director of Finance shall have the authority to reject all bids or quotes for any one or more supplies, materials or services included in the proposed contract when it is in the best interest of the District. 2. The Purchasing Manager and the Director of Finance shall have the authority to award contracts within the purview of this Ordinance. Contracts may be awarded to the lowest and best bidder that is both responsive and responsible as defined by Purchasing Policy. When the award is not given to the lowest bidder, a full and complete statement of the reasons for placing the order elsewhere shall be prepared by the Purchasing Manager and filed with the other documents relating to the transaction. Bidders must adhere to the letter and intent of the bid specifications; any deviation may result in the bidder being declared non-responsive. 3. Records: The Purchasing Manager shall solicit bids or quotes from prospective vendors by direct mail, electronic mail, telephone, facsimile or other means that is in the best interest of the District. The Purchasing Manager shall keep a record of all open requisitions and the bids or quotes submitted in competition thereon and such record shall be open to public inspection to the extent authorized by law. 4. Bid Requirements: I. Procurements greater than $25,000: Except as otherwise provided herein, all supplies, materials or services, when the estimated cost thereof shall exceed Twenty-Five Thousand Dollars ($25,000), shall be purchased by formal written contract from the lowest responsive and responsible bidder, after due notice inviting proposals. a. Notice soliciting sealed bids shall be published at least once in one or more newspapers of general circulation in the District or any other additional media available and practical to the District, at least seven (7) days before the day set for receipt of proposals. The required notice shall include a general description of the supplies, materials or services to be purchased, and shall state where bid packages and specifications may be obtained and the time and place for opening bids. The Purchasing Division shall also solicit sealed bids from all responsible prospective suppliers, vendors and contractors who have requested their names be added to a BIDDERS’ LIST. Such initial notice of solicitation will be provided to those entities listed by fax or email at least seven (7) days before the day set for receipt of proposals. The notice will include the details of the proposed purchase or sale as formally published for general circulation. b. When deemed necessary by the Purchasing Manager, surety bid bonds or cash deposits of five percent (5%) of the total dollar amount bid shall be prescribed in the public notice inviting bids. Unsuccessful bidders shall be entitled to the return of their surety bid bonds or cash deposits. A successful bidder shall forfeit any deposit or surety required by the Purchasing Manager upon failure by the successful bidder to enter into a contract within ten (10) days after the award. The requirement for bonds may be waived for projects less than $50,000 if specified in the bid documents. c. All bids shall be submitted sealed to the Purchasing Division and shall be identified as bids on the envelope. Bids shall be opened in public at the location and on the day and at the time stated in the public notices and bid packages or addenda. The Purchasing Division shall tabulate all bids and such tabulation and bids shall be available for inspection within five (5) days after the bid opening. d. All procurements for Professional Services greater than $25,000 per year must be approved by the Board of Trustees. Exercising of renewal options under Professional Services contracts must be approved by the Board of Trustees prior to being exercised. II. Procurements less than $25,000: a. Dollar Threshold Exception to Formal Advertising Requirements: All purchases of supplies, materials or services of less than the estimated value of Twenty-Five Thousand Dollars ($25,000) may be made in the open market without newspaper advertisement and without observing the procedure prescribed in Subsection I. b. Competition Required: For all open market purchases, at least three competitive quotes will be solicited whenever possible. Award shall be made to the lowest responsive and responsible bidder in accordance with the standards set forth by Purchasing Policy. c. Purchases in the amount of Three Thousand Dollars ($3,000) or less may be made directly by the Using Agency without receiving competitive bids. d. No contract or purchase shall be subdivided to avoid the requirements of competitive bidding. III. Single Source Procurement: a. The Director of Finance can authorize single source procurement of supplies, material or services upon advance presentation of sufficient documentation that establishes one or more of the following: i. Supplies are proprietary and only available from the manufacturer or a single distributor; ii. Based on past procurement experience, it is determined that only one distributor services the region in which the supplies are needed; iii. Supplies are available at a discount from a single distributor for a limited period of time; or iv. when such procurement would be in the best interest of the District. SECTION 3: CAPITAL IMPROVEMENT PROCUREMENT: 1. All contracts for capital improvements shall be purchased, at a minimum, in accordance with the requirements set forth in the MSD Charter and applicable Missouri statutes and regulations. 2. Capital Improvements over Twenty Five Thousand Dollars ($25,000) shall be purchased by formal written contract. 3. Advertisements for capital improvements: The District will solicit sealed bids for capital improvement projects for a minimum of 21 calendar days, unless the project is an IMMEDIATE NEED or an EMERGENCY. This advertising period can be longer at the discretion of the District. 4. Submission of Sealed Bids: Sealed bids shall be opened in public at the location and on the day and time stated in the public notices, bid packages or addenda. The Purchasing Division shall tabulate all bids and such tabulation of bids shall be available for inspection within five (5) days after the bid opening. 5. Bid Security: Each bid shall be accompanied by bid security consisting of a certified check or cashier’s check payable to The Metropolitan St Louis Sewer District, in an amount not less than five percent (5%) of the bid, less allowances specified in the bid documents, or a bid bond in the penal sum of not less than five percent (5%) of the bid, less any allowances specified in the bid documents. The requirement for bonds may be waived for projects less than $50,000 if specified in the bid documents. 6. Rejection of Bids: Projects will be re-bid when it is in the best interest of the District. Except for such right of rejection, the District shall let the contract to the lowest responsive and responsible bidder. 7. Board Approval by Ordinance: Contracts for improvements shall be confirmed by Ordinance adopted by the Board and shall contain all requirements set forth in the Charter. 8. Contracts for Improvements: All contracts for improvements which involve labor shall contain provisions that the prevailing rates of pay shall be paid to skilled and unskilled labor employed thereon where applicable and that there shall be no discrimination in the selection or employment of labor because of race, creed, or color; and such provisions shall be stated in the invitations for bids and shall be included in proposals or bids for the work. 9. Alternative Delivery Contracts: The District may use design-build and other alternative delivery methods to make any improvements as permitted by Missouri law and Charter. 10. Bonds: Within a reasonable time after award of the contract and prior to the execution of the contract documents, the apparent successful bidder shall secure and file with the District a good and sufficient bond with a surety or sureties engaged in the bonding business, authorized under the laws of Missouri to do business in this State, and approved by the District. Said bond shall be conditioned upon the obligation of the payment by apparent successful bidder of all persons supplying labor and material in the prosecution of the work provided for in the contract in an amount approved by the District. The requirement for bonds may be waived for projects less than $50,000 if specified in the bid documents. 11. Insurance: Within a reasonable time after award of the contract and prior to execution of the contract documents, the apparent successful bidder shall secure and file with the District satisfactory evidence of those insurance policies required by the bid documents. 12. If any bidder awarded a contract shall fail to enter into a binding contract or furnish required performance security or insurance within the time specified in the bid documents, the District may take all steps to forfeit said bidder’s bid security to the District. 13. Return of Bid Security: As soon as a contract for capital improvements has been awarded, the District shall thereupon return to each unsuccessful bidder (except the next lowest responsive and responsible bidder) the bid security of bond or check accompanying each respective bid. The bid security of the next lowest responsive and responsible bidder shall be retained until the contract documents with the apparent low bidder have been signed, delivered and accepted by the District; thereupon, the District shall return all retained bid security to the next lowest responsive bidder. 14. Pre-Qualification Procedure: The District may require prequalification of prospective bidders for a project or projects. In order to prequalify for a project, a prospective bidder must provide all information requested on forms approved by the District and must comply with all reasonable requirements designated by the District. 15. Method of Payment: All contracts for capital improvements shall specify method and timing of payment. All contracts for capital improvements shall specify that the District and the contractor shall comply with the prompt payment requirements of Missouri law. SECTION 4: IMMEDIATE NEED and EMERGENCY PROCUREMENT 1. In case of an IMMEDIATE NEED or EMERGENCY, as defined in this Section, which requires the immediate purchase of construction, supplies, materials or services and when there is not adequate time to adhere to the formal procurement practice prescribed in this Ordinance, the Executive Director and Director of Finance shall be empowered to authorize the Purchasing Manager to secure by open market procedure, as herein set forth, at the lowest possible cost, any construction, supplies, materials or services. 2. An emergency condition exists when any part of the District's system, facilities or property is in a condition such that it is reasonably likely to cause loss of life, personal injury, property damage or other serious consequence or as otherwise defined in this Section. When the Executive Director determines that an emergency condition exists and that sufficient unencumbered funds are available, then the Executive Director is authorized to contract for such work or repairs. The contract for such work or repairs shall provide for a not-to-exceed contract amount and shall be effective immediately upon its execution, nothing in this Ordinance to the contrary notwithstanding. Provided, however, that the Executive Director shall furnish to the Board a full explanation of the facts and circumstances upon which the determination was based to let said contract, and the Secretary-Treasurer shall record the same in the Journal of the Board. a) EMERGENCY is a situation or condition which may vitally affect the life, safety, health and/or welfare of employees and/or citizens of the District or their property. An emergency shall also include those situations or conditions where the supplies, materials, equipment, property, and real property of the District are likely to be lost or severely damaged, or the condition may result in disruption of District operations or cause the District to not be in compliance with regulatory requirements. b) IMMEDIATE NEED is a situation or condition which does not qualify as an EMERGENCY, however, the failure to take prompt action may result in an unnecessary delay which could cause the situation or condition to become an EMERGENCY. Generally, this shall mean that the supplies, materials, or services are required in less than 14 days or the condition may result in disruption of District operations or cause the District to not be in compliance with regulatory requirements. SECTION 5: GENERAL REQUIREMENTS 1. All contracts for supplies, materials or services, wherein the District is a party, shall contain non- discrimination in employment clause(s) which shall provide that the contractor in the performance of the contract will not discriminate against any employee or applicant for employment because of race, creed, or religion, color, sex, or national origin. Actions of the contractor covered by the non-discrimination clause shall include but not be limited to the following: Employment; upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. 2. Prevailing rates of pay shall be paid to skilled and unskilled labor employed on contracts to which the provision is applicable. 3. The contractor will adhere to the District’s Minority and Women Owned Business (MWBE) guidelines in effect at the time of bidding to the extent applicable. SECTION 6: TYPES OF CONTRACTS 1. Multi-Year Contracts: The Executive Director, Director of Finance and the Purchasing Manager shall have authority to enter into contracts for supplies, materials or services for any period of time deemed to be in the best interests of the District provided the term of the contract and conditions for renewal or extension, if any, are included in the solicitation and the funds are available for the first fiscal year at the time of award. Payment and performance obligations for succeeding fiscal periods shall be subject to the availability and appropriation of funds therefor. 2. Cooperative Procurement: The District may either participate in or administer a Cooperative Purchasing Agreement for the procurement of supplies, materials or services with one or more Public Procurement Unit. 3. The Purchasing Manager shall use any type of contract consistent with the District Charter and Missouri law that will promote the best interest of the District. The Purchasing Manager may use a contract format other than firm fixed when it is in the best interest of the District. The foregoing ordinance was adopted on June 9, 2016.