HomeMy Public PortalAbout14824 Revisions to Purchasing Ordinance
ORDINANCE NO. 14824
AN ORDINANCE, repealing Ordinance No. 14397, adopted June 9, 2016 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.
WHEREAS, Ordinance No. 14397, adopted June 9, 2016, is hereby repealed,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.
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF
THE METROPOLITAN ST. LOUIS SEWER DISTRICT:
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
Department 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 Departments 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
securit y 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: Departments 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 departments 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 Department 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, or as prescribed by
Missouri statute. 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 of 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.
e. Requests for Proposals shall adhere to the rules in this Section above
except that proposals are not opened in public and the contents are not
disclosed until a contract is executed, or all proposals are rejected.
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 purchases between $3,000 and $25,000 , 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 Department 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; or
ii. Based on past procurement experience, it is determined that only
one distributor services the region in which the supplies are
needed; or
iii. Supplies are available at a discount from a single distributor for a
limited period of time.
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. 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.
Design-build delivery will be used for projects as recommended by staff and approved by
the Executive Director, according to established policy and procedure. When in the best
interest of the District all proposals may be rejected. Except for such right of rejection,
the Executive Director shall recommend the proposal providing the best overall value to
the District and shall cause the contract to be formally executed by the contractor and the
Executive Director. Such contract, before it becomes binding and effective, shall be
confirmed by ordinance adopted by the Board.
4. 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.
5. 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.
6. 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.
7. 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.
8. 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.
9. 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.
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 may 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 may
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 November 9, 2017.