HomeMy Public PortalAbout15310 REVISED Purchasing Ordinance 9-23-19ORDINANCE NO. 15310
AN ORDINANCE, repealing Ordinance No. 14824, adopted November 9, 2017,
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. 14824, adopted November 9, 2017, 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repealed, provided, however, that any existing legal rights, duties, obligations or relationships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. MSD may raise the purchasing thresholds up to, but may not exceed, the Missouri statutory
limit.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.
8. 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.
9. 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.
10. Consent Decree Compliance: 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 $50,000: Except as otherwise provided herein, all supplies,
materials or services, when the estimated cost thereof shall exceed Fifty Thousand
Dollars ($50,000.00), shall be purchased by formal written contract from the lowest
responsive and responsible bidder, after due notice inviting bids.
a. Advertise for bids in at least two daily newspapers of general circulation in such
places as are most likely to reach prospective bidders and may advertise in at least
two weekly minority newspapers and may provide such information through an
electronic medium available to the general public at least five days before bids for
such purchases are to be opened. Other methods of advertisement, which may
include minority business purchase councils, however, may be adopted by the
commissioner of administration when such other methods are deemed more
advantageous for the supplies to be purchased;
b. Post a notice of the proposed purchase on the MSD website; and
c. Solicit bids by mail or other reasonable method generally available to the public from
prospective suppliers. All bids for such supplies shall be mailed or delivered to the
MSD Purchasing Division office so as to reach such office before the time set for
opening bids.
d. 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.
e. 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.
f. All procurements for Professional Services greater than $50,000 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.
g. 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 $50,000:
a. Dollar Threshold Exception to Formal Advertising Requirements: All purchases of
supplies, materials or services of less than the estimated value of Fifty Thousand
Dollars ($50,000.00) 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 $10,000 and $50,000, 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 less than Ten Thousand Dollars ($10,000.00) 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;
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 Fifty Thousand Dollars ($50,000) 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.
1. 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 14, 2019.