HomeMy Public PortalAboutADM-110 Procurement Policy_Effective 01-03-2024
City of Lebanon
New Hampshire
ADMINISTRATIVE POLICIES & PROCEDURES
PROCUREMENT POLICY
Policy Number Effective Date Last Revision Page No.
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SECTION 1.0: PURPOSE
This policy was created to establish procurement procedures as required in
§ C419:35 Purchasing Procedure. The intent of this policy is to ensure the fair
and equitable treatment of all persons who interact with the procurement system
of the City; to maximize fully practicable the purchasing value of public funds; to
obtain in a cost-effective and responsive manner the materials, services and
construction services required by the City to better serve the City’s businesses
and residents. This policy establishes administrative procedures and dollar
thresholds and guides the methods of source selection and to establish a
consistent procedure for the orderly and expeditious processing of contracts,
agreements or other instruments of obligation binding the City in the
procurement of supplies, services and construction items.
SECTION 2.0: SCOPE
This Policy applies to all departments and functional areas of the City.
SECTION 3.0: DEFINITIONS
Contract is a written agreement, relative to services, products, tenancy, that is
intended to be enforceable by law.
Competitive Sealed Bidding (RFB) means a written solicitation for sealed
competitive bids used for the procurement of a commodity, group of commodities,
or services. The invitation for bids is used when the City is capable of specifically
defining the scope of work for which a contractual service is required or when the
City is capable of establishing precise specifications defining the actual commodity,
group of commodities or services required.
Competitive Sealed Proposals (RFP) means a written solicitation for sealed
competitive proposals for the procurement of a commodity, group of commodities,
or services. The request for proposals method is used when selection is made of
the proposal that offers the best value based on the published selection criteria and
ranking evaluation, followed by contract negotiation. This method permits the
consideration of non-price criteria and negotiation of scope of services.
Change Order is a written alteration to a contract or purchase order in accordance
with the terms of the contract unilaterally directing the contractor to make changes.
Modification is a written alteration to a provision of any contract accomplished by
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mutual agreement of the parties to the contract.
Memorandum of Agreement (MOA): An MOA is a document written between
parties to cooperatively work together on an agreed upon project or meet an agreed
upon objective. The purpose of an MOA is to have a written formal understanding
of the agreement between parties.
Memorandum of Understanding (MOU) is a document describing the broad
outlines of an agreement that two or more parties have reached.
Purchase Agreements are contracts, agreements or other instruments of
obligation binding the city in the purchasing of supplies, services and construction
items that are formal documents and not price quotations or purchase orders.
Purchase Orders authorizes a vendor to release goods or services to the City and
informs him/her that funds are available to pay for the goods or services. A purchase
order becomes a binding obligation when the vendor demonstrates his/her
acceptance through initiation of some action to fill the order.
Purchase Requisitions establish the need and provide justification for any
supplies, services and construction items and should be completed, with appropriate
substantiating documentation attached, in its entirety to include justification,
suggested suppliers and/or contractors, quantity, specifications, account code for
funding, vendor number when applicable, shipping, delivery and production
timetables and details, and pricing.
RFI-Request for Information- is a formal process for gathering information
from a potential suppliers of a good or service.
RFP-Request for Proposals- is a formal process to announce a project,
describe it, and solicit proposals from qualified contractors/vendors to complete
the project. The RFP should indicate evaluation criteria other than price, and
the relative weight given to price versus other factors. The RFP process allows
negotiation with proposers after opening of RFP responses.
RFB-Request for Bids- is a formal process to announce a procurement,
provide specifications for solicitation, and solicits bids from qualified
contractors/vendors to fulfill the procurement where price is the primary factor
beyond basic qualification of the bidder and conformity with the request
requirements.
RFQ-Request for Qualifications- is a formal process for requesting and
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receiving information from learned experts to determ ine their ability and
demonstrated competence to provide services to the City.
Responsible Bidder or Offeror means a person who has the capability in all
respects to perform fully the contract requirements and the integrity and
reliability which will assure good fair performance.
Responsive Bidder means a person who has submitted a bid which conforms
in all material respects to the Invitation for Bids.
Services means the furnishing of labor, time or effort by a contractor, not
involving the delivery of a specific product other than reports which are merely
incidental to the required performance.
LGBTQ+ Owned Business Enterprise is a business which is at least fifty-one
percent (51%) owned, managed, operated, and controlled by one or more lesbian,
gay, bisexual, or transgender (LGBTQ+) individuals.
Local Owned Business Enterprise means a business principally located within the
City of Lebanon and whose management and daily operation is controlled by the
qualifying party(s).
Minority Owned Business Enterprise is a business which is at least fifty-one
percent (51%) owned by one or more persons who is a member of a minority group
and whose management and daily operation is controlled by the qualifying party(s).
Minority groups are defined 42 USC 7141 as Asian Americans, Native Hawaiians, a
Pacific Islander, African American, Hispanic, Puerto Rican, Native Americans and
Alaska Natives.
Small Owned Business Enterprise is a business which (a) is at least fifty-one
percent (51%) owned by one but not more than 10 persons (b) the owner has a
personal net worth less than $10 million a year; (c) is located within the Claremont-
Lebanon, NH-VT micropolitan statistical area and finally (d) has been in business a
minimum of 1 year.
Veteran Owned Business Enterprise is a business which is at least fifty-one
percent (51%) owned by one or more veterans and whose management and daily
operation is controlled by the qualifying party(s).
Value is a combination of “what” is important and “how much” it is important. As for
the “what,” procurement considerations affecting value include:
• Consistency, reliability, and responsiveness from suppliers or service providers.
• Meeting preferences favoring veterans, minority-owned, women-owned or small
businesses, local purchasing, etc.
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• All costs identified through a life-cycle cost analysis.
• Reduction of risks such as schedule delays; costs added through change orders;
degradation of performance or service from an outsourced provider; potential legal
or financial risks; the need for City oversight of program delivery; the amount of
needed contract administration effort; or the likelihood of successful/unsuccessful
contract performance.
• Environmentally preferable aspects (more efficient scheduling leading to less
shipping impact, lower toxic materials content, less environmentally harmful
manufacturing, less harmful end of life disposal, etc.).
• Just-in-time ordering/shipping to avoid storage costs.
• Contracting out to eliminate internal resource costs or to achieve better results for
the same overall price.
Women Owned Business Enterprise is a business which is at least fifty-one
percent (51%) owned by one or more women and whose management and daily
operation is controlled by the qualifying party(s).
SECTION 4.0: POLICY DETAIL
4.1 General Provisions
As the principal contracting officer of the City, all purchase agreements require
City Manager approval; are subject to and contingent on City Manager
approval. This Policy applies to the expenditure of public funds for public
purchasing irrespective of the source of the funds. When purchasing involves
the expenditure of federal or state grant or contract funds, purchasing shall be
conducted in accordance with any mandatory applicable federal and state law
and regulations. This Policy also applies to the disposal of surplus City
property other than land/buildings which is addressed in CC-102. Nothing in
this Policy shall prevent the City from complying with the terms and conditions
of any grant, gift, bequest or cooperative agreement.
4.2 Exceptions
Certain purchases are not readily adaptable to the open market and formal
competitive selection process. Exceptions from this Policy shall be considered
on a case-by-case basis by the City Manager.
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New Hampshire
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4.3 Competition
Fair and open competition reduces the opportunity for favoritism and inspires public
confidence that contracts are awarded equitably and economically. Since the
marketplace is different for various supplies, services and construction items this
Policy authorizes a variety of source selection techniques designed to provide the
best competition for all types of purchasing. It also permits less formal
competitive procedures where the amount of the contract does not warrant the
expense and time otherwise involved.
4.4 Purchasing Methods
Unless otherwise deemed in the best interest of the City, all City contracts shall be
awarded by one of the following methods: Competitive Sealed Bidding;
Competitive Sealed Proposals; Sole Source Purchasing; Emergency Purchasing;
Special Purchases; and Purchasing Consultative and Professional Services Including
Legal, Architectural and Engineering Services.
SECTION 5.0: PROCEDURES
5.1 Duties and Authority
The City Manager or Deputy City Managers in the absence of the City Manager shall
approve purchase agreements equal to or greater than $10,000; department heads
have authority to commit the City in purchasing-related agreements of less than
$10,000 unless otherwise authorized in this policy. Department heads may authorize
their personnel to make retail and other purchases via credit card as long as those
purchases are less than $10,000 and in conformance with the provisions of the Credit
Card Policy, ADM-106 as revised.
Once a Purchase Order is issued, it is the responsibility of each department to
maintain and actively monitor the PO as well as associated contracts and/or
agreements.
5.2 Purchasing Thresholds
Use of purchase orders are required for purchases of $10,000 or more. Purchase
orders must be issued for purchases equal to or greater than $10,000; City Manager
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or in the absence of the City Manager, Deputy City Manager approval is required.
Purchase orders may be issued for purchases of less than $10,000 without City
Manager or Deputy City Manager approval. Certain purchases are not readily
adaptable to the use of purchase orders. Exceptions from this Policy shall be
considered on a case-by-case basis by the City Manager and incorporated as part of
this policy by reference.
Purchasing Type Approval Levels Approving Authority
Small Purchases < 10,000 Dept Heads
Medium Purchases = $10,000 < $50,000 City Manager
Large Purchases $50,000 or > City Manager
Software Purchases All software programs Software Review
Committee
5.3 Purchasing Types
There are four levels of purchasing requirements. Small purchases, medium
purchases, large purchases and software purchases.
CITY OF LEBANON PURCHASING THRESHOLD TABLE:
Purchasing Thresholds
Less than $10,000 =$10,000< $50,000 $50,000 or greater
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(If PO is required) Infrastructure> $100k
Purchases can be made directly by each
dept/ division.
Minimum of three (3) competitive quotes.
(a) Detailing each verbal quote as with written
Memo and attached to requisition; or
Formal Procurement actions (large
purchases of $50,000 or greater) shall be
solicited in a formal RFB, RFP, RFQ
process unless product or service is on a
formal bid contract such as state bid list.
Requisition entered into BS&A and
approval required from Dept Head.
(b) Attaching each written quote (recommended)
as an “Attachment” to the requisition.
A Bid requires an award to the lowest
and responsible bidder when the bid is
within budget. With an RFP the City is not
required to award the service provider
submitting the lowest price.
Critical information obtained from each service
provider to include:
(a) Current unit and extended prices
(b) Item quantity, description and part
number(s)
(c) Payment terms
(d) Point of Contact
(e) Email address to electronically transmit the
purchase order to the service provider.
Detailed guidelines for evaluation and
contract award must be part of the RFP
and must be completed within the
Procurement Program.
Bids must be submitted and opened in
the Procurement Program, which is open
for the public to view. Proposals are
opened in the Procurement Program and
become public information once they are
opened.
Additional Information to be entered on each
requisition request:
(a) GL Account
(b) Project ID/Account # if applicable
(c) Item (from item master or manual entry
(d) Description
Dept/Division initiating the bid/RFP is
responsible for creating the RFP in the
Procurement Program and completing
the following:
If purchase involves a service provider and
requires coming onto City owned property,
delivering hazardous materials (fuel, chemicals
etc., onto City property; or having access to City
data through their software. City must obtain,
prior to any of the above occurring from the
service provider:
(a) A completed MSA/PSA and/or a signed
City Indemnification Agreement.
(b) Valid Insurance certificate naming the
City as additional insured, by written
endorsement and with a waiver of
subrogation favoring the City, with
respect to general and possibly
automobile and umbrella liability.
(a) Sending Bids/RFPs to prospective
bidders/respondents in
procurement program
(b) Receiving questions from
prospective bidders/respondents
Coordinating a response from the
responsible dept/division and
issuing all addenda
(c) Receiving, opening and tabulating
all bids/proposals received and
opened and providing the following:
(1) A tabulation of all
bids/proposals received and
opened.
(2) A copy of each bid/proposal
(3) Reviewing the award
recommendation
(4) Preparing all contract
documents to include request
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New Hampshire
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for payment and performance
bonds and insurance
certificate(s)
(5) Sending to and coordinating the
signing of all contract
documents with the
bidder/respondent
(6) Providing the requesting
dept/division with copy of all
completed contract documents.
Requisition entered into BS&A and approval
required from Dept Head and the City Manager Dept/Division initiating the bid/RFP is
responsible for entering the Purchase
Order Requisition into BS&A
Other Critical information to be obtained
from each bidder/service provider:
(a) Fully executed Notice of Award,
Notice to Proceed, Agreement, COI
and all associated documentation
tied to the RFP
(b) Point of Contact
(c) Email address to electronically
transmit purchase order to the
service provider.
Additional information to be entered on
each requisition request.
(a) GL Account
(b) Project ID/Account #
(c) Description
5.3.1 Small Level Purchases
Small purchases are considered informal procurement actions. Procurement
requirements shall not be artificially divided so as to constitute a small purchase.
Total price is less than $10,000, it shall be made after adequate inquiry based on the
department head or his/her designee's knowledge of a reasonable price and
satisfactory quality.
5.3.2 Medium Level Purchases
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Products and services that have a total price more than are equal to $10,000 but less
than $50,000. When the total price is equal to or greater than $10,000, and not more
than $50,000, purchases shall be made using written price or rate quotations from
an adequate number of suppliers/providers. If available, a minimum of three
quotations from qualified suppliers/providers shall be obtained. Such price and rate
quotations, the date of such quotations and the names of suppliers shall be
documented.
5.3.3 Large Level Purchases
Large purchases are considered formal procurement actions and shall be solicited in
a formal RFB, RFP or RFQ process unless the product or service is on a formal bid
contract such as a state bid list. Large purchases involve products, projects or
services that exceed $50,000.
5.3.4 Purchasing of Software or Software as a Service
Computer and cyber-related purchases must be approved beforehand by the Cyber
Services Dept. Software programs installed on a local hard drive may interact
negatively with existing programs. All employees must therefore consult with the
Cyber Services Dept. before purchasing or installing any software. The Technology
Review Committee shall review and approve all requests for the purchase of software
or software as a service. This requirement is an additional requirement to the other
requirements for purchasing.
5.3.5 Emergency Purchasing
The City Manager may suspend provisions of this policy and implement streamlined
purchasing provisions when an emergency is declared by the City Manager in
accordance with the City’s Emergency Operations Plan.
5.4 Development of Specifications for a Quote, RFB, RFP or RFQ
Solicitations by the City for goods or services should to the extent possible be
developed and managed through the City’s online procurement software program.
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Templates are available through the software program specifically made for the City
as well as a library from other municipalities.
5.5 Procurement Processes
5.5.1 Competitive Sealed Bidding (RFB)
Purchasing using the RFB process City shall be made on the basis of competitive
bids where practical. Competitive bidding is deemed generally impractical for the
following sorts of purchases:
A. Goods or services valued at less than $50,000.
B. Professional or other services involving special skills, training, experience, and/or
discretion;
C. Goods or services required in an emergency;
D. Goods or services available from a single source.
E. Goods or services where factors other than price or cost require comparative
judgment.
5.5.1.1 Bidding Process
A. For purchases by competitive bidding, a notice inviting bids shall be added to the
City’s procurement portal at least seven days preceding the last day set for the
receipt of bids. Other forms of notice likely to come to the attention of prospective
bidders may also be given.
B. The notice shall generally describe the goods to be purchased and shall state
how to obtain bid forms, specifications and other available information, the period
for submitting bids, and the time and place for the opening of the bids.
C. All bids shall be submitted to the City through the City’s procurement portal.
D. No bids shall be opened until the appointed time.
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E. At the time and place stated in the public notice all bids shall be opened by the
appropriate City staff member. All bid openings shall be open to the public and all
bids shall be available for examination.
5.5.1.2 Awards
Awarding of bids shall be based on the lowest responsible bidder. In determining the
lowest responsible bidder, the City Manager may consider;
A. Price of the goods or services offered;
B. The capacity, skill, financial resources of the bidder to perform fully and properly;
C. The character, integrity, reputation, judgement, experience and efficiency of the
bidder;
D. The quality of the bidder’s performance on previous contracts with the City and
others;
E. Any conditions attached to the bid.
5.5.2 Competitive Sealed Proposals (RFP)
Purchasing RFP shall be made on the basis of competitive proposals where
practical. The Competitive Sealed Proposals process is when best value and price
are considered. The RFP process should be used when,
A. Goods or services valued at more than $50,000;
B. Infrastructure construction projects valued at more than $100,000;
B. Professional or other services involving special skills, training, experience, and/or
discretion;
C. When detailed specifications are not easily articulated;
D. Where there is the potential for variations regarding quality from one vendor to
another;
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E. Goods or services where factors other than price or cost require comparative
judgment;
F. Where lifecycle analysis between products or services is likely to occur.
The RFP process allows for negotiation with vendors after proposals are unsealed to
achieve a better price and/or quality of services.
5.5.3 Purchasing Consultative and Professional Services Including Legal,
Architectural And Engineering Services (RFQ)
5.5.3.1 General. It is the policy of the City to negotiate consultative and professional
services contracts including legal, architectural, engineering, human resources, cyber
services, data processing, planning, auditing, public relations services, etc., based on
demonstrated competence and qualification for the type of service required at fair
and reasonable prices.
5.5.3.2 Discussions and Selection of the Most Qualified Firms. The City shall
hold discussion with the firms selected regarding the proposed contract to determine
each firm’s general capabilities and qualifications for performing the contract; and
explore the scope and nature of the required services and the relative utility of
alternative methods of approach. After discussions the City shall reevaluate and
select, in order of preference, contractors which it deems to be the most highly
qualified to provide the required services. The procurement of Engineering,
Architectural and Survey services shall generally follow procedures outlined by the
American Council of Engineering Companies of New Hampshire, Qualification Based
Selection Process https://www.acec-nh.org/?s=QBS+Process . Additionally, the
provisions of RSA 21-I:22 Selection of Engineers, Architects and Surveyors should be
used as a guideline. These guidelines may also be used for selection of other
consultative and professional services.
5.5.3.3 Negotiation of Contract. The City shall negotiate a contract with the most
qualified firm for the required services at compensation determined to be fair and
reasonable to the City. Contract negotiations shall be directed toward: making
certain that the firm has a clear understanding of the scope of the work, specifically,
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the essential requirements involved in providing the required services; determining
that the firm will make available the necessary personnel and facilities to perform the
services within the required time; and agreeing upon compensation which is fair and
reasonable, taking into account the estimated value, scope, complexity, and nature
of the required services. If fair and reasonable compensation, contract requirements,
and contract documents can be agreed upon with the most qualified firm, the contract
shall be awarded to that firm.
5.5.4 Request for Information (RFI)
An RFI (request for information) is a formal process for gathering information from
potential suppliers of a good or service. An RFI is typically the first and most broad
series of requests intended to narrow down a list of potential vendor candidates.
RFIs can be useful in situations where the City has little knowledge on possible
vendors and wants to reduce the time and cost of evaluating vendors. The goal of
using an RFI is to gather information on a market in a formal, structured way. The
document should identify the requirements the City has while requesting specific
answers to how the vendor will meet them.
To help identify differences among vendors, a good RFI will also focus on
requirements that are unique to the City and on concerns that are less likely to be
addressed by every vendor. Potential vendors are usually asked to submit their
responses in a standard format to make comparisons easier.
5.6 Bond Requirements
The City has three types of bond requirements for contractors of services or
products procured by the City.
5.6.1 Payment Bonds
Contracts entered into with the City for the construction, repair or rebuilding of
public buildings, public highways, bridges or other public works shall if said contract
involves an expenditure of $125,000 or may if it involves an expenditure of less
amount, obtain as a condition precedent to the execution of the contract, sufficient
security, by bond or otherwise, in an amount equal to at least 100 percent of the
contract price, or of the estimated cost of the work if no aggregate price is agreed
upon, conditioned upon the payment by the contractors and subcontractors for all
labor performed or furnished, for all equipment hired, including trucks, for all
material used and for fuels, lubricants, power, tools, hardware and supplies
purchased by said principal and used in carrying out said contract, and for labor
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and parts furnished upon the order of said contractor for the repair of equipment
used in carrying out said contract.
5.6.2 Performance Bonds
The liens given by RSA 447:5-14, inclusive, shall attach to any money due or to
become due from the City virtue of any contract for any public work or
construction, alteration, or repair, in the performance of which contract the lienor
participated by performing labor, providing professional design services, or
furnishing materials or supplies. Such liens shall not attach, however, unless filed
within 90 days after the completion and acceptance of the project by the
contracting party, whether such contracting party is the City.
5.6.3 Bid Bond
A bid bond protects the City in a construction bidding process. It is a guarantee that
the bidder, provide to the City to ensure that if the bidder fails to honor the terms
of the bid, the City will be compensated. A bid bond is typically obtained through a
surety agency, such as an insurance company or bank, and it helps guarantee that
a contractor is financially stable and has the necessary resources to take on a
project. Bid bonds are generally 5% to 20% depending upon the project.
5.7 Insurance Requirements
Insurance requirements will vary depending upon the types and dollar value of
services being provided. There are several key components that must be
considered and where appropriate added to contract language.
1. Listing the City as an additional insured party. The Certificate of Insurance
(COI) must clearly indicate the City is an additional insured party for the
particular coverage area.
2. Some services or products should where possible have language that
indemnifies the City for liability and legal representation regarding claims
that might be filed against the City as a result of the actions or omissions of
the contractor.
3. Environmental insurance coverage is an important coverage area for work
that poses a risk of contamination or the need to for environmental cleanup.
4. Cyber breach or cyber security coverage for providers providing software as
a service, those collecting and retaining personal identifying information or
other private/sensitive information.
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5. Workers Compensation insurance coverage for contractors providing services
to the City. WC coverage only required for contractors that have employees.
If the contractor is the sole employee and the owner of a company WC
coverage is not required under present state statutes.
6. Coverage limits for liability insurance and other coverage areas must be
considered. The City has templated language which includes standard
insurance coverage limits. The City Manager may waive some of the
templated limits at the request of a department director when appropriate
depending upon the project or service provided.
7. Builder’s Risk insurance must be provided with an insurance certificate to the
City naming the City as the payee for building construction projects.
8. Contractors utilizing vehicles as a component of the service provided must
show proof of automobile insurance.
9. Professional liability insurance for architects, engineers, surveyors, or other
industry professionals must be provided, naming the City as an additional
insurer.
The City’s insurer provides templated language for indemnification and insurance
requirements. It is incumbent upon departments to ensure contractors working for
the City have updated certificates of insurance that are active, not expired, when
the contractor is performing work for the City.
5.8 Contracts
Contracts and other agreements are important documents to ensure the City and
the supplier/provider are clear as to that the responsibilities are of each of the
parties involved in the agreement. Contracts should be developed within the
procurement software program. All contracts and agreements must be recorded in
the procurement software.
5.8.1 Signatory for Contracts, Agreements and Memorandums of
Understanding relative to purchasing
The City Manager is the only official authorized to execute contracts or agreements
regarding the purchasing of services or other agreements which create a financial
liability on the City short or long term (beyond the present budget year).
5.8.2 Change Orders
Change orders to contracts may be executed according to change order clauses
provided for in the original contract provided the change order does not materially
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change the scope of the original procurement. All change orders must be approved
by the City Manager or designee.
5.9 Conflicts of Interest
No employee, officer or agent (E/O/A) operating on behalf of the City shall
participate in the selection, award, and/or administration of a contract if a conflict
of interest with regards to tangible personal benefit, real or reputed, would be
involved (references F and H). In addition to an E/O/A, this further includes their
spouse/partner, and family members.
It is a violation of this policy for any person identified above to;
1. Sell goods and/or services, regardless of the amount, to any customer
department without participating in a competitive quote process solicited by the
City.
2. Knowingly misrepresent a vendor’s prices, quality, or services to obtain
concessions.
3. Participate in the evaluation or recommendation of a solicitation process if the
person holds an interest in any business or undertaking which maybe directly and
substantially affected to its' economic benefit by an official action to be taken.
4. Assist a vendor in:
a. preparing their response to a RFB, RFP, Quote, or Statement of Qualifications, or
b. to share procurement-sensitive information related to a competitive procurement
with vendors without providing it to all vendors through an addendum process.
Procurement-sensitive information includes, but is not limited to, Requirements,
Specifications, Statements of Work, or Evaluation Criteria.
5. Participate in the evaluation or recommendation of a solicitation process if a
vendor would be perceived as having an unfair advantage because of activities or
relationships with a member of the evaluation team or decision-maker.
6. Fail to adhere to ADM-108 Ethics Policy or Council Ethics Policy CC-108 as
applicable.
5.10 Waivers of Procurement Procedures
There are occasions in which departments may request a waiver of the purchasing
process, described below. A purchase order, approved insurance and a contract for
services greater than $50,000, are required for all waivers of the purchasing
process. Note: Unless an alternate period of time is identified in the waiver
approval, a waiver may be used once.
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5.10.1 Quote Waiver (for goods or services equal to or greater than $10,000 but
less than $50,000).
A waiver of the Informal (quotation) process (= or >$10,000 < $50,000.00, three
(3 quotes), which may be requested by a department when they have compelling
reasons. Such a request must be requested in writing to the City Manager, and
must include all details of the requested purchase, including scope of work /pricing
document (quotation, proposal) from the vendor for which the waiver is sought,
and a thorough fact-based explanation as to why the City Manager should consider
waiving the informal solicitation process. If approval is obtained, both the
department’s written request, including any referenced documents and the City
Manager's approval, must be attached to the requisition for a purchase order.
5.10.2 Bid Waiver (for goods or services greater than $50,000)
A waiver of the formal solicitation process (> $50,000, Bids and RFPs) may be
requested by the department when they have compelling reasons. Such a request
must be made in writing to the City Manager, and must include all details of the
requested purchase, including a scope of work /pricing document (quotation,
proposal) from the vendor for which a waiver is sought and a thorough fact-based
explanation as to why the City Manager should consider waiving the formal
solicitation process. If approval is obtained, both the department’s written request,
including any referenced documents and the City Manager's approval, must be
attached to the requisition for a purchase order.
5.10.3 Sole Source (greater than $10,000)
A waiver of the informal or formal solicitation process (quotes, RFBs and RFPs,
anything > $10,000) in the form of a Sole Source may be requested by the
department when there is only one vendor able to provide the good or service.
Such a request must be requested of the City Manager, in writing, and must include
all details of the requested purchase, including a scope of work /pricing document
(quotation, proposal) from the vendor for which a Sole Source is sought,
documentation of Sole Source justification including a thorough explanation and
documentation detailing the nature and proof of the Sole Source. If approval is
obtained, both the department’s written request, including any referenced
documents and the City Manager's approval, must be attached to the requisition for
a purchase order.
5.11 Debarred or Suspended Vendors
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The City will not award a solicitation to a vendor that has been debarred or
suspended by the federal, state or the City. The City Manager may suspend or
debar a vendor from providing goods or services to the City for violations of law.
5.12 Equipment Leasing and/or Purchases
Leasing of vehicles or equipment must be approved in advance by the City
Manager. The City Manager or Deputy City Manager when designated is the only
official authorized to enter into a lease agreement. Contractual language for lease
or lease to own must either contain a non-appropriation clause or require approval
from the City Council with a supermajority vote.
5.13 Disadvantaged Business Enterprises
The City will take the following steps to enhance the opportunities for local, small,
veteran, minority, LGBTQ+ and women’s owned business enterprises by taking the
following steps;
A. Allowing local, small, veteran, minority, LGBTQ+ and women’s owned business
enterprises to be placed on solicitation lists which will notify them of opportunities to
bid on City projects.
B. Using the services and assistance, as appropriate, of such organizations as the
Small Business Administration and the Minority Business Development Agency of the
Department of Commerce.
C. Requiring the prime contractor, if subcontracts are to be let, to take the affirmative
steps listed above.
D. Ensure bidding and solicitation processes are in compliance with CO185
Welcoming Lebanon.
5.14 Sustainability Preferences
Staff will refer to and use ADM-150 Environmental Procurement Policy for
the purchase of all relevant equipment, goods, and services. The intent of
ADM-150 is to reduce or eliminate negative environmental and health effects
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of City purchases and projects. It pertains to all departments and functional
areas of the City, including but not limited to:
• Construction and Renovation
• Operations and Maintenance
• Custodial/Janitorial
• Pest Control
• Landscaping
• Street and Sidewalk Snow and Ice Removal
• Office Supplies
• Recreation and Arts
• Paving and Concrete Work
• Vehicle and Equipment Purchase and Maintenance
Every department is responsible for making sure that its Staff understand
and follow ADM-150, and that suppliers and contractors use it to provide the
City with products and services that meet the Policy’s intent. ADM-150 shall
be referenced in all relevant procurement documents.
5.15 Requisition and Purchase Order Process
All requests will be processed in the current software system. A requisition request
should be submitted with as many details as available and applicable, to include
vendor, approval department, description, price source, where to direct invoices
(requested by field), ship to location, general ledger number to charge, and a
breakdown of items(s) based on quantity and cost as well as any notes necessary.
The software system will recognize the input approval department and trigger the
correct workflow to obtain the necessary approvals by required individuals; to
include the Department Head, Deputy Finance Director, City Manager, and Finance
Director. Where appropriate, as with the multiple divisions of Public Works,
approval will also be required by the appropriate Manager/Superintendent which is
also designated by the workflow.
All supporting documents to include contracts and/or agreements signed by the City
Manager, proof of insurance, quote(s), bid(s), etc. need to be added to the
attachment section and must be in PDF format. Once requisition is posted, the
department making the request can print the purchase order to a PDF and email it
to the appropriate vendor.
If a purchase is made greater than the amount allowed by a Department Head,
without a purchase order, a memo must be submitted to the City Manager
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explaining why this occurred. Once the memo is signed, a PDF version of the memo
will be attached to the appropriate invoice for payment processing.
5.16 Piggybacking
Piggybacking is defined as a form of intergovernmental cooperative purchasing in
which a governmental entity has completed a solicitation (RFQ,RFI, RFP) with a
competitive process similar to the City’s, and identifies that the same pricing and
terms of contract may be extended to other governmental entities. If agreeable to
the originating governmental entity(either identified in their solicitation or obtained
in writing from their Purchasing Director/Manager) and the award vendor, another
governmental entity may use the same pricing and contract terms.
1. The City may piggyback on another governmental entity’s competitively procured
solicitation to obtain goods or services, providing the following requirements are
met:
a. Proof of competitive procurement
b. Agreement from both the governmental entity and the vendor to piggyback
c. Vendor agrees to provide the City the pricing they originally bid
d. More than one (1) vendor responded to the solicitation
e. Contract / Contract Renewal occurred within the last 12 months
f. Award vendor agrees to meet our insurance requirements
g. If any portion of the City purchase is Federally funded, or if your purchase is
funded by any other type of grant, contact the City Manager’s Office first, as it may
not be allowable to piggyback.
2. Other governmental entities may piggyback on the City’s solicitations to acquire
goods and services, providing the following requirements are met:
a. The City Manager agrees; either as identified by the presence of
piggyback/cooperative language in the solicitation, or obtained in writing from the
City Manager;
b. The governmental agency shall deal directly with any vendor concerning the
placement of Purchase Orders, freight charges, contracting and disputes, invoicing,
and payment; and
c. The City shall not be held liable or responsible for any liability, claims, costs,
damages, demands, actions, losses, judgments or expenses incurred by the vendor
or any government entity relating to such use.
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New Hampshire
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5.17 Cooperative Purchasing Cooperative Purchasing is defined as a formal
procurement conducted by a government Purchasing Cooperative on behalf of a
governmental group with a common need, to aggregate demand and obtain lower
prices. Some cooperatives cater only to specific forms of government, such as
school districts or local government, so the cooperative’s regulations must be
reviewed thoroughly to ensure a City can utilize the contract. If any portion of the
City purchase is Federally funded, or if your purchase is funded by any other type
of grant, contact the City Manager’s Office first, as it may not be allowable to use a
cooperative.
5.18 Purchase Order Exceptions
The following purchases do not require a purchase order;
Utility Bills & Property Tax Bills Principal & Interest Payments on Bonds
Advertising Welfare Payments
Travel Legal & Audit Fees
Vehicle Allowance Insurance Premiums
Subsistence & Support to Persons Postage
Rents & Leases (after initial approval) Designated Budgetary Transfers
between Funds including to CRFs
Payroll Related Payments Maintenance Agreements and Service
Contracts for their 2nd and subsequent
payments
Judgements & Claims Subscription Renewals
Budgeted payments to Outside Human
Service Agencies, Outside Recreation
Organizations, Advance Transit, etc.
Remittance of Property Taxes Levied
and Collected on Behalf of the School
District, County or State
Annual Dues Salt & Winter Sand
5.19 Procurement Records
All determinations and other written records pertaining to the solicitation, award or
performance of a contract shall be maintained for the City in procurement software
or appropriate records database. All procurement records shall be retained and
disposed of by the City according to RSA 33-A, the records retention guidelines,
Internal Revenue requirements, applicable grant requirements and schedules of the
City.
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5.20 Procurement Software System
All RFBs, RFPs, RFQs and RFIs processes shall be conducted within the procurement
software system.
1. Proposals must be submitted through the software system.
2. All contracts will be entered into the procurement software system to include
insurance certificates and bonds.
3. Proposals, awards and contracts shall be available for public inspection through
the procurement software program on the City’s website unless they are
exempted under applicable provisions of federal, state or local law.
5.21 Bulk Purchases
Whenever feasible, procurements shall be done in bulk to take full advantage of
discounts. Purchasing departments shall be responsible for anticipating their needs
in a timely fashion in order to consolidate and expedite procurement of the same
type of items. A lead purchasing department(s) shall be identified for procurement of
commodities or services that are most common in the City. The lead purchasing
department shall accomplish the bulk citywide procurement action based on
requirements identified by other departments. Capital outlay requirements shall be
planned and scheduled for periodic bulk procurement actions based on approved
budget quantities.
5.22 Protested Solicitations and Awards
A. Right to Protest. Any actual or prospective bidder who is allegedly
aggrieved in connection with the solicitation or pending award of a
contract may protest to the City Manager.
B. Notice. A notice of protest must be submitted no later than 5:00 p.m., on the
fifth full business day after posting of the award recommendation. The protest
must be in writing and must identify the protesting party and the project
number and title and shall include a factual summary of the basis of the
protest.
The formal written protest shall; identify the protesting party and the
solicitation involved; include a clear statement of the grounds on which the
protest is based; refer to the statutes, laws, ordinances or other legal
authorities which the protesting party deems applicable to such grounds;
and specifically request the relief to which the protesting party deems itself
entitled by application of such authorities to such grounds.
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A formal written protest is considered filed with the City when it is
received by the City Manager’s Office. Accordingly, a protest is not timely
filed unless it is received within the times specified above. Failure to file a
formal written protest within the time period specified shall result in
relinquishment of all rights of protest by the vendor and abrogation of any
further bid protest proceedings.
These procedures shall be the sole remedy for challenging an award
of bid. Bidders are prohibited from attempts to influence, persuade or
promote through any other channels or means.
The time limits in which protests must be filed as specified herein
may be altered by specific provisions in the RFB/RFP/RFQ.
C. Authority to Resolve. The City Manager shall attempt to resolve the
protest in a fair and equitable manner and shall render a written decision to
the protestant.
D. Stay of procurement during protests. In the event of a timely protest,
the City Manager shall not proceed further with the solicitation or with the
pending award of the contract until a determination that the award of the
contract without delay is necessary to protect substantial interests of the
City.
SECTION 6.0: REFERENCES (Charter/Code/State Statues)
1. NH RSA 31:3 General Powers and Duties of Towns
2. NH RSA 44:2 Cities and Wards, Provisions Applicable
3. NH RSA 447:16 Bond Required
4. NH RSA 21-I:22 (Used as a guideline only) Selection of Engineers, Architects
and Surveyors
5. City Charter Section 419:35 Purchasing Procedure
6. City Charter Section 419:37 Financial Control
7. City Charter Section 419:38 False Certification, Penalty
8. City Charter Section 419:39 Unauthorized Payment, Penalty
9. City Charter Section 419:20 Dealings of Council and City
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New Hampshire
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10. City Charter Section 419:63 Private Use of Public Property
11. City Council Procurement Policy CC-103
12. Credit Card Policy ADM-106
13. Ethics Policy ADM-108
14. City Council Ethics Policy CC-108
15. American Council of Engineering Companies of New Hampshire, QBS Process
16. Environmental Procurement Policy ADM-150
17. Fleet Electrification Policy ADM-149
18. US Department of Commerce, Economics and Statistics Administration US
Census Bureau
19. 42 USC 1741 Office of Minority Economic Impact
SECTION 7.0: POLICY & PROCEDURE REVISION HISTORY
Section Revisions Date
Original Adoption 06-01-A 6/10/2006
Amendment 08-02-A 7/5/2008
Amendment All ADM-110,complete re-write 1/3/2024
Amendment