Procurement Policy

Cattaraugus County Land Bank Corporation Purchasing Policy

Section 1 – Objectives

1.1 The objectives of the Cattaraugus County Land Bank Purchasing Policy are as follows:

• Comply with the legal requirements of public purchasing
• Assure vendors of impartial and equal treatment
• Assure taxpayers that CCLBC is receiving maximum dollar value
• Assure that departments have the necessary supplies needed for a specific task
• Keep purchases within budgetary limits by securing only those goods and services for which funds have been approved
• Participate in any and all cooperative purchasing programs that are statutorily permissible and approved for use by the CCLBC Board.

Section 2 - General Guidelines

2.1 Application.

1. This policy applies to contracts for the purchase of supplies, equipment, services and construction entered into by CCLBC , after the effective date of this policy.
2. It shall apply to every expenditure of public funds by CCLBC regardless ofthe source of the funds.
3. When the purchase involves the expenditure of federal or state assistance or contract funds, the purchase shall be conducted in accordance with any mandatory applicable federal or state laws and regulations.
4. Nothing in the policy shall prevent any public agency from complying with the terms and conditions of any grant, gift or bequest that is otherwise consistent with the law.

2.2 Planning.

1. Planning for purchases should be done on both a short-term and long-term basis.
2. Small orders and last minute purchases should be minimized, thereby increasing the capability of each department to purchase its goods and services in larger quantities which often offer discounts in payment terms.
3. Planning will also minimize the amount of clerical and supervisory time spent on documenting purchases.
4. Purchasing amounts larger than what will be needed in one fiscal year or what will not be used prior to the end of a material’s shelf-life is discouraged.
5. 5 Large purchases or projects may require additional planning.
   1. In these instances, professional and/or technical assistance in preparing bid specifications and/or contract documents may be needed.
   2. The time needed to contact and secure the services of these types of resource people must be considered when in the planning stage.
6. A further concern is the careful examination of applicable regulations in those cases where state or federal grant or loan funds are involved.
   1. These funds usually require recipients to meet specific bid requirements and specifications.
   2. Moreover, bids may need to be requested prior to confirmation that the grant or loan will be made to CCLBC.
   3. CCLBC and the bidder chosen must be aware of the additional record keeping and methods necessary to submit payment requests from the agency involved.

2.3 Overdrafts Prohibited.

1 Purchases will not be authorized which would overdraft a budgetary account.

2.4 Buying Proper Quality.

.1 Quality and service are just as important as price and it is the duty of the requisitioning department to secure the best quality for the purpose intended.

.2 Quality buying is the buying of goods or services that will meet, but not exceed, the requirements for which they are intended.

.3 In some instances, the primary consideration is durability.

.4 With other purchases, primary consideration may be immediate availability, ease of installation, frequency of repair or efficiency of operation.

.5 It is the responsibility of the CCLBC to become familiar enough with the available goods or services to determine the appropriate quality required in order to develop specifications.

2.5 Local Buying.

.1 It is the desire of the CCLBC to purchase from local vendors whenever possible.

.2 This can be accomplished by assuring that local vendors who have goods or services which are needed by CCLBC are included in the competitive shopping process which precedes most purchases.

2.6 Conflict of Interest.

.1 No CCLBC officer or employee will have an interest in any contract with the CCLBC of which he is an officer or employee, when such employee has the power or duty to:

.1 Negotiate, prepare, authorize or approve a contract or authorize or approve its payment.

.2 Audit bills or claims.

.3 Appoint an officer or employee who has any of the powers or duties set forth above.

.2 “Contract” in this context refers to any claim, demand against or agreement with the
CCLBC, either express or implied.

.3 Any CCLBC officer or employee who has, will have, or acquires an interest in, any actual or proposed contract with the CCLBC of which he or she is an officer or employee, shall publicly disclose the nature and extent of such interest in writing to the CCLBC Board as soon as he or she has knowledge of an actual or prospective interest.

.4 This written disclosure will be made part of the official minutes of the CCLBC Board.

.5 If any officer or employee has reason to believe that he or she may have a conflict of interest, then CCLBC Attorney should be contacted immediately.

2.7 Sales Tax.

.1

.2 The CCLBC is exempt from paying New York State Sales Tax and Federal Excise taxes. The CCLBC can provide the necessary exemption documents to any vendor upon request.

2.8 Public Access.

.1 Whenever any person outside CCLBC requests information on a bid, prior to bid award, including cost estimates, refer the caller to CCLBC Attorney or contact CCLBC Attorney as to what information is acceptable to release. .2 Trade secrets and confidential or proprietary information submitted by a bidder cannot be revealed to any person outside CCLBC or to any County employee not involved in the bid or award process.

.3 Whenever in doubt, contact CCLBC Attorney.

2.9 Endorsements.

.1 It is CCLBC policy to not endorse or in any way permit any employee’s name, position or
the CCLBCs name to be used and advertised as supporting a product or vendor. .2 Firms may not use the CCLBCs name, supportive documentation or photographs of CCLBC projects they have participated in for promotional use without the approval of the CCLBC Board.

2.10 Personal Purchases.

.1 Non-public purchases by employees of equipment or supplies through the CCLBC for personal use are prohibited.

.2 CCLBC employees are also prohibited from using the CCLBC’s name or the employee’s position to obtain special consideration in personal purchases.

2.11 Violation of Policy.

.1 Purchases made outside the approved procedures contained in this document will be considered void and not an obligation of CCLBC.

.2 Employees making an unauthorized purchase may be held personally responsible for the purchase.

2.12 “Brand Name or Equal” Specification.

.1 The use of “brand name or equal” specification may be used when the CCLBCdetermines that use of a “brand name or equal” specification is in the CCLBC’s best interest.

.2 The CCLBC shall seek to identify sources from which the designated brand name item or items can be obtained and shall solicit such sources to achieve whatever degree of price competition is practicable.

.3 If only one source can supply the requirement, then the procurement shall be made under Section 3.7 (Sole Source Procurement).

2.13 Non-Discrimination.

.1 Every contract or purchase order issued by CCLBC shall be entered into under the provision which requires the contractor, subcontractor or vendor not to discriminate against any employee or applicant for employment because of his or her age, race, creed, color, national origin, sex, sexual preference or disability.

2.14 Recycling.
.1 In recognition of the continuing need to be environmentally responsible, recycled goods should be considered when deemed appropriate and fiscally responsible.
2.15 Prepayments.
.1 Prepayment should generally not be made using County funds.
.2 This policy is consistent with New York State General Municipal Law Section 369 and Opinions of the State Comptroller 81-83 and 81-90.
.3 Prepayment of the following items is permitted:
.1 Dues to Professional Organizations
.2 Subscriptions
.3 Space Rental.
2.16 Purchase Card.
.1 CCLBC has implemented a Purchase Card Program to:
.1 Reduce the volume of small dollar purchases.
.2 Reduce the amount of paperwork involved in the regular voucher system.
.3 Streamline the paperwork and reduce costs.
.2 CCLBC Purchase Card should be used as the preferred method of payment for purchases at a level to be determined by the CCLBC Board.
2.17 CCLBC Policies.
.1 Purchases are also subject to such other policies as may be promulgated by CCLBC Board which include, but are not limited to:
.1 corporate compliance;
.2 ethics;
.3 cellular telephones.
Section 3 - Purchasing Procedures 3.1 The following grid summarizes the CCLBC Purchasing Policy for: Commodities and Equipment; Public Works; Emergencies – Commodities and Equipment; Emergencies – Public Works; Services and Professional Services. The definitions below pertain to the grid on the following page: “Contract Execution” means the authorized signing of the document that binds CCLBC and vendor. “Chairman” means Chairman of CCLBC
CCLBC PURCHASING GUIDELINES
Required Action
Level of Approval Required
3 Documented Verbal Quotes
3 Written Quotes
Bid
Contract Execution
Approval by County Attorney
Approval by CCLBC Staff
Approval by Chairman
Approval by Board Commodities or Equipment
$1 - $500
X
X
$501 - $2,500
X
X
Chairman
$2,501 - $5,000
X
X
X
Chairman
$5,001 - $20,000
X
X
X
X
Chairman
Greater than $20,000
X
X
X Contracts for Public Work
$1 - $500
X
X
Chairman
$501 - $2,500
X
X
X
Chairman
$2,501 - $10,000
X
X
X
Chairman
$10,001 - $35,000
X
X
X
X
Chairman
Greater than $35,000
X
X
X Emergencies: Commodities or Equipment
Chairman
$1 - $10,000
X
X
Chairman
$5,001 - $35,000
X
X
X
Chairman
Greater than $35,000
X
X
X Emergencies: Contracts for Public Work
Chairman
$1 - $10,000
X
X
Chairman
$10,001 - $35,000
X
X
X
Chairman
Greater than $35,000
X
X
X Services (other than Professional)
$1 - $500
X
X
$501 - $2,500
X
X
Chairman
$2,501 - $5,000
X
X
X
Chairman
$5,001 - $10,000
X
X
X
X
Chairman
Greater than $10,000
X
X
X Professional Services
RFP Optional
Chairman
ALL
X
X
X EXCEPTIONS ** No Contract Needed Maintenance repairs & parts $1 - $5,000 Maintenance & service contracts $1 - $5,000
X
3.2 Purchases and Contracts for Public Work.
.1 The term “Purchase” applies to the procurement of commodities.
.2 The term “Contract for Public Work” encompasses contracts for services, labor or construction.
.3 When a contract involves acquisition of both goods and services, such as a commodity which requires installation, the contract should be viewed as a purchase for purposes of the competitive bidding monetary threshold, if the services are minor, incidental or customarily provided by the vendor as a component of the purchase.
.4 If the services are extensive, substantial or involve specialized skills, so that the acquisition of the commodity is incidental to the work, then the contract should be treated as a contract for public work, as set forth in Opinions of the State Comptroller No. 87-46.
3.3 Emergency Purchases.
.1 An emergency exists when a dangerous condition develops or when supplies are needed for immediate work which may vitally affect the safety, health or welfare of the public.
.2 Emergency purchasing may also occur after breakdown in machinery and/or a threatened termination of other necessary public services, including maintenance and repair of essential office equipment.
.3 CCLBC faced with an emergency purchase are to notify CCLBC Board as quickly as possible.
3.4 Professional Services.
.1 Normal competitive bid procedures cannot be utilized in securing professional services such as doctors, attorneys, engineers, certified public accountants, and other professional people who, in keeping with the standards of their discipline, will not enter into a competitive bidding process.
.2 A Request for Proposal (RFP) can be prepared much the same way as an Invitation to Bid.
.3 RFPs should be submitted to CCLBC Board for review and approval prior to
distribution. .4 When the RFP for professional services is approved, a limited number of qualified professionals, known to CCLBC, will be invited to submit a proposal, which sets forth their interest and qualifications, and explains how they can meet the CCLBC's needs. .5 In securing professional services, it is the primary goal of CCLBC to obtain the services of a professional who has a proven record of providing, in a professional way, those services which are required.
.6 A contract will be negotiated by the appropriate CCLBC with the professional deemed to best meet the CCLBC’s needs.
.7 An RFP for professional services is encouraged, but not required.
3.5 Split Purchases.
.1 In determining whether a purchase is an expenditure within the discretionary threshold amounts established by General Municipal Law Section 103, the officer, board or department shall consider the reasonably expected aggregate amount of all purchases of the same commodities, services or technology to be made within a twelve-month period commencing on the date of purchase.
.2 Purchases of commodities, services or technology shall not be artificially divided for purpose of satisfying the discretionary buying thresholds established by General Municipal Law Section 103.
.3 A change to, or renewal of, a discretionary purchase shall not be permitted if the change or renewal would bring the reasonably expected aggregate amount of all purchases of the same commodities, services or technology from the same provider within the twelve month period commencing on the date of the first purchase to an amount greater than the discretionary buying threshold amount. 2
3.6 Trade-In Allowances.
.1 A trade-in allowance is treated as an expenditure for purposes of the dollar threshold.
.2 The estimated gross cost of an item, without deduction for a trade-in allowance, determines whether the dollar threshold will be exceeded.
3.7 Sole Source Procurement.
.1 In the event there is only one vendor capable of providing a particular product or service, then the competitive bidding procedures outlined in this policy may be waived by CCLBC Board; this documentation should be forwarded with the Resolution Request form to CCLBC Attorney. .2 Whenever a CCLBC determines that they must purchase goods or services from a “sole source” vendor, the CCLBC should document why only one company or individual is capable of providing the goods or services required.
3.8 State Bid or Federal Bid.
.1 General Municipal Law Section 104 authorizes CCLBC to purchase materials, equipment and supplies through the state bid offered by the New York State Office of General Services or federal bid offered by the United States General Services Administration.
.2 A department may competitively bid an item and compare that bid with the state bid or
federal bid price. .3 The department must purchase from the vendor offering the lower of CCLBC bid price, state bid price or federal bid price, unless the cost of transportation or delivery, when added to the bid price, changes the lowest total cost; in that event, the issue should be discussed with CCLBC Administrator and the appropriate County Legislative Standing Committee.
.4 Purchases at the state bid price or federal bid price must be made from the vendor with the state contract or federal contract for that item; a department cannot negotiate with another vendor to offer to sell an item to CCLBC at the state bid price or federal bid price. .5 Purchases can be made from the state bid vendor or federal bid vendor only if the department has sufficient funds budgeted for the purchase; if there are insufficient funds in the account, a budget transfer must be made by legislative resolution. .6 Vendor-generated contracts, rather than County-generated contracts are used for state bid purchases or federal bid purchases; however, the vendor-generated contract must be approved by CCLBC Attorney prior to execution. .7 If the materials, equipment or supplies on state bid or federal bid do not meet the specifications of CCLBC for, including quality, fitness for the particular purpose, or acquisition cost, then the department is not obliged to purchase the materials, equipment of supplies through the state bid or federal bid process.
3.10 Preferred Sources.
.1 New York State Finance Law Section 162 grants selected providers preferred source status for purposes of procurement, provided that the commodities and services meet the form, function and utility required by CCLBC.
.2 Preferred status is granted to the following providers:
.1 Commodities produced by the Department of Correctional Services Correctional
Industries Program, as described in New York State Correction Law Section 184; .2 Commodities and services produced by any qualified charitable non-profit-making agency for the blind approved for such purposes by the New York State Commissioner of Social Services; .3 Commodities and services produced by any special employment programs serving mentally ill persons which shall not be required to be incorporated and which is operated by facilities within the New York State Office of Mental Health and is approved for such purposes by the New York State Commissioner of Mental Health; .4 Commodities and services produced by any qualified charitable non-profit-making agency for other severely disabled persons approved for such purposes by the New York State Commissioner of Education, or incorporated under the laws of the State of New York and approved for such purposes by the New York State Commissioner of Education; or .5 Commodities and services produced by a qualified veterans workshop providing job and employment-skills training to veterans where such workshop is operated by the United States Department of Veterans Affairs and is manufacturing products or performing services within New York State and where such workshop is approved for such purposes by the New York State Commissioner of Education. .3 Each department contemplating such a purchase or commodities or services should check with CCLBC Department of Public Works Procurement Specialist as to whether the commodities or services meet the form, function and utility required by the particular department.
3.11 Installment Purchase Contracts.
.1 General Municipal Law Section 109-b authorizes installment contracts for the purchase of equipment, machinery and apparatus.
.2 For the purpose of Section 109-b, agreements calling for periodic payments, whether the agreements are titled installment purchases, leases, lease-purchases or leases with option to purchase, constitute installment purchase contracts when all or part of the periodic payments are applied toward the purchase of the equipment.
.3 An agreement will generally constitute an installment purchase contract under Section
109-b if title will pass to CCLBC automatically or for a nominal consideration at the end of the term of the agreement, or if an option price is an amount less than the fair market value of the equipment at the time the option is exercised..4 The installment purchase contracts constitute purchase contracts for competitive bidding purposes and are subject to competitive bidding requirements if the total amount proposed to be paid over the term of the agreement exceeds the monetary threshold fixed in General Municipal Law Section 103 for purchases, which is currently $10,000.
3.12.1 Purchases Under Another County’s Bid Award Process.
.1 General Municipal Law Section 103(3) authorizes CCLBC to make purchases or a contract for services, other than services subject to Article 8 or 9 of the Labor Law, through another county’s bid award process. .2 Prior to making such purchase or contract, CCLBC department shall consider whether such contract will result in cost savings after all factors, including charges for service, material and delivery, have been considered. .3 No such purchase or contract for services shall be made unless such purchase may be made or the contract for such services may be entered into upon these same terms, conditions and specifications at a lower price through CCLBC. .4 In addition, CCLBC from whom the department is proposing to make the purchase or obtain the service had to include in that county’s bid process a provision whereby purchases may be made, or such services may be obtained, under such contract by any other political subdivision or fire company or district, in accordance with New York State County Law Section 408-a(2) 3.12.2 Purchases Under General Municipal Law Section 103(16) .1 General Municipal Law Section 103(16), enacted by Chapter 308 of the Laws of 2012 of the State of New York, which expires and shall be deemed repealed on August 1, 2017 unless extended, authorizes CCLBC to make purchases of apparatus, materials, equipment or supplies, or to contract for services related to the installation, maintenance or repair of apparatus, materials, equipment or supplies, through the use of a contract let by the United States or any agency thereof, any state or any other county or political subdivision or district therein, if such contract was let in a manner that constitutes competitive bidding consistent with New York Law and is made available for use by other governmental entities. .2 Prior to making any such purchase or contracts, CCLBC department involved shall consider whether such contract will result in cost savings after all factors, including charges for service, material and delivery have been considered. .3 Prior to making any such purchase or contract, CCLBC department involved, in consultation with CCLBC Attorney, shall determine that the original contract let by the United States or any of the other entities identified herein was let in a manner that constitutes competitive bidding consistent with General Municipal Law Section 103 and all other applicable laws of the State of New York and that such purchase or contract has been made available for use by other governmental entities. 3 3.13 Purchasing Responsibility In accordance with General Municipal Law Section 104-b(2) (f), the grid contained in section 3.1, supra, describes the required action and the level of approval required for purchases by CCLBC. 1 3.14 Exceptions
3.14.1 The following are exceptions from the terms “purchase” and “contract for public works” and are not subject to the contract execution provisions of this Purchasing Policy, nor
shall approval of CCLBC Attorney or County Administrator be required, as long as the cost for such expense is budgeted:
a.Maintenance repairs and parts up to $5,000.00
b.Maintenance and service contracts up to $5,000.00 4