HomeMy WebLinkAboutResolution 2016 (15) Resolution No. 15 (2016)
ST. R I X- RESOLUTION ADOPTING AMENDED PURCHASING POLICY
1 WHEREAS, the County Board approved the Purchasing Policy on January 5, 2016; and
2
3 WHEREAS, staff reviewed the adopted and recommends changes to said policy.
4
5 THEREFORE, be it resolved that the St. Croix County Board of Supervisors hereby
6 approves the attached amended Purchasing Policy
7
8 FURTHER, be it resolved that the attached Purchasing Policy is effective upon County
9 Board approval.
Legal—Fiscal—Administrative Approvals:
Legal Note:
Fiscal Impact: There is no direct financial impact to adoption of this policy.
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01/20/16 Administration Committee APPROVED AS AMENDED
......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ..........
RESULT: APPROVED AS AMENDED [UNANIMOUS]
MOVER: Jill Ann Berke, Supervisor
SECONDER: Judy Achterhof, Supervisor
AYES: Schachtner, Sjoberg, Berke, Kiesler, Achterhof
Vote Confirmation.
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St. Croix County Board of Supervisors Action:
Roll Call -Vote Requirement— Majority of Supervisors Present
RESULT: ADOPTED [UNANIMOUS]
MOVER: Travis Schachtner, Supervisor
SECONDER: Dave Ostness, Vice Chair
AYES: Schachtner, Ring, Babbitt, Novotny, Sjoberg, Koch, Nelson, Berke, Ostness,
Larson, Hansen, Kiesler, Brinkman, Peterson, Anderson, Achterhof, Leibfried,
Peavey
ABSENT: Chris Kilber
This Resolution was Adopted by the St. Croix County Board of Supervisors on February 2, 2016
Cindy Campbell, County Clerk
ST. C I
PRO
PURCHASING POLICY
EFFECTIVE 01-05-2016/RES 6(2016) REVIEW Administration Committee
REVISED 02-02-2016/RES ##(2016) APPROVAL County Board
CONTENTS
SECTION1: GENERAL..............................................................................................................3
SECTION 2: CONSIDERATIONS IN PURCHASING...........................................................7
SECTION 3: CERTAIN PURCHASES, SPECIAL PROVISIONS .......................... 9
SECTION 4: STANDARD PROCUREMENT PROCEDURES ............................... 12
SECTION 5: OTHER PURCHASING PROCESSES.............................................. 16
SECTION 6: MISCELLANEOUS PROVISIONS .................................................. 18
SECTION 1: GENERAL
PURPOSE
The purpose of this policy is to provide for a fair, accountable, and transparent public procurement system
in St. Croix County (the County)implemented in compliance with Federal Law, State Statute, and County
Board policy, maximizing efficiency with the use of public funds and establishing a consistent public
purchasing process that meets high standards of integrity.
SCOPE
This policy applies to all county departments and all organizations for which the County is the fiscal agency
and where not superseded by State or Federal law, rule or regulation or other funding agreements or
contractual provisions.
DEFINITIONS
For purposes of this policy, the following terms have the meanings given:
1. ACID Test is an acronym for a tool/tip that can be used to code invoices with appropriate
information. Departments may find it helpful to give each invoice the ACID test prior to
submitting to Finance. The acronym is defined as
• Account to charge to
• Category or description of item purchased
• Initials or who approves the payment
• Date the transaction was approved
2. Bid or RFB—Request for Bid, also referred to as a"sealed bid". An RFB is a formal
process with a broader selection of vendors and prices that is more restrictive than a
quote and has more of a connotation of an obligation to award to the lowest bidder. An
RFB is usually for requirements over$100,000,is competitive and the successful bidder
usually is the one with the lowest bid. It can be used for large or small items. These
items have narrowly defined specification limits and a much smaller range of options and
variances in quality and use. (i.e. Banking services that provide very specific
accommodations and activities to be performed over a defined period of time often fall
into this category.) It is recommended to use the term"lowest responsible bidder".
3. Business means a corporation, partnership, individual, sole proprietorship,joint
stock company,joint venture, or any other private legal entity.
4. Certificate of insurance means a document issued by an insurer providing evidence that an
insurance policy exists and including information such as insurer, insurance agency,insured,
types of insurance,policy numbers, effective dates,limits, certificate holder, cancellation
procedure, special provisions, e.g., additional insured, and the name of the representative
authorizing the policy.
S. Change order means a written method of modifying a contract (purchase order) after it
has been..... ik n ... y....... l puR;+asw OrEkw executed.
6. Contract is written evidence of an agreement between two parties (e.g. the County and a vendor) to
perform some act or service. A contract may cover a specific transaction or a series of
transactions. A contract is legally enforceable on both parties.
7. Cost is the sum of the dollar amounts of the product or item, plus all other dollar amounts that
are needed to actually get it in service; such as electrical needs, space considerations,
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licensing, staff time to obtain, set-up, on-going operational fees (such as monthly data plans),
etc.
8. Emergency is a circumstance, physical condition,practice, method, or operation which would,
unless immediate action is taken,present an imminent risk to public health, safety, or welfare
or which would interrupt or create a substantial risk of interruption of essential government
services.
9. Estimate is a general budgetary or planning figure used as a guide. This may vary over or
under from the actual cost and is used many times in building a budget and/or if it is desirable
to continue with the possibility of a purchase. Some services only lend themselves to
estimates due to many unknowns that make it difficult to establish a firm cost figure until
either the work is underway or further investigation can take place.
10. Invoice means a document that itemizes charges for materials or services furnished
upon which payment is due.
11. Lease means an agreement, whether oral or written, for transfer of possession of real
property, or both real and personal property, for a definite period of time.
12. Obsolete Property is any property owned by the County that is no longer of use to the
County.
13. Petty cash means a fund in the form of currency or coin that is advanced by an
organization unit from appropriated funds to an authorized employee.
14. Price is the dollar amount of a product or item itself without factoring in any other dollar
figures.
15. Procurement means the entire span of acquisition from determination of need through
final disposition, with purchasing one segment of this cycle.
16. Procurement cards are credit cards issued to purchasing agents to simplify the procurement
of smaller items.
17. Professional services are unique, technical and/or infrequent functions performed by an
independent contractor qualified by education, experience and/or technical ability to provide
services of a specific project nature and predominately intellectual in character.
18. Proposal or RFP —Request for Proposal is typically used for a more formal and broader
selection of prices and options and recommendations from a variety of vendors that has
flexibility for the selection that "fits"best into your operation. While generally used for
requirements of$25,000 or more, an RFP is often employed where the selection of a supplier
cannot be made solely on the basis of the lowest price. An RFP is used to procure the most
cost-effective solution based upon evaluation criteria identified in the RFP. It affords the
opportunity for creative solutions to aproblem, requirement, or objective. Analysis of
proposals allows them to be incorporated into the bigger picture "value" of the purchase with
other factors incorporated into the equation and decision making process. This allows the
Department Head to differentiate between price, cost, and value, (i.e. a lower priced vehicle
may appear to be the right choice until the cost, options available, and use of it is considered.
19. Public works projects are as defined in Wisconsin Statutes s-e, 59.29 as amended from
time to time.
20. Purchase order means a formal offer to buy.
21. Purchasing agent means that person entrusted by this policy to represent their department
and authorized to initiate purchasing transactions.
22. Quotation means a vendor reply to inquiry, giving terms and conditions of sale, or an offer to
sell.
23. Quote or RFQ —Request for Quote are usually informal in nature. They can be
verbal/informal or written/informal, are used for quick comparisons, and aid in faster
decision making. An RFQ is normally sent out when a request is received for goods and
services valued at less than $25,000. The process is kept simple so that the transaction can
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be completed quickly. Quotes are used for smaller items that have no or very little variance
in quality, function, or type, (i.e. an office task chair is quite consistent across all vendors.)
Obtain at least three (3) or more quotes to provide adequate competitive comparable
information whenever possible.
24. Responsible bidder means abusiness that has the capability in all respects to perform fully the
contract requirements, and the experience integrity, reliability, capacity, facilities, equipment,
and credit which will a good faith performance.
25. Responsive bidder means abusiness who has submitted abid,which conforms in all material
respects to the requirements, set forth in the invitation for bids.
26. Requestfor proposal means an invitation presented for vendors to submit a proposal on a
specific commodity or service.
27. Requestfor quotation means an invitation for vendors to submit a proposal when the
specifications of aproduct or service are already known and when price is the main or only
factor in selecting the successful bidder.
28. Surplus Property is any property in a County department that is no longer of use to that
department.
29. Transfer is the movement of County property from one County department to another.
30. Upgrade is a trade-in or advancement to a new model of an existing product or brand that
has already proven to fit into current operations and has value to continuing its use.
Current prices can be verified and double-checked for accuracy and comfort.
31. Value is the long-range life cycle total dollar cost of purchasing and using the product or
item, which includes the price of the product or item, the cost to get it in service, the
ongoing expense comparisons that contribute to the use in the operation over its life. For
example; comparing a set of plow blades that are double the price of a lower priced blade,
but last four times longer, resulting in lower lifetime expenses and lower down time
expenses (down time cost avoidance) in changing blades more frequently.
32. Vendor means a business with which the County has purchased or may purchase a good or
service.
33. W-9 form means a document issued by the United States Internal Revenue Service (IRS)
for certain tax purposes.
RESPONSIBILITIES
The following agencies have the responsibilities assigned them under this policy in addition to those
assigned under other policies, State and Federal laws and regulations.
ADMINI RATOR..
Except as otherwise provided in this policy, the purchasing policy must be implemented and administered
by the County Administrator or his/her designee. In so doing, the C`,o,;u;r�;,;tdy,,,_Administrator or designee
must:
• Oversee all bid specifications based on information furnished by the department for which
the purchase is to be made, ensuring that the bid specifications fully describe the goods or
services to be purchased and clearly differentiate the same from similar goods or services;
• Determine the form and required contents of all requests for proposal and requests for
quotation;
• Ensure compliance with all written policies, administrative practices and procedures as
adopted by the County Board;
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• Ensure the maintenance of the fixed asset inventory;
• Periodically review and recommend modifications and changes to purchasing policies,
administrative procedures and practices where necessary;
• Ensure departments have adequate funds available to undertake a requested purchase
and, if not, modify or cancel the purchase to ensure budget compliance;
• Review and, as needed, amend the quality and quantity of goods or services requested or
otherwise make substitutions;
• Ensure all bids are adequately publicized to inform local bidders; and
• Maintain oversight over department purchase requests as they relate to need, quality,
price, and conformity with County standardization practices.
DEPARTMENT HEAD
It is the responsibility of the cl.D.epartment h1 dead to:
• Ensure that there are funds budgeted to pay for purchases;
• Report to the County Administrator any purchasing deviations from line items budgeted;
• Document the receipt of all merchandise or services purchased;
• Prepare appropriate invoices for payment; and
Properly record purchases made under the proper line item account code.
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DEPARTMENTAL PURCHASING AGENT
It is the responsibility of the purchasing agent to:
• Ensure that all relevant Board policies, State and Federal laws are followed;
• Prepare all necessary documentation as required by this policy including requests for
proposal and requests for quotation;
• Conduct the purchasing process; and
• Preserve and transmit all required documentation to the d.Q.epartment h dead,, ,,,_nec.Le.s_sar.y.
ETHICAL STANDARDS/CONFLICT OF INTEREST:
County employees must meet the highest standards of integrity in public procurement and failure to do so
will be subject to disciplinary action. Accordingly:
• Some vendors provide gifts or gratuities for placing orders with them. County employees
shall not solicit or accept anything of value for the performance of any services or duties.
Any items received, such as gifts or gratuities, become the properly of County.
• Purchases by the County for the personal use of an employee or official are prohibited even if
reimbursement is made to the County for the cost of the purchase.
• County employees shall not, by act of commission or omission, in their capacities as
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employees of the County, exercise discretionary power in a manner inconsistent with the
duties of their positions or the rights of other or with the intent to obtain dishonest
advantages for themselves or for others. Specifically, if any staff member feels that there
may be a possible conflict of interest or an appearance of a conflict of interest in his/her role
regarding the purchase of any product or service, he/she 4A , 4-, hall,,,,bring it to the attention
of the Department Head/Corporation Counsel for review. If it is determined that a conflict of
interest exists, that person shall be removed from the decision making process regarding that
specific purchase.
• No employee may disclose confidential proprietary information from solicitations to other
vendors or use that information for personal gain.
• All procurement transactions shall be conducted in a manner that provides maximum open
and free competition, based on merit and objectivity, and free from any influences of
prejudices, personal bias, or conflicts of interest.
Any purchase made by an employee or county official that is contrary to these ethical provisions must in
no way obligate the County for payment. Any such purchase will be considered a personal liability of the
involved employee or official.
SECTION 2: CONSIDERATIONS IN PURCHASING
ENERGY CONSUMPTION
The County Board of Supervisors recognizes the importance of energy conservation in cost control and
in environmental protection. Accordingly, in purchasing capital equipment that has an energy use of
significance a department should work with the Facilities Department to request energy consumption
data from all vendors in any request for proposals and may consider potential energy costs in
determining the lowest bidder.
CONTRACTINGAUTHORITY
Only the County Board Chair, the llli„>l�wa C`o�.r��.r�i siorne� .�u�°suurnt to Wr tul. ,” 1 ➢15(2}(1.,} or the
County Administrator.ot.;, h ,s/h:ett d_esi..1n.g_gcan legally bind the County to any total lease valued or contract
valued at or above $25,000 unless State law requires the signature of the County Treasurer or the County
Clerk or any+other party.,. y 1
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PUBLIC WORKS PROJECTS
If the estimated cost of any public works is between $.?k,5,000 and $25,000, a Class 1 Notice is required
before a contract for the work is awarded or a contract is awarded with a person qualified as a
bidder/proposer under Wis. Stat. § 66.0901(2).
Pursuant to Wis. Stat. § 59.52(29), all public works, including any contract for the construction, repair,
remodeling or improvement of any public work, building, or furnishing of supplies or material of any kind
Page 7
where the estimated cost of such work will exceed $25,000 shall be let by contract to the lowest
responsible bidder.
A contract, the estimated cost of which exceeds $25,000, shall be let and entered into under Wis. Stat. §
66.0901, except that the Board may by a three-fourths vote of all the members entitled to a seat provide
that any class of public works or any part thereof may be done directly by the County without submitting
the same for bids. This subsection does not apply to highway contracts which the Highway
Commissioner is authorized by law to let or make.
The Highway Commissioner, pursuant to Wis. Stat. § 83.015, shall: purchase and sell county road
machinery as authorized in the budget; determine whether each piece of county aid construction shall be
let by contract or shall be done by day labor; enter into contracts in the name of the County, and make
necessary arrangements for the proper prosecution of the construction and maintenance of highways
provided for by the County Board.
Upon consulting with the Corporation Counsel's Office, a determination will be made with the
Department Head to obtain at least three (3) written bids or proposals for purchases OR conduct an RFB
or RFP depending upon the best interests of the County,;u;nl�ss � )_ecial circumstances warrat a otherwise.
The appropriate departmental purchasing agent will work with the Department throughout the purchasing
process and through vendor selection. For sole source purchases, the department must prepare the
necessary documentation on why the purchase should be considered sole source.
STEPS:
1. Unless noted elsewhere in this document, all public works products/services are to be
completed in consult with the Corporation Counsel.
2. Department determines the need for products or services.
3. Department and Corporation Counsel determine the best method for solicitation and will
work with the departmental purchasing agent to develop specifications and evaluation
criteria.
4. Solicitations shall follow Wisconsin Statutes.
5. The departmental purchasing agent works with the department to select the most
responsive, responsible vendor.
6. As necessary, the departmental purchasing agent will develop the resulting contract with
the department, Corporation Counsel, and the vendor.
7. Once Corporation Counsel has approved the contract as to form, the department will
route the contract to the appropriate County authority and vendor for signatures.
8. The departmental purchasing agent will then file a fully executed copy of the contract
with department and s nd a co..
the vendor.
9. Delivery of products and/or services by the vendor.
10. Acceptance of products or services by the department.
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11. Department processes invoice for payment with appropriate information (i.e. voucher).
12. Department Head forwards the approved invoice/voucher to the appropriate financial
personnel for processing.
13. Vendor is paid for services.
14. Procurement procedure is complete until the product is ready for disposal.
SECTION 3: CERTAIN PURCHASES, SPECIAL PROVISIONS
GRANT FUNDED PURCHASES
Unless specifically prohibited by the granting authority, grants must be administered through a written
contractual agreement between the County and the party providing the service. All purchases made with
grant funds must comply with the terms and conditions of the grant and this policy. If the grant
requirements conflict with this policy, the County Administrator may suspend those provisions of this
policy only for the specific grant and for the duration of that grant.The department head is responsible to
comply with purchases covered by grant funds.
Uniform Grant Guidance issued by the Federal Office of Management and Budget(OMB) outlined the
following procurement standards for all dollars applied to federal grant programs:
A. Micro Purchases (Items less than $3,000):
Procurement by micro-purchase is the acquisition of supplies or services, the aggregate dollar amount of
which does not exceed the micro-purchase threshold�s,�,,,,,`3,,00.0,,.(2; °J[;?,F §200.67 Micro-purchase). To the
extent practicable,the non-Federal entity must distribute micro-purchases equitably among qualified
suppliers.Micro-purchases may be awarded without soliciting competitive quotations if the non-Federal
entity considers the price to be reasonable.
B. Small Purchases (Items between $3,000 and$150,000):
Small purchase procedures are those relatively simple and informal procurement methods for securing
services, supplies, or other property that �.� 6,.,i :h.,;4 ld. os
b.c.L ��,rn,;,,,,`'.3',.009„erne $15(➢,,.00Q.. If small purchase procedures are used,price or rate quotations must be
obtained from.a i Iq nx%rnrmunxof two.....qualified sources, u;r.1 s s,�ecial cifvumstances
war:,ant othe:°wise.
C. Large Purchases (Items greater than $150,000):
Follow requirements under 1 (construction) or 2 (all other)below depending on applicability.
1. Sealed Bids for Construction Contracts:Note that a federally funded public works project shall follow
the lower dollar threshold requirements of Wisconsin Statutes §§ 66.0901 and 59.52(29) outlined in
the public works projects section above. Bids are publicly solicited and a firm fixed price contract
(lump sum or unit price)is awarded to the responsible bidder whose bid, conforming with all the
material terms and conditions of the invitation for bids,is the lowest in price.
In order for sealed bidding to be feasible,the following conditions should be present:
Page 9
(i) A complete, adequate, and realistic specification or purchase description is available;
(ii) 1 we ;;�h�c�w,,,,,or more responsible bidders.., unless special c; rc;unistames warrant
erwise. are willing and able to compete effectively for the business; and
.................................................
(iii) The procurement lends itself to a firm fixed price contract and the selection of the successful
bidder can be made principally on the basis of price.
If sealed bids are used, the following requirements apply:
(i) Bids must be solicited from an adequate number of known suppliers,providing them sufficient
response time prior to the date set for opening the bids, for state,local, and tribal governments, the
invitation for bids must be publically advertised;
(ii) The invitation for bids,which will include any specifications and pertinent attachments,must
define the items or services in order for the bidder to properly respond;
(iii) All bids will be opened at the time and place prescribed in the invitation for bids, and for local
and tribal governments, the bids must be opened publicly;
(iv) A firm fixed price contract award will be made in writing to the lowest responsive and
responsible bidder.Where specified in bidding documents, factors such as discounts,
transportation cost, and life cycle costs must be considered in determining which bid is lowest.
Payment discounts will only be used to determine the low bid when prior experience indicates that
such discounts are usually taken advantage of, and
(v) Any or all bids may be rejected if there is a sound documented reason.
2. Competitive Proposals for Other Contracts Greater than $150,000: The technique of competitive
proposals foz�,,,,othc z c,ontz,�c,;I 11 ,ate r th,�r�,,,,`�1 s0,(�,�l0..is normally conducted with more than one source
submitting an offer, and either a fixed price or cost-reimbursement type contract is awarded. It is
generally used when conditions are not appropriate for the use of sealed bids. If this method is used,
the following requirements apply:
(i) Requests for proposals must be publicized and identify all evaluation factors and their relative
importance. Any response to publicized requests for proposals must be considered to the
maximum extent practical;
(ii)Proposals must be solicited from an adequate number of qualified sources;
(iii) The non-Federal entity must have a written method for conducting technical evaluations of
the proposals received and for selecting recipients;
(iv) Contracts must be awarded to the responsible firm whose proposal is most advantageous to
the program,with price and other factors considered; and
(v) The non-Federal entity may use competitive proposal procedures for qualifications-based
procurement of architectural/engineering (A/E)professional services whereby competitors'
qualifications are evaluated and the most qualified competitor is selected, subject to negotiation of
fair and reasonable compensation. The method,where price is not used as a selection factor, can
Page 10
only be used in procurement of A/E professional services. It cannot be used to purchase other
types of services though A/E firms are a potential source to perform the proposed effort.
D. Noncompetitive Proposals:
Procurement by noncompetitive proposals is procurement through solicitation of a proposal from only
one source and may be used only when one or more of the following circumstances apply:
(1) The item is available only from a single source;
(2) The public exigency or emergency for the requirement will not permit a delay resulting from
competitive solicitation;
(3) The Federal awarding agency or pass-through entity expressly authorizes noncompetitive
proposals in response to a written request from the non-Federal entity; or
(4) After solicitation of a number of sources, competition is determined inadequate.
PROMOTIONAL ITEMS
Departments may purchase items of negligible value for educational or promotional purposes to be given
to members of the public only at events generally open to the public or educational sessions. Such items
must be clearly and permanently marked with the name of the County and the department or agency and
funding for these purposes specifically identified in the annual budget.
COMPUTER PURCHASES
In addition to the approval by the D"t r T+44strat%on 0 ' C�s„linty A,dn2inr�[z.a[Q. purchase
or lease of computer hardware and software must be managed and authorized for procurement by the
Department of Information Technology. For purposes of this section, computer hardware also includes
copiers. The Director of Information Technology will manage and procure all requisitions for computer
hardware and software.
Technological compatibility must be a consideration in awarding any contracts for computer hardware
and software.
PURCHASES OF LEGAL SERVICES
No purchasing agent may approve the purchase of legal services without the prior approval of a0ae-,
�&C`o oration ...... ;�`,orporation .(.'.ounsel may establish aprocedure for granting such
. � `ounse . ::I”ate........
approval.
END OF YEAR PURCHASES
Unless provided by other policy, State and Federal law, grant or other funding contract, all expenditures
for capital assets must be made so that delivery of that asset occurs on or before December 31 in the year
in which the purchase was authorized unless authorized by the County l�,.dministrator or his/her
Page 11
designee.
HIGHWAY DEPARTMENT CONTRACTS
Pursuant to Wisconsin Statutes , 83.035 as in effect at any given time,the highway commissioner,
with the approval of the County Transportation Committee, is authorized to execute contracts for the
purpose of enabling the County to construct and maintain streets and highways in cities,villages and
towns within the County,with a copy filed with each respective clerk. Maintenance includes the
furnishing of any road supplies and equipment to these municipalities. The highway department may not
undertake construction or maintenance for such municipalities in excess of the County aid authorized by
the County Board.
All contracts executed with any municipality for such roadwork must provide that payment in full must be
made to the County within 120 days of the completion of such roadwork. If a municipality fails to make
payment in full within this time, the highway department may not undertake any further work of any type
or furnish any road supplies or equipment for or to this municipality without the prior approval of the
Highway Commissioner. Further, if a municipality fails to make payment in full within this time, any
unpaid balance outstanding bears interest at the rate of 5% per annum until paid. Highway contracts
entered into under the authority of this policy must follow the standard contract approval and route and
process as established by County policies and procedures as well as conformity with State law.
INDEFINITE QUANTITY CONTRACTS
Notwithstanding any other provision of this policy, and as permissible under state and federal law, rules
and regulations, the highway commissioner may enter into a contract to procure materials for
construction, maintenance and repair of highways valid for a period not to exceed two years. For
purposes of this section, an indefinite quantity contract means an agreement to procure these materials at
a set rate per amount, with the total amount to be purchased estimated only. These contracts must
competitively bid following the standard procurement procedure appropriate for the estimated dollar
cost of materials to be purchased during that year.
PROHIBITED EXPENDITURES
Unless specifically authorized by the County Board of Supervisors, the following expenditures may not be
made using County funds:
• Entertainment expenditures such as tickets for admission to public entertainment events, theaters,
and similar;
• Alcoholic beverages and tobacco, except in conjunction with a compliance investigation;
• Retirement parties or similar events including awards and gifts unless the retiring employee has
had at least 10 years of service to the County, the party or event is open to County Board and/or
general staff, and the total cost for cake, beverages, etc. does not exceed $200;
• Charitable contributions made by County employees;
• Common courtesy expenditures such as flowers or cards for ill county employees or local officials;
and
• Any travel or related expense for employee's spouse, other family members or for any
acquaintances.
Page 12
SECTION 4: STANDARD PROCUREMENT PROCEDURE
DETERMINATION OF NEED
A department head, or his/her designee, must initiate the procurement process through a determination
of need, that the operation of that department requires the purchase of goods or services from an external
vendor. If funds for that purpose have been appropriated in the annual budget, the department head or
his/her designee may initiate this process by transmitting a request to the purchasing agent for that
department or division. If funds for that purpose have not been appropriated, the procurement process
may not be initiated until such time as funds are appropriated.
PROCEDURES FOR COMPETITIVE BIDS
Departments must use a bidding process in purchasing unless otherwise provided in this policy and even
if not required are encouraged to do so.Awards must be made to the lowest responsible bidder. In
determining the lowest bidder, the purchasing agent may consider cost of operation over the life of the
item. When comparing bids or quotes,the following elements must be considered: price, conformity with
original specifications,warranty, delivery date (if specified), and freight charges. Upon reviewing the bid
results, the purchasing agent may elect to solicit additional bids. The I.
d.g.partment conduc tin the i.)urchase will be the agent of record on the purchase it is their
responsibility to see that the requirement for competitive bidding has been met.
PURCHASES IN PROCESS
Except as permitted by the sole source purchase provisions of this policy, all purchasing agents must
follow the procedures listed below based on the amount of the purchase. No purchase of a single good or
commodity at the same general time may be divided into separate purchases to qualify for alower
threshold of approval, process or documentation.
ORDERS LESS THAN $3,000
L If a purchasing agent determines the expected cost of the purchase is less than $3,000 and the
goods or services are not offered on standard contracts, the purchasing agent may place the order
directly with the vendor using his or her best judgment as the basis for vendor selection.
2 Once the order is accepted by the vendor and the delivery of goods and services takes place the
purchasing agent completes a direct payment voucher or a purchase order payment voucher if a
purchase order has been issued attaching the appropriate invoice unless this purchase qualifies for
completion using a procurement card.
3. The purchasing agent must forward the approved direct payment voucher to the �ua
a i t atr��n ]�?i n a n�;� Il D. „��aI tn�,g n.,,,,,_for processing except in the case of purchases made
through aprocurement card.
4. The r �n 11 ,,rn am c w ll D e .�aL t�must, on submission of the appropriate
documentation, pay the vendor of these goods or services.
Page 13
|
| ORDERS GREATER THAN(3R T(J$3`OOO AND LESS TlfAN5J5O`OOO
1. The purchasing agent must obtain at least two informal bid
| io�no�n00000mdlvin
/ �
writing or obtained through a full request for proposal process. Tb000 bids may include current
price lists or catalogs, recent price quotations on file (within 30 days),phone or verbal quotations
solicited from vendors and written informal price bids (including Coxoo).
2 Once the department 0000roo the lowest informal bid the purchase/order may be placed with the
successful bidder. After the delivery of goods or services takes place the department oonnplotoo o
voucher for payment attaching the invoice, purchase order, and documentation of the informal
bids.
3. The oorobooing agent must forward the approved direct payment voucher to the
for processing.
| 4. Tbo oot, on submission of the
appropriate documentation, pay the vendor of these goods or services
ORDERS GREATER THAN OFl EQUAL TO $|5O`OOO - COMPETITIVE PROPOSALS
&' The purchasing agent must forward opooiGoodono and requirements and bid documentation to the
| LyAcLnunistiatoi forapproval, inoluding joodGoodon
for specification ofo specific brand or model that may limit competition.
2 The Gnonoo nnonogor or his/her designee nnoot review the designation and approve the process,
including specification ofo specific brand ormodel.
3. On approval, the purchasing agent must issue a request for proposals, allowing two weeks for a
response onl000 another time period is authorized bythe Gnonoo nnonogor and obtain three Doonol
|
written bids orprop000lo .
4. If vendors submit bids for a product or service different from that specified, a determination must
be made if the alternate item is an equal substitution. The vendor must provide sufficient product
information for the user to ovoloo10 the alternate honn. If not awarding to the low bidder,
joodGoodon for not accepting the low bid must bodocumented.
5. The purchasing agent must document o1 least three formal written bids or proposals, u. n e s s
| biob may include faxed and onnoilod bids or proposals.
The prices quoted must represent all costs including delivery and, if applicable, estimated energy
000go over the life the oqoipnnonL
6 The department must execute a purchase order to the successful bidder. All purchasing documents
|
are tobo reviewed bydho o ensure proper
procedure was followed upon approval.
7. Following delivery of goods and services by the vendor and acceptance of goods or services by the
designated department, the department must complete on electronic receipt of the goods and
services.
8 On receipt of the invoice and completion of the electronic receipt, the
| must pay the vendor of these oorvi000 or goods.
Page 14
|
| ORDERS GREATER THAN 0R EQUAL TO O..- SEALED
BIDS
l. A department head must request authorization from the
| proceed with the odvodioonnont of bids, furnishing complete and
detailed specifications on the item to be purchased including any specification of a particular
brand or model that may limit competition.
2. /\ dopurtmonthoud must dovo|opuv/dttonroquoat for proposals and submit tothe
| for
publication.
3. The Gnonoo manager orhis/her designee moot review the designation and approve the process,
including opooiGoodon of opooiGo brand or model.
4. Onooiborizod on, ibo
| must publicly odvordoo the bid on the County vroboho.
5. All bids rocoivod must hoaou]od and rocoivod prior to the dotorminod duUoofoponing.
6. All bids rcccivcd must bc publicly opcncd,with the dcpartmcnt hcad and/or purchasing agcnt
and uncproaontudvo of the
| roaont
7. If vendors submit bids for a product or service different from that specified, a determination must
be nnodo if the alternate honn is on equal substitution. The vendor must provide sufficient product
information for the user to ovoloo10 the alternate honn. If not awarding to the low bidder,
joodGoodon for not accepting the low bid must bodocumented.
8. Decision on bid award io the responsibility of the purchasing agent.No award of any formal sealed
bid results may bo made without prior approval of the finance manager.
SOLE SOURCE PURCHASES
ltiothe expectation of the County Board of Supervisors that all purchases will bo made under full and open
competition except oo provided in this section. Justification for other than full and open competition may
be:
ONLY ONE RESPONSIBLE SOURCE:The supplies or services required bvdhodoponmontor
agency are available from only one responsible source and no other type of supplies or services
will satisfy agency requirements. ln the determination of only one responsible source,
documentation nnoot oho specific reasons for such exemption, such as compatibility with existing
equipment,professional services that involve specific knowledge or familiarity with County
oodvhioo not otherwise available, or that only one supplier exists to provide particular goods or
services.
F[}N[]lN(}8PBClFlCATl()N: The source ofdho funding,o.g.granting agency specifies osingle
000roo for goods or services. Documentation requesting sole source purchases must include o
copy ofthose provisions specifying this source.
UNUSUAL AND C()MPB|L|LlN(}URGE NCY: The department or agency's need for the supplies or
oond000 is of such on on0000l and compelling urgency that the County would be ood000lv injured
onl000 the agency is pooniUod to limit the number of sources from which it solicits bids or
proposals. Solicitation from oo many potential 000r000 ooiopracticable under the oiroomoton000 is
required. This urgency may also extend to delays in procurement through other vendors that
would be on0000ptoblo to the County. This authority will not bo approved ifhio determined that
Page 15
the urgency is due to a lack of advance planning by the department or agency.
Documentation for an emergency purchase must also include an explanation of the emergency, the
financial or operational damage or risk of damage that will or may occur if needs are not satisfied
immediately, why the needs were not or could not be anticipated so that goods or services could not
have been purchased following standard procedures.
In all justifications made under this section,the requesting purchasing agent must list the reason and
process used for selecting the vendor and documentation supporting the cost in the absence of
directly comparable market data.
INVOICES
An invoice must be itemized and provided to the Finance Department before any payment may be
authorized. An invoice must contain:
• Purchase order number, if used;
• Itemized list of merchandise shipped;
• Prices, terms, date, quantities and all other pertinent information about the purchase; and
• All charges for delivery, freight listed separately from the merchandise.
Payments requests sent to the a r -�nt..... 44fl4�trat%on II nanc c ll.De gaarn em must be accompanied
by the original invoice, including any supporting documentation. An email or fax copy of the invoice will
also suffice provided that an original invoice number is provided.No payment may be made on pro forma
Invoices. All invoices must be made out to the County with the goods and services shipped to the County.
CHANGE ORDER
A written change order may be issued only by the department head with the approval of the
f
rofirrnal ..;,irnato,�°y to tl�cw c;ornk�°ac;t o�°leis/l�cw�° arc i>rncwcw. Changes made by others in the purchasing
process once an initial purchase order has been approved are considered invalid and their issuance
subject to disciplinary action.
PREPAYMENTS
No goods or services may be purchased using prepayments (excluding employee travel expenses), or
payment before receipt, without the written authorization of the i n n c �,,,,,,,,,,.
D.D it c c t o t° or his/her designee.
SECTION 5: OTHER PURCHASING PROCESSES
STATE CONTRACT
If so determined by the department head, the purchasing agent may use existing contracts bid by the
State of Wisconsin and bypass the competitive bidding process outlined in this policy for purchases of less
than 515,000.Purchases greater than 515,000 require prior approval by the County aA.dministrator. For
purposes of this policy, any purchase made from the State of Wisconsin cooperative purchase contract
Page 16
constitutes compliance with any competitive bidding requirements. Further, the State contract amount
may be used as price comparisons for the purpose of the competitive bidding requirements for identical
items
COOPERATIVE PURCHASING
Departments may participate with a network of other governmental agencies for cooperative purchasing
up to $15,000 which will meet the competitive bidding requirements. An example of this is the fuel
contract.
STANDARD CONTRACTS
Notwithstanding other provisions of this policy, if the lm-n w d r--j.'Ji]qj.'.�cc I i. cdo;;,,,,has
standardized the purchasing of a good or service and has issued standard purchase orders or
contracts for these goods or services, such goods or services must be purchased from ese tl:: ..
�(� tJt.j J;,,,vendors.
PURCHASES FROM COUNTY EMPLOYEES AND OFFICIALS
Provided all other provisions of this policy requirement are met, any single public official or eCounty
employee may enter into contract with or sell to the County in which they have a private interest in,.
,Frovided E`u°they tbat the contact o sale does not exceed an aggregated amount of$15,000
per year (see Wisconsin Statutes „ 946.13). In addition, all such purchases must be made with full
disclosure, meaning discussion at a meeting of the Administration Committee prior to the purchase.
PROCUREMENT CARDS
Procurement cards must be issued by the a: .p.f4+ntff�- &tt-ef- e
ug -t btefl i pi ng III"Hake.,] c1o1;. Each card must have a dollar limit set by
the n .nge Directol no purchase in excess of this limit may be made without the
authorization of the na..nceQJi.-. ctoi.. Other than as specified, use of aprocurement
card does not negate any other requirements of this policy.
SALES TAX E XE MPTION
As the County is exempt from Wisconsin State sales tax; employees must provide sales tax exemption
information to any hotels, car rental company and similar when traveling on County business.
Page 17
SECTION 6: MISCELLANEOUS PROVISIONS
DISPOSAL OF EXCESS SUPPLIES OR OBSOLETE EQUIPMENT
Supplies or equipment no longer serving a useful purpose must be reported to the Facilities Director.
For items of other than negligible value,the Facilities Director must dispose of the supplies or
equipment by transferring the material to a department which may need similar supplies or
equipment, by competitive sealed bidding, by public auction, or in such a manner considered to be in
the best interest of the County. County;::::owned supplies or equipment must not be sold to County
employees except by public auction or through public, competitive bidding.
CERTIFICATE OF INSURANCE
A certificate of insurance is required by the County when contracts with a vendor for materials,
equipment, construction, remodeling, supplies, or services, that vendor's activities and the goods
provided create an inherent liability risk to the County. The contractor must add "County of St.
Croix, its officers, employees, and agents" as an additional insured under the commercial general,
automobile and contractor's pollution liability and workers' compensation policies.
Certificates are required for contracted service vendors and require receipt of the certificate and
continued renewal of the certificate while the contract exists.
W-9 FORM
Vendors doing business with the County must provide a signed form W-9 to the
1 u��wwI;`,;��� �� 1) p, �t� � �;;��,,,,,before payment will be authorized.
LAW ENFORCEMENT/EMERGENCY EVENT MEAL PURCHASES
Notwithstanding any policy to the contrary, the sheriff or his/her designee may authorize the
purchase of meals for law enforcement employees or volunteers at an accident or crime scene,
natural disaster, search and rescue operation or a cooperative event with another law enforcement
department where the required time commitment spans a traditional meal time and it is impractical
to leave the scene. The maximum amount per meal may not exceed the maximum amount stated in
the relevant travel policy.
COUNTY PURCHASES FOR PERSONAL USE
A purchase for personal, non-County use is strictly prohibited by the County. County employees
shall not use their position with the County to secure discounts or free products for their own
personal purchases or to defray paying sales tax. This does not limit the ability of employees to
receive discounts normally available to all County employees.
Page 18
OFFICES HEADED BY ELECTED OFFICIALS
While elected officials are responsible to the voters and not technically under County supervision,
it is in the best interest of the County that purchasing procedures within the County are
standardized as much as possible. These procedures are for the elected officials to use, as well as,
to assist them with the budget they are responsible for and satisfy the various requirements and
regulations of the County.
DE MINIMIS FRINGE BENEFITS/GIFT CARDS
In general, a de minimis benefit is one for which, considering its value and the frequency with
which it is provided, is so small as to make accounting for it unreasonable or impractical. The IRS
has determined that cash, gift certificates, gift cards, etc. are not excludable from income as a de
minimis benefit thus, gift cards provided to employees as incentives or awards are taxable income
to the recipient.
Page 19