EXCEPTIONS TO COMPETITVE BIDDING Competitive Bidding Requirements General

EXCEPTIONS TO COMPETITVE BIDDING

Competitive Bidding Requirements: General Municipal Law § 103 n n n Except as expressly provided by the State Legislature or by pre-Sept 1953 local laws, applies to: All political subdivisions Contracts for public work in excess of $20, 000 Purchase contracts in excess of $10, 000 Requires awards “… to the lowest responsible bidder after advertisement for sealed bids…”

Purposes of Competitive Bidding n n n Guard against favoritism, improvidence, fraud and corruption; and Foster honest competition in order to obtain the best goods and services at the lowest possible price Ensure the prudent and economical use of public monies for the benefit of the taxpayers and facilitate the acquisition of goods and services of maximum quality at the lowest possible cost

Is Bidding Required? Purchase contracts in excess of $10, 000 n Contracts for public work in excess of $20, 000 n

General Rules: Cannot artificially split or divide contract, or enter into series of transactions, in avoidance of competitive bidding threshold n Consider aggregate amount reasonably expected to be spent over the fiscal year for the same or similar commodities throughout the local government n

General Rules: Bid requirements apply to direct and indirect expenditures (e. g. , trade-in allowance) n Source of money to be spent does not alter requirements for bidding n

Exceptions n n n Certain State contracts for materials, supplies, equipment, services, through OGS – GML § 104 Certain county contracts for materials, equipment, supplies, services (other than services governed by articles 8, 9 of the Labor Law) – GML § 103(3), County Law § 408 -a Must consider whether county contract will result in cost savings

State and County Contracts Exception applies to any county extended to political subdivisions located within a county n Same terms/conditions; subject to rules and regulations of State/county; only vendor under State/county contract n No similar exception for federal GSA contracts or contracts of other local governments except counties, but can enter into intermunicipal cooperative purchasing agreements n

Sole Source Procurement Very limited exception n Available from one source only n Product/service uniquely required in public interest n No substantial equivalent n

Emergency Unforeseen occurrence or condition n Affects public buildings/property or life, health or safety n Immediate action needed – cannot await competitive bidding n

Second-Hand Equipment Surplus/second-hand supplies, materials or equipment n Federal or state government, political subdivision or public benefit corporation n No exception for purchases from private source n

Professional Services In general, specialized skills, training, expertise n Professional judgment or discretion n High degree of creativity n

True Leases and Licenses Must not be, in substance, a purchase or public work n Look to “total character” of the arrangement n Exception for leases of personal property not applicable to school districts n

Food and Milk Purchases GML § 103(9), (10) n Eggs, livestock, fish, dairy products, juice, grains, fresh fruits and vegetables n Purchased directly from NYS producers, growers, or certain associations of producers, growers and licensed milk producers n Cap of amount that may be expended annually n SED regulations n

Other Exceptions Goods, supplies and services by municipal hospitals and nutrition programs under joint contracts or arrangements pursuant to PHL § 2803 -a n Work performed by municipal employees, including pursuant to cooperation agreements n

Preferred Sources State Finance Law § 162 CORCRAFT n Agencies for the blind n Programs serving mentally ill n Agencies for severely disabled n Veterans’ workshops n

Procurement Policies and Procedures GML § 104 -b n Written internal policies and procedures n Applies to all procurements not subject to competitive bidding n

Procurement Policies and Procedures Determine if bidding applies/document action n Alternative proposals/quotes – how obtained n When to use each method n Documentation n

Procurement Policies and Procedures n If contract awarded to other than low offerer: Justification n Documentation n n When/what types of procurements do not require alternative quotes/proposals

Requests for Proposals n Generally—a competitive procurement with an award based on price and other criteria; may include negotiations n NOT an alternative to competitive bidding, except when expressly authorized by the State Legislature

RFPs (continued) May be used if procurement is within exception to CB and permitted under muny’s procurement policies n Most commonly used for professional services, true leases and licenses/concessions n

RFPs (continued) n Procedures include: Establishment of evaluation criteria (e. g. price; experience; creditworthiness; approach to performance; staff availability; ability to perform; time estimates. May include point system with weighting or ranking of criteria) n Comprehensive, fair solicitation process n Fair and equitable negotiation process n Fair review/ evaluation or rating process n