Procurement and Expenditure Guidelines

The City of Bondurant has a detailed procurement policy. The purpose of the procurement policy is to ensure that sound business judgement is utilized in all procurement transactions and that supplies, equipment, construction and services are obtained efficiently and economically and in compliance with applicable federal and state law and executive orders and to ensure that all procurement transactions will be conducted in a manner that provides full and open competition. The procedures contained in the procurement policy ensure that all solicitations incorporate clear and accurate descriptions of the technical requirements for the goods or services being procured. Chapter 26 and Section 331.341 of the Iowa Code will be followed on all applicable purchases. All other appropriate sections of the Iowa Code shall also apply. Additionally, the purpose of the procurement policy is to ensure that the City of Bondurant complies with Code of Federal Regulations, 2 CPR, Section 200.113 that requires reporting of violations of federal criminal law involving fraud, bribery, or gratuity potentially affecting a federal grant. Finally, the policy is intended to ensure the efficient, fair, and professional administration of federal grant funds in compliance with 2 CFR; Part 200.112; 24 CRR, and other applicable federal and state standards, regulations, and laws. City staff will review the policy on a regular basis to ensure it continues to meet the needs of the City and complies with all applicable laws and regulations and embraces innovation in procurement practices.

City of Bondurant

PURPOSE

The purpose of this procurement policy is to ensure that sound business judgement is utilized in all procurement transactions and that supplies, equipment, construction and services are obtained efficiently and economically and in compliance with applicable federal and state law and executive orders and to ensure that all procurement transactions will be conducted in a manner that provides full and open competition. These procedures will ensure that all solicitations incorporate clear and accurate descriptions of the technical requirements for the goods or services being procured.  Chapter 26 and Section 331.341 of the Iowa Code will be followed on all applicable purchases. All other appropriate sections of the Iowa Code shall also apply. Additionally, the purpose of this policy is to ensure that the City of Bondurant complies with Code of Federal Regulations, 2 CPR, Section 200.113 that requires reporting of violations of federal criminal law involving fraud, bribery, or gratuity potentially affecting a federal grant. Finally, this policy is intended to ensure the efficient, fair, and professional administration of federal grant funds in compliance with 2 CFR; Part 200.112; 24 CRR, and other applicable federal and state standards, regulations, and laws.

APPLICATION

This policy applies to the procurement of all supplies, equipment, and construction and services of and for City of Bondurant that include any federal program funding. In regards to any such federal programs, all procurement will be done in accordance with 2 CFR; Part 200. Chapter 26 and Section 331.341 of the Iowa Code will be followed on all applicable purchases. All other appropriate sections of the Iowa Code shall also apply. When federal requirements conflict with local or state requirements, the federal requirement, or most restrictive requirement will be followed.

POLICY

REPORTING

The City of Bondurant departments and/or employees are required to disclose, in writing and in a timely manner, all violations of federal criminal law involving fraud, bribery, or gratuity potentially affecting a federal award. This requirement applies to violations involving the City of Bondurant, its employees, and any sub-recipients of a federal grant.

If a City of Bondurant department or employee learns of a violation of federal criminal law involving fraud, bribery, or gratuity potentially affecting a federal grant, the department or employee must report the violation to the City of Bondurant Auditor (designated City of Bondurant contact). Reportable violations include not only those violations concerning City of Bondurant or its employees, but also include violations relating to sub-recipients of award monies.

The City of Bondurant Auditor is responsible for reporting the violation to the relevant federal agency in writing and in a timely manner.

CONFLICT OF INTEREST

This Code of Conduct applies to all officers, employees, or agents of City of Bondurant engaged in the award or administration of contracts supported by federal grant funds.

No officer, employee, or agent of the City of Bondurant shall participate in the selection, award, or administration of a contract supported by federal grant funds, if a conflict of interest, real or apparent, would be involved. Such a conflict would arise when any of the following has a financial or other interest in the firm selected for award.

• The employee, officer, or agent;
• Any member of his/her immediate family;
• His/her partner; or
• An organization which employs, or is about to employ any of the above.

The City of Bondurant officers, employees, or agents shall neither solicit nor accept gratuities, favors, or anything of monetary value from contractors, potential contractors, or subcontractors.

To the extent permitted by federal, state, or local laws or regulations, violation of these standards may cause penalties, sanctions, or other disciplinary actions to be taken against City of Bondurant's officers, employees, or agents.

METHODS OF PROCUREMENT

Procurement under grants shall be made by one of the following methods, as described herein: (a) small purchase procedures; (b) sealed bids (formal advertising); (c) competitive proposals; (d) noncompetitive proposals.

Micro-Purchase Procedures 200.320(a)

• The acquisition of supplies or serves, the aggregate dollar amount of which does not exceed the micro-purchase threshold - $15,000 (200.67)
• To the extent practicable, must distribute micro-purchases equitably among qualified suppliers
• May be awarded without soliciting competitive quotations if the non-Federal entity considers the price to be reasonable

Small Purchase Procedures 200.320(b)

• Are those relatively simple and informal procurement methods for securing services, supplies, or other property that does not cost more than the simplified acquisition threshold - $250,000 (200.88)
• Price or rate quotations are to be obtained from an “adequate number” of qualified sources

Sealed Bidding (formal advertising) 200.320(c)

• Lowest priced, responsive, responsible, bidder WINS
• The preferred method for construction when sealed bidding is “feasible”, which is when certain conditions are present
• Bids must be solicited from an “adequate number of known suppliers”, providing them sufficient response time before date for the opening of bids
• Bids will be opened at the time and place prescribed in the invitation for bids
• Must publicly advertise the invitation for bids
• Bids must be opened publicly
• Other procedural requirements at 200.320(c)(2)

Competitive Proposals 200.320(d)

• Used when conditions are not appropriate for the use of sealed bids
• The appropriate method when more than one source is expected to submit an offer and either a fixed-price or cost-reimbursement type contract is awarded
• Awards will be made to the responsible firm whose proposal is most advantageous to the program, with price and other factors considered
• Requests for proposals must be publicized and identify all evaluation factors and their relative importance
• Proposals must be solicited from an adequate number of qualified sources
• Must have written method for conducting technical evaluations of the proposals received and for selection of the contract

Noncompetitive Proposals 200.320(f)

• Procurement through solicitation of a proposal from only one source and may be used only when one or more of the following circumstances apply:
  • One Source:  the item is available only from a single source
  • Exigency/Emergency:  an exigency or emergency will not permit a delay resulting from competitive solicitation
  • Awarding Agency Approval:  the Federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the non-Federal entity
  • Inadequate Competition:  after the solicitation of a number of sources, competition is determined inadequate

CONTRACTING WITH SMALL AND MINORITY BUSINESSES, WOMEN’S BUSINESS ENTERPRISES, AND LABOR SURPLUS AREA FIRMS (200.321)

• Assuring that small and minority businesses, and women’s business enterprises are solicited whenever they are potential sources
• Placing qualified small and minority businesses and women’s business enterprises on solicitation lists
• Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women’s business enterprises
• Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women’s business enterprises
• 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
• Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in paragraphs (a) through (e).

CONTRACT PRICING (200.323)

• The cost plus a percentage of cost and percentage of construction cost method of contracting shall not be used
• City of Bondurant shall perform some form of cost/price analysis for every procurement action, including contract modifications, amendments, or change orders.  City of Bondurant shall make an independent estimate prior to receiving a bid or proposal
• City of Bondurant shall negotiate profit as a separate element of the price for each contract in which there is no price competition and in all cases where cost analysis is performed.  In determining a fair and reasonable profit, City of Bondurant must consider the complexity of the work to be performed, the risk borne by the contractor, the contractor’s investment, the amount of subcontracting, the quality of its record of past performance and the industry profit rates in the surrounding geographical area

PROCUREMENT RECORDS

City of Bondurant shall maintain records sufficient to detail the significant history of a procurement, including the rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. (200.324)

City of Bondurant must make available, upon request of the Federal awarding agency or pass-through entity, technical specifications on proposed procurements where the Federal awarding agency or pass-through entity believes such review is needed to ensure that the item or service specified is the one being proposed for acquisition

City of Bondurant must make available upon request, for the Federal awarding agency or pass-through entity preprocurement review, procurement documents, such as requests for proposals or invitations for bids, or independent cost estimates, when:

• City of Bondurant’s procurement procedures or operation fails to comply with the procurement standards in this Part;
• The procurement is expected to exceed the Simplified Acquisition Threshold and is to be awarded without competition or only one bid or offer is received in response to a solicitation;
• The procurement, which is expected to exceed the Simplified Acquisition Threshold, specifies a "brand name" product;
• The proposed contract is more than the Simplified Acquisition Threshold and is to be awarded to other than the apparent low bidder under a sealed bid procurement; or
• A proposed contract modification changes the scope of a contract or increases the contract amount by more than the Simplified Acquisition Threshold; OR
• City of Bondurant is exempt from the pre-procurement review in paragraph (b) of this section if the Federal awarding agency or pass-through entity determines that its procurement systems comply with the standards of this Part.

City of Bondurant may request that its procurement system be reviewed by the Federal awarding agency or pass-through entity to determine whether its system meets these standards in order for its system to be certified. Generally, these reviews must occur where there is continuous high-dollar funding, and third party contracts are awarded on a regular basis;

City of Bondurant may self-certify its procurement system. Such self-certification must not limit the Federal awarding agency's right to survey the system. Under a self-certification procedure, the Federal awarding agency may rely on written assurances from City of Bondurant that it is complying with these standards. City of Bondurant must cite specific policies, procedures, regulations, or standards as being in compliance with these requirements and have its system available for review.

AWARDED CONTRACTS

• City of Bondurant will not award a contract to a party listed as debarred, suspended, or otherwise excluded in the System for Award Management (SAM). www.sam.gov (200.213)
• Contracts awarded shall contain the applicable contract provisions described in 2 CFR 200.326 and Appendix II to Part 200.
• City of Bondurant will maintain written standards of conduct covering conflicts of interest and must provide for disciplinary action to be applied for violations of such standards as defined in 2 CFR 200.318 (c) (1).

MICROPURCHASING POLICY

General Practices

Whenever possible, purchases shall be requested to allow for ample time for processing and delivering the order.

Supplies shall be of a quality to suit the intended purpose at the least expense.

Supplies  shall  be  purchased  in  sufficient  quantities  that  will  meet  the normal requirements of the City for a reasonable time.

Every effort shall be made to purchase supplies and services from vendors who have businesses within the City of Bondurant/metro area.  Exceptions to this policy may include:

• When supplies or services are not available from local vendors or prices of local vendors exceed prices of vendors located outside the corporate limits.
• When supplies or services are available locally but have to be ordered or scheduled, requiring inordinate delay in the department’s work, project or activity.
• In emergency situations when local businesses are closed or personnel are outside of the City.

Department Head and Authorized Individuals

The department head of the requesting department must first approve any request for purchase. The department head may appoint an individual in writing within the department to maintain inventories and prepare requests for the department. Notification of such an appointment shall be made to the City Clerk/Finance Director and/or the City Administrator. With respect to this policy, the City Clerk/Finance Director may act on behalf of the City Administrator in his/her absence.

City Administrator

Any order over the amount of $5,000 once approved by the department head or authorized individual and reviewed by the City Clerk/Finance Director, shall be forwarded to the City Administrator for approval. The City Administrator may approve up to $5,000 for unbudgeted items, and up to $15,000 for budgeted items. Any item over these amounts will go before the City Council.

City Clerk/Finance Director

The City Clerk/Finance Director will ensure that, for accounting purposes, necessary records are kept and made available for reference.

City Council

City Council approval will be necessary for applicable purchases over $15,000.

TYPES OF PURCHASES

General

The circumstances which are involved in the purchase of an item and/or service vary considerably. The following types of purchases define the situation, explain the purchasing procedures involved and describe the role of the department head or authorized individual in the process. Each verbal quote shall be documented and presented to the City Clerk/Finance Director. Written quotes will be supplied by the vendor.

Petty Cash

Petty cash may be used to make purchases of under 50.00.  Approval is required by the department head and must be signed out from the petty cash custodian. A receipt is required for all petty cash purchases. The City Clerk/Finance Director’s Office must authorize any increases or decreases to a department’s petty cash. The petty cash drawer under no circumstances is to be used for one’s own personal use.  Starting cash drawer money is not considered petty cash and should not be used to make any purchases.

Routine Purchases

Those budgeted items or services which are used by the department in the operation of city business that are neither ongoing nor contractual purchases as defined below and have a value of less than $5,000 are routine purchases. Final approval for any purchase above $5,000 will be given by the City Administrator.

Purchase with a Value under $5,000

Those budgeted items or services which are used by the department in the operation of city business that are neither ongoing nor contractual purchases as defined below and have a value of less than $5,000 do not require any formal purchasing procedures.  Purchases may be made by any City employee authorized by the department head.

Purchase with a Value of Between $5,000 and $15,000

Any budgeted item and/or service with a value of between $5,000 and $15,000 require a minimum of two (2) quotations unless the item or service obtained or provided is such that two (2) quotations cannot be obtained. Final approval must be given by the City Administrator or authorized individual.

Purchases with a Value of Over $15,000

Any item and/or services with a value of greater than $15,000 require quotations or submitted bids from interested vendors. Bids or quotations will be written. Final approval will be given by the City Council.

Emergency Purchases

An emergency situation exists when an item or service that is necessary to a department’s work, project or activity must be purchased as soon as possible, so as not to jeopardize that particular work, project or activity.

On-Going Purchases

Any item or service which is used by the City on an on-going basis and which, by the nature of the item or service, is not subject to comparative buying, is available only through one vendor, and is accordingly billed at regular, consistent, and predictable intervals, is an on-going purchase and is not subject to the purchasing procedures and will be paid by regular Council approval when possible, unless the due date is prior to the next Council meeting.  Under those circumstances, payment will be made with an interim warrant.

List of On-Going Purchases

• Only those items, services, and/or vendors listed in this section are on-going purchases. Any changes or additions to the following list must be made with the approval of the City Council.
• Publication of city proceedings, as required by law.
• Postal services, including routine postage fees including: utility bills, postage meter, newsletter and postage stamps.
• Printing of monthly city newsletter.
• Contractual purchases and maintenance agreements. Those items or services which are provided as a result of the City entering into a binding and legal agreement with the vendor are contractual purchases. Maintenance agreements for equipment initially purchased according to the purchasing policy. Such expenditures shall be processed in accordance with the established financial policy and, as determined by the City Clerk/Finance Director and City Administrator.
• Payroll and payroll related expenses to include: federal/state, FICA, IPERS, health and dental premiums, payroll deductions per pay period, and flexible spending.
• Utility bills.
• Education and training up to $1,500 per person.
• Bonds and lease payments including interest due.
• Monthly utility expenses, including telephone and communication expenses.
• Approved Library Board expenditures as set forth in the Bondurant Municipal Code.
• Sales tax due from utility billing and applicable parks and recreation programs.
• Routine replenishing of petty cash.
• Refunds due to residents or program participants to include: utility deposits and park and recreation classes, events or programs.
• Fuel purchases
• Business credit card payments

Immediate payment of amounts due, which if not paid promptly would result in loss of discount penalty for late payment or additional interest costs.