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EXCEPTIONS TO COMPETITVE BIDDING

Competitive Bidding Requirements: General Municipal Law 103. 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 $20,000Purchase contracts in excess of $10,000Requires awards to t

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EXCEPTIONS TO COMPETITVE BIDDING

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    1. EXCEPTIONS TO COMPETITVE BIDDING

    2. Competitive Bidding Requirements: General Municipal Law §103 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…”

    3. Purposes of Competitive Bidding 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

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

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

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

    7. Exceptions 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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    22. RFPs (continued) 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) Comprehensive, fair solicitation process Fair and equitable negotiation process Fair review/ evaluation or rating process

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