EXCEPTIONS TO COMPETITVE BIDDING

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EXCEPTIONS TO COMPETITVE BIDDING
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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

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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

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Is Bidding Required?

• Purchase contracts in excess of 10,000
• Contracts for public work in excess of 20,000

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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

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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

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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

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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

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Sole Source Procurement

• Very limited exception
• Available from one source only
• Product/service uniquely required in public
  interest
• No substantial equivalent

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Emergency

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

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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

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Professional Services

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

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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

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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

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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

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Preferred SourcesState Finance Law 162

• CORCRAFT
• Agencies for the blind
• Programs serving mentally ill
• Agencies for severely disabled
• Veterans workshops

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Procurement Policies and Procedures

• GML 104-b
• Written internal policies and procedures
• Applies to all procurements not subject to
  competitive bidding

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Procurement Policies and Procedures

• Determine if bidding applies/document action
• Alternative proposals/quotes how obtained
• When to use each method
• Documentation

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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

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Requests for Proposals

• Generallya 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

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RFPs (continued)

• May be used if procurement is within exception to
  CB and permitted under munys procurement
  policies
• Most commonly used for professional services,
  true leases and licenses/concessions

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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