R2017-107 Purchasing Policy RevisionRESOLUTION 2017-107
A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF
NORTH PALM BEACH, FLORIDA, REVISING THE VILLAGE'S
PURCHASING POLICY AS SET FORTH IN THE VILLAGE'S
ACCOUNTING POLICIES AND PROCEDURES MANUAL FOR INTERNAL
CONTROLS; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, Village Administration is recommending revisions to the Village's Purchasing Policy,
as set forth in the Village's Policies and Procedures Manual for Internal Controls, to: clarify the
roles of the various Village officials in the purchasing process; require posting of all competitive
solicitations; remove the eighteen month limitation for piggyback purchases; authorize the use of
Construction Manager at Risk procurement; provide specific guidelines for contract management
and oversight; and remove outdated language; and
WHEREAS, the Village Council determines that the adoption of the proposed revisions to the
Purchasing Policy is in the best interests of the Village and its residents.
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF NORTH PALM
BEACH, FLORIDA as follows:
Section 1. The foregoing recitals are hereby ratified and are incorporated herein.
Section 2. The Village Council hereby adopts the revisions to the Village's Purchasing Policy
as identified in Exhibit "A" attached hereto and incorporated herein by reference. These revised
procedures shall be included in the Village's Policies and Procedures Manual for Internal Controls.
Section 3. All resolutions or parts of resolutions in conflict herewith are hereby repealed to
the extent of such conflict.
Section 4. This Resolution shall take effect immediately upon adoption.
PASSED AND ADOPTED THIS 9T' -'DAY OF NOVEMBER, 2017.
(Village Seal)
ATTEST:
VILLAGE CLERI
v
MAYOR
Purchasing
Objective
The primary objective of the Village's purchasing operation is to maximize the value of the dollar spent.
All Village departments are responsible for accomplishing this objective by planning for future purchase
needs and completing them in an economical manner.
Responsibilities of Finance Department
- Maintain an up to date vendor list.
- Process purchase requisitions.
- Prepare and issue purchase orders.
=Pay vendor invoices.
- Manage Purchasing Card Program
Responsibilities of Village Clerk
- Receive bids and proposals
- Record bids and proposals at time designated in the competitive solicitation
- Maintain bid files.
Responsibilities of Operating Departments
- Obtain prices on comparable items.
- Search for new sources of goods and services and provide these vendor names to the Finance
Department
- Provide complete information on items to be purchased on the purchase requisitions and reference the
budget line item description.
- Provide appropriate documentation with purchase requisitions as required.
- Plan for purchases to minimize emergency purchases.
Prepare technical specifications and competitive solicitations as needed.
- Evaluate and recommend competitive solicitation awards including facilitating evaluation committees
as needed.
- Determine if sufficient funds are available in the budgeted line item.
Attempt to use the Finance Department's vendor list as a minimum for all quote requirements.
- Manage contracts for your area of responsibility ensuring that vendors provide purchasedog ods,
equipment and/or services in accordance with contract terms and prices.
- Resolve vendor performance issues as needed.
Responsibilities of Village Manager
- Advertise for bids.
Purchasing Policy
Determining Purchasing Methods:
a. All purchases that are budgeted to exceed $25,000 on either an annual basis or span across fiscal years
such as a "multi-year" contract:
1. Must be formally advertised in a newspaper of general circulation with the advertisement being no
less than fourteen (14) days prior to the opening of bids.
2. Must be awarded on a sealed bid basis by vote of Village Council.
3. The vendors list will be used as a minimum notification list of available vendors for the purposes
of soliciting bids. All competitive solicitations shall be loaded onto the North Palm Beach website
and shall be posted on Demand Star for wide distribution to possible vendors.
b. All purchases having an estimated cost between $2,500 and $25,000:
1. Require three (3) quotations. A written quote from each vendor is to be attached to the requisition.
Where a written quote is not available and on approval of the Village Manager, a memorandum
from the Department Head documenting the three (3) verbal quotes is required. No hand-written
quotes will be accepted.
2. All purchases in excess of $2,500 and up to $10,000 shall be authorized by the Department Head,
Finance Director, and Village Manager.
3. All purchases in excess of $10,000 and up to $25,000 shall be brought to the Village Council on
Consent Agenda for approval.
c. Purchases having an estimated cost of up to $2,500, unless otherwise described in this manual:
1. Do not require bids or three (3) quotes; however, Department Heads are encouraged to obtain the
most cost-effective price.
2. Shall be authorized by Department Heads.
d. Exceptions — In certain instances exceptions to the above may exist and purchases may be
accomplished using alternate methods:
1. Through the use of the emergency purchase provisions as provided for in the Emergency
Purchases section of this manual.
2. When annual contracts exist, i.e. gas, oil, tires, office supplies, etc.
3. When requirements imposed by federal, state, or county grants provide different regulations.
4. When the Village Manager deems it appropriate to use procedures of more formality than set out
above.
5. When the Village Council waives the purchasing rules and regulations.
e. The purchase of bulk motor and diesel fuel necessary to operate Village vehicles and the purchase of
inventory and goods for resale or distribution to the public shall not be subject to the rules and
regulations set forth herein and may be approved by the Village Manager and/or the Finance Director.
f Expenditures for utilities, advertising, subscriptions, registration fees, training, travel, seminars and
lectures, performing artists and entertainers, membership dues, uniform allowances, license or
maintenance renewals for existing software, and similar products or services for which competitive
procurement is either not available or wholly impracticable shall not be subject to the rules and
regulations set forth herein and may be approved by the Village Manager and/or the Finance Director.
Initiating a Purchase
Purchase Requisition
A purchase requisition must be completed_ and submitted to the Finance Department with the appropriate
documentation attached. Where equipment is covered by maintenance contracts, requests for service may
be made directly by the respective department. Copies of all approved maintenance agreements shall be
submitted to the Finance Department at the beginning of each fiscal year. An annual purchase order that
shall not exceed one year will be issued, if required by the vendor.
Requisition Preparation
Procedure to process regular requisitions:
a. Print each requisition in duplicate and give the following:
1. Department account number.
2. Date of requisition.
3. Suggested vendor name and address.
4. Village delivery location.
5. Quantity.
6. A complete, detailed description of the item(s) to be purchased along with a budget line reference.
7. Estimated net cost of line items of goods and services.
8. Estimated cost of shipping and handling.
9. Signature of department head which indicates department head's approval of purchase.
b. When necessary, bid documentation, i.e. telephone bids, requests for quotations, etc. should be
attached to the purchase requisition.
c. Purchase requisition originals are to be sent to the Finance Department.
d. Second copy is kept in the requesting department's file.
e. Upon receiving the requisition, Finance will determine the availability of funds in the department's
account. If the funds are available, preparation and processing of the purchase order will be completed
and forwarded to the Village Manager for final authorization.
f. Requisitions over $25,000 will be subject to the bidding process. Once the Village Council awards the
bid to a vendor, the operating department must prepare and forward to the Finance Department the
purchase order requisition along with a copy of the bid documentation and the adopted resolution.
g. The Village's purchasing policy allows management to "piggyback" on:
1. Current federal supply schedules, U.S. General Services Administration (GSA) or any other
federal agency contracts;
2. Current cooperative purchase contracts; and
3. Other state and local government contracts for labor and materials, providing those government
contracts identify those specific services or materials required and the government contract is beth
active and no older than 18 .. omnis ffo the date of the r este r .-ehaso
If the "piggyback" provision is to be utilized, the operating department will obtain a verbal quote from
a secondary qualified vendor to verify the "fair market" value of the item or services sought. If this
quote is significantly lower, staff will go through the normal purchasing/bidding procedures. The
verbal quote verification procedure will be indicated as part of the back-up material for the purchase.
h. In the event the "piggy -back" provision is utilized and a "change" in services, outside the scope of the
government contract is required, that change will be treated as a "change order" in accordance with this
policy.
Purchasing Procedures, Bids, Contracts, Vendor Selection, etc.
Formal Bidding
Formal bids are required for purchases in excess of $25,000.
Writina SDecifications
Upon submitting a request for formal bidding, the department should also transmit desired specifications to
be included as a part of the bidding process.
Care should be taken to design specifications so that they are not so narrow as to limit competition
unnecessarily. Department heads have the responsibility for complying with this guideline.
Identifying Suppliers
Operating departments are responsible for maintaining a comprehensive, updated list of suppliers of
various products frequently purchased by that department. It is the Village's policy to award to the lowest
qualified bidder offering merchandise conforming to pre -defined specifications.
Sealed Bid Opening
All bids/proposals shall be submitted to the Village Clerk's Office. All sealed bids are to be opened at the
exact time, date and place specified in the bid package. A bid package contains: (1) notice to bidders; (2)
complete bid specifications and (3) contract documents, if appropriate. All bids are to be opened publicly
with tabulation being made available to all vendors participating. Formal bids are to be checked for proper
submission of any required bid deposits, bonds, etc. All sealed bids will be opened by a bid board
consisting of the Village Manager or his or her designee, the Department Head concerned_and_ *'
Qer-ka representative from the Clerk's Office. After evaluation, a recommendation will be made by the
Village Manager for transmittal to the Village Council.
Sole Source Items
"Sole source purchases are the acquisition of goods and services that for all practical purposes can only be
obtained from a single vendor, usually because of limited technology, technological compatibility with
existing systems, goods or services already in use by the Village or other unique qualities of the goods or
services that preclude a competitor's price comparison." All sole source purchases will be documented by
a memo from a Department Head justifying why the purchase is sole source. Every reasonable effort
must be made to locate competitive suppliers. Only the Village Manager may certify an item as sole
source. Approval of sole source purchases over $10,000 is to be made by the Village Council.
Contracts, Retainage,, Change Orders, & Payment
a. The Village Manager is authorized to sign contracts on behalf of the Village that involve expenditures
for goods and services that are line items within the Village budget and do not exceed ten thousand
($10,000). Prior to execution of contracts, the Village Manager shall first comply with the purchasing
regulations adopted by the Village Council and have the contracts reviewed by the Village Attorney
for legal sufficiency.
b. Contracts for over $10,000 must be approved by the Village Council.
c. The annual contracts awarded by Palm Beach County, the State of Florida and the Palm Beach County
Cooperative Purchasing Council, and other governmental agencies for labor and materials are accepted
by the Village in accordance with their terms.
d. The American Institute of Architecture, AIA Document G702-1992, Application and Certificate for
Payment, is the form that is completed by the Contractor and Certified by the Architect/Engineer as
part of their payment request. This form shows the Original Contract amount then the progression of
payments previously paid, retainage, current request and balance of contract to complete the Project.
The percentage of retainage is specified in the Agreement that is executed by the Village and the
Contractor. A standard of ten percent (10%) will be used unless adjusted by the Mayor and Council.
Change Orders
A Change Order is a written instrument prepared by the Contractor, certified by the Architect/Engineer and
approved by the Village stating their agreement to the following:
a. Actual change in work required.
b. The dollar amount of the adjustment and its effect on the Contract's Total Sum.
c. The extent of the adjustment and how it will affect the Contract's timeframe.
d. If a lump sum payment is necessary, the request must be properly itemized and supported by sufficient
substantiating data to permit evaluation. All parties involved must mutually accept the adjustment(s) as
presented.
e. Unit prices stated in the Contract Documents or subsequently agreed upon must be mutually acceptable
to all parties in involved.
f. If costs are to be determined, all parties must agree upon a mutually acceptable fixed or percentage fee.
Change Order Process
a. All proposed change orders must be approved by the Village Engineer (if involved in the project), the
Department Head overseeing the project, and the Village Manager.
b. The Village Manager has the authority to approve change orders under $10,000 that are within the
original scope of the project and that do not exceed the original budget line item for the project;
however, the Village Council will be notified of any such change orders for their approval and
ratification at the next scheduled Council Meeting.
c. All change orders in excess of $10,000 must be brought to the Village Council for approval.
d. If exigent circumstances exist requiring immediate action and a delay would adversely impede the
project operationally, the Village Manager can with written documentation, authorize a change order in
excess of the $10,000. The Village Manager will be responsible for immediately reporting this Change
Order at the next scheduled Council Meeting for ratification.
Construction Manager at Risk Contracts
Except as provided herein, the foregoing Policies and Procedures are not applicable to the procurement of
Construction Manager at Risk Contracts. Construction Manager Contracts shall comply with the following
rules:
a. If the Villageanager determines that a Construction Manager at Risk contract is the appropriate
method of procurement for any construction project, then the Village will prepare a Request for
Qualifications in accordance with all applicable statutory requirements.
b. The Village shall publicly announce in a uniform and consistent manner the fact that Construction
Manager at Risk Services are required. The announcement shall include a general description of
the project, procedures for obtaining the Request for Qualifications, and the time within which
interested construction management firms may submit qualification statements.
c. The Village Manager or his or her designee shall establish criteria, procedures and standards for
the evaluation of construction management proposals, weighted for the particular project.
Evaluation factors shall include, but not be limited to: Successful Experience of the Firm
Managing Construction Projects; Qualifications/Experience of the Team; Scheduling, Cost
Control and Quality Assurance; Approach to Establishing a Guaranteed Maximum Price;
Approach to the Construction Program and Past Performance/References.
d. An Evaluation Committee, selected by the Village Manager, shall evaluate all responsive
qualification statements in accordance with the criteria established in the Request for
Qualifications. The top ranked firm(s) shall be presented to the Village Council for its review and
approval.
e. The Village Manager and Village Attorney shall negotiate a contract for Construction
Management at Risk Services for Village Council's consideration and award.
f. A Guaranteed Maximum Price shall be established by the Construction Manager utilizing
procedures established in the Contract, which will be presented to Village Council for its
consideration and approval as an amendment to the Contract.
g. Change Orders, if required, shall be approved by the Village Manager and reported to the Village
Council at the next Village Council Meeting. Change Orders that significantly alter the design
provided for in the original contract documents shall require approval of Village Council prior to
execution.
h. In the case of a valid public emergency, the Village Manager may suspend the procedures
specified herein, and authorize negotiations of a Construction Manager at Risk Contract with the
best qualified firm available at that time.
Design -Build Contracts
Except as provided herein, the foregoing Policies and Procedures are not applicable to the procurement of
design -build contracts. Design -build contracts shall comply with the following rules:
a. If the Village Manager determines that a design -build contract is the appropriate method of
procurement for any construction project, a design criteria package for the design and construction of
the project shall be prepared and sealed by a design criteria professional either employed or retained by
the Village. The design criteria professional shall meet the requirements of subsection (2) of Section
287.055(2), Florida Statutes (Consultants' Competitive Negotiation Act). If the Village enters into a
professional services contract for preparation of the design criteria package, the selection of the design
criteria professional shall comply with subsections (4) and (5) of Section 287.055, Florida Statutes.
b. The design criteria package shall specify performance-based criteria for the project, including but not
limited to the legal description of the site; survey information concerning the site; interior space
requirements; material quality standards; schematic layout and conceptual design criteria for the
project; cost or budget estimates; design and construction schedules; site development requirements;
provision for utilities, stormwater retention and disposal; and parking requirements.
c. A design criteria professional who has been selected to prepare the design criteria package shall not be
eligible to render services under a design -build contract executed pursuant to the design -build criteria
package.
d. The Village shall publicly announce in a uniform and consistent manner the fact that design -build
services are required. The announcement shall include a general description of the project, procedures
for obtaining the request for proposals, and the time within which interested design -build firms may
submit proposals.
e. The Village Manager or his or her designee shall establish criteria, procedures, and standards for the
evaluation of design -build contract proposals, weighted for the particular project, and shall solicit
competitive proposals pursuant to the prepared design criteria package from qualified design -build
firms for the project under consideration. In addition to price, evaluation factors shall include, but not
be limited to, ability of professional personnel; past performance; ability to meet time and budget
requirements; location of firm; and recent, current and projected work loads.
For each public construction project involving the award of a design -build contract, the Village
Manager may initiate a two-step process whereby firms first submit qualification statements. The
Village Manager or, at the Manager's option a selection committee selected by the Village Manager,
shall evaluate qualification statements in accordance with published criteria, including, but not limited
to, past experience; availability; and the qualifications of key personnel and (provided that at least
three (3) qualification statements have been submitted) select no fewer than three (3) qualified design -
build firms from which competitive proposals shall be solicited based on the design criteria package.
This step is not mandatory and the Village Manager may forego the pre -qualification process.
g. The Village Manager or, at the Manager's option, an evaluation committee selected by the Village
Manager, shall evaluate the proposals in accordance with the criteria set forth the solicitation and
recommend to the Village Council no fewer than three (3) qualified design -build firms in order of
preference. The Village Council may require public presentations and shall rank the firms. The
Village Manager, in consultation with the Village Attorney, shall then commence negotiations with the
top-ranked firm.
h. Should the Village Manager be unable to negotiate a satisfactory contract with the top-ranked firm,
negotiations shall be formally terminated in writing and negotiations commenced with the second -
ranked firm. Should the Village Manager be unable to negotiate a satisfactory contract with the
second -ranked form, negotiations shall be formally terminated in writing and negotiations commenced
with the third -ranked firm. Should the Village Manager be unable to negotiate a satisfactory contract
with any of the selected firms, additional firms shall be selected in accordance with the foregoing
procedures and negotiations shall continue until a contract is reached.
The Village Manager shall consult with the design criteria professional who prepared the package
concerning evaluation of the proposals, approval of detail work and drawings for the project and
compliance of project construction.
j. Each contract for design -build services shall contain a prohibition against contingent fees as required
by law.
k. In the case of a valid public emergency, the Village Manager may suspend the procedures specified
herein, and authorize negotiations of a design -build contract with the best qualified design -build firm
available at that time.
Contract Payment Process
Certificates for Payment
An Architect and/or an Engineer will be engaged on all professionally bid projects which are new or
structurally reengineered. In those instances:
a. The Architect/Engineer will, within seven days after receipt of the Contractor's Application for
Payment, either issue to the Village a Certificate for Payment, with a copy to the Contractor, or notify
the Contractor and the Village in writing of the Architect/Engineer's reasons for withholding
certification in whole or in part.
b. The issuance of a Certificate for Payment will constitute a representation by the Architect/Engineer to
the Owner that the work has progressed to the point indicated and that the quality of the Work is in
accordance with the Contract Documents. It will further constitute a representation that the Contractor
is entitled to payment in the amount certified.
Final Completion & Final Payment
a. Upon receipt of written notice that the work is ready for final inspection and acceptance and upon
receipt of a final Application for Payment, the Architect/Engineer will promptly make such inspection
and, when the Architect/Engineer finds the work acceptable under the Contract Documents and the
Contract fully performed, the Architect/Engineer will promptly issue a final Certificate for Payment.
b. Neither final payment nor any remaining retained percentage shall become due until the Contractor
submits to the Architect/Engineer:
1. an affidavit that payrolls, bills for materials and equipment and other indebtedness connected with
the work have been paid or otherwise satisfied,
2. a certificate evidencing that insurance required by the Contract Documents to remain in force after
final payment is currently in effect and will not be cancelled or allowed to expire until at least 30
days prior to written notice has been given to the Village,
3. a written statement that the Contractor knows of no substantial reason that the insurance will not
be renewable to cover the period required by the Contract Documents,
4. consent of surety, if any, to final payment,
5. if required by the Village, other data establishing payment or satisfaction of obligations.
NOTE: Contractor's application for payment (partial or final) for repairs or maintenance to
"existing" systems and infrastructure can be authorized by the Village Department Head for which
those repairs/maintenance was authorized.
c. Acceptance of final payment by the Contractor, a Subcontractor or material supplier shall constitute a
waiver of claims by that payee except those previously made in writing and identified by that payee as
unsettled at the time of final Application for Payment.
d. The Certificate of Completion and the Application for Final Payment forms must be completed. The
Application for Final Payment requests the release of the retainage and requires the following
signatures:
1. For Projects $10,000 or less, the Director managing the project and the Village Manager will sign
off upon completion of the project.
2. Projects from $10,001 to $100,000 —The Director managing the project along with the Director of
Community Development and the Village Manager will sign -off upon completion of the project.
Projects exceeding $100,000 requires the same signature authority as item #2 and will be
forwarded to the Mayor and Council for final closeout and release of contractual retainage.
Purchase Orders
Use of Purchase Orders
A purchase order should be used for the purchase of a single item over $2,500 that is not purchased on a
regular basis. This would include all purchases not covered by a blanket purchase order. All purchases that
are budgeted to exceed $25,000 on an annual basis or span across fiscal years such as a "multi-year"
contract surpass the Village's bid threshold and will be bid prior to the beginning of the fiscal year.
Exceptions are outlined in the Purchasing Policy "Determining Purchasing Methods" section, as well as in
the Emergency Purchases section.
Procedure for Issuing a Purchase Order
a. All purchase orders will be issued by the Finance Department.
b. All purchase orders will be sequentially numbered.
c. The purchase order is prepared in triplicate.
d. The purchase order is printed giving the following information:
1. Purchase order number.
2. Vendor code number.
3. Vendor name.
4. Vendor address.
5. Vendor contact person.
6. Vendor telephone number.
7. Vendor fax number.
8. Department account number.
9. Requisition number.
10. Date of purchase order.
11. Required delivery date.
12. Terms
13. F.O.B. point
14. Destination shipping point.
15. Quantity ordered.
16. Vendor proprietary stock number (if any).
17. Generic description of goods or services ordered.
18. Unit price.
19. Extension
20. Net total of goods and services ordered.
21. Allowable shipping charges.
22. A box checking an original or confirming purchase order.
23. Signature of responsible Village official.
How Purchase Orders are processed
a. The original copy is delivered directly to the vendor.
b. The second copy is retained by the Finance Department for account encumbrance and is attached to the
requisition original.
c. The third copy is sent to the Department Head or the requisitioning department.
Cancellation of a Purchase Order
All cancellations of orders must be made by forwarding to the Finance Department the receiving copy of
the purchase order with the word "VOID" printed across the face of said copy. The Department Head
should sign and date all voided purchase orders, as well as provide a brief reason for the void.
Expediting Orders
Once the Finance Department has issued a purchase order, no follow-up work is done on the order by
Finance. It will be the responsibility of the operating department to expedite orders.
Back Orders of Partial Payments
When several items are ordered, the supplier may deliver only a portion of the quantity requested. The
supplier may then advise you that the remainder of the order has been back ordered. The Department Head
should retain the copy of the purchase order until all items are delivered. Should the vendor invoice the
Village for the partial order delivered, the following partial payment procedures should be followed:
a. When the invoice is received, the department head should forward the invoice to the Finance
Department with his or her approval of the partial payment. Notations should be made on the invoice
that the order is "INCOMPLETE" and the purchase order number circled, or noted if it is not
mentioned on the invoice. The Finance Department will use this as authority for partial payment.
Documentation must be sent to the Finance Department indicating which items have been received
before the Finance Department makes the payment on such invoice.
b. The department copy of the purchase order remains in the department until the entire order is filled,
invoiced, or balance canceled.
Blanket Purchase Orders
Blanket purchase orders can be requested from the Finance Department for the purchase of materials,
supplies, parts and similar items over a certain period of time not to exceed a single fiscal year. Examples
include, but are not limited to, office supplies, computer supplies, uniforms, firearms and firearm
accessories, badges and specialized public safety equipment, hardware store purchases, tires, tubes, and
batteries.
A blanket purchase order may be in any amount up to $10,000 and must be approved by the Department
Director, the Finance Director, and the Village Manager. No single ptw-6 s item pursuant to a blanket
purchase order shall exceed $2,500. Blanket purchase orders in excess of $10,000 shall be approved by the
Village Council, provided, however, that blanket purchase orders in excess of $10,000 and up to $25,000
shall be placed on the Consent Agenda.
Split Purchases (Pyramiding)
a. Split purchases, or pyramiding, is defined as issuing more than one purchase order on the same product
with the intent of circumventing these regulations and/or budget limitations within an unreasonably
short time period such that the totals of the purchase orders equal an amount greater than that
authorized by these regulations. Split purchases are prohibited.
Emergency Purchases
General Policy
True emergencies do occur as a result of parts, supplies, and labor needed to repair equipment and facilities
that are needed to provide services for the health, welfare and safety of the public. Anticipating needs in
advance, whenever possible, will hold emergency purchases to a minimum and allow the use of standard
procedures.
Procedure
a. Emergency purchases between $0 to $2,500, mark invoice "EMERGENCY PURCHASE". The
invoice must be submitted to and approved by the Department Head, subject to confirmation by
Village Manager.
b. Emergency purchases of more than $2,500 and up to $25,000, mark invoice "EMERGENCY
PURCHASE", and contact the Village Manager for approval, subject to confirmation by the Village
Council.
c. Emergency purchases over $25,000 are not to be made without the approval of the Village Council.
Purchasing Cards
Recognizing the advent of automated internet supply vendors and the occasional time sensitive
procurements, the utilization of a Village purchasing card is both necessary and required. The Finance
Department shall maintain one purchasing card per department to be utilized in select cases in accordance
with the existing purchasing regulations. Any department needing to use the purchasing card shall request
in writing, to the Finance Director, the intended use of the card, the amount and the account number(s) to
be charged. All requests must be approved by the department head --prior to sending it to the Finance
Department. If the request meets all applicable purchasing regulations and the departmental funds are
available, the Finance department will obligate the Village for the purchase by use of the Village's
purchasing card. The department making the purchasing request shall be responsible for providing invoices
(receipts) or other acceptable documentation to the Finance Department immediately upon receipt. All
invoices (receipts) shall be initialed with the account number(s) to be charged.
Sales Tax Exemption
Village purchases are exempt from Florida sales tax. When making purchases, the vendor will be provided
with the sales tax exemption number.
Contract Management and Oversight
ODeratinR Departments are responsible to manaiae contracts funded by their budiaet or in their area of
responsibility. Each contract shall be assigned one person as the contract manager of that contract.
Contract Management and Oversight includes:
1. Verification that vendor provides goods and/or services as ordered.
Is the item the same brand, size, and package?
Were the services performed by the individual identified in the contract or was the process for
substitution followed?
2. Were the operating and maintenance manuals and warranties received? Provide information to
Public Works, or Other Department who may be involved in any future repairs, if appropriate.
3.Were the goods or services delivered timely
4. Was training included and provided in accordance with contract?
5.Were goods or services invoiced accurately? Note that vendors are always allowed to invoice at
a lower price than in the contract allowing them to pass through any additional discounts available but
vendors are not allowed to invoice at a higher than contract price.
6. Was there a request for additional goods or services? If yes, was the change order process
followed?
7. Was contract completed by the end of the fiscal year? If not, contract manager is responsible to
notify the Finance Department of the need to roll over the purchase order into the next fiscal year.
8. Were assets purchased as part of the Contract?, If yes, the Contract Manager is responsible to
ensure that the Finance Department receives the Serial Number or other identifying information to include
in the Village's assets.
Anytime there is an accident involving a vendor or a dispute with a vendor, the contract manager should
engage the assistance of the Department Head.