Purchasing Policy

Purchasing

LOPL requires competitive bids for certain items and services to control costs; to give interested, qualified suppliers an equal opportunity to supply goods and services to LOPL; and, to guard against favoritism, improvidence, extravagance, fraud, and abuse.

The Executive Director, with the consent of the LOPL Finance Director, may authorize purchases or commit to making purchases on behalf of LOPL. Thus, with the few exceptions set forth in this policy, all purchases require advance planning and the preparation of a purchase order.

Procurement authority is granted according to purchase amount as outlined below. Purchases shall not be divided so as to keep the purchase below $2,500 or any other authority threshold. Repetitive purchases during a fiscal year with the same vendor for the same commodity or service which exceed $25,000 shall be considered as annual contracts.

Purchases/Services Bidding Procedure

For all Purchases/Services less than $2,500

• LOPL Department Directors have the authority to purchase
• Multiple bids are not necessary
• No other approvals are necessary

For all Purchases/Services equal to or greater than $2,500 and less than $10,000

• Quotes will be sought from at least two bidders.
• Quotes may be verbal and do not require public advertisement
• LOPL staff will submit in writing to the LOPL Finance Department all verbal quotes received.
• LOPL shall make an award based on the most responsible quote that is in the best interest of LOPL.

For all Purchases/Services equal to or greater than $10,000 and less than $25,000

• Quotes will be sought from at least two bidders
• Quotes will be in writing
• Quotes may be made without public advertisement
• LOPL staff will submit all quotes received in writing to the LOPL Finance Department.
• LOPL shall make an award based on the most responsible quote that is in the best interest of LOPL

For all Purchases/Services equal to or greater than $25,000

• Regional Board approval will be obtained before awarding or purchasing.
• Quotes will be sought through a formal sealed bid process as follows:

Authorized Procurement Methods

Unless otherwise authorized by law, all LOPL contracts shall be awarded by one of the following methods:

1. Competitive Sealed Bidding;
2. Competitive Sealed Proposals;
3. Small Purchases;
4. Sole Source Procurement;
5. Emergency Procurements;
6. Special Procurements;
7. Architectural and Engineering Services
8. Competitive Negotiation Qualification-Based Selection for Projects Using Federal Aid

A. Competitive Sealed Bidding

1. Conditions for Use. Contracts expected to exceed $25,000 shall be awarded by competitive sealed bidding except as otherwise provided in Section I (Authorized Procurement Methods).
2. Invitation to Bid. An Invitation to Bid shall be issued and shall include a purchase description, and relevant requirements applicable to the procurement.
3. Public Notice. Adequate public notice of a minimum of 10 days of the Invitation to Bid shall be given prior to the date set forth therein for the opening of bids. Public Works Construction shall be handled in accordance with state law. Use of LOPL website for posting of solicitations shall constitute adequate notice unless federal, state or grant funding require otherwise. Addenda shall be issued with a minimum of 72 hours notice prior to deadline for bids.
4. Bid Opening. Bids shall be opened publicly in the presence of one or more witnesses at the time and place designated in the Invitation to Bid. The amount of each bid, and such other relevant information, together with the name of each bidder shall be recorded; the record and each bid shall be open to public inspection. Bids received after the deadline shall not be read or considered.
5. Bid Acceptance and Bid Evaluation. Bids shall be unconditionally accepted without alteration or correction, except as authorized in this Policy. Bids shall be evaluated based on the requirements set forth in the Invitation to Bid, which may include criteria to determine acceptability such as inspection, testing, quality, workmanship, delivery, past performance and suitability for a particular purpose. Those criteria that will affect the bid price and be considered in evaluation for award shall be objectively measurable, such as discounts, transportation costs, and total or life cycle costs. The Invitation to Bid shall set forth the evaluation criteria to be used. No criteria may be used in bid evaluation that are not set forth in the Invitation to Bid except as set forth herein.

   In the event that only one (1) bid is received, the Finance Director may postpone the bid opening for one (1) week for the purpose of obtaining additional bids. The bid received shall remain unopened. If after this extension, there is still only one (1) bid, the bid shall be opened and reviewed.

6. Correction or Withdrawal of Bids; Cancellation of Awards. Correction or withdrawal of inadvertently erroneous bids before or after bid opening, or cancellation of awards or contracts based on such bid mistakes, may be permitted. Mistakes discovered before bid opening may be modified or withdrawn by written or electronic notice received in the office of the Finance Director prior to the time set for bid opening. After bid opening, no changes in bid prices or other provisions of bids prejudicial to the interest of LOPL or fair competition shall be permitted. Except as otherwise provided, all decisions to permit the correction or withdrawal of bids, or to cancel awards or contracts based on bid mistakes, shall be supported by a written determination made by the Finance Director. In general, unit prices shall govern in the event of mathematical errors.
7. Award.
   1. The contract shall be awarded by written notice to the lowest responsible and responsive bidder whose bid meets the requirements and criteria set forth in the Invitation to Bid. In the event all bids exceed available funds, the Finance Director is authorized in situations where time or economic considerations preclude solicitation of work of a reduced scope to negotiate an adjustment of the bid price in coordination with the Project Manager, including changes in the bid requirements, with the low responsive and responsible bidder, in order to bring the bid within the amount of available funds.
   2. Local Preference. The following provisions shall apply in the procurement of supplies and services: In the event that the lowest bid among those provided by responsive and responsible local vendors is within five (5) percent of the lowest responsive and responsible bidder who is not a local vendor, the lowest responsive and responsible local vendor shall be afforded the opportunity to match the bid submitted by the nonlocal bidder. If the lowest responsive and responsible local vendor agrees to match the lowest bid, then the contract shall be awarded to the local vendor. This provision shall not apply to construction projects.
8. Multi-Step Sealed Bidding. When it is considered impractical to initially prepare a purchase description to support an award based on price, an Invitation to Bid may be issued requesting the submission of unpriced offers to be followed by an Invitation to Bid limited to those bidders whose offers have been qualified under the criteria set forth in the first solicitation.

B. Competitive Sealed Proposals

1. Conditions for Use.
   1. A contract expected to exceed $25,000 may be entered into by competitive sealed proposals when the Finance Director, determines that the use of competitive sealed bidding is either not practicable or not advantageous to LOPL.
   2. Competitive sealed proposals may be used when it is either not practicable or not advantageous to LOPL to procure specified types of supplies, services, or construction by competitive sealed bidding.
2. Request for Proposals. Proposals shall be solicited through a Request for Proposals.
3. Public Notice. Adequate public notice of a minimum of 10 days of the Request for Proposals shall be given prior to the date set forth therein for the opening of bids. Public Works Construction shall be handled in accordance with state law. Use of the LOPL website for posting of solicitations shall constitute adequate notice unless federal, state or grant funding require otherwise.
4. Receipt of Proposals. Proposals shall be opened so as to avoid disclosure of contents to competing offerors during the process of negotiation. A Register of Proposals shall be prepared which lists the name of the respondent. The successful proposal shall be open for public inspection only after contract award. Late proposals may be accepted when there are extenuating circumstances and when no advantage could be gained by the proposer by the late submission. The Finance Director shall make the determination.
5. Evaluation Factors. The Request for Proposals shall state the relative importance of price and other evaluation criteria.
6. Discussion with Responsible Offerors and Revisions to Proposals. As provided in the Request for Proposals, discussions may be conducted with responsible offerors who submit proposals determined to be reasonably susceptible of being selected for award for the purpose of clarification to assure full understanding of, and responsiveness to, the solicitation requirements. Offerors shall be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals, and such revisions may be permitted after submissions and prior to award for the purpose of obtaining best and final offers. In conducting discussions, there shall be no disclosure of any information derived from proposals submitted by competing offerors.
7. Award. Award shall be made to the responsible offeror whose proposal conforms to the solicitation and is determined in writing to be the most advantageous to LOPL, taking into consideration price and the evaluation factors set forth in the Request for Proposals. No other factors or criteria shall be used in the evaluation. The contract file shall contain the basis on which the award is made.
8. Debriefings. Finance staff and Project Managers are authorized to provide debriefings that furnish the basis for the source selection decision and contract award.

Exclusions from Competitive Requirements

• Purchases through cooperative / government contracts
• Items to be purchased from a “single” or “sole source. Single and Sole Source purchases are allowed only with the approval of the LOPL Executive Director and LOPL Finance Director.
• Purchases/services required in an emergency (see Other Purchasing Provisions below).
• Legal services, litigation, and related legal expenses.
• Professional Services Contracts under $25,000. Although not required, where the scope of work is clear, a request for quotation may be used to solicit these services.

Other Purchasing Provisions

1. It is LOPL policy to purchase goods and services from qualified local sources when prices are fair and reasonable.
2. The Executive Director and the Finance Director shall be responsible for establishing procedures that comply with the requirements of this policy and demonstrate efficient controls.
3. LOPL shall strive to encourage local MWBEs and other local small businesses (LS/M/WBEs, or Local, Small and Minority and Women Owned Business Enterprises) to compete for purchasing opportunities from LOPL and to maximize the opportunities afforded to LS/M/WBEs by LOPL.
4. Emergency procurements are permissible when there exists a threat to public health, welfare, or safety under emergency conditions; provided that such emergency procurements shall be made with such competition as is practicable under the circumstances. A written determination of the basis for the emergency and for the selection of the particular contractor shall be included in the contract file. Approval of emergency procurement actions for goods, materials, and services exceeding the $25,000 Board approval threshold must, at a minimum, be verbally approved by the Executive Director, or if not available, the Acting Director in his/her absence. Verbal approval shall be followed up with a written memo which outlines the nature of the emergency, quotes obtained, and contractor selected. This memo shall be signed by the Executive Director and attached to the Board agenda item. Board confirmation of the emergency procurement shall be obtained at the next scheduled Regional Board meeting.
5. Purchase Cards:

   Use of Purchasing Cards (P-cards) by governmental entities is widely recommended for the following benefits:

   • Convenience of purchasing without a purchase order
   • Expedited delivery of goods
   • Better pricing on goods
   • Expanded list of merchants from whom purchases can be made
   • Reduced paperwork
   • Simplified purchasing and payment process
   • Lower overall transaction processing costs per purchase
   • Increased management information on purchasing histories
   • The ability to set and control purchasing dollar limits
   • The ability to control purchases to specific merchant categories and vendors
   • Receipt of rebates from the bank based upon dollar volume of total purchases.

Statutory References and Authority

Statutory references for purchasing cards

Reference	Subject
OCGA § 36-80-24	Local Government General Provisions, p-cards

Policies

• The Director of Finance will serve as the Purchasing Card Administrator, and is authorized to establish a purchasing card program and develop procedures that meet the requirements of this policy, to include:
  • Issuing an RFP to select a p-card vendor
  • Electronically restricting vendors and categories of items purchased with the p-card
  • Establishing and modifying spending limits for each user
  • Establishing internal controls to meet or exceed best business practice and audit standards
• The Executive Director will have oversight of the p-card payment through the AP process (signing checks and reviewing activity logs and backup documentation). The Executive Director and the Director of Finance will establish a system-wide credit limit.
• All other LOPL purchasing and procurement policies will apply to p-card purchases
• Purchasing Card control: The Purchasing Card Administrator issues the p-cards to the authorized card holder who has signed the Purchasing Card Agreement which covers the terms and conditions of the program. The issuance of a p-card is strictly prohibited until the card holder has signed the purchasing card agreement.
• Safekeeping: Access to the systems database is restricted to authorized personnel. Misuse of the Purchasing Card online portal is strictly prohibited and may result in disciplinary action up to and including termination. The P-card is Library property and as such should be retained in a secure location.
• Authorization: The card holder is solely responsible for all transactions. P-card use is permissible only to authorized users.
• Card Cancellation: All p-cards must be cancelled immediately when a card holder terminates employment with the Library or assumes another position that does not require the use of the p-card in that department.
• Dollar Limits of the Purchasing Card: P-cards will have a limit based on the card’s authorized user. Temporary increases in the limit must be requested through the Finance Department.
• Documentation: Purchasing card transactions should be documented on the monthly P-card log. All travel expenses must adhere to LOPL travel expense policy.
• Dates and Deadlines:
  1. P-card monthly logs and all backup documentation must be turned in by the monthly deadline established by the Purchasing Card Administrator.
  2. In the event supporting documentation is missing or incomplete, the card holder will be notified by the Purchasing Card Administrator. It is the responsibility of the card holder to provide missing or incomplete information to the Finance Department in a timely fashion.
  3. If the documentation is not received by the Purchasing Card Administrator within [two weeks?] of notification, the Purchasing Card Administrator will notify the card holders appropriate Supervisor for follow up.
  4. If a response is not provided within two weeks of the notification to the Supervisor, the card holder’s account will be deactivated.
  5. Undocumented or unauthorized charges must be immediately paid to the Library by the card holder. Further transactions may be restricted and are subject to review for disciplinary action.
  6. Reinstatement of the card holder will be at the discretion of Library Executive Director.
• Lost Cards: If a card is lost or stolen, the card holder must immediately notify the following:
  1. Current service provider (see P-card instruction sheet)
  2. Purchasing Card Administrator
• Purchasing Card Violations: Violations of the policy may result in the deactivation of card holder accounts and penalties up to and including termination of employment.

Definitions

Competitive bidding

written or verbal quotes or bids

Single source purchases

purchases in which other qualified sources may be available, but competition would not be beneficial because of prior agreements or technical considerations. Allowed only with the approval of the LOPL Executive Director and LOPL Finance Director.

Sole source purchases

purchases in which there are no other qualified suppliers. In the absence of competition, reasonable attempts to negotiate fair and reasonable pricing are required. Allowed only with the approval of the LOPL Executive Director and LOPL Finance Director

LS/M/WBEs

Local, Small and Minority and Women Owned Business Enterprises.

Emergency

When there exists a threat to public health, welfare, or safety under emergency conditions. The State of Georgia Procurement Manual also restricts emergencies as “unforeseen causes, including, but not limited to, extreme weather conditions or official declared emergencies,” and specifically states that “poor planning or the pending expiration of funds does not constitute a valid justification for an emergency purchase.”