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POL: 2015 PURCHASING POLICY SUBJECT: PURCHASING POLICY PURPOSE: To establish general guidelines related to Purchase or Contract for services I. SUPPLIES and SMALL ITEMS (Valued under $3,000) It shall be the policy of Jefferson County that all department heads and elected officials shall have the authority to make purchases of supplies and small items of equipment valued under$3,000 without going through the competitive bidding process. However, whenever possible, more than one price should be obtained. Whenever there is more than one supplier in the area, every effort should be made to rotate purchases between suppliers if prices are competitive. II. PURCHASES and CONTRACTS (Valued between $3,000 and $80,000) All department heads and elected officials shall have the authority to make purchases or enter contracts for services that have first been approved during the budget process by the county commissioners and that then follow the county Purchasing Policy. All purchases and contracts shall be done in a competitive process as follows: 1. Bidder's List: The department head or elected official shall consult the current bidder's list on file at the Clerk and Recorder's Office and solicit bids from that list. All vendors on the bidder's list for the particular item or service needed shall be contacted and be given an opportunity to bid on the same bid requirements. 2. Phone Solicitation: If less than 3 vendors are available from the Bidder's List, phone solicitation of additional vendors is required in order to ensure that at least 3 vendors have been solicited to provide bids if other suppliers or contractors are reasonably available. A hard copy of the solicitation is required, including exact bid specifications, name of business, person talked to, entails, refusal or bid estimate, and phone number for record keeping. The department head or elected official must complete and sign the bid form. The bid must be let to the lowest and best responsible bidder with all bidders being given the same information and opportunity. 3. Record-keeping of bids: An original of all bids and the completed bid form required by this policy must be turned into the Clerk and Recorder's Office. 4. If the purchase or contract solicitation has no bids under $80,000, the department head or elected official must then follow the requirements for purchases or contracts over$80,000. 5. §7-5-2305, MCA, prohibits the division of contracts to circumvent bidding Revision adopted June 16, 2015 -1- requirements. 6. Consult with the Clerk and Recorder or County Attorney's Office if there are any questions about the process. III. PURCHASES and CONTRACTS (valued at $80,000 or more) All department heads and elected officials shall have the authority to make purchases or enter contracts for services valued at$80,000 or more by first obtaining the approval during the budget process by the county commissioners and then following the county Purchasing Policy as follows. All purchases and contracts shall be done in a competitive process as follows: 1. The department head or elected official shall consult the current bidders list on file at the Clerk and Recorder's Office and solicit bids from that list. 2. All vendors on the bidder's list for the particular item or service needed shall be contacted and be given an opportunity to bid on written bid requirements. 3. An advertisement soliciting bids shall also be placed in the official county newspaper and any other publication deemed appropriate. 4. A Bid Solicitation form, available at the Clerk and Recorder's Office, shall be used and the bid process shall include a review by the County Attorney's Office prior to seeking bids. 5. Requests for Proposals must be published twice, not more than 21 days or less than 3 days prior to the bid opening, with at least 6 days separating each publication in the county's contract newspaper, pursuant to §7-1-2121, MCA. 6. Bid Security: Any department entering into any contract or purchase in excess of $80,000 shall require bid security in compliance with the provisions of Title 18, Chapters 1 and 4, MCA. 7. The lowest responsible bid should be accepted. 8. Record-keeping of bids: An original of all bids and the completed bid form required by this policy must be turned into the Clerk and Recorder's Office. IV. EXCEPTIONS to POLICY 1. Purchases at Public Auction. §7-5-2303, MCA, allows the county to purchase Revision adopted June 16,2015 -2- vehicles,machinery,equipment,material and supplies up to $150,000 at public auctions instead of going through the bidding process. 2. Emergency Purchases. §7-5-2304 (2), MCA,provides that the above requirements do not apply to emergency purchases. 3. Under §7-5-2308, MCA, the State may act as the purchasing agent for the County with mutual consent of both parties, outside of the terms of this policy. V. CONTRACT REVIEW It shall be the policy of Jefferson County to have one of the attorneys review any contract prior to signing. All Jefferson County contracts must have a transmittal slip attached, signed by a majority of the commissioners, county attorney, board chair (if applicable), department head and clerk&recorder, prior to being approved. VI. JEFFERSON COUNTY and IN-STATE PREFERENCE 1. It shall be the policy of Jefferson County that purchases for supplies, small Items and contracts for professional services may be awarded to Jefferson County businesses if said bid is no more than$500 or 3%higher (whichever is less)than the bid of the lowest responsible bidder that is not a county resident as long as there are no out-of-state bidders. 2. If there is one or more out-of-state bidders for a contract for construction, repair, or maintenance of a building, road, or bridge that is in excess of$50,000 and that is subject to competitive bid under this part, the state resident bid preference provided in 18-1-102(1)(a) applies. VII. CONTRACTOR REQUIREMENTS Any contractor selected for any project shall be required to provide proof of compliance with the Contractor's Registration Law with the Montana Department of Labor as set forth in Title 39, Chapter 9. Revision adopted June 16, 2015 -3-