BIDDING LEASING & PURCHASING EQUIPMENT Sponsored by

YOUR OPTIONS PURCHASE RENT LEASE LEASE PURCHASE

PURCHASE FUNDS MUST BE AVAILABLE ESTABLISH CAPITAL RESERVE FUND BORROW FUNDS PAY OFF OF PERIOD OF TIME

RENT SHORT TERM SPECIALIZED EQUIPMENT REPLACEMENT FOR DOWN TIME WITH OR WITHOUT OPERATOR HIGH COST

LEASE PAY WHILE USING MANAGEMENT OF CASH FLOW MAINTENANCE RESPONSIBILITY NO EQUITY BUILD UP EQUIPMENT REPLACEMENT CONROLLED BY LENGTH OF LEASE

LEASE PURCHASE NO UP FRONT CASH PAYMENT PAY WHILE USING EQUITY AT END OF LEASE MORE EXPENSIVE THAN PURCHASE CASH FLOW MANAGEMENT

LAWS PERTAINING TO BIDDING & CONTRACTING PREVAILING WAGE ACT DAVIS BACON ACT STEEL PRODUCTS PROCUREMENT ACT MOTOR VEHICLE PROCUREMENT ACT WORKERS COMPENSATION ACT ACT 4 OF 1974 LIQUID FUELS

WHY BID? TO PROVIDE FOR “COMPETITIVE PURCHASING” and IT IS THE LAW!

Second Class Township Code

PURCHASE OR LEASE TOTAL COST OF CONTRACT PAID IN ONE YEAR OR MORE THAN ONE YEAR

UNDER $4,000 MUNICIPALITY TO ESTABLISH REGULATIONS

$4,000 to $10,000 THREE (3) WRITTEN OR TELEPHONE QUOTATIONS VENDER’S NAME, PURPOSE OF CONTRACT, & PRICE REMAIN ON FILE FOR THREE (3) YEARS

EXEMPTIONS MAINTENANCE, REPAIRS OR REPLACEMENTS FOR WATER, ELECTRIC LIGHT OR OTHER PUBLIC WORKS

EXEMPTIONS IMPROVEMENTS, REPAIRS & MAINTENANCE MADE BY OWN EMPLOYEES. MATERIAL FOR STREETS, IN EXCESS OF $10,000 MUST BE BID

EXEMPTIONS PATENTED & MANUFACTURED OR COPYRIGHTED PRODUCTS. POLICIES OF INSURANCE OR SURETY BONDS. PURCHASE OF PUBLIC UTILITY WITH TARIFFS ON FILE WITH PUC.

EXEMPTIONS INTERGOVERNMENTAL CONTRACTS PERSONAL OR PROFESSIONAL SERVICES PURCHASE OF REAL ESTATE EMERGENCY CONDITIONS

BID DOCUMENTS ADVERTISEMENT INSTRUCTION TO BIDDERS SPECIFICATIONS CONTRACT BONDS

MUNICIPALITY NAME & ADDRESS DATE, TIME & PLACE OF BID OPENING BRIEF DESCRIPTION IF PREVAILING WAGE REQUIRED ADVERTISING FOR BIDS

WHERE & WHEN INSTRUCTIONS AND SPECIFICATIONS MAY BE RECEIVED DEADLINE FOR RECEIPT OF BIDS BOND REQUIRED MUNICIPAL RIGHT TO REJECT ADVERTISING FOR BIDS

INSTRUCTIONS PROPOSAL FORM QUALIFICATIONS WITHDRAWAL BOND REQUIREMENTS MARKING BIDS INTERPRETATIONS

INSTRUCTIONS BIDDERS OBLIGATIONS BID CHANGE (ADDENDUM) PRE-BID MEETING

INSTRUCTIONS BID OPENING BID EVALUATION LOWEST RESPONSIBLE BIDDER NOTICE TO AWARD BID AWARD

SPECIFICATIONS CLARITY DEFINITE REQUIREMENTS STANDARD SPECIFICATIONS BRAND NAME “OR EQUAL”

BONDS BID BONDS: A PLEDGE OF BIDDER’S GOOD FAITH TO ENTER INTO A CONTRACT IF LOWEST RESPONSIBLE BIDDER

BID BONDS AMOUNTS: COUNTIES ◦3rd thru 8th Class --10% ◦2nd Class -- 5% CITIES – May Require BOROUGHS – Council’s Discretion TOWNSHIPS – No Requirements SHOULD BE IN AMOUNT TO COVER COST OF REBID

PERFORMANCE BOND MUNICIPAL PROTECTION THAT CONTRACTOR WILL CARRY OUT THE TERMS OF THE CONTRACT

AMOUNT: PUBLIC WORKS CONTRACTS - Over $5,000 Requires 100% ALL OTHER CONTRACTS - Counties & Townships must at least Require -- 50% Boroughs - Council Discretion to Require 50%

PERFORMANCE BOND Cities - Amount set by Council 50% required for all Liquid Fuels Projects CHECK YOUR SOLICITOR, MUNICIPAL CODE & PUBLIC WORKS CONTRACTORS BOND LAW ON ALL BOND QUESTIONS

PAYMENT BOND PROTECTION FOR SUBCONTRACTOR & OTHERS FURNISHING LABOR OR MATERIAL TO PRIME CONTRACTOR. 50 TO 100% FOR PUBLIC WORKS CONTRACTS -$5,000 AND UNDER 100% FOR CONTRACTS OVER $5,000

CONTRACTING FOR MUNICIPAL SERVICES

WHAT IS CONTRACTING? AN AGREEMENT IN WHICH A LOCAL GOVERNMENT PAYS A NON-EMPLOYEE TO PROVIDE A SPECIFIC SERVICE

NON-EMPLOYEES PRIVATE FIRM OR INDIVIDUAL OTHER MUNICIPALITIES OR GOVERNMENTAL AGENCIES (Consortium, COG, Authorities) NON-PROFIT ORGANIZATIONS

PRO’S & CON’S PRO’S ◦ADDITIONAL SERVICE WITHOUT ADDITIONAL EMPLOYEES ◦SPECIALIZED PERSONNEL ◦REDUCED OVERHEAD

PRO’S ◦CONTROL OF COSTS ◦REDUCED CAPITAL EXPENDITURES

CON’S ◦INCREASED INSPECTION NEEDED ◦SCHEDULING & COORDINATION NEEDED ◦INCREASED RESPONSE TIME FOR EMERGENCIES ◦UNION CONTRACTS ◦DISPLACEMENT OF EMPLOYEES

OTHER CONCERNS EMPIRE BUILDING OFFICIALS PUBLIC MISCONCEPTION LACK OF CONTRACTORS

HOW DO I START? ASK QUESTIONS INVENTORY EXISTING SERVICES COST-OUT SERVICES MAKE A WISH LIST

ASK QUESTIONS TALK TO YOUR NEIGHBORS VISIT SUPPLIERS PennDOT MUNICIPAL SERVICES CHECK THE PRIVATE SIDE

INVENTORY ROAD & STREET SERVICES ◦POT HOLE PATCHING ◦SURFACE TREATMENT ◦RESURFACING ◦DRAINAGE FACILITIES ◦ROAD BANK MOWING

MORE INVENTORY ◦TREE & BRUSH TRIMMING ◦STREET SWEEPING ◦SNOW PLOWING ◦SALT & CINDERING ◦________________________

COST-OUT SERVICES CAPITAL EXPENDITURES ◦EQUIPMENT PURCHASES ◦LAND & BUILDING FOR GARAGE or STORAGE

COST-OUT SERVICES OPERATING COSTS ◦EQUIPT. MAINTENANCE ◦FUEL, OIL, etc. ◦INSURANCE  Equipment  Building  Liability. ◦GARAGE MAINT. & UPKEEP

COST-OUT SERVICES LABOR ◦PAYROLL ◦FICA & MEDICARE ◦BENEFITS (Ins., sick days, etc.) ◦VACATION COSTS ◦WORKERS & UNEMPLOYMENT COMPENSATION

CONTRACT TYPES HOURLY RATE LUMP SUM COST-PLUS LEASE PURCHASE UNIT PRICE LIFE-CYCLE

CONTRACT DOCUMENTS ADVERTISEMENT INFORMATION TO BIDDERS SPECIFICATIONS ADDENDA REQUIRED FORMS BONDS SIGNED CONTRACT

JOINT PURCHASING INTERMUNICIPAL COUNTY SCHOOL DISTRICT COG L3P FIRE COMPANY (PETROLEUM) SURPLUS PROPERTY

THANK YOU HAVE A GOOD DAY!!