1. EXCEPTIONS TO COMPETITVE BIDDING

2. 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…”

3. 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

4. Is Bidding Required? Purchase contracts in excess of $10,000
Contracts for public work in excess of $20,000

5. 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

6. 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

7. 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

8. 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

9. Sole Source Procurement
Very limited exception
Available from one source only
Product/service uniquely required in public interest
No substantial equivalent

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

11. 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

12. Professional Services
In general, specialized skills, training, expertise
Professional judgment or discretion
High degree of creativity

13. 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

14. 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

15. 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

16. Preferred Sources State Finance Law §162
CORCRAFT
Agencies for the blind
Programs serving mentally ill
Agencies for severely disabled
Veterans’ workshops

17. Procurement Policies and Procedures
GML §104-b
Written internal policies and procedures
Applies to all procurements not subject to competitive bidding

18. Procurement Policies and Procedures
Determine if bidding applies/document action
Alternative proposals/quotes – how obtained
When to use each method
Documentation

19. 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

20. Requests for Proposals
Generally—a 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

21. RFPs (continued)
May be used if procurement is within exception to CB and permitted under muny’s procurement policies
Most commonly used for professional services, true leases and licenses/concessions

22. 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