Advertising and Bidding NOT Required

Purchases exempt from advertising and bidding requirements.

The following types of purchases are exempt from the requirements of Article 3, and should be made in accordance with the provisions set forth below:

Purchases at Least $25,000 and Less than $75,000

The Utility, through its general manager or its Public-Private Partner, should invite sealed quotes from at least three persons known to deal in the lines or classes of materials. In addition, the Utility, through its general manager or its Public-Private Partner, shall notify interested vendors included in the Utility vendor notification list of the availability of material specifications by mail or fax.

Written quotes shall include the following:

  • A non-collusion statement indicating that the bidder has not, nor has any other member, representative, or agent of the firm, company corporation or partnership represented by him, entered into any combination, collusion or agreement with any person relative to the price to be bid by anyone at such letting nor to prevent any person from bidding nor to induce anyone to refrain from bidding, and that the bid is made without reference to any other bid and without any agreement, understanding or combination with any other person in reference to such bidding; and
  • A statement indicating that no person or persons, firms, or corporation has, have or will receive, directly or indirectly, any rebate, fee gift, commission or thing of value on account of such sale.
  • Sealed quotes received by the Utility’s Public-Private Partner shall be opened in the presence of a member of the Utility Board. If satisfactory quotes are received, the purchase may be awarded upon Utility Board approval to the lowest responsible and responsive quote for each line or class of materials required. The Utility may reject all quotes and, if no valid quotes are received for an item, purchase or lease that item on the open market without further invitations or quotes.

Purchases Under $25,000 and Over $500

When the total price of each line or class of materials to be purchased is less than $25,000 and over $500, or the total rental (lease) payments on the lease of materials is less than $25,000 and over $500, the Utility’s administrator or Public-Private Partner should obtain informal verbal quotes, informal written quotes, or three price checks from persons known to deal in that product in addition to all interested vendors included in the Utility vendor notification list. If satisfactory quotes are received, then the purchase should be awarded to the lowest responsible and responsive quote for each line or class of materials required. The Utility may reject all quotes, and if no valid quotes are received for an item, the Utility may purchase or lease that item on the open market without further invitations or quotes.

Purchases Under $500

Purchases less than or equal to $500 do not require a price check.

Emergency Purchases

The Utility general manager or public-private partner, upon declaration of emergency, may purchase or lease materials without giving notice or receiving bids, if reasonable efforts have been made under the circumstances to obtain quotes from two or more people known to deal in the materials required. The declaration of emergency along with the names of those persons invited to quote must be recorded in the minutes.

Special Procurements

The Utility general manager may make, or authorize others to make, special procurements without giving notice or receiving bids under any of the following instances:

  • There exists, under emergency conditions, a threat to public health, welfare, or safety.
  • There exists a unique opportunity to obtain supplies or services at a substantial savings to the Utility
  • The market structure requires the Utility to inspect and bid on the supplies to be procured.
  • The compatibility of equipment, accessories, or replacement parts is a substantial consideration in the procurement and only one (1) source meets the Utility’s necessary requirements.
  • The market structure is based on price but the Utility is able to receive a dollar or percentage discount of that established price.

Service Contracts

Legal Counsel and the Utility Board will approve all service contracts. All service contracts over One Thousand dollars ($1,000.00) must be in written form and reviewed by Legal Counsel before approval from the Utility Board.