18-2117 Adopting Revised Purchasing PolicyCITY OF MERIDIAN RESOLUTION NO. 18-2117
BY THE CITY COUNCIL: BERNT, BORTON, CAVENER,
MILAM, PALMER, LITTLE ROBERTS
A RESOLUTION ADOPTING A REVISED PURCHASING POLICY FOR THE CITY OF
MERIDIAN; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Mayor and City Council have authority over the operations, policies and
procedures of the City of Meridian; and
WHEREAS, on April 18, 2006, the City Council of Meridian adopted a Purchasing Policy for
the City of Meridian and it was updated on March 23, 2010 and again on March 22, 2016.
WHEREAS, the City Council may amend policies from time to time as necessary to
incorporate changes as needed; and
WHEREAS, on October 9, 2018 a revised Purchasing Policy was presented to the Mayor and
City Council.
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE
CITY OF MERIDIAN, IDAHO:
Section 1. That the revised City of Meridian Purchasing Policy be adopted, a copy of which
is attached to this Resolution and incorporated herein by this reference.
Section 2. That this Resolution shall be in full force and effect immediately upon its adoption
and approval.
2018.
ADOPTED by the City Council of the City of Meridian, Idaho, this 16th day of October,
APPROVED by the Mayor of the City of Meridian, Idaho, this 16th day of October, 2018.
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RESOLUTION ADOPTING A REVISED PURCHASING POLICY FOR THE CITY OF MERIDIAN - October, 2018
Purchasing Division
33 E. Broadway Avenue Meridian, ID 83642 Phone 208-489-0416 Fax 208-887-4813
purchasing@meridiancity.org www.meridiancity.org
PURCHASING
POLICY
Approved by City Council
October 16, 2018
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Purchasing Policy – October 2018
Table of Contents
Purchasing Department Responsibilities & Function ................................................................................... 3
Purchasing Categories, Methods and Authority ........................................................................................... 3
I. PURCHASING CATEGORIES ............................................................................................................ 3
II. PURCHASING METHODS ................................................................................................................ 5
III. PURCHASING AUTHORITY ............................................................................................................. 8
IV. PURCHASING ETHICS AND VENDOR RELATIONSHIPS ................................................................... 9
V. APPEALS ...................................................................................................................................... 10
VI. PAYMENT PROCESSING ............................................................................................................... 11
VII. SURPLUS PROPERTY .................................................................................................................... 11
ATTACHMENT “A” ................................................................................................................................... 15
Definitions ........................................................................................................................................... 1 5
ATTACHMENT “B” ................................................................................................................................... 20
Idaho Statutes Regarding Purchasing, Contracting and Purchasing ................................................... 20
Related Statutes and Rules ................................................................................................................. 21
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Purchasing Department Responsibilities & Function
Purpose
This policy establishes a centralized purchasing system for the City of Meridian, the purpose of
which is to establish the rules and processes for purchasing within the City, based on State
code.
Commodities and services purchased in the public sector represent a direct cost to the citizens
and taxpayer. Every purchase that City employees make is subject to public scrutiny. Ethics,
Impartiality, Accountability, Professionalism, Service and Transparency are the values and
guiding principles of public purchasing. The rules, processes and regulations contained in this
policy were developed to encourage competitive solicitations, promote transparency, guard
against collusion and comply with State Statutes.
This Purchasing Policy outlines the requirements for purchasing all goods and services. The
policy addresses a variety of topics which include; Categories, Methods, Authority, Ethics,
appeals, payments, and surplus property.
Purchasing Categories, Methods and Authority
The City of Meridian has assigned the following categories, methods and purchasing authority
for purchases. All employees are to identify which category is right for their respective request
or purchase and follow that policy.
General liability, automotive, and workman’s compensation insurance are required for all
contracts, written or verbal, which require services to be performed on City property. In
addition, most professional services agreements will require professional errors and omissions
insurance. It is each employee’s responsibility to verify that such insurance is in place prior to
the start of work. Only the City’s Risk Manager may waive any insurance requirement.
I. PURCHASING CATEGORIES
The City of Meridian has established the following categories: 1
CATEGORY ONE: Goods, Supplies & Equipment (I.C. §67-2806)
i. Purchases up to $15,000 require one quote.
ii. Purchases $15,001 to $50,000 require three written quotes.
iii. Purchases $50,001 to $100,000 require an informal bid process.
iv. Purchases $100,001 and above require a formal bid process.
1 Information Technology (IT) Purchases: All IT purchases must follow both this policy and the IT
Purchasing Policy.
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CATEGORY TWO: Contracted Services (I.C. §67-2806)
i. Purchases up to $15,000 require one quote.
ii. Purchases $15,001 to $50,000 require three written quotes.
iii. Purchases $50,001 to $100,000 require an informal bid or RFP process.
iv. Purchases $100,001 and above require a formal bid or RFP process.
CATEGORY THREE: Professional Services
i. Sub-category (a) I.C. §67-2320: Engineering, Architect, Construction
Management, Land Surveyors
a. Purchases up to $25,000 require
• A review of consultant’s qualifications, and determination of
Qualification, or
• Selection from a current approved roster.
b. Purchases $25,001 and above require
• A formal RFQ process, or
• Selection from a current approved roster created from a formal RFQ.
ii. Sub-Category (b) I.C. §67-2803(4): Attorney, Accountant etc.
• Purchases in this category are exempt from any solicitation
requirement. All other policy and procedure requirements still apply.
CATEGORY FOUR: Public Works Construction
Purchases in this category have special requirements that must be met regardless of
which department conducts the purchase.
i. All public works contractors performing work on projects above $50,000(I.C.
§54-1903)(i) must have a current Idaho Public Works Contractors License. It is
the responsibility of the employee making the purchase to verify that the
contractor meets this requirement.
ii. Payment and performance bonds are required for all public works construction
projects above $50,000. These bonds shall be 100% of the contract price
individually.
iii. Purchases up to $25,000 require one quote.
iv. Purchases $25,001 to $100,000 require three written quotes.
v. Purchases $100,001 to $200,000 require an informal bid process. (I.C. §67-
2805)(2a)
vi. Purchases of $200,001 and above require a formal bid process.
vii. TAX COMMISSION REQUIREMENTS FOR PUBLIC WORKS CONSTRUCTION
• Within thirty (30) calendar days after City awards a contract to a public works
contractor, the Purchasing Department shall notify the state tax commission
that the contract has been awarded and shall provide to the state tax
commission the name and address of the prime contractor. See I.C. §54-
1904A.
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• If material or equipment is purchased or supplied by the City of Meridian,
who is exempt from sales and use taxes, for subsequent use or installation by
a public works contractor, then the use by the contractor is subject to use
tax. For example, if a contractor has a public works contract to build a
structure using materials owned and supplied by the City, the contractor is
the consumer of the materials and is subject to a use tax on their value. This
tax falls directly upon the contractor and not the owner of the property. See
Idaho Administrative Rules 35.01.02.12
CATEGORY FIVE: Specialized Repair
Purchases in this category are exempt from solicitation requirement.
II. PURCHASING METHODS
A. QUOTE
Quotes may be obtained either verbally or written and must contain the following:
i. Description of the goods or services requested
ii. All costs including delivery to the end users location
iii. Any vendor terms and conditions
B. INVITATION FOR BID (Bid)
Invitation for Bids shall only be issued by the Purchasing Department in one of two forms,
Informal and Formal. If the event of a tie bid, the City may award to the bidder it chooses.
i. Informal bid requirements
a. be open for a minimum of three days
b. Must be sent to a minimum of three vendors.
c. Be awarded to the bidder submitting the lowest responsive bid. (goods and
services) or
d. Be awarded to the qualified bidder submitting the lowest responsive bid.
(construction)
ii. Formal bid requirements
a. Advertised in the local paper two times with the last at least 7 days prior to
the opening.
b. Be open for a minimum of 14 days
c. Bids must be submitted sealed.
d. A public bid opening shall take place
e. Be awarded to the bidder submitting the lowest responsive bid. (goods and
services)
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f. Be awarded to the qualified bidder submitting the lowest responsive bid.
(construction)
C. REQUEST FOR PROPOSAL (RFP)
Request for Proposal’s may be used for general services or complex purchases i.e.
software, specialized equipment, leases etc.
i. Request for Proposal requirements
a. Describe what the product or service or solution is to accomplish.
b. Provide evaluation criteria of how the solicitation will be awarded.
c. City Project Manager shall select the evaluation team.
d. Shall be awarded to the highest ranked proposer as ranked by the evaluation
team.
e. Final terms and conditions, including cost, may be negotiated.
D. REQUEST FOR QUALIFICATIONS (RFQ)
Request for Qualifications must be used for the selection of Engineers, Architects,
Construction managers and Land Surveyors (I.C. §67-2320). RFQ’s may also be used for
other types of professionals services, i.e. accountant, attorney, auditor etc. Please contact
Purchasing for applicability.
i. Request for Qualification requirements
a. Describe the services required.
b. Provide evaluation criteria of how the solicitation will be awarded.
c. City Project Manager shall select the evaluation team.
d. Cost may NOT be a factor in the evaluation process.
e. Shall be awarded to the highest qualified firm/individual as ranked by the
evaluation team.
f. Final terms and conditions, scope of work and cost shall be negotiated.
E. PRE-QUALIFICATION
The City may require Public Works Contractors to be pre-qualified for a particular project
(I.C. §67-2805)(3)(b).
i. Pre-Qualification Requirements
a. Advertise the Pre-Qualification in the local paper two times with the last
publication at least 7 days prior to the qualification due date.
b. Describe the construction services to be performed.
c. Provide evaluation criteria of how contractors will be evaluated.
d. City Project Manager shall select the evaluation team.
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e. Only Contractors selected through the Pre-Qualification process will be
allowed to bid on the construction project. All other bids received will be
deemed non-responsive.
F. LEASES
i. All leases must be processed through the Purchasing Division regardless of dollar
amount.
ii. Capital leases must be appropriated and expensed for the full amount the first
year of the lease.
G. COOPERATIVE BIDDING
i. The Department may use the established state, federal, city, or county contracts to
make purchases. The Division of Purchasing contract information is located at:
http://purchasing.idaho.gov/statewide_contracts.html
ii. In accordance with I.C. §67-2803(1) and §67-2807(1), the City may also piggyback on
other city or county bids if the pricing is consistent with the original bid and the bid
process followed I.C. Title 67. All bid documentation should accompany the purchase
request.
H. EMERGENCY PURCHASE
Emergency purchases may be completed without the requirement of a solicitation (I.C. §67-
2808)(1). All other policy and process requirements still apply.
i. Emergency Purchase Requirements
• The emergency purchase is necessary to safeguard life, health or property.
• The City Council must declare that an emergency exists within 60 days of the
emergency event.
I. SOLE SOURCE PURCHASES
Sole Source purchases must be pre-approved by City Council and are exempt from
solicitation requirements. All other purchasing policy and process requirements still apply.
Sole source purchases must be advertised in the local paper 14 calendar days PRIOR to
making the purchase.
i. Sole Source Purchase Requirements(I.C. §67-2808)(2)
a. Only one source reasonably available and one of the following apply:
i. Compatibility of equipment, components, accessories, computer
software, replacement parts or service is the paramount
consideration;
ii. Where a sole supplier's item is needed for trial use or testing;
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iii. The purchase of mass-produced movies, videos, books or other
copyrighted materials;
iv. The purchase of public works construction, services or personal
property for which it is determined there is no functional equivalent;
v. The purchase of products, merchandise or trademarked goods for
resale at a political subdivision facility;
vi. Where competitive solicitation is impractical, disadvantageous or
unreasonable under the circumstances.
III. PURCHASING AUTHORITY
By adoption of this Policy, the City Council has set the following signatory thresholds for
purchases through the Purchasing Department. Through adoption of this Policy the Mayor
has delegated signing authority for purchases made per this policy:
A. PURCHASES UP TO $10,000
Purchase Orders and Contracts in this range may be signed by any Department Director
or Authorized City Personnel. All City Departments Directors are required to insure all
employees have read the Purchasing Policy prior to delegating signing authority for
purchases in this range. The employee is responsible for verifying that there are funds
available for the purchase and for obtaining all required documentation, i.e. insurance,
licenses etc., for the applicable purchasing category. The employee is responsible for
obtaining the City Attorney’s approval of any contract the employee is signing.
B. PURCHASES ABOVE $10,000
Purchase Orders and contracts above $10,000 must be signed by either the Purchasing
Manager, the Mayor or their respective designees, prior to the purchase . The Chief
Financial Officer will stand as the signatory in the absence of the Purchasing Manager.
C. PURCHASE ORDERS AND CONTRACTS ABOVE $50,000
All purchase orders and contracts in this range require legal review and City Council
approval.
D. CHANGE ORDERS
Employees may create change orders. All change orders must utilize the standard City
form and be signed by the Purchasing Manager. The Purchasing Manager shall
determine if specific change orders require Council approval. Employees are to contact
the Purchasing Manager prior to issuing a change order.
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E. CREDIT CARD USAGE
This policy states the minimum guidelines required by the City of Meridian Credit Card
Policy 6.2.5 and by law. Individual departments may establish more restrictive
guidelines for usage. Credit card purchases must comply with the Purchasing Policy
requirements stated above.
IV. PURCHASING ETHICS AND VENDOR RELATIONSHIPS
Every City employee has a personal responsibility to conduct government business in an
ethical manner and assure the integrity of the City purchasing and purchasing processes.
All City employees and elected officials are responsible for adherence to City and State
purchasing rules, and regulations.
A. CODE OF ETHICS
All City of Meridian employees responsible for procuring goods or services shall:
i. Follow the rules and regulations of the City of Meridian Standards of Conduct
Policy 7.5 and the laws of the State of Idaho.
ii. Avoid activities that would compromise or give the perception of compromising
the best interests of the City. (ref. HR Conflict of Interest Policy 6.18)
iii. Reduce the potential for any charges of preferential treatment by actively
promoting the concept of competition.
iv. Act as good custodians of public money by obtaining maximum benefit for funds
spent.
v. All employees are required to comply with the City’s HR Policy 6.11 in regards to
gifts and gratuities. In addition to HR Policy 6.11 employees in a position to
make or recommend an award of a City purchase shall not solicit or accept gifts,
money, prejudicial discounts or entertainment material which might influence or
appear to influence purchasing decisions.
B. VENDOR RELATIONSHIPS
Developing and maintaining good relationships with our suppliers is important. City
personnel should work through the Purchasing Department for vendor communication.
Maintain and practice, to the highest degree possible, business ethics, professional
courtesy, and competence in all transactions. Adhere to and protect the supplier’s
business and legal rights to confidentiality for trade secrets, and other proprietary
information.
C. LOYALTY AWARDS (GIFT CARDS) AND GIFTS
Employees are prohibited from personally accepting loyalty/gift cards and/or gifts from
vendors for making purchases on behalf of or in any capacity for the City. The City, and
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not the employee, is being rewarded for its faithful business. Therefore, employees are
to ask for discounts on the purchase being made in lieu of gift cards.
D. PROHIBITIONS
The City has adopted the following state statutes in regard to purchasing prohibitions:
i. I.C. §67-5726 – Conflict of interest regarding the holding of contracts or selling to
the City property or supplies by City employees unless award is made after
competitive bids per HR Policy 6.18.
ii. I.C. §67-5726 – Prohibition regarding the influencing or conspiring to influence
public purchasing decisions and contract awards. Attempts at influence may
include kickbacks and bribes, peddling or payment of a fee, back door selling,
hard-sell tactics, fraternization, or offering gifts to avoid following published
procedures or gain advantages.
iii. I.C. §67-5726 – Circumventing Purchasing Authorization – Prohibits efforts by
employees to obtain products or services by avoiding the competitive process by
splitting purchases or creating false emergency situations.
iv. I.C. §67-5726 – No vendor or related party, or subsidiary, or affiliate of a vendor
may submit a bid to obtain a contract to provide property to the City, if the
vendor or related party, or affiliate or subsidiary was paid for services utilized in
preparing the bid specifications or if the services influenced the procurement
process.
V. APPEALS
The City of Meridian strives for a fair, legal and transparent solicitation process. Any
bidder, proposer or vendor who believes they were aggrieved in connection with a
solicitation or award may appeal to the Purchasing Manager. The solicitation appeals are as
follows:
i. Specification Appeal
a. Informal Solicitation – A bidder/proposer must submit an appeal to the
City Clerk at least one (1) day prior to the due date and time of the
solicitation.
b. Formal Solicitation – A bidder/proposer must submit an appeal to the
City Clerk no later than three (3) days prior to the due date and time of
the solicitation.
ii. Appeal of Award
a. Formal Solicitation – A bidder/proposer must submit an appeal to the
City Clerk within seven (7) calendar days of the transmittal of the Notice
of Intent to Award, stating the express reason(s) the bidder feels that the
award decision is in error.
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VI. PAYMENT PROCESSING
The City must maintain control over the disbursement of its funds by requiring proper
approval and consistent application of procedures for payment transactions. This policy
seeks to promote fiscal control, timely and accurate disbursement of funds for external
purchases and employee reimbursements, and compliance with state and federal
regulations.
The Accounts Payable function, within the Finance Department under the direction of the
Chief Financial Officer, is responsible for overseeing the payment process for the City,
including oversight of appropriate payment method, the approval process and
disbursement controls.
Prior to disbursement of funds the Finance Department requires all payment requests to be
approved by Mayor, Directors or authorized designee. The Mayor, Director or authorized
designee approval assures the following conditions have been met:
i. The payment request (invoice, check request, receipt, etc.) must be a valid
business purpose.
ii. Goods or services must have been procured in accordance with the City
purchasing policy
iii. Goods or services have been received to the satisfaction of the requester
iv. The amount to pay reflects the negotiated amount per the purchase order,
contract/agreement or verbal agreement.
Payments for goods and services are made payable only to the provider of those goods or
services (or to a contractually named agent).
VII. SURPLUS PROPERTY
Personal Property
It is the policy of the City to dispose of surplus personal property in the manner that
maximizes value received by the City and/or attendant benefits to the community in
accordance with the requirements below:
ANY FIXED ASSESTS THAT IS TO BE DISPOSED OR SOLD WITHOUT PUBLIC NOTICE, PUBLIC
SALE OR AT AUCTION MUST BE AUTHORIZED BY CITY COUNCIL RESOLUTION PRIOR TO
DISPOSAL OR SALE.
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A. CATEGORIES OF DISPOSAL
i. Category A – Items with an original purchase price less than $2,000
a. All methods of disposal apply.
ii. Category B – Items with an original purchase price between $2,000 and $9,999
a. All methods of disposal apply.
iii. Category C – items with an original purchase price of $10,000 and above.
a. All methods of disposal apply except 1(b).
B. METHODS OF DISPOSAL
i. Method 1 – Sell
a. Sell to a state or public agency (city, school district, fire district, irrigation
district, etc.) or charitable organization (501)(c)(3) and 501(c)(19).
b. Sell to the highest bidder of a public sale, Public Auction or electronic
auctioning via the internet after advertisement of public sale for a
minimum of 14 calendar days prior to the sale.
c. Sell to the highest bidder of a public sale, Public Auction or electronic
auctioning via the internet after advertisement of public sale for a
minimum of 30 calendar days prior to the sale..
ii. Method 2 – Transfer
a. Transfer to another state or local agency
b. Transfer to a charitable organization (501)(c)(3) and 501(c)(19) or to any
other entity operating a program within the City, where such transfer
renders a benefit to the City of Meridian and its citizens.
iii. Method 3 – Trade in
a. Surplus property may be traded in for the acquisitions of the same or
similar property
i. Surplus property may be included as partial payment in bids for
the same or similar property. The bid shall include a full
description of the property to be traded in and allow time for
bidders to examine the property. The bid shall be awarded on the
basis of net cost to the City.
ii. Accounting principles require the trade in value to be allocated as
revenue and the Gross cost of the property will be allocated to
the expense account.
iv. Method 4 – Recycle
a. Recycle if property is not to be sold, transferred or discarded.
v. Method 5 - Discard
a. If none of the above disposal options are feasible, the City may discard,
recycle, or sell for salvage such surplus property.
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C. EXCEPTIONS
1. Police Canines . Due to the unique nature of police K9 service dogs, the transfer
of ownership is exempt from the bid and/or auction requirement. The City
Council may approve the removal of a police canine from active duty, and
authorize transfer of ownership to a qualified handler, or sale to a qualified law
enforcement agency, whichever is appropriate under the circumstances,
pursuant to the recommendation of the Chief of Police, following the Resolution
Disposal Process.
2. Guns . The Chief of Police may dispose of City-owned guns that are of no further
use to the City (or the value of which would be maximized by trade-in for an
upgrade) by exchanging the old gun in part payment for a new gun through a
dealer holding a valid Federal Firearms License (“FFL”), following the Auction/Bid
Disposal Process; or by selling to old gun to a dealer holding a valid FFL, following
the Auction/Bid Disposal Process.
3. Computers . Only the Information Technology Division (IT) may dispose of
computers. IT shall follow the requirements above for disposal.
4. Cell Phones . Only the Finance Department may dispose of cell phones. The
Purchasing Manager may dispose of City-owned cell phones, that are of no
further use to the City, through a cell phone recycler.
5. Abandoned Property (I.C. §55-403). Abandoned property shall not be
considered surplus City property. It must be disposed of by the method
described in the applicable state statute(s).
Real Property (I.C. §50-1401 - 1408).
Real property may only be sold, exchanged or conveyed with the prior approval of City
Council. The following requirements apply to the sale (by public auction), exchange or
conveyance of real property:
• City Council shall declare a the value or minimum price, if any, it intends to receive
as a result of such conveyance or exchange or an explanation of an intended
exchange or conveyance for other than monetary consideration. The city council
may also declare that the subject property will be offered for sale without
establishing a minimum price.
• The clerk of the city shall publish a summary of the action taken by the city council
in the official newspaper of the city. Notice of the public hearing concerning the
proposed exchange or conveyance shall be published in the official newspaper of
the city at least fourteen (14) days prior to the date of the hearing.
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Sale of real property shall be accomplished by public auction preceding a public meeting
declaring the dollar value of said real property or stating that the subject property will be
offered without establishing a minimum price.
Exchange or conveyance of real property shall take place preceding a public meeting stating
an explanation of the exchange or conveyance of real property.
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ATTACHMENT “A”
Definitions
Appeal: An objection to a specification, process, procedure or award.
Award: The City's acceptance and approval of a bid or proposal.
Bid: A competitive price offer submitted by a prospective vendor in response to a formal
or informal invitation issued by the City.
Bid Documents - Formal and Semi-Formal: A set of documents, made available to
bidders that may include an invitation to bid, instructions to bidders, bid form, general
conditions, supplemental general conditions, special provisions, technical specifications,
drawings, or other information necessary to adequately convey the characteristics of the
item or service being sought.
Change Order (CO): A written alteration that is issued to modify a Contract or Purchase
Order. A bilateral request that directs the Contractor to make changes to the contracted
Scope of Work or Specifications. The modification may include time and/or costs changes.
In reference to construction contracts, it relates primarily to changes caused by
unanticipated conditions encountered during construction not covered by the drawings,
plans, or Specifications of the project .
Consultant: A person or firm that possesses unique qualifications that allow them to
perform specialized advisory services usually for a fee. Serves in an advisory capacity.
Contract: Contract types include, Professional Services Agreements, Master Agreements,
Task Orders, Contracted Services Agreements and Purchase Orders.
Contracted Services: Janitorial services, landscape services etc.
Contractor: An individual or firm who has been awarded a contract to provide goods
and/or services to the City.
Emergency Purchase: A purchase made without a solicitation to safeguard life, health or
property in response to a disaster, public calamity, or other unforeseen situation.
Emergency purchases MUST be approved by Council.
Idaho Code (I.C.): Legal code of Idaho found in the Idaho State Statutes. (This policy
refers to several Idaho Statutes. See Appendix A for a list of all statutes that impact public
purchasing).
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Notice of Intent to Award: A formal notice sent to the respondents to a bid or RFP stating
the low bidder/highest ranked proposer and the City’s intent to enter into contract with
the successful bidder/proposer.
Payment Bond: A financial or contractual instrument, issued by a surety that guarantees
that subcontractors and material providers to contractors will be paid for labor and
materials expended by the subcontractor. Acceptable forms of payment bonds may
include cashier's check, certified check, or a surety bond. Also known as Labor and
Materials Bond.
Performance Bond: An instrument executed, subsequent to award, by a successful
bidder that protects the public entity from loss due to the bidder’s inability to complete
the contract as agreed.
Piggyback: A form of intergovernmental cooperative purchasing in which an entity will
extend the pricing and terms of a contract entered into by a separate entity
Project Manager (PM): The City employee responsible for a purchasing of goods,
services, equipment or a construction project. They are accountable for accomplishing
the stated project objectives and have the responsibility of the planning, execution, and
closing of a project, including processing of payment requests.
Professional Services: Services rendered by members of a recognized profession or a
person possessing a special skill. Such Professional Services are generally acquired to
obtain information, advice, training, or direct assistance. This includes but is not limited
to accounting and auditing, legal, education, engineering, architecture, construction
management and research.
Proposal: A document submitted by a firm or individual in response to a Request for
Proposals (RFP).
Proposer: A person or entity who submits a proposal in response to a Request for
Proposals (RFP).
Public Purchasing: The purchasing or purchasing of an item or a service for a Public Entity
using public funds.
Public Works Construction: Public works construction includes any or all of the following
branches:
(i) Heavy construction, which is defined as constructing substantially in its entirety any
fixed works and structures (not including "building construction"), without limitation, for
any or all of the following divisions of subjects: irrigation, drainage, sanitation, sewage,
water power, water supply, reservoirs, flood control, reclamation, inland waterways,
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railroads, grade separations, track elevation, elevated highways, hydroelectric
developments, aqueducts, transmission lines, duct lines, pipelines, locks, dams, dikes,
levees, revetments, channels, channel cutoffs, intakes, drainage, excavation and disposal
of earth and rocks, foundations, piers, abutments, retaining walls, viaducts, shafts,
tunnels, airports, air bases and airways, and other facilities incidental to the same;
(ii) Highway construction, which is defined as all work included in highway construction
contracts, including, without limitation, highways, roads, streets, bridges, tunnels, sewer
and street grading, street paving, curb setting, surfacing and other facilities incidental to
any of the same;
(iii) Building construction, which is defined as all work in connection with any structure
now built, being built, or hereafter built, for the support, shelter and enclosure of persons,
chattels, personal and movable property of any kind, requiring in its construction the use
of more than two (2) unrelated building trades or crafts.
(iv) Specialty construction, which is defined as any work in connection with any public
works construction, requiring special skill and the use of specially skilled trades or crafts.
Statute and this policy cover any construction, repair or reconstruction of any public work
(including, but not limited to, buildings, pipelines, irrigation, drainage facilities, curbing,
and numerous “specialty construction” types of work). See I.C. §54-1901 for further
definition and types of work subject to the requirements of this policy.
Purchasing: The process of ordering and receiving goods and services. A subset of the
wider purchasing process.
Purchasing Manager: The professional within the City who is responsible for procuring or
approving the acquisition of goods and services needed by the company. A Purchasing
Manager oversees the acquisition of materials needed for production, general supplies for
offices and facilities, equipment, or construction contracts.
Purchase Order (PO): A short form of contract. PO includes goods and services to be
purchased, amount and payment terms.
Qualified Bidder : A bidder, determined by the Purchasing Division, that
a) meets the minimum standards of business competence, reputation, financial
ability, and product quality for placement on the bidders List, and/or
b) has met the requirements of a solicitation.
Request for Proposal (RFP): A method for acquiring services, equipment and supplies
that permits the negotiation of all terms, including scope and price, prior to the award.
RFP’s are typically utilized where the need is known but the solution is not. An RFP
describes a problem or need in general terms and seeks a written proposal. RFP’s are
evaluated and awarded on criteria listed in the solicitation. Price is often one of the
evaluation factors, however it is typically not the predominate basis for contract award.
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Purchasing Policy – October 2018
Request for Qualification(RFQ): A Request for Qualification is a form of solicitation used
to obtain statements of qualifications for professional services. The basis for award shall
be established in the solicitation. RFQ’s may not consider pricing in the evaluation and
award of solicitations.
Responsive Bidder: A contractor, business entity, or individual who has submitted a bid
or proposal that fully conforms in all material respects to the Invitation for Bids
(IFB)/Request for Proposals (RFP) and all of its requirements, including all form and
substance.
Scope of Work/Services: A detailed, written description of the requirements for a
procurement contained within an Invitation for Bids or Request for Proposals and/or
contract. The scope of work should establish a clear understanding of what the City
requires.
Specialized Repair: Specialized repair refers to repair of rolling stock (vehicles, trailers
and equipment) where the repairs cannot be determined without tearing down the
vehicle/equipment.
Specification: A precise description of the physical characteristics, quality, or desired
outcomes of good or services to be procured, which a supplier must be able to produce or
deliver for consideration of award of a contract. Specifications are written not to restrict
bidding but to encourage open competition. The goal is to attract maximum reasonable
competition.
Statement of Work (SOW): Describes the work necessary to complete the required
tasks. Used most commonly to procure services.
Statutes: The written laws approved by legislatures, also known as legislation.
Surety: A pledge or guarantee by an insurance company, bank, individual, or corporation
on behalf of the bidder/proposer that protects against default or failure of the contracted
bidder/proposer to satisfy the contractual obligations.
Surplus Property: Personal property owned by the City that is of no further use to the
City, obsolete and/or where the cost of maintenance, transportation, storage, or other
costs exceed the economic or useful life of the property.
Terms and Conditions: Standard boilerplate language that includes standard clauses and
rules that apply to bids and proposals formally solicited that may become incorporated
into the final contract.
Transparency: In an ethical context, the idea that the more information disclosed about a
business, financial, or economic activity, the better. Transparency improves ethical
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Purchasing Policy – October 2018
conduct. Maximum disclosure is for the betterment of the public and will help to
discourage more regulation.
Use Tax: A tax imposed on contractors when they install City owned and/or pre-
purchased goods, materials or equipment.
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Purchasing Policy – October 2018
ATTACHMENT “B”
Idaho Statutes Regarding Purchasing, Contracting and Purchasing
Public Works Contractor Licensure Requirements
I.C. §54-1903 (i)
Exemptions to Public Works Contractor Licensure
I.C. §54-1903 (i) & (k)
Filing of Notices and Income Tax Returns -- Payment of Income Taxes by Contractors
I.C. §54-1904A
Public Works Construction Bidding
I.C. §67-2803 (2) & (3)
Public Purchasing of Goods and Services Bidding
I.C. §67-2803 (2)
I.C. §67-2805 (2) & (3)
Purchasing By Political Subdivisions
I.C. Title 67, Chapter 28
Exemptions to Public Purchasing of Goods and Services Bidding
I.C. §67-2803 (1) through (7)
I.C. §67-2806
I.C. §67-2808 (1)
Joint Purchasing Program
I.C. §67-2807 (1)
Penalties – Political Subdivisions/Public Officials
I.C. §54-1914 (2)
I.C. §54-1920 (2)
I.C. §59-1026
Penalties – Contractors
I.C. §54-1914 (1)
I.C. §54-1920 (1) & (3)
Prohibitions
I.C. §67-5726
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Professional Service Contracts with Design Professionals, Construction Managers and
Professional Land Surveyors
I.C. §67-2320
Disposal of Surplus
I.C. Title 50, Chapter 14
Abandoned or Unclaimed Property in Possession of Sheriff or City Police Department -- Sale at
Public Auction.
I.C. §55-403
Written Plans and Specifications for Work To Be Mande by Officials – Availability
I.C. §67-2309
Leases
I.C. §50-1409
Related Statutes and Rules
Public Works Contractors
I.C. Title 54, Chapter 19
IDAHO ADMINISTRATION RULES
Idaho Sales and Use Tax Administrative Rules – Contractors
35.01.02.12
STATE OF IDAHO BOARD OF EXAMINERS
State Personal Surplus Property Policy and Procedures
Policy No. 442-40
Meridian City Council Meeting Agenda October 16, 2018 – Page 259 of 419