Exhibit E - City of Durango_s 2025 Purchasing Policy.pdf

PURCHASING POLICY

Purpose This Policy aims to establish policies and procedures for transactions made with City funds or funds for which City oversight or accounting is required. It provides for the fair and equitable treatment of all people involved in public purchasing by the City. This policy maximizes the purchasing value of public funds, provides safeguards for ethical principles, maintains a purchasing system of quality and integrity, and provides a reference for cross-training and training new personnel.

Scope This Policy applies to all departments and City employees who are purchasing goods or services for the City's operations. All team members are responsible for knowing the topics covered here and who carries out each task.

This Policy applies to all Offices, Departments, and individuals for purchasing goods and services for City use or for which City oversight or accounting is required. All organizations under the scope of this policy are referred to as “customer departments” within the policy.

RESPONSIBILITY: The Financial Services Department shall assist all customer departments with the procurement of goods and services needed in the appropriate quality and quantity, of the greatest value, on a timely basis, using socially responsible and ethical methods. Elected Officials and Directors are responsible for determining what goods or services are acquired to carry out City functions within their approved budgets. They shall ensure Departmental Compliance with this Policy.

Strategic Plan Achievement This Policy aligns with the Organizational Stewardship objective within the City of Durango 2024 Strategic Plan. It ensures that the City is doing its due diligence to achieve financial sustainability by ensuring fair and proper procurement.

City of Durango Purchasing Policy 2 Effective 2/19/2025

Table of Contents Purpose

Scope

Strategic Plan Achievement

Duties of the Purchasing Staff

Funding of Purchases

Purchasing Dollar Thresholds

Types of Purchases

A. SMALL PURCHASES ($0.01 - $5,000)

B. SOLICITATIONS (Quotes, Bids, Proposals)

1. INFORMAL SOLICITATIONS ($5,000.01 - $50,000); 3 Written Quotes, or Requests For Quotes:

2. FORMAL SOLICITATIONS (greater than $50,000; Bid, RFP)

3. ON CALL ARCHITECTURE/ENGINEERING

C. EVALUATION OF RESPONSES

Best and Final Offer (BAFO)

D. DEVELOPING SPECIFICATIONS FOR A QUOTE, BID, RFP OR Request for Qualification:

E. BOND REQUIREMENTS:

F. CONTRACTS:

1. Contract Execution

2. Change Order Contract Modifications

G. CONFLICT OF INTEREST:

H. WAIVERS of the PURCHASING PROCESS:

I. SOLE SOURCE (greater than $5,000)

J. INSURANCE REQUIREMENTS:

K. LOCAL PREFERENCE:

L. DEBARRED or SUSPENDED VENDORS:

M. EQUIPMENT LEASING AND LEASE PURCHASES:

N. WITHHOLDING PAYMENT:

O. CONSIDERATION OF COMMUNITY/NATURAL RESOURCE IMPACTS:

Disposal of City Personal Property (Surplus)

Piggybacking & Cooperative Purchasing COOPERATIVE PURCHASING

A. PIGGYBACKING

City of Durango Purchasing Policy 3 Effective 2/19/2025

B. COOPERATIVE PURCHASING

Vendor Protest Policy

A. WHEN TO FILE

B. PROCESS

C. DECISION

D. WITHHOLDING OF AWARD

Grants

Disaster Related Procurement

Requisitions and Purchase Orders

A. REQUISITION for a STANDARD PURCHASE ORDER:

B. PURCHASE ORDERS:

C. PURCHASING EXCEPTIONS THAT REQUIRE A PURCHASE ORDER:

D. BLANKET PURCHASE ORDERS:

Purchases Made Outside Policy

Exceptions List

Year-End Information

Records Retention

Vendor Responsibilities

City of Durango Purchasing Policy 4 Effective 2/19/2025

Duties of the Purchasing Staff

1. Develop City purchasing policies, programs, and procedures for negotiating and acquiring goods and services.

2. Obtain open, equal, and unrestricted competitive pricing as possible for all purchases of goods and services.

3. Procure for the City, at the greatest economic advantage, all requested goods and services of the highest quality needed to accomplish the function or service required reliably.

4. Encourage the purchasing of goods and services that are environmentally friendly to achieve our strategic goal.

5. Consolidate purchases of like or everyday items, when possible, to obtain the maximum economic benefits, and eliminate high cost, convenience Purchasing.

6. Require vendors to fulfill all terms and conditions of contracts and purchase orders and negotiate the terms and conditions when required.

7. Secure all applicable federal, state, and local tax exemptions on purchases or contracts made through the Financial Services Department.

8. Know the source and availability of needed goods and services, aid customer departments in drafting applicable specifications, consolidate requirements to obtain volume prices when able, and expedite ordering and delivery.

9. Purchasing will assist in the IFB, RFP, RFQ process with all the departments in procuring the best cost best product for that department’s needs. With RFPs the purchasing department will coordinate the review of submitted responses, communication, scheduling, etc., to support compliance with this Policy.

Funding of Purchases The City Council of any City shall make no contract, and no liability against the City shall be created by any officers of the City, whether the City Council has ordered the object of the expenditure or not unless an appropriation shall have been previously made concerning such expense. Each member of the City Council and other officers of the City who undertake to create any liability against the City, except such as they are by statute required to do, shall be personally liable and, together with the sureties upon their official bonds, shall be held for such indebtedness”. Therefore, no customer department shall make any purchase without verifying that funding is available.

City of Durango Purchasing Policy 5 Effective 2/19/2025

Purchasing Dollar Thresholds The table below provides the Purchasing Dollar Thresholds, further outlined in the next section.

Requirement Normal Daily Operations 1st 60 days* following a Local Disaster Declaration**

(Applies only to purchases directly related to the locally declared disaster, and must follow the Uniform Grant Guidance)

Small Purchases $0.01 - $5,000 $0.01 - $10,000

Informal Solicitation $5,000.01 - $50,000 $10,000.01 - $250,000

Formal Solicitation $50,000.01 and above $250,000.01 and above

*Or another period as designated by the City Council **NOTE: The 'Local Disaster Declaration' column will apply ONLY to purchases directly related to the declared disaster by the City Manager’s office. Purchases not directly related to the disaster must follow the purchasing policy.

Types of Purchases

A. SMALL PURCHASES ($0.01 - $5,000)

Transactions for goods and services costing $5,000.00 or less and do not require either quote. Except as noted below, customer departments shall have the authority to make small purchases without the prior authorization of the Financial Services Department.

1. No purchase shall be subdivided into more than one invoice or more than one separate charge and paid for either on a Commercial Card or by any other method to avoid the $5,000 threshold.

2. City funds may not be used to purchase alcoholic beverages.

3. The Purchasing Department is responsible for verifying the vendor’s insurance and business license is up to date for invoice processing.

4. The managing department will be responsible for processing vendor reimbursements during the project.

5. The Financial Services Department expects these purchases to be made with a City of Durango

Commercial Card or Invoice payment form unless the vendor requires a Purchase Order. It is the department's discretion to use the most cost-effective payment method, i.e., commercial card processing fees vs. the City’s soft cost of $7.78 for cutting a check through Accounts payable for all approvals and processing.

6. Although quotes are not required for small purchases, it is recommended that quotes be obtained to ensure the City is garnering the best price possible.

7. The person completing the acquisition shall use professional judgment to ensure the City receives maximum value.

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B. SOLICITATIONS (Quotes, Bids, Proposals) There are two types of Solicitations; Informal (not formally advertised to the public) and Formal (announced officially to the public), described below.

1. INFORMAL SOLICITATIONS ($5,000.01 - $50,000); 3 Written Quotes, or Requests For Quotes:

Informal Solicitations' are transactions for goods and services in which the total dollar value ranges between $5,000.01 and $50,000. These purchases require THREE (3) WRITTEN QUOTES, which should be accomplished by the customer department. If assistance is needed, contact the Financial Services Department. Note: Unless not required based upon the Federal funding type or Federal funding source, if any portion of the purchase is Federally funded, Purchasing must perform a Request for Quotation on behalf of the customer department, as there are specific procurement rules which must be followed, per Title 2 Code of Federal Regulations – Uniform Guidance for Federal Awards.

a. At least three (3) written quotes from three (3) separate and unaffiliated vendors should be sought and documented to foster fair and open competition. When obtaining quotes from a temporary Employment Agency, at least (3) quotes from different agencies will be sufficient for spending up to $50,000 in any 12 months. Should you need to spend more than $50,000 on one (1) temporary employee within 12 months, contact the Finance Department for further information.

b. Each quote should include the following.

1. Name of vendor

2. Quotation number

3. Vendor representative providing the quotation

4. Vendor’s telephone number

5. Name of City representative who requested a quotation

6. Delivery and Freight-on-Board (FOB) information, if applicable

7. Hourly rate, if applicable

c. If the customer department elects to seek three (3) written quotes, they are responsible for obtaining the standard insurance and business license that are required for Purchasing.

d. Quotes should be for “like” items (same OR comparable make, model, services, etc.) AKA apples to apples quote.

e. The customer department must attach all quotes to the requisition for backup.

f. If the customer department chooses to award to a vendor that provided a quote that is not the lowest in price, they shall give a detailed, reasonable explanation of the valid business reasons why. It is up to the discretion of the Purchasing Staff to determine if the reasons are sufficient or if more information is needed. This Sole Source Justification document will be signed off by the purchasing agent after review and acceptance.

g. If between $5,000.01 - $50,000 is spent on goods and services, either to the same or separate vendors, within a 6 (six-month period), the department may purchase from the vendor if the cost is the same as initially quoted. Otherwise, an informal solicitation of (three (3) quotes or IFB, RFP or Request for Quote) must be completed.

2. FORMAL SOLICITATIONS (greater than $50,000; Bid, RFP) "Formal Solicitations" are transactions for goods and services with a total dollar value of $50,000.01 or more during a 12-month period. These purchases must be processed through the Financial Services Department as either an Invitation for Bid (IFB, Bid) or a Request for Proposal (RFP, Proposal). Requests for Information (RFI) are also detailed in this section.

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All Formal Solicitations shall specifically target Disadvantaged Business Enterprise (DBE) and/or Small Business Administration (SBA) vendors unless otherwise authorized.

a. Invitation to Bid (Bid):

1. Shall be publicly advertised for at least 14 days (unless otherwise authorized by the Purchasing

Staff).

2. Shall be publicly opened and read aloud in the presence of one (1) or more witnesses if requested by the vendor.

3. Shall be evaluated upon the required specifications and qualifications.

4. Shall be awarded based on the most responsive, responsible, reasonable, and lowest-priced bid deemed most advantageous to the City and meeting all specifications and qualifications identified in the Bid.

5. Shall result in a contract, insurance requirements, and bonding.

b. Request for Proposal (RFP), also known as a “Proposal”:

1. Shall be publicly advertised for a minimum of four (4) weeks (unless otherwise authorized by the Purchasing Staff).

2. Shall be evaluated by an Evaluation Committee (as selected by the customer department) based on the Evaluation Criteria provided in the RFP.

3. The most responsible, responsive, and reasonable proposal will be awarded, deemed most advantageous to City.

c. Request for Information (RFI):

1. Shall be publicly advertised for a minimum of three (3) weeks (unless otherwise authorized by the

Purchasing Staff).

2. Shall be used only to obtain information regarding products or services.

3. No award may be made based solely on the submission of an RFI.

4. Information obtained through an RFI may assist the City of Durango in defining a scope of work and requirements that may be used at a future date in the issuance of a Request for Proposal.

5. Pricing shall be requested as part of this type of solicitation for future budgeting purposes.

d. Request For Qualifications (RFQ), also known as Qualifications Based Selection (QBS): This method can only be used in the procurement of professional services such as architectural, engineering, or land surveying services.

1. Shall be publicly advertised for a minimum of three (3) weeks (unless otherwise authorized by the

Purchasing Staff).

2. The QBS process consists of four basic steps:

a. A Request for Qualifications (RFQ) for services for a specific project is advertised

b. Submittals are reviewed by an evaluation committee and the committee selects the most qualified respondent based on demonstrated expertise, qualifications, experience, and the ability to perform the work in the required type of desired services without considering fee

c. The project owner (Customer Department) and selected respondents confer to determine and/or review the scope of work and schedule

d. The project owner (Customer Department) negotiates a fee based on the mutually agreed scope of services

e. If a mutual agreement on scope of services and fee is not achieved with the selected respondent, the owner negotiates with the next most qualified respondent(s) until an agreement is reached

f. Factors to be considered in selecting the most qualified respondent include:

1. Past Performance

2. Ability to meet time and budget requirements

City of Durango Purchasing Policy 8 Effective 2/19/2025

3. Current and projected workloads

4. Specific experience in similar types of projects

It is not the desire of the City of Durango to penalize vendors who make obvious unintentional errors in bidding or proposing. In such cases, after bids have been opened or submissions have been closed, the vendor shall be required to explain the nature of the error and may request that their bid or proposal be withdrawn. With the approval of the Purchasing Staff, such offers or suggestions may be so withdrawn.

If the bids received are for the same total amount or unit price, quality, and service being equal, the City will resolve the low-tied proposals in a manner that, in the City's judgment, is in its best interest, including negotiating with such tie vendors for a price reduction.

If a customer department feels it is not in the City’s best interest to award a purchase of over $50,000.00 to the low-bid vendor, a complete statement of their reasons must be incorporated in their recommendation to the Financial Services Department. The Financial Services Department will then forward that recommendation to the City Manager for written approval before issuing a Purchase Order.

3. ON CALL ARCHITECTURE/ENGINEERING

On-call procurement contracts mean contracts for goods or services that are awarded in accordance with Section 1. Formal Solicitation of this policy or that are procured and awarded without a pre-determined specific quantity in the case of goods or scope of work in the case of services. Once a specific quantity or scope of work is identified, individual purchase orders are authorized, and the contractor, consultant, or vendor proceeds to provide the goods or services under the individual purchase orders. On-call contracts should be attached to the purchase order or invoice payment forms.

The City encourages firms that specialize in the disciplines of Architecture, Landscape Architecture, Civil Engineering, Structural Engineering, Transportation, Traffic Engineering, and Surveyors to respond to requests for professional services (RFPS) when available. The City reserves the right to bid on any project, regardless of the project cost for services when it is deemed in the best interest of the City. Architects and Engineers shall be licensed in the State of Colorado for the discipline(s) that they are proposing.

A list that will be established will not obligate the City to rotate or otherwise utilize the services of any individual or firm. The City reserves the right to use any individual or firm on the on-call list that it deems to be in its best interest for a job. Selection on each project shall be within the sole discretion of the City. Factors that may be considered by the City in choosing a company in any given situation may but need not necessarily include the following: (a) Professional availability; and

(b) expertise specific to the project.

Individual jobs are estimated not to exceed $250,000.00. This limit is set as a maximum amount and the actual amount paid will be based on the actual services used and will be dispatched from the City by written agreement prior to the start of any work. The firm must submit a scope of work

City of Durango Purchasing Policy 9 Effective 2/19/2025 on all projects. The City anticipates that the individual jobs shall be relatively small and might simply entail two or three hours of consultation.

C. EVALUATION OF RESPONSES

In determining the most responsive, responsible, and reasonable lowest Quote, Bid, or Proposal deemed most advantageous to the City, the following should be considered in addition to price:

1. The ability of the vendor to perform the contract or provide the goods and services within the time specified.

2. The reputation, experience, and efficiency of the vendor.

3. The comparative quality of the goods and services bid or proposed.

4. The vendor's past performance in compliance with laws and ordinances relating to the vendor's service.

5. The sufficiency of the vendor's financial resources to perform the contract or provide the goods and services.

6. The quality, availability, and adaptability of the goods and services to the particular use required.

7. The ability of the vendor to provide future maintenance and service.

8. The number and scope of conditions that are attached to the bid or proposal.

9. The quality of vendor's performance on previous Contracts.

10. Evaluation of cost versus natural resource impact/community benefits.

Best and Final Offer (BAFO) This will be requested from one proposer or short-listed proposers for their best price(s) for a specific solicitation prior to determining of contract award.

D. DEVELOPING SPECIFICATIONS FOR A QUOTE, BID, RFP OR Request for Qualification:

It is the responsibility of the customer department, with assistance from, and review by, the Financial Services Department, to develop proper specifications for all goods and services. Specifications shall be prepared in sufficient detail to permit free and open competition and to secure bids on goods and services equal to, or in the same or better class. If a specific brand is deemed necessary by a customer department, the customer department must explain why other brands are unacceptable; this information will be published in the solicitation. Suppose it is essential that a vendor be licensed or certified within the State of Colorado (i.e. construction, some professional services). In that case, this should be identified as part of the solicitation response and checked to ensure the vendor meets the requirements. Collaborating with any vendor(s) to develop specifications for a solicitation is not the best practice. It should be done cautiously so as not to give vendors an unfair advantage. Vendors must be paid for both their services and their involvement identified in the solicitation if they assisted in developing the specifications of a solicitation; further, any vendor assisting in the development of specifications for a solicitation funded federally in any part, whether paid or unpaid, will result in said vendor(s) not being allowed to bid or propose on the solicitation.

City of Durango Purchasing Policy 10 Effective 2/19/2025

E. BOND REQUIREMENTS:

For construction, erection, repair, maintenance, or improvement of any building, road, bridge viaduct, tunnel, excavation, or other public works Contract or subcontract exceeding $50,000, bonds are required pursuant to current Colorado Revised Statutes.

1. An executed Bid Bond from your firm’s surety naming the contracting agency/owner in the amount of 5 percent of the total bid price must accompany the vendor's bid. We will not accept U.S. Cash, Checks, or Cashier’s Checks in lieu of the accredited/executed surety bid bond.

2. Payment and Performance Bonds of 100 percent of the Award Vendor's Contract shall be supplied before any work begins. Original copies must be provided to the Purchasing Department.

3. Final/Partial Acceptance Report. The department may complete a Final/Partial Acceptance Report to document a project's completion or partial completion, the department’s level of satisfaction with the contractor, and any recommendations to disqualify the contractor. Upon completion, the department may forward a copy of the Final/Partial Acceptance Report to the Purchasing Agent and the City Engineer for construction projects.

4. Final Settlement. Under Colorado Revised Statue Title 38 Article 26 Section 107, for any Public Improvement contract of $50,000 or greater, the Purchasing Administrator shall initiate a Notice of Final Settlement upon receipt of the Final Inspection Report. A legal notice shall be advertised in a public newspaper at least twice in a period not less than ten (10) days prior to the date of final settlement/release of retainage. It is unlawful for any person to divide a Public Works contract into two or more separate agreements for the sole purpose of evading or attempting to evade the requirements of this subsection.

F. CONTRACTS:

A formal written Contract is required for all purchases of services exceeding $50,000.00. The Financial Services Department, working with the City Attorney’s Office, shall complete Contracts for Solicitations conducted in Purchasing, and can meet, or assist with, Contract amendments and extensions on behalf of the customer department.

1. Contract Execution Upon receipt of the executed contracts, requested bonds, proof of insurance, W-

9, and other required documents from the vendor; the Purchasing Agent shall forward the contract to the City Manager or Department Head for signature, as appropriate to the value of the contract.

$25,000 or less Department Director over $25,000 City Manager

Following the execution of a contract by the City Manager, the City Clerk shall attest to the City Manager’s signature, file the original document, scan and post a copy to the appropriate electronic folder, and return additional originals and copies to the Purchasing Agent for distribution to the vendor/contractor.

If the customer department is seeking a renewal of an existing contract/vendor agreement. The City Attorney's office must review and approve this vendor agreement so that it meets Colorado law and that there or no unexpected demands made of the City as to put the City in a binding contract that may have adverse contractual demands on the City.

City of Durango Purchasing Policy 11 Effective 2/19/2025

2. Change Order Contract Modifications Change orders or contract modifications shall be initiated by the Customer Department using standard forms. Execution of contract modifications, change orders, or contract price adjustments with the City not more than the budget may be executed by the following positions at the indicated price limits:

$10,000 or less Department Director over $10,000 City Manager

G. CONFLICT OF INTEREST:

No employee, officer, or agent (E/O/A) operating on behalf of the City shall participate in the selection, award, and administration of a Contract if a Conflict of Interest about tangible personal benefit, real or reputed, would be involved. In addition to an E/O/A, this includes their spouse/partner and family members.

It is a violation of this Policy for any person identified above to;

1. Sell goods and services, regardless of the amount, to any customer department without participating in a competitive quote process solicited by the City.

2. Knowingly misrepresent a vendor’s prices, quality, or services to obtain concessions.

3. Participate in the evaluation or recommendation of a solicitation process if the person holds an interest in any business or undertaking which may be directly and substantially affected to its' economic benefit by an official action to be taken by that committee.

4. Assist a vendor in:

a. preparing their response to a Bid, RFP, Quote, or Statement of Qualifications, or

b. to share procurement-sensitive information related to competitive procurement with vendors without providing it to all vendors through an addendum process. Procurement-sensitive information includes but is not limited to, Requirements, Specifications, Statements of Work or Evaluation Criteria.

c. Participate in the evaluation or recommendation of a solicitation process if a vendor would be perceived as having an unfair advantage because of activities or relationships with a member of the evaluation team or decision-maker.

5. A Conflict-of-Interest Disclosure Form shall be completed by an E/O/A involved in vendor selection through solicitations conducted by the Financial Services Department, as applicable, and may include, but is not limited to, the Purchasing Administrator, customer department representatives, and Evaluation Committee members.

H. WAIVERS of the PURCHASING PROCESS:

There are occasions when customer departments may request a waiver of the purchasing process, described below. A Purchase Order, approved insurance, business license and a Contract for services greater than $50,000 is required for all releases of the purchasing process. Note: Unless an alternate period is identified in the waiver approval, a waiver may be used once.

1. Quote Waiver (for goods or services ranging between $5,000.01 - $50,000):

A waiver of the Informal (quotation) process ($5,000.01 - $50,000.00, three (3) quotes), which may be requested by the customer department when they have compelling reasons. Such a request must be requested in writing via the Purchasing Waiver Request Form, to the Purchasing Staff and must

City of Durango Purchasing Policy 12 Effective 2/19/2025 include all details of the requested purchase, including the scope of work/pricing document (quotation, proposal) from the vendor for which the waiver is sought, and a thorough fact-based explanation as to why the Purchasing Staff should consider waiving the Informal Solicitation process.

If approval is obtained, both the customer department’s written request via a Purchasing Waiver Request Form, including any referenced documents, and the Purchasing Staff's approval must be attached to the Requisition for a Purchase Order.

2. Bid Waiver (for goods or services $50,000.01 or greater):

When they have compelling reasons, the customer department may request a waiver of the Formal Solicitation process ($50,000.01 or, more significantly, Bids and RFPs). The request must be made in writing via the Purchasing Waiver Request Form. It must include all details of the requested purchase, including a scope of work/pricing document (quotation, proposal) from the vendor for which a waiver is sought and a thorough fact-based explanation as to why we should consider waving the Formal Solicitation process. If approval is obtained, both the customer department’s written request via a Purchasing Waiver Request Form, including any referenced documents, must be attached to the Requisition for a Purchase Order.

I. SOLE SOURCE (greater than $5,000) A waiver of the Informal or Formal solicitation process (quotes, bids, and RFPs, anything more significant than $5,000) in the form of a Sole Source may be requested by the customer department when only one vendor can provide the good or service. Such a request must be asked of the Purchasing Agent, in writing via the approved Purchasing Waiver Request Form and must include all details of the requested purchase, including a scope of work/pricing document (quotation, proposal) from the vendor for which a Sole Source is sought, documentation of Sole Source justification including a thorough explanation and documentation detailing the nature and proof of the Sole Source. If approval is obtained, both the customer department’s written request via a Purchasing Waiver Request Form, including any referenced documents and the Purchasing Agent’s approval must be attached to the Requisition for a Purchase Order.

J. INSURANCE REQUIREMENTS:

Work shall commence on any City project once the required proof of insurance has been approved by the Purchasing Staff. Successful vendors with insurance requirements shall submit evidence of and have approved insurance documents in writing to the Purchasing Staff attention before any work begins. The Contract Administrator will ensure it remains current for the project's duration. Types and levels of insurance coverage are necessitated by the size and scope of the project being bid, changes to relevant laws, etc., and are set by the Risk Management Department. Per the Risk Management Department’s Certificate of Insurance Policy if the vendor’s required insurance lapses or if it is canceled, they will not be allowed to continue the work until the insurance has been reinstated and proof of such is furnished to and approved by Risk Management.

K. LOCAL PREFERENCE:

Local Preference does not apply to and may not be considered in the award of solicitations for Federal projects or when Federal funds or regulations are involved.

1. PURCHASES $50,000 OR LESS

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Customer departments may use their discretion in deciding if the written quote should be awarded to the City of Durango vendor in cases when a City of Durango vendor is within 5% of the low vendor.

2. PURCHASES $50,000.01 OR GREATER

The customer department may request awarding the solicitation to a City of Durango vendor in cases where a City of Durango vendor’s price is within 5% of the low vendor. If, according to the sole judgment of the Financial Services Department, the bids or proposals are substantially equal, Financial Services may grant the award to companies located in the City of Durango.

L. DEBARRED or SUSPENDED VENDORS:

The City will not award a solicitation to a vendor that has been federally debarred. Purchasing shall check such debarment through the System for Award Management at www.sam.gov for all projects that go to bid.

M. EQUIPMENT LEASING AND LEASE PURCHASES:

Any lease or lease-to-purchase contract is to be sent to Finance before execution for approval no matter what the dollar amount to ensure compliance with applicable regulations.

N. WITHHOLDING PAYMENT:

The City may withhold payment from a vendor to cover the items listed below, if retainage is part of the contract. The City shall have the right to apply any amounts withheld in such a manner as the City may deem proper to satisfy such claims. Such payments shall be applied to the vendor's account.

Payment may be withheld for the following reasons:

1. Just claims from any person supplying goods or services to the vendor or any subcontractors for the work, due and unpaid.

2. Loss due to defective work not remedied.

3. Liability, damage, or loss due to injury to persons or damages to the work or property of other contractors, subcontractors, or others caused by the negligence or more culpable conduct of the vendor or any of their subcontractors.

4. Any other similar claim.

O. CONSIDERATION OF COMMUNITY/NATURAL RESOURCE IMPACTS:

The City of Durango supports and encourages awareness among customer departments to evaluate cost versus natural resource impact/community benefits in the purchasing process.

The following guidelines are recommended for customer departments to consider when assessing the community benefit and natural resource impacts of goods or services:

1. Maximization of recycled products used in product or service life cycle

2. Environmental cost of entire product or service life cycle

3. Reuse of existing products or materials in product or service life cycle

4. Recyclability of product

5. Minimization of packaging

6. Reduction of energy/water consumption

7. Toxicity reduction or elimination

8. Elimination of uncertified hardwoods in product or service life cycle

9. Durability and maintenance requirements

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10. Ultimate disposal of the product

Customer departments are encouraged to consider established environmental standards when selecting products and services such as “Energy Star,” “Leadership in Energy and Environmental Design” (LEED) building principles, and “Safer Choice” labeling. The United States Environmental Protection Agency (EPA) website (epa.gov/greener products ) provides a guide to these standards and many environmental purchasing resources.

At its option, the City may include specifications in solicitations and in the selection criteria for goods and services that support the consideration of community benefits and natural resource impacts versus cost.

Disposal of City Personal Property (Surplus) Any equipment or goods that are no longer being used by a department should be transferred to the City Warehouse. The Purchasing Agent will attempt to reassign the items to other departments. If the items cannot be used by other City departments or other government agencies, they will be:

1. Sold at public auction.

2. Sold via government surplus internet auction sites.

3. Sold as salvage or scrap for the highest return available (i.e. scrap metal).

4. Sold by sealed bid.

5. If the value of the item(s) is determined to be less than $50, items may be donated to local charities or thrift stores.

Notification of items sold or transferred will be sent to the Finance Department, to be released if it is an assigned asset.

Piggybacking & Cooperative Purchasing COOPERATIVE PURCHASING This section details the use of piggybacking and cooperative purchasing.

A. PIGGYBACKING

Piggybacking is defined as a form of intergovernmental cooperative purchasing in which a governmental entity has completed a solicitation (Quote, IFB, RFP) with a competitive process similar to the City’s and identifies that the exact pricing and terms of the contract may be extended to other governmental entities. If agreeable to the originating governmental entity (specified in their solicitation or obtained in writing from their Purchasing Staff /Manager) and the awarded vendor, another entity may use the exact pricing and contract terms.

Example: X City completes an Invitation to Bid for Coffee Services, and X Department of the City has the same need for coffee services. Instead of conducting an additional solicitation, X Department may elect to piggyback off X City’s solicitation and contract directly with the vendor, providing all necessary documentation is obtained (see below).

1. Requirements for piggyback purchasing involving competitive procurement with other government entities:

a. Proof of competitive procurement b.Agreement from both the governmental entity and the vendor to piggyback

c. Vendor agrees to provide the City the pricing they initially bid

d. More than one (1) vendor responded to the solicitation

City of Durango Purchasing Policy 15 Effective 2/19/2025

e. Contract / Contract Renewal occurred within the last 12 months

f. The award vendor agrees to meet our insurance requirements

g. If any portion of the City purchase is Federally funded or contains other grant funds you must contact the Financial Services Department first, as it may not be allowable to piggyback.

2. Other governmental entities may piggyback on the City solicitations to acquire goods and services, providing the following requirements are met:

a. The Purchasing Staff agree; either as identified by the presence of piggyback/cooperative language in the solicitation or obtained in writing from the Purchasing Staff.

b. The governmental agency shall deal directly with any vendor concerning the placement of Purchase Orders, freight charges, contracting and disputes, invoicing, and payment.

c. The City shall not be held liable or responsible for any liability, claims, costs, damages, demands, actions, losses, judgments, or expenses incurred by the vendor or any government entity relating to such use.

B. COOPERATIVE PURCHASING

Cooperative Purchasing is a Formal Procurement conducted by a government Purchasing Cooperative on behalf of a governmental group with a common need to aggregate demand and obtain lower prices. Some Cooperatives cater only to specific forms of government, such as school districts or local government, so the Cooperative’s regulations must be reviewed thoroughly to ensure a City can utilize the contract. In general, counties, municipalities, schools, colleges, and universities in most states can sign an agreement with the Purchasing Cooperative to use the Cooperative’s contracts legally. If any portion of the City purchase is Federally funded, or if any other type of grant funds your purchase, contact the Financial Services Department first, as it may not be allowable to use a cooperative.

Some examples of Cooperatives the City include, but are not limited to:

a. NASPO/ValuePoint (National Association of State Procurement Of Officials)

b. OMNIA (formerly US Communities)

c. The Interlocal Purchasing System

d. National IPA

e. Sourcewell (formerly National Joint Powers Alliance)

f. National Purchasing Partners (NPP)

g. Houston-Galveston Area Council (HGAC)

h. National Cooperative Purchasing Alliance (NCPA)

i. Purchasing Association of Cooperative Entities (PACE)

The City may use Cooperative Purchasing Contracts at the discretion of the Purchasing Staff.

Vendor Protest Policy Vendors shall adhere to the following when filing a protest:

City of Durango Purchasing Policy 16 Effective 2/19/2025

A. WHEN TO FILE

After the award, protests are to be submitted in writing (via email, U.S. Mail, or courier) and received by the Purchasing Staff, 949 E. 2nd Ave Durango, CO 81301, within 10 (ten) working days after notification of the award has been published on BidNet. Protests based upon restrictive specifications or alleged improprieties in any solicitation, which are apparent before the bid opening or closing date for receipt of proposals, should be filed no later than three (3) working days before the bid opening date or proposal closing date.

B. PROCESS

The protest must include, at a minimum, the following:

1. The name and address of the protestor

2. Appropriate identification of the procurement by Bid or Proposal number

3. A statement of the reasons for the protest

4. Any available exhibits, evidence, or documents substantiating the protest

C. DECISION

The Purchasing Staff shall decide, in writing, on a protest within seven (7) working days after receiving all relevant, requested information. This decision shall be based on, and limited to, a review of the issues raised by the aggrieved vendor and shall set forth each factor considered in reaching the decision. The decision of the Purchasing Staff is final.

D. WITHHOLDING OF AWARD

When a protest has been filed before the award, the City will not make an award before the resolution of the protest. When an objection has been shown before the opening of bids or closing of requests for proposals, the City will put the solicitation on hold until the resolution of the complaint, unless the City determines that:

1. The items to be procured are urgently required; or

2. Delivery or performance will be unduly delayed by failure to make the award promptly; or

3. Failure to make a prompt award will otherwise cause undue harm to the City.

Grants All grants have procurement guidelines that must be followed. Customer departments shall provide all grant documents to the Purchasing Staff when requesting a solicitation for goods or services to meet these procurement regulations.

A. FEDERAL GRANTS (applicable to Federally funded projects, including, but not limited to, FAA, FEMA):

When Federal dollars are used, the following items apply. This is an overview of the regulations; the governing document should be read thoroughly and will prevail.

1. Sealed Bids / Invitations to Bid (Award based on lowest bid meeting all specifications and qualifications):

a. Must result in a fixed price contract (lump sum or unit price).

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2. Requests for Proposal (Contract must be awarded to the responsible firm whose proposal is most advantageous to the program, price and other factors considered):

a. Price is not used as a selection factor for Architect / Engineer (A/E) professional services (only).

A/E On Calls must not exceed 250k per year, a proposal must be submitted for costs, the department responsible should seek another cost for an apples-to-apples comparison quote and/or provide a justification letter approved by the purchasing department.

3. Sole Source (Used when one or more of the following apply):

a. Item is available from only one source.

b. An emergency (involving a threat to life, public health or safety, improved property, and other dangerous situations) will not permit a delay resulting from competitive procurement.

c. The Federal awarding agency or pass-through entity (the State) expressly authorizes the use of a sole source in response to a request made by the non-Federal entity.

d. After soliciting several sources, competition is determined to be inadequate.

e. Occasionally it is necessary to purchase supplies, services or construction items without going to bid, or that only one firm is in a better position to provide. Examples of potential sole source purchases/services include state bid, engineering or other professional or consulting services, items for resale, compatibility with existing equipment, custom items, paint, prime lumber (except for large quantities), new technology services or equipment, on site repairs (such as heating, air, plumbing, phone etc.) and utilities.

4. Utilization of Small and Minority Businesses, Women’s Business Enterprises, and Labor Surplus Area Firms may be sought with these six (6) affirmative steps:

a. Place these vendors on solicitation lists.

b. Assure these vendors are solicited whenever they are potential sources.

c. Divide total requirements, when economically feasible, into smaller tasks or quantities.

d. Establish delivery schedules where the requirement permits, which encourages participation by these groups.

e. Use services and assistance, as appropriate, of the Small Business Administration and the

Minority Business Development Agency of the Department of Commerce.

f. Require the prime contractor to take the same affirmative steps listed above in a-e if subcontracts are to be let.

5. Other Important Information:

a.Avoid time and materials Contract UNLESS no other Contract is suitable AND the Contract includes a Not-to-Exceed (NTE) price that the contractor exceeds at its own risk.

b. Vendors that develop or draft specifications, requirements, statements of work, and Invitations to Bid or Requests for Proposal MUST be excluded from competing for the award.

d. Avoid the acquisition of unnecessary or duplicative items.

e. Use value-engineering clauses to in Contracts to offer opportunities for cost reductions.

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f. A cost or price analysis must be carried out with every procurement above the Simplified Acquisition Threshold ($250,000.00). These independent estimates must be completed before receiving bids or proposals and included in the file.

Disaster Related Procurement While many of the items under “Federal Grants" the section above apply in the event of a disaster, information regarding procurement in the case of a Locally or Federally declared disaster is contained in both the City Comprehensive Emergency Management Plan (reference G), in the section entitled “Public Assistance Program & Financial Management Annex,” and in the Disaster Policy (reference K).

Requisitions and Purchase Orders This section outlines Requisitions and Purchase Orders.

A. REQUISITION for a STANDARD PURCHASE ORDER: The Requisition is found in the financial software system authorizing initiation of the Purchase Order process. A Requisition is generally electronically submitted to the Financial Services Department through the Financial system and, once approved, is routed to the Financial Services Department to request the Purchase Order. It shall be the responsibility of the customer department to code all Requisitions correctly to charge goods and services to the account most appropriate for the purchase.

B. PURCHASE ORDERS: Purchase Orders shall be issued only by the Financial Services Department upon receipt of an approved Requisition and after approval of the purchase in the financial software.

The financial system encumbers funds on standard Purchase Orders when Purchasing approves it in the financial system.

1. The Purchase Order is a payment mechanism and the vendor's authority to deliver and charge for the goods and services specified in the Order. The City is then committed to the value of the goods and services ordered. It is a legal document. When the Purchase Order is written as an acceptance of a bid, quotation, or offer, a contractual relation is established upon its issuance. Where there is no proposal from the seller, or if the vendor has made an offer under different conditions, the Purchase Order itself is an offer of contractual relation, with an acknowledgment or acceptance by the vendor.

a. Customer departments should only allow payment for 5% over the total Purchase Order dollar amount after obtaining a change order.

b. Purchase Orders are individually numbered and printed in the Purchasing Department.

c. The Financial Services Department will automatically email (or mail) the Purchase Order to the Vendor unless the customer department requests alternate handling.

d. A copy of the Purchase Order will be sent to the customer department.

e. A copy of the Purchase Order will be kept on file in the Purchasing Department.

C. PURCHASING EXCEPTIONS THAT REQUIRE A PURCHASE ORDER: These are purchases that are specifically exempt from Quote/Bid/RFP requirements, but which still require a Purchase Order, including:

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1. EMERGENCY PURCHASES: Emergency purchases shall be honored by the Purchasing Staff after the fact that there is an emergency need. An emergency purchase shall be defined as any purchase necessary to secure a threat to life, public health or safety, improved property, or general welfare of the community. Such purchase may be made by the Purchasing Authority, as necessary, and a Requisition shall be submitted to the Financial Services Department marked 'Emergency Purchase' on the next regular working day. The ‘Emergency Purchase Requisition’ (electronic or paper) must include all details surrounding the emergency, including:

a. Location of emergency

b. What occurred

c. What makes the occurrence an emergency

d. What is the threat to the living, public health or safety, improved property, or general welfare of the community

e. What can/will happen if immediate steps are not taken

f. The Financial Services Department's shall give immediate attention to such Requisition and process it without delay. Emergency purchases shall be limited only to a quantity of those goods and service items necessary to meet the emergency.

Notwithstanding any other provision of this policy, the City Manager or designee may make or authorize others to make emergency procurement when there exists a threat to public health, welfare, or safety under emergency conditions. A written determination of the basis for emergency and for the purchase or selection of the particular vendor or contractor shall be included with the purchase documentation (invoice, field check request, etc.).

D. BLANKET PURCHASE ORDERS: All itemized budgets over $5,000 must set up a Blanket Purchase

Order. Used when there are multiple payments made throughout a fiscal year for a single vendor.

These are typically in place when a long-term agreement exists for the City to purchase a predetermined quantity of goods or services at a set price over a specified period of time. Essentially a standing order for recurring delivery.

Purchases Made Outside Policy If a customer department has made a purchase that does not adhere to this Policy, the person who completed the acquisition shall send an email to the Purchasing Staff, their supervisor, and their department Director detailing the following information and requesting that the Purchasing Staff allow payment outside the Policy:

1. Explain in detail what occurred and why the Policy was not followed, and by whom

2. Explain in detail what steps will be taken to ensure this Policy will be adhered to in the future by the employee Purchasing will not issue confirming Purchase Orders for goods and services already received. The Purchasing Staff may authorize Accounts Payable to process the vendor invoice after reviewing the

City of Durango Purchasing Policy 20 Effective 2/19/2025 documentation provided by the customer department. They will work with the customer department to help them adhere to this Policy in the future.

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