Letter of Purpose
General Information
County Purchases and Standard Terms
Principles
Purchasing Policies/Objectives
Purchasing Process
Receipt and Opening of Sealed Bids
Bid Security Deposit and Performance Bond
Purchase Award Policy
Bidding Procedure Waiver, Sole Source Procurement
Open Competition
Vendor/Bidder's List
Removal or Suspension From and Rienstatement To Vendor/Bidder's List
Vendor/Bidder Complaints
Vendor/Pre-Bid/Conference Meetings
Co-Op Purchasing Group

I. LETTER OF PURPOSE

Dear Vendor:

This handbook's primary purpose is to acquaint you with the County of Muskegon's Purchasing Policies and Procedures.

Purchasing is a division of the Central Services Department. Its responsibilities include purchasing the necessary supplies, services, and equipment at the lowest possible cost, consistent with the quality needed to meet the County's requirements and ensure that the taxpayers receive the maximum value for each dollar expended.

Visits by sales representatives to the Purchasing Office are welcomed and encouraged. It is recommended that you schedule your sales visits by telephoning for appointments in order to more productively utilize the time of both purchasing personnel and salespersons.

Thank you for your interest and we look forward to doing business with you in the future.

Sincerely,

James M. Elwell
Central Services Director

Sincerely,

Lynn Zatalokin
Purchasing Manager

LOCATION
The Purchasing Office is located at the Muskegon County Governmental Complex, Central Services Building, 141 E. Apple Avenue, Muskegon Michigan, 49442-3404. Telephone: (231) 724-6281. Fax: (231) 724-6593. E-mail: purchasing@co.muskegon.mi.us. You may visit the county web site at: www.co.muskegon.mi.us.

OFFICE HOURS
The Purchasing Office hours are 8:00 AM-12:00 PM and 1:00 PM to 5:00 PM, Monday through Friday, with the exception of legal holidays.

AUTHORIZED PURCHASING OFFICIALS
The Purchasing Manager is the primary procurement officer for the County of Muskegon. All purchases in excess of $5,000.00 require the County Board of Commissioners' or the Administrator's authorization.

All purchases by the County of Muskegon require a purchase order signed by the Purchasing Manager or authorized designee. The Board of Commissioners reserves the right to accept or reject any or all bids, reserves all rights granted to it by law, reserves the right to waive formalities and to take such action as it deems necessary in the best interest of the County of Muskegon.

AFFIRMATIVE ACTION POLICY
The County of Muskegon, in conjunction with federal, state, and local laws has adopted an Equal Employment/Affirmation Action Plan incorporating requirements for assuring equal opportunities for all without regard to race, color, religion, national origin, age , sex, and/or physical or mental disability. All vendors entering into contracts must comply with the requirements covered under this program.

VENDOR VISITATIONS AND PRODUCT INFORMATION
Vendors are encouraged to visit buyers to discuss products or ask questions regarding purchasing policies. Vendors should call the buyer to arrange an appointment during the hours of 9:00 am-12:00 pm and 1:30 pm-4:30 pm. Vendors who are on the County's Bidder List should regularly send updated product/service information to the Purchasing Office.

MEMBERSHIPS
The Purchasing Office is a member of the following organizations:
NIGP (National Institute of Governmental Purchasing), MPPOA (Michigan Public Purchasing Officers Association), NAPM (National Association of Purchasing Management, NPI (National Purchasing Institute).

III. COUNTY PURCHASES AND STANDARD ITEMS

CLASSIFICATION AND CATEGORIES

The County of Muskegon purchases approximately $40,000,000.00 of commodities, services and equipment annually. The following list of purchases are submitted as examples of purchases and not intended to be inclusive.

   
PURCHASE ORDERS

Basically, there are four (4) types of purchase orders that the County uses; One-time Purchase Orders, Blanket Purchase Orders, Contract Purchase Orders and Emergency Purchase Orders. (See Exhibit A and B for a sample of Muskegon County Purchase Order.)

1. One-Time Purchase Order
   This is the most common purchase process used for capital equipment, materials, and supplies. A purchase requisition is prepared, quotations or bids are solicited, a purchase order is issued to the lowest responsive and responsible bidder, and the products are delivered and accepted.
   
2. Blanket Purchase Order
   In essence, these are open-end, billing authorization for deliveries type purchase orders which allow the purchase of repetitive or routine products used in a department's daily operation. The Purchase Order is issued for a specific period of time, usually one year. This purchase order may be canceled at anytime with restrictions such as purchase dollar limits and people authorized to purchase against the order. Discounts off the dollar amount are negotiated by the buyer with the vendor. This eliminates the writing of many one-time orders during the year thereby saving an appreciable amount of time and expedites orders. Quantities and dollar amounts listed are for budget purposes only and are not to be considered a guarantee or representation by the county that any specific quantity of product or services will be ordered.
   
3. Contract Purchase Order
   This area covers a broad spectrum from janitorial services and hiring of temporary personnel to professional consulting services of doctors, lawyers, accountants, architects, engineers and the rental of equipment such as copiers, vehicles and heavy equipment. Sometimes a request for proposal method is used for bidding this type of service and includes: a work statement or performance specification; time frame in which the work is to be completed; specific criteria to be used in evaluating the proposal. (These criteria can cover the offerer's proposed approach to accomplish the work, management, capability, and price.) A separate written contract signed by an authorized county employee and the vendor must accompany this type of purchase order.
   
4. Emergency Purchase Order
   As a general rule, emergency purchases will only be allowed after consultation with Purchasing. Because emergencies may occur in remote areas some distance from the Purchasing Office, and at any time of the day or night, the purchasing authority may be delegated to other departments and/or agency heads to meet the emergency situation. The vendor providing the emergency product(s) and/or service is asked to contact the purchasing office as soon as possible to verify the authorization of the purchase and obtain a purchase order. The same documentation is required as a one-time purchase order.

PREVAILING WAGES
Any construction, remodeling or repair contract over $100,000 (or $2,000 if federal or state funds are used) requires the contractor to pay their employees prevailing wages as set forth in the Davis Bacon Act. Additional reporting requirements must be met to ensure compliance with this provision.

TAXES
The County of Muskegon is exempt from all excise tax and sales and use taxes. However, depending upon the situation, the vendor or contractor may not be exempt from said taxes and the County of Muskegon is making no representation to any such exemption.

DELIVERY OR F.O.B. COUNTY OF MUSKEGON
All prices must be quoted F.O.B. County of Muskegon.

SAMPLES
When samples are requested, they will be held until the award is made. Samples for trial purposes will be at no cost to the County. Samples should be clearly identified.

PAYMENTS
All payments are normally remitted in the net amount within thirty (30) days after receipt of the vendor's invoice with the exception of discounts if paid earlier. Discounts will be taken where applicable.

VENDOR INVOICES
Vendor invoices should be mailed directly to the department or agency listed on the purchase order.

Any inquires regarding payment of invoices should be directed to the Accounting Office, Central Services Building, 141 E. Apple Avenue, Muskegon, Michigan, 49442-3404. Phone number: (231) 724-6206.

IV. PRINCIPLES

1. All agencies are required to cooperate fully, to the end that the governmental unit may obtain the maximum advantages offered by centralized purchasing.
2. Formal criteria shall be established and purchasing regulations issued as required, to establish equity and to protect the public interest while, at the same time, assuring the regulations are not excessive, conflicting, or do not impose undue costs.
3. The development, content, and approval of all purchasing policies, regulations, and procedures, as established by this organization, shall be common among agencies, where possible, and shall be consistent with these purchasing principles.
4. Our organization will purchase to the maximum extent practicable from private enterprise, to fulfill our needs for goods and services.
5. All purchasing actions, including those resulting from actions of sovereignty, shall be based on a doctrine of fairness and of equity.
6. All purchasing shall acquire the benefits of competition to the maximum extent practicable, through the use of formal advertising or sealed bids, where applicable, with the intent to encourage submission of bids by any and all qualified suppliers.
7. Our organization shall pay fair and reasonable prices for acceptable goods and services by accepting all ordinary and necessary costs, consistent with accepted commercial practices, when included in the price quoted.
8. All contracts shall be awarded as an entirety to the lowest responsible bidder, or by items to the respective lowest responsible bidders.
9. Our organization shall establish and maintain ethical and impartial relations with all suppliers to enhance our prestige, while achieving the goals and objectives regarding purchasing activities.
10. We shall abide by the same business principles that govern others in the field of commerce, where not in conflict with the foregoing.

V. PURCHASING POLICIES/OBJECTIVES

To conduct all purchasing activities according to the highest principles, practices, and ethics of the Purchasing Profession.

To procure all equipment, supplies, and services required for the County of Muskegon's operation at the lowest possible cost, consistent with the proper quantity, quality and delivery.

To conserve funds through reduction in cost and improvement in the quality of materials purchased. This is accomplished through competitive bidding and properly designed specifications.

To maintain standards of quality in materials, based on suitability for use. Standard specifications will be used whenever practicable.

To make all purchases on the basis of competitive bidding, unless an emergency situation requires immediate action for the preservation of our organization's property, or the protection and convenience of the public, or if the requirement can be satisfied by only one source.

To keep management and department heads advised on market conditions and trends that could affect future availability and price on materials and services needed by sending them information or by conducting visits from the Purchasing Staff.

To assure fair and equal opportunity to all interested and qualified vendors, including small, women, handicapped and minority-owned businesses.

To provide an understanding of the County of Muskegon's purchasing policies and procedures to all interested parties.

VI. PURCHASING PROCESS

Purchases are made by the County of Muskegon using formal and informal procedures.

INFORMAL PURCHASES
Telephone, fax or internet requests for quotations are generally used for acquiring low value items in a relatively short time. If the dollar amount is for several hundred dollars, vendors are asked to follow up their verbal quote in writing.

FORMAL PURCHASES

Request for Quote generally are used for items with an estimated value between $ 1,000.00 and $5,000.00. The procedure for formal quotations is similar to a formal bid with the exception that they will not be advertised in the newspaper.

Request for Bid are used whenever a product or service is estimated to cost $5,000.00 or more. Included in this bid package are the following components:

A. Bid Invitation Cover Letter
This states the product or service for which the County is requesting bids, the address, date and time the bid is due.

B. Advertisement
A copy of the bid advertisement as it appeared in The Muskegon Chronicle, trade magazine, etc.

C. Bid Summary
This page is where the vendor is to enter the price they are bidding along with the make, model and delivery time, if applicable.

D. Bid Certification
The bidder is to sign his or her name certifying they are abiding to all conditions of the bid and without collusion or fraud.

E. Bid Conditions
This part of the bid package contains additional information other than the specifications with which the bidder must comply. Some examples of complying with bid conditions would be providing bid and performance bonds, evidence of compliance with County of Muskegon Equal Employment/Affirmative Action Plan, enclosing insurance binders, complying with the prevailing wage rates established by the Michigan State Department of Labor Standards, etc.

F. Bid Specifications
Specifications are a clear and complete description of the essential qualities which products should have if they are to meet the acceptable purchase requirements of Muskegon County. A vendor must meet or exceed specification requirements if his or her goods or services are to be considered for purchase. Specifications may be in the form of written descriptions, drawings, industry standards or other descriptive references and may be prepared by department heads, the Purchasing Department, and/or consultants such as architects and engineers. The responsibility for review, evaluating, modifying and approving specifications remains with the Purchasing Department.

Specifications referred to herein are used to indicate the desired type, and/or construction, and/or operation. An alternate may be offered if deviations from specifications are minor and if all deviations are properly outlined on a separate sheet. Failure to outline all deviations may be grounds for rejection of your bid or quotation.

The decision of the County of Muskegon, acting through the Purchasing Manager, or his authorized representative, shall be final as to what constitutes acceptable deviations from specifications.

Specifications become an integral part of the purchase order and/or contract and help insure that maximum value is being obtained for the public funds spent.

G. Insurance Requirements
Bids that are for any work to be performed on County-owned property, will require from the bidder, an insurance certificate stating the insurance coverage asked for on the bid. No purchase order will be issued or work will not commence until the insurance certificates are received by the County.

Request for Proposal
May be used to purchase professional or consultant services where price is not the most important factor. In this method, information about the offeror such as experience, qualifications, education and references is requested and the price is sometimes negotiated with whom the County feels is the best qualified firm.

VII. RECEIPT AND OPENING OF SEALED BIDS

The bidders and public are invited, but not required to attend the formal opening of bids. Prices will be read aloud to the public. No decisions related to the award of a contract or purchase order will be made at the opening.

It is the bidder's sole responsibility to ensure that a bid is deposited with the Purchasing Office prior to the time and date specified. Late bids will not be opened and will be rejected unopened, regardless of the degree of lateness or the reason including those causes beyond the control of the bidder or offerer.

Likewise, vendors must ensure that bids submitted, as the result of a Formal Request (quote, bid or proposal), are sealed prior to delivery to Purchasing. The envelope must bear the official Request For Bid number and the official closing date in the lower left-hand corner.

All bids and tabulations are kept by the Purchasing Office after the award is made and are available for inspection at any time during business hours upon making an appointment.

VIII. BID SECURITY DEPOSIT AND PERFORMANCE BOND

If a bid security deposit is required, this requirement will be stated in the Request For Bid. A certified check or cashier's check for the amount specified in the Request For Bid must be included with the bid. Bids submitted without a required bid security deposit will not be considered.

The bid security deposit guarantees that the successful bidder will accept a contract, if offered, and furnish the commodities or services as stated in the bid. Failure to accept the contract and/or furnish the commodities or services offered will cause the amount of the bond or check to revert to the County of Muskegon. Bid security deposits of unsuccessful bidders will be returned after the award is made.

If a performance bond is required in the Request For Bid, the successful bidder's deposit will be held until a performance bond in the amount stated in the Request For Bid is received by the Purchasing Office. The performance bond must be issued for the amount stated in the Request For Bid by a company authorized to do business in the State of Michigan, and the bond must be payable to the County of Muskegon in case of default. The performance bond guarantees vendor compliance with the specifications, delivery as promised, and agreement with all terms and conditions of the contract.

IX. PURCHASE AWARD POLICY

QUALIFICATIONS FOR AWARDS
This contract will be awarded to that responsible bidder whose bid, conforming to this solicitation, will be most advantageous to the County, price and other factors considered. The County reserves the right to accept or reject any or all bids and waive informalities and minor irregularities in bids received. Other factors include, as an example but not limited to, delivery time, conformance to specifications, incidental costs such as demurrage and deposits, etc. A responsible bidder is one whose reputation, past performance, and business and financial capabilities are judged by the Purchasing Office to be capable of satisfactorily performing one's contractual obligation.

TIE BIDS
In the event of tie bids, consideration will be given to past performance of the vendor, locality, and freight costs.

ALTERNATIVE BIDS
Bids may be disqualified for failure of the offered product to meet specifications in the Request For Bid. Purchasing reserves the right to evaluate each specification as to its overall importance to the item being bid.

If an alternate bid functionally meets or exceeds the specifications, the Purchasing Office can consider the alternate bid and make the decision that we feel best meets the needs of the County.

NON-APPLICABLE CONSIDERATION
Assistance in the development of specifications or other advisories may be provided by the vendors. Although such assistance is valuable and appreciated by the Purchasing Office, no preferential recognition can be given in return for these services.

X. BIDDING PROCEDURE WAIVER, SOLE SOURCE PROCUREMENT

As was stated before, any requests for goods or services which is estimated to cost over $5,000.00 must go through the formal sealed bid process. There are exceptions to this rule, however. If staff determines that by bidding a certain good or service, there would be definite timing problems or that because only one vendor is known to exist, a request for waiver of bids may be made to the Board of Commissioners for consideration and approval. This would also apply for emergencies.

If sole source acquisition is approved, the vendor will be contacted for price, delivery and other relevant information and a purchase order will be issued. If sole source is not requested or approved, the formal purchase process will likely be used.

XI. OPEN COMPETITION

The Purchasing Office, in conjunction with the user department, strives to design specifications for compatibility with standard trade practices and to use procedures that will accomplish its mission in accordance with the law and prudent business practices. Potential bidders are encouraged to notify the Purchasing Office whenever, in their judgement, specifications are unreasonable or inadvertently restricts open competition or compliance with standard trade practices, or impose an impractical or unreasonable procedural burden.

The Purchasing Office promotes and encourages open and free competition for all vendors. Each vendor should have an opportunity to submit bids free from any outside influence or interference. The Purchasing Office monitors all purchasing activity to ensure that all vendors have the opportunity to bid openly and competively.

XII. VENDOR/BIDDER'S LIST

The Purchasing Office maintains a centralized listing of bidders classified according to material, supplies or service.

All vendors must complete a "Vendor Registration Form" (See Exhibit C & D) in order to do business with the County. Once your completed Vendor Registration Form has been received, your company will be assigned a vendor number and placed on the bidder's mailing list with an indication of the products or services it is authorized to provide.

Vendor Registration Forms may be obtained by contacting the Purchasing Office.

We encourage vendors to provide the Purchasing Office with supplemental catalogs and price lists whenever possible. Updating of the vendor’s address, phone number, products or services is the sole responsibility of the vendor.

XIII. REMOVAL OR SUSPENSION FROM & REINSTATEMENT TO VENDOR/BIDDER'S LIST

The Purchasing Manager may recommend to remove or suspend any bidder from the bidder's list, provided evidence is available for such action. The bidder will be given formal notice of such removal or suspension.

CAUSE FOR REMOVAL OR SUSPENSION
The following shall be sufficient grounds for removal or suspension. The list is not meant to be all inclusive, but serves as a guideline for vendor discipline and business ethics:

1. Delivery of commodities, equipment or services which do not comply with the specifications.

2. Failure to make delivery or complete a project in the time specified on the contract or purchase order.

3. Failure to keep the offer firm for thirty (30) days after the date and time set for opening bids.

4. Failure to provide a performance bond when required by the Invitation For Bid, following the award of a contract or purchase order.

5. Collusion with other bidders or prospective bidders to restrain competitive bidding.

6. Failure to accept orders offered that are based upon firm bids.

7. Failure to make applicable adjustments or replacement of damaged goods.

8. Failure to honor warranties and guarantees on products delivered.

9. Giving information on the application for placement on the bidder's list which is false or misleading.

10. For consecutive failure to respond with either a bid or an indication of "no bid" to Invitations For Bid.

11. Failure to follow administrative procedures set forth in this manual.

12. Any violation of the laws of the State of Michigan or the Federal Government.

REINSTATEMENT ON VENDOR/BIDDER'S LIST
At any time after the vendor receives notice of removal or suspension, the vendor may submit in writing or in person an explanation of the circumstances which were cause of removal or suspension or may show that such circumstances have been corrected. On the basis of such explanation or showing, the Purchasing Office may modify or rescind the removal or suspension.

XIV. VENDOR/BIDDER COMPLAINTS

The County of Muskegon has established administrative procedures for handling vendor's complaints in a fair and timely manner. Vendors should observe the following steps in order to file complaints.

STEP I
The vendor must contact the Purchasing Manager within seven (7) days of the incident about which he or she has a complaint. The Purchasing Manager may request the vendor to present the complaint in writing if it is serious and/or the vendor is requesting a delay of the purchase award.

The Purchasing Manager will investigate the complaint and review all findings with the Central Services Director. The Purchasing Manager will reply verbally or in writing to the vendor after discussion with the Central Services Director.

STEP 2
If the vendor is dissatisfied with the Purchasing Manager's reply, an appeal must be made in writing within seven (7) days to the County Administrator/Controller or the Muskegon County Board of Commissioners.

The administrative procedures herein will provide the vendor with the most straightforward and effective method of handling vendor complaints.

XV. VENDOR/PRE-BID CONFERENCE MEETINGS
Occasionally, Purchasing is faced with the prospect of seeking competitive bids which are highly technical or complex in nature. Many times a Pre-Bid Conference is a valuable procedure for the early detection and the clarification of potential problems and errors.

A Pre-Bid Conference is a meeting of potential bidders, County department staff and Purchasing Manager and/or Buyer. At the Pre-Bid Conference, the Purchasing Manager and/or Buyer, County department staff and technical representative, go over the bid package in detail, explaining the scope, objectives, specifications, and techniques as parts of the proposed purchase. Vendor inquiries and points of contention are noted. Those areas of concern which are raised about specification or condition alterations are addressed as soon as possible after the meeting by the Purchasing Manager and/or Buyer and the using department. When a decision is made to make a change, all bidders are formally notified by a written addendum to the request for bids. Purchasing is responsible for setting up meetings with vendors and every is effort made to choose a time and place acceptable to all parties concerned. No vendor should meet with County department staff without first notifying Purchasing.

XVI. COOPERATIVE PURCHASING GROUP

On April 13, 1993, the Muskegon County Board of Commissioners authorized the County's Central Services Purchasing Department to participate in the ICC-2000 Muskegon County Intergovernmental Purchasing Group and to assume the lead role in the preparation, distribution and analysis of bid solicitations for commonly used goods and services by participating members.

The Purchasing Group is made up of and open to all governmental entities (cities, townships, villages, etc.) located within the boundaries of Muskegon County. Any vendors desiring to do business with the Purchasing Group should contact the Muskegon Purchasing Office to get registered.

Finance and Management Services
141 E. Apple Ave.
Muskegon, MI 49442-3404
Phone 231.724.6505
Fax 231.724.6673
niemiecja@co.muskegon.mi.us
Hours: M-F 8-5 (Closed Holidays)