Warren-Newport Public Library District Lake County, Illinois Board of Trustees Policy 2025 Purchasing (Bids/Quotes) Adopted: June 13, 2006 Reviewed/Revised: April 16, 2013; January 20, 2015; August 21, 2018 ARTICLE 1. GENERAL POLICY FOR PURCHASES Purchases of the Warren-Newport Public Library District (WNPLD) are governed by the statutes of the State of Illinois. It is the policy of the Board of Library Trustees to comply with all statutory requirements and to use the most responsible business practices in its purchases. The Executive Director, or his/her designee, shall be responsible for the establishment of purchasing guidelines and procedures consistent with this purchasing policy and for ensuring that all expenditures are made in accordance with this policy. ARTICLE 2. PURCHASES AND LEASES Section 2.01 Authority to Purchase Items in the Budget Unless otherwise provided for in this policy, the Executive Director, or his/her designee, shall have the authority to purchase or lease products and services provided that the amount expended for any expense line of the annual budget shall not exceed the amount budgeted without the prior approval of the Library Board. Staff will act to procure quality products and services at the lowest possible cost, consistent with the needs of the user departments with regard to durability, performance, delivery, and service. Section 2.02 Bids As recommended by statute and except as otherwise provided by specific direction of the Library Board, all purchase orders or contracts for products or services in excess of twenty-five thousand dollars ($25,000) [65 ILCS 5/4-5-11] shall be let, by free and open competitive bidding after advertisement and after considering conformity with specifications, terms of delivery, quality, and serviceability, to the lowest responsible bidder or to another bidder when awarding the order or contract to the other bidder is determined by the Library Board to be in the best interest of WNPLD. However, bidding is not required in the following cases: . Goods or services that are economically procurable from only one source; . Services required for professional skills; . In emergencies involving public health, public safety, or where immediate expenditure is necessary; . Contracts for the maintenance or servicing of equipment that are made with the manufacturers or authorized service agents of that equipment; . Goods or services that are procured from another governmental agency; Policy 2025 Purchasing (Bids/Quotes) Page 1 of 4 . Purchases of data processing equipment or software and contracts for the use or installation of data processing equipment or software; . Contracts which by their nature are not adapted to award by competitive bidding, such as contracts for printing; tax anticipation warrants, and other evidences of indebtedness; and contracts for utility services such as water, electricity, gas, or telephone; . Contracts for the purchase of magazines, books, periodicals, electronic databases, and similar articles of an educational or instructional nature; . Purchases of less than twenty-five thousand dollars ($25,000). Section 2.03 Soliciting Bids The staff, as required by Board directive, shall seek bids (or quotes if bids are not specifically required) from the widest possible array of contractors, suppliers, and material laborers that time permits. This practice will produce the most competitive offers and terms available from the widest number of interested firms or individuals. WNPLD will utilize a system of solicitation lists of the names, addresses, phone numbers, and other contact information of the firms or individuals who have expressed an interest in being notified as to particular types of contracts, equipment, supplies, or materials which the District seeks to purchase. The staff will add to each list of those expressing an interest any firm or individual doing business that the staff determines should be added to such list. The staff may remove a firm or individual from a list for cause, with Board approval, or the firm or individual may request its removal. The firms or individuals on any such lists will be solicited directly by the staff to bid or quote on appropriate purchases, in addition to the requirements of advertising or other public notification mandated. WNPLD shall publicize its system of lists no less than once per calendar year so that any interested person or firm can ask to be added to the appropriate listing. The inclusion of a firm or individual on a solicitation list shall not constitute any prequalification for bidding and shall not release the firm or individual from meeting any and all requirements set out in a particular contract, bid, quote, or proposal. This system of solicitation lists is solely for purposes of supplementing the advertisement or notification requirements otherwise used, in order to avoid even the appearance of favoritism or lack of fair competition in the purchases of WNPLD. Section 2.04 Joint Purchases with Other Governmental Agencies The Executive Director, or his/her designee, is authorized to let joint purchasing contracts where the funds for such contracts have been previously budgeted and appropriated by the Library Board, according to the provisions of the "Governmental Joint Purchasing Act" [30 ILCS 525]. However, whenever such a contract is in excess of twenty-five thousand dollars ($25,000), the contract shall be presented to the Library Board with a request for permission to waive bids and approval to enter into a formal joint contract. Section 2.05 Quotes When securing price quotes, department heads shall preferentially solicit quotes from qualified vendors located in WNPLD. If the price and terms of two or more qualified vendors are equal, vendors located in WNPLD shall be given preference. Section 2.06 Commitment of WNPLD Monies No commitment for expenditures of WNPLD monies, except from the petty cash fund, shall be Policy 2025 Purchasing (Bids/Quotes) Page 2 of 4 made without a purchase order issued according to the following conditions: $25,000 or more: Any expenditure or sequence of related expenditures in a fiscal year of twenty-five thousand dollars ($25,000) or more shall be made only with prior Board approval in the manner prescribed by State Law and Board policy. Advertisements for sealed bids or requests for proposals will be properly handled through the public media. Sealed bids based on authorized specifications or requests for proposals shall be received at a public bid opening and include all costs for labor and materials, bid bond, performance bond, and certificate of insurance. Bids will then be verified, tabulated, and submitted to the Board along with staff's recommendation for action. Formal contracts with appropriate signatures of both Board and contractor are required. $25,000 or more, with bidding not required: In all cases where bidding is not required and the cost of the chosen product or service equals or exceeds twenty-five thousand dollars ($25,000), the Executive Director will report to the Library Board when purchase orders or contracts are executed. The report will include the reasons the provider was chosen. If multiple quotes were used in determination of the product or service chosen and the lowest quote was not accepted, the report will also include the reason(s) why all quotes lower than the accepted quote were not accepted and the reason(s) the higher quote was accepted. Between $5,000 and $25,000: Purchases of products and/or services less than twenty-five thousand dollars ($25,000) but more than five thousand dollars ($5,000) or a sequence of related purchases in a fiscal year totaling between $5,000 and $25,000 may be made in the open market, without newspaper advertisement and without following the procedure for formal contracts. Such purchases shall, whenever possible, be based on at least three (3) competitive proposals from vendors by direct mail, by email, or ascertained from vendors' price lists or other quote information. Equal to or less than $5,000: Purchases equal to or less than five thousand dollars ($5,000) may be made without three (3) competitive proposals but shall be made with attention to the lowest possible cost consistent with the needs of the user departments with regard to durability, performance, delivery, and service. Section 2.07 Emergency Expenditures An emergency expenditure is defined as an expenditure which would be impossible to identify in advance due to its immediate and unexpected nature and for which a delay in payment would cause damage to or a significant loss of WNPLD property, e.g., the necessity to hire a contractor to board up windows damaged by an auto collision. Emergency expenditures over five thousand dollars ($5,000) can be made only with the written approval of the Executive Director and the Board President and with the approval of three-fourths (3/4) of the Board members. The initial Board inquiry may be by telephone or by email; the purchase shall then be included on the agenda to be ratified at the next Board meeting. Emergency expenditures under five thousand dollars ($5,000) can be made only with the written approval of the Executive Director and the Board President, or in the absence of the Board President, the written approval of the Executive Director and the Board Treasurer. A poll of the Board is not required, but the emergency purchase shall be reported at the next Board meeting of the Board. Policy 2025 Purchasing (Bids/Quotes) Page 3 of 4 Policy 2025 Purchasing (Bids/Quotes) Page 4 of 4