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HomeMy WebLinkAbout2025-45 A Resolution of the Vail Town Council Adopting the Town of Vail Procurement Policy1 10/2/2025 C:\USERS\UFC-PROD\APPDATA\LOCAL\TEMP\BCL TECHNOLOGIES\EASYPDF 8\@BCL@4C1673D9\@BCL@4C1673D9.DOCX RESOLUTION NO. 45 SERIES 2025 A RESOLUTION OF THE VAIL TOWN COUNCIL ADOPTING THE TOWN OF VAIL PROCUREMENT POLICY WHEREAS, the Town Council wishes to adopt the 2025 version of the Town of Vail Procurement Policy. NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL: Section 1. The Town hereby adopts the Town of Vail Procurement Policy in the form attached hereto. INTRODUCED, READ, APPROVED AND ADOPTED THIS 7 th day of October, 2025. ______________________________ Travis Coggin, Mayor ATTEST: ____________________________ Stephanie Kauffman, Town Clerk TOWN OF VAIL PROCUREMENT POLICY TOWN OF VAIL PROCUREMENT POLICY Introduction/Summary This Town of Vail Procurement Policy (the "Policy") established a uniform process for purchasing services, materials, and equipment, and ensures compliance with local, state, and federal laws, and provides the best value to taxpayers for goods and services. The Town advocates for open and fair competition with vendors, suppliers, and contractors to provide the best goods and services for the Town ’s citizens and guests. The Town practices a decentralized method of purchasing. This means that each department is expected to meet and follow the Town’s standards and policies regarding the purchasing process. All purchases must be within the department’s current year budget. Any un-budgeted purchases must be reviewed and approved by the Town Manager for either supplemental appropriation or budget adjustment prior to payment. Verbal bids are acceptable up to $24 ,999 purchases however $25,000 and over require three written bids to be obtained. Contracts above this amount must also have a written contract signed by the Town Manager. There may be circumstances when bids may not be able to be obtained. For any of these “sole-source” contracts, the purchaser must document the fact that a sole source provider was used and the reason why he/she was unable to comply with this purchasing policy. The Town Manager may enter into a sole source contract up to $99,999 . Over $100,000 must be approved by Town Council prior to execution of the contract. In addition, the following matrix is a quick reference guide that identifies when a bid/quote is required, when a contract is required (per item), and the approval level required. The requirements vary for various dollar levels. Please refer to the detailed instructions below that accompany this matrix. $0 - $25,000 $25,000 - $50,000 $50,000 - $100,000 $100,000 and above Bids Informal Bid Process- Informal Bid Process- 3 quotes Competitive Bid Process See example Bid Form* Competitive Bid Process See example Bid Form* Contract Required Required Required Approvals Dept Head or authorized staff Dept Head or authorized staff Town Manager (contract) Town Manager and Council * Attachment A Calculation of Contract Thresholds The amount of a contract for purposes of signature/approval thresholds shall typically be determined by the amount to be spent on that contract for its term. Thus, if a contract’s term is for one year, but may be renewed for subsequent terms, the aggregate amount is the amount spent on the initial term. If the contract is for one project that may span multiple years, but which does not require the contract to be renewed, then the aggregate amount is the total amount spent on the contract. Contracts TOWN OF VAIL PROCUREMENT POLICY All contracts must use the Town’s form (example: Professional Services Agreement template) with exception on a case by case base approved by the Town Attorney. A unique contract must be executed for each unique project. All contracts must be reviewed and approved by the appropriate Department Head, Town Attorney and then routed to the Town Clerk, even if on a standard template form. The Town Clerk will route to Finance Director or Finance Director appointee to confirm budget allocation and document for payment processing controls. Contracts $100,000 and over must be authorized by Town Council. Exceptions include vehicles approved through state or government purchasing arrangements. Colorado law (Statute § 38-26-105) requires that for construction contracts exceeding $50,000, performance and payment bonds must be obtained. These bonds act as a financial guarantee, protecting the project owner from contractor failure. This does not apply to maintenance-type contracts such as striping, overlay, and snow removal. Purchase of Materials Please note that for purchases of materials (and only materials), a purchase order from the vendor qualifies as a contract and should be treated as such for the purposes of this agreement. A quote or purchase order document for materials over $50,000 for an individual project or purpose must be signed by the Town Manager. Materials less than $50,000 may be signed for by designated staff, other than the Department Head . Contracts over $100,000 must be approved by the Town Council. Change Orders Change orders over the greater of $50 ,000 or 20% of the total project cost (singular or cumulatively) must be signed by the Town Manager. Change orders may only be used on the project at hand, and must be within the appropriated annual budget. A change or adjustment in scope such as additional work performed in a near-by location or similar type of work in a different area does not qualify for a change order and will require a separate contract. Intergovernmental Agreements (IGA) Any financial arrangement with another governmental agency must be memorialized with an Intergovernmental Agreement (IGA). Examples include reimbursements, cost-sharing, providing services, etc. All IGAs must be formally approved by a resolution of Town Council and signed by either the Town Manager or the Mayor. Sole Sourcing There may be circumstances when bids may not be able to be obtained. The intent of sole sourcing is for items such as fire trucks or buses where there are not many vendors. A reasonable effort must be made to identify multiple sources for the purchase. This Policy does not include preferred vendors. Preferred vendor are vendors the town has a relationship with and uses on a regular basis for regular maintenance and service type projects (striping, cleaning, ect). These vendors are not exempt from the RFP and bidding process. For any of these “sole-source” contracts, the purchaser must document the fact that a sole source provider and justify the sole or limited source purchase. Examples of sole source justifications may include: • Existing equipment that requires original manufacturer’s parts or service. • Legitimate standardization requirements. • Uniqueness of product or service that by its nature make competition impractical. TOWN OF VAIL PROCUREMENT POLICY • Failure of alternate products or services the agency has used lacking reasonable assurance that the problems have been corrected. • Limited availability of goods or services. The Town Manager may enter into a sole source contract up to $100,000. Over $100 ,000 must be approved by Town Council prior to execution of the contract. Emergency Purchases At times it may not be possible to obtain competitive quotes for goods or services due to an emergency situation including wildfire, flooding, rockfall, etc. An emergency purchase is defined as anything that would jeopardize the public health, safety and welfare or substantially hinder the Town’s operations. Sufficient written justification should be documented with justifications explaining the emergency nature of the purchase and subsequent department from normal procurement procedures. The Town Manager can approve these purchases.Cooperative Purchases/Contracts The Town is authorized to participate formally or informally in cooperative purchases through other government or non -profit agencies. Examples include without limitation the State Bid Contracts (office supplies, vehicles, paper products, etc.), The Colorado Multiple Assembly of Procurement Officials (MAPO), US Communities, Piggyback bids on other government bid and RFP processes. These cooperative purchases may also apply to state and federal grant funded projects (i.e. transit buses, vehicles, heavy equipment, etc.). Granting agency approval for piggyback or coop purchases must be received, in writing, prior to issuing a Purchase Order (P.O.( or contract. NOTE: FEDERAL AND/OR STATE PROCUREMENT STANDARDS APPLY TO ANY PURCHASE MADE WITH FEDERAL OR STATE FUNDING. DEPARTMENTS ARE RESPONSIBLE FOR KNOWING AND DOCUMENTING ANY FEDERAL OR STATE REQUIREMENTS. Federally funded purchases must follow at a minimum federal procurement policies. See Uniform Guidance – 200.318 – 200.326: https://www.ecfr.gov/current/title-2/subtitle- A/chapter-II/part-200?toc=1 Purchase Documents and Process: Documents Required: 1. Bid Document. 2. Contract Routing Form. 3. Contract or P.O. Process: 1. Establish/Review available budget. 2. Proceed through informal or formal bid, dependent on matrix above. 3. Complete bid sheet if above $25,000. 4. Prepare contract in collaboration with Town Attorney. 5. Submit contract routing form, bid document, and contract/P.O. to Town Clerk office to go through the routing and approval process (outlined below). 6. Can begin submitting to Accounts Payable for payment. Once the above process is complete, the Finance department continues with the payment process. The person authorizing the payment is responsible for ensuring that sales tax was not TOWN OF VAIL PROCUREMENT POLICY charged on the purchase. Please call Finance if you do not have a copy of the sales tax exemption certificate, which needs to be provided to most vendors. APPROVALS All purchasing documents must be approved by one or more of the following: 1. Town Attorney. All contracts must be submitted to the Town Attorney’s office for review prior to signing. 2. Finance. The Finance Department will review to ensure compliance with purchasing policy and within budget. 3. Town Manager. The Town Manager must sign all contracts for services or commodities that are $50,000 or over. This requirement applies to purchase orders and contracts. 4. Department Head. Responsible for ensuring an executed contract is in place (if required by this policy). 5. Division Head. Authorized Division Heads must be designated by the Department Head. 6. Staff signature. Authorized staff must be designated by the Department Head. Purchase Documents include appropriate bid forms, purchase order, field purchase order or expense statement. Each department is responsible for maintaining bid documentation for 3 years. A copy of the bid form will be required along with the first payment request (P.O. or F.P.O.). Each Purchasing Document must be accompanied by an invoice (statements do not qualify). Town of Vail Component Units The Town’s component units including the Vail Local Marketing District, Vail Reinvestment Authority, Vail Local Housing Authority, and the Vail Home Partners are also subject to this Policy. TOWN OF VAIL PROCUREMENT POLICY Attachment A Bid Form Type of Bid: ( ) Informal ( ) Formal Service / Item Requested: ____________________________________ Bid 1: Vendor/Service Provider/Contractor: Timeline: Price Submitted: Other important information regarding the bid / Determining factor for awarding or declining the bid: Bid 2: Vendor/Service Provider/Contractor: Timeline: Price Submitted: Other important information regarding the bid / Determining factor for awarding or declining the bid: Bid 3: Vendor/Service Provider/Contractor: Timeline: Price Submitted: Other important information regarding the bid / Determining factor for awarding or declining the bid: If three bids were not acquired, document below reason(s) for not complying with TOV Procurement Policy: