Resolution No 33-2018 - Approving the Use of Online Reverse Auctions

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EXHIBIT A 3.4 Online Reverse Auctions Policy Effective July 10, 2018 Purpose: This policy establishes procedures for the City of South Bend's (the "City") use of online reverse auctions for purchasing, as are required by Ind. Code § 5-22-7.5-2. Scope: This policy applies to all online reverse auction purchasing operations of the City of South Bend. Responsibility: This policy is the responsibility of the Controller of the City of South Bend and is subject to additional approval of the South Bend Board of Public Works (the "Board"). Changes or revisions to this policy are effected only with the consent and approval of the Controller and the Board. Effective Date: This policy is effective July 10, 2018. 1.0 Policy Statement The City continues to explore lawful and creative procurement methodologies with the hope that it can drive significant savings on equipment and goods. One of these creative procurement strategies is an online reverse auction. Authorized under Indiana Code 5-22-7.5, an online reverse auction is a method of purchasing in which offers are submitted in an open and interactive environment by way of a 3rd party Internet company. Under Indiana law, a purchasing agency, such as the City, may conduct a reverse auction for the purchase of supplies by using an Internet purchasing site to issue an invitation for bids and to receive bids. Prior to conducting an online reverse auction, a purchasing agency is required to adopt written policies to establish certain procedures for using this public purchasing method. The City Controller and the Board have approved and adopted this policy for the City's use of online reverse auctions for eligible purchases. 2.0 Procedures The following procedures are hereby established for online reverse auctions: 1. The purchasing department or agent must receive permission from the Board prior to making a purchase through an online reverse auction. 2. Any Internet purchasing site used by the City for an online reverse auction must be registered with the State of Indiana Department of Administration and must comply with the requirements set forth in Ind. Code § 5-22-7.5-4. 3. The City, byway of the Board, must publish notice of its intent to utilize an online reverse auction in accordance with Ind. Code 5-3-1 to -4.