HomeMy WebLinkAboutResolution No 33-2018 - Approving the Use of Online Reverse AuctionsRESOLUTION NO.33-2018
A RESOLUTION OF THE BOARD OF PUBLIC WORKS FOR THE CITY OF SOUTH
BEND, INDIANA APPROVING THE USE OF ONLINE REVERSE AUCTIONS
WHEREAS, the City of South Bend Board of Public Works (`Board") is the contracting
body for the City of South Bend, Indiana ("City") and the Board has the authority under the laws of
Indiana to purchase, acquire and lease property; and
WHEREAS, the Board and the City recognize that an online reverse auction is a unique
method of procurement authorized under Indiana law which may lead to significant savings to the
City in the acquisition of certain equipment; and
WHEREAS, Indiana Code 5-22-7.5 permits the use of online reverse auction sites provided
the municipality establishes a written policy in conformance with the statute prior to use; and
WHERAS, the City has prepared a policy ("Exhibit A") outlining the procedures to be
followed when utilizing an online reverse auction; and
WHEREAS, time is of the essence in this matter.
NOW, THEREFORE, BE IT RESOLVED by the City of South Bend Board of Public
Works as follows:
The City's policy, attached hereto as ("Exhibit A") for online reverse auctions has
been reviewed by the Board and is hereby approved.
2. This Resolution shall be in full force and effect after its adoption by the City of South
Bend Board of Public Works.
ADOPTED at a meeting of the Board of Public Works of the City of South Bend, Indiana
held on July 10, 2018, at 1308 County -City Building, 227 West Jefferson Boulevard, South Bend,
Indiana 46601.
CITY OF SOUTH BEND,
BOARD OF PUBLIC WORKS
Gary A. Gi ot, President
32tL UjC_._
Elizabeth A. Maradik, Member
James tille
r,
M r, Member
,V, "e
uliz
Su anna M. Aritzberg, Wmber
Therese Dorau,"TAember
--r4nda M. Martifi, Cle
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.
4. The online reverse auction company must post the approved specifications on its website in a
manner consistent with Ind. Code 5-3-1 to -4.
5. The specifications for whatever good/equipment procured through the online reverse auction must
be approved by the Board, and payments shall be made in accordance with terms set forth in the
specifications.
5. The specifications shall clearly outline the name of the online reverse auction company, the date and
time when the online auction will begin and end, and the location where bids will be opened online
for public dissemination.
7. The online reverse auction must protect the name of any offeror until the expiration of the auction.
8. The online reverse auction must display each bid throughout the duration of the auction.
9. Upon selecting the lowest bid submitted online, an internal City team will review the bid submission
to make sure that it fully complies with the requirements to conduct business with the City, as well
as the intent of the specifications. The City may award to the next lowest bid if the lowest offeror
does not meet the specifications or any City requirement.
10. The City may reject all offers made through the online reverse auction upon its discretion and
without justification.
11. The City shall maintain adequate documentation regarding its reverse auctions so that the
transactions may be audited as provided by law.
BOARD OF PUBLIC WORKS
AGENDA ITEM REVIEW REQUEST FORM
Date 6/29/18
Name Michael Schmidt
Department Admin/Finance/
Purchasina
BPW Date 7/10/18 Phone Extension 574-235-9316
[ j Agreement
LJ Contract U Proposal H Addendum
❑ Professional Services
® Resolution
❑ Bid Opening
❑ Bid Award ❑ Req. to Advertise ❑ Title Sheet
❑ Quote Opening
❑ Quote Award
❑ Change Order No.
❑
CIO & PCA No. ❑ PCA
❑ Ease/Encroach.
❑
Traffic Control
I-1
Other:
Company or Vendor Name
New Vendor
MBE/WBE Contractor
MBE/WBE Contractor
Requested
Project Name
Project Number
Funding Source
Account No.
Amount
Terms of Contract
Purpose/Description
[1 Yes [1 No U If Yes, Approved by Purchasing
❑ MBE ❑ WBE
❑ No ❑ Yes Name of Company
Ell
Resolution 33-2018. Approving the Policy for Online Reverse
Auctions
❑ Required Contractor's Certification Form Attached (Non -
Collusion. Non -Discrimination. Non -Debarment. E-Verifv. Iran. etc.
Amount of ❑ Increase
❑ Decrease
Previous Amount $
Current Percent of Change:
New Amount
$