HomeMy WebLinkAbout4.1 Board Policy 401, Contracting and Purchasing
BOARD POLICY
401 – Contracting and Purchasing
I. OBJECTIVE(S)
A. To establish guidelines for procuring materials, equipment, and services from acceptable
vendors.
II. POLICY CONTENT
A. The Board shall annually adopt operating, general plant, and annual work plan budgets.
Those actions provide the General Manager with the authority to make purchases and
other commitments in line with such budgets and work plans.
B. The General Manager has authority to approve purchases of goods or services for
operational, general plant or work plan budgets which have been approved by the
Board. The General Manager also has the authority to issue change orders for contracts
awarded in a formal bidding process in amounts which do not exceed an aggregate
change equal to the lesser of $500,000 or 10% of the original contract price. The General
Manager shall submit a monthly report to the Board for any individual purchases or
services which exceed $100,000.
C. For project costs which are fully reimbursable to HEA, the General Manager has
authority to make necessary purchases of goods and services.
D. The General Manager will determine and delegate other purchasing authorities as
necessary for the smooth and timely operations of the Cooperative in amounts not to
exceed the authorities granted herein.
E. Any purchase for which authority is not delegated pursuant to this policy shall be
presented to the Board for approval in advance of the execution of a contract therefore.
F. Bidding Requirements
1. For all purchases exceeding $25,000 and less than $100,000 a minimum of three
informal bids will be solicited.
2. For all purchases in excess of $100,000, a formal bid process will be followed. This
requirement also applies to blanket purchase orders in excess of $100,000 per year.
BP 401, Page 2 of 3
3. Bidders on construction contracts must demonstrate knowledge of transportation
and communication problems, climatic variations, unusual mobilization costs,
unique topographical and soil conditions, and the local working environment.
4. The General Manager shall maintain Management Directives and pre‐qualification
procedures for related bidding requirements.
5. All purchases of materials made with RUS loan funds shall be made following the
ʺBuy Americanʺ requirements of RUS, as amended by the North American Free
Trade Agreement Implementation Act.
G. When purchasing goods, materials, or services, the Cooperative shall first solicit
quotations from vendors:
1. Possessing an Alaska business license;
2. Maintaining an office and staff within the State of Alaska;
3. Incorporated in the State of Alaska or registered within the State of Alaska as foreign
corporations authorized to do business within the State of Alaska.
H. Where price, quality and quantity are approximately equal, a vendor maintaining an
office or other place of business in the service area shall be given preference within 5
percent. This policy will not apply where the provisions of an applicable statute,
regulation, or grant prohibit local bidder preference; nor will it apply to HEA facilities or
operations located outside of the service area.
I. Waiver of Requirements
1. The General Manager may waive a bidding requirement in the event of an
emergency. If the General Manager declares an emergency he shall report it to the
Board within 30 days of declaring the emergency.
2. The General Manager may waive bidding requirements if documentation is
provided supporting a determination that the purchase can only be made from a
single source or verification of the absence of three responsive formal or informal
bids. If the bidding requirement is waived, the General Manager will report the
waiver to the board within 30 days.
3. The Board may waive any requirements of this policy.
J. Unbudgeted Expenses
BP 401, Page 3 of 3
1. The General Manager shall have the authority to approve unbudgeted purchases
within the approved spending limits which in his judgment are vital to the
operations of the Cooperative. The General Manager shall report unbudgeted
purchases to the board within 30 days.
III. RESPONSIBILITY
A. The General Manager shall be responsible for ensuring compliance with this policy.
June 15, 2010
DATE BOARD PRESIDENT
POLICY HISTORY
Date Adopted: February, 1992 (formerly Policy I‐18)
Reviewed Dates: 04/96; 12/03; 05/04; 12/05; 07/06; 06/08; 06/10
Revision Dates: 04/96; 12/03; 05/04; 12/05; 07/06; 06/08; 06/10