Good vendor relations are valuable business assets established through mutual confidence and satisfactory business relationships between buyer and seller. An important contribution toward promoting and preserving these relationships is a clear understanding of the method of contract between the buyer and seller.
Vendors will be selected on a competitive basis. Formal bids, informal bids, or telephone quotations will be solicitated by the Purchasing Division. Bid awards, purchase orders and or contracts will be issued to the lowest responsible, responsive bidder.
For the procurement of supplies, materials and or equipment and for construction or repair, the Purchasing Division will observe the following procedures:
- In accordance with North Carolina General Statute §143-129, invitation for formal bids will be used for purchases of $90,000 and greater ($500,000 and greater for construction and repairs). This will include advertising in the local newspaper and/or other advertising media as deemed appropriate, and receiving sealed bids with or without bid bonds.
- In accordance with North Carolina General Statute §143-131, Request for Written Quotation (RFQ) will be used for purchases of $5,000 to $89,999 with or without advertising or bid bonds.
- In accordance with North Carolina General Statute §143-131, purchases of less than $5,000 will be made in the open market with or without necessary resort to formal invitation for bids or request for quotations. Every effort will be made to obtain at least three written quotes for purchases of less than $5000.
Any purchase that is estimated to cost $90,000.00 or greater, requires the advertisement for quotes in the local newspaper, followed by an official “opening” as set forth by the advertisement at a given time and place. Sealed formal bids require a bid bond unless prior adoption by the individual Council of a proclamation ordinance waving such bid bonds.
A guarantee that the bid provided is given in good faith and that the bid, when awarded, will be satisfied by execution of a contract or purchase order.
A purchase order is a binding contract between the City and a vendor and is not binding until accepted by the vendor. All purchase orders, to be valid, must be signed by the Director of Finance and Administration or his/her designee as a Deputy Finance Officer.
- General Purchase:
Any purchase for products or service when the cost of same will be less than $5000.00.
- Informal Purchase:
Any purchase for products or service where the cost will be between $5000 – $89,999. Purchases in this range should be accompanied by at least three written quotes.
- Formal Purchase:
Any purchase for products or service where the cost will be greater than $90,000.00. Purchases in this range require advertising and possibly bid bonds.