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Purchasing Policies

New officials are often surprised to learn that there is no state law requiring competitive bidding for town contracts and purchases (with the exception of a public official involved as one of the sellers or contractors). However, unlike their counterparts in the private sector, government-purchasing officials are often required to publicly disclose prices paid, as well as the reasoning and justification for choosing a particular vendor or contractor. The use of taxpayer dollars—along with citizens’ demands for maximum value, fair and ethical selection criteria, and efficient and timely delivery of goods and services—spotlights the public procurement process. The primary objective for adopting a purchasing policy is to promote public confidence in the municipal procurement process by addressing these accountability demands.

Policies should address:

  • Definitions
  • Purchasing methods – field purchase order,
    oral/written quotes, competitive bidding
  • Dollar thresholds (Purchasing Thresholds
    Summary Chart
    [PDF document])
  • Assignment of approval authority
  • Exceptions
  • Special provisions for emergencies,
    professional services, public works projects,
    sole-source contracts
  • Preference provisions
  • Ethics/conflict of interest statement

 

Example policies: (Word format)

Please note: All example policies are for illustrative purposes only. None of these example policies have been reviewed by LGC legal staff for enforceability or compliance with applicable laws. LGC makes no express or implied endorsement or recommendation of any example policy, nor does it make any express or implied guarantee of the legal enforceability, legal compliance, or quality of any particular policy. Likewise, we do not represent that any particular policy or portion of a policy is appropriate for any particular municipality. Legal counsel should review any proposed financial policy before a municipality adopts it.