Town is looking to purchase playground equipment for Town park.  Vendor has program that expires at end of October that will save Town approximately $20,000.00 on purchase price.  Purchase price for equipment, plus installation, is $50,200.00.  Town ordinance requires going out for bid on purchases over $25,000.00.  Town has two questions:

1.   Can Town pass emergency ordinance (to take advantage of discount) increasing the bid limit to $50,000 (hopefully vendor will discount another $200.00) and later in the same meeting approve the purchase of $50,000.00?  The emergency ordinance increasing the bid limit would be effective prior to action on the purchase.
   

2.   Is it bid splitting if the Town purchases the equipment and installs the equipment itself.  The vendor's proposal provides separate costs for equipment and installation.  It seems these are two separate cost items and the Town would not be splitting the equipment cost and installation cost into two bids for the purpose of getting around bid limits.  Town would not be paying anything for installation.  In any event, if the purchase price of the equipment exceeds $25,000.00 , question 1 would still need to be answered in the affirmative.
   

Thanks,
Joe Weaver

Joe Weaver
Attorney At Law
405.262.4040
405.262.4058 fax
joe@basslaw.netmailto:agbass@basslaw.net

[cid:image001.png@01D69BD2.6AEFDBB0]
www.basslaw.net
104 N. Rock Island Ave.
P.O. Box 157
El Reno, OK 73036

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Just thinking off the top of my head, but, the Oklahoma Competitive Bidding Act, 61 O.S. sec.101 et seq, comes into play for bids exceeding $50,000.00.  But, it also applies to bids between $25,000 and $50,000, 61 O.S. sec. 103 (C). But, if the town is directly purchasing the equipment, materials and supplies from the vendor then that should fall outside of the OCBA. So even if the city has an ordinance, if the bid for the contract less the direct purchase of equipment material and supplies is between $25,000 and $50,000, the OCBA might still control.

Also, there is a public trust bidding law at 60 O.S. sec 176(h) that requires bids for all public contracts for construction, labor, equipment, material or repairs in excess of $25,000, if a Town's trust is making the purchase.

From: Oama oama-bounces@lists.imla.org On Behalf Of Joe Weaver
Sent: Tuesday, October 6, 2020 11:42 AM
To: oama@lists.imla.org
Subject: [Oama] competitive bidding

Town is looking to purchase playground equipment for Town park.  Vendor has program that expires at end of October that will save Town approximately $20,000.00 on purchase price.  Purchase price for equipment, plus installation, is $50,200.00.  Town ordinance requires going out for bid on purchases over $25,000.00.  Town has two questions:

1. Can Town pass emergency ordinance (to take advantage of discount) increasing the bid limit to $50,000 (hopefully vendor will discount another $200.00) and later in the same meeting approve the purchase of $50,000.00?  The emergency ordinance increasing the bid limit would be effective prior to action on the purchase.
2. Is it bid splitting if the Town purchases the equipment and installs the equipment itself.  The vendor's proposal provides separate costs for equipment and installation.  It seems these are two separate cost items and the Town would not be splitting the equipment cost and installation cost into two bids for the purpose of getting around bid limits.  Town would not be paying anything for installation.  In any event, if the purchase price of the equipment exceeds $25,000.00 , question 1 would still need to be answered in the affirmative.

Thanks,
Joe Weaver

Joe Weaver
Attorney At Law
405.262.4040
405.262.4058 fax
joe@basslaw.netmailto:agbass@basslaw.net

[cid:image001.png@01D69BD8.11532070]
www.basslaw.net
104 N. Rock Island Ave.
P.O. Box 157
El Reno, OK 73036

NOTICE:
The information contained in this transmission is or may be protected by the attorney-client and/or the attorney work product privilege and is confidential. It is intended only for the use of the individual or entity identified above. If the reader of this message is not the intended recipient you are hereby notified that any dissemination or distribution of the accompanying communication is prohibited. No applicable privilege is waived by the party sending this communication. If you have received this communication in error, please notify us immediately by reply and delete the original message from your system.

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It's not bid splitting if the bid is not for installation and you are doing the installation yourself, but the company may not cut a deal that doesn't include the installation as that is where most of their profit margin comes in.

Making a timeline for a bargain is not a basis for emergency.  (which is clearly defined under the competitive bidding process).

Check and see if the equipment vendor is on any purchasing lists approved by state, then you don't have to bid under the statute (your ordinances may still require the bid or some other verification of checking prices of other vendors prior to approval)

Lou Ann Moudy
P.O. Box 266, Henryetta, OK  74437
(918) 652-3328

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From: Oama [mailto:oama-bounces@lists.imla.org] On Behalf Of Ray Jones
Sent: Tuesday, October 06, 2020 12:18 PM
To: Joe Weaver jweaver@basslaw.net; oama@lists.imla.org
Subject: Re: [Oama] competitive bidding

Just thinking off the top of my head, but, the Oklahoma Competitive Bidding Act, 61 O.S. sec.101 et seq, comes into play for bids exceeding $50,000.00.  But, it also applies to bids between $25,000 and $50,000, 61 O.S. sec. 103 (C). But, if the town is directly purchasing the equipment, materials and supplies from the vendor then that should fall outside of the OCBA. So even if the city has an ordinance, if the bid for the contract less the direct purchase of equipment material and supplies is between $25,000 and $50,000, the OCBA might still control.

Also, there is a public trust bidding law at 60 O.S. sec 176(h) that requires bids for all public contracts for construction, labor, equipment, material or repairs in excess of $25,000, if a Town's trust is making the purchase.

From: Oama <oama-bounces@lists.imla.orgmailto:oama-bounces@lists.imla.org> On Behalf Of Joe Weaver
Sent: Tuesday, October 6, 2020 11:42 AM
To: oama@lists.imla.orgmailto:oama@lists.imla.org
Subject: [Oama] competitive bidding

Town is looking to purchase playground equipment for Town park.  Vendor has program that expires at end of October that will save Town approximately $20,000.00 on purchase price.  Purchase price for equipment, plus installation, is $50,200.00.  Town ordinance requires going out for bid on purchases over $25,000.00.  Town has two questions:

1. Can Town pass emergency ordinance (to take advantage of discount) increasing the bid limit to $50,000 (hopefully vendor will discount another $200.00) and later in the same meeting approve the purchase of $50,000.00?  The emergency ordinance increasing the bid limit would be effective prior to action on the purchase.
2. Is it bid splitting if the Town purchases the equipment and installs the equipment itself.  The vendor's proposal provides separate costs for equipment and installation.  It seems these are two separate cost items and the Town would not be splitting the equipment cost and installation cost into two bids for the purpose of getting around bid limits.  Town would not be paying anything for installation.  In any event, if the purchase price of the equipment exceeds $25,000.00 , question 1 would still need to be answered in the affirmative.

Thanks,
Joe Weaver

Joe Weaver
Attorney At Law
405.262.4040
405.262.4058 fax
joe@basslaw.netmailto:agbass@basslaw.net

[cid:image001.png@01D69BF6.C07A9F10]
www.basslaw.net
104 N. Rock Island Ave.
P.O. Box 157
El Reno, OK 73036

NOTICE:
The information contained in this transmission is or may be protected by the attorney-client and/or the attorney work product privilege and is confidential. It is intended only for the use of the individual or entity identified above. If the reader of this message is not the intended recipient you are hereby notified that any dissemination or distribution of the accompanying communication is prohibited. No applicable privilege is waived by the party sending this communication. If you have received this communication in error, please notify us immediately by reply and delete the original message from your system.

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In answer to first question, if the ordinance increasing the competitive bid limit is passed with an emergency clause, then it is effective immediately.  So long as it is passed before the agenda item to approve the purchase under the new limit, it would be valid.  Make certain that the money is coming from the City and not the city's trust (which would be governed by the competitive limits under §176.1(i)).

In answer to second question, it would not be bid splitting so long as the City only purchases the equipment and doesn't come back to do the installation under a separate contract at a later date.

Jonathan E. Miller
City Attorney
City of Mustang
1885 Piedmont Road N., Suite B
P.O. Box 546
Piedmont, Oklahoma  73078
Telephone: (405) 883-6266
Facsimile: (405) 883-6155

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From: Oama oama-bounces@lists.imla.org On Behalf Of Joe Weaver
Sent: Tuesday, October 6, 2020 11:42 AM
To: oama@lists.imla.org
Subject: [Oama] competitive bidding

Town is looking to purchase playground equipment for Town park.  Vendor has program that expires at end of October that will save Town approximately $20,000.00 on purchase price.  Purchase price for equipment, plus installation, is $50,200.00.  Town ordinance requires going out for bid on purchases over $25,000.00.  Town has two questions:

1. Can Town pass emergency ordinance (to take advantage of discount) increasing the bid limit to $50,000 (hopefully vendor will discount another $200.00) and later in the same meeting approve the purchase of $50,000.00?  The emergency ordinance increasing the bid limit would be effective prior to action on the purchase.
2. Is it bid splitting if the Town purchases the equipment and installs the equipment itself.  The vendor's proposal provides separate costs for equipment and installation.  It seems these are two separate cost items and the Town would not be splitting the equipment cost and installation cost into two bids for the purpose of getting around bid limits.  Town would not be paying anything for installation.  In any event, if the purchase price of the equipment exceeds $25,000.00 , question 1 would still need to be answered in the affirmative.

Thanks,
Joe Weaver

Joe Weaver
Attorney At Law
405.262.4040
405.262.4058 fax
joe@basslaw.netmailto:agbass@basslaw.net

[cid:image001.png@01D69CBD.DDBE0C20]
www.basslaw.net
104 N. Rock Island Ave.
P.O. Box 157
El Reno, OK 73036

NOTICE:
The information contained in this transmission is or may be protected by the attorney-client and/or the attorney work product privilege and is confidential. It is intended only for the use of the individual or entity identified above. If the reader of this message is not the intended recipient you are hereby notified that any dissemination or distribution of the accompanying communication is prohibited. No applicable privilege is waived by the party sending this communication. If you have received this communication in error, please notify us immediately by reply and delete the original message from your system.

Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.