[Michlib-l] Information on Purchasing Policies and Bidding Policies for Libraries

[Membiela, Clare (MDE)]

Hello:

There have been a few requests for information pertaining to the receiving of bids for repair, construction , and other Public Library purchases and contracts.

Currently, there are very few Michigan statutes that require municipal entities to solicit bids for purchases.

Today, whether or not a library MUST open a purchase up  to bidding generally depends largely on where they are located. Requirements for bids are now generally levied at the municipal level.

If a library is unsure of the rules relating to whether they must initiate a bidding process for a repair or other purchase, or, if they are unsure as to the procedure to be followed in such a bidding process, their best, and safest bet is to consult with the Treasurer or Financial supervisor of their municipality.

Certain municipalities, such as Fourth Class Cities, are covered under State laws with regard to bidding (Fourth Class cities are those cities with 10,000 people or less) (MCL 108.5<http://legislature.mi.gov/doc.aspx?mcl-108-5>)

In addition to local, municipal requirements, certain types of purchases may require a bidding process. For example, if the purchase/project is funded with State or Federal funds,  or certain Grant monies, then the source of the funding should be consulted to determine if there are requirements for purchases using those funds.

District Libraries are not required to utilize bidding, but, as noted below, many do because bidding is a generally accepted best practice- especially if implemented above a certain monetary level.


It should be noted, that even if a library does not have a legal requirement to use a bidding process to make purchases - especially large purchases (over $2,000 or $3,000), there are good arguments to use bidding as a way to make large purchases:

Bidding processes are generally considered to be good fiscal practice
Bidding processes encourage transparency with regards to how public money is spent (and therefore protects both the public and the public employees)
Bidding processes can enhance and encourage the growth of entrepreneurs and small businesses, and can open the market to more diverse vendors - which can be good for a local community

All libraries should have written purchasing policies as part of their financial plans and processes. Below I have linked to some resources that may be helpful:

https://www.mml.org/pdf/resources/publications/ebooks/HMO_by_chapter/CH%2020%20Purchasing.pdf (Michigan Municipal League chapter on Municipal Purchasing from "Handbook for Municipal Officials"P)

http://www.michigan.gov/documents/treasury/AccountingProceduresManual_202967_7.pdf (Michigan Dept. of Treasury Accounting Procedures Manual)
http://www.michigan.gov/documents/libraryofmichigan/LM_2014_PublicLibraryFinancialManual_468907_7.pdf (Public Library Financial Management Guide)

http://www.kdl.org/sites/default/files/kdl-policy-manual.pdf Sample Purchasing Policy - Kent District Library (See Policy 5.2)


As always, please consult your accountant, and attorney in order to determine the best policy for your library.

I hope this is helpful! Please do not hesitate to contact me if I can ever assist!

Sincerely,
Clare

Clare D. Membiela, MLS, J.D.
Library of Michigan
MembielaC at michigan.gov<mailto:MembielaC at michigan.gov>
517-335-8132

The research and resources above are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem.


Each April, Michigan celebrates the Month of the Young Child(r). Go to www.miaeyc.org<http://www.miaeyc.org> to learn more.

[Description: Description: cid:image001.jpg at 01CBED4E.B36258B0]

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mail3.mcls.org/pipermail/michlib-l/attachments/20170411/bf94de10/attachment.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 2485 bytes
Desc: image001.jpg
URL: <http://mail3.mcls.org/pipermail/michlib-l/attachments/20170411/bf94de10/attachment.jpg>