| Definitions |
Policy No.: |
G-000 |
| Supercedes No.: |
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| Effective Date: |
Page No.: |
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For the purpose of this manual, the following terms, phrases, words, and their derivations shall have the meanings given herein:
Agent: This refers to a person authorized by someone else, called the Principal, to act for him or her.
Authorized Personnel: Those persons approved to perform designated function.
Bid: A price offer by an intended seller or an intended buyer.
Bid Advertisement: A public notice placed in a newspaper of general circulation containing information about an Invitation for Formal Bid (IFB) or Request for Proposal (RFP).
Bid Bond: A bond that legally binds the bidder to accept a contract or forfeit the amount of the bond.
Bidders List: A list of vendors who have signified in writing an interest in submitting bids for particular categories of goods and services.
Bid Opening: The act of publicly opening the bid envelopes and making the bids available for public inspection.
Capital Expenditure: An expenditure that results in the acquisition of, or an addition to a fixed asset.
Cataloged Inventory: Items contained within the Town inventory system and kept on hand for future use.
Change Order: The written order to a purchase order or contract authorizing an addition, deletion or revision in the work, price or contract time, issued after the execution of the purchase or contract.
Contract or Agreement: A formal, written agreement executed by the Town and a vendor containing the essential terms and conditions under which goods or services are to be furnished to the Town.
Contractor: Any person or business having a contract with the Town.
Department: An organizational unit within Town government that is responsible to the Town Administrator, or designee.
Division: An organizational unit within a Town Department that is responsible to the head of a department, or designee.
Emergency Purchase: The purchase of supplies and/or services whose immediate procurement is essential to prevent delays which may vitally affect the life, health, safety, or convenience of citizens or serious loss or injury to the Town.
Employee: An individual employed by the Town and compensated with wages.
Fixed Assets: Individual tangible items, either original or replacement that have useful life expectancy beyond one year and a cost of $500.00 or more.
General Services Manager: The director of the Town's purchasing program. This position reports to the Director of Finance.
Goods: Includes in property to be purchased by the Town, including equipment, supplies, materials, and component or repair parts.
Invitation to Bid (IFB): Formal bidding documents issued by the Town, accompanied by a bid advertisement requesting pricing from vendors for specified goods or services.
Lease: A contract for the use of real estate or personal property for a term in return for a specified rent or other compensation.
Lowest Responsible Bid: The lowest bid or offer meeting all requirements of the specifications, terms, and conditions of the invitation for bid. It is expressly understood that the lowest responsible bid includes any related costs to the Town in a total cost concept. The term “responsible” refers to the financial and practical ability of the bidder to perform the contract.
May: Denotes the permissive.
Mayor and Board of Aldermen: The legislative and governing body of the Town.
Performance Bond: A bond provided in connection with a contract that guarantees the performance and fulfillment of all the terms, conditions, and agreements contained in the contract.
Policies: Policies, as referred to in this manual, are predecisions made by administration for the purpose of giving information and direction. Policies establish basic philosophies and climate and determine the major values upon which the Purchasing Policies and Procedures Manual functions must operate.
Procedures: Procedures are the prescribed means of accomplishing policy. Their intent is to provide company personnel with the guidelines and, where appropriate, the specific action sequences to ensure uniformity, compliance, and control of all policy-related activities.
Procurement: Purchasing, renting, leasing or otherwise acquiring any supplies, services or construction.
Purchase Order: An order by the Town for the purchase of goods and services written on the Town's standard Purchase Order form and which becomes a contract when accepted by the vendor without qualification within the specified time limit. This is the vendor's authority to deliver and invoice for goods or services specified, and the Town's commitment to accept the good or services for an agreed upon price.
Purchase Requisition: A request generated by a user department which authorizes the Purchasing Division to enter into a contract with a vendor to purchase goods or services for the Town and to charge the appropriate user department budget or project. This is for internal use and cannot be utilized by the user department to order materials directly from a supplier.
Purchasing: The act, function, and responsibility for the acquisition of goods and services.
Request for Proposal (RFP): Formal documents issued by the Town requesting offers to be made by vendors to provide goods or services, which allow for negotiations after proposals are received but before award of the contract.
Responsible Bidder: A person or business that has the capability in all respects to perform fully the contract requirements, and has integrity and reliability that will assure good faith performance.
Responsive Bidder: A person or business that has submitted a bid that conforms in all material respects to the bid solicitation.
Sealed Bid: An offer submitted in a closed envelope to be opened at a specific time and place.
Shall: Denotes the imperative.
Services: Includes all work or labor performed for the Town on an independent contractor basis, including maintenance, construction, manual, clerical or professional services.
Sole Source: That only one supplier of an item or service exists.
Specification: A statement containing a detailed description or enumeration of particulars, as to the terms of a contract, detailed description of the physical or functional characteristics of a goods or services.
Statutes: These are laws passed by Congress or a state legislature and signed by the President of the United States or the Governor of a State, respectively, that are codified in volumes called “Codes” according to subject matter.
Surplus Property: Town owned property that is no longer required or has no practical use by the Town.
Town: The Town of Collierville, Tennessee.
Town Administrator: The chief administrative officer of the Town, appointed by the Mayor and Board of Aldermen.
User Department: The organizational unit within the Town that utilizes supplies, services or construction.
Vendor: Any individual or business conducting business or seeking to do business with the Town.
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of the Civil Rights Act of 1964 (42 U.S.C. 200d) and the
Americans with Disabilities Act of 1990, Pub. L 101-336.
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