1. General Compliance
Ensure all purchases follow this policy; contracts outside the policy are invalid and non-binding.
Township employees must abide by ethical standards: no gratuities, personal benefits, kickbacks, or conflicts of interest.
Employees cannot manipulate purchases (e.g., splitting invoices to avoid thresholds).
2. Purchasing Thresholds & Requirements
< $5,000:
No PO required.
Department Head (or designee) approves.
Vendor pricing must be reviewed annually.
$5,000 – $9,999:
PO required.
Three verbal/written/electronic quotes required.
Final approval by Township Supervisor.
$10,000 – $34,999:
PO required.
Three written quotes electronically attached to PO.
Supervisor approves award.
$35,000+:
Formal competition (sealed bids, RFP, etc.).
Approval by Township Board of Trustees.
No PO required if Board contract exists.
3. Special Purchasing Cases
Emergency Purchases: Supervisor may authorize; must be reported to Board of Trustees.
Cooperative Purchasing: Allowed with other governments/school districts without competitive bids.
Professional Services: Exempt from POs/bids; vendor/pricing must be reviewed annually; Supervisor/Treasurer/Clerk define scope.
Sole Source: Allowed if only one qualified vendor; requires written justification and Supervisor approval.
4. Procurement Standards
Conduct cost analysis for all procurement actions.
Use blanket POs for recurring purchases >$10,000 (three quotes required).
Department Heads must verify quantity and quality of goods before submitting invoices.
5. Records & Documentation
Departments must maintain a bid file for each solicitation/award.
Procurement records retained per State of Michigan retention schedules.
All sole source or non-bid justifications must be electronically attached to PO.
6. Ethical & Legal Safeguards
Non-Discrimination clause required in all contracts.
Board of Trustees members cannot bid or subcontract on Township projects.
Contracts with former employees/Board members require Board approval.
Employees are prohibited from doing business with the Township.
7. Disputes & Remedies
Bid protests must be submitted within 7 days of award; Supervisor’s decision is final.
Contract claims must be submitted in writing; decisions issued by Department Head/Supervisor.
Township Supervisor may settle protests and claims.
Contracts found illegal must be canceled, revised, or terminated.