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December 21, 2009 (Regular Meeting) Page 172 8 NCGS ~ 143-129 allows local governments to purchase without a separate bidding procedure from any supplier that has, within the past twelve (12) months, contracted to furnish the item at issue to (1) the federal government or any federal agency, (2) the state of North Carolina or any agency or political subdivision of the state, or (3) any other state or agency or political subdivision of that state. This exception applies to the purchase of apparatus, supplies, materials, or equipment within the formal bidding requirements ($90,000 or greater). It cannot be used for construction or repair contracts, or contracts in the informal range. A. Legal Requirements/Bid Law The "piggybacking" exception, codified as NCGS ~ 143-129(g) states that the following requirements must be met: 1. Price and other terms and conditions of the contract must be at least as favorable as the prior contract; 2. The contract must be one that was entered into following a public, formal bid process "substantially similar" to the one set forth in NCGS ~ 143-129; 3. The County Board of Commissioners must approve all piggyback purchases at a regularly scheduled meeting; 4. Notice of intent to award the contract without bidding must be publicly advertised not less than ten (10) days prior to the Commissioners meeting at which the contract is schedule to be awarded; and, 5. Purchases may be made under the Piggyback authority only when the responsible officials determine it to be in the best interest of the County (suggesting that some effort should be made to determine that the price and terms offered by the supplier are as good or better than those that could be obtained through bidding). B. Procedures Before recommending a contract under the piggybacking exception to the Commissioners, Purchasing should ensure the following: 1. A certified copy of the contract, verifying the existence of the contract and that the contract is not more than twelve (12) months old; 2. Proof that the prior bid was the result of a public, formal bid process. The key aspects should be public advertisement and sealed competitive bids; and, 3. Any modifications to the original contract are not outside the scope of what was originally bid or would substantially increase the price. The vendor can provide more favorable terms or prices than those offered under the original contract. VII. TERM CONTRACTS / PRICE AGREEMENTS When a Department has a recurring requirement for specific items over a given time period, but the exact quantities and delivery time cannot be predicted, a Blanket Purchase Order is established. A term contract/price agreement allows a single competitive procurement to meet these needs rather than repetitive requisitions being used. VIII. PROCUREMENT CARDS (PCards) The procurement card program was established to provide a more rapid turnaround of requisitions for low dollar value goods, and to reduce paperwork and handling costs. Those who have been issued procurement cards may initiate transactions in-person, by telephone or via the Internet within the established limits of the policy and procedures. The established limit for PCard use is purchases less than $1,000. (Refer to Administrative Procurement Card Policies and Procedures) IX. PROFESSIONAL SERVICES Architect, Engineer or Surveyor Major architectural, engineering and surveying service contracts are managed by the General Services Department or County