from the latest handbook for selectmen.

Contracting Authority :
Towns enter into contracts for a variety of purposes. Contracts are made in the name of the town and under the authority granted to the town by state laws and town bylaws. Under Chapter 40, Section 4, a town “… may make any contract for the exercise of its corporate powers, on such terms and conditions as are authorized by the town meeting … [and] a town may not contract for any purpose, on any terms, or under any conditions inconsistent with the applicable provision of any general or special law.” This section of law does not expressly authorize any town officer or board to sign contracts. In general, authorization to sign contracts must be set forth in town bylaws, charter or by vote of the town meeting. Additionally, a contract is not valid unless all the necessary legal requirements are met, and there is a prior appropriation. Generally, a board or official may be authorized to enter into a contract and may negotiate terms and conditions. A contract cannot exceed three years unless a longer term is authorized by town meeting, town bylaws, or a charter. Under Chapter 30B, many communities have voted to authorize, in general, contracts in excess of three years. A town may also enter into an agreement with one or more other governmental units to jointly perform services or undertake any activity that the town could undertake independently. These are generally referred to as inter-municipal agreements [G.L. c. 40, §4A], and the board of selectmen may authorize such contracts.

There are several different statutory schemes governing public bidding procedures for municipal contracts. The primary laws are the Uniform Procurement Act [G.L. c. 30B], the law relating to public works contracts [G.L. c. 30, §39M], and the law relating to public building construction [G.L. c. 149, §§44A-M]. The Uniform Procurement Act The Uniform Procurement Act governs the general bidding procedures for the procurement of all town supplies and services costing $10,000 or more, unless the particular contract is contained in the list of exemptions, such as solid waste, engineering, insurance contracts, legal services, and certain professional service agreements. (This extensive list is found in Section 1 of Chapter 30B.) For procurements under $10,000, sound business practices are to be followed. The following chart gives a general overview of the procurement process thresholds. As the law is amended from time to time, it is important to be sure that the most current requirements are being followed. (This chart was updated by the Office of the Inspector General, which administers the Uniform Procurement Act, in May 2014.)



1. G.L. c. 30B, §2, defines sound business practices as “ensuring the receipt of favorable prices by periodically soliciting price lists or quotes.” 2. G.L. c. 30B, §2, defines a responsible bidder or offerer as “a person who has the capability to perform fully the contract requirements, and the integrity and reliability which assures good faith performance.” 3. G.L. c. 30B, §2, defines a responsive bidder or offerer as “a person who has submitted a bid or proposal which conforms in all respects to the invitation for bids or request for proposals.” 4. G.L. c. 30B, §17(a), states, “All contracts in the amount of [$10,000] or more shall be in writing, and the governmental body shall make no payment for a supply or service rendered prior to the execution of such contract.” 5. G.L. c. 30B, §12(b), states, “Unless authorized by majority vote, a procurement officer shall not award a contract for a term exceeding three years, including any renewal, extension, or option.” If the chief procurement officer determines that selection of the most advantageous offer requires a comparative judgment of other factors as well as price, the town may issue a request for proposals (RFP). This procedure requires the submission by each offerer of separately sealed price and nonprice proposals. The non-price proposals are opened first and evaluated and ranked in accordance with published evaluation criteria. After the evaluation, the price proposals are opened and a contract  may be awarded to the person offering the most advantageous proposal, taking into consideration price and the evaluation criteria.

Public Building Projects If the contract involves the construction, reconstruction, installation, demolition, maintenance or repair of any building by the town, the process to be used depends on the estimated costs. For projects estimated to cost in excess of $25,000, the contract must be awarded in accordance with the filed sub-bid law [G.L. c. 149, §§44A-44M]. This law requires the preparation of written specifications and an invitation for bid, the separate solicitation of filed sub-bids and general bids, advertisement of the contract in accordance with established procedures, and the award of the contract to the lowest responsible and eligible bidder. A building is defined as any building with four walls and a roof, not including sewer or water pumping stations. Design Services for Public Buildings If a contract involves the procurement of design services for a public building project where the estimated cost of construction exceeds $100,000 and the design contract exceeds $10,000, the contract must be awarded in compliance with designer selection procedures established by the town in accordance with state law [G.L. c. 7C, §§44-57]. Construction Materials Not Involving Labor Municipalities may use the bid procedures contained in Section 5 of Chapter 30B for contracts for construction materials if the purchase entails no labor [G.L. c. 30, §39M(d)]. The bid procedures of Chapter 30B, Section 5, differ slightly from those of Chapter 30, Section 39M

The municipal modernization act may have affected some of this as this handbook was prepared in 2014.

posted by Jeff Bennett