City of
Procurement Policy
I. General Policy
A. Applicability
These procurement policies establish procedures and guidelines that shall be used for the purchase or procurement of personal property, supplies, equipment and services. All procurement shall be accomplished in compliance with applicable state and federal law. The purpose of these procedures is to facilitate the determination of the most efficient and economical means of securing commodities and services without sacrificing necessary control and good purchasing practice.
B. Procurement Law and Regulations
Laws relative to the procurement process, in general, may be found in Chapter 287, Fla. Statute. The provisions of these procurement procedures shall not be construed to conflict with or supersede the requirements of §287.055, Fla. Statutes, 24 Code of Federal Regulations (C.F.R.) Section 85.36 or any other applicable state or federal laws or regulations. In regard to procurement of commodities or services in connection with Community Development Block Grants, the U.S. Department of Housing and Urban Development (HUD) grant administration regulations relating to procurement are promulgated in Handbook 1300.17. This Handbook reprints the Office of Management and Budget (OMB) Circular A-102, Attachment O, which pertains to procurement standards and is hereby incorporated by reference. Future state or federal regulations applicable to procurement under the CDBG Program shall supersede and/or supplement this policy.
II. Procurement Standards
A. General Standards
Except as otherwise provided by law, procurement awards shall be made only on the basis of requirements and evaluation factors that are directly related to the price, quantity, or quality of the commodities or services or the ability of the prospective supplier or contractor to perform under the agreement.
Procurement procedures prohibit the dividing of the procurement of a good or service into a number of smaller groups in order to avoid the more stringent requirements of a higher dollar category (refer to §287.057(4), Fla. Statutes, 1989). However, this provision is not to conflict with the provision of 24 CFR 85.36(e) that the subgrantee take all necessary affirmative steps to assure that minority firms, women’s business enterprises and labor surplus area firms are offered the opportunity to participate to the maximum practicable extent.
B. Competition
All procurement
transactions will be conducted in a manner providing full and open competition
consistent with standards of Section 85.36 of the C.F.R. Some of the situations considered to be
restrictive of competition include but are not limited to:
The inability to obtain more than one bid, price quote or proposal shall not prohibit the approval of a purchase if other prospective vendors or contractors have been given adequate notice of the procurement and an opportunity to participate, and have declined to submit bids, proposals or price quotes. The declination to submit need not be in writing.
III. Procurement Administration
A. Efficiency Review
The City Superintendent, City Clerk, or other authorized representative or employee who approves each purchase shall review the proposed procurement to avoid unnecessary or duplicative items. In order to obtain a more economical, efficient or effective purchase, consideration shall be given to:
a) breaking out or consolidating purchases,
b) lease versus purchase alternatives,
c) interlocal agreements for purchases of use of common goods,
d) value engineering reviews,
e) use
of state of federal contracts for materials and/or services.
B. Performance Review
Contracts shall specify a contract manager, appointed by the local governing body, to ensure that the contractor performs in accordance with the terms, conditions and specifications of their contract or purchase order.
C. Records
Appropriate arrangements shall be made for the generation and maintenance of all files, records, and documentation necessary to evidence the compliance with all requirements as delineated in this document. All procurement shall comply with good purchasing practices and with applicable local, state and federal regulations, in a manner consistent with this document. A complete set of records shall be maintained by the entity responsible for the procurement for a minimum of 3 years. See section IB for applicable laws and regulations.
D. Written Agreements
Any procurement of commodities or services costing $1,001 or more shall be evidenced by a written solicitation embodying all provisions and conditions of the procurement. This requirement for written documentation may be met through preparation of a letter on municipality or vendor letterhead, signed by the vendor and appropriate elected and/or appointed official, stating such conditions and terms as price, number of units or purchase (e.g., ea., cs., bx., etc.) or product, delivery date, or when service is to begin, point of deliver, specification, etc. Any price quotes, warranties, guarantees, certifications or contracts shall be attached and filed.
E. Authorizations
Purchase orders or contracts shall be issued for all purchases and must be signed by the department head approving the purchase. The local governing body must authorize all purchases in excess of $2,001.
IV. Procurement Classifications
A. The following classifications are established:
|
Procurement Class |
|
Description |
Procurement Method |
|
1. |
$1 to 1,000 |
Simple Procurement |
Price Checks/ Simple Purchase |
|
2. |
$1,001 to 2,000 |
Intermediate Procurement |
Informal Competition, Written/Agreement |
|
3. |
Over $2,001 |
Formal Procurement |
Formal Competition (bids or proposals) Contract |
B. Simple Procurement (Not More Than $1,000)
Procurement is accomplished through simple purchase. Simple procurement procedures are those relatively simple and information procurement methods that are sound and appropriate for a procurement of supplies or other property, or services. Items or services under $1,001 do not require written price quotes or documented price checks. Appropriate notation of oral price quotes should be made for costs ranging from $250 to $1,000.
A reasonable and adequate number of price checks or quotes should be made by phone, personal inspection, discussions with vendors, etc., to ensure the highest quality product or service is obtained for the least cost to the procuring entity.
C. Intermediate Procurement ($1,001 to $2,000)
Procurement is accomplished by obtaining three written price quotes, when possible or through informal negotiation if the item or service is expected to cost less than $2,001. Files shall contain documentation of competition. No advertising is required but all procurement shall be evidenced by a written agreement embodying all provisions and conditions of the procurement. This requirement for written agreement may be met through preparation of a letter on municipality or vendor letterhead, signed by the vendor or appropriate elected and/or appointed official or representative, stating such conditions and terms as price, number of units of purchase (e.g., ea., cs., bx., etc.) or product, delivery date or when service is to begin, point of delivery, specifications, etc. Any price quotes warranties, guaranties, certifications or contracts shall be attached and filed.
D. Formal Procurement (Required over $2,001)
Formal Procurement includes the acquisition of commodities or securing services that are expected to cost $2,001 or more, and requires formal advertising and submission of competitive sealed bids, sealed proposals, or competitive negotiation.
Sealed bids are publicly solicited and a firm-fixed-price contract (lump sum or unit price) is awarded to the responsive bidder, who conforms to or exceeds all material requirements, terms and conditions of the invitation for bids and presents the lowest reasonable price that meets requirements and needs.
Sealed Bidding shall be used unless the municipality chief elected official or chief financial officer certifies in writing that sealed bidding is not practicable or advantageous, in which case procurement shall be based on sealed proposals, or on competitive negotiation when required by Florida Statutes.
The technique of competitive negotiation is normally conducted with more than one source submitting a proposal for services with either a fixed-price or cost-reimbursement type contract awarded. It is generally used when conditions are not appropriate for the use of sealed bids or proposals indicating fees. Florida Statutes shall determine the manner in which such negotiations are performed and the type of contractual services which are to be procured in this manner.
Noncompetitive negotiation shall he used when other types of procurement are infeasible (see paragraph VI).
V.
Solicitation and Award
A. Invitations for Bids
1. The invitation to bid is used when the procuring entity is capable of defining the scope of work for which a contractual service is required or when the procuring entity is capable of establishing precise specifications defining the actual commodity or group of commodities required.
2. Invitation to bid shall be a written solicitation for sealed competitive bids with the title, date, and hour of the public bid opening designated and which specifically defines the commodity, group of commodities, or services of which bids are sought. It includes instructions describing all conditions for bidding and shall be distributed (or available) to all prospective bidders simultaneously.
3. Sealed bids are required to be received at a specified place not later than a specified time and date. Failure to comply with any instructions pertinent to the delivery of such bids may result in their being rejected.
B. Request for Proposals (RFP)
A request for proposal (RFP) shall be a written solicitation for sealed proposals with the title, date, and hour of the public opening designated. The request for proposal is used when: (a) the procuring entity is incapable of specifically defining the scope of work for which the commodity, group of commodities or contractual service is required and when it requests that a qualified offeror propose a commodity, group of commodities or contractual service to meet the specifications of the solicitation document, or (b) when quality of performance is to be the primary factor for selection. With respect to competitive negotiations, a qualified offeror shall refer to the provisions of §287.055, Fla. Statutes (1989).
A request for proposal includes, but is not limited to, general information, applicable laws and rules, functional or general specifications, statement of work, proposal instructions and evaluation criteria. Requests for proposals shall state the relative importance of price and any other evaluation criteria.
C. Advertising
The advertisement must be written in a clear, concise manner and in a way which would invite competitive bidding. The advertisement shall contain at least the following minimum information:
1. time, date and location for receiving and opening bids or proposals (the date shall not be less than five (5) days after the final advertisement is published),
2. general description of the commodity or item requested,
3. where and how detailed specifications and bid forms (if applicable) may be obtained,
4. terms and conditions of the contract to be awarded,
5. criteria for selection of the vendor or contractor, including the relative weight to be given to the different factors, (See Appendix A),
6. other information relevant to evaluation and award (refer to §287.057(3), Fla. Statutes, 1989 and 24 CFR §85.36(a)(3)(i)).
The request shall be advertised at least in a local newspaper and circulated locally to a list of vendors in the area. The advertisements shall, as a minimum, allow one week for response, with two weeks preferable. Those local newspapers targeting a minority audience and associations of women or minority-based populations will be contacted (if they are known) for distribution of the request.
Sealed bids or sealed proposals will be received at any time during normal working hours prior to the time and date as specified. Each proposal shall be annotated with the time and date as received. The bids or proposals shall be placed in the applicable file and publicly opened and read at the time designated for the bid opening.
D. Evaluation
The contract shall be awarded to the lowest responsible and responsive bidder or proposer whose bid or proposal most completely meets the requirements and criteria set forth in the invitation for bids or request for proposals.
The term “responsible bidder or proposer” refers to the capability of a vendor or contractor to perform fully all aspects of the contract. Financial capability, integrity, and reliability of the bidder or proposer, all of which tend to ensure good faith performance, shall be criteria in evaluation of responsibleness.
The term “responsive bidder or proposer” means a bidder who has submitted a bid or proposal which materially conforms to all provisions of the specifications and the invitation to bid or request for proposal.
Evaluation criteria and requirements for bids set forth in the invitation for bids shall be used to determine the most responsible and responsive bidder. A technical review shall be performed on proposals in the following manner. A subjective ranking of bids or proposals by a majority of the elected officials, or by persons selected by the body to act on their behalf, shall be utilized as a method of selection (See Appendix A). Award shall be made to the responsible individual firm whose proposal is considered most advantageous to the program, with price and other factors considered.
In procuring services for grant administration, evaluations or vendors or service suppliers shall include a proven track record and sound reputation; adequate financial strength; high ethical standards; and a record of adhering to specifications, of maintaining shipping or service deliver schedules, and of giving a full measure of service. Consideration may also include the prospective contractor’s records of past performance under CDBG grants. This factor is not meant to exclude consideration of new firms, but rather, to include past performance and experience as a potential criterion.
All bidders will be notified that they were or were not selected for award of contract as soon as possible following the evaluation and decision process.
E. Multiple Service Awards
Vendors or service suppliers will be considered for multiple sources of supply or multiple services when it can be demonstrated that such vendors or services suppliers either are sole sources of the services or are the responsive proposer whose proposal is determined in writing as a result of a competitive process to be the most advantageous to local government.
For each service listed in §290.047(5), Fla. Statutes, 1989, when included in a multiple service contract, written determination of the need for a multiple service contract and the supporting documentation shall be maintained on file with the subgrantee (See Appendix B).
Any or all bids or proposals may be rejected where there are sound documented business reasons which are in the best interest of the procurer. Records of all proceedings for selection and/or rejection shall be maintained.
VI. Exceptions
The non-competitive negotiation method of procurement is solicitation of a proposal from only one source; or after solicitation of a number of sources (documented), competition is determined inadequate (Refer to 24 C.F.R. §85.36(d)(4)). It may be used only:
1. When procurement or award of contract is infeasible under simple or intermediate procurement or through formal (sealed bid) competition; and
2. Under one of the following circumstances:
a. The item is available only from a single source; or
b. Public exigency or emergency exists such that the urgency for the requirement will not permit a delay incident to competitive bidding; or
c. In the case where grant funds are being used, the federal or state (whichever is more stringent) grantor agency authorizes non-competitive negotiations; or
d. After solicitation of a number of sources, competition is determined inadequate (See Appendix B); or
e.
The contract item is available under a State of
Emergency purchases of up to $2,000 shall be authorized by the Chief Elected Official or designated alternate when, based on his/her decision, the delay incurred by following the normal procurement requirements would be detrimental to the best interests of the community.
VII. Affirmative Action/Equal
The City is committed to eliminating discrimination based upon race, color, sex, nation origin, familial status, age, or physical handicap. In grant programs, the City will comply with requirements of Section 3 (Use of the project area), Equal Employment Opportunity on Federally Assisted Construction Contracts, and Executive Order 11625 (Minority Business). Notice of the policy will be placed in plain sight on job location for the opportunity posters will be displayed as required.
An Equal Opportunity Officer, usually the Clerk, will be appointed. Duties will include coordinating local efforts in recruiting employees and soliciting bids, resolving complaints and submitting required reports.
The procuring entity will encourage the employment of local residents, especially those who have low to moderate income, and those who are female and/or of a minority racial/ethnic classification. This will be accomplished through the following methods for employment and hiring:
1. All employment opportunities will be publicly advertised, including the “equal opportunity employer” designation unless an internal promotion or upward mobility situation exists.
2. When appropriate, notification of employment opportunities will be issued to organizations such as the local schools, employment centers, minority organizations and social service agencies who may refer qualified applicants.
3. Recruitment practices, including those described in paragraphs one and two will be conducted in such a way as to include qualified minorities and females in all levels of responsibility and departments, in percentage to the general population and/or available work force, to the maximum practical extent.
4. When applicants are equally qualified in all other areas, preference will be given to hiring minorities and females in furtherance of the goals expressed above.
In accordance with the 1989 State Fair Housing Act (Fla. Stat. §760.20), the municipality and any contractors hired with CDBG funds shall not discriminate against any person in the terms, conditions, or privileges of sale or rental of a dwelling, or in the provision of services or facilities in connection therewith, because of race, color, national origin, sex, handicap, familial status, age, or religion. (See Section X on Protests for Complaint Procedure.)
VIII. Contracts
All contracts procured with state or federal funds shall contain applicable provisions as required by Fla. Statutes (specifically §287.058), Florida Administrative Rule, Federal law, regulation or Executive Order. Provisions shall include, but not be limited to, such requirements as bonding, equal employment opportunity, contract termination, record retention, public access to records, reporting, remedies for breach, conflict of interest, labor standards compliance, pre-audit and post-audit requirements, and compliance with environmental laws.
IX. Code of Conduct
No employee, officer or agent of the procuring entity shall participate in the selection, award or procurement of an application, administration, engineering or construction contract, if a conflict of interest, real or apparent, would be involved. Such a conflict would arise when (a) the employee, officer or agent, (b) any member of his immediate family, (c) his or her partner, or (d) an organization which employs, or is about to employ, any of the above, will receive a financial or other direct benefit of CDBG funds from the contract award. In any of these cases, the employee, officer or agent will abstain from voting on the award.
Officers, employees and agents of the procuring entity will neither solicit gratuities, favors or anything of monetary value, nor accept any unsolicited gratuity, favor or gift valued above $25 from contractors or potential contractors, or parties to sub-agreements.
Violation of the policy shall be subject to penalties, sanctions or other disciplinary action as permitted by state or local law. Upon conviction in a State Court of competent authority, a violator may be found guilty of a first degree misdemeanor, punishable as provided in Fla. Statutes §775.082 or §775.083.
X.
Protests
Objection to procurement shall be issued, in writing, to the chief elected official within 5 working days of purchase or selection to purchase under contract. A response shall be issued to the objecting party within 5 working days. An objection shall be considered valid only if it discloses a violation of this policy.
For employment discrimination, contact:
The
2401 E. Street, N.W.
1-800-872-3362
For housing discrimination, contact:
1-800-342-8170
This policy has been approved and
adopted this 7th day of May, 1991.