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HomeMy WebLinkAboutN-562 - Block Grant FundsCITY OF PASCO ADMINISTRATIVE ORDERS Administrative Order No. 562 Community &Economic Development Subject: Procurement Policy for Block Grant Funds Initial Effective Date: October 12, 2010 Revised Approved I. PURPOSE: This Policy outlines the procurement process to be adhered to when a project is funded either wholly or in part with grant funds received from the US Department of Housing and Urban Development (HUD). Information in this document describes various methods of procurement, code of conduct, and suspension and debarment conditions that apply to HUD funded projects. II. DEPARTMENTS AFFECTED: All Departments receiving HUD -assistance for projects. III. REFERENCES: 1. 24 CFR 570.502, Applicability of uniform administrative requirements 2. 24 CFR 85.36, Procurement 3. OMB A-102, Grants and Cooperative Agreements with State and Local Governments IV. DEFINITIONS: The term "procurement," as used in this Policy, includes the procuring, purchasing, leasing, or renting of: (1) goods, supplies, equipment, and materials, (2) construction and maintenance; consultant services, (3) Architectural and Engineering (A/E) services, (4) Social Services, and (5) other services. The City Manager may delegate procurement authority as is necessary and appropriate to conduct the business of the City to the responsible Department Director to act as the Contracting Officer." V. POLICY: 1. Methods of Procurement The City of Pasco's CDBG and HOME funds procurement process follows regulations set forth in 24 CFR 85.36. The City generally has four different Methods of Procurement: Small Purchase Procedures; Sealed Bids; Competitive proposals; Non -Competitive proposals. a. Procurement for Small Purchases This procedure is used for the relatively simple and informal procurement methods for securing services, supplies or other property that do not cost more than the simplified acquisition threshold fixed at 41 U.S.C. 403(l 1) (currently set at $100,000). When small purchase procedures are used, price or rate quotations shall be obtained from at least two qualified sources. This shall be documented with a quote or invoices from all contacted sources or in a signed memo with information on all qualified sources contacted with prices. Generally these purchases shall be made from lowest quote, but if lowest quote is not selected a detailed explanation shall be documented. b. Procurement by Sealed Bids (formal advertising) Bids will be publicly solicited in the local newspaper and/or another publication outside the immediate area, for a minimum period of fifteen calendar days and a firm -fixed-price contract (lump sum or unit price) will be awarded to the responsible bidder whose bid, conforming with all the material terms and conditions of the invitation for bids, is the lowest in price. The sealed bid method is the City's preferred method for procuring construction. In order for sealed bidding to be feasible, the following conditions should be present: A complete, adequate, and realistic specification or purchase description is available; Two or more responsible bidders are willing and able to compete effectively and for the business; and The procurement lends itself to a firm fixed price contract and the selection of the successful bidder can be made principally on the basis of price. If sealed bids are used, the following requirements apply: The invitation for bids will be publicly advertised in the local newspaper and/or another publication outside the immediate area for a minimum of 15 calendar days from bid opening and bids shall be solicited from an adequate number of known suppliers; The invitation for bids, which will include any specifications and pertinent attachments, shall define the items or services in order for the bidder to properly respond; All bids will be publicly opened at the time and place prescribed in the invitation for bids; A firm fixed-price contract award will be made in writing to the lowest responsive and responsible bidder. Where specified in bidding documents, factors such as discounts, transportation cost, and life cycle costs shall be considered in determining which bid is lowest. Payment discounts will only be used to determine the low bid when prior experience indicates that such discounts are usually taken advantage of, and Any or all bids may be rejected if there is a sound documented reason. AO #562Procurement Policy for Block Grant Funds — Page 2 c. Procurement by Competitive Proposals Competitive proposals will be conducted with more than one source submitting an offer, and either a fixed-price or cost -reimbursement type contract will be awarded. It will generally be used when conditions are not appropriate for the use of sealed bids. If this method is used, the following requirements will apply: Requests for proposals will be publicized in the local newspaper and/or another publication outside the immediate area for a minimum period of fifteen calendar days. Any response to publicized requests for proposals shall be honored to the maximum extent practical; Proposals will be solicited from an adequate number of qualified sources; City staff will have a method for conducting technical evaluations of the proposals received and for selecting awardees; Awards will be made to the responsible firm whose proposal is most advantageous to the program, with price and other factors considered; and City will use competitive proposal procedures for qualifications -based procurement of architectural/engineering (A/E) professional services whereby competitors' qualifications are evaluated and the most qualified competitor is selected, subject to negotiation of fair and reasonable compensation. The method, where price is not used as a selection factor, can only be used in procurement of A/E professional services. It cannot be used to purchase other types of services though A/E firms are a potential source to perform the proposed effort. d. Procurement for Non -Competitive Proposals This procurement is done through solicitation of a proposal from only one source, or after solicitation of a number of sources, competition is determined inadequate. Procurement by noncompetitive proposals will be used only when the award of a contract is infeasible under small purchase procedures, sealed bids or competitive proposals and one of the following circumstances applies: The item is available only from a single source; The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation; The awarding agency authorizes noncompetitive proposals; or After solicitation of a number of sources, competition is detennined inadequate. 2. Code of Conduct The City hereby establishes this code of conduct regarding procurement issues and actions and will implement a system of sanctions for violations. This code of conduct, etc., is consistent with applicable Federal, State, or local law. AO #562Procurement Policy for Block Grant Funds — Page 3 a. Conflicts of Interest No employee, officer, or agent of the City may participate directly or indirectly in the selection, award, or administration of any contract if a conflict of interest, either real or apparent, would be involved. This type of conflict would be when one of the persons listed below has a financial or any other type of interest in a firm competing for the award: An employee, officer, or agent; Any member of his/her immediate family; His or her partner; or An organization which employs, or is about to employ, any of the above. b. Gratuities, Kickbacks, and Use of Confidential Information No officer, employee, or agent will ask for or accept gratuities, favors, or items of more than a minor economic value from any contractor, potential contractor, or party to any subcontract, and will not knowingly use confidential information for actual or anticipated personal gain. 3. Suspension and Debarment Contracts must not be awarded to debarred, suspended, or ineligible contractors. Contractor eligibility must be verified and documented prior to contract award. Contractors may be suspended, debarred, or detennined to be ineligible by HUD in accordance with HUD regulations (24 CFR Part 24) or by other federal agencies, e.g., Dept of Labor for violation of labor regulations, when necessary to protect the City in their business dealings. 4. Vendor Lists All interested businesses will be given the opportunity to be included on prequalified vendor lists, small work rosters, etc. Any lists of persons, firms, or products which are used in the purchase of supplies and services (including construction) shall be kept current and shall include sufficient resources to ensure competition. 5. Independent Cost Estimate For all purchases above the Micro Purchase threshold, the City will prepare an independent cost estimate (ICE) prior to solicitation. The level of detail will be commensurate with the cost and complexity of the item to be purchased. 6. Cost and Price Analysis The City shall require assurance before entering into a contract that the price is reasonable, in accordance with the instructions below. a. Petty Cash and Micro Purchases No formal cost or price analysis is required. Rather, the execution of a contract by the Contracting Officer (through a Purchase Order or other means) will serve as the Contracting Officer's determination that the price obtained is reasonable, which may be based on the Contracting Officer's prior experience or other factors. AO #562Procurement Policy for Block Grant Funds — Page 4 b. Small Purchases A comparison with other offers will generally be sufficient determination of the reasonableness of price and no further analysis is required. If a reasonable number of quotes is not obtained to establish reasonableness through price competition, the Contracting Officer will document price reasonableness through other means, such as prior purchases of this nature, catalog prices, the Contracting Officer's personal knowledge at the time of purchase, comparison to the ICE, or any other reasonable basis. c. Sealed Bids The presence of adequate competition should generally be sufficient to establish price reasonableness. Where sufficient bids are not received, and when the bid received is substantially more than the ICE, and where the City cannot reasonably determine price reasonableness, the City must conduct a cost analysis, consistent with federal guidelines, to ensure that the price paid is reasonable. d. Competitive Proposals The presence of adequate competition should generally be sufficient to establish price reasonableness. Where sufficient bids are not received, the City must compare the price with the ICE. For competitive proposals where prices cannot be easily compared among offerors, where there is not adequate competition, or where the price is substantially greater than the ICE, the City must conduct a cost analysis, consistent with federal guidelines, to ensure that the price paid is reasonable. e. Contract Modifications A cost analysis, consistent with federal guidelines, shall be conducted for all contract modifications for projects that were procured through Sealed Bids, Competitive Proposals, or Non -Competitive Proposals, or for projects originally procured through Small Purchase procedures and the amount of the contract modification will result in a total contract price in excess of S 100,000. d Date AO #562Procurement Policy for Block Grant Funds — Page 5 HUD - Methods Of Procurement Summary Table Small Purchases Sealed Bids Competitive Non - Proposals Competitive Micro Purchases 2,000 to $100,000 100,000 and 100,000 and Up to higher higher 2,000.00 Solicit Scope of Work Solicit ONE REASONABLE Specification RFP Obtain Bids quote In number of quotes IFB Factors Relative ONLY ONE Writing or Advertise Importance BIDDER Verbally In Writing Open Publicly EvaluateorVerbally Advertise Requires Available Competition only from a Requires Always an w Requires single source. Competition Apparent Low Competition Public Single Quote recommend a Bidder Awarded to exigency or Award Contract No minimum of Awarded to Most emergency Competition three} Lowest Cost Advantageous exits. Awarded to Fixed Firm Best Overall HUD Best Value" Price Value) Approves. Contract. Lack of completion 1. Price Analysis Signature Apparently Qualifications & Prove Cost signifies that obvious or price Price Analysis Cost} Cost AnalysisReasonablenessthecostis analysis 2• Cost Analysis reasonable. Qualifications ONLY} Independent Not Required Required Required Required Required Cost Analysis Bonding Required for Required for Requirements Not Required Not Required construction Not Required construction Contracts. contracts. Required for Required for Required for Required for Wage Rates Not Required construction & construction & construction construction maintenance maintenance contracts over contracts over contracts. contracts 2,000. 2,000. Check List of Parties Excluded from Federal Required Required Required Required Required Procurement Check List of Denial of Required Required Required Required Required Participation Documenting Historical Data or Historical Data or Written Summary Written SummaryRationaleforHistoricalDatawrittensummarywrittensummaryFindingofFact} Finding of Fact} Award Finding of Fact} Finding of Fact} AO #562Procurement Policy for Block Grant Funds — Page 6 PROCUREMENT FILE CHECKLIST Contract: Project No. Date: Item Micro Purchase Up to $2,000 Small purchase 2,000 to 100,000 Competitive Sealed Bid proposals 100 000 and Higher $100,000 and Higher Non - Competitive proposals Pre -Solicitation Independent Cost Estimate (ICE) Individual Procurement Plan Rationale for Contract Method (if not apparent) Rationale for Contract Type (if not apparent) Evaluation Plan Solicitation Sources (mailing lists, advertisements, etc.) u Solicitation Notice and Amendments IFB/RFP Notes of Pre-Bid/Proposal Conferences IFB/RFP Correspondences Record of Bids/RFPs Requested Quotes, Bids or Proposals Received Justification for Other than Full/Open Competition Evaluation Bid Opening Evaluation Panel Disclosures and Ethics Statement Technical Evaluation Price Evaluation Competitive Range Determinations Evaluation Findings of Fact Memo of Negotiation and Selection Decision Pre -award Contractor Responsibility Determination Suspension & Debarment Check Printouts Award Contract and Award Documents Notification to Unsuccessful Bidders Appeals (all correspondence) i Post -Award and Contract Administration Insurance and Bonding Requirements Records of Post -Award Conferences Notice to Proceed Contract Modifications and Supporting Documentation Receiving Reports General Contract Correspondence Payment Record/Documentation Inspections and Field Reports Completion Certificate AO #562Procurement Policy for Block Grant Funds — Page 7