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