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1999-07 CDBG Procurement PolicyWHEREAS, the CITY OF OKEECHOBEE recognizes the need to establish standards and guidelines for the procurement of all services, equipment, construction and services in connection with the Community Development Block Grant program; WHEREAS, these standards exist to ensure that materials and services are obtained efficiently and economically and in compliance with the provisions of Fla, Admin. Code Rule 9B- 43.014(1) and OMB Circular 102, Attachment 0 (issued March 1, 1982), 24 CFR Section 85.36 and Chapter 287, Fla. Stat., as applicable; and WHEREAS, all procurement transactions, regardless of whether by sealed bids or by negotiation and without regard to dollar value, shall be conducted in a manner that provides open and free competition. NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL, CITY OF OKEECHOBEE, FLORIDA hereby adopts Community Development.Block Grant Procurement Procedures; RESOLVED, FURTHER, that the CITY ADMINISTRATOR. is designated to coordinate the implementation of said Procurement Procedures; RESOLVED, FURTHER, that all resolutions or parts of resolutions in conflict with this Resolution are hereby repealed to the extent of such conflict; and RESOLVED, FURTHER, that this Resolution shall become effective immediately upon adoption. ATTEST: A RESOLUTION ADOPTING COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM PROCUREMENT PROCEDURES DULY ADOPTED in the regular session this 15th day of June, 1999. BONNIE S. THOMAS, CMC, City Clerk REVIEWED FOR LEGAL, SUFFICIENCY: JOHN R. COOK, City Attorney RESOLUTION NO. 99-7 CITY OF OKEECHOBEE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM PROCUREMENT PROCEDURES Prepared by CITY OF OKEECHOBEE 55 S.E. THIRD AVENUE OKEECHOBEE, FLORIDA 34974 With Assistance from Craig A. Smith and Associates 242 Royal Palm Beach Boulevard Royal Palm Beach, Florida 33411 561 -791 -9280 TABLE OF CONTENTS Item Page I. General 1 II. Small Purchases 1 III. Emergency Purchases 1 IV. Competitive Sealed Bids 2 V. Competitive Negotiation 3 VI. Noncompetitive Negotiations 4 VII. Documentation 4 VIII. Protest Procedures 5 IX. Code of Ethics 5 X. Affirmative Action 6 XI. Travel Expenses 6 XII. Other Provisions 6 XIII. Minority Contractor Procurement Policy 8 ii I. GENERAL CITY OF OKEECHOBEE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM PROCUREMENT PROCEDURES These procurement procedures establish standards and guidelines for the procurement of all supplies, equipment, construction and services in connection with Community Development Block grants and will comply with the provisions of Fla. Admin. Code Rule 9B- 43.014(1) and OMB Circular 102, Attachment 0 (issued March 1, 1982), 24 CFR Section 85.36 and Chapter 287, Fla. Stat. as applicable. These standards exist to ensure that materials and services are obtained efficiently and economically and in compliance with the provisions of applicable federal and state laws and regulations. All procurement transactions, regardless of whether by sealed bids or by negotiation and without regard to dollar value, shall be conducted in a manner that provides open and free competition. Procurement shall be made by one of the following methods, as described below: (a) small purchase procedures; (b) competitive sealed bids (formal advertising); (c) competitive negotiation; or (d) noncompetitive negotiation. II. SMALL PURCHASES Small purchase procedures are those relatively simple and informal procurement methods that are sound and appropriate for procurement of services, supplies or other property, costing in the aggregate no more than $10,000.00. If small purchase procedures are used for a procurement, price or rate quotations shall be obtained from an adequate number of qualified sources. Inability or failure to obtain more than one quote or bid shall not prohibit the approval of a purchase, if it is demonstrated that 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 CITY ADMINISTRATOR or his/her authorized representative are authorized to purchase materials up to $10,000.00 without prior governing body approval. In all purchases, the lowest reasonable price or bid should be selected. Product or service availability, quality and other appropriate factors can be used in determining reasonableness. Price quotes are not necessary for items purchased under a State of Florida contract. III. EMERGENCY PURCHASES The governing body of the local government may authorize emergency purchases, in conformance with Section 287.057(11), Fla. Stat., if in the judgement of the governing body it is an emergency situation, that would severely impair the provision of essential local government services. 1 IV. COMPETITIVE SEALED BIDS Purchases greater than $10,000.00 shall be by competitive sealed bids, unless the CITY ADMINISTRATOR or his/her authorized representative certifies in writing that sealed bidding is not practicable or advantageous, in which case the procurement shall be competitive negotiation in conformance with Section 287.057(3), Fla. Stat. and 24 CFR Section 85.36(d)(3)(I). In the competitive sealed bids method of procurement (formal advertising), sealed bids are publicly solicited and a firm -fixed -price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming with all the material terms and conditions of the invitation for bids, is the lowest reasonable price. In order for formal advertising to be feasible, certain conditions must be present, including, at a minimum, the following: (1) a complete, adequate and realistic specification or purchase description; and (2) two or more responsible suppliers or contractors are willing and able to compete effectively for the business. However, the inability or failure to obtain more than one bid shall not prohibit the local government from approving the bid, if it is demonstrated that other prospective vendors or contractors have been given adequate notice of the procurement and an opportunity to participate and have declined to submit bids. When this method is used for a procurement, the following requirements shall apply. (1) At least twelve (12) days prior to the date set for opening of bids, the invitation to bid shall be publicly noticed in a newspaper of general circulation in the CITY as defined in Section 50.011, Fla. Stat. and at least one newspaper of regional circulation. (2) The invitation for bids, including specifications and pertinent attachments, shall clearly define the items or services needed in order for the bidders to properly respond to the invitation, state the deadline for submission of sealed bids, state the time and place when and where the sealed bids will be publicly opened and read aloud, and state bid bond requirements, if any. 2 (3) All bids shall be opened publicly at the time and place stated in the invitation for bids. (4) The criteria for selection of the vendor or contractor and awarding a firm- fixed- price or firm- fixed -unit -price contract shall be the responsible bidder whose bid, conforming to the invitation for bids, is the lowest reasonable price. Where specified in the bidding documents, factors such as discounts, transportation costs and life cycle costs shall be considered in determining which bid is lowest. The award notice shall be made in writing to the selected bidder. (5) The local government reserves the right to waive any minor irregularity or technicality or to reject any and all bids. V. COMPETITIVE NEGOTIATION In competitive negotiation, proposals are requested from a number of sources and a Statement of Qualifications and/or Request for Proposals is publicized. Negotiations are conducted with one or more of the sources submitting offers, and either a fixed -fee or cost reimbursable type contract is awarded, as appropriate. Competitive negotiation may be used if conditions are not appropriate for the use of competitive sealed bids. When this method is used for a procurement, the following requirements shall apply: Proposals shall be solicited from an adequate number of qualified sources to permit reasonable competition consistent with the nature and requirements of the procurement. The Statement of Qualifications and/or Request for Proposals shall be publicly noticed at least twelve (12) days prior to the date set for receipt of Statements of Qualifications and/or Request for Proposals in a newspaper of general circulation in the CITY as defined in Section 50.011, Fla. Stat. and at least one newspaper of regional circulation. (2) The Statement of Qualifications and/or Request for Proposals shall identify the deadline for submission of Statement of Qualifications and/or Request for Proposals, minimum qualifications, all evaluation factors, including price or cost where required and their relative importance. The review procedures shall provide mechanisms for technical evaluation of the proposals received, determinations of responsible offerors for the purpose of written or oral discussions, and selection for contract award. The CITY shall conduct a cost or price analysis of the proposed fee to establish that the fee proposed is "fair and reasonable." (4) An award of a fixed fee or cost reimbursable contract shall be made to the responsible offeror in writing whose proposal will be most advantageous to the local government, price and other factors considered. Unsuccessful offerors should be notified in writing. (1) (3) 3 (5) The local government will follow the Competitive Negotiation Act, Section 287.055, Fla. Stat. as amended, when procuring the services of architects or engineers. The provisions of these procurement procedures shall not be construed to conflict or supersede the requirements of Section 287.055, Fla. Stat. as amended, or any other applicable state or federal law. VI. NONCOMPETITIVE NEGOTIATIONS Noncompetitive negotiation is procurement through solicitation of a proposal from only one source, or after solicitation of a number of sources, competition is determined inadequate. Noncompetitive negotiation may be used when the award of a contract is infeasible under small purchase, competitive sealed bids or competitive negotiation procedures. Circumstances under which a contract may be awarded by this method are limited to the following: 1. The item is available only from a single source; 2. Public exigency or emergency when the urgency for the requirement will not permit a delay incident to competitive solicitation; 3. After solicitation of a number of sources, competition is determined inadequate; 4. The contract item is available under a State of Florida negotiated blanket contract; or 5. The goods and/or services are procured from another unit of government. For procurements exceeding $25,000, the local government shall obtain from the Florida Department of Community Affairs written permission prior to entering into any contract procured as a result of inadequate competition, a sole source or a non competitive procurement negotiation based upon whether the criteria in 24 CFR Section 85.36 have been satisfied. For contracts below $25,000, the recipient's files must document the justification for procurement with inadequate competition from a sole source or based on non competitive negotiation pursuant to 24 CFR Section 85.36. VII. DOCUMENTATION All procurement transactions must be documented. Regardless of the method of procurement chosen, the local government must retain records to demonstrate its rationale for choosing the method of procurement, contractor qualifications, contract specifications or scope of work and the basis for selection or rejection of the contractor. Contract records must also document the basis for the contract price. Purchases other than small purchases must be approved by the governing body and such authorization must be reflected in the minutes. 4 All procurement invoices should be signed by the CITY ADMINISTRATOR. Financial data in support of payments must also be maintained. This documentation includes vouchers, invoices, contracts, checks, budget transfer memoranda, and other transaction documentation. Vouchers and invoices should document verification before payment to ensure programmatic, financial and contractual compliance. VIII. PROTEST PROCEDURES Complaints or protests regarding local actions shall be submitted in writing to the chief elected official. The complaint or protest must be filed within fifteen (15) days of the occurrence with the chief elected official. The complaint or protest will be investigated as to determine validity of the issue. The issue will then be brought to the attention of the governing body for review, however, their review is limited to violations of law or regulations or failure to review a complaint or protest. IX. CODE OF ETHICS No employee, officer or agent of the local government shall participate in selection, or in the awards or administration of a contract supported by public funds if a conflict of interest, real or apparent, would be involved. Such a conflict would arise when: (1) An employee, officer or agent of the local government; (2) Any member of his or her immediate family; (3) His or her partner; or (4) An organization which employs, or is about to employ, any of the above has a financial or other interest in the firm selected for the award. Local government officers, employees or agents shall neither solicit nor accept gratuities, favors or anything of monetary value from contractors, potential contractors, or parties to sub agreements. However, minimum rules may be set where the financial interest is not substantial or the gift is an unsolicited item of nominal intrinsic value. To the extent permitted by State or local law or regulations, such standards of conduct shall provide for penalties, sanctions, or other disciplinary actions for violations of such standards by local officers, employees, or agents, or by contractors or their agents. All public employees, officers or agents of the local government are further bound by the provisions of Section 112.313, Fla. Stat., the statutory code of ethics covering all public employees, including elected officials. 5 X. AFFIRMATIVE ACTION The local government is committed to eliminating discrimination based on race, color, religion, sex, national origin, age, or physical handicap. XI. TRAVEL EXPENSES All travel payments shall conform to the allowances provided in Chapter 112.061, Fla. Stat. as amended. Reimbursement for travel expenses will be paid to an employee only after the submission of an itemized statement of expenses. XII. OTHER PROVISIONS While the local government certifies its procurement procedures meet or exceed the minimum standards applicable to Community Development Block Grant administration, the local government recognizes the special purchasing requirements of the state's Community Development Block Grant Program. In addition, the local government agrees to follow any purchasing procedures as outlined in the federal and state administrative rules for the Community Development Block Grant Program in effect at the time of a grant award. 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 or quality of the commodities or services or to the ability of the prospective supplier or contractor to perform under the agreement. In evaluating the ability of a prospective contractor to perform, the local government shall at a minimum consider the prospective record of past performance under Community Development Block Grants. In procuring services for grant administration, the local government shall evaluate in writing any economies of scale or other means of securing efficiency that may be available as a result of the type, number and geographic distribution of grants to be administered by the local government or by a prospective grant administrator. The local government shall not contract with the same individual or business entity for more than one of the services listed in Section 290.047(5), Fla. Stat. as amended, unless for each such service, it can document that such individual or entity is the sole source for the service or is the responsive proposer whose proposal has been determined in writing, as a result of a competitive process in accordance with the local government's procurement procedures, to be the most advantageous to the local government. Written determination of the need for multiple services from the same contractor and supporting documentation must be maintained on file with the local government throughout the grant term. In accordance with U.S. Department of Housing and Urban Development Circular Letter 81 -69, unlike services, such as grant application preparation, administering Community Development Block Grant programs, engineering services, and the like must not be lumped together in a single contract. All contracts for professional services shall conform to the following: 6 (1) Any Request for Proposals which includes more than one service shall provide that: a. proposals may be submitted for one or more of the services; b. proposals will be considered on an equal competitive basis; c. qualifications and proposals should be separately stated for each service; d. the evaluation of the proposals should be separate for each service. (2) A written evaluation, such as a ranking sheet or narrative, shall be prepared for each proposal, ranking or comparing each proposal to the criteria in the published Request for Proposals. Based on that criteria, this written evaluation will document why the successful proposal was selected. A separate professional services contract must be procured and executed between the local government and the consultant for each particular Community Development Block Grant. Each advertisement for procurement of Community Development Block Grant professional services, except for grant application preparation, must specify the scope of work, program category and Community Development Block Grant cycle by federal fiscal year, grant number provided by the Florida Department of Community Affairs, or application due date. (4) Those types of services having a relatively undefined scope, such as program management or administration, and those services of a more defined scope, such as engineering or architectural design, must be separated from each other into individual contracts; Each services contract must identify by grant agreement number and individual project the grant to which it is applicable. 24 CFR Part 85 establishes that a general conflict may exist where a local government awards a multi service contract to a firm to administer its Community Development Block Grant program, while at the same time the same firm is to provide a service, such as engineering, where the administrator must oversee and approve its own work. In such cases where the administrator oversees its own engineering services, the services of an independent third party shall be obtained to provide the necessary oversight and approvals. All procured contracts shall conform to 24 CFR 85.36(I) and Section 287.055, F.S. If Community Development Block Grant and other sources of funding are being jointly used to fund activities under a single contract (excluding housing construction or housing rehabilitation contracts), the activities to be paid for with Community Development Block Grant funds must be shown as a separate line item or alternative (deducted or added) in the procurement documents. Conununity Development Block Grant funded activities shall be separately stated so that 7 XIII. MINORITY CONTRACTOR PROCUREMENT POLICY It shall be the policy of the CITY OF OKEECHOBEE, to the greatest extent possible, to promote opportunities for minority business enterprises to be awarded contracts for contractual services, commodities and construction work with the CITY. Minority business enterprise is defined as any business concern which is organized to engage in commercial transactions, which is at least 51 percent owned by minority persons and whose management and daily operations are controlled by such persons. In accordance with this policy, the CITY shall implement the following steps: Approved by CITY COUNCIL on the 15th day of June, 1999. ATTEST: Community Development Block Grant funded activities are readily identifiable and quantifable. This shall be done to clearly denote the Community Development Block activities and the amount of a contract to be paid from Community Development Block Grant funds. (9) All contracts covered by Section 3 regulations shall contain the language required in 24 CFR 135.38. 1. Utilize the Florida Chamber of Commerce, Florida Department of Labor and Employment Security Certified Minority Business Enterprises, listings of federal agencies and other appropriate sources to identify minority business concerns; 2. Maintain and update a listing of minority business concerns; 3. Notify minority business concerns of contracting opportunities with the CITY; and 4. Maintain records (copies of memoranda, correspondence, etc.) to document that all steps in the Affirmative Action Plan for Procurement of Contractual Services have been followed. MAY 8