Section 18.020 Procurement & Contract Administration Policy & Procedures

Section A - Definitions

Competitive Bid Procurement means a procurement method by which 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 in price.

Competitive Negotiation Procurement means a procurement method by which proposals are solicited from a number of qualified sources and the award is made to the responsible bidder or offeror whose proposal is most advantageous to the Agency with price and other factors considered.

DBE Plan means the Agency's plan for Disadvantaged Business Enterprises (as defined by Federal Law).

Division Director means the Division Director of the Contracting and Program Development Division.

Executive Director means the Executive Director of the Agency or authorized designee.

Fair Market Value means the value of an item as determined by the amount offered by the highest bidder.

Independent Cost Estimate means a process whereby the estimated cost of a good or service to be procured is established by Agency staff or Agency representatives prior to the procurement; and the resulting estimate is used to assess the fair and reasonableness of an offered price.

Non-Competitive Procurement means a procurement method which involves the procurement of services from a single offeror.

Procurement Department means the Agency's Contracts and Procurement Department.

Responsible means a bidder or proposer who has all financial and technical capabilities to deliver materials or perform the work, i.e., adequate finances, capable of complying with required delivery, and has a satisfactory past performance.

Responsive means a bidder or proposer whose bid/proposal complies in all material aspects with the Invitation For Bids or Request For Proposal by the bid/proposal opening or closing date.

Section B - General Policy

1. It is the policy of the Agency to procure all needed goods and services (exclusive of real property) at the lowest total end-use cost, maintaining the highest quality standards, and in accordance with the Agency's DBE Plan. All procurement methods and processes shall be conducted in a manner that ensures fair and open competition among all qualified interested parties.
2. Contract administration methods shall be maintained to assure that goods and services received by the Agency meet the terms and conditions of the contract.
3. Procurement practices shall comply with laws, regulations and guidelines of the federal government, state governments and other political subdivisions or agencies and the provisions of grant or funding agreements, if applicable.
4. The Contracts and Procurement Department shall administer the procurement of all goods and services on behalf of the Agency except as otherwise provided by Board Policy or as approved by the Executive Director.

Section C - Procurement Methods

Generally, Agency procurement methods are dictated by provisions of federal law or grant or funding agreements entered into with public entities in connection with funding of particular procurements, projects or activities of the Agency. The Contracts and Procurement Department shall conduct procurements in accordance with procedures required by applicable law, if any, and the provisions of applicable grant or funding agreements, if any. Where no procurement procedure is required by provisions of applicable law or grant or funding agreements, the Contracts and Procurement Department shall establish procedures for such procurement which are designed to meet the policies of the Agency as set forth in this Article.

Section D - Award Criteria

1. The following factors shall be considered in awarding procurement contracts:
   1. conformance to solicitation requirements;
   2. bidder's or offeror's previous record of performance and quality;
   3. technical and financial capability of bidder or offeror to render satisfactory service; and
   4. value, price or cost as determined by the Agency's independent cost estimate and price or cost analysis.
2. Prior to award, bids and proposals must be determined to be responsive and responsible to all Agency requirements. Cost or price must be determined to be fair and reasonable and there must be an independent cost estimate and analysis to support such a determination. The Agency reserves the right to reject any and all bids, waive minor informalities and contract in the best interest of the Agency.
3. Competitive Bid Procurement awards must be made to the lowest responsive, responsible bidder.

Section E - Award Authority

1. The Board of Commissioners shall approve the following procurements:
   1. Competitive Negotiation Procurements which exceed $500,000
   2. Non-Competitive Procurements which exceed $100,000
   3. Procurements for a contract term, including options, which exceeds five (5) years
   4. Procurements which exceed the amounts budgeted or otherwise approved by the Board of Commissioners for such project, function or service
2. The Executive Director shall approve the following procurements, without further authorization by the Board of Commissioners, provided that (i) the term of such contract, including options does not exceed five (5) years, and (ii) the amount of such contract (which shall be calculated including all options) is within the amounts budgeted or otherwise approved by the Board of Commissioners for such project, function or service:
   1. Competitive Bid Procurements
   2. Competitive Negotiation Procurements which do not exceed $500,000
   3. Non-Competitive Procurements which do not exceed $100,000

Section F - Contract Options

1. The Executive Director may exercise contract options if they have been evaluated and determined to be in the best interest of the Agency. The following factors shall be considered in making such evaluation and determination:
   1. the continued need for the goods or services;
   2. the performance of the contractor;
   3. the fair and reasonableness of cost; and
   4. the availability of sufficient funds to cover the option cost.

The option price may not exceed the option price set forth under the initial contract and cannot exceed the amount budgeted by or otherwise approved by the Board of Commissioners for such project, function or service.

Section G - Contract Modifications

1. The Executive Director may enter into modification(s) to contracts awarded pursuant to this Article if the cost of the modification is within
   1. the amount budgeted, or otherwise approved, for that contract, by the Board of Commissioners; or
   2. is within the originally established contract contingency approved by the Board of Commissioners. Contract modifications which do not satisfy such parameters must be approved by the Board of Commissioners.
2. The Executive Director is authorized to extend contract performance periods up to 180 days in the aggregate beyond the original contract performance period; provided that no single extension shall exceed 90 days. Contract extensions in excess of 180 days must be approved by the Board of Commissioners.

Section H - Fuel & Energy Source Procurements

In order to take advantage of fluctuations in the volatile commodities' markets and procure fuel and energy sources in the most timely, cost-effective manner, the Division Director is authorized to procure fuel and energy sources (e.g. diesel fuel, natural gas, electricity and gasoline, etc.) through a competitive process approved by the Executive Director without approval by the Board of Commissioners of specific purchases.

Section I - Unsolicited Proposals

1. It is the policy of the Agency to encourage the submission of new and innovative ideas. Where such submissions are not in response to Agency solicitations, they shall be considered unsolicited proposals and
2. Unsolicited proposals may be accepted if:
   1. they have been thoroughly evaluated and determined to be in the best interest of the Agency;
   2. their cost has been determined to be realistic;
   3. there are sufficient funds to cover the cost; and
   4. the award of such procurement complies with the Agency's procurement policy and practices set forth in this Article.

Section J - Sale & Disposition of Assets & Property

1. It is the policy of the Agency to sell and dispose of assets and property no longer needed for Agency purposes. Such sale and disposition shall be for fair market value or appraised value, unless otherwise approved by the Board.
2. The Executive Director is authorized to approve contracts disposing of assets (excluding real property) having a fair market or appraised value up to $100,000. The Board of Commissioners shall approve all sales and dispositions in excess of $100,000 fair market or appraised value.

Section K - Code of Ethics & Conflict of Interest

1. Any Agency officer, commissioner, employee, or agent involved in procurement matters shall adhere to the Agency's Code of Ethics and Conflict of Interest policies.
2. No Agency Commissioner, employee or agent shall at any time prior to award of a procurement contract reveal technical and price information, other than information resulting from a public opening or a public meeting of the Board of Commissioners or its Committees.

Section L - Conflicts in Policy

In the event of any conflict between this policy and the provisions of applicable grant or funding agreements, the Executive Director shall resolve such conflicts in such a manner that is in the best interest of the Agency. If such resolution would violate the provisions of this Article or other Board Policy, Board of Commissioner approval is required.

Section M - Waiver of Policy

1. The Executive Director may waive this procurement policy, but only in an emergency. An emergency is any situation that requires immediate correction to avoid jeopardizing the health or safety of either the general public or Agency personnel, that jeopardizes public or private property, or which risks the interruption of service. The Executive Director shall immediately notify the Board Chair of any waiver of the provisions of this policy which require approval by the Board of Commissioners.
2. Any employee who deviates from this policy without the prior, written approval of the Executive Director or Board of Commissioners is subject to appropriate disciplinary action, including release from employment.

Section N - Management Procedures

1. All actions taken by the Executive Director and the Division Director shall be consistent with this policy.
2. The Division Director shall establish procedures to ensure compliance with all aspects of this policy.
3. The Division Director shall provide monthly reports to the Board relating to procurement activities which exceed $100,000, including contract modifications and award of options.

Section O - Procurement Records

The Division Director shall maintain records relating to procurements conducted by the Procurement Department which shall include:

1. the rationale for the method of procurement,
2. the basis of and authority for the award,
3. the basis for the contract price, and
4. any other documentation required by law, regulation, or funding or grant agreement, if applicable.