2015-R-27 RESOLUTION NO. 2015-R-27
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF EDGEWATER, FLORIDA, UPDATING/RESTATING
THE CITY OF EDGEWATER'S PURCHASING POLICY;
REPEALING ALL RESOLUTIONS IN CONFLICT
HEREWITH AND PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS, pursuant to the City Charter, the City Manager has the responsibility for
managing a purchasing program for the City;
WHEREAS, the City Manager requests that City Council update/restate the existing
Purchasing Policy that the City of Edgewater approved during the Council meeting held on
March 3, 2014 pursuant to the adoption of Resolution#2014-R-03.
WHEREAS, in an effort to be consistent with current laws and policies, City Council
wishes for the City of Edgewater to update/restate the existing City of Edgewater Purchasing
Policy.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Edgewater, Florida:
Section 1. The City Council hereby updates/restates the City of Edgewater
Purchasing Policy and all purchases as provided for therein shall be procured in accordance with -
said policy, a copy of which is attached and incorporated herein as Exhibit"A". -
Section 2. All conflicting purchasing policies are superseded by this policy.
Section 3. All resolutions or parts of resolutions in conflict herewith are hereby
repealed.
(Resolution/4 201 5-R-27)
Section 4. This resolution shall take effect upon adoption.
After motion by : 1, l.,,a and second by ,the vote on this
' qft L'1 -r
resolution was as follows:
AYE NAY
Mayor Mike Ignasiak �(
Councilwoman Christine Power X
Councilwoman Gigi Bennington �(
Councilman Dan Blazi �(
Councilman Gary Conroy
PASSED AND DULY ADOPTED this 1 7+h day of August, 2015.
ATTEST: CITY COUNCIL OF THE
CITY OF EDGEWATER, FLORIDA
� � / j ,� ,��
f�1�LQ: ll1L By: /K �i0(./)Bonnie Brown Mike Ignasiabi
City Clerk Mayor
Robin L. Matusick
Paralegal
For the use and reliance only by the City of Approved by the City Council of the City of
Edgewater, Florida. Approved as to form and Edgewater at a meeting held on this /play
legality by: Aaron R. Wolfe, Esquire of August, 2015 under Agenda Item No.
City Attorney 81. .
Doran, Sims, Wolfe &Ciocchetti
(Resolutions#2015-R-27)
EXHIBIT"A"
(Resolution/#2015-R-27)
Purchasing Policy
City of Edgewater, Florida
City of
EDGE WATER
August 17, 2015
Resolution No. 2015-R-27
FOREWORD
The Finance Department prepared this "Purchasing Manual" to serve as the basis for
purchasing policies and procedures for the City of Edgewater.
The City Council of Edgewater. Florida, recognizes that some centralized purchasing is
a necessary function of effective government and declares it shall be the responsibility
of the Finance Department Director to consider opportunities to centralize some
purchases of supplies,equipment, and services for various functions within the City.
The purchasing function involves the procurement of materials, supplies, equipment,
and services at best value, consistent with the quality needed to meet the required
standards established and approved by the Edgewater City Council. Our goal is the
promotion of the best interest of the City of Edgewater through intelligent action and fair
dealings. resulting in obtaining maximum savings for the City.
Rules and regulations are necessary for the proper operation of the purchasing function
and it is essentiai all who are involved in the purchasing operation be well informed.
This manual was developed to aid all employees. volunteers and Board Trustees
directly or indirectly associated with the function of purchasing.
All City Departments and Boards shall comply with this Purchasing Policy. Florida
Statutes will prevail for all Items not expressiy covered within this Purchasing Policy. All
it divdivals required to submit a siate,inent of financial interest with the Supervisor of
Elections will do so in accordance with the requirements of the State of Florida.
The objectives of the Finance Department are as follows:
1. To deal fairly and equitably with all vendors wishing to do business with
the City of Edgewater.
2. Provide professional procurement services for all our customers within the
City.
3. Assure adherence to all laws. regulations, and procedures related to City
procurement.
4. Maximize competItion for all procurements of the City.
5. Obtain maximum savings through innovative buying and application of
value analysis techniques.
6. Purchase goods and services at the best value if not lowest price.
consistent with quality performance, and delivery requirements from
capable vendors meeting the City's requirements.
Purchase goods and services at the best value if not lowest price, consistent with
Iquality performance, and delivery requirements from capable vendors meeting the C4fs
peg-6.4-e en s
2
• l Formatted:Justified,Tab stops:Not at 0.19" ,
l Formatted:Justified J
3
TABLE OF CONTENTS
SECTION TITLE PAGE
I Requisitions 4
II Purchase Orders 7
III Solicitation and Approval Level Thresholds 8
IV Emergency Purchases 11
V Change Orders 12
VI Blanketllnverted Purchase Orders 13
VII Quotations and Bids 14
VIII Competitive Procurements (IFBITB, RFP. RFI. RFQ) 23
IX Professional Services(CCNA) 24
X Procedures for Multiple Consultants under CCNA 27
XI Design-Build and/or Design-Build Operating Services 30
XII Evaluation of Proposals and Recommendation for Award 33
XIII Bond and Bid Security 36
XIV Contracts and Contract Processing 37
XV Purchases Not Requiring Bids 38
XVI Purchasing Cards 41
XVII Vendor Complaints and Disputes(Protests) 45
XVIII Capital Assets Tracking 46
XIX Receipt of Goods and Materials 48
XX Invoices 49
XXI Vendor Evaluation 50
XXII Conflicts of Interest 50
XXIII Procedures for Federally Funded Projects 51
XXIV Purchasing Policy Adoption 52
a
I
I
SECTION I
REQUISITION
PURPOSE: The City of Edgewater currently utilizes the Sungard HTE procurement and
inventory module for on-line procurements. Approved requisitions signify authority to
charge a specific fund and cost center, and signify that the department has verified
there are sufficient funds for the purchase.
DEFINITION: A requisition is a written or computerized request to the Finance
Department for the procurement of goods or services from suppliers.
PURCHASING RESPONSIBILITIES:
1. To become acquainted with the needs of our customers by utilizing
purchasing teams made up of department and Finance Department
personnel.
2. To aid and cooperate with all departments in meeting their needs for
operating supplies and equipment at the best value and least cost to the
City of Edgewater.
3. To assist in the preparation or review of specifications for all requirements.
4. To locate the sources and availability of needed products.
5. To process all requisitions and purchases with the least possible delay, in
accordance with City procedures.
6. To work with the supplier in correlating all the steps involved in completing
a purchase. including purchase order follow-up and tracing.
7. To assist the department with any difficulty after the product has been
delivered or service rendered.
8. To notify the user department of any changes in the use of the suggested
vendor as proposed by the user department, and any other probable
changes such as price or delivery.
DEPARTMENT RESPONSIBILITIES:
1. Allow sufficient time for the Finance Department to process and/or place
the order and for the supplier to deliver.
2. Advise the Finance Department if the requisition is a defined emergency
as stated in Section III.
3. Write clear and accurate description of materials and equipment to be
purchased and its intended purpose. Specifications should be typed and
either e-mailed or hand carried to the Finance Department.
5
4. Prepare generic specifications for items requiring a technical or
engineering background.
5. List anticipated requirements in advance, when possible. Involve the
Finance Department at the time the need is determined or as early as
possible.
6. Keep the Finance Department advised of any abnormal demands. PLAN
AHEAD!
7. Under no circumstances is the City of Edgewater ;o be obligated by
departments in any manner whatsoever without prior approval.
8. Cooperate with the Finance Department by reporting, in writing, the results
of purchases -- either favorable or unfavorable. If you have complaints,
REPORT THEM.
9. Advise the Finance Department of any known supplier(s).
10. List any quotes obtained by vendor name, individual contacted, and price
obtained (by line item). Check with the Finance Department for additional
sources.
11. Verify that all sources of funds identified on the requisition are properly
coded.
12. Specify correct commodity code of items to be purchased.
13. Be sure funds are allocated and available in the referenced fund/account
to support purchases.
14. Be sure the purchase is for a "public purpose", unless specifically
exempted by City rules or regulations.
WHEN PREPARED: Purchase Requisitions must be submitted to Finance, far enough
in advance to permit the Finance Department to obtain competitive prices and to allow
sufficient time for deliveries to be made. User Departments should take into account
the time necessary to obtain Council award approval and administrative approvals in
planning for their procurements. The Finance Department can assist you with this
planning.
SPECIAL SITUATIONS:Agencies should identify requisitions requiring special handling
for the purchase of materials to prevent downtime but which are not strictly
emergencies. These must be held to a minimum.These should only be used in cases of
required purchases with a justification as to the urgent need. Competitive verbal pricing
should be obtained wherever possible.
WHO PREPARES: All requisitions shall be authorized by the Department Director or
designated authority Requisitions should originate in the department at the level where
the purchase is to be used and routed to the designated approval authority prior to
0
being sent to Finance Department. Requisitions not properly authorized will not be
accepted by the on-line system.
ROUTING:
1. For all purchases under S25,000. the requisitioning agency will enter
the requisition into the on-line system for issuance of a purchase order.
The Department will obtain quotes as:
a. Quotes not required under$5,000- - f Formatted:Outline numbered+Level:2+
i. Estimates are encouraged Numbering Style:a,b,c,...+Start at:1+
Alignment:Left-Aligned at: 1.31"+Tab
ii. Preference aiven to local suppliers j after: 1.56'+Indent at: 1.56"
b. Three informal quotes $5001 -$14,999- - +
Formatted:Outline numbered+Level:3+
c Three formal quotes — $15,000- 524,999-: Numbering Style:i,ii,iii,...+Start at:1+
•__ __ _ Alignment:Right+Aligned at: 1.94"+Tab
- after: 2.06"+Indent at: 2.06"
•- -_. _ _ - Formatted:Outline numbered+Level:2+`�
•- e - - e.: -- e - Numbering Style:a,b,c,_.+Start at:1+
a Competitive quotes are not required for purchases under Alignment:Left+Aligned at: 1.31"+Tab
00 after: 1.56"+Indent at: 1.56"
b. Three informal quotes are required for purchases from $ 5.001.00
c. Three - - - - _ - . - - .. e e e e
521.999.99. The Department will obtain formal quotes and
forward to Finance.
2. For all purchases $25,000-99 or greater, the requisitioning Department
will request a formal solicication to be ssL.ec by the F nanc
Deparimententor the rcqusi`.ion, and then assure that City Council
approval is obtained for award, either of the solicitation or other
Council direction.
3. Upon receipt of the requisition in the Finance Department and
dependent on the dollar amount, formal quotations, bids or proposals
will be solicited. A purchase order or a contract will be issued upon
completion of this process.
4. If the requisition is incomplete or not properly prepared, the Finance
Department will notify the originating department.
5. For all purchases of capital goods or services, regardless of the dollar
amount, the requisitioning Department will enter the requisition into the
system assuring appropriate approvals are obtained, unless approved
by the Finance Director and under$25.000- -
•
Telephone Svstemss-- —(Internal System Only) ---Information
Technology
PLEASE ENSURE THE ABOVE APPROVALS ARE OBTAINED PRIOR TO
SUBMITTAL TO THE FINANCE DEPARTMENT.
SECTION II
PURCHASE ORDERS
PURPOSE: A purchase order authorizes the vendor to ship and invoice the materials
and services as specified. Purchase orders will be written to be clear, concise and
complete, preventing any misunderstanding and/or unnecessary correspondence with
suppliers.
DEFINITION: A legally binding document prepared by a purchaser to describe all terms
and conditions of a purchase.
WHEN ISSUED: Pre-numbered computer generated purchase orders will be issued
upon receipt of a properly authorized requisition, after receipt of competitive bids,
determination whether funds are available, and Council approval as necessary. No
purchase orders will be issued after the fact unless it is a documented emergency
situation.
WHO ISSUES: Only the Finance Department shall issue purchase orders. The
department will not enter into negotiations with any supplier for the purchase of
supplies, services, materials or equipment. The Finance Department will transmit all
purchase orders to the supplier.
ROUTING OF ORDER: A standard purchase order form is used to make all purchases.
Purchases over $5,000 C:) require a copy of the purchase order to be provided to the
vendor. The purchase order form for purchases under $5,000-0g-is sent to the vendor
upon request by department.
FOLLOW-UP AND TRACING: Departments should track order progress after placing
the order. If a problem is incurred, the department should then contact the Finance
Department for assistance.
DIFFICULTIES AFTER RECEIPT OF SERVICE OR ITEM: Upon request from the
department, the Finance Department shall handle with the vendor any problems or
8
difficulties with outstanding orders or contracts and received items or services. See
Section XIV of this manual for further details.
PRE-PAYMENT PROCEDURES: On those items where prepayment is needed. the
original documents showing that pre-payment is required will be forwarded to the
Finance Department as the authorization to issue a check with a manual check request.
These should be kept to a minimum. The purchasing card should be used for items that
I require pre-payment if under S5,000-40.
REGISTRATION FEES AND TRAVEL: Registration fees and travei for seminars and
conferences for in-City and out-of-City travel are handled via Travel Authorization forms
as per City Policy and Procedures These requests are r --processed through the
Finance Department.
UTILITY BILLS AND COMMUNICATION INVOICES: Payment for utilities (water,
sewer, lights, etc.)and communication service will be made by the Finance Department
and the expense allocated to the appropriate department fund.
EMPLOYEE TESTING;
Pre-employment or other such employee testing as required will be processed by the
Human Resources Finance Department and the expenses allocated to the appropriate
department fund.
DEBT SERVICES;
All debt service payments will be paid by the Finance Department and the expenses
allocated to the appropriate department fund.
PURCHASE OF GOODS AND SERVICES S25,00040---or Greater: All purchases of
goods and services whose cumulative total shall exceed $25,000- -or greater within
a 12 month period will be competitively bid.
USE OF FIELD PURCHASE ORDERS: The Field Purchase Order should be used as a
payment tool/check request for aI items under $5,000 0C. Common uses include:
Subscriptions, Memberships, Advertisement and Registrations requiring a check. Petty
Cash Reimbursements and Employee Travel Reimbursement checks. Also, the Field
I Purchase orders should be used for items under 55,000-04-for vendors that do not
accept the Purchasing Card.
Invoices that are attached to FPO's need no signatures. Approvals will be tracked by
the financial software.
SECTION III
SOLICITATION AND APPROVAL LEVEL THRESHOLDS
PURPOSE: To describe the various levels of the competitive process and to identify the
levels of authority in the procurement function of the City. The procurement function is
designed to maximize the purchasing value of public funds in procurement and to provide
safeguards for maintaining a procurement system of quality and integrity.
9
The mandatory formal solicitation amount chall be TWENTY FIVE THOUSAND AND
NO/100 DOLLARS ($25,000.00.) over the life of the contract or greater. Written quotes
shall be obtained for purchases between FIFTEEN THOUSAND ONE AND NO1100
DOLLARS ($15,001.00) and TWENTY FOUR THOUSAND NINE HUNDRED NINETY
a • ♦• ii •! a ••• ••
P.FIFTEEN THOUSAND DOLLARS($15,000.00). - - - -
Threshold Levels:
Informal quotes - $5,000-$14.999
Written quotes 515.000-$24.999 r rrmmatted:Indent:Frst line: 0.s
Formal Solicitation - S25.000 or greater or cumulative over the life of the- I Formatted:Indent:Left: OS',Hanging: Y
contract
Even though quotes are not required for every threshold level, every effort will be made
to obtain a minimum of 3 quotes / solicitations for each threshold level. In addition
every effort will be made to obtain quotes/solicitations from local suppliers.
Department/Division/Office:, shall maintain documentation with their requisition on all
quotes received or as to why competition was not obtained. All purchase prices must
I be considered fair and reasonable. Award anon-competitive', shall be made to the
business offering the lowest quotation that is determined to be both responsive and
responsible. Award based on the overall best value can be made if the department
submits a statement to the Finance Department for approval describing the benefits to
the City if award is made to other than low. The name of the business submitting a
quotation, and the date and amount of each quotation, shall be recorded and
maintained as public record.
Types of formal solicitations used for competitive procurement are as follows:
Request for Proposals (RFP) —A solicitation for response for a commodity and/or
services for which the scope of work. specifications or contractual terms and conditions
cannot reasonably be closely defined. Evaluation of a proposal is based on prior
established criteria wherein the RFP shall state the relative importance of price and
other evaluation factors.
Invitations to Bids(ITB)-A solicitation inviting potential contractors or vendors to
submit sealed, written pricing for specific goods or services in conformance with
specifications, terms. conditions and other requirements described in the bid invitation
documents.
Request for Information (RFI) - A solicitation for response from interested and
prospective vendors/contractors to provide information to determine specifications,
qualifications and/or capabilities to satisfy a need rather than a firm specification and in
which the respondent may be given latitude in order to develop a product and/or service
which will fulfill the need.
Request for Qualification (RFQ) - A solicitation seeking responses for services
for which the competitive award will be based on the qualifications of those responding:
generally, but not limited to, used in procuring certain professional services, design build
services,consulting and construction management services
to
The procurement of all goods, material, equipment, services and combinations of goods
and/or services by or on behalf of the Council, including those transactions through
which the Council shall receive revenue, in an amount equal to or in excess of the
mandatory bid amount of _.__, . e a • e • _ ' .e _ _ •.1._
f$25,000-CO, over the life of the contract, shall be formally competitively awarded based
on the submission of bids (ITBs), proposals submitted in response to an request for
proposal (RFP). proposals submitted in response to a request for information (RFI),
proposals submitted in response to a request for qualifications (RFQ) or proposals
submitted for competitive negotiations, except as otherwise provided herein, or by State
or Federal law. Competitive bidding shall be the preferred method of procurement. If a
department determines the use of an invitation to bid is not practicable based on 1) lack
of time, 2) the award will be made on factors other than price and price-related factors,
3) a need to conduct discussions with the responding bidders about their bid and 4)
there isn't a reasonable chance of receiving more than one quote. must submit. in
writing, a statement requesting solicitation by Request for Proposals.
Departmental requirements are not to be split to avoid the competitive bidding
thresholds. It is in the best interest of the City to combine requirements and
competitively bid these requirements to ensure a fair and reasonable price.
i ... _.
exceeding TWENTY FIVE THOUSAND AND NO/100 DOLLARS ($25,000.00) must filo
with the Supervisor of Elections within the County in which he or she permanently
of the procurement - - -
All Department Directors or their designee shall have the authority to authorize
purchases of goods and services not to exceed FIVE THOUSAND AND NO/100
DOLLARS ($5,000.:.:C.,' . _' .'._ - - . . .. _- •,
(Sccticn ',}without any quotes. Authority is also given in case of an emergency for
purchases under N-TY FIVE THOUSAND AN;y NO/100 DOLLARS S25,000-
when at least one vendor has been contacted and the purchase order is issued through
the Finance Department within the next business day. The Finance Department will
review the requisition to ensure a fair and reasonable price is received.
The City Manager or -designee shall have the authority to award and execute
purchases of goods and services not to exceed VVENTY FIVE THOUSAND DOLLARS
,\ND NO,"00 c$25,000. 0) including change orders and amendments. The City
Manager or designee is authorized to renew options on approved contracts, as long as
it is per the terms. conditions and renewal period specified in the original contract and
the total dollar amount for each contract or purchase order is within the Council
approved budget. All purchases of goods and services, in excess of TWENTY FIVE
Y=4 S -N-O-DOLLARS-AND NO/100-;$25:000,00-shall be awarded by the Council,
except as otherwise provided within this section. The City Manager or designee shall
II
•
have the authority to approve all purchase orders, contracts, and Master Agreements
and amendments-up to FIFTY THOUSAND AND --.S50,000-E07)-for
projects, goods and services that arccce,detailed in the adopted budget as long as award
is to the lowest responsive, responsible bidder in a competitive environment.
The City Manager or designee shall have the authority to approve and execute all
change orders and amendments and to approve price escalation/de-escalation
changes, according to the terms of the particular contract providing that the change
does not exceed X10%) (not to exceed S50.000 in total) of the latest
approved contract value for contracts. Amendments to contracts greater than these
amounts must be approved by City Council.
The City Manager or designee shall have authority to award and execute purchase
orders in any amount on current City cooperative purchasing agreements and contracts
from GSA contracts, state agencies, or other units of government and non-profit
organizations on capital items and projects that have been detailed and approved by
City Council trough-the in the adopted budget adoption or amendedn=len4 budget
process. The City may piggyback on active current agreements and contracts from
other governmental entities when competitive bid procedures have been followed and
the guidelines utilized by that entity are the same or more stringent than the City's
guidelines. All conditions of the agreement or contract must be met. The City may
piggyback on previous City bids provided they were received within the previous 12
months and the department is not aware of any interest from other potential vendors.
The Finance Director. with the concurrence of the City Manager or designee, shall have
the authority to settle individual claims under contract provided the settlement does not
exceed ten percent 410%(not to exceed $50.000) of the latest approved contract value
for contracts. All change orders issued which modify a contract, the original and revised
I total cost of which exceeds ten percent t10%;(not to exceed $50.000), shall require
Council approval, unless otherwise specified herein.
It shall be prohibited for any City employee to order the purchase of any goods or
services or make any contract change without the delegation of authority under this
section other than through the Finance Department. unless utilizing an authorized
procurement card. City employees will be held accountable for unauthorized purchases
and appropriate disciplinary action will be taken pursuant to the City Policy and
Procedures Manual. The Department committing the unauthorized purchase will
document the incident with a memo to the City Manager explaining the details of the
unauthorized purchase. These details must include a brief summary of what happened
and the corrective action that the Director has taken to prevent unauthorized purchases
in the future. The memo shall state any disciplinary action taken, if any, and request the
City Manager approve the unauthorized purchase if under TWENTY FIVE THOUSAND
DOLLARS AND NC/1O0 ($25,0004O. Unauthorized purchases of T=WENTY FIVE
": e • L • ! • e' ..4$25,000-O€..-and greater shall be submitted to
the Council for approval. Any purchase or contract made contrary to this section hereof
shall not be binding on the City unless approved by the Council.
In the purchase of, or contract for, goods or contractual services, the City Council may
shah give a preference of in an arno;, t-+yet-- d tiwee-(3%)percent of the bid price
or-X50-,,-00 3700--whieheveF-►s-doss, to local peFsenssuppliers; provided, however, that this
12
section in no way prohibits the right of the City Council to recommend award to the
vendor that is the best interest of the City. The goods or services must be equal to or
greater than the lowest responsive bidder. Local Preference shall only be given if not
prohibited by any agreement and or grants associated with this award.
Local is defined as a business holding a City of Edgewater Business Tax Receipt (BTR)
and Certificate of Use (CU).
The City Council has the right to award all contracts except as otherwise provided in the
Code of Ordinances of the City. As to those contracts which the Council retains the
right of award, the Council shall have authority to review, modify or set aside all
previous administrative determinations, whether appealed or not. made in the course of
the procurement. Additionally
SECTION IV
EMERGENCY PURCHASES
PURPOSE: It is recognized that situations arise where formal solicitation is not
possible. In order to expedite the provision of goods and services, the following
procedure will be followed.
DEFINITION: Emergency purchases include those supplies or services necessary
because of certain emergency conditions occurring affecting the health, safety and
welfare of the City and its citizens or in the event that the City may suffer a financial loss
due to inaction. Poor planning will not constitute an emergency.
AUTHORIZATION: Emergency purchases are approved per the spending authority
levels outlined in this Policy and subject to review by the Finance Director. The City
Manager may approve those exceeding $25,0004. --and return to the Council for
confirmation of the purchase, unless an executive order has been issued that suspends
all requirements during disaster related events.
PROCEDURE: When an emergency exists, a requisition will be entered outlining the
nature of the emergency and coded as such. In addition,the department should call the
Finance Department to alert them to the need. A purchase order will be issued upon
proper approval and processing of the requisition. The Finance Department may obtain
additional price quotes prior to issuing a purchase order number. Standing procedures
for emergency purchases are included in the emergency management plan.
EMERGENCY PURCHASES - NIGHTS, WEEKENDS, OR HOLIDAYS: If an
emergency occurs when the Finance Department is closed, the Department Head shall
act to secure the necessary materials or service. The evidence of purchase such as
sales ticket, bill, delivery slip, counter receipt, etc., which the supplier normally
furnishes, will be submitted concurrently with the requisition by the department to the
Finance Department on the next work day following the date of purchase. Such back-
up documents will be submitted to Finance. Emergency Justification form must be
forwarded to the Finance Department by the next business day.
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GENERAL INFORMATION:When emergency purchases are made,the department will
make the purchase at the best possible price. A true emergency can occur as a result
of parts and labor needed for repairs to vehicles or equipment, which must be kept in
operating order. Emergencies due to negligence are to be avoided. Failure to
anticipate normal needs, project deadline dates or a desire to expend excess or
remaining budgeted funds prior to year-end do not constitute an emergency.
NOTE: Emergency purchases are costly and should be kept to a minimum. They are
usually made hurriedly, on a non-competitive basis, and at top prices. Most vendors
charge a premium when supplies must be obtained immediately.
SECTION V
CHANGE ORDERS
PURPOSE: Certain conditions surrounding purchases may change in the course of a
procurement, which necessitates a clarification or modification to the purchase order to
fulfill legal requirements.
DEFINITION: A Change Order to a Purchase Order is an adjustment to funding source,
addition or deletion of items,quantity, delivery time, or cost.
PROCEDURE: The department requesting the Change Order shall submit to the
Finance Department a Change Order Request indicating the original Purchase Order
Number and the reason for the changes. Change Order requests listing a price change
with no explanation for the increase or decrease will be returned to the originator. The
Finance Department will modify the on-line system to reflect the change. If required,the
vendor will be sent a hard-copy purchase order reflecting the change.
Change Orders must be processed for all changes affecting the original purchase order
such as quantity increases and those changes that increase 10% or more of the original
unit price dollar value. Change orders will not be processed for decreases in the
purchase order amount if payment is being finalized or if the decrease to the purchase
order line item amount is less than 10%. If a decrease occurs, the department will
receive only the amount invoiced. The same procedure applies if the increase is less
than 10% of the original purchase order dollar amount. No Change Orders to cancel an
item will be processed until the Finance Department has verified that a check has not
already been issued for the item.
Cancellations of all purchase orders at any dollar value will require a written change
order to be emailed or faxed to contractor. Cancellations and Change Orders will be
distributed in the same manner as the original purchase order.
Construction and Professional Services Change Orders will be processed manually
using the Professional Service/Construction Change Order form. The Finance
Department will make the necessary corrections to the on-line system once approvals
are obtained.
SECTION VI
14
BLANKET/INVERTED PURCHASE ORDERS
PURPOSE: Blanket/inverted purchase orders allow multiple transactions to be made
over a specified period of time, a practice aimed at reducing the number of small orders.
utilizing short-term releases to satisfy demand requirements, while creating efficiencies
of effort and decreasing costs.
DEFINITION: A blanket order is a purchase order issued for the purchase of
indeterminable miscellaneous items or materials, supplies, parts, etc., over a certain
period of time (usually on an annual basis or as approved by the Edgewater City
Council). Shipments are made, as requested by the department against the blanket
order number for the term of the blanket purchase order. The blanket purchase order
generally establishes a maximum dollar limit, the period covered, and terms and
conditions. However. since the specific items to be purchased are unknown at the time
of issuance of the blanket purchase order; no line item pricing may be shown. Blanket
orders may be used as a payment tool for formal contracts.
An inverted purchase order is used for payment on contracts where retainage is
withheld from the invoices received. Inverted purchase orders use the dollar value of the
contract as the quantity and receipts are issued against line items.
HOW PREPARED: Requests for a blanket/inverted purchase order shall be made on a
Requisition by the using agency indicating the types of items to be purchased and total
amount to be encumbered, either in quarterly increments or for the entire year.
Requests for Blanket purchase orders shall contain the following information:
1. Description and types of items to be purchased.
2. The period of time the order will remain valid.
3. The maximum dollar amount not to be exceeded. If it is apparent the
amount will be exceeded,the department via a change order request must
request an additional amount. Adequate funds must be available in the
department budget.
HOW USED:After the blanket purchase order is issued. the department is authorized to
place orders,via telephone or in person, directly with the vendor,when needed.
PROCEDURE: The person(s) listed as authorized by the blanket purchase order may
request/place orders directly with the vendor as needed. Items may be picked up or
delivered by the vendor. The Department Head or designee shall be responsible for
receiving all items acquired using the on-line system.
HOW PAID: The Finance Department will process payment of invoices for received
materials or services to obtain any discounts. User agencies must indicate receipt of all
goods and services, on-line, in a timely manner. Any invoices received by the
Department should be forwarded to the Finance Department after receipt processing.
15
HOW MONITORED: The Finance Department may actively monitor all or selected
purchases or invoices to ensure adherence to City procedures. The Finance
Department may cancel blanket purchase orders if misuse occurs.
SECTION VII
QUOTATIONS AND BIDS
PURPOSE: Fair and open competition is a basic tenet of public procurement. Such
competition reduces the opportunity for favoritism and inspires public confidence that
contracts are awarded equitably and economically.
DEFINITION:A request to suppliers to make offers to an organization.
PROCEDURE FOR SOLICITING QUOTES:
• -Every effort should be made to obtain a minimum of three (3) quotations for
each item or group of items required regardless of dollar amount.
• Competitive quotes are not needed on items, excluding services, under
S5,000,-C4-in value.
• Written or faxed quotes for purchases from $5,001- 0-to $4-57 -00--14,999are
to be obtained by the department and documentation maintained in the
department file and the quote information entered into the on-line system.
Finance Department may require a copy of the quote documentation, Services
provided on-site require appropriate insurance. Please call the Finance
Department for assistance. Capital outlay items may require other approvals
prior to purchase. The department should contact Finance Department for
assistance in creation of a vendor contact list.
• Purchases of $15440-1-000 00 but under $25,000 00-will be made by formal
written quotations issued by the Finance Department. The Finance Department
may coordinate with the department.
• The City's bidding service provider will notify all potential suppliers via fax or
email of all solicitations exceeding$25,000.00 in value. Formal Invitations to Bid
will be distributed to prospective suppliers, as feasible, and such Invitations to
Bid will indicate the deadline for receipt of the bid. No bid will be considered if
received after the deadline for receipt. Invitations to Bid, documented
completely, shall be maintained with the purchase order.
PROCEDURE FOR SOLICITING BIDS:
The Finance Department shall request formal sealed bids on purchases exceeding, or
I expecting to exceed in a single year, $25,000-90. In cases where a "purchase" or
contract may extend over multiple periods or years, the total cumulative amount to be
paid over the duration of the contract term will be the determining amount of the
requirement for requesting formal sealed bids. All advertisements and public notice
time frames will be made in accordance with Florida Statutes. The Finance
Department shall solicit bids from responsible prospective suppliers obtained from our
subscription notification service, publications and catalogues, suggestions from the user
16
Department, previous suppliers, etc. The Finance Department shall attempt to secure
at least three (3) bids.
A tabulation of all bids received with the recommended award(s) will be posted on the
City's website and will be available for public inspection in the main offices of the
Finance Department during regular business hours for ccvcnty two ;724 hours after
recommendation of award and in accordance with Florida Statutes.
Where requirements are of a technical nature, a multi-step bid process may be used.
The conventional multi-step process calls for submission of technical proposals and bid
prices at the same time, but in separate sealed envelopes. The proposals are opened
and evaluated. The bid price envelopes are then opened for those proposals that are
found to be responsive and responsible and award is made based on price alone.
The Finance Department's bidding notification service maintains a "Vendor List" of
prospective suppliers via use of a subscription notification service.
A prospective bidder will be placed on the Vendor List by subscribing to the bidder
notification service. Information is available in the Finance Department office about the
subscription service.
RESPONSIBILITY FOR SPECIFICATIONS:
The preparation of specifications is the responsibility of the department with review(and
authority to challenge) by the Finance Department. Specifications will permit
competition except on non-competitive materials or services, (see "Purchases Not
Requiring Bids").
In general, specifications should define the level of performance required rather than
specific brand name. For the benefit of vendors and the department, specifications
must be clear and concise. The Finance Department reserves the right to challenge
specifications to allow open competition.
ENGINEER'S ESTIMATES
An engineer's estimate is a prediction of quantities. cost, and/or price of resources
required by the scope of an asset investment option, activity, or project. As a prediction,
an estimate must address risks and uncertainties. Estimates are used primarily as
inputs for budgeting, cost or value analysis, decision making in business, asset and
project planning, or for project cost and schedule control processes. Cost estimates are
determined using experience and calculating and forecasting the future cost of
resources, methods, and management within a scheduled time frame. This work is
accomplished by a licensed design professional typically engaged by the City for the
project being competitively bid.
PROCEDURE FOR ISSUING DEBT.
Long-term debt may only be used for the costs of acquisition, construction or
modification of capital facilities and for the refinancing or refunding of such debt. This
MEW
limitation prohibits any debt being issued to finance operational costs of City
departments.
The legal, economic, financial and market conditions associated with the issuance of
debt are dynamic, unpredictable and usually in a constant mode of change.
Consequently, the decision to issue debt is best made on a case-by-case basis and
only after careful and timely analysis and evaluation of all relevant factors. Some of the
factors that should be considered include, but are not limited to, the following:
• Current interest rates and other market considerations;
• The financial condition of the City;
• The types, availability and stability of revenues to be pledged for repayment of
the debt;
• Type of debt to be issued;and
• The nature of the projects to be financed (i.e., approved schedule of
improvements, non- recurring improvements,etc.).
Capital improvements related to enterprise fund operations (e.g.. water systems,
wastewater systems, refuse disposal systems, etc.) shall be financed solely by debt to
be repaid from user fees and charges generated from the respective enterprise fund
operations,when practicable.
Capital improvements not related to enterprise fund operations (e.g., roads, parks,
public buildings, etc.) may be financed by debt to be repaid from available revenue
sources(including ad valorem taxes) pledged for same,when practical.
All capital improvements financed through the issuance of debt shall be financed for a
period not to exceed the useful life of the improvements, but in no event to exceed 30
years.
The City shall not construct or acquire a public facility if it is unable to adequately
provide for the subsequent annual operation and maintenance costs of the facility.
The City shall at all times manage its debt and sustain its financia` position in order to
seek and maintain the highest credit rating possible.
In order to maintain a stable debt service burden,the City will attempt to issue debt that
carries a fixed interest rate. However, it is recognized that certain circumstances may
warrant the issuance of variable rate debt. In those instances,the City should attempt to
stabilize debt service payments through the use of an appropriate stabilization
arrangement.
When refinancing current debt. the City will seek a savings (net of all issuance costs
and any cash contributions to the refunding)as a percentage of the refunding debt of at
least 3-5%.
18
Lease Finance Agreements utilized for competitively bid items up to and including
$750.000-0Q-shall require a minimum of three(3)quotations. Quotes are to be obtained
by the Finance Director and shall be maintained in the department file.
BID INVITATIONS: Notice of Bid will be advertised and posted in City Hall and on the
City Website. The City uses an Internet bidding service for document fulfillment
purposes. They send notification of Bids to potential vendors via email, fax or mail,
depending on the vendor's preference.
METHOD OF SOURCE SELECTION: The City uses the Competitive Sealed Proposals
methodology of source selection for this procurement. as authorized by this Purchasing
Policy.
The City may. as it deems necessary, conduct discussions with responsible proposers
determined to be in contention for being selected for award for the purpose of
clarification to assure full understanding of, and responsiveness to solicitation
requirements.
PRE-PROPOSAL CONFERENCE: The purpose of the pre-proposal conference is to
allow an open forum for discussion and questioning with City staff regarding the
Proposal with all prospective proposers having an equal opportunity to hear and
participate. Oral questions will receive oral responses. neither of which will be official,
nor become part of the RFP. Only written responses to written questions will be
considered official, and will be included as part of the RFP as an addendum.
All prospective proposers are strongly encouraged to attend, as, unless requested by
the department, this will be the only pre-proposal conference for this solicitation. If this
pre-proposal conference is denoted as "mandatory', prospective proposers must be
present in order to submit a proposal response.
PUBLIC ENTITY CRIME: A person or affiliate who has been placed on the convicted
vendor list following a conviction for a public entity crime may not submit a bid,
proposal. or reply on a contract to provide any goods or services to a public entity; may
not submit a bid, proposal, or reply on a contract with a public entity for the construction
or repair of a public building or public work: may not submit bids, proposals, or replies
on leases of real property to a public entity; may not be awarded or perform work as a
contractor, supplier, subcontractor, or consultant under a contract with any public entity;
and may not transact business with any public entity in excess of the threshold amount
as provided in Section 287.017, Florida Statutes, for a period of 36 months following the
date of being placed on the convicted vendor list.
DRUG-FREE WORKPLACE: In accordance with section 287.087, Florida Statutes,
preference shall be given to businesses with drug-free workplace programs. Whenever
two or more proposals which are equal with respect to price, quality, and service are
received by the City for the procurement of commodities or contractual services, a
proposal received from a business that furnishes a form certifying that it is a Drug Free
Workplace shall be given preference in the award process.
19
CONFLICT OF INTEREST: Proposers shall complete the Conflict of Interest Affidavit
included with the RFP documentation. Disclosure of any potential or actual conflict of
interest is subject to City staff review and does not in and of itself disqualify a firm from
consideration. These disclosures are intended to identify and or preclude conflict of
interest situations during contract selection and execution.
PROHIBITION OF GIFTS TO CITY EMPLOYEES: No organization or individual shall
offer or give,either directly or indirectly. any favor, gift, loan,fee, service or other item of
value to any City employee, as set forth in Chapter 112, Part III, Florida Statutes, the
current City Ethics Ordinance, and City Administrative Procedure 5311. Violation of this
provision may result in one or more of the following consequences: a. Prohibition by the
individual, firm, and/or any employee of the firm from contact with City staff for a
specified period of time; b. Prohibition by the individual and/or firm from doing business
with the City for a specified period of time, including but not limited to: submitting bids.
RFP,and/or quotes;and, c. immediate termination of any contract held by the individual
and/or firm for cause.
IMMIGRATION REFORM AND CONTROL ACT: Proposer acknowledges, and without
exception or stipulation. any firm(s) receiving an award shall be fully responsible for
complying with the provisions of the Immigration Reform and Control Act of 1986 as
located at 8 U.S.C. 1324, et seq. and regulations relating thereto, as either may be
amended. Failure by the awarded firm(s) to comply with the laws referenced herein
shall constitute a breach of the award agreement and the City shall have the discretion
to unilaterally terminate said agreement immediately.
BID BOND/DEPOSITS: By signing the proposal, Proposer acknowledges that it has
read and understands the bonding requirements for the proposal, if applicable.
Requirements for each solicitation are specified in the Proposal.
Should the contract amount be less than $500,000 00, the requirements of Section
287.0935. F.S. shall govern the rating and classification of the surety.
All performance security under the subsequent contract shall be in force throughout the
final completion and acceptance of the project awarded.
If the surety for any bond furnished by Contractor is declared bankrupt. becomes
insolvent, its right to do business is terminated in the State of Florida, or it ceases to
meet the requirements imposed by the Contract Documents,the Contractor shall, within
five(5) calendar days thereafter, substitute another bond and surety. both of which shall
be subject to the Owner's approval.
INSURANCE REQUIREMENTS: By signing the Insurance Requirements included in a
Proposal, Proposer acknowledges these conditions include Insurance Requirements.
It should be noted by the Proposer that, in order to meet the City's requirements, there
may be additional insurance costs to the Proposer's firm. It is, therefore, imperative that
the proposer discusses these requirements with the Proposer's insurance agent, as
noted on the Insurance Check List, so that the Proposer can make allowances for any
additional costs.
20
The Proposer's obligation under this provision shall not be limited in any way by the
agreed upon contract price, or the Proposer's limit of. or lack of. sufficient insurance
protection.
Proposer also understands that the evidence of required insurance may be required
within five (5) business days following notification of its offer being accepted; otherwise,
the City may rescind its acceptance of the Proposer's proposal.
The specific insurance requirements for each solicitation are included as part of the
proposal.
DISPOSITION OF BIDS: Bids shall be opened in public at the time and place stated in
the public notices and all bids received shall be read aloud stating the name of the
proposer and any pertinent information related to the solicited bid.At no time shall a bid
received not be read aloud.
The City shall not bear the responsibility for proposals delivered to the City Clerk past
the stated date and/or time indicated, or to an incorrect address by proposer's
personnel or by the proposer's outside carrier. However, the City Clerk, or designee,
shall reserve the right to accept proposals received after the posted close time only
under the following condition:
The tardy submission of the proposal is due to the following circumstances. which
shall include but not be limited to: late delivery by commercial carrier such as Fed
Ex, UPS_.-4;}}-4_-or courier where delivery was scheduled before the deadline.
All bids received and accepted will be made available for public inspection ten (10)days
after opening, or upon recommendation of award, whichever occurs first.
PROPOSAL, PRESENTATION, AND PROTEST COSTS: The City will not be liable in
any way for any costs incurred by any proposer in the preparation of its proposal in
response to this RFP. nor for the presentation of its proposal and/or participation in any
discussions, negotiations, or, if applicable,any protest procedures.
ACCEPTANCE OR REJECTION OF PROPOSALS: The right is reserved by the City- Formatted:Justifed
to waive any irregularities in any proposal, to reject any or all proposals, to re-solicit for
proposals. if desired, and upon recommendation and justification by the City to accept
the proposal which in the judgment of the City is deemed the most advantageous for the
public and the City.
Any proposal which is incomplete, conditional, obscure or which contains irregularities
of any kind, may be cause for rejection. In the event of default of the successful
proposer, or their refusal to enter into the City contract, the City reserves the right to
accept the proposal of any other proposer or to re-advertise using the same or revised
documentation, at its sole discretion.
I REQUESTS FOR CLARIFICATION OF PROPOSALS: Requests by the Accounting (Formatted:Justified
Technician to a proposer(s)for clarification of proposal(s) shall be in writing. Proposer's
failure to respond to request for clarification may deem proposer to be non-responsive,
and may be just cause to reject its proposal.
VALIDITY OF PROPOSALS: No proposal can be withdrawn after it is filed unless the
Proposer makes their request in writing to the City prior to the time set for the closing of
Proposals. All proposals shall be valid for a period of one hundred eighty (180) days
from the submission date to accommodate evaluation and selection process.
AWARD OF BIDS: Awards of contracts and/or purchases shall be to the lowest, most
responsive and most responsible bidder of goods or services, representing the best
value to the City. In determining the lowest, most responsive and responsible bidder
and that purchase or contract that will best serve the interests of the City, the Council,
the City Manager. and purchasing agent, as appropriate, shall consider, but shall not be
limited to, in addition to price,the following:
1. The ability, capacity and skill of the bidder to perform under the terms of the bid
documents including past performance, if available.
2. Whether the bidder can perform the contract or provide the materials or service
promptly, or within the time specified, without delay or interference.
3. The character, integrity, reputation, judgment, experience, and efficiency of the
bidder as reflected in credit reports, Better Business Bureau reports or other
records or reports.
4. The quality of performance of previous contracts and the providing of materials
and/or services.
5. The previous and existing compliance by the bidder with laws and ordinances
relating to the contract,or the providing of materials or services.
6. The sufficiency of the financial resources and ability of the bidder to perform the
contract or provide the materials or services.
7. The quality, availability, and adaptability of the supplies, equipment, or
contractual services to the particular use required.
8. The ability and location of the bidder to provide future maintenance and service
for the purchase and the financial impact upon the City to receive such future
maintenance or service. If a bidder does not currently have a local project office,
the evaluation committee shall consider the bidder establishing a local project
office to satisfy this requirement
9. The number and scope of conditions attached to the bid.
10. Whether the bidder is in arrears to the city on a debt or is a defaulter on surety to
the City;or,whether the bidders'taxes or assessments are delinquent.
11. The bidder has all current local and county Business Tax Receipts and licenses
as required by law.
JFBs ITBs are the least forma: review process and the award of the contract is to the
lowest priced, responsive, responsible bidder. The Finance Department coordinates
with the requisitioning department to determine if the lowest price bid is responsive(i.e.,
complies with the City's specification). A review of the bid is required to determine if it
conforms to the requirements stated in the solicitation If the lowest priced bid is found
non-responsive,then the next low bidder will be evaluated and so on until a responsive
contractor is found. When the lowest bidder is found non-responsive or not responsible,
this determination must be in writing with the appropriate documentation.
22
The Finance Department reserves the right to challenge any award recommendations of
the user division/department.
City Council will approve bid award recommendations wherein the award to each
vendor exceeds $25,000-88, unless previously exempted or approved. Me linancee
Department Each department is responsible for the drafting of the Council Agenda
Request and assuring appropriate approvals are obtained.-prior to forwarding to the
Finance Department fcr rcviear:_ The Finance Department will then submit the Council
Agenda Request to the City Manager. Award shall not be final until issuance of a
purchase order or contract by the Finance Department.
CHANGES IN FINALIZED BIDS: Any increase in unit price of any bid formally
approved by the Edgewater City Council must be re-submitted to the Council for
approval unless the increases were allowed by the bid or contract document.
WAIVER OF IRREGULARITIES: The City Manager on behalf of the City Council shall
have the authority to waive any and all irregularities in any and all formal bids.
TIE BIDS: In the event of a tie (with each business certifying that it is a Drug-Free
Workplace), both in individual scoring and in final ranking, the firm with the lowest
volume of work on City projects within the last ti`/c (5) years will receive the higher
individual ranking. This information will be based on information provided by the
Proposer, subject to verification at the City's option. If there is a multiple firm tie in either
individual scoring or final ranking, the firm with the lowest volume of work shall receive
the higher ranking. the firm with the next lowest volume of work shall receive the next
highest ranking and so on. If neither vendor has performed in work in the last five
years, the preference will be given to the Proposer within the city limits or principal office
closest to City Hall.
CONTRACTS: Whenever required, the successful bidder shall promptly execute a
formal contract to be approved as to its form, terms and conditions, and signed by the
proper authority. Contract time will be based on engineers' estimates and will be
mutually agreed upon by both the City and the successful bidder during contract
negotiations. When required, such bidder shall also execute and deliver to the Finance
Department a good and sufficient performance and/or payment bond in the amount
specified in the Invitation for Bid. Any bidder who has a contract awarded to him/her
and who fails to execute promptly and properly the required contract and bond, shall
forfeit his/her certified check or bid bond. Upon the execution of the contract by the
successful bidder, his/her certified check will be returned or his/her bid bond may be
released. The certified checks of unsuccessful bidders shall then be returned.
CITY'S RIGHT TO INSPECT: The City or its authorized Agent shall have the right to
inspect the Contractor's facilities/project site during and after each work assignment the
Contractor is performing.
WARRANTY REQUIREMENTS:
1. For purposes of this warranty requirement. the term "goods" means any equipment, i Formatted:Font:12 pt
machines, tools, vehicles, hardware, supplies, component parts or other tangible
personal property procured by the city, to which procurement this warranty
23
awm■
requirement is made applicable through the specifications. The term "City" means
the City of Edgewater,acting through its employees,departments, boards,council.
2. The successful bidder (also referred to herein as "vendor"), by submitting the bid,
furnishes the following warranty as provided below:
a. Vendor warrants that the goods delivered are newly manufactured, free from
defects in materials and workmanship and conform in every respect to City's
specifications. Vendor also warrants that if, during the warranty period, all or
any portion of the goods: (a)fail for any reason. (b) are discovered to be non-
conforming, or (c) are defective in materials or workmanship, vendor will
replace such failed, non-conforming or defective goods at no cost to city
within the same time limit as the delivery period. This warranty shall run from
date of official acceptance of the goods by city, which date is either the
installation date or in-service date as shown on city records or the date of
formal acceptance of the goods in writing by an authorized city official,
whichever occurs first, and end one (1) year after the date of the official
acceptance. This warranty shall be unconditional,except that it shall not apply
to obvious abuse, misuse or damage caused by city.
b. As between vendor and city, the express warranty given in subparagraph (b)
(1) is in lieu of any other express warranties. Should this warranty fail of its
essential purpose, City will continue to have recourse under applicable
Florida law. This warranty is intended for the exclusive benefit of the City and
does not create any warranties (express or implied) or causes of action in
favor of any third parties.
c. If a manufacturer of the goods or of component parts of the goods provides a
special or independent warranty which is longer than the period provided for
this warranty, or which provides terms more favorable to city than those
contained in this warranty as to any other provision, the provisions of this
warranty shall not be construed to diminish or conflict with the special or
independent warranty given by such manufacturer.
3 The successful bidder, by submitting the bid. agrees to give the following
indemnity with respect to the goods:
Vendor shall defend, indemnify, and save harmless the City, its officers, agents
and employees, from all suits, actions or claims of any character, type or
description brought or made on account of any personal injury (including death),
property damage or other harm for which recovery of damages is sought,
suffered by any person or persons. arising out of or occasioned by any breach of
any warranty, express or implied, as to the goods or the fault of subcontractors,
in the performance of the contract. purchase order or price agreement; provided,
however, that this indemnity shall not apply to any personal injury including
(including death), property damage or other harm caused solely by the negligent
use, misuse or abuse of the goods by city, or caused solely by any negligent act
or omission of city unrelated to the use of the goods. In the event of joint or
concurring responsibility of vendor and City, responsibility and indemnity, if any
shall be apportioned comparatively in accordance with the laws of the state of
24
Florida, without, however, waiving any governmental immunity available to the
City under Florida law. This provision shall not be construed for the benefit of any
third party, nor does it create or grant any right or cause of action in favor of any
third party against city or vendor, this provision being solely intended to provide
for indemnification of City from liability for damage to third persons or property as
set forth in this paragraph.
SECTION VIII
COMPETITIVE PROCUREMENT
PURPOSE: The City will make award to the proposal that meets the requirements and
criteria set forth in the solicitation and whose award will, in the opinion of the City, are in
the best interest of the City. Proposals shall be evaluated based on the requirements set
forth in the solicitation. Criteria that will affect the price should be considered in the
evaluation, and shall be objectively measurable, such as financial capability, references,
discounts, transportation costs, past performance, total or life cycle costs and overall
responsiveness of the submittal. No criteria should be used in the evaluation that is not
set forth in the solicitation.
Factors to be considered in determining whether the standard of responsibility has been
met include whether, in the City's determination, a prospective vendor/contractor has:
(1) appropriate financial, material, equipment, facility, and personnel resources,
experience, knowledge, and expertise. or the ability to obtain them, necessary
to indicate its capability to meet all contractual requirements:
(2) a satisfactory record of performance on similar projects;
(3) a satisfactory record of integrity;
(4) qualified legally to contract with the City;and
(5) supplied all necessary information in connection with the inquiry concerning
responsibility including but not limited to any licenses, permits, insurance, price
sheets or required organizational papers.
The solicitation for Proposals shall state the relative importance of price and other
evaluation factors. Award can be made to the most responsive, responsible
erofferor whose proposal is determined to be the most advantageous to the City in Comment[PD1J:I believe Offerotis the correct
accordance with the evaluation criteria contained in the Proposal_ term(someone making offer/bid/proposal)
Evaluation of Proposals(Procedure):
The City's procedure for selecting is as follows: 'Comment[PD2]:Dewe want to have some
largJage that evaluation committees don't apply to
CS s
1. The City Manager shall approve an Evaluation Committee to review all proposals
submitted in accordance with Statute. At a minimum there will be one member
of the Finance Department as part of the evaluation committee. Plus there shall
be a minimum of three members of the committee, but always an odd number.
•
ITB's that are solely priced based will be reviewed by the Purchasing Technician
and Project Manager as described below and will not be subject to the Evaluation
Committee process.
2. Request for Proposals issued.
3. Subsequent to the closing of proposals, the Accounting Technician and Project
Manager shall review the proposals received and verify whether each proposal
appears to be minimally responsive to the requirements of the published RFP.
appointed to the committee os voting members, such -nlMeetings shall be
conducted in accordance with Florida's Sunshine Law and the City Clerk shall
publicly post prior notice of such meeting in the lobby of the City Hall at least one
(1)day in advance of all such meetings.
4. The committee members shall review each Proposal individually and score each
proposal based on the evaluation criteria stated herein.--
• Formatted:Indent:Left: 0.5', No bullets or
5. Prior to the first meeting of the evaluation committee, the City Clerk will post a numbering
notice announcing the date, time and place of the first committee meeting. Said
notice shall be posted in the lobby of the City Hall not less than three (3 working
days prior to the meeting. The City Clerk shall also post prior notice of all
subsequent committee meetings and shall endeavor to post such notices at least
one±1}day in advance of all subsequent meetings.
6. The committee will compile individual rankings, based on the evaluation criteria
as stated herein, for each proposal to determine committee recommendations.
The committee may at their discretion, schedule presentations or demonstrations
from the top-ranked firm(s), make site visits, and obtain guidance from third party
subject matter experts. The final recommendation will be decided based on
review of scores and consensus of committee.
SECTION IX
PROFESSIONAL SERVICES
CONSULTANT'S COMPETITION NEGOTIATION ACT(CCNA)
PURPOSE: All requirements for CCNA Professional Services, as defined in Chapter
287.055, Florida Statutes shall be publicly advertised once in a newspaper of general
paid circulation or as otherwise indicated in Florida Statutes. Allowable exceptions to
public advertisement include:
(a) Projects involving a public emergency, pursuant to Section IV of the Purchasing
Policy.
(b) When the basic construction of the completed project is estimated to be less then
TWO HUNDRED FIFTY THOUSAND AND OO.100 DC��LAR 4$250,000 0 or
defined as category five in Florida Statutes, Section 287.017,whichever is greater.
(c) When the fee for professional services for a planning or study activity is estimated
to be less than TWENTY FIVE THOUSAND AND 188-DOLLARS{$25,000-D} or
26
defined as category two in Florida Statutes, Section 287.017, or as may be amended,
whichever is greater.
The Project Manager for acquisition of professional and consultant services under an
RFQ (Request for Qualifications) should suggest recommendations for appointment of
evaluation committee members who have knowledge and interest in the project. The
Evaluation Committee should consist of: Department Head or designee, Project
Manager and a staff member outside the requesting Department. The City Attorney's
office may also provide a representative who shall participate in an advisory capacity as
a non-voting member. The Finance Director or designee shall chair the meetings, a
44--k --a- n-vst+n-g- m =----The City's policy and procedures concerning the
evaluation process will be followed.
The Evaluation Committee shall determine specific qualifications necessary for the
project consultant and specify the form for submittal of qualifications by prospective
consultants.
For publicly announced requirements, the Department/Division/Office will provide the
Finance Department a RFQ request and scope of services; evaluation criteria and the
Finance Department will publish the notice in a newspaper of general circulation and
shall indicate how interested consultants may apply for consideration. Trade journals or
trade magazines may also be utilized for public advertisement for consultant services.
Purchasing will administer the opening of the proposals and the selection/negotiation
committee meetings.
Florida Statutes require reasonable notice to the public, such as the evalua-
tion/negotiating sessions with consultants. The notice will include the committees name
and purpose, location of meeting, date and time of meeting, and shall be posted 72
hours in advance of the meetings. A copy of the meeting notice shall be posted in City
Hall. Part of the notice of public meeting shall include the statement: "Persons with
disabilities needing assistance to participate in any of these proceedings should contact
the City Clerk, 48 hours in advance of the meeting". The Chairman of the meeting will
ensure a record of the meeting is maintained, either through a written or recorded
method or in accordance with the Public Records Law of the State of Florida.
The City shall make a finding that the firm or individual to be employed is duly qualified
to render the required service. The Evaluation Committee shall review statements of
qualification and performance data submitted in response to the public announcement
and shall select, in order of preference, no fewer than three (3) firms deemed to be the
most highly qualified, if at least three (3) firms respond to the announcement. If there
are less than three (3) firms responding and after due diligence and searching it is
decided every effort was made to meet Florida Statute 287.055, the City will interview
all respondents and proceed with the evaluation process. Consultant evaluation criteria
shall include. but may not be limited to: approach to work, the ability of professional
personnel; past performance and willingness to meet time: location of no more than 10
percent may be used; recent, current and projected workloads; and volume of work
previously awarded to the firm by the City, with the object of effecting an equitable
distribution of contracts among qualified firms, provided such equitable distribution does
not violate the principle of selection of the most highly qualified firms.
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The Evaluation Committee may conduct some type of public discussions with and may
require public presentations by a minimum of two (2) firms pertaining to the firms'
qualifications, approach to the project, and ability to furnish the required service. Each
evaluation committee member will review the statement of qualifications submitted by
each firm and will evaluate each firm's qualifications utilizing the Professional Services
Evaluation Form containing the specific evaluation criteria established for each RFQ
which will approximately resemble the attached PSEF form. The scores of the
committee members will be added to determine the ranking of the firms (first,_second,
third) public presentations by firms are not conducted, the ranking established during
the"short list" phase,which includes discussion with the minimum of three (3) firms,will
be the ranking order of the firms.
The committee shall maintain the summary listing of the rank order of the firms being
evaluated, present their recommendations of the three (3) most qualified firms to the
Council, if at least three firms respond to the announcement. and request the Council to
approve the ranking and to authorize staff to negotiate a contract with the top firm.
negotiating committee. The negotiating committee will consist of essentially the same
individualsper-seaael as the evaluation committee to the extent possible. T tee
9
Upon Council direction, the negotiating committee shall negotiate a contract with the
most qualified firm for professional services for compensation, which is determined to
be fair, competitive and reasonable.
Detailed discussions must be held by the firm and the City to clearly establish the scope
of the project and the exact services to be performed by the Consultant. The committee
shall negotiate a contract for professional services with the most qualified firm at a
compensation, which the City determines is fair, competitive and reasonable. In making
such determination, the City shall conduct a detailed analysis of the cost of the
professional services required in addition to considering their scope and complexity.
Should the City be unable to negotiate a satisfactory contract with the firm considered to
be the most qualified at a price the City determines to be fair, competitive and
reasonable, negotiations with that firm must be formally terminated. The City shall then
undertake negotiations with the second most qualified. Failing accord with the second
most qualified firm, the City must terminate negotiations. The City shall then undertake
negotiations with the third most qualified firm.
Should the City be unable to negotiate a satisfactory contract with any of the selected
firms. the City shall select additional firms in the order of their competence and
qualification and continue negotiations in accordance with the prior requirements until
an agreement is reached
For all lump-sum or cost-plus fixed fee contracts of ONE HUNDRED FIFTY
THOUSAND t i-9-88i1OO-DOLLAR-±S150,000-C))-or defined as category IV in Florida
Statutes Section 287.017, whichever is greater, the firm awarded the contract must
execute a truth-in-negotiation certificate stating that the wage rates and other factual
unit costs are accurate, complete, and current, at the time of contracting. Any contract
28
requiring this certificate shall contain a provision that the original contract price and any
additions shall be adjusted to exclude any significant sums by which the City determines
the contract price was increased due to inaccurate, incomplete, or non-current wage
rates and other factual unit costs. All such contract adjustments shall be made within
one year following the end of the contract.
SECTION X
PROCEDURES FOR MULTIPLE
CONSULTANTS UNDER COMPETITIVE CONSULTANT NEGOTIATION ACT (CCNA)
PURPOSE: To set standards as to how scopes can be split between those services
within the scope of practice as defined by the laws of Chapter 287.055, Florida Statutes.
The Selection Process described below will be followed to select a consultant when
awarding master agreements under continuing contracts when multiple qualified
consultants are under contract with the City. Whenever possible, the objective is to
distribute the work equally amongst the consultants under contract. Equal distribution of
the work will be measured by the dollar value of the work awarded: such that each
consultant gets (if work requirements permits) an equal share of the total dollars spent
annually on the Master Agreements.
1. Selection Process:
When dealing with multiple consultants under a CCNA Master Agreement, the
Department, responsible for the project, will select only one of the consultants to solicit
for a proposal when criteria items a. or b. apply. On projects where criteria a. or b. do
not apply, the Department, responsible for the project. will prepare a scope of work
document that Finance will use to solicit sealed proposals from the qualified consultants
under contract with the City for the specified type of work. The following criteria items c.
through g.. in order of acceptance, will be used to determine which consultant will be
awarded the work.
a. Specific and unique technical expertise not available from any of the other
consultants under contract.This criterion will not apply to all master agreements.
b. Maintain project continuity. This criterion will not apply to all master agreements.
c. Past performance on previous City work.
d. Availability of resources to undertake assignment.
e. Willingness to meet time and budget requirements.
f. Distribution of dollars awarded to date under the Master Agreement with the
object of effecting an equitable distribution of contracts among qualified firms,
provided such distribution does not violate the principle of selection of the most
qualified firms.
29
air
g. If the consultant does not choose to participate, the City will select another
consultant using the criteria in paragraphs(a-f)above.
When multiple sealed proposals are solicited, the Department responsible for the
project shall evaluate the sealed proposals in accordance with the above criteria and
select one of the consultants to perform the work.
2. Generating the Master Agreement:
The Department, responsible for the project (User Department), must send a Request
for Service/Proposal to the consultant selected (as provided herein) or Finance must
send (as provided herein) a Request for Service/Proposal to the multiple consultants
under contract. The request asks for a technical memorandum/scope of services and a
fee proposal. The Request for Proposal must include:
a. Statement of Work - The statement of work will provide each consultant with a
complete description of the requirement enabling them to prepare a proposal with
valid man-hours. The City may ask the consultant for solutions and to identify
unacceptable conditions.
b. Elements-The minimum required elements are the purpose and brief description
of the project; description of the work/service to be performed; the location(s)
where the work/service is to be performed; the basis for determining the award of
the Master Agreement; a contact person for the City for questions or clarifications
including the telephone number and the extension number; and what is the
required delivery date or period of performance. Any questions or clarifications
given must be forwarded to all consultants.
c. Submittal-The User Department or Finance Department must indicate when the
proposal is due back to the City. Be very specific of when and where the
proposal is to be delivered. indicating that if the City does not receive the
submittal on time, the City understands the consultant has chosen not to
participate in the process for that particular project.
d. Additional information - If additional information is available for the consultant's
review and consideration, please indicate the location of those documents and
the contact person including telephone number and extension number.
e. Meeting/Site Visit - If a meeting and/or a site visit are necessary to discuss the
project, please indicate the location, time and date of the meeting.
3. The consultant shall submit the following in response to the City's Request for
Proposal:
a. Detailed Scope of Work and Services — The Detailed Scope of Work and
Services shall specifically address each aspect of the project and tell in detail
how the consultant will accomplish the work Provide a schedule that, as a
minimum shall include a list of milestones and a schedule for completion. Each
milestone task must be described in sufficient detail for the Department to
30
evaluate the consultant's understanding of the project and action plan for
completion.
b. Fee Proposal — The Fee Proposal shall include as a minimum the level of effort
proposed to support the work. This should include a list of man-hours by staff
position and the contracted hourly rate for that position. The hourly rate should
match the hourly rate included in the Master Agreement, unless the hourly rate is
negotiated to a lower rate. Any subcontracted effort must be included in the
proposal and supported by a matching fee proposal.
c. Acceptability of Proposal from the selected consultant - The proposal received
from the selected consultant must be acceptable to the City. Criteria to consider
when determining the acceptability may include understanding requirements,
technical approach, innovative techniques or solutions, management approach,
proposed fee and the ability to meet cost or time constraints. The User
Department will determine the acceptability criteria for the Master Agreement.
4. If the proposal is found to be unacceptable as submitted,the City will continue
to negotiate with the selected consultant until an acceptable resolution is
obtained.
a. If the proposal as submitted is not fully acceptable, but could become acceptable
with relatively minor changes to the scope of services, proposed fee schedule or
fee proposal, then the Department will enter into discussions with the consultant
to refine the proposal making it acceptable. Based on those discussions, the
consultant must submit a revised proposal,which the City finds fully acceptable.
b. If the proposal as submitted is so unacceptable that it cannot be made
acceptable without major modifications to either the technical scope of services,
the proposed fee, or the proposed schedule, then the City has the option to
formally terminate negotiations with the consultant and enter into negotiations
with the next qualified consultant for the project, and so on, or re-solicit
proposals.
5. The User Department must provide copies of all documentation to the Finance
Department including:
a. Request for scope of work and services and fee proposal;
b. Originals of the consultant's submittals:
c. Determination of acceptability and recommendation for award (master agreement
request form);
d. Prepare Council Agenda Request(CAR)for awards greater than$15,000.00.
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•
SECTION XI
PROCUREMENT OF DESIGN-BUILD AND/OR
DESIGN-BUILD OPERATE SERVICES
PURPOSE: Pursuant to § 287.055(9), Fla. Stat. (2007), the following procedures shall
be
followed in selecting firms when design-build or design-build-operate services are
sought by the City. Definitions contained in § 287.055(2), Fla. Stat. (2007), have the
same meaning in this part except "project". "Project' shall mean a fixed capital outlay
project described in the public notice including individual facilities; grouping of facilities;
and rehabilitation and renovation activities.
1. Selection of the Design-Criteria Professional
A design criteria professional shall be selected and contracted with pursuant to §
287.055, Fla. Stat. (2007) or otherwise currently be under contract or employed by
the City. The design criteria professional will not be eligible to render services under
design-build or design-build-operate contracts executed pursuant to the design
criteria package. The design criteria professional may be required to evaluate
qualifications and proposals submitted by firms, review detailed working drawings for
the project, and evaluate project construction for compliance with the design criteria
package.
2. Design Criteria Package
The design criteria professional shall prepare a design criteria package on behalf of
the City. The purpose of the design criteria package is to provide sufficient
information upon which firms may prepare proposals or upon which negotiations
may be based. The firm to whom the contract is awarded will be responsible for
creation of the project design based on the criteria in the design criteria package.
3. Minimum Qualifications for Firms Providing Design-Build Services
Firms seeking to provide design-build or design-build-operate services shall be:
a. Certified under § 489.119, Fla. Stat. (2007), to engage in contracting
through a certified or registered general contractor or a certified or
registered building contractor as the qualifying agent; and
b. Certified under § 471.023, Fla. Stat. (2007), to practice or to offer to- Formatted:Indent:Left: 0.63',Hanging:
practice '36--
engineering; or certified under § 481.219, Fla. Stat. (2007), to practice or
to offer to practice architecture: or certified under § 481.319, Fla. Stat.
(2007), to practice or to offer to practice landscape architecture.
4. Request for Qualifications
32
a. The City shall give public notice of each instance in which professional
services are being sought for a design-build or design-build-operate
project, providing a general description of the project and requesting
qualifications from firms. The notice shall be published in appropriate
publications as determined based upon the type of project.
b. A firm desiring to provide design-build or design-build-operate services for• Formatted:Left,Indent:Left: 0.63',Hanging:
a 0.38'
project shall timely submit a letter of interest to the City, which shall include
the following: qualifications, availability and past work. Along with its (Formatted:Left,Indent:Hanging: 0.38-
qualifications, the design-build firm shall file a sworn statement pursuant to
§287.133. Fla. Stat. (2007).
5. Qualification of Firms
The City shall determine the relative ability of each interested firm to perform the
services required for the project based on the factors set forth in Section XI (3)
above. After reviewing the letters of interest, the City shall select no less than three
firms deemed to be most highly qualified to provide the required services and
request those firms to provide proposals for the project.
6. Proposal Selection
a. Only firms selected as most qualified will be notified by email by the City to
submit sealed proposals. Firms not selected will be notified by email.
b. Pursuant to the request for proposals, each selected firm shall timely
submit its sealed proposal to the City for evaluation. The proposal shall be
based on the criteria in the request for proposal and design-build or
design-build-operate package.
c. The City shall evaluate each firm's proposal based on price and technical
and design aspects of the project. The evaluation process shall be based
on criteria and procedures established prior to the solicitation of
competitive proposals.
d. Where further clarification of proposals or additional information is needed,
the City shall require informational presentations by the selected firms.
e. The City shall designate and rank not less than three firms, in order of
preference, whose proposals the City deems to be most advantageous,
having taken into consideration the evaluation criteria and the Proposer's
responsiveness to the request for proposals. A notice of intended action
shall be provided by email to the selected firms.
7. Competitive Negotiations
a. The City shall begin contract negotiations with the designated firms in
order of rank for fair, competitive and reasonable compensation.
33
b. Should negotiations with the most highly ranked firm prove unsuccessful,
as determined by the City or designee, negotiations with that firm shall
cease and negotiations shall begin with the next most highly ranked firm.
Negotiations shall continue in accordance with this section until an
agreement is reached. The City or designee is authorized to award the
contract.
c. If a satisfactory agreement is not reached with any of the designated firms,
the City will either:
1. Designate and rank additional responding firms, in order of preference,
for competitive negotiations pursuant to(1) and (2) above;
2. Republish the request for qualifications, with any appropriate
modifications: or
3. Abandon the process entirely.
8. Rejection of Proposals
a. The City reserves the right to reject any and all proposals, provided such
action is done in good faith,and is not arbitrary and capricious.
b. If the City finds it necessary to reject all the proposals, a written statement
to this effect shall be placed in the proposal file and the Proposers shall be
notified. The City may then republish the request for qualifications, with
any appropriate modifications. Any interested firm will have the opportunity
to submit or resubmit its qualifications to the City for consideration.
9. Emergency Procurement of Design-Build Services
If the City determines in writing that an immediate danger to the public health, safety,
welfare or other substantial loss to the public requires emergency action. the City
may proceed with the procurement of the design-build services without competition.
10.Reuse of Plans
When the City reuses existing design criteria packages and resulting plans from a
prior project, the requirements of this subpart shall not be applicable.
11. Alternative Procedure for Procurement of Design-Build or Design-Build-
Operate
—Services
In lieu of the policies contained herein,the City may engage in a qualifications-based
selection process for design-build or design-build-operate services as set forth in
section 287.055(9)(c). This alternative process would allow the City to issue a
request for qualifications without price, to rank the respondents and to begin
negotiations with the top ranked respondent. The selected firm would then establish
34
a guaranteed maximum price and guaranteed completion date. Should the City
elect this alternative process, it shall be made clear in the original solicitation.
SECTION XII
EVALUATION OF PROPOSALS AND RECOMMENDATION FOR AWARD
PURPOSE: Once the proposals have been opened. an Evaluation Committee or
Technical Reviewer must evaluate them. The Finance Department must be present at
each evaluation meeting and shall chair the Evaluation Committee. The Evaluation
Committee is structured to provide the skills necessary for the particular project being
evaluated. Certain procurement actions may require a technical review. which may be
conducted at the discretion of the Department Head. To the extent a Technical Review
is needed, they shall comply with the Sunshine Law and Public Records requirements.
Additional skills required for evaluation may include engineering, general business,
legal, or information technology. The Evaluation Committee as a whole will meet to
arrive at a recommendation for award. When the Department or Technical Reviewer
responsible for the project prepares recommendation, the tabulation sheet must be
included with the recommendation of award. Once all the steps above are completed,
the contract will be prepared and the Council Agenda Request must be written, if
necessary.
Evaluation Committee meetings must comply with the State of Florida's Sunshine and
Public Records Laws. Reasonable notice of the date, time and place of the meeting
must be given. The meeting should be recorded, when possible. If not recorded,
minutes must be taken by the person chairing the meeting. At the meeting, the
committee members must return all required forms such as the Conflict of Interest
Statements and individuals or group evaluation forms and any other pertinent data as
necessary for the evaluation of the project.
1. The evaluation process is a key function in the selection of a quality
contractor/consultant. It is very important that this process be conducted in a
professional and consistent manner; therefore team members need to be flexible
and available for all meetings during the evaluation/review process. including
demonstrations and presentations. City employees that are nominated to serve
on an Evaluation Committee will follow these guidelines and procedures. The
Evaluation committee shall review the proposals for references, responsiveness
and responsibility of submittals. The Evaluation Committee evaluates the
submittals against the established evaluation criteria stated in the solicitation.
Evaluation Committee meetings are considered "open meetings" under the
Government-in-the-Sunshine Law and must be open, notice posted and minutes
taken.
2. For all Proposals, CCNA and special projects, if the procurement has a value of
$250,0004,0 or more per year,then the Department Director must be a member.
3. For contracts awarded under the State of Florida's Consultants' Competitive
Negotiation Act (CCNA): This formal evaluation process will identify the firms
35
that best meet our requirements in accordance with the evaluation criteria stated
in the solicitation. The Evaluation process requires a review of all proposals
independently against the established evaluation criteria as stated in the
solicitation. The Finance Department will supply the evaluation criteria as stated
in the solicitation. The evaluation sheets shall include comments of the
strengths, weaknesses and deficiencies of each proposal that support the staff
recommendation. The Evaluation Committee shall evaluate statements of
qualifications and performance and shall conduct discussions with and may
require public presentations by no fewer than three most highly qualified firms (if
more than three firms) selected in order of preference. Each evaluation
committee member will review the statement of qualifications submitted by each
firm and will evaluate each firm's qualifications utilizing the Professional Services
Evaluation Form containing the specific evaluation criteria established for each
RFQ which will approximately resemble the attached PSEF form. The scores of
the committee members will be added to determine the ranking of the firms (first,
second. third). The evaluation sheets will be included in the backup of the
agenda or a tabulation form displaying the scores of all committee members can
be submitted instead of individual sheets. If public presentations by firms are not
conducted, the ranking established during the "short list" phase, which includes
discussion with the minimum of three (3) firms, will be the ranking order of the
firms.
4. Request for Proposal (RFPs) (Non-CCNA): This process is similar to the above.
It includes a price/cost evaluation that the Finance Department will provide as
part of the overall evaluation. The method of award must be stated in the
solicitation and may be of two types; low price technically acceptable or best
value. For low price technically acceptable process, the evaluation process will
start with the lowest proposal to determine if they are technically qualified. If not,
then proceed to the next low until an acceptable proposal is found. A pass/fail or
yes/no evaluation is required to determine if the proposal meets the technical
requirements. For Best value process or an award to other than the lowest price,
the team must evaluate all proposals and document the advantages of the
recommended firm to support the best value recommendation. The
documentation must specifically address why the recommended award is worth
the added cost over the lowest (or lower) price(s). The evaluation sheets that
support the best value justification will be part of the backup documents.
• Method of evaluations: There are two approved methods of evaluations to be
used:
- Weight(points)system, can be a two-step process
- Rating (adjectival)system can be a two-step process.
5. The Evaluation Committee Leader is responsible for ensuring the Evaluation
Committee performs Past Performance or Reference checks, and guiding the
team to a consensus recommendation. The Finance Department will monitor the
evaluation process and provide guidance at the start of each formal evaluation.
If requested,training on the evaluation process can be provided to the team with
little or no previous evaluation experience. The Finance Department will review
36
forms for completeness and compliance with the policy. Any forms that are not
properly filled out or which lack appropriate comments or documentation to
support the award recommendation may result in the delay of the award
recommendation. Each team member must be thoroughly familiar with the
contents of each proposal and the requirements of the evaluation criteria in the
solicitation. Team members should evaluate each proposal on its own merits
and in accordance with the requirements stated in the solicitation. At the
Evaluation Committee meeting, team members will work towards reaching
consensus and will submit a single recommendation for proceeding. The
Evaluation Committee Leader, with assistance from the Finance Department
Staff, will guide the team's deliberations.
6. List the Strengths,Weaknesses and Deficiencies using the following guidelines:
- Strengths: Those areas in which the proposal meets or exceeds the City's
requirements.
- Weaknesses: Those areas where the proposal lacks soundness or
effectiveness, which could prevent fully successful performance of the
contract.
- Deficiencies: Those areas where the proposal fails to meet the City's
requirements.
These strengths. weaknesses and deficiencies can be used in the negotiations,
presentations and discussions during the second step of the two-step process. The
Finance Department is responsible for performing a cost or price analysis on each
solicitation. The analysis will include a determination of fair and reasonable price for the
recommended award. The price/cost proposal of the RFP should be evaluated by the
Finance Department personnel using the following ratio:
The lowest price proposal receives the maximum points or is rated highly acceptable.
Divide the next vendor's price by the lowest to receive a percentage and multiply this
percentage by the weights to determine the next score.
If the contract is based upon various hourly rates or level of effort, the Specialist must
make some assumption based upon anticipated usage or historical data. This
estimated cost must be analyzed using the above process or if developed in the RFP a
way to utilize the rates as benchmark.
Presentations and interviews must comply with the State of Florida's Sunshine and
Public Records Laws. The meeting should be recorded, when possible. If not recorded,
minutes must be taken by the person chairing the meeting. If presentations are
necessary, the details of the presentations must be discussed such as time for each
presentations and the overall schedule. Once the information is collected and compiled,
the ranking must be established. The Tabulation Form must be updated and posted in
DemandStar.
37
Once the short listed firms have been identified, staff must ensure compliance with the
following process:
• Notify the Consultants by fax or e-mail of the City's determination. The firms
must be notified within the next two (2) days of the Evaluation Committee
meeting. The notification shall include details of the interviews/presentations
including but not limited to the following:
- Date and time of the interview/presentations.
- Location of the meeting.
- Time allotted for each firm.
- Additional information if requested by the Evaluation Committee.
• Finance will coordinate the schedule of the interviews/presentations with the
Evaluation Committee meeting and when applicable will send invitations via e-
mail.
• Interviews/Presentations forms must be sent to the User Department requesting
information for the evaluation of the firms.
• Prior to the date of the interviews/presentations, staff must ensure that the
evaluation forms and the sign-in sheet forms are completed and available for
each member of the Evaluation Committee. There must be a sign-in form for
each of the firms presenting.
SECTION XIII
BONDS AND BID SECURITY
PURPOSE: The Finance Department is responsible for insuring that any required surety
bonds are maintained. Before commencing work on the construction of a public building
or repairs upon a public building or public work. the contractor shall deliver to the City a
payment and performance bond which will be recorded in the public records of the City.
The bonds must state the name and principal business address for both the principal and
the surety and must contain a description of the project sufficient to identify it.
Requirement for Bid Security: Bid security shall be required for all competitive sealed
bidding for capital improvement construction contracts when the price is estimated to
exceed !• -• !' ! -!- • ! • ' • ' !! !' • - $100,000-04,4 or when
the City Manager or designee deem appropriate. Bid security shall be an original bond
provided by a surety company authorized to do business in the State of Florida or the
equivalent in the form of a cashiers or certified check. The City Manager may require
bid security for other types of bids and Request for Proposals (RFPs). Amount of Bid
Security shall be indicated in the Contract Documents. When the Invitation for Bids
(IFBs)or RFPs requires security, noncompliance requires that the bid be rejected.
As determined by the Finance Director or designee or mandated by Florida Statutes,
the following bonds or security shall be delivered to the City and shall become binding
on the parties upon the execution of the contract:
3g
(1) A performance bond satisfactory to the City, executed by a surety
company authorized to do business in the State of Florida or otherwise secured in a
manner satisfactory to the City, in an amount equal to one hundred percent (100%) of
the price specified in the contract.
(2) A payment bond satisfactory to the City, executed by a surety company
authorized to do business in the State of Florida or otherwise secured in a manner
satisfactory to the City, for the protection of all persons supplying labor and material to
the contractor or its subcontractors for the performance of the work provided for in the
contract. The bond shall be in an amount equal to one hundred percent (100%) of the
price specified in the contract.
Nothing in this Section shall be construed to limit the authority of the City to require a
performance bond or other security in addition to those bonds or in circumstances other
than specified in this Section.
SECTION XIV
CONTRACTS AND CONTRACT PROCESSING
PURPOSE: The City contracts for a varied number of services and products. Formal
contracts attest to definitive detailed obligations of goods, services and/or payments of
monies between the City and others, as approved by the City Council or as delegated
by the City Council via formal action or ordinance. Contracts will be issued in
conjunction with either a blanket or inverted purchase order, which will be used as the
payment tool for the contract.
DEFINITION:A written or oral agreement between two or more competent parties that
defines a job or service to be performed and which is legally enforceable.
WHEN PREPARED: Contracts are prepared after a recommendation of award of a bid,
proposal or quotation is received. or in absence of competition, prior to approval by the
City Council or City Manager, as appropriate. Contract time will be based on engineers
estimates and mutually agreed upon by both the City and the successful bidder during
contract negotiations.
HOW PREPARED: The Finance Department will prepare and coordinate contract
activity, including contract preparation: legal reviews; contract amendments; renewals;
contract change order preparation. or review if prepared by the City's consultant; change
order processing; notice to proceed: pay request review and processing for inverted
purchase orders, unless delegated, and any other activity as determined by the City
Manager.
PROCEDURE: All requests for contract preparation will be sent to the Finance
Department. The dollar thresholds for procurements will be followed unless exempted by
code, ordinance or prior Council approval. Contracts with no dollar value will be signed
by the City Manager unless he wishes to have Council approve.
39
A draft contract will be prepared by the Finance Department and sent for review to the
Contractor, City Attorney and the requesting department. If required, the Finance
Department will submit a Report to Council for the approval of the contract. All review
comments will be routed to the Finance Department. The contract will be revised and two
copies will be routed for signature from the following parties:
Contractor
Department Head
Finance Director
City Attorney
City Manager
Mayor(if applicable).
The City Clerk will ensure the Mayor's signature is obtained as required. The City Clerk
will then sign and affix the City seal. The City Clerk will return the documents to Finance
Department for distribution. Distribution of the original contract is as follows: Vendor, City
Department, City Clerk and Finance Department. If multiple departments require the
document, copies will be made and distributed to departments. If the contract involves the
collection of revenue, the Finance Department receives two copies of the contract. The
City Clerk will record and retain all officially approved and executed original contract
documents.
RESPONSIBILITY: The affected department will monitor the contract for compliance with
terms and conditions of the contract. The Finance Department will monitor contracts for
procedural, legal and statutory compliance, and to assist in dispute resolution.
SECTION XV
PURCHASES NOT REQUIRING BIDS
PURPOSE: This section defines the limitations of purchasing without solicitation.
Authorization for purchase of these items will follow the threshold approval authority as
outlined in this Policy.
SOLE SOURCE AND PROPRIETY SOURCE: The following criteria must be met in
order to satisfy the sole source or proprietary source requirement:
a. It is the only item that will produce the desired results (or fulfill the specific
need) ...or
b. The item is available from only one source of supply... or
c. The item is available from more than one vendor but due to extreme
circumstances, only one vendor is suited to provide the goods or services.
Sole source and proprietary source purchases are exempt from competitive
requirements. However, all sole source requisitions exceeding $10,000 00 in value will
be electronically advertised for a period of at least 5 business days. The steps to follow
for sole source and proprietary source purchases are as follows:
a. The User Department/Division and the Finance Department shall attempt to
locate competition. Staff will also check for piggyback contracts. If no other
40
sources are found, the User Department/Division shall submit to the Finance
Department a completed sole source/proprietary source form, indicating the
requisition number.
b. A sole source or proprietary source form shall be used to justify and
document the requirement. The form shall state why only one source can
produce the desired results (or fulfill the specific need).
c. The Finance Department will electronically post a description of all
requisitions meeting the requirements for competitive pricing for a period of at
least seven (7) business days after the receipt of a completed sole source
form from the department.
d. The Finance Director shall review and approve or disapprove, in writing; sole
source/proprietary source designation.
e. The User Department/Division shall be notified of disapproved requests and
the purchase shall be made in accordance with standard procedures.
f. When the Finance Director approves a sole or proprietary source, staff shall
conduct negotiations on price, delivery, and terms. The price must be
determined fair and reasonable.
g. The Finance Department shall keep a log of sole/proprietary source
purchases, which includes the vendor name, the amount, item description,
justification, and the purchase order number.
h. For those instances that services are needed involving multiple years (i.e.
maintenance of equipment, warranty, etc.) the request must be combined to
capture the project, as a whole, and the proper approval must be obtained.
STANDARDIZATION
DEFINITION: Standardization is the process of examining characteristics and needs for
items of similar end usage and developing a single specification that will satisfy the need
for most or all purchases for that purpose. Proprietary purchases (usually components)
maintain a degree of continuity to the original or existing decor,equipment. or programs.
Where standardization is determined to be desirable by the Finance Director, the
purchase of materials, supplies and equipment and certain contractual services may be
made by negotiation.
Compatibility to existing equipment will be an acceptable justification for waiver of
bidding procedures provided the item meets the other criteria within the definition of sole
source item (i.e.; available from only one source and only item that will produce the
desired results).
COOPERATIVE PURCHASING
DEFINITION: An approach in which several organizations jointly buy selected items.
They may form or utilize a centralized buying service that purchases specified types of
items for all members of the group or cooperate informally. The resulting volume buying
usually produces significant cost savings for group members.
41
The Finance Director shall have the authority to join with other units of government in
cooperative purchasing ventures when the best interests of the City would be served
and the same is in accordance with City Ordinances. Purchases in any amount may be
made against established G.S.A. State of Florida,or other units of government and non-
profit organizations term contracts without bidding, provided they are in the best interest
of the City.
•
Purchases from the current City cooperative contracts, state term purchasing contracts,
or state university system cooperative bid agrcernents,agreenients and non-profit
organizations, will be an acceptable alternative procedure for bidding, providing all
terms and conditions of the contract apply.
OTHER NON-COMPETITIVE PURCHASES:
The following items can be paid by PO, FPO, pre-payment procedures or paid
directly by Finance
• Governmental Contracts. Usage of other City resources, such as Environmental
Services for parking lot improvements, may be exempt from bidding practices,
unless competition is desired;
• Resale: Items for resale, such as those being marketed by an enterprise
function,shall be exempt from bid requirements;
• Copyrighted Materials: The purchase of educational tests, textbooks. printed
instructional materials, films, filmstrips, videotapes, disk or tape recording or
similar licensed or copyrighted audio-visual materials and computer software,
periodicals, and other copyrighted materials are exempt from competitive
solicitation requirements. This exception applies when purchased directly from
the producer or publisher, the owner of the copyright, an exclusive agent within
the state, a governmental agency or a recognized educational institution;
• Acquisition of Real Property, such as land, easements. rights-of-way, existing
buildings, structures. or improvements, resulting from negotiations and approved
by the City Council;
• Court-ordered fines and judgments, resulting from litigation;
• Exceptional disbursement as authorized by the City Council;
• Court-ordered fees, resulting from the judicial process, processed by the Clerk of
the Court, and recorded against the budget for such fees;
• Cash transfers and investment transactions for fiscal management purposes,
recorded against general ledger accounts;
• Accrued or current liabilities already charged against the budget. recorded
against general ledger accounts;
• Debt service payments charged against budgetary accounts as authorized by the
City Council;
• Postage or other delivery services;
• Utility refunds;
• Employee deduction;
• State or County license and permit renewals;
• Auto Tags;
• Refunds of current or prior year revenues charged against budgetary accounts:
a2
• Grant disbursements to federal, state: or local government agencies, or to private
groups or agencies;
• Insurance including but not limited to liability, property, medical, and workers
compensation insurance or payments from any loss fund established for such
purpose;
• Dues and memberships in trade or professional organizations, subscriptions for
periodicals, advertisements, copyrighted material, part-time, authorized
hospitality expenses, and fees and costs of job-related travel, seminars, tuition
registration and training as allowed by the City budget:
• Legal services, expert witnesses, court reporter services, and all other related
expenses of claims and/or litigation;
• Consultant Services, other than those regulated by§ 287.055, Fla.Stat.;
• Title insurance, title commitments, title searches, and ownership and
encumbrance searches;and •
• Transactions by Inter-local Agreement.
SECTION XVI
PURCHASING CARD
PURPOSE: The purchasing card program is a delegation of procurement authority by
the Finance Department to the Departments. Each Department Head must control the
proper use of his or her Department's cards.
PURCHASING CARD ADMINISTRATION: Each Department Head shall determine
who in their Department should have a City purchase card. The "Purchase Card
Form" is used to apply for a purchase card. The application must be completely filled
out and signed by the appropriate Department Head. Requests that exceed any of the
established "Cardholder Controls' must have the City Manager's approval. New
cardholders will receive training and must sign a "Cardholder Agreement" signifying
they understand and accept the responsibility associated with the purchase card.
1. MAKING CHANGES TO THE PURCHASING CARD: The "Purchase Card
Form" is also used to make changes to the purchasing card. Any changes to
"Cardholder Controls" will require the Department Head's signature approval.
Any change to "Cardholder Controls" that exceed the established amounts
must have the City Manager or designee's signature of approval. Changes to
fields other than "Cardholder Controls" can be made with only the
cardholder's and the approving official's signatures.
2. TRANSFERING THE CARD BETWEEN DEPARTMENTS: The purchasing
card can be transferred from one Department to another with the receiving
Department Manager or Department Head's approval. If an employee moves
to a new Department, the losing Department is required to notify the Finance
Department of the transfer by email. The Finance Department will verify
approval of the card transfer with the receiving department. Once approval is
received the card will be moved to the receiving department's group.
3. LOSING THE CARD ACCOUNT: If an employee leaves the City or no longer
requires a card, the Department Head is responsible for collecting the
43
purchasing card. The card should be cut in half once and submitted to the
Finance Department along with the "Purchase Card Form" marked to close
the account. The Finance Department will contact the issuing Bank to close
the account. If the card cannot be collected from the terminated employee,
treat the card as a"Lost or Stolen"card and follow those procedures.
4. LOST OR STOLEN CARDS: If a card is lost or stolen, immediately notify the
issuing Bank and the Finance Department. The cardholder must also notify
his approving official.
Cardholder Spending Limits:
(1) The delegation of purchasing authority that the card provides to each
cardholder sets the maximum dollar credit limit amount per month. Each time a
cardholder makes a purchase with the card, the limit will be checked, and the
authorization request will be declined should the purchase amount exceed the available
credit amount. The maximum credit limit amount is set at -e- .• - `
DOLLARS ($10,000.00; and cannot be exceeded without the approval of the City
Manager or designee. Each cardholder's credit limit is recommended by the cardholder's
supervisor on the "Purchase Card Request Form" and must be approved by the
cardholder's Department Head and by the Purchasing Card Program Administrator.
Requests for a credit limit exceeding TEN T-1=iBi•SAND AND NO/ - !_
+$10,000.00± must be justified in writing and approved by the City Manager or designee
prior to submission to the Finance Department.
(2) The City's single transaction limit for goods is set at I'VE
THOUSAND AND NO1100 DOLLARS ($5,000.00=. Single item purchases exceeding
S1,000 00 but under$5,000-88, are allowed with supporting documentation.
(3) The single transaction purchase limit is defined as the total
transaction dollar limit for a single transaction. The maximum single purchase limit is set
I at ==EVE THOUSAND A 4D 4O0 DOLLARS-($5,000-4}--and cannot be exceeded
without prior coordination with the Finance Department and approved by the Finance
Director. Each cardholder's single purchase limit is recommended by the cardholder's
supervisor on the "Purchase Card Request Form" and must be approved by the
cardholder's Department Head and by the .Finance Department Administrator (or
designee). Finance in conjunction with the Department may change the single
transaction limit based on operation. Requests for a single purchase limit exceeding
FIVE THOUSAND AND NOi1C0 DOLLARS '$5,000 C0; must be justified in writing and
approved by the City Manager prior to submission to the Finance Department.
(4) The City's Emergency Operation Center will designate personnel
involved during declared emergency. Limits of designated cardholders will be increased
• as necessary for recovery efforts. The maximum credit limit amount is set at TV-,4)
•
?=iUNDRED AND F-WTI'THOUSAND-AND . .•• ! RS $250,000-0e4. Purchases
made with emergency purchase cards must follow emergency purchasing procedures.
(5) The Finance Department may use the P-Card as a payment method
to pay for any invoice 4p4a450761445704 in any amount. Any payment over$50,000 will
require the City Manager's prior approval.
44
(6) Fleet may exceed single transaction limits of $5,000 :0--on sole
source/standardized items related to Fleet Maintenance items only, with supporting
documentation.
PURCHASING CARD USE:
(1) The purchasing card is to be used for CITY PURPOSES ONLY. The
purchasing card may be used for all legitimate City purchases unless specifically
prohibited in this section. The City is exempt from paying sales tax.
(2) The purchasing card has the cardholders name embossed on it and
is to be used only by that cardholder only. No other person is authorized to use the
card.
(3) Each transaction may be comprised of multiple items, but each
item(s) cannot exceed the single item purchase dollar limit. Purchases will be denied if
the authorized monthly purchase limit, the single purchase limit, or the daily transaction
limit is exceeded. Purchases are not to be split in order to stay within the single
transaction purchase limit.
(4) All items purchased over the counter to be paid by using the card
must be immediately available. Back ordering is not permitted.
(5) All items purchased by telephone order or from the Internet that will
not be confirmed with a written order and will be paid by using the card must be delivered
by the vendor within the thirty (30) day billing cycle. The order should not be placed
without this assurance.
(6) The purchasing card MAY NOT be used to purchase fuel, oil,
personal items,telephone calls, or items listed on the"Do Not Buy List"
(7) The purchasing card MAY be used to purchase fuel when on
overnight and or out of state travel. Fuel purchase may be made only for a city owned
vehicle or rental vehicle ONLY. Employee must be on designated travel status.
(8) The purchasing card MAY NOT be used to make cash advances or
to write VISA checks.
(9) The purchasing card cannot be used to purchase like items totaling
over $25,000 00--annually. These items should be purchased using competitive
purchasing procedures. The use of the purchasing card is not intended to replace
effective procurement planning which enables volume discounts.
(10) Cardholders must follow their department's control of funds
procedures to ensure that sufficient funds are available prior to making a purchase.
(11) The least expensive item that meets the City's basic needs should
be sought
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PURCHASING CARD TRAINING:
(1) Initial Training: Each cardholder will be provided with initial training
prior to issuance of the purchasing card. The training will cover the proper use and
restrictions of the purchasing card.
(2) Annual Training: Annual training will be provided at least once per
year. Annual training will be mandatory for all cardholders and all approving officials.
Cardholders missing the scheduled annual training will be given an opportunity to take
makeup training. Failure to accomplish mandatory annual training will result in loss of
card privileges. Approving Officials who miss the scheduled annual training will be given
an opportunity to makeup training. Failure to accomplish mandatory annual training will
result in loss of Approving Official authority and cardholder privileges for cardholders
reporting to that official.
PURCHASE CARD PROGRAM INTERNAL CONTROLS:
(1) The Finance Director will establish automated card restrictions as
allowed by the issuing bank's software. The Finance Director or designee will establish
a City account allowing access to the issuing Bank's database. This will allow the Card
Administrator to view cardholder information and statements online.
(2) The Finance Department will review each statement and supporting
documentation. The Finance Department will contact cardholders directly and attempt
to resolve any statement discrepancy found. If unable to resolve the issue with the
cardholder directly, the Finance Department will elevate the problem to the Department
Head for resolution
(3) Any incident of improper unauthorized use of the card or non-
compliance to City policy shall be immediately reported to the Personnel Director and
employee Department Director.
PURCHASE TRANSACTION DOCUMENTATION:
All purchase transactions fall into one of two categories; face to face (i.e., over the
counter)or remote(i.e.,telephone, Internet or fax).
a) FACE-TO-FACE: The cardholder should get a receipt for any face-to-face
transaction. The receipt serves to document both the order and receipt of
goods/supplies.
b) REMOTE: The cardholder must document the order when it is placed. Items
purchased by telephone should be documented by keeping a log of orders (a
phone log). A log entry is not required if the order is documented some other
way. such as a fax back confirmation or a web page printout. When the goods
are received, the packing slip must be matched to the log (or confirmation)
showing the order.
PREPARING TRANSACTIONS FOR PAYMENT:
Transactions must be reviewed, substantiated, approved in the Online System and
transaction documentation submitted to Finance for payment within five days of
receipt.
a) REVIEW: The cardholder shall review the transaction for correctness. Ensure
all charges are legitimate and no sales tax was charged.
b) SUBSTANTIATE: Each transaction should be documented with a receipt.
Provide account numbers for each transaction in the City's system. Print
documentation from the City's system and attach to transaction receipts and
submit to Finance.
c) APPROVE: The P c. -approving Official Director car designee (usually the
cardholder's immediate supervisor) or designee shall review each transaction
and check all documentation. Any errors. sales tax issues or questionable
purchases must be resolved before submitting to Finance. The Approving
Official's review of transaction certifies all transactions as legitimate expenditures
of City funds.
d) MISSING DOCUMENTATION: The cardholder is responsible for providing
required documentation. If a receipt is lost. attempt to obtain a duplicate. If a
duplicate cannot be obtained, prepare a statement that includes all the
information normally found on the receipt and a brief explanation for the lost
documentation. Continual abuse may result in loss of the card and disciplinary
action.
e) DISPUTED CHARGES: If the cardholder questions a charge on the statement,
the cardholder shall contact the vendor directly and attempt to reach resolution.
If the cardholder reaches an agreement with the vendor, there is no dispute. If
the vendor refuses to acknowledge the error or will not issue a credit, the
cardholder must fill out the issuing bank's "Purchase Card Disputed Charge
Form" and send it to the Finance Department. The bank will then adjudicate the
disputed charge.
"DO NOT BUY LIST"
The following items may not be bought using the purchasing card. A requisition and
purchase order must be used.
• Telephone calls
• Cash advances
• Personal items (i.e., items for your own use)
IT will purchase any computer related equipment or equipment that interfaces with City
computers. Exception to using the Purchasing Card for computer related equipment or
software purchases are made by MIS to support operational requirements.
SECTION XVII
VENDOR COMPLAINTS
AND DISPUTES (PROTESTS)
47
PURPOSE: The City of Edgewater encourages prompt and fair handling of all
complaints and disputes with the business community. In an effort to resolve disputed
matters in an equitable manner, without fear of retribution on the part of the vendor, the
following procedures are adopted'
DEFINITION: A formal objection or disapproval issued by a vendor.
PROCEDURE: The Finance Director or his/her representative shall post a tabulation of
competitive sealed bids/quotes along with the intended award recommendations on the
City's bidding services website.
I All awards under$10,00000-will not be subject,to protest. For awards of$10,000-8+,1-or
greater, only rejected bidders or quoters who were the apparent lowest bidder/quoter
and the second apparent lowest bidder or quoter shall have standing to protest a
rejection of the bid, quote or contract award, respectively. All proposers responding to a
RFP may protest the proposal selection.
Pursuant to Florida Administrative Code, Chapter 120, any person allegedly adversely
affected by the decision or intended decision of award must file a written notice of
protest with the Finance Department within 72 hours after posting of the bid tabulation
or after receipt of notice by the City of intended award. The nature of protest must be
followed within 10 days of filing. by a formal written notice fully detailing all elements,
which promulgated the protest. This notice must be delivered to the Finance Director or
his/her representative and must contain the bid/quote/proposal number and the nature
of the complaint.
After notice is provided, the Finance Director will gather evidence and discern facts and
make a recommendation to the City Manager. The City Manager will present his
recommendations to the governing body that will make the final decision on the matter.
All decisions of the governing body are final.
Failure to observe any or all of the above procedures shall constitute a waiver of the
right to protest a contract award. In the event of a timely protest, the procurement shall
be halted unless the City determines award of a contract without delay is necessary to
protect the interests of the City. In the event an award is needed without delay, the City
Manager's findings shall constitute final administrative action.
SECTION XVIII
CAPITAL ASSET TRACKING
PURPOSE: Capital asset control entails tracking, compiling and maintaining an
inventory of capital assets to control losses due to negligence or theft,to provide a basis
for insurance claims and identify surpluses. Capital asset records are set up to comply
with Florida Statute 274.
DEFINITION: Capital assets are tangible items (e.g. land, buildings, building
improvements, vehicles, machinery, equipment and infrastructure) or intangible items
I (e.g. easements, water rights) with original cost or value of S50,000-00-or more, with
an estimated useful life of at least one (1) year following the date of acquisition.
48
Capitalization thresholds are to be applied to individual items rather than groups of
similar items (e.g. desks and tables), unless the effect of doing so would be to eliminate
a significant portion of total capital assets.
PROCEDURES: The Finance Department will coordinate the maintenance of the City's
Capital Assets Database. Purchasing will provide copies of each purchase order that
contains a purchase of a Capital Asset to the appropriate Accounting personnel. The
ordering (receiving) Department must notify the Finance Department when an item is
received so proper identification may be affixed, and records can be updated. All
Capital Asset equipment is assigned a permanent City of Edgewater identification
number. and is physically tagged or otherwise marked by the Finance Department.
Records are entered and maintained for each item, and include the following
information:
• Capital Asset Item Number
• Item Description
• Serial Number
• Make and Model
• Account Number
• Location and Custodian
• Payment Information: Vendor name, P.O. Number and Date of purchase
• Purchase Price
• Date of Last Inventory
The copy of the purchase order provides much of the above information. Additional
information is obtained upon physical tagging of the equipment and through
communication with the vendor and the Department. Finance is responsible for taking a
biennial Inventory of property in their custody. The Capital Asset Property
Coordinator(s) will distribute an inventory list to each Department biennially. This
biennial inventory will validate all items and any item unaccounted for will require a
Missing, Lost or Stolen Form to remove the item from inventory. The biennial inventory
shall be compared with the property record. and all discrepancies shall be traced and
reconciled. The results of the biennial inventory will be provided to the Finance Director
in an executive summary format.
SURPLUSING OF CAPITAL ASSETS: All capital assets that are obsolete, excess, or
no longer needed by the owning Department/ are to be reported to the Finance
Department for disposition. All items must be listed on a Request to Transfer/Declare
Surplus form and submitted to the Finance Department. The Finance Department is
responsible for approving the disposition of the capital assets. If the item is a transfer
between Departments, the Request to Transfer/Declare Surplus Form requires both the
transferring and receiving Department Director's signatures. The Capital Asset
Coordinator will verify ownership, description, and identification number of the
equipment on the form and approve the transfer or surplus of the item. Upon approval,
a copy of the form will be provided to Finance to update the computerized inventory.
49
The Management Information Services Division must approve the transfer of
information technology equipment.
DISPOSITION OF PROPERTY: Non-capital items such as broken chairs, tables,
calculators, desk accessories. books, tools, which are considered as `junk', may be
disposed of via the landfill or trash by the individual department(s). Capital Assets that
have identification numbers can be disposed of as follows:
1) Assets with no salvage value: Transfer/Declare Surplus form addressed
to the Finance Department, signed by the Department Director and
containing the identification number, description, condition and
recommended disposal method (i.e. landfill disposal) of each piece of
equipment. Once approved. the requesting Department must dispose of
property locally.
2) Property with salvage value: Disposal must be in accordance with Florida
Statute 273, after the Department has screened to see if another
Department can use the Property.
3) The Finance Department will prepare the list of disposal equipment,which
will be part of the City Manager's report to ensure that the list is recorded
in the minutes of the City.
SECTION XIX
RECEIPT OF GOODS AND MATERIALS
PURPOSE: Receiving of goods and materials confirms that the products received meet
the purpose of procurement as intended.
DEFINITION: The business function that is responsible for verifying that the goods
received are the goods that the organization ordered. This involves inspecting and
accepting incoming shipments.
USER(ORDERING) AGENC-YDEPARTMENT
The department is charged with the responsibility of inspecting all supplies to determine
quality,quantity and conformance with specifications and the purchase order.
The Finance Department shall have the authority to question, examine, or test the
quality of materials requested or received by the department.
PROCEDURE IN DEPARTMENTS
Upon receipt of materials and after inspecting and/or testing, the department shall
receive the item in the on-line system receipt-processing module. Any variation in
quantity shall be noted on the system. If the quantity does not agree with the supplier's
delivery ticket, the department shall notify the vendor of the discrepancy. If the
materials delivered are not in conformance with specifications and are not acceptable
by the department, they shall notify the vendor and file a complaint with the Finance
50
Department by using the evaluation form and citing the reasons for withholding
acceptance.
The Finance Department will take immediate action to require replacement by the
supplier or otherwise take action to supply the department with the needed materials.
SECTION XX
INVOICES
PURPOSE: An invoice provides evidence of the purchase of goods and services and
should include adequate detail to meet audit objectives.
DEFINITION: An invoice is a document that itemizes charges for the purchase of
supplies, materials. equipment or services that have been furnished. It is how the
supplier informs the City of its obligations and should contain the same basic
information as the purchase order.
WHAT AN INVOICE SHOULD CONTAIN
• Purchase order number
• Date of order(if possible)
• Date of delivery
• Terms of payment(2% - 10 days, Net 30 days,etc.)
• Itemized list of materials or services rendered
• Delivery destination
• Quantities. prices, (both unit and total). terms and any other charges contained in
the purchase order
• Delivery, freight charges, cartage and demurrage charges should be listed
separately from the materials and supplies.
• Invoices should be submitted to the Finance Department.
WHO RECEIVES INVOICES
The purchase order details the remittance address for submittal of invoices.
• The Finance Department shall match the invoice with the on-line receipt.
• The Finance Department. after checking and reviewing the invoice,will prepare a
voucher for payment.
All invoices are to be charged to the City of Edgewater and shall be forwarded to the
Finance Department. If received by the department. the original invoice must be
forwarded to the Finance Department after proper receiving has been accomplished on
the on-line system. The Department Director or designee shall approve each invoice
51
■
that is sent to the Finance Department. Approval limits will be based on signature
authorization cards as approved by the Director. The Finance Director or designee may
grant certain exceptions as to the requirement for payment without an original invoice.
The City does not accept two party invoices.
SECTION XXI
VENDOR EVALUATION
PURPOSE: Vendor performance measurement is crucial to keeping good suppliers
and terminating business relations with poor suppliers.
DEFINITION: The Vendor Evaluation Form should be utilized to inform the Finance
Department of excellent service provision, including services performed beyond the
requirements or to report any difficulties due to poor service, poor performance. poor
quality,or materials not meeting specification requirements. This shall not be utilized as
an expediting tool.
HOW TO PREPARE
A properly prepared Vendor Compliment and Complaint Form must contain the
following information:
• Date
• Vendor name, address,and phone number
• Department and contact person
• Purchase order number
• Department Director signature
• Brief statement of exactly what level of service provided the vendor's
performance of the services, or what the problem is, and why the product or
service is unacceptable.
• All available documentation shall be attached
DISTRIBUTION
The Vendor Evaluation Form shall be forwarded to the Finance Department. Finance
Department will send a copy to the vendor for their response.
GENERAL INFORMATION
The department shall be notified as to the vendor's response and any action to be taken
by the Finance Department.
GI
SECTION XXII
CONFLICTS OF INTEREST
PURPOSE: The City wishes to minimize conflicts of interests. Therefore, the following
will be adhered to:
• No official or employee of the City, or member of the City Council shall participate
in the selection or in the award or administration of a contract if a conflict of
interest, real or apparent, would be involved. Such a conflict would arise when:
• Any member of his or her immediate family,
• His or her business or personal partner, or
• An organization, which employs, or is about to employ. any of the above has a
financial or other interest in the firm selected or considered for award. No official
or employee of the City, or member of the City Council shall either solicit or
accept gratuities, favors, or anything of monetary value exceeding $25.00 from
contractors, potential contractors, or parties to sub-agreements.
Violations of these standards of conduct may result in disciplinary action as set forth in
Chapter 113, Part Ill, Florida Administrative Code provided that such disciplinary action
does not conflict with the jurisdiction of the State of Florida Commission on Ethics.
SECTION XXIII
PROCEDURES FOR FEDERALLY FUNDED PROJECTS
1. All federally funded projects will be advertised a minimum of three weeks.
2. When establishing a contract time for all federally funded projects, the guidelines
established in Exhibit"A'shall be followed. Contract time extensions shall be subject to
the concurrence of the FDOT Division Administrator and will be considered in
determining the amount of Federal participation. Contract time extensions submitted for
approval to the FDOT Division Administrator, shall be fully justified and adequately
documented.
3. Two engineering estimates (at 60% and 100% submittals) will be completed for each
project. Unit price cost for each item will be utilized (when possible) and will utilize local
contractor pricing. The 100% submittal will be certified by the responsible Professional
Engineer.
4. The City of Edgewater will comply with 23 CFR 635.413 as shown in Exhibit`B' on all
Federally funded projects. The warranty will begin the day after substantial completion
is awarded.
5. Federal guidelines will be followed for the fair, open and competitive selection of
qualified consultants (Professional Services) in accordance the Brooks Act. Section 40
USC 1101-1104 as shown in Exhibit"C'.
6. LAP Simplified Acquisition and Small Purchase Process shall be in accordance with the
LAP manual which outlines the current limits which indicate this process may be used if
53
the construction project is less than 5325,000 and the total contract amount for the
professional service(s) is less than$150,000
7. For federal-aid contracts, a small locality presence criterion of no more than 10 percent
may be used. This criterion cannot be based on political boundaries and should be used
on a project-by-project basis for projects where a need has been established. If a firm
currently outside the locality criteria indicates as part of its proposal that it will satisfy the
criteria in some manner, such as establishing a local project office, it should be
considered to have met the locality criteria. The LAP Manual can be viewed by logging
on to:
http:llwww.dot.state.fl.uslproiectmanagementoffice/LAP/LAP TOC shim
8. There is no DBEIMBE preference for federally funded projects. While the use of
DBE/MBE consultants is encouraged. there should be not be any DBE/MBE preference
selection criteria in the selection process.
9. The LAP Manual specifically addresses that no fewer than three firms are to be
shortlisted to submit proposals.
10. In the event a bid is not read out loud. the name of the bidder and reason will publically
announced at the letting.
SECTION XXIV
PURCHASING POLICY ADOPTION
The Purchasing Policy shall be adopted by City resolution. The Finance Director and
Department Directors shall review the Policy annually and submit recommendations to
the City Manager for review and approval. If a change in the Policy is recommended for
approval by the City Manager, the Finance Director will prepare the necessary report to
Council.
Approved by the City Council of
the City of Edgewater at a
meeting held on the 3rd 11day (Formatted:Superscript _l
of Marchi----2Q44August 2015
under Agenda Item 48-.
Resolution No. 20154-R-0427
c4
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EXHIBIT "A"
56
FLORIDA DEPARTMENT OF TRANSPORTATION
GUIDELINE FOR
ESTABLISHING CONSTRUCTION
CONTRACT DURATION
July 2010
DISCLAIMER:
The following documentation as a whole was derived from Federal Highway
Administration's Guide for Construction Contract Time Determination Procedures
(TA 5080.15 dated 10115/02)
Purpose
To provide guidelines for determining contract time for construction projects.
Authority
Sections 334.044(2) and 337.18, Florida Statutes
Background
A. Contract time is the maximum time allowed in the contract for completion of all
work contained in the contract documents. Contract time often arises as an
issue when there is too much time or too little time given in the contract. If too
much time is allowed then the traveling public is being inconvenienced and the
contractor does not appear to be aggressively pursuing the work. There may be
a number of reasons for a project to appear dormant, such as weather
limitations, concrete curing times, materials arriving late, etc. However, all too
often the causes are traceable to excessive time originally established by the
scheduling engineer to complete the project or poor contractor scheduling of
construction operations. If not enough time is allowed then the contractor will
submit claims for added cost and time to the contract.
B. In many instances, the duration of highway construction projects is more critical
today than it was in the past. Several of the reasons are listed below:
1. There are an increasing number of resurfacing, restoration, and
rehabilitation type projects being constructed under traffic, resulting in an
increase in the exposure of construction workers and motorists.
2. Traffic volumes on most highways are significantly greater and are
continuing to increase thereby creating a greater impact on the motoring
public in both safety considerations and cost.
3. Proper selection of contract time allows for optimization of construction
engineering costs and other resources.
C. In addressing the need for completing critical construction projects where it is
important to minimize traffic inconvenience and delay, many States have applied
non-traditional contracting methods such as Bonuses and Incentive/Disincentive
specifications for early completion.
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Elements in Determining Contract Time
A. The application of written procedures for determining contract time is important
so that production rates and other considerations are applied uniformly
throughout the State. This document should be used in conjunction with the
procedures in the Construction Project Administration Manual (CPAM),
Section 1.2 addresses how to classify projects based upon appropriate factors
such as high traffic volumes, projects with incentive/disincentive clauses, etc.
Experience and judgment should be used in the final determination for which
projects are critical. These procedures also address the importance of
geographical and weather differences throughout the State, which could affect
contractor productivity rates. The fact that some types of work can or cannot be
undertaken during certain times of the year should also be addressed. Where
applicable, the affect of working under traffic also needs to be considered such
as lane closure restrictions, holidays and special events.
B. The reasonableness of the contract time included in contracts is important. If
time is insufficient, bid prices may be higher and there may be an unusual
number of time overruns and contractor claims. Contractors should be provided
the ability to schedule work to maximize equipment and labor, and if contract
time is too short, these efficiencies are more difficult to obtain resulting in higher
prices. If the time allowed is excessive, there may be cost inefficiencies by both
the Department and the contractor. The public may be inconvenienced
unnecessarily and subjected to traveling on a roadway where safety is less than
desirable for an extended period of time. In establishing contract time, the
scheduling engineer should strive for the shortest practical traffic interruptions to
the road user. If the time set is such that all work on a project may be stopped
for an extended period (such as scheduled events) and the contractor can still
complete the project on schedule, it means the contract time allowed was
excessive.
C. For most projects the essential elements in determining contract time include: (1)
establishing production rates for each controlling item; (2) adopting production
rates to a particular project; (3) understanding potential factors such as business
closures, environmental constraints: and (4) computation of contract time with a
progress schedule.
Establishing Production Rates
A. A production rate is the quantity produced or constructed over a specified time
period. Estimating realistic production rates is important when determining
appropriate contract completion time. Production rates may vary considerably
depending on project size. geographic location. and rural or urban setting, even
for the same item of work. Production rate ranges should be established in the
State's written procedures based on project type (grading, structures, etc.), size.
and location for controlling items of work.
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B. In establishing production rates to be used for determining contract time, an
accurate database should be established by using normal historical rates of
efficient contractors. One method of establishing production rates is to divide the
total quantity of an item on previously completed projects by the number of
days/hours the contractor used to complete the item. Production rates based
upon eight-hour crew days or per piece of equipment are recommended.
Production rates developed by reviewing total quantities and total time are not
recommended as they may result in misleading rates which tend to be low since
they may include startup, cleanup, interruptions, etc.
C. The most accurate data will be obtained from site visits or review of project
records (i.e., field diaries and other construction documents) where the
contractor's progress is clearly documented based on work effort, including work
crew make up, during a particular time frame. A data file based on three to five
years of historical data (time, weather, production rates, etc.) should be
maintained.
D. The production rates used should be based on the desired level of resource
commitment (labor, equipment, etc.) deemed practical given the physical
limitations of the project. Representatives of the construction industry are also
usually willing to assist in developing rates and time schedules. Rates should be
updated regularly to assure they accurately represent the statistical average rate
of production in the area.
E. Some jurisdictions apply production rate data taken from some of the published
rate guides. This data may be useful as guidance; however, the relationship of
these production rates to actual highway construction projects may be difficult to
correlate.
OTHER FACTORS WHICH INFLUENCE CONTRACT TIME
A. In addition to production rates, the following items should be considered when
determining contract time:
1. Effects of maintenance of traffic requirements on scheduling and the
sequence of operations;
2. Curing time and waiting periods between successive paving courses or
between concrete placement operations, as well as specified embankment
settlement periods;
3. Seasonal limitations for certain items when determining both the number
of days the contractor will be able to work as well as production rates;
4. Conflicting operations of adjacent projects, both public and private;
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5. Time for reviewing false-work plans, shop drawings, post-tensioning plans,
mix designs, etc.;
6. Time for fabrication of structural steel and other specialty items;
7. Coordination with utilities;
8. Time to obtain necessary permits;
9. The effect of permitting conditions and/or restrictions;
10. Restrictions for nighttime and weekend operations:
11. Time of the year of the letting as well as duration of the project;
12. Additional time for obtaining specialty items or materials with long-lead
requirements;
13. Other pertinent items as determined by the Scheduling Engineer.
In setting contract time it is recommended that the time is based on production rates per
hour or per day on a working day basis, a conversion factor of 1.4 should be used and
non work days should not be programmed into the scheduling software. If non-working
days are calculated into the schedule such as holidays, keep in mind when granting day
for day time.
Adapting Production Rates to a Particular Project
A. Before time durations for individual work items can be computed, certain project
specific information should be determined and some management decisions
made. The relative urgency for the completion of a proposed project should be
determined. The traffic volumes affected as well as the effect of detours should
be analyzed. The size and location of the project should be reviewed, in addition
to the effects of staging, working double shifts, nighttime operations. and
restrictions on closing lanes. The availability of material for controlling items of
work should be investigated. For example, it might be appropriate to consider
the need for multiple crews on a specific item to expedite the completion when
there are exceptionally large quantities or when there is a large impact on traffic.
B. Procedures to accelerate project completion should be considered when
construction will affect traffic substantially or when project completion is crucial.
This is especially important in urban areas with high traffic volumes. When
accelerating contract time for time sensitive projects, production rates should be
based on an efficient contractor working more than eight hours per day, more
than five days per week and possibly with additional workers. The development
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and application of a separate set of production rates for critical projects is
recommended.
Computation of Contract Time - Develop a Progress Schedule
A. The contract time for most construction projects can be determined by
developing a progress schedule. A progress schedule shows the production
durations associated with the chosen production rates for the items of work. The
time to complete each controlling item of work included in the progress schedule
is computed based on the production rates applicable to that project. Items
should be arranged by chronological sequence of construction operations. Minor
items that may be performed concurrently should be shown as parallel activities.
B. In determining a progress schedule it should be remembered that the start and
end dates for each controlling item need to be based on the earliest date for
which work on that item will begin and how long it will take to complete. The
earliest start date for each activity will be determined by the completion of
preceding activities, and should allow for the fact that some activities can begin
before the preceding activity is entirely completed. Additional time should be
also allowed in the contract for initial mobilization.
Contract Time Determination Techniques
Contract time determination techniques generally fall into the categories of bar charts
and critical path techniques. These techniques are described below:
A. Bar Charts
1. Bar charts or Gantt charts are graphical representations of projects with
specific completion dates and activities. Bars or lines are drawn
proportional to the planned duration of each activity.
2. A brief description of the procedure used to develop a bar chart to
determine contract time is as follows:
a. The first step in developing a bar chart is to break a project down
into separate activities or operations necessary for project
completion.
b. Once all the activities necessary to complete a project have been
listed, the duration and completion date of each activity needs to be
determined based on production rates.
c. With this data established, the bar chart can be prepared. A line or
bar is drawn on the chart showing the time when work will be
performed for each activity. The resulting diagram will represent a
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project, showing when each activity will be undertaken and
completed.
d. With bar charts, the progress of a project may be monitored for
each activity by drawing a bar or line below the original scheduled
performance to show the actual duration for each activity as it is
corn pleted.
3. Bar charts are advantageous in that they are simple to develop and easy
to understand, and they offer a good method of determining contract time.
Some disadvantages are that they do not show the interrelationship and
inter-dependency among the various phases of work. Bar charts are
difficult to properly evaluate when construction changes occur. Also,
controlling items are shown in the same manner as minor items, thus
making it more difficult to determine which items actually control the
overall time progress of the project. The use of bar charts are not
recommended for contract administration and project management of
large or complex construction projects.
C. Critical Path Method (CPM)
The Critical Path Method (CPM) focuses on the relationship of the critical
activities, specifically, those which must be completed before other activities are
started. Working from the project's beginning and defining individual project
tasks and the number of days to perform each task, a logical diagrammatic
representation of the project is developed. A CPM depicts which tasks of a
project will change the completion date if they are not completed on time. The
evaluation of critical tasks allows for the determination of the time to complete
projects. Because of the size and complexity of most projects, this method is
most often applied using a computer software program. Within the CPM
software. the ability to use a Program Evaluation Review Technique (PERT)
provides a breakdown of each activity to boxes. This enables the user to view
the connection of relationships to each activity. CPM software also has the
ability to display the contract time in a bar chart view as well.
1. The first step in applying the CPM method is to break a project down into
separate tasks or operations necessary for project completion. Each of
these separate operations or processes is called an activity. The
completion of an activity is called an event.
2. Once all the activities necessary to complete a project have been listed,
the relationship of these activities to one another needs to be determined.
In some instances, several activities can be undertaken concurrently, and
at other times, certain activities cannot be undertaken until others have
been completed. Generally, when determining the sequence of
operations, some questions need to be asked such as: "What needs to be
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done before proceeding with this activity" or "what can be done
concurrently?" Every activity has a definite event to mark its relationship
with others with respect to completing a task
3. In working with this procedure, a diagrammatic representation of the
project is developed showing the correct sequence and relationship of
activities and events. Each activity is shown as an arrow leading to a
node, which indicates the completion of an event or the passage of time.
The start of all activities leaving a node depends on the completion of all
activities entering a node. Therefore, the event represented by any node
is not achieved until all activities leading to the node have been
completed. The resulting diagram will be a schematic representation of a
project, showing all the relevant activities and events in correct sequence.
4. An actual time can be set to each activity based on production rates and
other appropriate factors. The time to complete each activity is then
shown on each arrow to indicate the duration. The "early start" for each
activity is the earliest point in time that an activity can start, provided that
all activities before it have finished. This is not necessarily the point in
time that it will start: however, it is the earliest time that it can start. The
"early finish" for an activity is merely the duration of the activity after its
early start. As is the case with the "early start," this is not necessarily the
point in time that the work represented by the activity will be over, but is
the earliest point in time that it can occur. A "finish" date in CPM is the
first day after the physical completion of the activity. The completion time
of a project is the sum of the longest time path leading to completion of the
project.
5. The optimum time and cost for performing the project can be evaluated by
assigning resources i.e. equipment, labor hours, and materials to each
activity. The diagrammatic representation of the project then provides a
means to evaluate the costs incurred with respect to the completion of
specified activities.
6. Advantages of using the CPM include:
• It is an accurate technique for determining contract time and
verifying that the project can be constructed as designed and with
identified construction sequences;
• It is a useful tool for project managers in monitoring a project,
especially when dealing with relationships of work items with
respect to time; and
• Activities responsible for delays can be identified and corrective
measures to keep a project on schedule can be determined.
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7. Disadvantages of using the CPM include:
• The CPM requires experienced and knowledgeable staff to be used
effectively;
• They require regular updates to assure that the contractor's
operation is accurately represented.
Other Project Considerations
Construction time on certain projects such as lighting or signalization may be governed
by the long lead-time necessary to obtain materials. To minimize traffic disruption, the
contract may specify a completion date several months after the notice to proceed, but
the contractor should be limited to a relatively short on-site time. This may be
accomplished by including in the contract a "conditional notice to proceed" clause which
would allow a specified amount of time to purchase and assemble materials followed by
issuance of a full work order which would be issued upon expiration of the assembly
period or sooner, upon the contractor's request.
Delayed or flexible notice-to-proceed dates may be appropriate for certain projects
where the ultimate completion date is not critical. The contracting agency may wish to
provide a notice-to-proceed window in order to increase the probability of a competitive
bid where only a limited number of contractors are available to perform the work. Such
projects may include:
• Projects that consist of specialized work (seal coats, highway planting,
pavement grooving or bridge painting) where a large number of these
projects are being advertised within a short time period;
• Projects with a very limited number of working days;
• Building projects.
This allows the contractor to schedule this contract with consideration of other work
he/she may have in the same paving season. Net benefits include lower project
inspection cost and a minimal disruption to traffic.
An option that may be applicable to some projects is dividing a project into phases with
each phase having its own completion date. This may be applicable when coordinating
with other projects or activities in the area in order to meet tight deadlines.
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BASIS OF PRODUCTION RATES:
The production rates shown are divided into 3 categories: low, average and high. The
low rate is typically used on projects where there are large numbers of intersections,
driveways. high congested traffic and a large number of existing utilities which may
interfere with the proposed construction. The average rate is typically used in projects
where there are minimum existing utilities, low to medium traffic volume/congestion with
minimal intersections and driveways. The high rate is typically used on rural and
limited access facilities.
SCOPE OF WORK DEFINITIONS:
R.O.W. Preparation:
Clearing and grubbing (Acres): The removal of top soil, trees, minor physical objects
and other vegetation from the construction site using mechanical equipment.
Excavation (C.Y.): The removal and transporting of in situ soils on the construction site
using mechanical equipment.
Embankment (C.Y.): The placing and compaction of soil on the construction site using
mechanical equipment.
Drainage Structures/Storm Sewers:
Storm Sewers (L.F.): The excavation, installation. and backfilling of drainage or sewer
pipes including structures.
Box Culverts (C.Y.): The excavation, forming, reinforcing, pouring, finishing. stripping.
and backfilling of cast in place concrete box culverts on the construction site. If using
pre-cast units, then the units should be changed to L.F. and appropriate production
rates substituted.
Inlets & manholes (Each): The installation of pre-manufactured inlets manholes for
drainage or sewer systems. Time is included in Pipe.
Bridge Structures:
(Note: The production rates on several items appear low since they must include time
for the total scope of activities necessary to complete an item.)
Cofferdams (S.Y.): The installation, dewatering and minor excavation associated with
building a cofferdam system for a bridge construction site.
Sheet Piling (S.F.): The installation of sheeting for retaining walls and deep
excavations. Do not add to cofferdams.
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Piling (L.F.): The installation of piling for bridge foundations.
Footings (C.Y.): The layout, forming. reinforcing, placing, curing and removing forms for
reinforced concrete bridge footings.
Columns, Caps & Bents (C.Y.): The layout, forming, reinforcing, placing, curing and
removing forms for reinforced concrete bridge columns, caps and bents.
Wingwalls (S.Y.): The layout, forming, reinforcing; placing, curing and removing forms
for reinforced concrete wingwalls for bridges.
Bridge deck (total depth)(C.Y.): The layout, forming, reinforcing, placing, curing and
removing forms for reinforced concrete bridge decks. The production rates have been
set to include time for all components of the deck, including precast plank under slab,
thus the full depth of the deck is used to calculate quantity.
Bridge curbs/walks (L.F.): The layout, forming, reinforcing, placing, curing and
removing forms for reinforced concrete bridge curbs and walkways.
Bridge handrails (L.F.): The layout, forming, reinforcing. placing, curing and removing
forms for cast in place reinforced concrete bridge handrails.
Retaining walls (S.F.): The layout, excavation, forming, reinforcing, placing, curing and
removing forms for cast in place reinforced concrete retaining walls. The time for
precast proprietary wall systems in included in embankment.
Base Preparations:
Stabilized Roadbed (S.Y.): The placement, mixing and compaction operations involved
in the stabilization of subgrade soils.
Base material (S.Y.): The placement, mixing and compaction of flexible base material.
Hot mix asphalt base (Ton): The laydown and compaction of hot mix asphalt concrete
base course material. The production rates are taken from the graph for plant mix.
Curb and gutter (L.F.): The layout and construction of new roadway curb and gutter
using automated equipment or forms and hand finish.
Concrete pavement repair (S.Y.): The removal and replacement of sections of
unsatisfactory or failed Portland cement concrete pavement.
Milling/planning (S.Y.): The removal of the surface level of existing pavements using
automated milling or planning equipment.
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Plant mixed surfaces (Ton): The laydown and compaction of hot mix asphalt concrete
surface course material. The production rate is taken from the graph for Plant Mix.
Asphalt Friction Course (1 course) (Ton): The laydown and compaction of asphalt
concrete friction course material.
Cement Concrete paving (Rebar + curing) (S.Y.): The layout, reinforcing, placing.
curing and jointing of Portland cement concrete pavement.
Precast traffic barriers (L.F.): The layout and installation of precast concrete traffic
barriers. If barriers are to be cast in place, then the units should be changed to C.Y.
and the production rates adjusted accordingly.
Permanent Signing and Traffic Signals:
Small Signs (Each): The installation of small highway information and warning signs
mounted on metal posts driven into soil along a highway.
Overhead signs (Each): The installation of large highway information and directional
signs mounted on metal frames over a highway. It is assumed that the footings and
poles that support
The frames are already in place.
Major traffic signals (Each): The installation of automated traffic signals and their
support systems at highway intersections.
Pavement markings (L.F.): The application of paint or thermoplastic pavement marking
materials to a highway pavement.
Raised Pavement Markers (RPM) (Ea.): The application of adhesive and raise
pavement markers.
Seeding (S.Y.): The seeding of grasses, application of fertilizer and mulch, and cutting
into soil.
Final clean-up (Sta.): The removal of debris, dirt and other construction materials from
a highway pavement and adjacent right of way at the end of a construction project. The
time for this activity is included in "General Time".
Structure demolition (WKDAYS): The demolition and removal of the materials for large
structures (multi-story buildings, retaining walls, towers underground tanks, etc.) from
the right of way of new construction projects.
Remove old structures (small) (WKDAYS). The demolition and removal of the materials
for small structures (Single-story wood buildings. storage sheds, fences, road signs,
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etc.) from the right of way of new construction projects. Time for this is included in
clearing and Grubbing.
Bridge demolition (WKDAYS): The demolition and removal of all materials for an
existing bridge structure and related appurtenances (approaches, gates, signals, etc.).
Erect temporary bridge (WKDAYS): The layout and construction of a temporary bridge
structure and related appurtenances for a highway construction project.
Remove temporary bridges (WKDAYS): The demolition and removal of all materials for
a temporary bridges structure and related appurtenances for a highway construction
project.
PRODUCTION RATES
The following Excel spreadsheet link is a compilation of statewide rates ranging from
low to high. Although this list is extensive, it may not include a production rate relevant
to a particular project. Other sources may need to be perused to achieve the required
rates for a particular scope of work within that contract.
Production Rates (Statewide)
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EXHIBIT`'B"
Federal Highway Administration, DOT §635.417
(c) A State transportation depart- will apply instead of paragraphs (a)
merit may require a specific material through(d)of this section.
or product when there are other ac- (1)General project warranties may be
ceptable materials and products, when used on NHS projects,provided:
such specific choice is approved by the (1)The term of the warranty is short
Division Administrator as being in the (generally one to two years); however,
public interest. When the Division Ad- projects developed under a public-pri-
ministrator's approval is not obtained, vate agreement may include warran-
the item will be nonparticipating un- ties that are appropriate for the term
less bidding procedures are used that of the contract or agreement.
establish the unit price of each accept-
(ii) The warranty is not the sole
able alternative. In this case Federal-
means of acceptance;
aid
participation will be based on the
lowest price so established. (iii) The warranty must not include
(d)Reference in specifications and on items of routine maintenance which
plans to single trade name materials are not eligible for Federal participa-
will not be approved on Federal-aid tion;and,
contracts. (iv) The warranty may include the
(e) In the case of a design-build quality of workmanship, materials and
project, the following requirements other specific tasks identified in the
apply: Federal funds shall not partici- contract.
pate,directly or indirectly, in payment (2) Performance warranties for spe-
for any premium or royalty on any pat- cific products on NHS projects may be
ented or proprietary material, speci- used at the STD's discretion. If per-
fication, or process specifically set formance warranties are used, detailed
forth in the Request for Proposals doc- performance criteria must be provided
ument unless the conditions of para- in the Request for Pro
graph(a) of this section are applicable. q document.
(3)The STD may follow its own pro-
(41 FR 36204,Aug. 27, 1976, as amended at 67 cedures regarding the inclusion of war-
FR 75926, Dec. 10.2002; 71 FR 66454, Nov. 15, ranty provisions on non-NHS Federal-
2006] aid design-build contracts.
§635.413 Guaranty and warranty (4)For best value selections,the STD
clauses. may allow proposers to submit alter-
The STD may include warranty pro- pate warranty proposals that improve
visions in National Highway System upon the warranty terms in the RFP
(NHS) construction contracts in ac document. Such alternate warranty
cordance with the following: proposals must be in addition to the
(a)Warranty provisions shall be for a base proposal that responds to the RFP
specific construction product or fea- requirements.
ture. Items of maintenance not eligible [60 FR 44274, Aug. 25. 1995, as amended at 67
for Federal participation shall not be FR 75926, Dec. 10,2002; 72 FR 45336, Aug. 14.
covered. 2007]
(b) All warranty requirements and
subsequent revisions shall be sub- §635.417 Convict produced materials.
mitted to the Division Administrator (a) Materials produced after July 1,
for advance approval. 1991, by convict labor may only be in-
(c) No warranty requirement shall be corporated in a Federal-aid highway
approved which, in the judgment of the
Division Administrator, may place an construction project if such materials
undue obligation on the contractor for have been:
items over which the contractor has no (1) Produced by convicts who are on
control. parole, supervised release, or probation
(d) A STD may follow its own proce- from a prison or
dures regarding the inclusion of war- (2) Produced in a qualified prison fa-
ranty provisions in non-NHS Federal- cility and the cumulative annual pro-
aid contracts. duction amount of such materials for
(e) In the case of a design-build use in Federal-aid highway construe-
project, the following requirements tion does not exceed the amount of
211
EXHIBIT "C"
United States Code(U.S.C.) Title 40- Public Buildings, Property and Works
Chapter 11, Section 1101- 1104:Selection of Architects and Engineers
§1101.Policy(Formerly 40 U.S.C.§541)
The policy[of the Federal Government]is to publicly announce all requirements for architectural and
engineering services and to negotiate contracts for architectural and engineering services on the basis of
demonstrated competence and qualification for the type of professional services required and at fair and
reasonable prices.
§1102.Definitions(Formerly 40 U.S.C.§542)
In this chapter,the following definitions apply:
1. Agency head.--The term"agency head"means the head of a department,agency,or bureau[of
the Federal Government].
2. Architectural and engineering services.--The term"architectural and engineering services"
means--
A. professional services of an architectural or engineering nature,as defined by state law. if
applicable,that are required to be performed or approved by a person licensed,registered.or certified to
provide the services described in this paragraph;
B. professional services of an architectural or engineering nature performed by contract that
are associated with research,planning.development,design,construction.alteration,or repair of real
property;and
C. other professional services of an architectural or engineering nature.or incidental
services,which members of the architectural and engineering professions(and individuals in their
employ)may logically or justifiably perform,including studies,investigations,surveying and mapping,
tests,evaluations.consultations,comprehensive planning.program management,conceptual designs,
plans and specifications,value engineering,construction phase services.soils engineering,drawing
reviews,preparation of operating and maintenance manuals,and other related services.
3. Firm.--The term"firm"means an individual.firm,partnership.corporation,association,or other
legal entity permitted by law to practice the profession of architecture or engineering.
§1103.Selection procedure(Formerly 40 U.S.C.§543)
a. In general.--These procedures apply to the procurement of architectural and engineering
services by an agency head.
b. Annual statements.--The agency head shall encourage firms to submit annually a statement of
qualifications and performance data.
c. Evaluation.--For each proposed project.the agency head shall evaluate current statements of
qualifications and performance data on file with the agency,together with statements submitted by other
firms regarding the proposed project.The agency head shall conduct discussions with at least 3 firms to
consider anticipated concepts and compare alternative methods for furnishing services.
d. Selection.--From the firms with which discussions have been conducted,the agency head shall
select.in order of preference,at least 3 firms that the agency head considers most highly qualified to
provide the services required.Selection shall be based on criteria established and published by the
agency head.
§1104.Negotiation of contract(Formerly 40 U.S.C.§544)
a. In general.--The agency head shall negotiate a contract for architectural and engineering
services at compensation which the agency head determines is fair and reasonable to the Federal
56
Government.In determining fair and reasonable compensation,the agency head shall consider the
scope,complexity.professional nature,and estimated value of the services to be rendered.
b. Order of negotiation.--The agency head shall attempt to negotiate a contract,as provided in
subsection(a),with the most highly qualified firm selected under section 1103 of this title.If the agency
head is unable to negotiate a satisfactory contract with the firm,the agency head shall formally terminate
negotiations and then undertake negotiations with the next most qualified of the selected firms,continuing
the process until an agreement is reached.lithe agency head is unable to negotiate a satisfactory
contract with any of the selected firms,the agency head shall select additional firms in order of their
competence and qualification and continue negotiations in accordance with this section until an
agreement is reached.
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