2016-R-33 RESOLUTION NO. 2016-R-33
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF EDGEWATER, FLORIDA, UPDATINGIRESTATING
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 and on August 17, 2015
pursuant to the adoption of Resolution#20 1 5-R-27.
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 All conflicting purchasing policies are superseded by this policy.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repealed.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!#20I(,-R-33)
1
Section 4. This resolution shall take effect upon adoption.
After motion by Cr ;luy,I, _ ! vrx- and second by
i _ Ma ,the vote on this resolution was as follows:
AYE NAY
Mayor Mike Ignasiak N
Councilwoman Christine Power
Councilwoman Gigi Bennington N.
_
Councilman Dan Blazi
Councilman Gary Conroy
PASSED AND DULY ADOPTED this 3rd day of October, 2016.
ATTEST: CITY COUNCIL OF THE
CITY OF EDGEWATER, F ? ' IDy
IV' A/411/
V `.• By:
Robin L. latusic Mike Ignasiak
City Clerk/Paralegal Mayor
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 3rd d y of
legality by: Aaron R. Wolfe, Esquire October, 2016 under Agenda Item No. 84j .
City Attorney
Doran, Sims, Wolfe&Ciocchetti
(Resolution/#2016-R-33)
I
EXHIBIT"A"
(Resolutioni#20I6-R-33)
Purchasing Policy
City of Edgewater, Florida
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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 essential 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 expressly covered within this Purchasing
Policy. All individuals required to submit a statement 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
quality performance, and delivery requirements from capable vendors meeting the
City's requirements.
TABLE OF CONTENTS
I SECTION TITLE --f Formatted:Right: -0.64"
PAGE
Requisitions 4
II Purchase Orders 7
III Solicitation and Approval Level Thresholds 8
IV Emergency Purchases 11
V Change Orders 12
VI Blanketilnverted Purchase Orders 13
VII Quotations and Bids 14
VIII Competitive Procurements (ITB, RFP, RFI, RFQ) 2424
IX Professional Services (CCNA) 2425
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 3334
XIII Bond and Bid Security 9437
XIV Contracts and Contract Processing 3,738
XV Purchases Not Requiring Bids 3439
XVI Purchasing Cards 411-12
XVII Vendor Complaints and Disputes (Protests) 1517
XVIII Capital Assets Tracking 1618
XIX Receipt of Goods and Materials '1819
XX Invoices 4-950
XXI Vendor Evaluation 5451
XXII Conflicts of Interest 5952
XXIII Procedures for Federally Funded Projects 5452
X-XW Purchasing Policy Adoption 52
XXIV Purchasing Policy Adoption 54
Exhibit A–Guidelines for Establishing Contract Duration
Exhibit B–23CFR 635.413
Exhibit C-Brooks Act, Section 40 USC 1101-1104 _(omtatted:Font:12 pt
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. Advice 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.
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 to 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 being sent to Finance Department. Requisitions not properly
authorized will not be accepted by the on-line system.
ROUTING:
1. For all purchases under $25,000, 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
i. Estimates are encouraged
ii. Preference given to local suppliers
b. Three informal quotes $5001 -$14,999
c. Three formal quotes $15,000-$24,999
2. For all purchases $25,000 or greater, the requisitioning
Department will request a formal solicitation to be issued by the
Finance Department, 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.
REVIEW OF SPECIFICATIONS-OTHER DEPARTMENTAL APPROVALS
REQUIRED: Prior to issuance of bids or the processing of a requisition with
specifications included, review of the items to be purchased and the specifications
for certain commodities and services must be made by other departments within
the City to assure open competitive bidding, compatibility, standardization, and up-
to-date specifications.The following are mandated reviews:
TYPE OF EQUIPMENT/SERVICE REQUESTED DEPARTMENT REVIEW
Information Technology Equipment Information Technology
Vehicles/Heavy Equipment Fleet Maintenance
Telephone Systems(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_require a copy of the purchase order to be
provided to the vendor. The purchase order form for purchases under $5.000_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
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 require pre-payment if under$5,000.
REGISTRATION FEES AND TRAVEL: Registration fees and travel 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
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 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 $25,000_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 all items under $5,000. Common uses
include: Subscriptions, Memberships,Advertisement and Registrations requiring a
check, Petty Cash Reimbursements and Employee Travel Reimbursement checks.
I Also, the Field Purchase orders should be used for items under$5.000 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.
Threshold Levels:
Informal quotes - $5,000 -$14,999
Written quotes - $15,000-$24,999
Formal Solicitation = $25,000 or greater or cumulative over the life of
the 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 shall maintain documentation with their requisition on all
quotes received or as to why competition was not obtained. All purchase prices
must be considered fair and reasonable. Award (non-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.
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 $25,000 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.
All Department Directors or their designee shall have the authority to authorize
purchases of goods and services not to exceed $5,000_without any quotes.
Authority is also given in case of an emergency for purchases under$25,000_when
a 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
I purchases of goods and services not to exceed $25,000_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
I goods and services, in excess of$25,000 shall be awarded by the Council, except
as otherwise provided within this section. The City Manager or designee shall
have the authority to approve all purchase orders, contracts, and Master
Agreements up to $50,000 for projects, goods and services that are 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 10% (not to exceed $50,000 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 in the adopted budget or amended budget. 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 City Manager or designee shall have the authority to settle individual claims
under contract provided the settlement does not exceed ten percent 10% (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 total cost of which
exceeds ten percent 10% (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 $25,000. Unauthorized purchases of
$25,000 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 shall
give a preference of 3% percent of the bid price to local suppliers; provided,
however, that this 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 S25,000_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.
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
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.
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
$5,000in value.
• Written or faxed quotes for purchases from $5,001 to $14,999 are 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 $15,000 but under $25,000 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 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 expecting to exceed in a single year, $25,000. 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 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 72 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").
At least fifteen (15) business days before the intended date of advertising, the
requesting Department/Division shall send the appropriate request for
bid/proposal/qualification including specifications/documentation to Finance for
preparation of the solicitation document. This will allow time for review, verification
and approval.
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 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:
1
• 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 financial 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%.
Lease Finance Agreements utilized for competitively bid items up to and including
$750,000_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
I 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.
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, gt sea. 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, 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.
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 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 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.
REQUESTS FOR CLARIFICATION OF PROPOSALS: Requests by the
Accounting Technician.Purchasinq Specialist 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.
ITBs are the least formal 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.
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. unless previously exempted or approved. The Finance
Department -is responsible for the drafting of the Council Agenda Request and
assuring appropriate approvals are obtained_- 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 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 himiher 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, hisiher 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 facilitiesiproject 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, machines, tools, vehicles; hardware, supplies, component parts or
other tangible personal property procured by the city, to which procurement this
warranty 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- (Formatted:Indent:Left: 0",Hanging: 0.25"
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
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 ven-
dor/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.
(1) appropriate financial, matorial, equipmont, facility, and porsonnet
mcnts;
(2) a caticfactory rocord of porformanco on similar projoctc;
(3) a satisfactory record of integrity;
(1) qualified legally to contract with the City: and
(5) suppliod all nococeary information in connoction with the inquiry
ineuranco, prico ehootc or roquirod organizational paper-6.
The solicitation for Proposals shall state the relative importance of price and other
evaluation factors. Award can be made to the most responsive, responsible offeror
whose proposal is determined to be the most advantageous to the City in
accordance with the evaluation criteria contained in the Proposal.
Evaluation of Proposals (Procedure):
The City's procedure for selecting is as follows:
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 Specialist 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
TechnicianPurchasing Specialist 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. Meetings
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.
5. Prior to the first meeting of the evaluation committee, the City Clerk will post
a 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 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
tteRthan $250,000_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 $25,000 or 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. 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 committee's
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.
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.
The negotiating committee will consist of the same individuals as the evaluation
committee to the extent possible. 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 S150,000or 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 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.
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 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);
Prepare Council Agenda Request(CAR)for awards greater than $15,000.
--(Formatted:List Paragraph,Left. No bullets or
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• Formatted:Incept:Left: 0.5", No bullets or
SECTION XI numbering,Tab stops:Nct at 0.5'
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:Hanging: 0.44°
practice 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
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 a project shall timely submit a letter of interest to the
City,which shall include the following:qualifications,availability and
past work. Along with its 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.
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 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$250,000or 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 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 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:
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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.
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 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:
1. (1) A performance bond satisfactory to the City. executed by a. Formatted:Numbered+Level:1+
suretyauthorized to do business in the State of Florida or Numbering Style:1,2,3,...+Start at: +
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otherwise secured in a manner satisfactory to the City, in an amount equal at: 0.5"
to one hundred percent (100%)of the price specified in the contract.
2_ (2) A payment bond satisfactory to the City, executed by a suretyNoumber ng style be2eds+. smrt at:1+
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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.
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.
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 a4431- edand routed for signature from the following parties:
Contractor
Department Head
Finance Director
City Attorney
City Manager
Mayor
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 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 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
1 ._____-- Formatted:Justified,Space Before: Auto,
• DEFINITION: An approach in which several organizations jointly buy A . Auto, No bullets or numbering,Pattern:
Clear
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.
.The Finance Director shall have the authority to join with other units of government- Formatted:Font:12 pt
in cooperative purchasing ventures when the best interests of the City would be Formatted:Normal(Web),Justified
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 including established and approved
Cooperative Purchasing Associations (i.e., U.S Communities. The Cooperative Formatted:Font:(Default)Arial,12 pt -
Purchasing Network -TCPN, .National Joint Powers Alliance - NJPA: The ,,,ifilL Formatted:Font:12 pt
Interlocal Purchasing System - TIPS USA . etc.) term contracts without Formatted:Font(Default)Arial,12 pt
bidding, provided they are in the best interest of the City. Formatted:Font:12 pt
Formatted:Font:(Default)Arial,12 pt
Purchases from the current City cooperative contracts, state term purchasing Formatted:Font:12 pt
contracts, or state university system cooperative bid agreements.. and non-profit
organizations, and approved Cooperative Purchasing Associations 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;
• 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- (Formatted:None,Tab stops: 0.5",Left
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 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: Formatted:Font:Bold,AU caps
Formatted:Numbered+Level: 1+
1_ (1) The delegation of purchasing authority that the card Alignment left+Aligned at+0.25'+1 Indent
provides to each cardholder sets the maximum dollar credit limit amount per l at: 0.5"
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$10,000 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 $10,000 must be justified in writing and approved by the City
Manager or designee prior to submission to the Finance Department.
2_ (2) --The City's single transaction limit for goods is set at-- Formatted:Numbered+Level:1+
$5,000. Single itempurchases exceeding $1.000 but under $5,000, are Numbering Style:1,2,3,...: 0.25"Start t:1+
g Alignment:Left+Aligned at: 0.25"+Indent
allowed with supporting documentation. ,at: 0.5"
_ (3) The single transaction purchase limit is defined as the- r Formatted:Numbered+Level:1+
transaction. The maximum single Numbering StyLeft
1,2,3,..+start at:1+
total transaction dollar limit for a single
g Alignment:Lek+Aligned at: 0.25"+Indent
purchase limit is set at $5,000 and cannot be exceeded without prior at: 0.5"
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 $5,000_must be justified in
writing and approved by the City Manager prior to submission to the Finance
Department.
4_ (4) The City's Emergency Operation Center will designate. I Formatted:Numbered+Level:1+
personnel involved duringdeclared emergency. Limits of designated ' Numbering Style:1,2,3,.. +Start at:1+
g y g Alignment:Left+Aligned at: 0.25"+Indent
cardholders will be increased as necessary for recovery efforts. The cat: 0.5"
maximum credit limit amount is set at $250;000. Purchases made with
emergency purchase cards must follow emergency purchasing procedures.
5_ (5) The Finance Department may use the P-Card as a---,rFowtted:Numbered+Level:1+
payment method to pay for any invoice-‘,in any amount. Any payment over mNumbering Style:1,2,3,...+Start at:1+
Alignment:Left+Aligned at: 0.25"+Indent
$50,000 will require the City Manager's prior approval. l at: 0.5"
6_ (6) Fleet may exceed single transaction limits of$5,000 on-- f Formatted:Numbered+Level: 1+
sole source/standardized items related to Fleet Maintenance items only, with Numbering Style: 1,2,3,...+Start at:1+
y Alignment:Left+Aligned at: 0.25"+Indent
supporting documentation. at: 0.5"
PURCHASING CARD USE:
1_ (1) The purchasing card is to be used for CITY PURPOSES- Formatted:Numbered+Level:1+
ONLY. The purchasing card may be used for all legitimate City purchases Numbering Style: 1,2,3,...+Start at:1+
Alignment:Left+Aligned at: 0.25"+Indent
unless specifically prohibited in this section. The City is exempt from paying at: o.s"
sales tax.
2_ (2) The purchasing card has the cardholder's name—, Numbering Numbered
ub zed+.!�swrtat:i+
embossed on it and is to be used only by that cardholder only. No other Alignment:Left+Aligned at: 0.25"+Indent
person is authorized to use the card. ,at: 0.5"
3_ (3) Each transaction may be comprised of multiple items,- Formatted:Numbered+Level:1+
but each items cannot exceed the single itempurchase dollar limit. Numbering Style: 1,2,3,...+Start at:1+
item(s) g Alignment:Left+Aligned at: 0.25"+Indent
Purchases will be denied if the authorized monthly purchase limit, the single ,at: 0.5"
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— (4) All items purchased over the counter to be paid by •- "Formatted:Numbered+Level:I+
usingthe card must be immediatelyavailable. Back orderingis not Numbering Style:1,2,3,...+Start at:1+
Alignment:Left+Aligned at: 0.25"+Indent
permitted. ,at: 0.5"
5_ (5) All items purchased by telephone order or from the- Formatted:Numbered+Level:1+
Internet that will not be confirmed with a written order and will be paid by Numbering Style:1,2,3,...+Start at:1+
Alignment:Left+Aligned at: 0.25"+Indent
using the card must be delivered by the vendor within the thirty (30) day at: 0.5"
billing cycle. The order should not be placed without this assurance.
• Formatted:Indent:First line: 1"
6_ (6) The purchasing card MAY NOT be used to purchase- Formatted:Numbered+Level:1+
Numbering Style:1,2,3,.
fuel, oil, personal items, telephone calls, or items listed on the "Do Not Buy .+start at:1+
Alignment:Left+Aligned at: 0.25"+Indent
List" at: 0.5'
7. (7) The purchasing card MAY be used to purchase fuel" Formatted:Numbered+Level:1+
when on overnight and or out of state travel. Fuel purchase may be made
Numberinglignmt:LeftStfle: Aligned1,2,3,... +0.25"t at:1+
Alignment: + at: +Indent
at: 0.5"
only for a city owned vehicle or rental vehicle ONLY. Employee must be on
designated travel status.
8_ (8) The purchasing card MAY NOT be used to make cash.* Formatted:Numbered+Level:1+
advances or to write VISA checks. Numbering Style:1,2,3,...+Start at:1+
Alignment:Left+Aligned at: 0.25"+Indent
(9) at: 0.5"
Formatted:Indent:Left: 1", No bullets or
(10)9. The purchasing card cannot be used to purchase like items totaling' numbering
over$25,000 annually. These items should be purchased using competitive Formatted:Numbered+Level:1+
purchasing procedures. The use of the purchasing card is not intended to Numbering Nl Left+1,Aligned at: Start
+1l1:1dent
replace effective procurement planning which enables volume discounts. at: o.s"
{11)10. Cardholders must follow their department's control of funds' Formatted:Numbered+Level:1+
procedures to ensure that sufficient funds are availableprior to makinga Numbering Style:1,2,3,...+Start at:1+
Alignment:Left+Aligned at: 0.25"+Indent
purchase. at: 0.5",Tab stops:Not at 1.5"
(12) • Formatted:Indent:Left: 1", No bullets or
numbering
(13)11. The least expensive item that meets the City's basic needs should be' Formatted:Numbered+Level:1+
sought Numbering Style:1,2,3,.. +Start at:1+
g Alignment:Left+Aligned at: 0.25"+Indent
' at: 0.5",Tab stops: -0.06",Left+Not at 1.5"
PURCHASING CARD TRAINING:
I 1_ (1) Initial Training: Each cardholder will be provided with' Formatted:Numbered+Level:1+
initial trainingprior to issuance of the purchasingcard. The trainingwill cover Numbering Style:1,2,3,..+Start at:1+
Alignment:Left+Aligned at: 0.25"+Indent
the proper use and restrictions of the purchasing card. at: 0.5"
2_ (2) Annual Training: Annual training will be provided at" Formatted:Numbered+Level:1+ •
least once peryear. Annual trainingwill be mandatoryfor all cardholders and Numbering Style:1,2,3,...+Start at: 1+
Alignment:Left+Aligned at: 0.25"+Indent
all approving officials. Cardholders missing the scheduled annual training will at: 0.5"
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.
I PURCHASE CARD PROGRAM INTERNAL CONTROLS:
Formatted:Numbered+Level:1+
1_ 1 The Finance Director will establish automated card restrictions as Numbering style:1,z,3,...+start at:1+
Alignment:Left+Aligned at: 0.25"+Indent
allowed by the issuing bank's software. The Finance Director or designee at: 0.5"
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.
Formatted:Indent:Left: 0.5",First line: 0"
2. The Finance Department will review each statement and supporting- 'Formatted:Numbered+Level: 1+
documentation. The Finance Department will contact cardholders directly Numbering Style:1,2,3,...+Start at:1+
and attempt to resolve any statement discrepancy found. If unable to Atignment:Left+Aligned at: 0.25' +Indent
at: 0.5"
resolve the issue with the cardholder directly. the Finance Department will
elevate the problem to the Department Head for resolution.
• ----- Formatted:Indent Lek: 0.5",First line: 0"
.--- - (2) The Finance Department will review each -statement and• �i Formatted:None,rib seeps: 0.06',List tab
-Notat 0"
directly and attempt to resolve any statement discrepancy found. If unable to
the problem to the Department Head for resolution.
• Formatted:Indent:Left: 0.5'
3. Any 13) Any incident of improper unauthorized use of the card' - Formatted:Numbered+Level:1+
or non-compliance to City policy shall be immediately reported to the Number ng Style: 1,2,3, .. -start at: 1+
Alignment:Left-4-Aligned +Indent
Personnel Director and employee Department Director. at: 0.5",Tab stops: 0.31 Left
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 approving Director or 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)
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.
All awards under$10,000 will not be subject to protest. For awards of $10,000 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 (e.g. easements, water rights) with original cost or value of$5,000 or more,
with an estimated useful life of at least one (1) year following the date of
acquisition. 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. 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) DEPARTMENT
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 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 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.
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 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 III, 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
Formatted:Font:12 pt
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.
Formatted:Font: 12 pt
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.
Formatted:Font:12 pt
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 the construction project is less than
$325,000 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:
Formatted:Font:12 pt
tt•://www.dot.state.fl.usl•ro ectmana•ementoffice/LAP/LAP TOC.shtm / Formatted:Font:12 pt
8_There is no DBE/MBE 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 City has issued a policy statement which expresses its commitment to
the nondiscrimination provisions of Title VI. The policy statement shall be
circulated throughout the City's organization and to the general public.
Such information shall be published where appropriate in languages other
than English
Formatted:Font:12 pt
9,1 ID. The LAP Manual specifically addresses that no fewer than three
firms are to be shortlisted to submit proposals.
4-,q-11. In the event a bid is not read out loud, the name of the bidder and
reason will publically announced at the letting.
Formatted:Font color:Auto,Not Highlight
Formatted:Justified
SECTION XXIIV
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.
Formatted:Font:12 pt
Approved by the City Council of• (Formatted:Indent:Left: 3.5"
the City of Edgewater at a meeting
held on the—r`-3rd day of August
October 2015 2016 under Agenda
Item 8-i_. Resolution No.
20152016-R-2-33
EXHIBIT "A"
FLORIDA DEPARTMENT OF TRANSPORTATION Formatted:Font: 12 ot._Not Italic 1
GUIDELINE FOR ESTABLISHING CONSTRUCTION Formatted:Centered
,CONTRACT DURATION, Formatted:Font: 12 at
July 2 010 Formatted:Font: 12 at,Not Italic
.\\\\\\' Formatted:Font: 12 at
Formatted:Font: 12 2(Not Italic
Formatted:Font: 12 pt 1
Formatted:Font: 12 pt,Not Italic I
Formatted:Font: 12 pt SJ
Formatted:Centered
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 10/15/02)
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
proiect 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 incentiveidisincentive 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.
For most projects the essential elements in determining contract time include: (l
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. cleanups
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;
4 of 13
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 IA 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.
F 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 he 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 proiect 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
6 of 13
project, showing when each activity will he 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
completed.
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 defming 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 proiect 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 proiect 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.
8 of 13
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.
9of13
,BASIS OF PRODUCTION RATES: ___---,Formatted:Font:12 pt
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: l Formatted:Font:12 pt
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: _{Formatted:Font:12 pt
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: _{Formatted:Font:12 pt
(Note: The production rates on several items appear low since they must include time for the
total scone 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.
10 of 13
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: Formatted:Font:12 pt
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 lavdown 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.
Millingiplanning(S.Y.): The removal of the surface level of existing pavements using automated
milling or planning equipment.
11 of 13
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
adiusted accordingly.
,Permanent Signing and Traffic Signals: Formatted:Font 12 pt
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 Formatted:Font:12 pt
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)
Formatted:Left
EXHIBIT"B"
,23 CFR 635.413 /{Formatted:Font: 12 pt,Bold
,Code of Federal Regulations Formatted:Font:12 pt
Title 23 -Highways
Volume: 1
Date: 2012-04-01
Original Date: 2012-04-01
Title: Section 635.413-Guaranty and warranty clauses.
Context: Title 23 - Highways. CHAPTER I - FEDERAL HIGHWAY ADMINISTRATION.
DEPARTMENT OF TRANSPORTATION. SUBCHAPTER G - ENGINEERING AND
TRAFFIC OPERATIONS. PART 635- CONSTRUCTION AND MAINTENANCE.
Suboart D - General Material Requirements. • (Formatted:Left
4 635.413.Guaranty and warranty clauses. The STD may include warranty provisions (formatted:Font:12 pt
in National Highway System (NHS) construction contracts in accordance with the
following:
1a)Warranty provisions shall be for a specific construction product or feature. Items
of maintenance not eligible for Federal participation shall not be covered.
(b)All warranty requirements and subsequent revisions shall be submitted to the
Division Administrator for advance approval.
(c) No warranty requirement shall be approved which, in the judgment of the Division
Administrator. may place an undue obligation on the contractor for items over
which the contractor has no control.
(d)A STD may follow its own procedures regarding the inclusion of warranty
provisions in non-NHS Federal-aid contracts.
(e) In the case of a design-build project. the following requirements will apply instead
of paragraphs(a)through(d)of this section.
11) General project warranties may be used on NHS projects. provided:
(i)The term of the warranty is short(generally one to two years); however,
projects developed under a public-private agreement may include
warranties that are appropriate for the term of the contract or agreement.
(ii)The warranty is not the sole means of acceptance;
(iii)The warranty must not include items of routine maintenance which are
not eligible for Federal participation; and.
44
(iv)The warranty may include the quality of workmanship, materials and
other specific tasks identified in the contract.
(2) Performance warranties for specific products on NHS projects may be used at
the STD's discretion. If performance warranties are used, detailed performance
criteria must be provided in the Request for Proposal document.
(3) The STD may follow its own procedures regarding the inclusion of warranty
provisions on non-NHS Federal-aid design-build contracts.
(4) For best value selections, the STD may allow proposers to submit alternate
warranty proposals that improve upon the warranty terms in the RFP document.
Such alternate warranty proposals must be in addition to the base proposal that
responds to the RFP requirements.
160 FR 44274,Auq. 25. 1995, as amended at 67 FR 75926. Dec. 10,2002: 72 FR
45336,Auq. 14. 20071
• (Formatted:Lek
EXHIBIT"C"
BROOKS ACT
united States Code (U.S.C.)Title 40-Public Buildings, Property and Works j Formatted:Font:12 pt,Font color:Auto )
,Chapter 11, Section 1101 - 1104: Selection of Architects and Engineers Formatted:Font color:Auto
1101. Policy(Formerly 40 U.S.C.§ 541) Formatted:Font:12 pt
Formatted:Justified
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, Formatted:Font: 12 pt
agency, or bureau [of the Federal Government].
2. Architectural and engineering services - The term "architectural and Formatted:Font:12 pt
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, Formatted:Fort:12 pt
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)
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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 �Formatted:Font:12 pt
annually a statement of qualifications and performance data.
c. Evaluation✓ - For each proposed project, the agency head shall evaluate Formatted:Font:12 pt
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 i(Formatted:Font:12 pt
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 generals - The agency head shall negotiate a contract for architectural and Formatted:Font:12 pt
engineering services at compensation which the agency head determines is fair and
reasonable to the Federal 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, / Formatted:Font: 12 pt
as provided in subsection (a), with the most highly qualified firm selected under,section —1 Formatted:Font: 12 pt
1103of this title. If the agency head is unable to negotiate a satisfactory contract with ft Formatted:Font. 12 pt
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. If the 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.
44.