2019-R-20 - Purchasing Policy RESOLUTION NO.2019L-R-20
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF EDGEWATER FLORIDA, UPDATING/RESTATING THE
CITY OF EDGEWATER PURCHASING POLICY;
REPEALING ALL RESLUTIONS IN CONFLICT HEREWITH
AND PROVDING 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 92015-R-27 on October 3, 2016 pursuant to the adoption
of Resolution#2016-R-33.
WHEREAS, in an, effort to be consistent with current law 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 J. 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 .All conflicting purchasing policies are superseded by this policy.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 part of resolutions in conflict herewith are hereby
repealed.
Resolution 92019-R-20
Section 4. This resolution shall take effect upon adoption.
Aftermotion bye- , orfJl�cil and second by
n LT
�+V^ -� ",the vote on this resolution was as follows:
Mayor Mike Thomas
Councilwoman Christine Power �t
Councilwoman Kimberly Yaney
Councilwoman Megan O'Keefe INf
Councilman Gary Conroy
PASSED AND DULY ADOPTEDthis day of October,2019.
ATTEST: CITY COUNCIL OF THE
rc� _ CITY OF EDGEWATER,FLORIDA
Robin Matusick, M(�— Mike ho
City Clerk/Paralegal Mayor
For the use and reliance only by the city of Edgewater, Approved by the City Council of the City of Edgewater
Florida. Approved as to form and legality by: during the Council Meeting held on this 7th day of
Aaron R.Wolfe,Esquire October,2019 under Agenda Item No.8 .0,
City Attorney
Doran,Sims,Wolfe,Cioccheni&Yoon
Resolution 42019-R-20
FXMBIT "A'
Resolution#2019-R-20
Purchasing Policy
�Oity of Edgewater, Florida
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City of
EDGEWATER
October 37,29762019
Resolution No.28762(719-R4319
FOREWORD
The Finance Department prepared this "Purchasing Manual" to serve as the bas's for purchasing
policies and procedures for the qty of Edgewater.
The CM 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 fairdealings, 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 alt 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. Flonda 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:
I. 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.
2
CODE OF ETHICS
The F' De dm t of the City of Edgewater brace d subscnbes to the Professional
standards of the Code of Ethics of the National Institute for Govemmental Pu rchas'no
Those omfessional standards are'.
• Seeks or accepts a position as head for ewlovee)only when fully in accord with the
wofessional pnnciples applicable thereto and when confident of possessing the pual fwl ons to
serve under those principles to the advantage of the employ ng omadzation
• Believes in the d onhv and worth of the service rendered by the omanaation and the soc etaI
responsibilities assumed as a trusted Public servant
• Is governed by the highest ideals of honor and infar'dy m all oubl is and cersonal relationships n
order to mer11 the respell and inspire the confidence of the organeation and the public being
served.
• Believes that cersonal agprandzement or cersonal profit obtained through misuse of public or
personal relationshiw is dishonest and not tolerable.
• Identifies and eliminates Pa hidpabon of any ndiv dual in oceratlonal sduations where a confl'd
of interest may be involved.
• Believes that members of the l nsthute and its staff should at no t me or under any
circumstances.accept dimdly or indirectly aif6 pmtuities or other things of value from
suppliers,which might influence or apcear to influence Purchasing decisions.
•- _ Keeps the povernmer l omanization informed.through auumonale channels.on problems and
progress of applicable oceratiens by emphasizing the importance of the fads.
• Resists encroachment on control of Perspnnel in order to Preserve intepritv as a professional
maw
• Handles all mmonnel matters on a merit basis and in compliance with applicable laws
prohibiting discnmination in employment on the basis of politics. religion.colornational origin.
disability,gender,age,pregnancy and other protected charadenstics.
• Seeks or discenses no cersonal favors. Handles each administmtive problem otiedively and
emoathetinallv without discrimination.
The NIGP Global Best Practices for Ethical Pr=rement are hereby inw=rated by reference(Exhibit
Al romanetl:rmr. u N
3
TABLE OF CONTENTS
SECTION TITLE PAGE farrnartm:klsM1u o•
I Requisitions 4
11 Purchase Orders 6
III Solicitation and Approval Level Thresholds 7
IV Emergency Purchases 10
V Change Orders 10
VI BlanketAnverted Purchase Orders 11
VII Quotations and Bids 12
VIII Competitive Procurements(ITB,RFP, RFI,RFQ) 20
Ix Professional Services(CCNA) 21
X Procedures for Multiple Consultants under CCNA 23
x1 Design-Build anolor Design-Build Operating Services 25
x11 Evaluation of Proposals and Recommendation for Award 27
XIII Bond and Bid Security 30
XIV Contracts and Contract Processing 31
XV Purchases Not Requiring Bids 32
XVI Purchasing Cards 33
XVII Vendor Complaints and Disputes(Prolests) 38
XVIII Capital Assets Tracking 3440
x1X Receipt of Goods and Materials 4441
xx Invoices 4442
XXI Vendor Evaluation 4342
XX11 Coni of Interest 4243
%x111 Procedures for Federally Funded Projects 4344
XXIV Purchasing Policy Adoption 4445
Exhibit A-NIGP Global Best Practices for Ethical Procurement
Exhibit XB—Guidelines for Establishing Contract Duration
Exhibit&C—23CFR 635.413
4
Exhibit 6D—Bmoks Act,Section 40 USC 1101-1104
5
SECTION 1
REQUISITION
PURPOSE'. The City of Edgewater currently utilizes the Central Square - Navilim Ill
prowrement 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 netts for operafing supplies
and equipment at the best value and least cost to the City of Edgewater.
3. To assist in the preparation or review ofspecifcations forall 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.
6. To notify the user depamnenl 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 emailed 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. PLANAHEADI
7. Under no circumstances 6 the City of Edgewater to be obligated by departments in any
manner whatsoever without prior approval.
i 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 suppliers).
10. List any quotes obtained by vendor name, individual conceded, and price obtained (by
line item). Check with the Finance Department for additional sources.
11. Verify that all sources of funds identified on the requisNgn are properly coded.
12. Specify correct commodity code of items to be purchased.
6
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 ebEaw—vQnAL 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 shoultl 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 quotas
as:
a. Quotes not required under$5,000
I. Estimates are encouraged
ii. Preference given to local suppliers
I Three informal quotas$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,erther 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,standandization, and up-
to-care specifications.The following are mandated reviews
7
TYPE OF EQUIPMENT/SERVICE REQUESTED DEPARTMENT RENEW
Information Technology Equipment Information Technology
Vehides/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 It
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 fad unless t
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 o difficulties with outstanding orders or
contracts antl received terns 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 ched<with a manual check request. These should be kept to a minimum. The purchasing
card should be used for items Vie 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.
B
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 deparbmend fund.
ENPLOYEE 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 Hems under $5,000. Common uses includeSubscriptions, Memberships,
Advertisement and Registrations requiring a check, Petty Cash Reimbursements and Employee Travel
Reimbursement checks. Also, the Field Purchase orders should be used for hems 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 backed 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 a designed to mmdmize 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 - 55,000-$14,999
Written quotes - $15,000-$24,999
Formal Solicitation - $25,000 or greater ac=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 I solicitations for each threshold level. In addition every effort will be made to
obtain quotes I solicitations from local suppliers.
DepartmenUDivision 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 d 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.
9
Types of formal solicitations used for competitive procurement are as follows:
Request for Proposals(RFP)—A solicitation for response for a commodity anNor 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 (l - A solicitation inviting potential contractors or vendors to submit
sealed, written pricing for specific goods or services in conformance with specificatlons, 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 del:rmine specifications,qualficstions 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 ro or in excess of the mandatory bid amount of$25,000 over the
fife of the contract, shall be formally competitively awarded based on the submission of bids (ITBs),
proposals submitted in response ro 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 M ensure a
fair and reasonable price.
All Department Directors or their designee shall have the authority to authorize purchases of goads and
services not to exceed$5,"without any quotas. Authority is also given in case of an emergency for
purchases under $25,000 when at least one vendor has been contacted and the purchase order is
issued through the Finance Department within the nerd business day. The Finance Department will
review the requisition to ensure a fair and reasonable price is received.
The City Manager or designee shall have the authority to award and execute purchases of goods and
services not to exceed $25,000 including change orders and amendments. The City Manager or
designee is authorized to renew options on approved contracts, as long as t is per the terms,
conditions and renewal period specified in the original contract and the total dollar amount for each
contract or purchase order is within the Council approved budget.All purchases of goods and services,
in excess of$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
10
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 escalationlde-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 comracls, 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 maims 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 anginal
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 witlraO 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 stale 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 shalt--mal a preference
of 3%percent of the bid price to local suppliers;provided,however,that this section in no way prohibits
the right of Me City Counal 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 rwt 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. Addi1 onally
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 bemuse 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 oullined in
this Policy and subject to review by the Finance Director. The City Manager may approve those
exceeding $25,000 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 ro the need. A purchase order will be issued upon proper approval and processing of the
requisNon. The Finance Department may obtain additional prim 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: H 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 fallowing 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 pars and labor needed
for repairs to vehicles of equipment, which must be kept in operating order. Emergencies due to
negligence are to be avoided. Failure W anticipate normal heads, 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, an 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 Ponding source, addition or
deletion of items,quanfity,delivery time,or cost.
12
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 reffed the change.
If required,the vendor will be sent a hani purchase order refiecting 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 I payment is being
finalized or W 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
dem 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 taxed 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 forth. The Finance Department .11 make the
necessary corrections to the on-line system once approvals are obtained.
SECTION VI
BLANKETIINVERTED PURCHASE ORDERS
PURPOSE. Blanketrinverted purchase orders allow multiple transactions to be made over a specified
period of time, a practice aimed at reducing the number of small orders, Will short-tern releases to
satisfy demand requirements,while creating efficendes of effort and decreasing costs.
DEFINITION. A blanket order is a purchase order issued for the purchase of indeterminable
miscellaneous items or material, supplies, pars, 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 spec 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
13
1 Description and types of items to be purchased
2. The period of tune 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 headed.
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 d 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 reseed- 'red but t don items,excluding
services, under$5,000 in value.
• Written or taxed quotas 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.
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• 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 bks 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 sealetl envelopes. The proposals are opened and evaluated. The bid pries envelopes are
then opened for those proposals that are found to be responsive and responsible and award is made
based on once alone.
The Finance Department's bidding notification service maimains 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 aulhonty 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
DepartnentlDivsion shall send the appropriate request for bid/proposallqualification including
specifications/documentation to Finance for preparation of the solicitation document. This will allow
time for review,verification and approval.
In general. spea5cetions should define the level of performance required rather than specific brand
name. For the benefit of vendors and the department, speafications must be dear and concise. The
Finance Department reserves the right to challenge specifications to allow open competition.
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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 celwlating 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 acquisNon, 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 rales and other market considerations,
• The financial condition of the City,
• The types,availability and stability of revenues to be pledged for repayment of the debt',
• Type of debt to be issued,and
• The nature of the projects to be financed (i.e., approved schedule of improvements, non-
recurring improvements,etc.).
Capital Improvements related to enterprise fund operations(e.g.,water systems, wastewater systems,
refuse disposal systems,etc.)shall be financed solely by debt to be repaid from user fees and charges
generated from the respective enterprise Pond 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 me useful Ile 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.
16
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 W and Rmlud RE li Ooo 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 INWTATIONS: 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 vendoes 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 Por the purpose of clarification to assure hit 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 aRliate 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 m a public entity', may not submit a bid, proposal,or reply on a contact
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
267.017, Florida Statutes,for a period of 36 months following the date of being placed on the convicted
vendor list.
DRUG-FREE WORKPLACE:In accordance with section 287 387, Flonda 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.
17
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 inn 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 Hem 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 anti fine from doing business
with the CM for a specified period of time, including but not limited to: submitting bids, RFP, andlor
quotes;and,c.immediate termination of any contract held by the individual and/or fimr for cause.
IMMIGRATION REFORM AND CONTROL ACT: Proposer acknowledges, and without exception or
stipulationany firms)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, at sea. and regulations
relating thereto, as either may be amended. Failure by the awarded fiml(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 temlinale said agreement immediately.
BID BONDIDEPOSITS. By signing the proposal. Proposer acknowledges that it has read and
understands the bonding requirements for the proposal, H 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 Owners 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 Proposers firth. It is,therefore, imperative that the proposer discusses
these requirements with the Proposers insurance agent,as noted on the Insurance Check List,so that
the Proposer can make allowances for any additional costs.
The Proposers obligation under this provision shall not be limited in any way by the agreed upon
contract price,or the Proposers limit of,or lack of,sufficient insurance protection.
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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 foreach 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 revived not be read aloud.
The City shall not bear the responsibility,for proposals delivered W the City Clerk past the stated date
and/or time indicated, or to an incorrect address by proposers personnel or by the proposers outside
tamer. However,the City Clerk,or designee, shall reserve the right to accept proposals received after
the posted close time only under the fallowing condition:
The lardy submission of the proposal is due to the following circumstances,which shall include but
not be limited to: late delivery by commercial carder such as Fed Ex, UPS or vuner 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 anyway 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 of to
re-advertise using the same or revised documentation,at its sole disuetion.
REQUESTS FOR CLARIFICATION OF PROPOSALS. Requests by the Purchasing Specialist W a
proposers)for clarification of proposals)shag be in writing. Proposers 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.
SINGLE RESPONSE• Where only we response is received tsolicitation,' b be made
to h respondentfth City determines /1
' l that the b itted is fair and reasonable, (2)that
other prospective res ondents had a reasonable opidorturnifty to respond and(3)that it is in the best
interest of the City to proceed with award Otherwise a single res t ftltat be
r j ded pursuant to Section VII and the Purchasing Specialist may (1) cancel the ed
19
procurement (2) solicit new bids, proposals, or sealed f (4) proceed with procurement as
otherwise provided in this Manual
AWARD OF BIDS:Awards of centrads 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.
& 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 adaptabilily of the supplies, equipment, or contractual
services to the particular use required.
S. 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 contact is to the lowest priced,
responsive, responsible bidder The Finance Department coordinates with the requisitioning
department to determine R the lowest price bid is responsive (i.e., complies with the Cityys
specifical 1. 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 bund non-responsive, then the next low bidder will be
evaluated and so on until a responsive contractor is found. Wren 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.
20
is
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 be(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 vedficstion 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 rive 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 suficient performance andfor payment bond in the amount specified in
the Invitation for Bid. Any bidder who has a contract awarded to him/her and who fails W execute
promptly and property the required contract and bond shall forfeit his/her certified check or bid bond.
Upon the execution of the contract by the successful bidder, hislher cerlded check will be returned or
Mather 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 nght to inspect the
Contractor's facilittesrproject 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, vehides, 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 tern "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
date= 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-cenfooming,or(c)are
detective in materials or workmanship, vendor will replace such failed, non-conforming
or defective goods at no cost It, city within the same time limit as the delivery period.
This warranty shall run from date of official acceptance of the goads by city,which date
is either the installation date or in-service data as shown on city records or the date of
formal acceptance of the goods in writing by an authorized city official,whichever occurs
final, and end one(1)year after the date of the official acceptance.This warranty shall be
unccndi conal,except that it shall not apply to obvious abuse, misuse or damage caused
by city.
21
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, CM will continue ra 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 goads 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""My shall not be construed
to diminish or conflict with the special or independent warranty given by such
manufacturer.
3 The successful bidder, by submitting the bid, agrees to give the following indemnity with
respect to the goods:
Vendor shall defend, indemnify,and save harmless the City, its officers, agents and employees,
from all suits, actions or claims of any character, type or description brought or made on
account of any personal injury (including death), property damage or other harm for which
recovery of damages is sought, suffered by any person or persons,arising out of or occasioned
by any breach of any warranty, express or implied, as to the goods or the fault of
subcontractors, in the performance of the contract, purchase order or price agreement;
provided, however,that this indemnity shall not apply to any personal injury including(including
death), property damage or other harts 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
slate 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 parry, nor
does it create or grant any right or cause of action in favor of any third parry 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 pertorrmance,total or life cycle costs
and overall responsiveness of the submittal, No omens should be used in the evaluation that is not set
font in the solicitation.
Factors to be wrsldered in determining whether the standard of responsibility has been met include
whether,in the City's determination,a prospective vendodcontractor 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 corm-actual requirements;
2. a satisfactory record of performance on similar projects-,
3. a satisfactory record of integrity;
2Z
soossooss
4. qualified legally to contract with the CM:and
5, supplied all necessary information in connection with the inquiry concerning responsibility
including but not limiled to any licenses, permits, insurance, price sheers or required
organizational papers.
The solicitation for Proposals shall state the relative importance of price and other evaluation factors.
Award can be made to the most responsive, responsible offeror whose proposal is determined to be the
most advantageous to Ile City in accordance with the evaluation criteria contained in the Proposal.
rmnxrearare:12 raIz p
Evaluation of Proposals(Procedure) _: ronnaz[m:xonnai uxn
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(here 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 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 Purchasing Specialist and Projed 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 poor 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 scored eac. iamwlbri roe aonc xot at os•
proposal based n the evaluation criteria stated herein.
4_ s:mvroe:umrc:Ia[: a w•,NarNirix
5. Prior to the first meeting of the evaluation committee, the City Clerkwill post anotice o.m•,n.roaec+i"__.t+numeaaq
announcing the date,time and place blithe first committee meeting. Said notice shall be �*'t•t s�.-aert m:r+ay.::e�e rat
posted in the lobby of the City Hall not less than 3 workingdays prior to the meeting.The +Np1V dtl o.zr+Tab arta. as+rnaert
Ys it 9 ore os rabmps:rva at os^
City Clerk shall also post prior notice all subsequent committee meetings and shall
endeavor to post such notices at least one 1 dayking in advance of all subsequent meetings.
6. The committee will compile individual rankings, based on the evaluation criteria as
stated herein, for each proposal ch determine committee recommendations. The
committee may at their sits visits,
schedule presentations or demonstrations party subject
from the
top-ranked firmiThe
make site visits, and obtain guidance from third party subject matter
experts. The finaltlation will be decided based! on review of scores and
consensus of committee.
SECTION I%
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:
23
1. Projects involving a public emergency,pursuant to Section IV of the Purchasing Policy,
2. When the basic construction of the completed project is estimated to be less than
$250,000 or defined as category five in Florida Statutes, Section 287.017, whichever is
greater.
3. (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 spec qualifications necessary for the project consultant
and specify the form for submittal of qualifications by prospective consultants.
For publicly announced requirements, the DepartmentiDivision/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 evaluation/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 recorced 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) Ems 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 pmcess. Consultant evaluation criteria shall induce, 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) fires pertaining to the firms' qualifications, approach to the
24
project, and ability to furnish the required service. Each evaluation committee member will review the
statement of qualifications submitted by each film and will evaluate each firm's qualifications utilizing
the Professional Services Evaluation Form containing the specific evaluation criteria established for
each RFO which will approximately resemble the attached PSEF forth. 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)films,will be the ranking order of the finis.
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 authorme staff to
negotiate a coni 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 film 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 dearly 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 fire 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 CRY 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 finis, the City
shall select additional firms in the order of their competence and qualification and continue negotiations
in accordance with the pnor requirements until an agreement is reached
For all lump-sum or cost-plus fixed fee contracts of E150,000or defined as category IV in Florida
Statutes Section 287.017, whichever is greater, the fire awarded the contract must execute a truth-in-
negotiation certificate staling 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 pace and any additions shall be adjusted to exclude any significant sums by
which the City determines the contract pnce was increased due to inaccurate, incomplete, or non-
current wage rales 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 ICCNA)
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.
25
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
crilene items a, or b. apply. On projects where criteria a. or to 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 contact 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
consu tants under contract.This cdtenon 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 Ems, provided
such distribution does not violate the prinaple of selection of the most qualified fimrs.
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. Gererating the Master Agreement:
The Department, responsible for the project (User Department), must send a Request for
Service/Proposal to the consutanl selected (as provided herein) or Finance must send (as
provided herein)a Request for ServicelProposal to the multiple consultants under contact. The
request asks for a technical memorendurn 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 requiremerit enabling them to prepare a proposal with valid
manJnours. The City may ask the consultant for solutions and to identify unacceptable
condtions.
b. Elements-The minimum required elements are the purpose and brief description
of the project; description of the workl ervice to be performed;the locations)where the
wordservice 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 data or
period of performance. Any questions or clarifications given must be forwarded to all
consultants.
Q. Submittal-The User Department or Finance Department must indicate when the
proposal is due back to the City. Be very speck of when and where the proposal is to
26
be delivered, indicating that F 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 indi ding telephone number and extension number.
e. MeetirgBlte Visit- If a meeting andlor 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 York 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 w 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 cast or time constraints. The User Department will determine the
acceptability cntena 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 became 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
accepla is 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 Depart nent must provide copies of all documentation to the Finance
Department including:
a. Req uesl for scope of work and services and fee proposal;
b. Originals of the consultant's submittals,
C, Determination of acceptability and recommendation for award(master agreement
request form),
d. Prepare Council Agenda Request(CAR)for awards greater than$15,000.
27
SECTION XI
PROCUREMENT OF DESIGN-BUILD AND/OR
DESIGN-BUILD OPERATE SERVICES
PURPOSE: Pursuant to§287.055(9), Fla.Stat(2007),the following procedures shall be followed in
selecting firms when design-build or design-build-operate services are sought by the City. Definitions
contained in § 287.055(2), Fla. Stat. (2007), have the same meaning in this part except "project,.
"Project" shall mean a fixed capital outlay project described in the public notice including individual
facilities;grouping of facilites;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-buildoperate contracts executed pursuant to the design criteria package.
The design criteria professional may be required to evaluate qualifcations 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 offers package is to provide sufficient information upon
which fines may prepare proposals or upon which negotiations may be based.The firm
te 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 connecting 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 practice
Engineering, or certifed 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
IsThe 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.
In A firm desiring to provide design-build or design-build-operate services fora
project shall timely submit a letter of interest to the City,which shall include the fallowing:
qualifications,availability and past work. Along with its qualifications,the design-build
firm shall file a swom statement pursuant to§287.133, Fla. Stat(2007).
S. Qualification of Firms
The City shall determine the relative ability of each interested fine 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 fours
deemed to be most highly qualified to provide the required services and request those
Ems to provide proposals for the project.
S. Proposal Selection
28
a. Only fines selected as most qualified will be notified by email by the C'Ty to
submit sealed proposals. Finns not selected will be notified by email.
b. Pursuant to the request for proposals, each selected fen 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 an price and technical and
design aspects of the project. The evaluation process shall be based on cntena 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 Proposers 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.
to Should negotiations whh 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 firths,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 Cie 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, wefare or
other substantial lass 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 wi0aut price, to rank
the respondents and to begin negotiations with the top ranked respondent. The selected firm would
29
then establish a guaranteed maximum price and guaranteed completion dale- Should the City elect
this alternative process,Itshall be made clear in the original solichation.
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 amve 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 Slate of Florida's Sunshine and Public Records
Laws. Reasonable notice of the dale, time and place of the meeting must be given. The meeting
should be recorded,when possible. If not rewided, minutes must be taken by the person chairing the
meeting. At the meeting,the wmmidea members must return all required fortes such as the Conflict of
Interest Statements and individuals or group evaluation fors 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
Commidee meetings are considered "open meetings" under the Govemment-in-the-Sunshine
Law and must be open,notice posted and minutes taken.
2. For all Proposals. CCNA and special projects, V 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 Ad
(CCNA): This formal evaluation process will Identify the fiirms that best meet our requirements
in accordance with me evaluation crteria 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 ('d more than three fines) selected in order of preference. Each evaluation
committee member will review the statement of qualifications submitted by each fir and will
evaluate each fir's qualifications utilizing the Professional Services Evaluation For containing
30
the specific evaluation criers established for each RFQ which will approximately resemble the
attached PSEF toren. 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 torn 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'shon list'phase,which includes discussion w4h 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
pricelcost 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; law 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 pasSHail
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 pad ofthe backup documents.
• Method of evaluations'. There are two approved methods of evaluations to be used: ra::naam:Indene Iffi: a> ,Tab amps:
-Weight(points)system,ran be a two-step process W 0.5-
-Rating
.s-Rating(adjectival)system can be a two-step process.
5. The Evaluation Committee Leader is responsible for ensuring the Evaluation Committe ranwreeapxn cab: oor
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 lidle or no previous evaluation experience. The Finance
Department will review fors for completeness and compliance with the policy. Any fors 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
membermust be thoroughly familiar wth the contents of each proposal andthe requirements of
the evaluation enteria in the solicitation. Team members should evaluate each proposal on its
own melts 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 Me 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 pertorance of the contract.
- Deficiencies: Those areas where the proposal fails to meet the City's requiremerds.
These strengths, weaknesses and deficiencies can be used in the negotiations, presentations and
discussions during the second step of the Iwo-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'
31
The lowest price proposal receives the maximum points or is rated highly acceptable. Divide the lowest
vendors price by the next vendors price to receive a percentage and multiply this percentage by the
weights to determine the next scere.
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 't developed in the RFP a way to utilize the rates as benchmark.
Presentations and interviews must comply with the State of Flonda'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 DemandSlar.
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 notifcalion shall include
details of the interviewapresentations including but not limited to the following:
Dale and time of the interview/presentations.
Location of the meeting.
Time allotted for each firm.
Additional infornadon'rf requested by the Evaluation Committee.
- rwrsroea:rman:ten: 0 7, xo wsuo-
• Finance will coordinate the schedule of the iinterviews/presentations with the Evaluation nonider,
Committee meeting and when applicable will send invitations via a-mail.
• Interviews/Presentations fortes must be sent to the User Department requesting information for
the evaluation of the firms.
• Prior to the data of the inderviews/presentations,staff must ensure that the evaluation forms and
the signs sheat forms are completed and available for each member of the Evaluation
Commitee. There must be a sign-in forth for each of the firms presenting.
SECTION XIII
BONDS AND BID SECURITY
PURPOSE: The Finance Department 's 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 connector 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
32
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 cortred'.
1. A performance bond satisfactory to the City, executed by a surety company authorized to do
business in the Slate of Florida or otherwise secured in a manner satisfactory to the City, in an
amount equal to one hundred percent(100%)of the price specified in the contract.
1 A payment bond satisfactory to the City, executed by a surety company authorized to do
business in the State of Flonda or otherwise secured in a manner satisfactory to the City,for the
projection 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 vaned number of services and products. Formal centrads 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, inducing
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. Thedollar
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 M the Contractor City
Attomey and the requesting department. If required,the Finance Depadmentwill submit a Report to
Counal for the approval of the contract. All review,comment will be routed to the Finance Departrment.
The centrad will be revised and routed for signature frorn the following parties.
33
Contractor
Department Head
Finance Director
City Attorney
City Manager
Mayor
The City Clark will ensure the Mayors signal is obtained as required The City Clerk will then sign and
affix the City seal. The City Clerk will return the documents W Finance Department for distribution.
Distribution of the original contract is as followsVendor, 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
contractdocumerts.
RESPONSIBILITY: The affected department will monitor the conruact for compliance In terms and
conditions of the cantracl. 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. N is the only item that will produce the desired results(orfulfill the spec need) ...or
It. 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 W provide the goods or services.
$ole source and proprietary source purchases are exempt from petit requirements. AlII Forrnaaatl H,Ibk
sole source requisitions exceeding$10,000 in value will be electronicelly advertised for a Period of at
least 5 business days. The steps W follow for sok source and proprietary source purchases are as
follows:
a. The User DepartmentlDivision and the Finance Department shall attempt to locale
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).
requ remi for Gehl ve PF-�9 f-F.Piii ol of at-seat se an(7)bus ness days after the
receipt of a Gaimpleted Gore saunas form fom the depa4mem
34
9-yso roF' ry C shall M pp d'sapp 'fag'
soue/propdetary source designation.
ed_The User DepartmenVDivision shall be notified of disapproved requests and the
purchase shall be made in accordance with standard procedures.
be.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.
q4The Finance Department shall keep a log of solWpropnelary source purchases, which
incudes the vendor name, the amount, item description, justification, and the purchase
order number.
o. or those instances that services are needed involving multi le years-11 a� Fametivi FCM(ceaun)-1,v M
maintenance of equipment, warranty,etc)the request must be combined to capture the Iy,a,ra� Nimbe x!
project,as a whole,and the proper approval must be obtained 1e 1;z+rrunEeirV 4yE:y b,c...+Sart
A:1+AFgnmmt 4R+NVW 4: 0.)S+
Tab ons v+ln1 tet: 1"
FmnanM:IrvYnI:LM: a-,Fi.f 0"7
Tab crops:Nq M 09
Fwmat[M:Fm[(CEfauhl N1al 11 p[
STANDARDIZATION
DEFINITION: Standardization is the process of examining characteristics and needs for items of similar
end usage and developing a single specfcetion 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 hem thatwill produce the desired results).
COOPERATIVE PURCHASING
DEFINITION: An approach in which several organizations jointly buy selected items.They may form or
utilize a centralized buying service that purchases specified types of items for all members of the group
or cooperate informally.The resulting volume buying usually produces significant cost savings for group
members.
The Finance Director shall have the authority to pin with other units of government in cooperative
purchasing ventures when doe best interests of the City would be served and the same is in accordance
with City Ordinances. Purchases in any amount may be made against established G.S.A, State of
Florida, or other units of government and non-profit organizations including established and approved
Cooperative Purchasing Associations (i.e., J.9-6emmartitieeOMNIA Partners, The Cooperative
Purchasing Network -TCPN, National Joint Powers Alliance - NJPA, The Interlocal
Purchasing System - TIPS USA etc.)lens contracts without bidding, provided they are in the best
interest of the City.
Purchases from the current City cooperative contracts, state term purchasing contracts, or slate
university system cooperative bid agreements, non-profit organizations, and approved Cooperative
35
Purchasing Associations will be an acceptable altemahve 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 meals, 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 soliatation 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, nghts-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 govemment 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-lime, authorized hospitality expenses, and fees and
costs of jab-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, the commitments, title searches, and ownership and encumbrance searches,
and
• Transactions by Inter-local Agreement.
Sfi
SECTION 7M
PURCHASING CARD
PURPOSE: The purchasing card program is a delegation of procurement authority by the Finance
Department to the Departments. Each Department Head must control the proper use of his or her
Department's cards.
PURCHASING CARD ADMINISTRATION: Each Department Head shall determine who in their
Department should have a City purchase card. The "Purchase Card Form' is used to apply for a
purchase card. The application must be completely filled out and signed by the appropriate
Department Head. Requests that exceed any of the established"Cardholder Controls"must have the
City Managers approval. New cardholders will receive training and must sign a "Cardholder
AgreemenP signifying they understand and accept the responsibility associated with the purchase
card.
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 W"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 cardholders and the approving
official's signatures.
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 m a new Departmentthe 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.
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 Gose
the account. The Finance Department will contact the issuing Bank to close the account. If the card
cannot be collected from the terminated employee,beat the card as a"Lost or Stolen'card and follow
those procedures.
LOST OR STOLEN CARDS: If a card is lost or stolen, immediately notify the issuing Bank and the
Finance Department. The cardholder must also notify his approving official.
CARDHOLDER SPENDING LIMITS:
1. The delegation of purchasing authority that the card provides to each cardholder sets the
maximum dollar credit limit amount per month. Each time a cardholder makes a purchase
with the card, the limit will be checked, and the authorization request will be declined
should the purchase amount exceed the available credit amount. The maximum credit
limit amount is set at $10,DOD and cannot be exceeded without the approval of the City
Manager cr designee. Each cardholders credit limit is recommended by the cardholders
supervisor on the "Purchase Card Request Fonn" and must be approved by the
cardholders Department Head and by the Purchasing Card Program Administrator.
Requests for a credit limit exceeding$10,000 must bejustified in writing and approved by
the City Manager or designee prior to submission to the Finance Department.
37
2. The City's single transaction limit for goods is set at $5,000. Single item purchases
exceeding$1,000 but under$5,000,areallowed with supposing documentation.
3. The single transaction purchase limit is defined as the total transaction dollar limit for a
single hansaction. The maximum single purchase limit is set at $5,000 and cannot be
exceeded without prior coordination with the Finance Department and approved by the
Finance Director. Each cardholders single purchase limit is recommended by the
cardholders supervisor on the"Purchase Card Request Form"and must be approved by
the cardholders 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. The City's Emergency Operation Center will designate personnel involved during declared
emergency. Limits of designated cardholders will be increased as necessary for recovery
efforts. The maximum credit limit amount is set at $250,000. Purchases made with
emergency purchase cards must follow emergency purchasing procedures.
5. The Finance Department may use the P-Card as a payment method to pay for any
invoice, in any amount. Any payment over$50,000 will rectum the City Managers prior
approval.
6. Fleet may exceed single transaction limits of$5,000 on sole source/standardized items
related to Fleet Maintenance items only,with supporting documentation.
PURCHASING CARD USE:
1The purchasing card is to be used for CITY PURPOSES ONLY. The purchasing card
may be used for all legitimate City purchases unless specifically prohibited in this section.
The City is exempt from paying sales tal
2, Ik purchas no card him the cardholders name emlbosiuid&i� rennentE:fmC cMaurc)Mal.11 oc
by that carcholder only. No other person a authorritted to use the cardff
bass:ler. o.s,Nanylny: o.s
1", Nabulletsw
a4wria.l.se.2 i. lies 1w is. 15 We
left,Nme, No Wilds v3. Each transaction may be comprised of multiple items, but each items)cannot exceed the Tab mos:not at o,
single item purchase dollar lima. Purchases will be denied if the authorized monthly
purchase limit the single purchase limit, or the daily transaction limit is exceeded.
Purchases are not to be split in order to shay within the single transaction purchase limit.
4. All items purchased over the counter to be paid by using the card must be immediately
available. Bach ordering is not permitted.
5. All items purchased by telephone order or from the Internet that will not be confirmed with
a written order and will be paid by using the card most be delivered by the vendor within
Me thirty(30)day billing cycle The ordershould not be placed without this assurance.
6. The purchasing card MAY NOT be used to purchase fuel, oil, personal items, telephone
calls,or items listed on the"Do Not Buy List"
7. The purchasing card MAY be used to purchase fuel when on overnight and or out of slate
travel. Fuel purchase may be made only for a city owned vehicle or rental vehicle ONLY.
Employee must be on designated travel status.
a. The purchasing card MAY NOT be used to make cash advances or to write VISA checks.
S. The purchasing card cannot be used to purchase like items totaling over$25,000 annually.
These items should be purchased using competitive purchasing procedures. The use of
the purchasing card is not intended to replace effective procurement planning which
enables volume discounts.
38
10. Cardholders must follow their department's control of funds procedures to ensure that
sufficient funds are available prior to making a purchase.
11. The least expensive item that meets the Ciyyi basic needs should be sought
PURCHASING CARD TRAINING:
1. Initial Training: Each cardholder will be provided with initial training prior to issuance of the
purchasing card. The training will cover the proper use and restrictions of the purchasing
card.
2. Annual Training: Annual training will be provided at least once per year.Cardholders and
Approving Officials will be made aware of any changes to policy and
proGudinesprocedures as these changes are made and approved. Card holders and
Approving Official are responsible for familianzing themselves with all information
transmitted to them.
PURCHASE CARD PROGRAM INTERNAL CONTROLS:
1. The Finance Director will establish automated card restrictions as albwed by the issuing
bank's software. The Finance Director or designee will establish a City account allowing
access to the issuing Bank's database. This will allow the Card Administrator to view
cardholder infoimatlon and statements online.
2. The Finance Departinent will review each �transaction and supporting
documentation. The Finance Department will canted cardholders directly and attempt to
resolve any statement discrepancy found. If unable to resolve the issue with the
cardholder directly, the Finance Department will elevate the problem to the Department
Head for resolution.
3. Any incident of improper unauthorized use of the card or non-compliance to City policy
shall be immediately reported to the Personnel Director and employee Department
Director.
PURCHASE TRANSACTION DOCUMENTATION:
All purchase transactions fall into one of two categories;face to face(i.e.,over the counter)or remote
(i.e..telephone, internet or fax).
1. 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 goodwsupplies.
2. REMOTE'. The cardholder must document the order when it is placed. Items purchased
by telephone should be documented by keeping a lag of orders (a phone log). A lag
entry is not required d 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(air confirmation)showing the order.
PREPARING TRANSACTIONS FOR PAYMENT:
Transactions must be reviewed, substantiated, antl approved with (he attached receipt in the Online
System within five days of
receip800stira transadion date.
1. REVIEW: The cardholder shall review the transaction for correctness. Ensure all
charges are legitimate and no sales tax was charged.
39
2. SUBSTANTIATE: Each transaction should be documented with a receipt. Provide
account numbers for each transaction in the City's system. pnM-desumentaNen-from
1 APPROVE: The approving Director or designee (usually the cardholders 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.
4. MISSING DOCUMENTATION: The cardholder is responsible for providing required
documentation. Its receipt is lost,attempt to obtain a duplicate. If a duplirale cannot be
obtained. prepare a statement that includes all the information normally found on the
receipt and a bnefexplanation for the lost documentation Continual abuse may result in
loss of the card and disciplinary action.
5. DISPUTED CHARGES: If the cardholder questions a charge on the statement, the
cardholder shall contact the vendor diredly 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 than 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 Oity 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 retnbution on the part of the vendor.the following procedures are adopted'.
40
DEFINITION. Aformal objection or disapproval issued by a vendor.
PROCEDURE: The Finance Director or his/her representative shall post a tabulation of competitive
sealed bidanquotes 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 bidderiquoter and the second apparent lowest bidder
or quomr 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 bidlquolelproposal number and the nature of the complaint.
After notice is provided, the Finance Director will gather evidence and discem 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
rummee:knc ill rrn aau
PURPOSE: Capital asset control entails tracking, compiling and maintaining an inventory of capital r Mind:Nm i
assets to control losses due to negligence or theft,to provide a basis for insu rence da and identify
surpluses. Capital asset records are set up to comply with Florida Statute 274.
DEFINITION: Capital assets are tangible items(eg. 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 data
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 Deparhnenl 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 dem is recall so proper identrficelion 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:
41
• 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 vend"and the
Department, Finance is responsible for taking a biennial Inventory of property in their custody. The
Capital Asset Property Coordinators) 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 Farm to remove the dem 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 formah,
SURPLUSING OF CAPITAL ASSETS: All capital assets that are obsolete,excess,or no longer
needed by the owning Departinentl are to be reported to the Finance Department for disposition. All
items must be listed on a Request to TmnsferlDeclare Surplus form and submitted to the Finance
Department. The Finance Department is responsible for approving the disposition of the capital assets.
Nths,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 ownershipdescription,and identification number of the equipment on the toren and approve
the transfer or surplus of the item. Upon approval,a copy of the forth 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 bash
by the individual departmeM(s). Capital Assets that have identification numbers can be disposed of as
follows:
1. Assets with no salvage value: Transler/Declare Surplus forth addressed to the
Finance Department, signed by the Department Director and containing the
identification number, description, condition and recommended disposal method
(i.elandfill disposal)ofeach 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 Depahment 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.
42
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 ortler.
The Finance Department shall have the authonty to question, examine, or test the quality of mamnas
requested or received by the department.
PROCEDURE IN DEPARTMENTS
Upon mceipt 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 suppliers delivery ticket, the department shall notify the vendor
of the discrepancy. If the materials delivered are not in conformance with specications and are not
acceptable by the department, they shall notify the vendor and file a complaint with the Finance
Department by using the evaluation fomr 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 audh 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 bask information as the purchase order.
WHAT AN INVOICE SHOULD CONTAIN
• Purchase order number
• Date of order(if possible)
• Data of delivery
• Terns of payment(2%-10 days,Net 30 days,etc.)
• Itemized list of materials or services rendered
• Delivery destination
41
• 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 cin-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.
Unless previously agreed upon by both the City and vendor,ALL INVOICING AND payments will be as
outlined in the(Local Government Prompt Payment ACT(FS 218.Part VII).
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 vendors performance of the
services, or what the problem is,and why the product or service is unacceptable.
• All available documentation shall be attached
44
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 rwtified as to the vendor.response and any action to be taken by the Finance
Department.
NOTE: Project Managers are required to submit a Vendor Evaluation at the close of all Capital
Prejecls and are strongly encouraged to submit whenever favorable or unfavorable actions on
the part of a vendor occur.
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 H 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 a personal partner,or
• An organization,which employs,or is about to employ, any of the above has a fnanaal 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, a 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, Flonda Administrative Code provided that such disciplinary action does not conflict with the
jurisdiction of the Slate of Florida Commission on Ethics.
SECTION XXIII
PROCEDURES FOR FEDERALLY FUNDED PROJECTS
t. 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'AB*shall be followed. Contract time extensions shall be subject
to the concurrence of the FOOT Division Administrator and will be considered in
determining the amount of Federal participation. Contract time extensions submitted for
approval to the FOOT 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 Will(when possible)and will utilize local
45
contractor pricing. The 100%submittal will be certified by the responsible Professional
Engineer.
4. The City of Edgewater will comply with 23 CFR 635.413 as shown in Exhibit'BC on all
federally funded projects. The warranty will begin the day after substantial completion is
awarded.
5. Federal guidelines will be followed for the fair, open and competitive selection of
qualified consultants(Professional Services) in accordance the Brooks Act, Section 40
USC 1101-1104 as shown in rxhlblt'GD".
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 polifiwl 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:
h0or0www.fdoceovloroaammanaeemeno'L.APrL.4P-TOC.shtm a {,fes,,.,' r'�—' s
-him -1FpmarbA:Rnc(Maun)ms,11 R
B. 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 DBEMIBE preference
selection criteria in the selection process.
9. The City has issued a policy statement which expresses its commitment to the
nondiscrimination provisions of This VI. The policy statement shall be circulated
throughout the Cily�s organization and to the general public. Such infomtation shall be
published where appropriate in languages other than English
10. The LAP Manual specifically addresses that no fewer than three firms are to be
shortlisted to submit proposals.
11. In the event a bid is not read out loud,the name of the bidder and reason will publiwlly
announced at the lading.
SECTION%XIV
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. Its change in the Policy is recommended for approval by the City Manager,the Finance
Director will prepare the necessary report to Council.
46
Approved by the City Council of the City of
Edgewater at a meeting held on the 3re-7rd day of
October 2046 019 under Agenda Item
Resolution No.2016-R-23
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EXHIBIT-A^ '�rYrmielp:sla¢am: apt I
NIGP Global Bt Practices for Ethical Pt ------------
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47
Public Procurement Practice
ETHICAL PROCUREMENT
STANDARD
It is essential that public procurement professionals and stakeholders` PRINCIPLES AND
adhere to a well-defined and established code of ethics. The public PRACTICES OF
procurement organization should have an adopted code of ethics and
require its employees to uphold the code and seek commitment to it by
all those with whom they engage.
Derinition
Ethical procurement prohibits breach of the public's trust by
discouraging a public employee from attempting to realize personal
gain2 through conduct inconsistent with the proper discharge of the
employee's dutiesP
Uctactrt 1.1: Conflict of Interest
Public procurement professionals must:
■ Avoid any private or professional activity that would create a conflict of interest or the
appearance of impropriety
■ Avoid engaging in personal business with any supplier representative or similar person
■ Avoid lending money to or borrowing money from any supplier*
■ Avoid any and all potential for nepodsms
■ Avoid any overlap of duties in the procurement process
■ Safeguard the procurement process from political or outside influence
Element 1.2: Conduct with Suppliers
Business dealings with suppliers must be fair and transparent Procurement must:
■ Refrain from showing favoritism or being influenced by suppliers though the
acceptance ofgifirs,gratuities,In.or favors,
■ Safeguard supplier confidentiality
■ Refrain from requiring suppliers to pay to be inducted on an approved or preferred
supplier list
■ Refrain from requeaing donations of goods or services to the public entity
■ Select suppliers on the basis of meeting appropriate and fair criteria
■ Discourage the arbitrary or unfair use of purchuing leverage or influence when dealing
with suppliers
■ Avoid the exertion of undue influence or abuses of powers
■ Treat all suppliers fair and equal
Public Procurement Practice
ETHICAL PROCUREMENT (cantd)
Element 1.3: Corruption'
Public procurement professionals who become aware of any corrupt activity have a duty to
the profession and to their employing organizations to alert their senior management and/or
elected officials.Public procurement shall not tolerate bribery or corruption in any form.
PRINCIPLES AND Forms indude,but are not limited to:
PRACTICES OF
■ Bribery is the offering,promising,giving,authorizing or accepting of any undue
financial or other advantage to,by or for any persons associated with the procurement
process,or for anyone else in order to obtain or retain a business or other improper
advantage. Bribery often includes(i)kicking back a portion of a contract payment to
government or party officials or to employees of doe other contracting parry,their dose
relatives,friends or business partners or(ii)using intermediaries such w agents,
subcontractors,consultants or other third parties,to channel payments to government
or party officials,or m employees of the contracting parties,their relatives,friends or
business partners.
■ Extortion or Solicitation is the demanding of a bribe,whether or not coupled with a
threat,if the demand is refused.Procurement professionals will oppose any attempt of
estortion or solicitation and are encouraged to report such attempts through available
formal or informal reporting msehamons.
■ Trading in Influence is the offering or solicitation of an undue advantage in order to
exert an improper,real,or supposed influence.
■ Laundering the proceeds of the corrupt practices mentioned above is the concealing
or disguising the illegitimate origin,source,location,disposition,movement or
ownership of property and/or money,knowing that such is the proceeds of crime.
■ Nepotism is the we of authority or influence to show favoritism m relatives or friends
without merit.
Element 1A Business gifts and hospitality
The offer and receipt of business gifts and entertainment an,sensitive areas for public
procurement professionals,despite being recognized as standard private sector business
practice.Public procurement organizations should develop a dear policy an accepting
business gifts and procurement professionals and suppliers most comply with arty such policy
as well as prevailing laws. Minimal guidelines indude:
■ Na soliciting or accepting moncy,loam,and aediu or prejudicial dismuns.gifm
entertainment,fawn or services from present or potential suppliers which might influence
or appear to influence a procurement decision/proms
■ Avoiding meals or other hospidiry10 with suppG<rs"
Element 1.5 Other Policies and Considerations
Ethical practices should be defined and embedded in otter policies,procedures and practices
which overlap public procurement. Ocher policies in the procurement space which will need
to be considered may include the subjects of.
_ ■ Competition and anti-competitive practim
■ Supplier diversity
■ Supplierequaliry
■ Corporate Social Responsibility(CSR)
■ Smtoaabiliry"
■ Anti-deco minarion policy
■ Transpareriryn
Public Procurement Practice
ETHICAL PROCUREMENT (coffin)
Element 1.& Ensuring compliance
Ensuring compliance,focusing on high risk areas, understanding suppliers'operations and
offering guidance and support when improvement is necessary or appropriate should ensure
that the strategic and operational risks associated with unethical practims are minim¢ed. PRINCIPLES AND
Public pmcumment professionals need to focus on ensuing compliance with their ethical PRACTICES OF
code and the policies that it moths upon.To ensure this compliance,the focus:
■ Should take place in parallel with die development of monitoring procedures
■ May cake rima or steed m be mtwduced m phases
■ May require prioritization of areas associated with ethical issues which might be of
greater risk to rhe organization.
Background
Ethics are the principles which define behavior as right. good and
appropriate. Employees in public service are bound to uphold certain
values (See:Values and Guiding Principles). Any attempt to realize
personal gain by conduct inconsistent with the proper discharge of the
employee's duties is a breach of the public trust.
The value of the transactions in the procurement process along with
pressures to lower costs could result in bribery,corruption and other
practices which could be deemed unethical. In the public sectorwhere
goods and services are funded by public expenditure,it is imperative
that procurement operates ethically,with impartiality,tranparenM and
professionalism.
Ethical procurement best practice starts with the employees in
procurement following an ethical code which dictates their behavior
and actions while conducting business. Ethical procurement practices
should be extended to all stakeholders in the procurement cycle.
Ethicalprocurement should also include an understanding of suppliers'
operations and the procurement professional should offer guidance
and support when improvement is necessaryor appropriate.
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EXHIBIT"AB"
FLORIDA DEPARTMENT OF TRANSPORTATION
GUIDELINE FOR ESTABLISHING CONSTRUCTION
CONTRACT DURATION
July 2010
48
49
DISCLAIMER:
The following documentation as a whole was derived from Federal Highway Administration's
Guide for Construction Contract Time Determination Procedures (TA 5080.15 dated 10115/02)
Purpose
To provide guidelines for determining contract time for construction projects.
Authority
Sections 334.044(2)and 337.18,Florida Statutes
Background
A. Contract time is the maximum time allowed in the contract for completion of all work
contained in the contract documents. Contract time often arises as an issue when there
is too much time or too little time given in the contract. 1f loo 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 m excessive time originally
established by the scheduling engineer to complete the project or poor wi vactor
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 re highway construction projects "s more critical today than
0 was in the past. Several of the reasons are listed below:
1. There are n increasing number resurfacing, restoration, and rehabilitation type
projects bei traffic,constructed under traRc, resuking 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 wMmconstruction
allows for optimization of nsirconstructionengineering costs and otherr resources
C. In addressing the need for completing delay, construction projects where it n important
to minimize methods
inconvenience and delay, many Stales have applied non-traditional
contracting methotls such as Bonuses and Incentive/Disincentive spedfwlions for early
completion.
2 of13
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 un'doonly throughout the State.
This document should be used in conjunction with the procedures in the Construction
Project Administration Manual (CRAM), Section 1.7 addresses how to classify projects
based upon appropriate factors such as high traffic volumes, projects with
incentive/disincentive clauses, etc. Experience and judgment should be used in the final
detcvmination for which projects are critical. These procedures also address the
importance of geographical and weather differences, throughout the State, which could
affect contractor productil rates. The fad 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 d ventrad 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 shave for the shortest practical traffic interruptions to the road
user. If the time set is such that all work on a project may be stopped for an extended
period (such as scheduled events) and the contractor can still complete the project on
schedule, it means the contract time allowed was excessive.
C. For most projects the essential elements in ; (2) iado contract time includerates
(t) establishing
production rates for each controlling hem; (2) adopting production rates to a particular
project; (s)and
(4) ompu potential factors such as business closures. environmental
coretraints. 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.
3 of 13
B. In establishing production rates to be used for determining contract time, an accurate
database should be established by using normal historical rales 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 contri used to
complete the item. Production rales based upon eight-hour crew days or per piece of
equipment are recommended. Production rates developed by reviewing total quantities and
total lime are not recommended as they may result in misleading rates which tend to be low
since they may include startup,cleanup,interruptions,etc.
C. The most accurate data will be obtained from site visits or review of project records
(i e., field diaries and other constnction documents) where the contractors 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 rales 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 frosome of the published rate
T
guides. Thisis la from some
highway
may be useful as guidance, however, the relationship of [hese production
rates to actual highway corelruction 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 coursesbetween
concrete placement operations,as well as specified embankment settlement
periods;
3. Seasonal limitations for certain items when do a
nrtng both the number of days the
contractor will be able to work as well as production rates,
4. Conflicting operations of adjacent projects,Doth public and pdvate;
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;
B. Time 10 obtain necessary permits;
9. The effect of pertnittirg mntlitions anNor restriNons;
10. Restrictions for nighttime and weekend operations;
1L Time of the year of the left ng as well as duration of the project;
12. Atltlitional time for obtaining speraalty 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 1A 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 granfing 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 demurs 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 speck dem to expedite the completion when
there are exceptionally large quantities or when there is a large impact on traffic.
B. Procedures is accelerate project completion should is consideredcrucial.
This
when canstmdion will
inaffect
urban
traffic substantially traffic
when project completion is ting co This is especially important
p urban areas with high tr sho volumes. When accelerating compact d time for time sensitive
projects, production rales should be based per
an k anent contractor working more than
eget hours per day, more Man five days per week and possibly with additional wodrers.
The development
5 of 13
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 at work. The time to complete each controlling item
of work included in the progress schedule is computed based on the production roles
applicable to that project. Items should be arranged by chronological sequence of
construction operations. Minor items that may be performed concurrently should be shown as
parallel activities.
B. In determining cont a progress schedule a should on remembered sanest
that the start and end dales
Re each controlling item need to be based on the eadiest date for which work on that
Rem will begin and hew long it will take to complete. The earliest start date for each
activity will be determined by the completion of preceding ng aces, and should allow for the
fad that some activities can begin dente the preceding activity is entirely canpletetl.
Additional time should be also allowed in the aalrcrad 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 Charas
1. Bar charts ora Gantt charts are graphical representations ro projects with planned
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 operators;necessary for project completion.
b. Once all the activities necessary to complete a project have been listed, the
duration and completion data of each activity needs to be determined based
on production rates.
wmm.�vwea
C. With this data established, the bar chart can be prepared. A line or bar is
drawn on the chad showing the time when work will be performed for
each activity. The resulting diagram will represent a Droied.showing when
6of13
PRIJ9151, Shili Ohix--each activity will be undertaken and completed.
d. With bar charts, the progress of a project may be monitored for each
activity by drawing a bar or line below the original scheduled performance to
show the actual duration for each activity as it is completed.
3. Bar charts are advantageous g that they are simple to develop and easy to
understand, and they offer a not method of determining contrail time. Some
anion
disadvantages are that they do not show the farts am
and roperty ,entlency
among the various phases c work. Bar charts are s are to properly evaluate
Men r as construction changes occur.Also, controlling items are shown in the same
manner as minor hems, thus making it more difficult to determine which items
actually control the overall time progress 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 projecfs beginning and defining individual project tasks and the number of
days to perform each task, a logical diagrammatic representation of the project is
developed. A CPM depicts which tasks of a project will change the completion date if
they are not completed on time. The evaluation of critical tasks allows for the
determination of the time to complete projects. Because of the size and complexity of
most projects, this method is most often applied using a computer software program.
Within the CPM software, the ability to use a Program Evaluation Review Technique
(PERT) provides a breakdown of each activity to boxes. This enables the user to view the
connection of relationships to each activity. CPM software also has the ability to display
the contract time in a bar chart view as well.
1. The fist step in applying the CPM method is o break a project down into separate tasks
or operations necessary for project completion. Each
h of these separate operations or
processes is tilled an activity.The canpletbn of an activityis rolled an event.
---0nce all the activities necessary to complete a protect have been listed, the rwnnuaaa baix! -- 0.3V Tae
relationship of these activities to one another needs to be determined- In some instances, sops: os3',last Wa: t.or
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 done before oroceetlimo with this achktyi or
w
7of 13
core before proceeding with in s ear BF 'what can be done concurrently?" Every
activity has a definite event to mark its relationship with others with respect ro completing
a task.
32_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 avow 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.
433 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 anow
to indicate the duration. The neatly start" for each activity is the earliest point in time
that an activity win 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 is
early start. As is the base with the "early start," this is not necessanly 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 'Tmsi date in CPM is the first day after the physical completion of
the activity. The completion time of a projects the sum of the longest time path leading to
completion of the project.
&4 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.
G5_Advantages of using the CPM include:
• It is an accurate technique for determining contract time and verifying that the
project ban be constructed as designed and with identified construction
sequences;
• It is a useful tool for project managers in fth 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 determinei
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8 of 13
2-o_Disadvantages at using the CPM include:
• The CPM requires experienced and knowledgeable staff to be used effectively;
• They require regular updates to assure that the contractors operation
is accurately represented.
Other Project Considerations
Construction time on certain projects such as lighting or signalization may be governed by the long
lead-lime 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 shod 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 contractors 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 wntracton,are available to perform the work. Such projects may include:
• Projects that consist of special¢ed work (seal mats, 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 ofw *ing days;
• Building projects.
This allows the contractor to schedule this contract with consideration of other work he/she
may have in Me 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.
9ofl3
BASIS OPPRODUCTION RATES:
The production rates shown are divided into 3 catagones'. low, average and high. The low rate is
typically used on projects where there are large numbers of intersectionsdriveways, 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: romanmxW
R.O.W.Preparation:
Cleaned and ambbino (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/Srorrn Sewars:
Stone Sewers (LF): The excavation, installation, and backfilling of drainage or sewer pipes
including structures.
Box Cull (C.Y.): The excavation, forming, reinforcing, pouring, finishing, shipping, 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 LF.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.
(NoteThe production rates on several items appear low since they must include time for the total
scope of activities necessary to complete an item.)
Cofferdams (S.Y.): The installation, dewatering and minor excavation associated with building a
cofferdam system for a bridge construction site.
Sheet Piling(S.F.): The installation of sheeting for retaining walls and deep excavations. Do not
add to cofferdams.
10 of 13
ilin (LF.): The installation of piling for bridge foundations.
Footings (C.Y.): The layout, forming, reinforcing, placing, curing and removing tomes for reinforced
concrete bridge footings.
Columns. Caps& Bents(C.Y.): The layout,forming, reinforcing, placing, wring and removing forms
for reinforced concrete bridge columns,caps and bents.
OMngwalls (S.Y.): The layout,forming, reinforcing, placing, wring and removing forms for reinforced
concrete wingwalls for bridges.
Bridge deck(total depthl(CAJ: The layout forming, reinforcing, placing, curing and removing fors
for reinforced concrete bridge decks. The production rates have been set to include time for all
components of the deck, including precast plandc under slab, thus the full depth of the deck is used to
calculate quantity.
Bridge cunbshvalks (LF.): The layout, faring, reinforcing, placing, curing and removing forms for
reinforced concrete bridge curbs and vialkways.
Bridge handrails (L.F.): The layout,forting, reinforcing, placing, wring and removing fors for cast
in place reinforced concrete bodge handrails.
Retaining walls (S.F.y The layout, excavation, forting, reinforcing, placing, curing and removing
fors for cast in place reinforced concrete retaining walls. The time for precast proprietary wall
systems in included in embankment
Base Prepamdons:
Stabilized Roadbed (S ): The placement, mixing and compaction operations involved in the
stabilization of subgrade soils.
Base material(S.Y.f The placement,mixing and compaction of flexible base material.
Hot mix asphalt base(Ton): The laydpwn and cornpaction of hot mix asphalt concrete base course
material. The production nates are taken from the,graph for plant mix.
Curb and gutter(LF.): The layout and construction of new roadway curb and gutter using automated
equipment or fors and hand finish.
Concrete pavement repair(S Y.): The removal and replacement of sections of unsatisfactory or failed
Portland cement concrete pavement
Millim/plannina (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 laydovm and compaction of hot mix asphalt concrete surface mum
material. The production rate is taken from the graph for Plant Mix,
Asohaa Friction Course (1 course) (Ton): The laydown and compaction of asphalt concrete friction
course material.
Cement Concrete Paving(Reber+curing)(S.Y.): The layout, reinforcing,placing, curing and jointing
of Portland cement concrete pavement.
Precast traffic earners (L.F.): The layout and installation of precast concrete traffic banners. If
barriers are to be cast in place, then the units should be changed to C.Y. and the production rates
adjusted accordingly.
Permanent Signing and Traffic Signals:
Small Signs (Each): The installation of small highway information and warning signs mounted on
metal posts driven into soil along a highway.
Overhead signs(Each): The installation of large highway information and directional signs mounted
on metal frames over a highway. It is assumed that the footings and poles that support
The frames are already in place.
Manor traffic signals(Each): The installation of automated traffic signals and their support systems at
highway intersections.
Pavementmarkinas(LF.): The application of paint or thermoplastic pavement marking materialstoa
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 She). The removal of debris, dirt and other constmctlon 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 project.
Remove old structures (small) (NIKDAYS): 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,gales,signals,etc.).
Erect temporary l idoe(WKDAYS): The layout and construction of a temporary bridge structure and
related appurtenances for a highway comstivction project.
Remove temoorary bridges(WKDAYS)'. The demolition and removal of all materials for a temporary
bridges structure and related appurtenances for a highway constri project.
PRODUCTIONRATES
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(Statin idel - nem cage cnaacxa
EXHIBIT"BC'
23 CFR 635.413
Code of Federal Regulations
Title 23-Highways
Volume: 1
Dale:2012-04-01
Original Date:2012-04-01
Title:Section 635.413-Guaranty and warranty clauses.
Commd:Title 23-Highways. CHAPTER I-FEDERAL HIGHWAY ADMINISTRATION, DEPARTMENT
OF TRANSPORTATION. SUBCHAPTER G - ENGINEERING AND TRAFFIC OPERATIONS. PART
635-CONSTRUCTION AND MAINTENANCE.
Subpart D-General Material Requirements.
§ 635.413 Guaranty and warranty clauses. The STD may include warranty provisions in National
Highway System(NHS)construction contracts in accordance with the following'.
(a) 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 shallapproved 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)ofthis section.
(1) General project warranties maybe used on NHS projects,provided:
(i)The term of the warranty is short(generally one to two
include years)', however,
projects developed under rate for Meter agreement may include
warranties that are appropriate for the teem of the contract or agreement.
(ii)The warranty is not the sale means of acceptance',
--(di)The warranty must not include items of routine maintenance which are
not eligible for Federal participation',and,
(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 pertormance 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
noo-NHS Federalaid design-build contracts.
�4)For best value selections,the STD may allow proposers to submit alternate warranty
proposals thatimprove 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.
F60 FR 44274 Aug 25 1995 as amended at 67 FR 75926 Dec 10 200272 FR 45336 Aug. 14
20071
EXHIBIT"CD"
BROOKS ACT
United States Code(U.S.C.)Title 40-Public Buildings,Property and Works
Chapter 11,Section 1101-1104:Selection ofArchhects and Engineers
§1101.Policy(Formerly 40 U.S.C.§541)
The policy [of the Federal Government] is to publicly announce all requirements for architectural and
engineering services and to negotiate contracts for architectural and engineering services on the basis
of demonstrated competence and qualification for the type of professional services required and at fair
and reasonable prices.
§1102.Definitions(Formerly 40 U.S.C.§542)
In this chapter,the following definitions apply:
1. Agency head --The term"agency head"means the head of a department,agency, or bureau [of the
Federal Government].
2. Architectural and engineering services--The term"architectural and engineering services"means-
A. professional services of an architectural or engineering nature, as defined by state law, if applicable,
that are required to be performed or approved by a person licensed, registered, or certified to provide
the services described in this paragraph;
B. professional services of an architectural or engineering nature performed by contract that are
associated with research, planning, development, design, construction, alteration, or repair of real
properly;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, consuhatiori 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 Trim" means an individual,firm, partnership, corporation,association, or other legal
entity permitted by law to practice the profession of architecture orengineering.
§1103.Selection procedure(Formerly 40 U.S.C.§543)
a. In general--These procedures apply to the procurement of architectural and engineering services by
an agency head.
b. Annual statements - - The agency head shall encourage firms to submit annually a statement of
qualifications and performance data.
e Evaluation - - For each proposed project, the agency head shall evaluate current statements of
qualifications and performance data on file with the agency, together with statements submitted by
other firms regarding the proposed project.The agency head shall conduct discussions with at least 3
firms to consider anticipated concepts and compare alternative methods for furnishing services.
d. Selection - - From the fines with which discussions have been conducted, the agency head shall
sell 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(Fonmerly 40 U.S.C.§544)
a. In general--The agency head shall negotiate a contract for architectural and engineering services at
compensation which the agency head determines is fair and reasonable to the Federal Government. In
determining fair and reasonable compensation,the agency head shall consider the scope,complexity,
professional nature,and estimated value of the services to be rendered.
b. Order of negotiation - - The agency head shall attempt to negotiate a contract, as provided in
subsection(a),with the most highly qualified firm selected under section 1103 of this title. If the agency
head is unable to negotiate a satisfactory contract with the firm, the agency head shall formally
terminate negotiations and then undertake negotiations with the next most qualified of the selected
firms,continuing the process until an agreement is reached.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.