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HomeMy WebLinkAbout15-194RESOLUTION NO. 15 — 194 A RESOLUTION AMENDING THE ST. LUCIE COUNTY MANUAL OF PURCHASING REGULATIONS; AMENDING SUBSECTION 8.1; BID WAIVER FOR REPAIR TO AN EXISTING PUBLIC BUILDING; ADDING SECTION 11 SPECIALTY CONSTRUCTION PROCUREMENT PROCEDURES TO INCLUDE PREQUALIFICATION AND SHORTLISTING, DESIGN -BUILD, CONTINUING CONTRACTS FOR CONSTRUCTION PROJECTS AND CONSTRUCTION MANAGEMENT; PROVIDING AN EFFECTIVE DATE. WHEREAS, the Board of County Commissioners of St. Lucie County, Florida has made the following determinations, 1. On September 24, 1985, the Board of County Commissioners for St. Lucie County, (the "Board") adopted Ordinance No. 85-06 which created a purchasing department and established the purchasing regulations and procedures for St. Lucie County, Florida, as set forth in the St. Lucie County Manual of Purchasing Regulations and Procedures (the "Purchasing Manual"). 2. On October 7, 1985, The Board of County Commissioners for St. Lucie County, (the "Board") adopted Resolution No. 85-212 which established the purchasing regulations and procedures for St. Lucie County, Florida, as set forth in the St. Lucie County Manual of Purchasing Regulations and Procedures (the "Purchasing Manual"); and since that date the Purchasing Manual has been amended from time to time. 3. It is necessary to amend Resolution 85-212, as previously amended, per the revised Purchasing Policy Manual (PPM) attached as "Exhibit A". NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of St. Lucie County, Florida: 1. The St. Lucie County Manual of Purchasing Regulations is hereby amended as set forth in Exhibit "A" attached. 2. This resolution shall become effective upon adoption. After motion and second the vote on this Resolution was as follows: Chair Paula A. Lewis Vice Chair Kim Johnson Commissioner Chris Dzadovsky Commissioner Tod Mowery Commissioner Frannie Hutchinson PASSED AND DULY ADOPTED this 20th day of October 2015. AYE AYE AYE AYE ABSENT BOARD OF COUNTY COMMISSIONERS ST LUCIE COUNTY, FLORIDA BY: Chair APPROVED A TO FORM CORRECTNES A,, /,/, County ST. LUCIE COUNTY BOARD OF COUNTY COMMISSIONERS PURCHASING POLICY PROCEDURES EFFECTIVE OCTOBER 20, 2015 4827-8502-6085.1 49409/0002 VM vm 1 PURCHASING POLICY PROCEDURES EFFECTIVE DATE: OCTOBER 20, 2015 SECTION 1 MANUAL OVERVIEW 1.1 Purpose 1.2 Scope 1.3 Distribution 1.4 Implementation 1.5 Revisions SECTION 2 GENERAL PURCHASING OVERVIEW 2.1 Role of the Finance Department 2.2 Good Faith Policy 2.3 Conflict of Interest 2.4 Environmentally Preferred Purchasing 2.5 Vendor Reference Request Procedures: Procedure – Environmentally Preferred Purchasing SECTION 3 CASH FUNDS 3.1 Petty Cash Policy 3.2 Petty Cash Purchase Authorization 3.3 Petty Cash Funds 3.4 Disallowance of Cash Purchases 3.5 Change Funds Procedures: Petty Cash Petty Cash Custodian Petty Cash Reimbursements Petty Cash Year-end Reimbursement Change Funds Change Fund Custodian SECTION 4 PURCHASING CARDS 4.1 Purpose 4.2 Cardholder Use of Purchasing Card 4.3 Purchasing Card Requirements 4.4 Prohibited Uses of Purchasing Cards 4.5 Failure to Abide by Purchasing Card Policies and Procedures 4.6 Sales and Use Taxes 4.7 Purchasing Card Disaster Plan 4.8 Special Purchases Procedures: Purchasing Card Cardholder Use of Purchasing Card Purchasing Card Responsibilities Assignment and Control of the Purchasing Card Other Conditions Making and Paying for Purchases Payment and Invoice Procedures Disputes Resolving Disputes Review of Purchases by Department Purchasing Cards with Travel Authorization SECTION 5 PURCHASING PROCESSES 5.1 Competitive Process Policy 5.2 Exempt Purchases 5.3 Local Preference 4827-8502-6085.1 49409/0002 VM vm 2 5.4 Public Entity Crimes 5.5 Piggybacking: Purchase of Goods, Equipment, and Contractual Services From other Governmental Bids Procedure: Exempt Purchases Piggybacking SECTION 6 AUTHORIZATION LIMITS 6.1 Signature Authority 6.2 Exceptions Procedures: Signature Authority Exceptions SECTION 7 PURCHASES OF $50,000 OR LESS – FORMAL AND INFORMAL QUOTES 7.1 Quotation Thresholds 7.2 Informal Quotations 7.3 Formal Quotations Procedures: Purchases of $50,000 or Less – Formal and Informal Quotes SECTION 8 PURCHASES GREATER THAN $50,000 – INVITATIONS TO BID 8.1 Bid Waiver 8.2 Invitations to Bid Procedures: Purchases Greater than $50,000 – Invitations to Bid Bid Waivers SECTION 9 REQUEST FOR PROPOSALS 9.1 RFP Contents 9.2 RFP Award Procedures: Request for Proposals RFP Award SECTION 10 REQUEST FOR QUALIFICATIONS 10.1 RFQ Content 10.2 RFQ Award Procedures: Request for Qualifications – (CCNA) Request for Qualifications – (Non-CCNA) SECTION 11SPECIALTY CONSTRUCTION PROCUREMENTS 11.1Prequalification and Shortlisting 11.2 Continuing Contracts for Construction Projects 11.3 Design-Build 11.4 Construction Management SECTION 12 RESOLUTION OF SOLICITATION AND PROPOSED AWARD PROTESTS 12.1 Right to Protest 12.2 Resolution of Protests 12.3 Stay of Procurement during Protests SECTION 13 PROFESSIONAL AND OTHER SERVICES 13.1 Competitive Negotiations 13.2 Professional Services Definition 13.3 Authorization to Obtain Professional Services 13.4 CCNA Professional Services 4827-8502-6085.1 49409/0002 VM vm 3 13.5 Community Development Block Grant (CDBG) Professional Services Procurement Procedure 13.6 Other Services – Specialist, Vendor and Speaker Agreements Procedures: CDBG Professional Services Procurement Other Services – Agreement Requirements Agreement Approvals SECTION 14 MINORITY BUSINESS PARTICIPATION 14.1 Definitions 14.2 County Selections Procedures 14.3 Minority Business Enterprise (MBE) Directory Procedures: Minority Business Enterprise SECTION 15 VENDOR PERFORMANCE EVALUATIONS AND DEBARMENT 15.1 Vendor Evaluations 15.2 Debarment Procedures: Vendor/Contractor Performance Evaluations Fresh Start initiative SECTION 16 PROCUREMENT PROCEDURES FOR STATE OR FEDERALLY FUNDED GRANT PROGRAMS 16.1 Applications 16.2 Acceptance 16.3 Procurement Procedures: Applications Acceptance Procurement SECTION 17 CONTRACT PROCEDURE 17.1 Contract Requirements 17.2 Contract Preparation 17.3 Contract Amendments Procedures: Contract Execution Contract Recording and Tracking Contract Amendments SECTION 18 CONTINUING CONTRACTS AND WORK AUTHORIZATIONS 18.1 Continuing Contracts 18.2 Work Authorizations 18.3 Amendments to Work Authorizations Procedures: Work Authorizations Amendments to Work Authorizations Work Authorization Payment Authorization SECTION 19 CONSTRUCTION CONTRACTS 19.1 Construction Contracts and Amendments 19.2 Apprenticeship Program Requirements 19.3 Bonding and Insurance Requirements 19.4 Retainage for Construction Contracts 19.5 Close Out of Construction Contracts Procedures: Construction Contract Award Contract Initiation Contract Change Order Bonding and Insurance Requirements Payment for Construction Services 4827-8502-6085.1 49409/0002 VM vm 4 Retainage for Construction Services Contracts Construction Contract Final Payment Authorization SECTION 20 EMERGENCY PURCHASES 20.1 Emergency Purchase Policy 20.2 Definition of an Emergency 20.3 Emergency Purchase Authorization 20.4 Emergency Purchase Over Authorization Limit Procedures: Emergency Purchases SECTION 21 TRAVEL AND EDUCATIONAL EXPENSES 21.1 Travel and Educational Reimbursements 21.2 Local Travel Authorization 21.3 Out of Area Authorization 21.4 Education and Training Expenses Authorization Procedures: Local Travel Out of Area Travel Education and Training Expenses Authorization Organizational Memberships Subscriptions SECTION 22 MISCELLANEOUS OBLIGATIONS 22.1 Miscellaneous Obligations Procedures: Miscellaneous Obligations SECTION 23 CAPITAL ASSETS 23.1 County Owned Personal Property 23.2 Acquisition of Capital Assets 23.3 Disposition of Capital Assets 23.4 Hardware/Software Procedures: Acquisition of Capital Assets Disposition of Capital Assets GENERAL PURCHASING PROCEDURES: Requisition Authorization Requisition Submission Requisition Review Purchase Order Preparation Purchase Order Changes Receiving Orders Payment Authorization for Orders Payment for Orders and Non-construction Services Payment Limits Material Center Authorization for Material Center Use Scheduling Work at the Material Center Payment for Material Center Orders ATTACHMENT APROCUREMENT POLICIES & PROCEDURES FOR CDBG PROGRAMS & PROJECTS FORMS: Petty Cash Authorization Form Petty Cash Report Pre-Travel Expense Authorization Reimbursement of Traveling Expenses 4827-8502-6085.1 49409/0002 VM vm 5 Purchasing Signature Authorization Temporary Signature Authorization Form Sole Source Justification Form Equipment Request Approval Memo New Grant Application Request Form Acquisition/Disposition or Transfer of Property Check Request Form SECTION 1 - MANUAL OVERVIEW 1.1 PURPOSE The purpose of this Purchasing Policy Manual (Manual) is to provide clear direction to all County employees regarding the purchasing policies of St. Lucie County, Florida. The adoption of this Manual and the approval of any subsequent revisions by the Board of County Commissioners (Board) shall authorize the policies contained herein for official use in County business. 1.2 SCOPE The scope of this Manual includes all departments, offices and dependent taxing districts under the jurisdiction of the Board, as well as all purchasing transactions that are paid for directly from County funds under the control of the Board. The scope of this Manual shall not include payroll transactions relative to the Board. 1.3 DISTRIBUTION This Manual and related procedures will be available to all County employees and the general public through the County’s intranet and internet sites. 1.4 IMPLEMENTATION a. The County Administrator shall ensure that written procedures are maintained to implement and enforce the policies set forth in this Manual. b. The Finance Department, headed by the Finance Director, and under the authority of the Clerk to the Board, an independent Elected Officer, shall exercise dual authority over the County purchasing process for the purpose of implementing and enforcing these policies and related procedures on a countywide basis, as well as in the Finance Department for its role in the process. c. The County Administrator, in consultation with the Finance Director, is authorized to determine how to correct policy errors and violations when they occur. To the extent feasible, the error or violation should be corrected through implementation of the Manual policy. d. Violation of any of the policies in this Manual may be grounds for disciplinary action. In addition, a violation may result in the County’s refusal to pay for any improperly ordered goods or services. e. As allowed by law, the Board shall have the authority, in specific cases determined to be exceptional, to waive or override the policies in this Manual and to direct a different handling of each such case. f. To the extent feasible, the Board expects purchases to be planned as part of the budget process. g. The Board recognizes that all purchases cannot be included in the budget or, when budgeted, the specific items and costs may not be known. However, employees shall not intentionally divide, underestimate or otherwise manipulate purchases to avoid the budget process, purchasing procedures and/or approval requirements. 4827-8502-6085.1 49409/0002 VM vm 6 1.5 REVISIONS This Manual is to serve as a permanent and up-to-date guide to County purchasing policies. As changes are approved by the Board, the County Administrator or designee shall be responsible for updating the Manual and implementing appropriate procedures. The County Administrator is authorized to correct typographical or scrivener’s errors to ensure the Board’s policy intent is clear. SECTION 2 - GENERAL PURCHASING OVERVIEW 2.1 ROLE OF THE FINANCE DEPARTMENT The role of the Finance Department, as an agent of the Clerk to the Board and an independent Elected Officer, is to serve as the Accountant and Treasurer to the Board. The Finance Department shall exercise dual authority over the County purchasing process and, specifically, for the following: a. Pre-auditing all payment requisitions, prior to disbursement, to determine accuracy, legality, and propriety, and to determine that appropriate policies and procedures have been followed. b. Rejecting any payment requisition for a purchase transaction in which the policies and procedures outlined in this Manual have not been followed. c. Disbursing funds for purchase transactions that are legal and proper, and in compliance with all appropriate policies and procedures. d. Recording all disbursements in the County's accounting records. 2.2 GOOD FAITH POLICY a. A County employee acting in a private capacity shall not rent, lease, or sell any realty, goods, or services to the County. County Commissioners shall comply with Chapter 112, Part III, Florida Statutes and other applicable statutes and regulations related to conduct and disclosure. With regard to the receipt of any benefit or profit from any contract or purchase made by the County, the actions of the County Commissioners as well as any County employee having the authority to commit the expenditure of County funds through the issuance of a purchase order shall be governed by Chapter 112, Florida Statutes. b. No County employee shall solicit or accept anything of value to the employee including a gift, loan, reward, promise of future employment, favor, or service based on any understanding that the judgment of the employee would be influenced thereby. c. The County strives to maintain a strong and enduring relationship with vendors of proven ability. To accomplish this, purchasing activities will be conducted so that vendors will value County business and make an effort to meet our requirements on the basis of quality, service and price. d. The County will buy only from suppliers who have adequate financial strength, high ethical standards, and a record of adhering to specifications, maintaining shipping promises, and giving a full measure of service. New sources of supply shall be given due consideration as multiple sources of supply are necessary to ensure availability of materials. e. No purchase order or contract shall be knowingly issued when there is evidence of a conflict of interest. When a conflict may exist, but its existence is not clearly established, the County Administrator shall refer the matter to the County Attorney whose opinion shall be final in the absence of any specific action by the Board. 4827-8502-6085.1 49409/0002 VM vm 7 2.3 CONFLICT OF INTEREST a. All contracts between the County and any vendor or consultant shall contain a conflict of interest clause as approved by the County Attorney. b. Any professional consultant that contracts with the County as to the feasibility of any County capital project shall not be eligible to participate in any future design work on that project that might become necessary as a result of the consultant's advice. This policy shall be included in any request for proposals related to the feasibility of any County project. The Board may waive this policy by majority vote. c. In addition to the provisions of Section 2.3(a)(b), federal standards of conduct apply to all federally supported grant projects, including but not limited to: 1. No elected official, employee, or agent of the County shall participate in selection or in the award or administration of a contract supported by Federal funds if a conflict of interest, real or apparent would be involved. 2. Such a conflict would arise when the elected official, employee, or agent, any member of his or her immediate family, partner, or an organization which employs, or is about to employ, any of the above, has a financial or other interest in the firm selected or considered for award. 3. The County’s elected officials, employees, or agents shall neither solicit nor accept gratuities, favors, or anything of monetary value from contractors, potential contractors, or parties to sub- agreements. d. Violations of the standards of conduct in this Manual may result in disciplinary action as set forth in Section 112.317, Florida Statutes, provided that such disciplinary action does not conflict with the jurisdiction of the State of Florida Commission on Ethics. 2.4 ENVIRONMENTALLY PREFERRED PURCHASING a. The County will seek to increase acquisition and utilization of environmentally preferred products and services, consistent with price, performance, availability and safety considerations. Environmentally preferred purchases are products or services that have a lesser or reduced effect on human health and the environment when compared with competing products or services that serve the same purpose. b. The County may consider paying a reasonable premium for environmentally preferred products and services. c. Environmentally preferred purchasing should be taken into account as early as possible in the planning and decision-making process. Environmentally preferred purchasing shall be considered in planning and design phases of new construction and renovation projects including energy conservation, green building technologies and Florida-friendly landscaping. The County will seek to increase the purchase and use of environmentally preferred office and cleaning supplies and electronic and computer equipment, including but not limited to the purchase or lease of duplex printers and copiers, consistent with price, performance, availability and safety considerations. d. Any vendor contracting with the County is required to purchase products or materials with recycled content when those products or materials are available at reasonable prices within a reasonable period of time unless the products or materials fail to meet reasonable performance standards. If the decision was made not to use recycled products, the vendor shall provide the County with a written statement indicating the basis for the decision. 2.5 VENDOR REFERENCE REQUEST 4827-8502-6085.1 49409/0002 VM vm 8 From time to time, the County receives requests for references regarding vendors, contractors, and professional services providers with whom the County does business. In the event an employee receives a request for a reference, the employee should refer the request to the County Administrator’s designee for response. Procedure – Environmentally Preferred Purchasing 1. Departments should promote the use of recycled and other environmentally preferred products. 2. Departments should use, and encourage their contractors and consultants to use products manufactured with the maximum practicable amount of recovered material, especially post- consumer recycle content material. They may also use environmentally preferred products whenever cost effective and to the extent practicable. 3. Departments should identify key personnel to evaluate environmentally preferred products to determine the extent to which it may be practicably used by the Department and its contractors. 4. Departments shall insure that they and their contractors use recycled paper in printed material and that it bears an imprint identifying the recycled content of the paper, whenever practicable. 5. Whenever practicable Departments should support and implement sustainable building requirements as specified for LEED certification. 6. Departments shall insure that contracting specifications do not discriminate against recycled products without justification. 7. Departments shall specify recycled and other environmentally preferable products whenever practicable and require this of contractors. 8. Departments shall evaluate and assess current Department policies and practices for opportunities to incorporate more environmentally preferred products and services. 9. Departments should be familiar with third party certification organizations such as Energy Star™ and Green Seal™ among others to help write specifications for products and services. SECTION 3 – CASH FUNDS 3.1 PETTY CASH POLICY The administrative costs and staff time to purchase supplies and services of small monetary value through the usual purchasing procedures are often excessive in relation to the value of supplies and services received. In addition, there are vendors which do not accept purchasing cards. For these reasons, the Board has adopted a Petty Cash policy. 3.2 PETTY CASH PURCHASE AUTHORIZATION Petty cash purchases are authorized for minor purchases as determined by the County Administrator or designee. The County Administrator or designee or the Finance Director shall have the authority to disallow any purchase not made in accordance with such policies and procedures. 4827-8502-6085.1 49409/0002 VM vm 9 3.3 PETTY CASH FUNDS The establishment of a petty cash fund and the amount of such a fund for any County department, division or office must be authorized in writing by the County Administrator. 3.4 DISALLOWANCE OF PETTY CASH PURCHASES Any petty cash purchase not made in accordance with County purchasing policies and procedures may not be paid or reimbursed by the County. The employee may be required to reimburse the County for such purchase. 3.5 CHANGE FUNDS The County Administrator is authorized to establish change funds which are cash funds used to make change for customers paying fees, buying tickets, novelties, etc. Purchases shall not be made from change funds. Procedure – Petty Cash Petty Cash Purchases are authorized for minor purchases as follows: a. Freight and Postal Charges with no dollar limit. b. Minor items with a limit of $25.00 per transaction. c. Fees for summons, subpoenas, and witnesses with no dollar limit. d. Fees for recording instruments and documentary stamps paid to the Clerk of the Courts with no dollar limit. e. Fees for tags and titles payable to the State of Florida or to the Tax Collector f. Other transactions as may be approved in writing by the County Administrator. The Department Director shall prepare a memo to the County Administrator requesting the establishment of such a fund, or for an increase or decrease of the amount; the memo should be submitted to the Management and Budget Director for approval prior to being submitted to the County Administrator for approval. a. If approved by the County Administrator, the Finance Department will notified by the requesting department to make the disbursement to establish or increase the fund. b. In event of the disestablishment of a Petty Cash Fund, or the reduction of the amount authorized for such a fund, the Finance Department shall be responsible for recovering the appropriate amount from the Petty Cash Fund. The Department must submit a final accounting with the petty cash funds to the Finance Department. Procedure - Petty Cash Custodian: In each Division, Department or office authorized to maintain a Petty Cash Fund, the Director shall designate a single employee as Petty Cash Custodian, and another employee as Relief Custodian. a. Such designations are made by filling out a Petty Cash Authorization Form and submitting the form to the Finance Department. 4827-8502-6085.1 49409/0002 VM vm 10 b. The Director, the Petty Cash Custodian, and the Relief Custodian must have their signatures on file with the Finance Department, and must certify in writing to the Finance Department their knowledge and understanding of the policies and procedures governing Petty Cash. c. Petty Cash Custodians will be accountable to the Finance Department for the fixed amount of the Petty Cash Funds under their custodianship. d. Petty Cash Custodians will keep all Petty Cash Funds in a sturdy container equipped with a lock. At all times, other than regular working hours, this locked box will be stored in a safe or in a locked desk. e. No Employee other than the Custodian and Relief Custodian will have access to the Petty Cash Fund. f. In the event of a change in the Petty Cash Custodian in a department or office, the former Custodian must submit the amount of the fund and any un-reimbursed vouchers to the Finance Department to close out the custodianship. Only after close out by the Former Custodian will the New Custodian receive custody of the Petty Cash Fund from the Finance Department. g. Petty Cash Custodians will be liable personally for any loss or misuse of the Petty Cash Funds under their custodianship, except in the case of theft or misuse by another employee. Each Director authorized to maintain a Petty Cash Fund shall be responsible for enforcing the general authorization for Petty Cash Purchases within their Department. a. Each Director shall establish written Departmental Internal Control Procedures for making and approving Petty Cash Procedures. b. Any employee so authorized by the Department procedure may make a Petty Cash Purchase directly from a vendor in accordance with the general authorization of Section 3.2. c. A Director shall have authority to disallow any purchase not made in accordance with County Policy and Procedure. d. Petty Cash Voucher Form which is distributed by the Finance Department must be prepared to record each Petty Cash Purchase. The Voucher shall be pre numbered and must: 1. Be typed or prepared legibly in ink, 2. Bear the signature of the person receiving the money, 3. Be supported by a Vendor's Original Invoice or Receipt. e. All Petty Cash Purchases must be approved in writing by the Director or designee and the Petty Cash Custodian, who shall affix their signatures upon the Petty Cash Voucher Form. f. The original copy of the Petty Cash Voucher shall be submitted for reimbursement, and a duplicate copy shall be maintained on file with the Petty Cash Custodian. Procedure - Petty Cash Reimbursements: 4827-8502-6085.1 49409/0002 VM vm 11 To obtain a Reimbursement for Petty Cash Vouchers, the Petty Cash Custodian will prepare a Petty Cash Report Form and submit it to the Finance Department. a. A Petty Cash Report may be prepared any time during the month when it is determined that a reimbursement is necessary. The report will be prepared as follows: 1. Assign a Transmittal Number to the report that will be consecutively numbered for each fiscal year for the Department in the following format: "FY10-001," "FY10-002," etc. 2. Count all cash in the fund and record the amount counted on the Petty Cash Report - "Actual Cash on Hand." 3. Group all Petty Cash Vouchers to be reimbursed by Voucher Number. 4. List and enter all Vouchers by Voucher Number, the account number to be charged, and the dollar amount in the space provided under "Vouchers Attached for Reimbursement." There must be a Vendor's Invoice or Receipt and a Petty Cash Voucher Form for each transaction listed. 5. Total of petty cash on hand and petty cash vouchers must equal petty cash fund amount. 6. The report must be signed by the Custodian and approved by the Director or designee for reimbursement. b. After approval by the Director, the original of the Petty Cash Report Form along with all supporting vouchers will be forwarded to the Finance Department. The duplicate copy of the report shall be maintained on file with the Petty Cash Custodian. c. After receiving the Petty Cash Report with supporting vouchers, and after appropriate pre-audit review, the Finance Department will prepare the reimbursement payment for the department’s petty cash fund. 1. Payment will be charged against the appropriate departmental budgetary expenditure accounts. 2. All payments reimbursing petty cash funds will be drawn payable to the respective petty cash custodian by their personal name and words "Petty Cash." 3. The Finance Department will cancel each and every voucher and other supporting documents attached to the report with a paid stamp immediately after the reimbursement warrants are prepared. The paid stamp will be placed only once on the front of each document and the date must coincide with the date on the payment. 4. Any irregularity found during the pre-audit shall be reported immediately to the respective Department Director or Manager. Procedure - Petty Cash Year-end Reimbursement: a. At the end of the fiscal year, all Petty Cash Vouchers must be submitted for reimbursement and cash balance taken to Finance for verification of fund amount on the last workday of the year. 4827-8502-6085.1 49409/0002 VM vm 12 b. This year-end reimbursement and audit will insure that Petty Cash Purchases are recorded in the proper fiscal year and that proper control is maintained over all Petty Cash Funds. Procedure – Change Funds Change funds are used to make change for customers paying, fees, buying tickets, novelties, etc. Change funds are not to be used as petty cash. The Department Director shall prepare a memo to the County Administrator requesting the establishment of such a fund, or for an increase or decrease of the amount; the memo should be submitted to the Management and Budget Director for approval prior to being submitted to the County Administrator for approval. a. If approved by the County Administrator, the Finance Department will be notified by the requesting department to make the disbursement to establish or increase the fund. b. In event of the disestablishment of a Change Fund, or the reduction of the amount authorized for such a fund, the Finance Department shall be responsible for recovering the appropriate amount from the Change Fund. The Department must submit a final accounting with the change funds to the Finance Department. Procedure – Change Fund Custodian: In each Division, Department or office authorized to maintain a Change Fund; the Director shall designate a single employee as Change Fund Custodian, and shall authorize all employees that will have access to the change fund: a. Such designations must be made in writing and kept on file with the Finance Department. b. The Director, the Change Fund Custodian, and all authorized employees must have their signatures on file with the Finance Department, and must certify in writing to the Finance Department their knowledge and understanding of the policies and procedures governing Change Fund. c. The Department Director and the Change Fund Custodians will be accountable to the Finance Department for the fixed amount of the Change Funds under their custodianship. d. Change Fund Custodians and authorized employees will keep all Change Funds in a sturdy container equipped with a lock. At all times, other than regular working hours, this locked box will be stored in a safe or in a locked desk. e. No unauthorized employee shall have access to the Change Fund. f. In the event of a change in the Change Fund Custodian in a Division, the Department Director must submit a memo to the Finance Department informing them of the change in Custodian. h. The Department Director and the Change Fund Custodians will be liable personally for any loss or misuse of the Funds under their custodianship, except in the case of theft or misuse by another employee. i. Change funds shall be verified at the beginning and ending of each business day. 4827-8502-6085.1 49409/0002 VM vm 13 j. Any missing funds shall be reported immediately in writing to the Department Director and the Finance Director. Each Director authorized to maintain a Change Fund shall be responsible for enforcing the general authorization for Change Funds within their Department. a. Each Director shall establish written Departmental Internal Control Procedures for making and approving Change Fund Procedures. b. The Finance Department may conduct periodic operational and compliance audits. SECTION 4 - PURCHASING CARDS 4.1 PURPOSE The County Administrator or designee shall determine who is issued a purchasing card and the limits of that card. Written procedures shall be established by the County Administrator to implement the following: a. Provide an efficient method of purchasing and paying for goods and services based on the user’s card and per transaction limits; b. Ensure use of purchasing cards is cost-effective and takes advantage of available discounts; c. Reduce the use of purchase orders; d. Ensure that purchasing card purchases are in accordance with the County’s ordinances, policies, and procedures; e. Ensure that the County bears no legal liability from inappropriate use of purchasing cards; f. Provide for disciplinary action if the purchasing cards are misused; and g. Ensure the purchasing card is used for County-authorized purchases only. 4.2 CARDHOLDER USE OF PURCHASING CARD a. The purchasing card shall only be used by the employee whose name is embossed on the card. No other person is authorized to use the card. The cardholder is responsible and accountable for all transactions that occur on his/her card. b. The purchasing card shall not be used for any personal use and any such use will require immediate reimbursement and will result in disciplinary action, which may include dismissal. 4.3 PURCHASING CARD REQUIREMENTS a. Prior to issuance of a purchasing card, the County Administrator or designee shall determine the single purchase limit and the 30-day purchase limit for the employee. The maximum limit shall be $5,000 for a single purchase. Charges shall not be split to stay within the single purchase limit. Additional limitations may be imposed. b. When it is in the best interest of the County, the County Administrator or designee can override spending limits to authorize larger purchases. 4827-8502-6085.1 49409/0002 VM vm 14 c. When in the best interest of the County, the County Administrator may authorize payment by credit card to take advantage of discounts. d. The Department Director or Division Manager shall review all employee purchasing card statements for compliance with County policies and procedures, sign statements indicating approval and ensure statements are processed in a timely manner. The County Administrator or designee shall review and approve all purchasing card statements for Department Directors or Administration staff. Statements approved by the Department Director or Division Manager which comply with purchasing card limits established by the County Administrator are not required to comply with signature authorization limits in Section 6. 4.4 PROHIBITED USES OF PURCHASING CARDS The following types of items shall not be purchased with a purchasing card, regardless of the dollar amount: a. Cash advances b. Alcohol or drugs c. Capital equipment (equipment over $1,000) except as provided in 4.8. d. Entertainment, except when authorized in writing by the County Administrator e. Professional or contracted services that are related to an active County contract f. Clothing, except uniforms for participants in County programs g. Food or Recreation, except as approved in writing by the County Administrator for County programs h. Travel expenses such as hotels, automobile rental, and airline tickets, unless cardholder has a card specifically authorized by the County Administrator or designee for travel expenses. i. Any additional goods or services specifically restricted by the Department Director or the County Administrator. 4.5 FAILURE TO ABIDE BY PURCHASING CARD POLICIES AND PROCEDURES Failure to abide by the Manual policies and related procedures regarding purchasing cards may result in disciplinary action, up to and including termination. The employee may also be required to pay the County for inappropriate, unauthorized or undocumented purchases and the employee’s purchasing card may be cancelled. If the cancellation of the purchasing card impacts the employee’s ability to perform their essential job functions, appropriate personnel action may be taken. 4.6 SALES AND USE TAXES The County is exempt from paying any State of Florida sales and/or use tax, even if the purchase is made with the purchasing card. If the vendor charges sales tax, the cardholder must contact the vendor to obtain a credit equal to the sales tax. 4.7 PURCHASING CARD DISASTER PLAN The County Administrator or designee will ensure there are special high limit credit purchasing cards which will be issued during disaster type emergencies. The County Administrator will ensure these cards are physically secured and issued only under the direction of the County Administrator. 4827-8502-6085.1 49409/0002 VM vm 15 4.8 SPECIAL PURCHASES When in the best interest of the County, purchases may be made with a specifically designated purchasing card that will be in the name of the OMB Director. Procedure – Purchasing Card (Procedure approved 11/22/11) a. All requests for Purchasing Cards for operating departments must be approved by the County Administrator or Designee(s). b. The Purchasing Card system simplifies the procurement/disbursement process. Procurement responsibility is delegated to the ordering department enabling an authorized cardholder to place an order directly with the vendor. c. When a purchase authorization is requested by the supplier at the point-of-sale, the Visa Purchasing Card system checks the transaction against preset limits established by the employee’s department. Transactions are approved or declined (electronically) based on the Purchasing Card authorization criteria established. The authorization criteria may be adjusted periodically as needed and may include, but is not limited to, the following: 1. Single purchase limit as set by Department Director (not to exceed $5,000) 2. Monthly spending limit 3. Approved Merchant Category Codes c. The authorization process occurs through the electronic system that supports the Purchasing Card processing services under St. Lucie County’s agreement with Bank of America. Procedure – Cardholder use of Purchasing Card (Procedure approved 11/17/2011) The purchasing card shall only be used by the employee whose name is embossed on the card. No other person is authorized to use the card. If a cardholder is requested by any employee which includes Directors, Managers, Supervisors, or Foremen for use of their purchasing card or card number, they are to immediately contact the Manager of Employee Relations and Safety and report the circumstances of this request. The Manager of Employee Relations can be reached by phone 772-462-1783, e-mail teegardinw@stlucieco.org or in person. The office of the Employee Relations Manager is located in the Human Resources Department. If a cardholder is requested by the County Administrator or Assistant County Administrator for use of their purchasing card or card number, they are to immediately contact the Chairman of the Board of County Commissioners and report the circumstances of this request. Procedure - Purchasing Card Responsibilities Cardholder: a. Hold and keep secure Purchasing Card and card number b. Order materials and services c. Receive and inspect all ordered materials and services, report discrepancies to merchant, card representative, and to Purchasing d. Save all sales receipts, turn into Department Card Representative as soon as possible e. Identify disputed charges f. Review monthly charges with Purchasing Card Representative 4827-8502-6085.1 49409/0002 VM vm 16 g. Sign monthly statements certifying charges prior to submission to Finance Department Purchasing Card Representative: (Individual(s) designated by Department Director) a. Review monthly statement with cardholder b. Match receipts with monthly card statement c. Review monthly statements for validity of all transactions d. Verify that funds are available in the proper account to pay for the purchases e. Process accounting data in Banner f. Verify the appropriateness of cost center codes (i.e., fund / agency / org. assigned to charges) g. Handle disputed items identified by cardholder h. Forward completed transmittal form to the Finance Department i. Perform regular inspection of card possession by cardholders Department Director or Designee(s): (Procedure approved 11/22/11) a. Submits request for Purchasing Card(s) for designated employee(s) to the County Administrator or Designee(s) for approval b. Set card spending limits within established guidelines c. Collect cards from cardholders who end employment d. Evaluate the need to cancel or reissue cards when employees transfer e. Notify the Card Administrator of terminated cards f. Appoint a Department Purchasing Card Representative g. Sign the transmittal form authorizing charges County Administrator or Designee(s): (Procedure approved 11/22/11) a. Approves request for Purchasing Cards for all operating departments. Purchasing Card Administrator (Desiree Cimino): (Appointed by Director of Management and Budget) a. Coordinate issuance and cancellations of cards b. Coordinate program policy issues c. Participate in ongoing program reviews d. Participate in resolving billing disputes e. Maintain policy and cardholder guides/manuals f. Provides training and education on purchasing card g. Final resolution of supplier disputes h. Pursue supplier discount opportunities i. Evaluate Purchasing Card feedback from suppliers j. Establish and monitor benchmarking objective k. Coordinate and maintain internal controls l. Target new cardholders and expand use of Card Finance Department: a. Receive approved monthly transmittal form from Department Purchasing Card Representative b. Receive consolidated statement from Purchasing Card issuer c. Confirm that all charges are authorized by Department Representatives 4827-8502-6085.1 49409/0002 VM vm 17 d. Notify department when approved monthly transmittal forms are not received e. Pay monthly charges from consolidated statement f. Process payment to Bank of America g. File and store approved transmittal forms h. Administer 1099 reporting i. Conduct periodic operational and compliance audits Procedure - Assignment and Control of the Purchasing Card a. Requests for and Issuance of Purchasing Card 1. Requests for new cardholders or for changes to current cardholders shall be made by submitting a completed Request/Certification/Receipt form to the Purchasing Card Administrator. 2. All requests for Purchasing Cards must be signed by the Department Director. 3. Purchasing Cards may be issued to individual employees who frequently purchase goods and services. 4. The Purchasing Card will have the employee’s name, the County name, and the expiration date embossed on the face of the card. The Purchasing Card issuing company will not have individual cardholder information other than the cardholder’s work address. No credit records, social security numbers, etc., of the cardholder are maintained by the issuing company. 5. When the Purchasing Card Administrator receives a Purchasing Card from the issuing card company, the cardholder will be required to personally attend and complete Purchasing Card training, take receipt of the card and sign a certification/receipt form. 6. The purchasing card training will be given by the Purchasing Card Administrator. The cardholder will be given a copy of the Purchasing Card Policies and Procedures guide and an oral review of the program. 7. Each Card will be activated by the Purchasing Card Administrator after the cardholder has attended the training and received his/her card. b. Lost or Stolen Purchasing Cards or Card Numbers 1. If a Purchasing Card is lost, stolen, or misplaced, or if the cardholder thinks that the number has been used without his or her authorization, the cardholder must immediately notify the Purchasing Card Company and the Purchasing Card Administrator of the loss. DO NOT ASK BANK OF AMERICA TO REPLACE YOUR CARD!! Purchasing will do that. BANK OF AMERICA: 1-888-449-2273 (24 hours a day, 365 days a year) 2. The cardholder shall report all information necessary and complete all forms required to reduce the liability to the County for a lost or stolen card or card number, and shall work with any law enforcement agency in prosecuting theft. c. Termination or Transfer of Cardholder 4827-8502-6085.1 49409/0002 VM vm 18 1. When an employee ends his/her employment or is transferred to another department, the Department Director shall collect the Purchasing Card, destroy it (cut it in half), and submit the pieces of the card to the Purchasing Card Administrator. 2. If the Department Director is unable to collect the Purchasing Card when an employee leaves, he/she shall immediately notify the Purchasing Card Administrator by telephone followed by a memo. The Purchasing Card Administrator will ensure that the card is canceled. Procedure - Other conditions a. All items purchased over-the-counter must be immediately available. No back ordering is allowed. b. All items purchased during one telephone or electronic transaction must be delivered in a single delivery. If an item is not immediately available, no back ordering is allowed. c. All items purchased by telephone must be delivered by the vendor within the 30-day billing cycle. The order should not be placed without this assurance. Procedure - Making and Paying for Purchases a. Documentation of Over-the-Counter purchases 1. When an over-the-counter purchase is made, the cardholder must obtain the customer’s copy of the charge slip. 2. The charge slip will be retained either by the cardholder or by the Department Purchasing Card Representative. b. Telephone and Electronic Orders 1. When placing a telephone or electronic order, the cardholder must confirm that the vendor will charge the Purchasing Card when shipment is made so that receipt of the supplies may be certified on the monthly Statement of Account. This is also a requirement of the vendor’s contract with VISA. c. Missing Documentation 1. If for some reason the cardholder does not have documentation of the transaction to send with the statement to his/her Purchasing Card Representative, he/she must attach a description of the purchase along with a signed certification that the purchase was made in accordance with the County’s Policies and Procedures and that the purchase was required for County operations. 2. Failure to promptly provide such certification may result in disciplinary actions and the employee may be required to pay the County for the undocumented expense. 3. Continued incidents of missing documentation will also result in the cancellation of the employee’s purchasing card. Payment and Invoice Procedures a. The credit card company will mail one consolidated statement for all cardholders to the Purchasing Division. This Statement of Account will list all transactions processed during 4827-8502-6085.1 49409/0002 VM vm 19 the previous billing cycle (usually 30 days). (Each individual cardholder will receive their statement directly from Bank of America and/or electronically from the Purchasing Division) If no purchases were made on the purchasing card during the billing cycle, no Statement of Account will be generated unless adjustments for previously billed transactions have been processed during that cycle. b. The cardholder must review the statement and note any errors or disputes. Account numbers for each item (or account numbers and total dollar amounts for groups of items) should be written on each receipt and attached to the statement. 1. Each receipt will then be reviewed and signed by the cardholder. By signing the receipts, the cardholder is certifying that all charges are appropriate and authorized County purchases. The statement will then be reviewed and signed by the Department Purchasing Card Representative and Department Director. c. Once the department representative and Director have reviewed and signed all statements for which they are responsible, the transmittal form with signatures will be forwarded to the Finance Department within five working days after receipt. 1. Card charge slips/receipts for all items listed on the statement shall be retained in the department for auditing purposes. Auditing will be at the discretion of Purchasing, Finance, or the County Auditors. d. The Finance Department will ensure that the purchasing card charges are paid timely and that the consolidated statement received is reconciled against the transmittal form forwarded from the department. 1. Department Directors, Purchasing, and Purchasing Card Administrator will be notified when individual transmittal forms are not received in the allotted time. 2. Continued failure to meet the five work day deadlines may result in the revocation of purchasing cards at the discretion of the Director of Management and Budget in consultation with the Department Director. e. If the statement is not received in the Finance Department within the five days, then Finance will pay the statement and charge any transactions to the card’s default account number. A late transaction processing charge may be added to late submittals. Procedure - Disputes a. If items purchased with the purchasing card are defective, the cardholder must return the item(s) to the vendor for replacement or credit. If the service paid for with a purchasing card is faulty, the vendor must be notified and asked to correct the situation or provide a credit. If the vendor refuses to replace or correct the faulty item or service, the purchase will be considered in dispute. If the quantity of items received is less than the invoice and charge billing, then the transaction must be disputed. b. If a vendor charges the cardholder sales tax on the purchase, and the cardholder is unable to get a credit for the amount of the tax, then this is a non-disputable item and must be paid by the cardholder. c. A disputed item must be explained with a note on the Cardholder’s Statement of Account before the statement is forwarded to the Accounts Payable section for payment. 4827-8502-6085.1 49409/0002 VM vm 20 d. It is essential that the time frames and documentation requirements established by the Purchasing Card issuer be followed to protect the Cardholder’s rights in dispute. e. When an account is in a dispute status, the disputed amount is still included in calculating the available money for authorizations (monthly limit). At the time the item is placed in dispute, it is removed from all finance charge, late charge, over limit fee, and past due amount calculations. Finance charges which accrue from posting until the item is placed in dispute must be handled according to County policy. Any cardholder statements generated while the account is in dispute will display the following message: YOUR ACCOUNT IS IN DISPUTE FOR $XXX.XX. THIS AMOUNT HAS NOT BEEN INCLUDED IN THE FINANCE CHARGE OR PAYMENT CALCULATIONS. Procedure – Resolving Disputes a. A dispute occurs when a cardholder questions a transaction that has been charged to his/her account. The following steps must be taken to ensure prompt settlement: 1. The cardholder contacts the vendor about the transaction and supplies the necessary information to begin the resolution process, AND; 2. The cardholder completes the Bank of America VISA Dispute Form and faxes to Bank of America (facsimile1-800-253-5846) explaining the reason(s) for the dispute as well as a copy of the statement, if the item has posted. Bank of America will then place the transaction into a disputed status. 3. If the problem is resolved between the merchant and the cardholder, the cardholder should write the solution agreed upon on the bottom of the Dispute Form that was previously faxed to Bank of America and fax it to Bank of America as soon as possible. b. If an agreement cannot be reached the following steps will be completed: 1. After the item has been entered as a dispute, Bank of America must determine who is responsible by researching the transaction including requesting a copy of the sales draft when necessary. 2. When responsibility for the transaction is determined, the dispute will be settled on- line. c. If the cardholder is actually responsible for the transaction, the dispute is settled in favor of Bank of America and no further actions are required. If the cardholder is not responsible for the transaction, the dispute is settled for the cardholder and the charge back process may be initiated against the vendor. d. If there continues to be problems with a particular vendor, the cardholder shall notify the Director of Management and Budget of the problems. Procedure - review of Purchases by Department a. Because of their knowledge of the job responsibilities and requirements, Department Purchasing Card Representatives are required to review each purchasing card expenditure (item purchased, amount, and vendor) to ensure the goods or services were necessary, and for official use. By signing the transmittal form, the Purchasing Card Representative is certifying that all purchasing card expenditures were necessary, and for official use. 4827-8502-6085.1 49409/0002 VM vm 21 b. When purchases are questioned, the Department Director or the designated Department Purchasing Card Representative will be responsible for resolving the issue with the cardholder. 1. If the Department Director is not satisfied that the purchase was necessary and for official use, the cardholder must provide either a credit voucher proving the item(s) were returned for credit; or a personal check (or cash) made payable to St. Lucie County for the full amount of the purchase plus applicable sales tax. 2. Checks along with a copy of the invoice being reimbursed must be sent to the Finance Department with the transmittal form within one week with a written explanation of why the violation occurred and the action taken to prevent reoccurrence. c. The designated Department Purchasing Card Representative shall not review or approve charges to his/her own purchasing card. The Department Director must approve all charges made by a designated Purchasing Card Representative . Procedure - Purchasing Cards with Travel Authorization a. Request for purchasing cards with travel authorization must be approved by the County Administrator. b. The St. Lucie County travel policy provided in Section 20, apply to all travel related transactions. The travel policy reporting requirements are in addition to the purchasing card requirements. The Travel Expense Request shall be submitted and approved prior to travel. c. The original receipt(s) shall be submitted with the completed Travel Reimbursement Form. A copy of the travel charge receipt shall be maintained in the cardholder’s or Card Representative’s office for verification against the monthly statement, (a copy of the receipt must be with the card holders monthly statement if they used their purchasing card to pay for their travel (i.e.: hotel/motel rooms gas, rental car, or airline tickets, etc.) and for archive purposes. Also, a copy of their travel receipts should be kept with their travel forms filed and kept in their department. The completed Travel Reimbursement Form (with original receipts attached) shall be submitted to the Finance Department within five (5) business days after completing the trip, and returning to work. d. Payments will be made to Bank of America by Finance on the regular monthly cycle for all purchasing card transactions regardless of when the Travel Expense Request Form is received in the Finance Department. (i.e., know your monthly limit and how much is charged against it.) e. Employees that have travel authorized purchasing cards are not eligible for advance travel payments unless approved by the County Administrator. Procedure – Special Purchases (Procedure approved 2/03/12) The OMB Director may request a purchasing card for special purchases in the name of Management and Budget or Purchasing designee. SECTION 5 - PURCHASING PROCESSES 5.1 COMPETITIVE PROCESS POLICY 4827-8502-6085.1 49409/0002 VM vm 22 Normally, major purchases of materials, supplies, equipment, and contracted services from vendors will be acquired through competitive processes, including but not limited to, informal and formal quotations, invitations to bid (ITB), requests for proposals (RFP) and requests for qualifications (RFQ) as outlined in this Manual or pursuant to State Contract as provided by Chapter 287, Florida Statutes. The only exceptions permitted to this policy are those authorized in this Manual or authorized by the Board of County Commissioners. 5.2 EXEMPT PURCHASES Certain purchases shall be exempt from the competitive processes as provided in this Manual: a. Purchases less than $5,000; b. Intergovernmental purchases among County Departments; c. Governmental purchases of goods or services from or with other governmental agencies; d. The purchase of or payment for utility services, including but not limited to water and sewer, electric, telephone, internet, etc.; e. The purchase of items under State Contract, General Services Administration Contract pursuant to Chapter 287, Florida Statutes, once approved by the Board during the budgetary process; f. Purchases of computer hardware and software over $50,000 shall be at the discretion of the Board of County Commissioners; g. Purchase of library books, educational and/or personnel tests, similar audio/visual materials, periodicals, printed library cards; h. Professional services (not related to CCNA), commodities or services purchased directly from a governmental or nonprofit agency provided no conflict of interest exists; and i. As allowed by law, direct purchase of goods by a contractor on behalf of the County for a County project. 5.3 LOCAL PREFERENCE Except where otherwise provided by federal or state law or other funding source restrictions or as otherwise set forth in the purchasing policy, St. Lucie County shall give preference to local businesses in the following manner: a. “Local Business” defined: For purposes of this section, “local business” shall mean a business which meets all of the following criteria: 1. Has had a fixed office or distribution point located in and having a street address within St. Lucie, Indian River or Martin County for at least one year immediately prior to the issuance of the request for competitive bids or request for proposals by the county. The fixed office or distribution point must be staffed. Post office boxes are not verifiable and shall not be used for the purpose of establishing a physical address; and 2. Holds any business license required by St. Lucie County; and is the principal offeror who is a single offeror; a business which is the prime contractor and not a subcontractor; or a partner or joint venturer submitting an offer in conjunction with other businesses. 4827-8502-6085.1 49409/0002 VM vm 23 b. Certification. Any vendor claiming to be a local business as defined above shall so certify in writing to the Purchasing Division. The certification shall provide all necessary information to meet the requirements of the definition of local business above. The purchasing agent shall not be required to verify the accuracy of any such certifications, and shall have the sole discretion to determine if a vendor meets the definition of a “local business.” c. The bidder/proposer and all lower tiered subcontractors under the bidder/proposer must properly classify employees as employees rather than independent contractors and treat them accordingly for purposes of workers’ compensation insurance coverage, unemployment taxes, social security taxes and income tax withholding. d. “Non-local business” means a bidder which is not a local business. e. Waiver of the application of local preference. The application of Local Preference to a purchase or contract for which the Board is the awarding authority may be waived upon approval of the Board. f. Comparison of qualifications. The preferences established herein in no way prohibit the right of the Board to compare quality of materials proposed for purchase and compare qualifications, character, responsibility and fitness of all persons, firms or corporations submitting bids. Further, the preferences established herein in no way prohibit the right of the Board from giving any further preference permitted by law instead of the preferences granted herein. g. Local Preference – Invitations to Bid Under any such applicable solicitation, bidders/proposers desiring to receive local preference will be invited and required to affirmatively state and provide documentation as set forth in the solicitation in support of their status as a local business. Any bidder who fails to submit sufficient documentation with their bid offer shall not be granted local preference consideration for the purposes of that specific contract award. Except where federal or state law, or any other funding source, mandates to the contrary, St. Lucie County and its agencies and instrumentalities, will give preference to local businesses in the following manner: 1. Competitive bid (local price match option). Each formal competitive bid solicitation (i.e. sealed bids) shall clearly identify how the price order of the bids received will be evaluated and determined. When a qualified and responsive, non-local business submits the lowest price bid, and the bid submitted by one or more qualified and responsive local businesses is within 5% of the price submitted by the non-local business, then the local business with the apparent lowest bid offer (i.e.; the lowest local bidder) shall have the opportunity to submit an offer to match the price(s) offered by the overall lowest, qualified and responsive non-local bidder. 2. In such instances, staff shall first verify if the lowest non-local bidder and the lowest local bidder are in fact qualified and responsive bidders. Next, the Purchasing Division shall determine if the lowest local bidder meets the requirements of Section 287.087, Florida Statutes. If the lowest local bidder meets the requirements of 287.087, Florida Statutes, the Purchasing Division shall invite the lowest local bidder in writing to submit a matching offer to the Purchasing Division which shall be submitted in writing to the Purchasing Division within 5 business days thereafter. 3. If the lowest local bidder submits a written offer that does not fully match the lowest bid from the lowest non-local bidder tendered previously, the next lowest fully qualified local bidder will be given the opportunity to match if they are within 5%. This cycle shall be repeated until there are no remaining local bidders within 5%, and then award shall be made to the non-local bidder. If the lowest local bidder does not respond, declines or is unable to match the lowest non-local bid price(s), then award will be made to the lowest overall qualified and responsive bidder. If the lowest local bidder does not meet the requirement of Section 287.087, Florida Statutes, and the 4827-8502-6085.1 49409/0002 VM vm 24 lowest non-local bidder does, the lowest local bidder will be disqualified and the next lowest local bidder will be considered if they are within 5%, award will be made to the bidder that meets the requirements of the referenced state law. In the event a local bidder is awarded a contract pursuant to this section, all requests for change orders increasing the cost of the project must be approved by the Board. h. Local Preference – Requests for Proposals (RFP) In purchasing of, or letting of contracts for procurement of, personal property, materials, contractual services, and construction of improvements to real property or existing structures for which a request for proposals is developed with evaluation criteria, a local preference of the total score may be assigned for a local preference, as follows: 1. Local businesses which meet all of the criteria for a local business as set forth in this article shall be given a preference in the amount of five percent of the total score of the local business. 2. Based upon analysis of the marketplace for each project, staff shall make a recommendation for or against inclusion of a local preference in the criteria for consideration by the Board as a part of the pre-publication process for each request for proposal or bid. i. Notice. Both bid documents and request for proposal documents shall include notice to vendors of the local preference policy. j. Reciprocity. In the event any other Florida county or municipality (“local government”) deemed appropriate by the Board, extends preferences to local businesses, St. Lucie County may enter into an interlocal agreement with such local government wherein the preferences of this section may be extended and made available to vendors that have a valid occupational license issued by that specific local government to do business in that local government that authorizes the vendor to provide the commodities and services to be purchased, and a physical business address located within the limits of that local government. Post Office Boxes are not verifiable and shall not be used for the purpose of establishing said physical address. Vendors must also be authorized to do business in St. Lucie County. Vendors shall affirm in writing their compliance with the foregoing at the time of submitting their bid to be eligible for consideration as a “local business” under this section. In no event shall the amount of the preference accorded other local government firms exceed the amount of preference that such local government extends to St. Lucie County firms competing for its contracts. k. Limitations. 1. The provisions of this policy shall apply only to procurements which are above the formal bid threshold as set forth in the St. Lucie County Purchasing Policies Manual. 2. The provisions of this policy shall not apply where prohibited by federal or Florida law or where prohibited under the conditions of any grant. 3. The provisions of this policy shall not apply to any purchase exempted from the provisions of the St. Lucie County Purchasing Policies Manual. 4. The provisions of this policy shall not apply to contracts made under the Consultants Competitive Negotiation Act (CCNA), Section 287.055, Florida Statutes. 5. The provisions of this policy shall not be applied to any procurement where the local nature of a business has been addressed through the scoring criteria. 5.4 PUBLIC ENTITY CRIMES a. Pursuant to Section 287.133, Florida Statutes, the Board shall not accept any bid from, award any contract to, or transact any business in excess of $25,000 with any person or affiliate on the Convicted 4827-8502-6085.1 49409/0002 VM vm 25 Vendor List kept by the State of Florida Department of General Services for a period of thirty-six (36) months from the date that person or affiliate was placed on the Convicted Vendor List that unless that person or affiliate has been removed from the list pursuant to Section 287.133(3)(f), Florida Statutes. b. All Invitations to Bid, Requests for Proposals and Requests for Qualifications shall include provisions regarding public entity crimes in compliance with Section 287.133, Florida Statutes, as it may be amended, and as provided by the County Attorney. c. In the event that the Board was transacting business with a person at the time of the commission of a Public Entity Crime which resulted in that person being placed on the Convicted Vendor List, the Board shall not accept any bid from, award any contract to, or transact any business with any other person which under the same, or substantially the same, control as the person whose name appears on the Convicted Vendor List so long as that person's name appears on the Convicted Vendor List. d. For the purposes of this section, the following definitions shall apply: 1. “Affiliate” means a predecessor or successor of a person convicted of a Public Entity Crime; or, an Entity under the control of any natural person who is active in the management of the Entity and who has been convicted of a Public Entity Crime. The term "Affiliate" includes those officers, directors, executives, partners, shareholders, employees, members and agents who are active in the management of an affiliate. The ownership by one person of shares constituting a controlling interest in another person, or a pooling of equipment or income among persons when not for fair market value under an arm's length agreement, shall be a prima facie case that one person controls another person. A person who knowingly enters into a joint venture with a person who has been convicted of a Public Entity Crime in Florida during the preceding thirty-six (36) months shall be considered an Affiliate. 2. "Convicted" or "Conviction" means a finding of guilt or a conviction of a Public Entity Crime, with or without an adjudication of guilt, in any Federal or State Trial Court of Record relating to charges brought by indictment or information after July 1, 1989, as a result of a jury verdict, non-jury trial, or entry of a plea of guilty or nolo contendere. 3. "Convicted Vendor List" means the list required to be kept by the State of Florida Department of Management Services. 4. "Person" means any Natural Person or any Entity organized under the laws of any state or of the United States with the legal power to enter into a binding contract and which bids or applies to bid on contracts let by the Board of County Commissioners or which otherwise transacts or applies to transact business with the Board of County Commissioners. The term "Person" includes those officers, directors, executives, partners, shareholders, employees, members, and agents who are active in management of an Entity. 5. "Public Entity" means the State of Florida, any of its departments or agencies, or any political subdivision. 6. "Public Entity Crime" means a violation of any state or federal law by a person with respect to and directly related to the transaction of business with any Public Entity or with an agency or political subdivision of any other state or with the United States, including, but not limited to, any bid, proposal, reply or contract for goods or services, any lease for real property, or any contract for the construction or repair of a public building or public work, to be provided to any Public Entity or an agency or political subdivision of any other state or of the United States and involving antitrust, fraud, theft, bribery, collusion, racketeering, conspiracy, or material misrepresentation. e. Each Vendor shall be required to comply with the requirements of Section 287.133 Florida Statutes. 4827-8502-6085.1 49409/0002 VM vm 26 f. The following statement, as it may be amended by the County Attorney, shall appear in all bid specifications and Requests for Proposals: PUBLIC ENTITY CRIMES: A person or affiliate who has been placed on the convicted vendor list following a conviction for a public entity crime may not submit a bid, proposal or reply on a contract to provide any goods or services to the County, may not submit a bid, proposal, or reply on a contract with the County 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 the County, may not be awarded or perform work as a contractor, supplier, subcontractor, or consultant under a contract with the County, and may not transact business with the County in excess of $25,000 for a period of 36 months from the date of being placed on the convicted vendor list. The County will not intentionally award publicly-funded contracts to any contractor who knowingly employs unauthorized alien workers, constituting a violation of the employment provisions contained in 8 U.S.C. Section 1324a (Section 274A(e) of the Immigration and Nationality Act (“INA”)). The County shall consider the employment by any contractor of unauthorized aliens a violation of Section 274A(e) of the INA. Such violation by the Recipient of the employment provisions contained in Section 274A(e) of the INA shall be grounds for unilateral cancellation of the Agreement by the County. 5.5 PIGGYBACKING: PURCHASE OF GOODS, EQUIPMENT, AND CONTRACTUAL SERVICES FROM OTHER GOVERNMENTAL BIDS a. In lieu of informal or formal quotations, or issuance of an Invitation to Bid, the County may piggyback off of contracts of other governments and agencies to procure goods and services if the following conditions are present: 1. The bid documents and selection procedures used by the other government or agency are consistent with the County’s purchasing regulations; and 2. The vendor is willing to sign a County contract form (if applicable) as prepared by the County Attorney’s Office; and 3. The vendor is willing to offer to the County the same unit prices used in the original contract/bid; and 4. The unit prices in the original contract(s) include every item that the County intends to purchase from the vendor. b. Piggybacking may not be used for the following types of agreements, unless first approved by the County Administrator: 1. Construction services 2. Professional services contracts 3. Any good or service where the County would utilize a Request for Proposals or a Request for Qualifications. c. The County allows other governmental entities to piggyback off of its contracts. d. Approval of a bid waiver is not required to piggyback off contracts which meet the requirements of this section. e. Procedure – Exempt Purchases: a. For such exempt purchases described in Section 5.2, except for items b and d, the requesting Department will prepare a requisition form and submit it to the Purchasing Division. 4827-8502-6085.1 49409/0002 VM vm 27 b. General Purchasing Procedures of this manual governs the preparation and submission of the requisition form. c. Section 6.1 of this Manual governs the authorization of such forms. d. After receipt and review, the Purchasing Division will complete the purchase requested for the selected vendor. Procedure – Piggybacking Piggybacking of other government entities bids and/or contracts requires the recommendation of OMB Director. a. The Requesting Department must provide a copy of the bid or contract to be piggybacked to the Purchasing Division before requesting recommendation from the OMB Director. b. The Purchasing Division will review bid or contract to make sure that the required criteria are met. SECTION 6 – AUTHORIZATION LIMITS 6.1 SIGNATURE AUTHORITY The signature authority for purchases of usual and ordinary goods and services, including but not limited to, requisitions, purchase orders, work authorizations, contracts and contract amendments, is listed below. Signature authority for work authorization amendments and change orders is indicated in Sections 17.2 and 18.1, respectively. With approval of the County Administrator, the signature authority may be delegated in writing on a temporary basis due to the absence of the authorized employee or a vacancy in the position or such other situations as necessary to ensure continuity of County operations. As determined by the County Administrator, purchase of goods and services that are not typical of or necessary for County operations and management and/or were not approved in the budget may require Board approval. a. $500 or less – any authorized employee approved by the Department Director or County Administrator. b. $5,000 or less – Division Manager or other Manager approved by the County Administrator c. $15,000 or less – Department Director; the County Administrator may authorize up to $20,000 for specific Department Directors. d. $25,000 or less – Assistant County Administrator e. $50,000 or less – County Administrator f. Contracts for more than $50,000 will be presented to the Board for approval and executed by the Chair of the Board or the Vice-Chair in the Chair’s absence. All contracts executed by the Board must be attested to by the Clerk of the Board or a Deputy Clerk as determined by the Clerk. 6.2 EXCEPTIONS a. The purchase of or payment for goods and services which have been specifically approved by the Board in the Department/Division budget or through an agenda item are not subject to signature 4827-8502-6085.1 49409/0002 VM vm 28 authorization requirements. Procedures will be established by the County Administrator which ensure these transactions are processed in accordance with the Board approval. The procedures shall require the user Department Director and the OMB Director or designee to review and approve the purchase or payment documents. b. Payments for utility bills, including electric, water, sewer, phone, internet and related services and purchasing card statements are exempt from authorization limits and shall be processed in accordance with procedures established by the County Administrator. The procedures shall require Department Directors to review and approve payment of these bills. c. The Board or the County Administrator (up to $50,000) may increase the signing authority of a director or other employee for purposes of a specific program or purposes. Such increase shall be approved in writing and specify the limitations of the signing authority. Procedures – Signature Authority a. To authorize a higher signature limit for an employee, the Director must complete a Signature Authorization Form and submit to the Purchasing Division. b. The Purchasing Division and Finance Department will keep all approved Signature Authorization Forms on file. Procedures – Exceptions a. If the BOCC approved the purchase, the request should be sent directly from the requesting department to Purchasing, no matter the amount. The request must indicate date of BOCC approval, item and contract number, as applicable. b. Purchasing must confirm that the request is consistent with what the BOCC approved. c. Payments for utility bills shall be approved by the Dept. Director and forwarded to Finance for payment. d. All Interlocal disbursements must be signed by the County Administrator regardless of amount. SECTION 7 - PURCHASES OF $50,000 OR LESS – FORMAL AND INFORMAL QUOTES 7.1 QUOTATION THRESHOLDS a. Purchases of $5,000 or less are exempt from Section 7 policies. b. Purchases of goods or services over $5000 and up to and including $15,000 normally will be acquired through informal quotations. c. Purchases of goods or services over $15,000 up to and including $50,000 normally will be acquired through formal quotations. d. If there is a sole source for an item $50,000 or less, the requirement for formal/informal quotations may be waived by the County Administrator or designee based upon written justification. e. Competition is facilitated by utilizing a rotating schedule of vendors and obtaining at least three quotes. As often as feasible, local vendors should be utilized. The County Administrator or designee shall maintain an updated list of local vendors and the goods and services they provide. 4827-8502-6085.1 49409/0002 VM vm 29 f. Utmost care must be taken to insure that vendors are given exactly the same information and that prices are not disclosed from one vendor to another. 7.2 INFORMAL QUOTATIONS a. Informal quotations are used for purchases of items or services more than $5,000 and up to and including $15,000 and may be obtained by telephone, in person or in writing. A rotating schedule of vendors should be utilized per 7.1(e). b. The most responsive, responsible bidder should be selected. For purposes of this section, the most responsive, responsible bidder shall be the bidder whose proposal is determined to be most advantageous to the County taking into consideration factors identified in the quote, such as 1. Price; 2. Capability, integrity and reliability of the bidder to assure good faith performance; 3. Environmentally preferred purchasing; 4. Completion and/or delivery date; and/or 5. Other relevant evaluation factors. 7.3 FORMAL QUOTATIONS Formal quotations shall be used for purchases of items or services over $15,000 and up to and including $50,000 or when bidding requirements have been waived or exempted for items or services over $50,000 as provided in this Manual. a. Formal quotations will be solicited in writing with proper specifications from at least three (3) vendors if feasible. Requests for formal quotations are not required to be advertised. A rotating schedule of vendors should be utilized per Section 7.1(e). b. If the specifications for a formal quotation are changed after the original notice to vendors, the requesting Department shall issue an addendum. c. The most responsive, responsible bidder should be selected. For purposes of this section, the most responsive, responsible bidder shall be the bidder whose proposal is determined to be most advantageous to the County taking into consideration factors identified in the quote, such as 1. Price; 2. Capability, integrity and reliability of the bidder to assure good faith performance; 3. Environmentally preferred purchasing; 4. Completion and/or delivery date; and 5. Other relevant evaluation factors. d. For purchases over $50,000, when bidding requirements have been waived and three formal quotations have been received, the County Administrator shall make the determination of the most responsive, responsible bidder. Procedure - Purchases of $50,000 or Less– Formal and Informal Quotes a. To acquire items or services of $50,000.00 or less, the Department will be responsible for obtaining at least three written quotes. Whenever possible, vendors that are registered in the “Library of Vendors” database maintained by Purchasing should be contacted for quotes on a rotating basis. 4827-8502-6085.1 49409/0002 VM vm 30 b. The Purchasing Division must receive copies of the quotes along with a signed internal requisition. c. If there is a sole source for an item or service of $50,000 or less, the requirement for informal/formal quotations may be waived by the Director of Management and Budget and the County Administrator. The Department Director shall submit the Sole Source Justification Form to the OMB Director based on one or more of the waivers listed below. Disputes between the OMB Director and the Department Director shall be resolved by the County Administrator. If approved, the Department Director shall include the approval documentation with the purchase order. d. The waiver of informal/formal quotes may be requested based on one of the following: 1. If an emergency exists which would result in a direct loss to the County or imminent damage to public safety or health by requiring informal/formal quotes. In cases of emergency, the County Administrator may approve the waiver. 2. If there is only a single source for a purchase. 3. If used items are available which would result in a substantial savings over purchase of new items. 4. If the request is for a service contract for the maintenance, repair, or servicing of existing facilities or equipment owned or leased by the County. 5. If quotations indicate that the item may be purchased for a price, which is less than the price if purchased through State Contract as provided by Chapter 287 Florida Statutes. , 6. If the product is available from the State Department of Corrections Non-Profit Corporation for Correctional Work Programs organized under Chapter 946, Florida Statutes. 7. If the County Administrator determines that it is in the best interests of the County to do so. SECTION 8 - PURCHASES GREATER THAN $50,000 – INVITATIONS TO BID Except as provided elsewhere in the Manual, purchase of goods and services for more than $50,000 shall be acquired through Invitations to Bid (ITB) which requires submission of formal sealed bids or under a State Contract, or Federal General Services Administration Contract pursuant to Chapter 287, Florida Statutes. Advertisements for ITBs must be approved by the County Administrator or designee. 8.1 BID WAIVER Certain purchases for more than $50,000 shall be acquired through quotations if there is a waiver of the requirement for formal sealed bids by the Board of County Commissioners. a. The waiver of formal sealed bids may be requested based on one of the following: 1. If an emergency exists which would result in a direct loss to the County or imminent damage to public property, safety or health by requiring competitive bids due to the time loss inherent in the bidding procedures, or there is an interruption of an essential governmental service. In cases of emergency, the County Administrator may approve the bid waiver and submit the waiver request to the Board at the next scheduled meeting or a special meeting. 4827-8502-6085.1 49409/0002 VM vm 31 2. If there is only a single source for the goods or service. 3. If used items are available that would provide substantial savings over purchase of new items. 4. If the request is for a service contract for the maintenance, repair, or servicing of existing facilities or equipment owned or leased by the County. 5. If quotations indicate that the item may be purchased for a price which is less than the price if purchased through State Contract as provided by Chapter 287, Florida Statutes. 6. If the product is available from the State Department of Corrections Nonprofit Corporation for Correctional Work Programs organized under Chapter 946, Florida Statutes, as it may be amended. 7. If no bids or only one bid is received in response to a request for formal sealed bids. 8. Direct or competitive negotiations for construction services authorized by Section 255.20 of the Florida Statutes, and including negotiations for Construction Management Services authorized by Section 255.103 and design-build services authorized by 287.055 of the Florida Statutes. 9. If the funding source for the project or contract will be diminished or lost because the time required to competitively award the project or contract after the funds become available exceeds the time within which the funds must be spent or project completed. 10. If the Board determines that it is in the best interests of the County to do so. b. All bid waiver requests for construction projects must be approved by the County Attorney’s office to ensure compliance with FS 255.20 prior to scheduling the public hearing. No bid waiver shall be required for procurements using the prequalification or shortlisting methods, set forth in Section 11, followed by sealed bids by the prequalified or shortlisted firms. 8.2 INVITATIONS TO BID Invitations to Bid (ITB) are formal sealed bids and will normally be used for purchases of goods and services more than $50,000. a. Except as stated herein, St. Lucie County follows the general criteria set forth in Section 287.057, Florida Statutes, for the acquisition of commodities (i.e., goods) and contractual services (i.e., construction contracts, maintenance and repair contracts). b. A public announcement of the ITB shall be made through a local newspaper for one day (required) and other approved media, including an agreement with an outside provider of such services. The announcement shall include a description of the project and/or goods required, and where interested bidders may apply for consideration. All bid information will be available on the internet. c. The ITB for construction contracts must include requirements for complying with the Apprenticeship Program requirements as provided in Section 18. d. As allowed by law, the ITB must include Local Preference criteria provided in Section 5 unless waived by the Board. e. If the specifications for an ITB are changed after the original advertising and mailing to vendors, the addendum procedure will be implemented. The addendum shall clearly point out any addition or change to the specifications. All prospective bidders who have received specifications are to be notified of the addendum by email or fax. The vendor is responsible to obtain and incorporate all addenda into their bid. No addendum shall be issued five (5) days prior to a bid opening without extending the bid opening date unless the change or clarification does not materially affect the bid. f. The bid shall be considered responsive if it answers all required information, contains any and all required bonds, and is duly signed by an authorized officer of the entity on behalf of the entity. Only complete bids shall be considered. Any incomplete bid shall be deemed as non-responsive. 4827-8502-6085.1 49409/0002 VM vm 32 g. The Board reserves the right to: 1. Waive any informalities or minor irregularities; 2. Reject any and all bids which are incomplete, conditional, obscure, or which contain additions not allowed for in the bid; 3. Cancel, accept or reject any and all bids in whole or in part with or without cause; 4. Disqualify any and all bidders if there is any reason to believe that collusion or fraud exists among bidders; or 5. Accept the bid which best serves the County. h. The bids will be received until the prescribed time and will be opened immediately thereafter. The following minimum criteria shall be considered in order of importance in evaluating bids. 1. Price; 2. Compliance with ITB specifications, including delivery date, materials, processes, etc. Should the low bid be responsive but deviate from the specifications contained in the ITB, such deviation shall be reviewed for suitability to achieve the County's purpose; and 3. Compliance with other Board purchasing policies such as the Local Preference policy and the Apprenticeship policy as applicable. j. The County Administrator or designee shall make a recommendation to the Board regarding the award of the ITB. Procedures - Purchases greater than $50,000 – Invitations to Bid a. To acquire items or contracted services greater than $50,000, a Department Director shall prepare a memorandum requesting the purchase and submit it to the Purchasing Division along with all necessary information including specifications, plans and budget. The memorandum must be signed by the Department Director. b. After receipt and review for completeness, the Purchasing Division will prepare a request for ITB and follow the procedures set forth in Section 8.2 of this manual. c. After a vendor has been selected by the Board of County Commissioners pursuant to Section 8 of this manual, the Requesting Department will prepare a requisition form for the purchase and submit it to the Purchasing Division. d. After receipt and review of the form, the Purchasing Division will complete the purchase award process. Procedures - Bid Waivers a. For bid waivers on items greater than $50,000, a Department Director shall prepare and submit to the Management & Budget Director a Sole Source Justification Form requesting the waiver, stating the reason for such waiver and detailing the facts, circumstances, and conditions for the waiver. The memorandum must be signed by the Department Director. b. After receipt and review of the justification form, the Management & Budget Director will recommend either to approve or to disapprove the request for a bid waiver. c. If approval is recommended, the justification form will be submitted to the County Administrator for approval. d. If approval is recommended by the County Administrator, the requesting department shall draft an agenda request to the Board of County Commissioners. The agenda item must 4827-8502-6085.1 49409/0002 VM vm 33 include the justification form with the concurrence of the Director of Management & Budget and the County Administrator. e. Any dispute between the Management & Budget Director and the Requesting Department shall be resolved by the County Administrator. f. If the bid waiver request is approved by a majority of Board of County Commissioners present at a regular or special meeting, the requesting department may proceed to acquire the requested items or services. If rejected, the item shall be advertised for sealed bids. SECTION 9 - REQUEST FOR PROPOSALS A Request for Proposal (RFP) is a purchasing method that is utilized when a variety of relevant factors in addition to price will be evaluated. Advertisements for RFPs must be approved by the County Administrator or designee. 9.1 RFP CONTENTS a. A public announcement of the RFP shall be made through a local newspaper for one day (required), and other approved media and shall include a description of the project, services and/or goods required, and where interested bidders may apply for consideration. b. The RFP shall include, but is not limited to, the following: 1. Description of the scope of services requested. The description shall be sufficient to assure that all proposers have the same understanding of the requested services, material or product specifications, time schedule and expectations. 2. Request for specific and general information on how the proposer will proceed with the project including written documentation of the proposer’s expertise and ability to perform the requested service. 3. Requirements for submission of concept plans or approaches, if applicable. 4. The criteria upon which the proposal will be evaluated, including the Local Preference criteria as provided in Section 5 and the Apprenticeship requirement as provided in Section 18, as applicable. 5. Specific instructions on how, when and where the proposals shall be submitted, including the date the proposal will be opened. 6. Requirement that the proposal be submitted as a sealed package and contain all required information, documents and signatures. 7. Statement that the Board reserves the right to reject all irregular proposals or to reject all proposals if it is deemed by the Board to be in the best interest of the County. 9.2 RFP AWARD a. The County Administrator or designee shall approve the appointment of a selection committee which shall not be composed of more than 50% of members from the user department unless approved by the County Administrator in advance. If multiple departments will be utilizing the contract, no single department shall compose more than 50% of the committee members. The Board may exercise its option to appoint itself to serve as the selection committee. b. The County Administrator or designee shall make a recommendation to the Board regarding the award of the RFP if the cost is more than $50,000. 4827-8502-6085.1 49409/0002 VM vm 34 c. The Board reserves the right to: 1. Waive any informalities or minor irregularities; 2. Reject any and all proposals which are incomplete, conditional, obscure, or which contain additions not allowed for in the proposal; 3. Cancel, accept or reject any and all proposals in whole or in part with or without cause; 4. Disqualify any and all proposers if there is any reason to believe that collusion or fraud exists among proposers; or 5. Accept the proposal which best serves the County. Procedure – Request for Proposal: a. The department shall identify the desired purchase in a memo to the Purchasing Division. All specifications, statement of work/services, award criteria, budget information and relevant proposal information shall be included. b. Purchasing will assist the department develop the specifications, statement of work/services and award criteria. c. Purchasing shall review the information and, if complete put the procurement request into the proper form and complete the legal advertisement and RFP/contractual documents. d. Standard legal documents are developed and maintained by the County Attorney. The unaltered approved standard legal documents may be used without additional legal review. A Department shall not modify the approved standard legal documents contract without the approval of the County Attorney’s Office. e. Purchasing shall provide public notice in the form of an advertisement in a newspaper of general circulation in the county. f. Departments will propose proposal opening, bid evaluation, award and conference dates (if required) by memorandum. Purchasing will make every effort to meet the requested dates. g. Purchasing and the department shall ensure that the proposal is evaluated based on the requirements set forth in the Request for Proposals. No criteria may be used for evaluation that has not been set forth in the Request for Proposal. Proposals shall be publicly opened in the presence of one or more witnesses. Request for Proposal – Award: a. Once evaluated by a selection committee, staff shall make a recommendation of award to the responsive and qualified proposer whose proposal is determined to be the most advantageous to the County. Evaluation of proposals shall be based on the award criteria as set forth in the request for proposals. b. If a selection committee shall meet, a meeting notice will be published at least three (3) calendar days prior to the meeting date. Such notice will be posted on the Media Division and Purchasing Division bulletin boards. 4827-8502-6085.1 49409/0002 VM vm 35 SECTION 10 – REQUEST FOR QUALIFICATIONS A Request for Qualifications (RFQ) is a purchasing process utilized to select firms or businesses to provide goods, equipment, or services based on qualifications. This process is also required for selection of professional services specified in the Consultants Competitive Negotiation Act (CCNA), Section 287.055, Florida Statutes. Advertisements for RFQs must be approved by the County Administrator or designee. 10.1 RFQ CONTENT a. A public announcement of the RFQ shall be made through a local newspaper for one day (required) and other approved media and shall include a description of the project, goods and/or services required, and where interested bidders may apply for consideration. b. The RFQ shall include, but is not limited to: 1. A description of the scope of services requested. The description shall be sufficient to assure that all proposers have the same understanding of the requested services, time schedule and expectations. 2. A request for specific and general information on how the proposer is qualified to perform the requested services, including examples of prior work and references. 3. Requirements for submission of concept plans or approaches, if applicable. 4. Criteria upon which the proposal will be evaluated, including the Local Preference criteria as provided in Section 5, as applicable. 5. Specific instructions on how, when, and where the proposals shall be submitted including the date the proposal will be opened. 6. Requirement that the proposal be submitted as a sealed package and include all required information, documents and signatures. 7. Statement that the Board reserves the right to reject all irregular proposals or to reject all proposals if it is deemed by the Board to be in the best interest of the County. 10.2 RFQ AWARD a. Responses to RFQs shall be evaluated by a selection committee appointed by the County Administrator or designee. The selection committee shall not be composed of more than 50% of members from the user department unless approved by the County Administrator in advance. If multiple departments will be utilizing the contract, no single department shall compose more than 50% of the committee members. The Board may exercise its option to appoint itself to serve as the selection committee. b. The County Administrator or designee shall make a recommendation to the Board regarding the award of the RFQ if the cost is more than $50,000. Upon the selection of a short-list of qualified firms approved by the Board, and unless otherwise directed by the Board, staff may: 1. Enter into scope of work and fee negotiations with the firm or firms determined to be qualified; or 2. Issue Invitations to Bid or Requests for Proposals to short-listed firms. c. The Board reserves the right to: 1. Waive any informalities or minor irregularities; 2. Reject any and all proposals which are incomplete, conditional, obscure, or which contain additions not allowed for in the proposal; 3. Cancel, accept or reject any and all proposals in whole or in part with or without cause; 4. Disqualify any and all proposers if there is any reason to believe that collusion or fraud exists among proposers; and/or 5. Accept the proposal which best serves the County. 4827-8502-6085.1 49409/0002 VM vm 36 d. Professional services regulated by CCNA, including Design-Build, may be acquired through RFQs provided that the requirements of Section 13 of this Manual are met. Procedure – Request for Qualifications – (CCNA): The following criteria will be established prior to initiation of a request for qualifications which falls within the jurisdiction of the CCNA: a. The requesting department shall forward a memo to the Purchasing Division requesting solicitations for a specific Professional Services discipline. The memo shall contain the following information: 1. Identification of the specific discipline required; 2. Name of the departmental project manager; 3. Scope of services required for the project; 4. Budget information and accounts. b. The Purchasing Division will prepare the request for qualifications. c. The following procedure shall be followed in obtaining Professional Services regulated by Section 287.055 Florida Statutes: 1. The Purchasing Division shall provide public notice in a newspaper of general circulation in the County describing the services required, location, date, time of proposal opening. 2. Submittals shall be received in the Purchasing Division. Submittals received after the advertised time and date will not be considered. All submittals shall be forwarded to the selection committee members by the Purchasing Division. 3. The Selection Committee will review all consultant submittals and shortlist those consultant firms ranked highest on the selection criteria. The Purchasing Division shall prepare an agenda for the Board to approve the shortlisted firms and hold oral presentations and/or negotiate fees. 4. The Purchasing Division shall notify all shortlisted firms of date and times for oral presentations. 5. After oral presentations are held the Purchasing Division shall notify the firms who are not selected for contract of the County’s decision. Procedure – Request for Qualifications (Non-CCNA): The following criteria will be established prior to initiation of a request for qualifications (Non- CCNA): a. The requesting department shall forward a memo to the Purchasing Division requesting solicitation for the scope of services needed. The memo shall contain the following information: 1. Name of the departmental project manager; 4827-8502-6085.1 49409/0002 VM vm 37 2. Scope of services required for the project; 3. Budget information and accounts. d. The Purchasing Division will prepare the request for qualifications. 1. The Purchasing Division shall provide public notice in a newspaper of general circulation in the County describing the services required, location, date, time of proposal opening. 2. Submittals shall be received in the Purchasing Division. Submittals received after the advertised time and date will not be considered. All submittals shall be forwarded to the selection committee members by the Purchasing Division. 3. The Selection Committee will review all submittals and shortlist the firms ranked highest on the selection criteria. The Purchasing Division shall prepare an agenda for the Board to approve the shortlisted firms and hold oral presentations (if applicable), or award to shortlisted firm(s) and/or negotiate fees. 4. The Purchasing Division shall notify all shortlisted firms of date and times for oral presentations, if required. 5. After oral presentations are held the Purchasing Division shall notify the firms who are not selected for contract of the County’s decision. SECTION 11 – SPECIALTY CONSTRUCTION PROCUREMENTS When determined by the County Administrator to be in the best interest of the County, the following specialty construction procurements allowed by Florida law may be utilized: 1. Prequalification and Shortlisting 2. Continuing Contracts for Construction Projects 3. Design-Build 4. Construction Management 11.1 PREQUALIFICATION AND SHORTLISTING a. The County may utilize a two-step process in selecting contractors for standard design-bid-build delivery, using either prequalification or shortlisting as an initial step to select a pool of bidding or proposing contractors that are, in the County's sole discretion, appropriately qualified to perform the proposed work. 1. Pre-qualification is a method of procurement where prospective bidders or proposers are initially evaluated on a pass-fail basis to determine whether they possess the requisite Note qualifications necessary to perform the work. (: Projects involving the construction or improvements of bridges, roads, streets, highways or railways and services incidental thereto, at a cost exceeding $250,000, the County shall follow the special prequalification rules set forth in Section 255.20(1)(a) and (b) of the Florida Statutes). 2. Shortlisting is a method of procurement where prospective bidders or proposers are initially evaluated, comparatively, to determine which bidders or proposers are the most qualified, in the County's sole discretion, to perform the work. 4827-8502-6085.1 49409/0002 VM vm 38 b. The County shall follow the procedures set forth in Section 10 of this Policy Manual in issuing an RFQ to obtain Statements of Qualification from interested proposers. On receipt of Statements of Qualification, the County, through an appointed Selection Committee, shall evaluate the Statements as follows: 1. In the pre-qualification method, the Selection Committee shall render pass-fail determinations to arrive at a pool of contractors that meet all of the qualifications criteria set forth in the RFQ, and reject all contractors that fail to meet the qualifications criteria. 2. In the shortlisting method, the Selection Committee shall comparatively evaluate proposers, in accordance with the qualifications criteria set forth in the RFQ, to arrive at a pool of the most highly qualified contractors eligible to bid or propose on the work. 3. The Selection Committee may require presentations or interviews as part of the evaluation process. The Section Committee shall use best efforts to arrive at a shortlist or prequalification list of no less that three qualified contractors, if reasonably possible. 4. Only those contractors that are prequalified or shortlisting shall be issued bid or proposal documents and be permitted to bid or propose on the work. c. Following the initial step of constituting a prequalification list or shortlist of eligible contractors, the County shall initiate the next step in the procurement process and final award as follows: 1. The County may request sealed bids in accordance with the ITB procedure set forth in Section 8 of this Policy Manual, to make award to the lowest, responsive bidder; or 2. The County may request proposals in accordance with the RFP procedure set forth in Section 9 of this Policy Manual, where award shall be made to the most advantageous proposal based on the criteria and standards set forth in the proposal documents, which criteria may include price, schedules and technical or design aspects of the project, weighted as set forth in the proposal documents. 4827-8502-6085.1 49409/0002 VM vm 39 11.2 CONTINUING CONTRACTS FOR CONSTRUCTION PROJECTS a. Continuing contracts for construction projects (hereinafter “Continuing Contracts”) are contracts with a Contractor, as defined by Section 255.103 of the Florida Statutes, for work during a defined period on construction projects described by type rather than specifically identified (“Continuing Contractor”). Continuing Contracts shall involve a base form contract for a period no greater than five (5) years, generally outlining the types of work or projects. Specific work awarded under a Continuing Contract shall be by work authorization or contract addendum. b. The estimated value of any construction work awarded by addendum or work authorization shall not exceed $2 million, unless other exceptions under Section 255.20 of the Florida Statutes apply. The County shall competitively negotiate each such award for a contract sum that it determines is fair, competitive and reasonable. If the County selects a pool of Continuing Contractors, it may bid each work authorization or addendum among the pool, with an award being made to the lowest, responsive bidder. c. The County shall procure Continuing Contractors in accordance with Section 255.103 and 287.055 of the Florida Statutes, and the general Request for Qualifications Procedure set forth in Section 10 of this Policy Manual. d. Following the submission of Statements of Qualification, a Selection Committee appointed by the County Administrator shall shortlist no fewer than three (3) proposers, if reasonably possible, based on the following minimum criteria (“CCNA Factors”): 1. Ability of construction personnel: 2. Whether a firm is a certified minority business enterprise; 3. Past performance (on County projects or comparable projects for others, and may include an assessment of claims history); 4. Experience; 5. Willingness to meet time and budget requirements; 6. Location; 7. Recent, current and projected workloads; and 8. The volume of work previously awarded to proposer, with the object of effecting an equitable distribution of contracts among qualified firms, provided such distribution does not violate the principle of selecting the most highly qualified. The Selection Committee shall conduct discussions with, and may require presentations by, the shortlisted proposers. Following discussions and presentations, the Selection Committee shall select in order of preference (i.e., a ranking) no fewer than three (3) proposers, if reasonably possible, deemed to be the most highly qualified to provide the advertised services. 11.3 DESIGN-BUILD a. Design-Build is an integrated project delivery method where architectural, engineering and construction services are awarded to a Design-Build Firm under a single contract procured in 4827-8502-6085.1 49409/0002 VM vm 40 accordance with the requirements of the Consultants' Competitive Negotiation Act ("CCNA"), Section 287.055 of the Florida Statutes, and the requirements of this Policy Manual Section. b. A "Design-Build Firm", as defined by the CCNA, is a partnership, corporation, or other legal entity which: 1. Is certified under Florida Statutes 489.119 to engage in contracting through a certified or registered general contractor or a certified or registered building contractor as the qualifying agent; or 2. Is certified under the relevant provisions of Florida Statutes 471.023, 481.219, 481.319, to practice or offer to practice engineering, architecture, or landscape architecture, respectively. c. The County shall follow the Design-Build procedures in accordance with the CCNA to award Design-Build contracts, which include a qualifications-based selection procedure or a competitive proposal procedure, as set forth in Section 287.055 (9) of the Florida Statutes. The County Administrator will determine which procurement procedure will be used to award a Design-Build contract. 1. If the County elects to use a qualifications based selection process for Design- Build Firms, it shall follow the procedures set forth in Section 10 of this Policy Manual and CCNA Sections 287.055 (3) – (5). 2. If the County elects to use the competitive proposal process for the selection of Design-Build Firms, the County must comply with the minimum requirements of the CCNA, as follows: A. A Design Criteria Professional, selected in accordance with the requirements of the CCNA, will prepare and seal a Design Criteria Package in order to furnish sufficient information to allow Design-Build Firms to prepare a Bid or Proposal for the Project. The Design Criteria Professional and their sub-consultants will not be eligible to provide design services under any Design-Build Contract executed pursuant to the Design Criteria Package. 1) A “Design Criteria Professional” means a firm who holds a current certificate of registration under chapter 481 to practice architecture or landscape architecture or a firm who holds a current certificate as a registered engineer under chapter 471 to practice engineering and who is employed by or under contract to the agency for the providing of professional architect services, landscape architect services, or engineering services in connection with the preparation of the design criteria package. 2) A “Design Criteria Package” means concise, performance-oriented drawings or specifications of the public construction project. The purpose of the design criteria package is to furnish sufficient information to permit design-build firms to prepare a bid or a response to a request for proposal, or to permit an agency to enter into a negotiated design-build contract. The design criteria package must specify performance-based criteria for the public construction project, including the legal description of the site, 4827-8502-6085.1 49409/0002 VM vm 41 survey information concerning the site, interior space requirements, material quality standards, schematic layouts and conceptual design criteria of the project, cost or budget estimates, design and construction schedules, site development requirements, provisions for utilities, stormwater retention and disposal, and parking requirements applicable to the project. B. The Selection Committee shall initially qualify and shortlist no fewer than three Design-Build Firms, if reasonably possible, based on the qualifications, availability, and past work of the Design-Build Firms, including the partners or members thereof. The County may also specifically consider the Design-Build Firm’s past performance on County Projects, including whether the past Projects resulted in any litigation, whether the past Projects were completed on time, within budget, and without an unreasonable number or amount of claims and whether the Design-Build Firms timely paid its subcontractors and suppliers. The County may also consider whether: 1) The Design-Build Firms have breached any contract with the County or any other public agency; 2) Whether liquidated damages have ever been assessed against the Design-Build Firms; 3) Whether the Design-Build Firms properly participated in any required mediation or dispute review board procedures; and 4) The overall satisfaction with the Design-Build Firm’s compliance with the contract requirements. C. Only those Design-Build Firms shortlisted in accordance with the procedures set forth herein, shall be permitted to submit a bid or proposal for the Project. Before soliciting bids or proposals for the Project, the County will D. establish the criteria, procedures and standards by which all bids or proposals submitted by Design-Build Firms for the Project will be evaluated. These standards will include, but are not limited to, price, technical merit and design aspects, weighted for the proposed Project. Any bid or proposal submitted by a Design-Build Firm must meet the criteria specified in the Design Criteria Package. E. If the Design-Build evaluation is based on assignment of a “Numeric Score” based on a scoring of the evaluation criteria, the Selection Committee will determine the “Numeric Score” and recommend award to the qualified and responsive proposer with the lowest “adjusted score.” The adjusted score will typically be the total price divided by the total numeric score, as defined in the bid or proposal documents. 11.4 CONSTRUCTION MANAGEMENT a. Construction Management is a project delivery methodology whereby the County enters into a contract with a contractor to provide construction and pre-construction services for a project, including design and 4827-8502-6085.1 49409/0002 VM vm 42 constructability reviews, scheduling and estimating. Construction Management may be on the preferred method of "at risk" where the contractor holds the trade contracts (i.e., subcontracts), or "at agency" where the County holds the trade contracts and the Construction Management firm is responsible for coordinating, supervising and managing the construction project. Any "at risk" Construction Management contract should be on a Guaranteed Maximum Price basis; any "at agency" Construction Management contract should be on a lump sum basis. b. Construction Management firms may be procured on a qualifications basis or through competitive proposals. 1. If the County elects to use a qualifications based selection process for Construction Management firms, it shall follow the procedures set forth in Section 10 of this Policy Manual and the CCNA, Sections 287.055 (3) – (5). A. The qualifications criteria for evaluation shall include, but not be limited to, the following: 1) The experience of the CM and its professional personnel; 2) The CM's project approach for preconstruction and construction; 3) Whether the CM is a certified minority business enterprise (and/or the proposed level of certified minority and/or small business enterprise participation); 4) Past performance; 5) Experience; 6) Willingness to meet time and budget; 7) Location 8) Recent, current and projected workloads; and 9) The volume of work previously awarded to each CM, with the object of effecting an equitable distribution of contracts among qualified contractors, provided such distribution does not violate the principle of selection of the most highly qualified CM. B. The evaluation of past performance may include such factors as: 1) Whether past projects were completed on time, within budget, and without an unreasonable number or amount of claims; 2) Whether the CM timely paid its subcontractors, subconsultants and suppliers; 3) Whether the CM has breached any contract with the County or any other public agency, or has been termination for cause of convenience; 4) The County's overall satisfaction with the CM's current and past compliance with its contractual requirements. C. The Selection Committee shall evaluate Statements of Qualification submitted by interested Construction Management firms to arrive at a shortlist of the most highly qualified CMs based on the evaluation criteria set forth in the proposal documents and this Policy Manual. The Selection Committee shall require interviews, and may require public presentations, from each CM on the shortlist, and thereafter prepare a recommended ranking, in order of preference, of no fewer than three CMs (where reasonably possible), deemed to be the most highly qualified to perform the advertised services. D. The County shall thereafter negotiate a contract with the top ranked firm at compensation that the County determines is fair, competitive and reasonable. Should the County not reach a contract with the top ranked firm, it shall terminate negotiations, and then proceed in order of ranking until a contract is reached or the County elects to terminate the procurement. 2. If the County elects to use a competitive proposal selection process for Construction Management firms, the County shall follow a two-step process, commencing with a qualifications-based shortlist following the procedures outlined in Section 1(A) above. The County shall thereafter issue a Request for Proposal to the shortlisted CMs, setting forth the criteria and procedures by which all 4827-8502-6085.1 49409/0002 VM vm 43 proposals will be evaluated. These criteria may including but are not limited to, price components (such as preconstruction services fees, general conditions, profit/fee and insurance rates), schedule, technical design aspects, preconstruction services plan, project approach, and small and minority business participation goals. The basis of award, whether it be price-driven (i.e., bids) or based on scoring of all criteria, shall be set forth in the RFP. SECTION 12 - RESOLUTION OF SOLICITATION AND PROPOSED AWARD PROTESTS 12.1 RIGHT TO PROTEST Any actual or prospective bidder or offeror who believes he is aggrieved in connection with the solicitation or proposed award of a contract may file a written protest with the County Administrator or designee. The protest shall be submitted in writing within twenty-four (24) hours, not including Saturdays, Sundays or County closings, after such aggrieved person knows or should have known the facts giving rise to the alleged grievance. 12.2 RESOLUTION OF PROTESTS a. The County Administrator or designee shall consult with the County Attorney concerning any protest involving the solicitation or prospective award of a contract bid. Following consultation with the County Attorney, the County Administrator or designee shall attempt to resolve the protest. b. If the protest is not resolved by mutual agreement, a written decision on the protest shall be issued by the County Administrator after consultation with the County Attorney. Copies of the written decision will be mailed to the protesting vendor and any other vendor requesting a copy. The written decision shall: 1. State the reasons for the decision. 2. Inform the protesting vendor of his right to administrative review. c. The protesting vendor may appeal the decision of the County Administrator to the Board by filing a written petition of appeal with the County Administrator within 24 hours of the date of the decision, not including Saturdays, Sundays and County closings. d. The Board of County Commissioners shall review the petition at a public meeting within thirty (30) calendar days from the date of filing the appeal. The protesting vendor and the vendor who was recommended for award by the selection committee shall be provided reasonable notice of the time, date, and place of the public meeting by certified mail, return receipt requested, and invited to attend. e. Testimony at the public meeting shall be limited to ten (10) minutes per side, unless an extension of time is granted by the Board. Copies of the decision of the Board shall be distributed to the protesting vendor and any other party intervening. 12.3 STAY OF PROCUREMENT DURING PROTESTS In the event of a timely protest, the County shall not proceed further with the solicitation or award of the contract pending resolution of the protest or determination by the Board of County Commissioners that award of the contract must be made without further delay in order to protect the substantial interests of the County. SECTION 13 - PROFESSIONAL AND OTHER SERVICES 4827-8502-6085.1 49409/0002 VM vm 44 13.1 COMPETITIVE NEGOTIATIONS POLICY Because price differences may only be a minor consideration compared to the quality of the professional's work, professional services are exempted from the County's quotation, Invitation to Bid or Request for Proposal policies. Instead, professional services will be acquired through competitive negotiations. The Professional Services procedure described below also insures that the County complies with Section 287.055, Florida Statutes, known as the Consultant’s Competitive Negotiation Act (CCNA). 13.2 PROFESSIONAL SERVICES DEFINITION A Professional Service is assistance obtained in support of County operations from a consultant in a professional field. Services in the following fields are considered Professional Services: a. Medical Services - medicine, psychiatry, dental, hospital, and other health professionals. b. Legal Services - attorneys, including bond counsel, title insurance and services, and other legal professionals or experts. c. Financial Services - rating and underwriting, financial advisor, investment related or other financial services. d. Appraisal Services - real and personal property appraisers. e. Audit and Accounting Services - auditors and accountants. f. Consultants - Planning, Management or Scientific Consultants. g. Professional Services Regulated by the CCNA, as may be amended from time to time, including those services within the scope of the practice of architecture, professional engineering, landscape architecture, or registered surveying and mapping, as defined by the laws of the State of Florida, or those Professional Services performed by any architect, professional engineer, landscape architect, or registered surveyor or mapper in connection with his or her employment or practice. 13.3 AUTHORIZATION TO OBTAIN PROFESSIONAL SERVICES a. Legal Services - All requests for outside legal services shall be approved by the County Attorney within the amount budgeted for professional legal services by the Board. b. Auditor Services - All requests for Auditor Services will be referred to the Auditor Selection Committee established pursuant to Section 11.45, Florida Statutes, and as amended from time to time. Negotiations for such services shall be conducted as described therein. c. Financial Services - All requests for financial services to include rating and underwriting, financial advisor, investment related and other financial services shall be approved by the Board. d. Authorization for obtaining the services listed below shall be approved by the County Administrator. The County Administrator is authorized to execute all professional services contracts listed below, for a total fee of $50,000 or less. When the total fee is expected to exceed $50,000, the County Administrator may require the user Department requesting the services to prepare an RFQ, RFP, utilize an existing continuing contract or seek Board approval of the recommended vendor(s). 1. Appraisal Services - real and personal property appraisers 2. Consultants - Planning, Management or Scientific Consultants 4827-8502-6085.1 49409/0002 VM vm 45 3. Medical Services – medicine, psychiatry, dental, hospital, and other health professionals. e. Authorization for requests for all CCNA professional services must be reviewed and approved by the County Administrator. Selection of firms to provide these services must follow Section 287.055, Florida Statutes, known as the Consultant’s Competitive Negotiation Act (CCNA) and selection policy listed below. 13.4 CCNA PROFESSIONAL SERVICES CCNA professional services shall be selected through the Request for Qualifications process. Per Florida Statutes, a continuing contract work authorization for CCNA professional services may be utilized if the total fee for a planning or study activity is $200,000 or less or if the basic construction costs are not expected to exceed $2,000,000. a. The RFQ shall be consistent with the requirements in Section 10 of this Manual. b. In addition, a statement that the proposer shall not include proposed compensation as part of the proposal or that proposed compensation shall be provided in a separate sealed package. Such proposals for compensation will only be considered during competitive negotiations. 13.5 COMMUNITY DEVELOPMENT BLOCK GRANT (“CDBG”) PROFESSIONAL SERVICES PROCUREMENT PROCEDURE The County shall adhere to federal regulations governing Community Development Block Grant (“CDBG”) funds, when obtaining professional services for CDBG. 13.6 OTHER SERVICES - SPECIALIST, VENDOR AND SPEAKER AGREEMENTS a. The County Administrator is authorized to enter into agreements for other services through specialist, speaker, event vendor and exhibitor agreements. The form of the agreement shall be approved by the County Attorney. Limitations regarding signature authority apply to these agreements. b. Excluding services covered by the CCNA, specialist agreements may be utilized for projects or services that require a level of skill or knowledge that cannot be readily obtained through temporary hiring and/or funding of a permanent position is not required or feasible. Examples include project managers, grant writers, event planning or provision of recreational programs. c. Specialists are considered independent contractors. However, background screening will be conducted in accordance with County policy. d. Speaker agreements may be utilized for presentations to the general public, County-sponsored special events and related activities. Background screening is not required if staff will be present at all times and presentations are limited to a specific event or program. e. Vendor and exhibitor agreements may be utilized for County-sponsored events. Background screening is not required if staff will be present at all times and services are limited to a specific event or program. Procedure - Community Development Block Grant (“CDBG”) Professional Services Procurement 4827-8502-6085.1 49409/0002 VM vm 46 To the extent that the procedures set forth in this section conflict with other provisions of the Manual, the provisions of this section shall control. a. Any public notice and/or Request for Proposals (“RFP”) shall identify all evaluation factors and the maximum points which may be scored for each factor; b. The public notice shall be published in a newspaper of wide circulation in the region outside the County, or the RFP shall be mailed to firms outside the County which can provide the service and documentation of the mailings shall be maintained by the Purchasing Division; c. An evaluation procedure for selecting order of negotiation shall be identified in the public notice and/or RFP and shall be limited to one of the following methods: 1. The selection committee shall rank all proposals using a scoring form identical to the published evaluation criteria and forward the ranked listing of all proposers for approval or disapproval (only) to the Board of County Commissioners. 2. If the Board rejects the ranking, the procurement process must start again from the development of another RFP. d. As part of the contract negotiations, the selected firm shall provide to the County a detailed breakout of its proposed fees. This breakout shall include, at a minimum, a complete identification of the anticipated level of work to be performed with each task, the expected hours to complete each task, an identification of the personnel expected to complete each task, the hourly rates of each person involved in the task, and the anticipated rate of profit for the project. e. The County shall include as part of the completion of the CDBG procurement process a checklist in a form approved by the Florida Department of Community Affairs, This checklist is to be kept by the County department/division applying for CDBG funds. f. The County shall follow the protest procedure as outlined in Section 11 of the Purchasing Manual. In the event a protest in connection with the solicitation for the proposed award of a contract for services in a CDBG project is received by the County, a written notification shall be sent to the Florida Department of Community Affairs, if such protest is received, as requiredby 24CFR 85.36 (b)(12) . g. When a single public notice is used for different professional services, such as grant administration and engineering, in the CDBG procurement process, the public notice shall state that there shall be separate evaluations and separate contracts for each service. The County shall maintain separate scoring sheets in the CDBG project files for each contract. Procedures - Other Services- Agreement Requirements a. Speaker or Vendor/Exhibitor Agreements 1. Staff must be present at all times. 2. Background screening is not required unless the speaker or vendor will be conducting more than four (4) presentations per year. 3. Prior approval of County Administration is not required. b. Specialist Agreement Requirements 1. Background screening is required 2. Human Resource Director must approve hourly wage rate. 4827-8502-6085.1 49409/0002 VM vm 47 3. Prior approval of County Administration is required. Procedures – Agreement approvals a. Except in the case of Speaker or Vendor/Exhibitor agreements, the Department Director must submit a memo to County Administration requesting approval to hire a specialist. The memo will detail: 1. Scope of services to be provided 2. Specialist qualifications 3. Term of agreement (dates) 4. Source of funding for agreement 5. Confirmation the specialist is not related to a county employee 6. Payment agreement, including the rate to be paid the specialist and the amount the contract cannot exceed. If there is an agreement to pay the specialist a percentage of anticipated revenue, an estimate of the County’s revenue must be provided. b. Following approval by County Administration (if required), the Department will have the applicant complete the Specialist Application and Background Screening form for all specialists and for all speakers who will be utilized more than four (4) times per year. 1. A current approved vendor badge from a district school board will be accepted in lieu of a background screening for speakers. 2. The completed application must be submitted to the Human Resources Department which will conduct the background screening and notify the Department, County Attorney and Purchasing of the results. 3. An acceptable background screening will be valid for one year. c. Upon clearance from the Human Resources Department (if required), the Department will prepare the appropriate agreement using the approved template available on the intranet. These forms must be used without changes unless approved by the County Attorney. The Department will send the applicant four (4) copies of the agreement for signature. d. When the signed agreements are returned, the Department will submit them for review and approval to the County Attorney’s office, which will then process according to the signature authority limits in Section 6.1. 1. Agreements of greater than $50,000 must be presented to the Board of County Commissioners for approval by the Requesting Department. 2. Once signed on behalf of St. Lucie County, all copies are returned to the County Attorney’s office. e. The County Attorney’s office will obtain a contract number and distribute the executed agreements to the Contract Coordinator, who will then distribute to Finance and the Department, who will then distribute to the applicant. Contract Coordinator will retain a copy. f. The Department will process the requisition and request the purchase order. The specialist (and speaker/vendor) may not begin work until the purchase order and notice to proceed (if applicable) has been issued. 4827-8502-6085.1 49409/0002 VM vm 48 SECTION 14 - MINORITY BUSINESS PARTICIPATION All contractors are encouraged to assist Florida’s small and minority businesses in doing business with the Board. Each contractor in assisting small and minority businesses will help to expand and develop the small and minority business sector of St. Lucie County. 14.1 DEFINITIONS a. “Certified Minority Business Enterprise” means a business enterprise which has been certified by the State of Florida Department of Management Services as a minority business enterprise in accordance with the provisions of the “Small and Minority Business Assistance Act of 1985". b. “Minority Business Enterprise” means any small business concern which is organized to engage in commercial transactions, which is domiciled in Florida, and which is at least fifty-one percent (51%) owned by minority persons, and whose management and daily operations are controlled by such persons. A minority business enterprise may primarily involve the practice of a profession. c. “Minority Person” means a lawful permanent resident of Florida who is: 1. A Black American - a person having origins in any of the Black racial groups in Africa. 2. A Hispanic-American - a person of Spanish or Portuguese culture, with origins in Mexico, South America, Central America, or the Caribbean, regardless of race. 3. An Asian American - a person having origins in any of the original people of the Far East, Southeast Asia, the Indian Subcontinent, or the Pacific Island, including the Hawaiian Islands prior to 1778. 4. A Native American - a person who having origins in any of the Indian Tribes of North America prior to 1835. 5. An American woman. d. “Small Business” means an independently owned and operated business concern which employs fifty (50) or fewer full-time employees, and which has a net worth of not more than one million dollars ($1,000,000). As applicable to sole proprietorships, the one million dollars ($1,000,000) net worth requirement shall include both personal and business investments. 14.2 COUNTY SELECTION PROCEDURES a. The County shall make a good faith effort to provide interested minority business enterprises or minority persons with adequate information about the plans, specifications and requirements of contracts or the availability of jobs; b. The County shall make a good faith effort to effectively use services and resources of available minority community organizations, minority contractors’ groups, local, state, and federal minority business assistance officers, and other organizations that provide assistance in the recruitment and placement of minority business enterprises or minority persons; and c. The County shall make a good faith effort to provide written notice to a reasonable number of minority business enterprises that their interest in contracting with the County is being solicited in sufficient time to allow the minority business enterprises to participate effectively. 14.3 MINORITY BUSINESS ENTERPRISE (MBE) DIRECTORY The Minority Business Enterprise (MBE) Directory for the County shall be the vendors list of certified minority business enterprises prepared and maintained by the State of Florida Department of Management Services pursuant to Section 287.0943, Florida Statutes. In addition, any business which the Small Business Administration has identified as an 8(a) firm shall be eligible for listing in the Directory. 4827-8502-6085.1 49409/0002 VM vm 49 The purpose of this Directory is to enable the County’s prime contractors to identify and utilize minority business enterprises. Procedures – Minority Business Enterprise: a. The Purchasing Division shall insert language in the bid and request for proposal documents that encourage contractors to utilize MBE certified businesses. Verification of MBE certified businesses shall be obtained from the database of the Florida Department of Management Services – Office of Supplier Diversity. SECTION 15 - VENDOR PERFORMANCE EVALUATIONS AND DEBARMENT 15.1 VENDOR EVALUATIONS a. The County Administrator shall provide written procedures for evaluation of vendor performance. Such evaluations shall be performed within 30 days of close out of the project by the project manager and Director or Manager of the user department. Evaluations shall be mandatory for all construction projects that are equal to or greater than $250,000 and for all contracts issued through RFPs or RFQs. At the Department Director’s discretion, vendor evaluations may be completed at any time, regardless of amount, to document excellent or poor performance. b. The vendor shall be provided a copy of the evaluation and may submit a written statement concerning the evaluation. The vendor may request a meeting with the Director of the user department to discuss the content of the evaluation and any rating. The procedures shall also provide a process whereby the vendor may enter into an agreement with the County Administrator or designee for an opportunity to improve performance on future County projects. c. Prior evaluations within a five-year timeframe will be provided to selection committees or user departments when considering vendor/contractor performance for purposes of awarding a contract, bid or quote. The County reserves the right to review older evaluations if, in its sole discretion, the prior evaluations demonstrate a pattern of poor performance. 15.2 DEBARMENT For the purposes of this policy, Debarment means that a vendor is prohibited from submitting quotations, bids or proposals to perform work for St. Lucie County. a. Cause for Debarment. The causes for Debarment include: 1. Entry of a plea of guilty, no contest or nolo contendere to or conviction for commission of a criminal offense as an incident to obtaining or attempting to obtain a public or private contract or subcontract, or in performance of such contract. 2. Entry of a plea of guilty, no contest or nolo contendere or conviction under state or federal statutes of embezzlement, theft, forgery, bribery, falsification or destruction of records, or receiving stolen property, or any other offense indicating lack of business integrity or business honesty which currently, seriously, and directly affects responsibility as a County contractor. 3. Entry of a plea of guilty, no contest or nolo contendere or conviction under state or federal anti- trust statutes arising out of submission of bids or proposals. 4. Material violation of any contract provision or as set forth below and which is regarded by the County Administrator as cause for Debarment, including but not limited to: i. Failure without good cause to perform in accordance with specifications or within the time limits provided in the contract; 4827-8502-6085.1 49409/0002 VM vm 50 ii. A record of failure to perform or of unsatisfactory performance in accordance with the terms of one or more contracts within the previous three (3) years; provided that failure to perform or unsatisfactory performance caused by acts beyond the control of the contractor shall not be considered to be a basis for Debarment; iii. Refusal to enter into a contract with the County by failing to provide bonds, insurance, or other required certificates within the time periods as specified in bid/RFP response; iv. Falsification of records related to contract performance, costs, payments or required documentation; v. Refusal to accept a purchase order, agreement or contract, or to perform thereon, provided such order was issued timely and in conformance with the offer received; vi. Presence of principals or corporate officers in the business or concern who were principals within another business at the time when the other business was suspended within the last three (3) years under the provisions of this section; vii. Violation of the ethical standards set forth in state law; viii. Providing anything of value, including but not limited to, a gift, loan, reward, promise of future employment, favor or service to any employee to influence the award of contract or purchase of items from a contract; ix. Failure to timely pay subcontractors and vendors; and/or 5. Any other cause the County Administrator determines to be so serious and compelling as to affect the credibility or competence as a County vendor, including debarment by another government entity for any cause listed in this section. b. The Debarment shall be for a period of no less than one (1) and no more than three (3) years unless modified by the Board. c. The County Administrator or designee shall notify the vendor of the intent to debar and the basis for the decision. Unless extended by the County Administrator in writing, the vendor shall have ten (10) calendar days from the date of the notice to provide the County Administrator with a response and reasons why the debarment should not proceed. d. Within thirty (30) calendar days from the date of the response, the County Administrator shall render a final decision on the Ddebarment of the vendor after consultation with the County Attorney. Nothing in this procedure shall preclude the County Administrator or designee from meeting with the vendor or user department regarding the Debarment. Failure to file an appeal within the 30-day period shall constitute a waiver of that right and render the Debarment decision conclusive. e. An aggrieved party may appeal the Debarment decision of the County Administrator to the Board. Such appeal shall be a hearing de novo. An appeal shall be filed within seven (7) days of the execution of the written decision by the County Administrator. The Board shall follow the appeal process set forth in Section 12.2 (d) and (e) of this Policy Manual. f. The Board’s decision to debar a person or business shall be final and conclusive unless a timely appeal of the Board’s decision is filed pursuant to the Florida Rules of Appellate Procedure. 4827-8502-6085.1 49409/0002 VM vm 51 g. Reinstatement. A person or corporation may be reinstated to do business with the County under the following conditions: 1. Discovery of new and material evidence not previously available. 2. Dismissal of indictment or reversal of condition. 3. Bona fide change in ownership or management sufficient to justify a finding of present responsibility h. The request for reinstatement shall be forwarded in writing to the County Administrator or designee. The County Administrator shall render the decision in writing within thirty (30) days from the receipt of the request for reinstatement. i. An appeal of the County Administrator’s decision to the Board must be filed within thirty (30) days of the execution of the written decision by the County Administrator. The Board’s decision to reinstate or not reinstate a person or business shall be final and conclusive, unless a timely appeal of the Board’s decision is filed pursuant to the Florida Rules of Appellate Procedure. Procedure Vendor/Contractor Performance Evaluations – a. Department Directors shall ensure that written evaluations are performed within 30 days of close out of a construction project of $250,000 or greater or a project awarded by RFP or RFQ. The evaluation must be completed by the project manager with the concurrence of the Department Director or Division Manager. Construction projects less than $250,000 may have written evaluations at the discretion of the Department Director. b. The completed form shall be submitted by the Department to the Purchasing Division. The Purchasing Division shall provide the vendor/contractor with a copy of the evaluation. When a company or business has received a negative evaluation, the Purchasing Division shall also provide a copy of the evaluation to Administration. c. The Purchasing Division shall ensure copies of evaluations are provided to selection committees and/or County staff considering awarding a contract or work authorization to the vendor/contractor. d. Evaluations are mandatory for all construction projects equal to or greater than $250,000 and all contracts issued through RFPs or RFQs, including continuing contract work authorizations. Department Directors may elect to submit evaluations on other projects as desired. e. Evaluation forms are provided by the Purchasing Division which shall send notices to Department Directors if evaluations are not submitted within the required time frame. f. The vendor /contractor being evaluated shall have the option of responding in writing within ten business days of receiving the evaluation. Not responding within the allotted time frame will be interpreted by the County as agreement with the evaluation. Procedure – Fresh Start Initiative a. Consultants/contractors who have been evaluated as providing unacceptable performance on County projects shall be given one opportunity to complete the Fresh Start with the County. This process does not apply to vendors/contractors who have been debarred. b. The vendor/contractor shall submit a written request to the Purchasing Division requesting initiation of the Fresh Start process. The Purchasing Division shall forward the request to 4827-8502-6085.1 49409/0002 VM vm 52 the Department Director, with a copy to Administration, along with the approved Fresh Start form. c. Within 30 days, the Department Director shall complete the Fresh Start form and review with the Management and Budget Director or designee. The Fresh Start form shall reflect the substandard performance issues contained in the project evaluations. d. The Fresh Start form shall be presented to the consultant/contractor in a meeting setting, and the consultant/contractor shall then be given ten (10) business days to return the form to the Purchasing Division and the Department Director with responses and corrective actions listed. e. If the response is deemed unacceptable by the Department Director and Management and Budget Director, staff may recommend to the County Administrator that the consultant/contractor be debarred. f. The Purchasing Division shall notify the vendor/contractor in writing if the response and corrective actions are acceptable or if further action is required. 1. If revisions to the proposed corrective actions are required, the vendor/contractor shall have ten (10) business days to submit them to the Purchasing Division and Department Director. 2. If the vendor/contractor fails to respond or the response is still unacceptable to the Department Director and Management and Budget Director, the Fresh Start initiative shall be terminated. g. All completed and accepted Fresh Start forms, responses, etc., shall be kept on file in the Purchasing Division and distributed anytime the vendor/contractor is being considered for another award. h. If the vendor/contractor fails to perform satisfactorily following acceptance of the Fresh Start initiative, staff shall consider recommending to the County Administrator that the vendor/contractor be debarred. SECTION 16 - PROCUREMENT PROCEDURES FOR STATE OR FEDERALLY FUNDED GRANT PROGRAMS 16.1 APPLICATIONS The County Administrator shall approve all applications for state, federal and other grants after confirming that matching funds, if required, are available and reserved. The County’s ability to fund any ongoing costs of a potential grant, including personnel, operating and maintenance, shall be considered as early as possible in the application process but no later than prior to acceptance of an award. 16.2 ACCEPTANCE Upon notice of grant award, the County Administrator or designee shall submit the grant to the Board for acceptance and for approval of the associated budget resolution if required. Confirmation of the availability of matching funds and the County’s ability to fund maintenance, operational and other ongoing costs (if any) shall be provided to the Board. 4827-8502-6085.1 49409/0002 VM vm 53 16.3 PROCUREMENT The Board recognizes that certain procurement requirements for state or federally funded grant programs may, from time to time, conflict with standard St. Lucie County policies. The County Administrator, therefore, is authorized to modify County procurement policies in order to comply with procurement requirements for state or federally funded grant programs. All procurement funded by Community Development Block Grants shall follow the Procurement Policies and Procedures for Community Development Block Grant Programs and Projects included as Attachment A of the St. Lucie County Purchasing Manual. Procedure - Applications 1. Complete the New Grant Request Form and memo located under the approval request grant memo tab on the Office of Management and Budget (OMB) intranet site: http://intranet.stlucieco.org/budget/default.aspx 2. Obtain Department Director’s signature. Attach backup material related to the grant application. 3. Submit signed form to OMB for approval by the Management and Budget Director. 4. OMB Director will review request, sign if recommending approval and submit to the County Administrator for approval. Procedure - Acceptance The Department will submit an agenda item including a copy of the grant award along with a budget resolution (if required) to the board for acceptance. Procedure – Procurement The Department will notify the County Administrator of any changes needed for procurement requirements when submitting the grant approval request form. SECTION 17 – CONTRACT PROCEDURE 17.1 CONTRACT REQUIREMENTS For purchasing purposes, a contract is a formal written agreement between the Board and a selected vendor, consultant, or contractor for a particular purchase. a. A contract is required for: 1. Professional services as described in Section 12 2. All construction projects as described in Section 18 3. Purchase, sale or lease of County-owned property or purchase, sale or lease of property by the County. Unless otherwise required by the County Attorney, the approved Facility Use Agreement is the acceptable form for short-term use of County facilities. 4. All services which are to be performed on property owned or controlled by St. Lucie County or performed on behalf of the County on property not owned by the County. b. Unless required by the County Administrator or County Attorney, a purchase order shall serve as the contract for services of $25,000 or less. 4827-8502-6085.1 49409/0002 VM vm 54 c. A contract may be required for any other particular purchase, if deemed necessary by the County Administrator, the County Attorney, or the Board. d. A contract may be entered into if required by the vendor. e. Unless specifically required by the Board, County Administrator, or County Attorney, purchases of goods or equipment which do not include any associated services, such as installation, do not require a contract apart from the purchase order. f. Upon approval by the County Attorney, liquidated/delay damages may be incorporated into Professional Services contracts. 17.2 CONTRACT PREPARATION Unless prepared by the vendor, or as provided for below, all required contracts will be prepared under the direction of the County Attorney. If a contract is prepared by the vendor, the contract must be submitted to the County Attorney for review and approval. The County’s Risk Manager should be consulted to insure that the proper insurance requirements are included in the contract documents. a. Service contracts of $25,000 or less 1. Unless otherwise required by the County Attorney or the County Administrator, a purchase order for services shall serve as the contract between the County and the vendor for services costing $25,000 or less. At a minimum, all purchase orders must contain the following terms and conditions as they may be amended by the County Attorney. i. A statement in conspicuous print which provides that the purchase order is subject to all of the terms and conditions and that the vendor, by acceptance of the purchase order, agrees to be bound by and abide by all of the terms and conditions of the purchase order. ii. A condition that provides a warranty by the vendor. iii. A condition that the vendor agrees to indemnify the County for any liability arising out of the service provided under the purchase order and a condition that the vendor will maintain insurance sufficient to protect the interests of the County. The amounts and types of insurance shall be provided by the County Risk Manager. No work shall be performed under the purchase order until the vendor has provided proof of insurance to the County. 17.3 CONTRACT AMENDMENTS a. If it becomes necessary to amend the terms of the contract, a formal, written contract amendment must be prepared. b. The County Administrator is authorized to approve contract, grant or other agreement amendments up to a cumulative total of $50,000 or less following written confirmation by the user department that additional funds are available. c. The County Administrator is authorized to approve contract, grant or agreement amendments for time extensions. Procedure - Contract Execution 4827-8502-6085.1 49409/0002 VM vm 55 a. Contracts $50,000 or less Except for Professional Services Contracts, all contracts for an amount $50,000 or less will be prepared or approved by the County Attorney and executed as follows: 1. All contracts for an amount $50,000 or less shall be sent to the Requesting Department or Purchasing Division which shall be responsible for obtaining the vendor’s signature on four (4) copies of the contract. 2. Following preparation and approval by the County Attorney, department director or designee, and the purchasing department, all contracts and contract documents shall be returned to the Purchasing Division or the Requesting Department. 3. Following signature by the vendor, all copies will be returned to the County Attorney for approval as to legal form and correctness and to ensure the vendor has made no changes. Upon review and approval by the County Attorney, the County Attorney’s office will obtain all appropriate signatures. 4. After the contract has been fully executed by the appropriate County official(s), the County Attorney’s office which will contact the Finance Department for contract number assignment. The County Attorney’s office will record the contract number on the contract prior to distribution 5. The County Attorney’s office will distribute the executed contracts to the Contract Coordinator, who will then distribute to Finance and theDepartment, who will then distribute to the vendor. Contract Coordinator will retain a copy. b. Contracts for More than $50,000 1. Contracts for an amount of more than $50,000 must be approved or authorized by the Board. 2. Following preparation and approval by the County Attorney, department director or designee, and the purchasing department, all contracts and contract documents shall be returned to the Purchasing Division or the Requesting Department. 3. The Purchasing Division or the Requesting Department will have the selected vendor execute four (4) copies of the contract prior to signature on behalf of the County. 4. The vendor must return all copies of the contracts to the Purchasing Division. 5. After receipt of the signed originals from the vendor, they will be returned to the County Attorney to review and then obtain the signature of the Chairman of the Board, or the Vice-Chairman in the Chairman’s absence. All contracts executed by the Board must be attested to by the Clerk of the Board or a Deputy Clerk as determined by the Clerk. 6. After the contract has been fully executed by the appropriate County official(s), the County Attorney’s office will contact the Finance Department for contract number assignment. The County Attorney’s office will record the contract number on the contract prior to distribution. 4827-8502-6085.1 49409/0002 VM vm 56 7. The County Attorney’s office will distribute the executed contracts to the Contract Coordinator, who will then distribute to Finance and theDepartment, who will then distribute to the vendor. Contract Coordinator will retain a copy. Procedure - Contract Recording and Tracking Procedure a. For monitoring and control purposes, all County Contracts will be logged and recorded with the Finance Department. b. The Finance Department shall record the contract number in a Master Control Log including, but not limited to, the Execution Date, Contract Party, Department, and assigned contract number CYY-MM-SSS, where: CYY = C followed by the calendar year of execution MM = The month of the calendar year SSS = A number sequentially assigned for the year c. From its copy, the Finance Department shall establish a Master File for the contract in its central files. d. The Purchasing Division shall be responsible for maintaining the contract and insurance database, tracking all contracts and to notify the user department(s) at least 90 days prior contract expiration. Procedure - Contract Amendments a. If the contract amendment does not meet the criteria for execution by the County Administrator then the Requesting Department must agenda it for presentation to the Board for their consideration. b. Following preparation and approval by the County Attorney, department director or designee, and the purchasing department, four (4) copies of the contract amendment must be sent to the vendor for execution with instruction as to how to proceed. c. After receipt of the executed contract from the contractor, the amendment is processed in accordance with the contract execution procedures, for either BOCC approved or County Administrator approve amendments, except that no new contract number is assigned by Finance. SECTION 18 - CONTINUING CONTRACTS AND WORK AUTHORIZATIONS 18.1 CONTINUING CONTRACTS a. Per Florida Statute 287.055, continuing contracts may be utilized for professional services in which construction will not exceed $2,000,000 and for studies which will not exceed $200,000 or when it is for work of a specified nature as set forth in the continuing contract. b. Requests for Qualifications or Requests for Proposals for continuing services contracts shall be reissued every three to five years unless waived by the Board. 4827-8502-6085.1 49409/0002 VM vm 57 18.2 WORK AUTHORIZATIONS a. Work authorizations shall be required for all continuing services contracts as determined by specific contract language. All work authorizations shall be approved and signed by the appropriate signing authority. b. All work authorizations for more than $50,000 will be prepared under the direction of the County Attorney and approved and executed by the Board. 18.3 AMENDMENTS TO WORK AUTHORIZATIONS a. If it becomes necessary to amend the terms of the work authorization, a formal, written amendment must be prepared. The County Administrator may approve amendments to work authorizations for a cumulative total of $50,000 or less. b. The County Administrator may also approve time extension amendments to work authorizations. Procedure - Work Authorizations a. Under the direction of the County Attorney, Work Authorizations for $50,000 or more require Board approval and must be presented as an agenda item by the Requesting Department. b. Following Board approval (if required), Work Authorizations are processed in the same manner as contracts with the exception that a contract number is not assigned by Finance to Work Authorizations. Procedure - Amendments to Work Authorization a. If the work authorization amendment does not meet the criteria for execution by the County Administrator then the Requesting Department must agenda it for presentation to the Board for their consideration. b. Following preparation and approval by the County Attorney, department director or designee, and the purchasing department, four (4) copies of the work authorization amendment must be sent to the vendor for execution with instruction as to how to proceed. c. After receipt of the executed work authorization amendment from the vendor, the amendment is processed in accordance with work authorization execution procedures for either BOCC approved or County Administrator approve amendments. Procedure - Work Authorization Payment Authorization a. All payments for Work Authorizations under continuing contract will be initiated by a Department by utilizing a Request for Payment Form or submitting the approved vendor invoice. b. A Department can requisition periodic payments for a Work Authorization on a Request for Payment Form or by submitting approved progress invoices. c. Upon completion of the project, but prior to final payment, the appropriate Department Director shall be responsible for submitting a completed CEF and ONSULTANT VALUATION ORM a written certification that the project has been completed per the scope of services to the County Administrator for review and approval. 4827-8502-6085.1 49409/0002 VM vm 58 SECTION 19 - CONSTRUCTION CONTRACTS 19.1 CONSTRUCTION CONTRACTS AND AMENDMENTS a. Construction contracts shall comply with all Board policies for contracts with additional appropriate conditions as approved by the County Attorney. Per F.S. 255.20, construction contracts are to be utilized when a public entity contracts to construct or improve a public building, structure or other public construction works. b. Change orders are utilized to amend construction contracts when only time and/or price is involved. All other amendments to construction contracts must be accomplished through a contract amendment and approved by the original signing authority. For purposes of contract amendments, scope of work for construction contracts generally is defined to include any work that is required to construct the project. c. Construction contracts will be awarded only to a contractor who is certified or licensed by the County and/or State, as appropriate, and has provided proof of insurance in amounts satisfactory to the County. d. Except as provided in (e), the County Administrator is authorized to approve change orders or contract amendments up to cumulative total of $50,000. e. Construction contracts may include a project contingency up to 10% of the contract amount. Use of funds from the project contingency shall be approved by the County Administrator or designee. When the cumulative total of change orders or contract amendments exceeds the contract contingency, additional change orders or contract amendments, other than time extensions, must be approved by the Board. f. The County Administrator is authorized to approve time extensions. g. In case of emergency and/or when a delay will result in potential work stoppage or additional costs to the County as a result of the delay, the Director may seek approval from the County Administrator to proceed with the work. If Board approval of the change order or contract amendment is required, it may be processed after-the-fact at the next available Board meeting. 19.2 APPRENTICESHIP PROGRAM REQUIREMENTS Contractors shall be required to comply with the County’s Apprenticeship Program, as follows: a. On County-funded construction projects which exceed $300,000, twenty percent (20%) of laborers working in a specialty for which there are apprentice programs registered with the County shall be apprentices. Such apprentices shall be students in certified State of Florida Pre- Apprenticeship/Apprenticeship Programs which are located in St. Lucie, Martin, Indian River or Okeechobee Counties and which are registered with the County. b. A County-registered apprenticeship program is one which has registered with the County and provided the required documentation, including but not limited to, proof of certification as an apprenticeship program with the State of Florida and proof of having educational facilities physically located in St. Lucie, Martin, Indian River or Okeechobee Counties. c. Unless the apprenticeship requirement is waived by the County, the failure of the Contractor to demonstrate compliance with this requirement shall result in the Contractor’s bid being deemed nonresponsive. 4827-8502-6085.1 49409/0002 VM vm 59 d. The apprentice requirement may be waived or modified with the recommendation of the County Administrator, and appeal to the Board of County Commissioners: 1. Upon request of the contractor, if the contractor can demonstrate that the required apprentices are not available despite a good faith effort on the contractor’s part; or 2. Upon request of the contractor, if the contractor demonstrates that the available apprentices are not sufficient to meet the required 20% and the contractor commits to utilizing a specific percentage of apprentices who are available; or 3. if the County determines it is in the best interests of the County to waive such requirement based on potential savings of money and time or grant requirements. e. The agreed upon percentage and type of apprentices will be included as a requirement of the construction contract. Failure to meet the terms of the apprenticeship requirement may result in the contractor being found in breach of the contract and subject to possible monetary sanctions. 19.3 BONDING AND INSURANCE REQUIREMENTS Public Construction Bond a. Section 255.05, Florida Statutes, provides that any person entering into a formal contract with the Board for the construction or repair of any public building or public work shall be required to execute the usual Penal Bond with good and sufficient sureties. Section 255.05, Florida Statutes, further provides that the Board, in its discretion, may exempt any person entering into a contract that is for $200,000 or less from executing the usual penal bonds for construction and repair on public buildings and public work. b. The Board has determined to not require a public construction bond for projects under $100,000 unless deemed necessary by the County Administrator or designee. Requests for waiver of the bond requirements from $100,000 up to $200,000 shall be reviewed and approved by the County Administrator on a case-by-case basis. General Insurance Requirements a. The contractor shall be required to purchase and maintain such insurance as will protect him or her from claims set forth below that may arise out of or resulting from the contractor's operations under the contract, whether such operations be by the contractor or by any subcontractor or by anyone directly or indirectly employed by any of them, or by anyone for whose acts any of them may be liable for: 1. Claims under Workers' or Workmen's Compensation, Disability Benefit, and other similar employee benefit acts; 2. Claims for damages because of bodily injury, occupational sickness or disease, or death of the contractor's employees; 3. Claims for damages because of bodily injury, sickness or disease, or death of any person other than the contractor's employees; 4. Claims for damages insured by usual personal injury liability coverage which are sustained (1) by any person as a result of an offense directly or indirectly related to the employment of such person by the contractor, or (2) by any other person; 4827-8502-6085.1 49409/0002 VM vm 60 5. Claims for damages, other than to the work itself, because of injury to or destruction of tangible property, including loss of use resulting there from; and; 6. Claims for damages because of bodily injury or death of any person or property damage arising out of the ownership, maintenance or use of any motor vehicle. b. The insurance required shall be written for not less than any limit of liability specified in the contract documents, or required by law, whichever is greater. The insurance required shall include contractual liability insurance applicable to the contractor's obligations. c. The contractor shall purchase and maintain property insurance upon the entire work at the site to the full insurable value (replacement cost). This insurance shall include the interest of the County, the contractor, subcontractors and sub subcontractors in the work and shall be insured following the Basic Causes of Loss form and shall include "all risk" insurance for physical loss and damage including, without duplication of coverage, theft, vandalism, and malicious mischief. If the County is damaged by failure of the contractor to purchase or maintain such insurance and to so notify the County, then the contractor shall bear all reasonable costs properly attributable thereto. If not covered under the all risk insurance or otherwise provided in the contract documents, the contractor shall effect and maintain similar property insurance on portions of the work stored off the site or in transit when such portions of the work are to be included in an application for payment. d. The contractor shall file with the County certificates of insurance acceptable to the County prior to commencing the work. If the contract exceeds $50,000, the certificate shall name St. Lucie County, its officers and employees as additional insured’s with respect to the work performed under the contract. These certificates shall contain a provision that coverage’s afforded under the policies will not be canceled until at least thirty (30) days prior written notice has been given to the County. 19.4 RETAINAGE FOR CONSTRUCTION CONTRACTS a. Retainage for construction contracts shall be governed by F.S. 218.70, known as the Local Government Prompt Payment Act, as it may be amended, which contains specific language regarding . the timing and conditions under which retainage must be released b. The term “50% completion” shall be defined in each contract. 19.5 CLOSE OUT OF CONSTRUCTION CONTRACTS a. Construction contract projects other than public roads will be closed out after a Certificate of Occupancy has been issued (if applicable), certification by an architect or engineer that construction has been completed in accordance with the construction plans and specifications and acceptance by the County project manager. At the discretion of the project manager, the contractor may be required to provide consent of surety before any progress payment, including the final payment. b. Construction contracts for public road projects shall be considered complete upon acceptance by the Board and certification by an engineer that construction has been completed in accordance with construction plans and specifications. Such acceptance shall provide for release of construction retainage. At the discretion of the project manager, the contractor may be required to provide consent of surety before any progress payment, including the final payment. c. Final payment and release of retainage shall not occur until close out has been completed and all liens have been released. 4827-8502-6085.1 49409/0002 VM vm 61 Procedure - Construction Contract Award After a contractor has been selected for a construction project and approved by the Board of County Commissioners, pursuant to the requirements of section 16.2, the construction contract will be prepared and executed as follows: a. The County Attorney or Designee will prepare a contract using the date the Board awarded the bid to the contractor. b. The Requesting Department or the Purchasing Division will have the successful contractor execute four (4) copies of the prepared contract. c. Contract originals will be forwarded to the contractor with instruction as to how to execute the contract. If required, the successful contractor shall obtain a public construction bond, and a certificate of insurance as outlined in the Manual. d. The contractor must return all copies of the contract, with the recorded public construction bond, if required, and the certificate of insurance to the Purchasing Department or the County Attorney. e. After receipt of the signed contract originals from the contractor, the County Attorney will obtain the signature of the County Administrator, or designee or the Chairman of the Board, or the Vice-Chairman in the Chairman’s absence. All contracts executed by the Board must be attested to by the Clerk of the Board or a Deputy Clerk as determined by the Clerk. f. After the contract has been fully executed by the appropriate County official(s), the County Attorney’s office will contact the Finance Department for contract number assignment. The County Attorney’s office will record the contract number on the contract prior to distribution. g. The County Attorney’s office will distribute the executed contracts to the Contract Coordinator, who will then distribute to Finance and theDepartment, who will then distribute to the vendor. Contract Coordinator will retain a copy. Procedure - Contract Initiation a. When the Department is ready to proceed with the construction work, the Department Director will forward to the contractor one executed original if available, or a copy of the contract, the separate required written Notice to Proceed, and the vendor copy of the Purchase Order. b. A copy of the notice to proceed is also to be sent to the Purchasing Division, Finance Department, and the County Attorney. c. A notice to proceed for the contract cannot be issued until the contract is fully executed and a purchase order is issued and received by the Requesting Department. Procedure - Contract Change Order a. If the contract change order does not meet the criteria for execution by the County Administrator then the Requesting Department must agenda it for presentation to the Board for their consideration. 4827-8502-6085.1 49409/0002 VM vm 62 b. Following preparation and approval by the County Attorney, department director or designee, and the purchasing department, a Contract Change Order is returned to the Requesting Department or Purchasing Division which will obtain the vendor’s signature on four (4) copies. c. After receipt of the signed contract change order originals from the contractor, the County Attorney will obtain the signature of the County Administrator, or designee or the Chairman of the Board, or the Vice-Chairman in the Chairman’s absence. Signatures are pursuant to the construction contract policy. All contracts executed by the Board must be attested to by the Clerk of the Board or a Deputy Clerk as determined by the Clerk. The County Administrator shall not sign any change order which has been modified by the vendor unless written approval of the modification has been obtained from the County Attorney d. The Department must either prepare and submit a Purchase Order Change Form in conjunction with the contract change order or prepare and submit a requisition, to the Purchasing Division. e. The Department must reference the contract number and the change order number on the Purchase Order Change Form or requisition. Procedure - Bonding and Insurance Requirements a. The policy forms must include: 1. Comprehensive General Liability (Broad Form) covering premises, operations, products and completed operations, independent contractors, personal injury, owners and contractors protective liability, broad form contractual liability (to include covering the indemnity section of this contract), and property damage resulting from explosion, collapse, or underground exposures. The insurance certificate shall name the County as an additional named insured or certificate holder as required. 2. Comprehensive Auto Liability covering all owned, hired, non-hired, leased and non-owned vehicles. The insurance certificate shall name the County as an additional named insured or certificate holder as required. 3. Workers' Compensation covering the Florida exposures including voluntary compensation; and Federal and other State Benefits if any exposure exists. The insurance certificate shall name the County as an additional named insured or certificate holder as required. Procedure - Payment for Construction Services a. ”Construction Services” is defined as all labor, services, and materials provided in connection with the construction, alteration, repair, demolition, reconstruction, or any other improvements to real property. b. It shall be County policy that vendors should mail invoices directly to the department. All invoices shall be marked as to the date of receipt. 1. The Finance Department will maintain all invoices on file for use in processing payments for orders. c. Payment shall be made within twenty-five (25) business days of receipt of a proper Invoice by the Finance Department. 4827-8502-6085.1 49409/0002 VM vm 63 d. If the invoice is improper, it shall be rejected within twenty (20) business days of receipt. The rejection must be in writing, by the County Project Manager or Designee, and must specify the deficiency in the invoice and the action necessary to make the invoice proper. e. If any portion of the invoice is undisputed, the undisputed portion shall be paid within twenty-five (25) business days of receipt by the Finance Department. The County Project Manager or Designee shall submit a memorandum to the Finance Department indicating which portion of the invoice is undisputed and the Finance Department shall timely remit payment for that portion. If necessary for that Contract, the County Project Manager or Designee shall include in the memorandum a corrected calculation of retainage to be withheld from the partial payment. f. If the invoice is rejected as improper under subsection (d) and the Contractor submits a corrected invoice which corrects the deficiency, the corrected invoice must be paid or rejected on the later of: 1. Ten business days after the date the corrected invoice is stamped as received by the Finance Department; or 2. If the Board of County Commissioners must approve the payment, the first business day after the next regular scheduled meeting of the Board held after the corrected invoice is stamped as received by the Finance Department. g. If the second invoice submitted by the Contractor is still improper or if the dispute between the County and the Contractor still cannot be resolved, the dispute shall be resolved in accordance with the dispute resolution procedure prescribed in the Contract between the County and the Contractor. h. The Finance Department shall timely pay any proper invoices, which are submitted subsequent to an improper invoice, even if the dispute regarding the improper invoice has not yet been resolved. Procedure - Retainage for Construction Services Contracts a. If a Construction Services Contract is for more than $200,000.00, the County may withhold retainage from each progress payment in an amount not exceeding ten percent (10%) of the payment until Fifty Percent Completion of such services. b. The term “Fifty Percent Completion” shall be defined in each Contract. c. After Fifty Percent Completion of the Construction Services have been completed pursuant to the Contract, the County must reduce to five percent (5%) the amount of retainage withheld from each subsequent progress payment made to the Contractor, unless it is notified to do otherwise by the Contractor. Procedure - Construction Contract Final Payment Authorization a. Upon completion of the construction, but prior to final payment, the appropriate Department Director shall be responsible for obtaining a Release of Liens from all Subcontractors and sworn statement from the General Contractor that all persons, firms, and corporations who have furnished services, labor or materials in the construction of the premises have been paid and that there are no outstanding monies owed on the contract by the General Contractor. The Release of Liens will be submitted to the County Attorney for review. 4827-8502-6085.1 49409/0002 VM vm 64 b. For vertical construction, parking and recreation areas, prior to final payment, the properly executed Release of Liens, a completed Consultant Evaluation Form, a copy of the Certificate of Occupancy (if applicable) and a written certification by the project architect and/or engineer that the project has been completed per plans and specifications will be forwarded to the County Attorney for review. c. For construction of public roads, the properly executed Release of Liens, a completed Consultant Evaluation Form, an engineer’s certification of completion will be presented to the Board for formal acceptance prior to final payment. d. For all construction projects, the construction bond shall not be released by the Department until the maintenance and warranty periods have expired without claim by the County. SECTION 20 - EMERGENCY PURCHASES 20.1 EMERGENCY PURCHASE POLICY Although competitive bidding is desirable for most purchases, when an Emergency arises, the normal procedure is too time consuming. For this reason, the County has adopted an Emergency Purchases Procedure. 20.2 DEFINITION OF AN EMERGENCY For purchasing purposes, an Emergency is defined as: an unforeseen situation involving a breakdown of County service and an urgent need to restore that service to avoid serious and adverse consequences affecting the life, health, welfare, or property of the citizens of St. Lucie County. 20.3 EMERGENCY PURCHASE AUTHORIZATION Emergency Purchases are authorized when there is an Emergency, and there is an immediate need for items or services to deal with the Emergency. a. In an Emergency situation, the County Administrator may authorize an Emergency Purchase and waive any bid requirement. b. If the Emergency occurs at night, on weekends, or on holidays, the Department Director may initiate independent action as provided below. 20.4 EMERGENCY PURCHASE OVER AUTHORIZATION LIMIT The Department Director must attempt to obtain the authorization of the County Administrator or designee for emergency purchases which exceed the Director’s authorization limit. a. After attempting to obtain authorization from the County Administrator or designee, the Department Director may make the purchases of the needed items or services. b. If the Department Director was unable to obtain prior authorization, the Department Director will obtain from the County Administrator or designee "after the fact" approval of the purchase on the next working day. 4827-8502-6085.1 49409/0002 VM vm 65 c. If the emergency purchase exceeds the County Administrator’s authorization limit, the County Administrator will request "after the fact" approval from the Board of County Commissioners at its next regular scheduled meeting. Procedure - Emergency Purchases a. If the Emergency occurs during normal working hours, the Department must attempt to obtain appropriate authorization for the purchase through telephone or verbal communications by notifying the Purchasing Division and submitting a requisition through the steps required in this manual. b. If the emergency occurs at night, on weekends, or on holidays, the Department Director shall authorize the necessary purchases of the needed items or services and obtain “after the fact” approval of the purchase on the next working day, if needed. The department will on the next working day follow the procedures listed below: 1. The Department Director will prepare a signed statement describing the emergency and stating the need for the emergency purchase. 2. This emergency statement will be submitted to the Purchasing Division along with the requisition. 3. The emergency statement must also be signed by the Department Director and the County Administrator, if involved, certifying their authorization of the Emergency Purchase. 4. Upon receipt of the requisition form and Emergency Statement, the Purchasing Division will prepare a purchase order for the purchase. SECTION 21- TRAVEL AND EDUCATIONAL EXPENSES 21.1 TRAVEL AND EDUCATIONAL REIMBURSEMENTS a. When County officials or employees spend their personal resources for travel or education, which is in the course of County business or in support of a County purpose, such officials and employees may be reimbursed for such expenses from County funds. b. Employees using personal vehicles for County business and travel are liable for accidents while driving to and from work or for any use not related to County business. Proof of liability insurance must be provided to utilize personal vehicles for County business and travel. 21.2 LOCAL TRAVEL AUTHORIZATION When authorized by the Department Director, County employees may, for County business, utilize County vehicles or their personal vehicles and incur personal expenses for travel within St. Lucie County or to Indian River, Martin and Okeechobee Counties. a. To the extent feasible, County fleet vehicles should be utilized for local travel. b. The allowable reimbursement for local travel will be the approved mileage rate for miles traveled and other actual travel-related expenses for tolls, parking fees, transit fares, and phone calls. 4827-8502-6085.1 49409/0002 VM vm 66 c. Employees, who can document travel of 250 miles or more per month on a regular basis, may be eligible for a fixed monthly reimbursement at the discretion of the County Administrator. The allowable reimbursement for such travel will be limited to the fixed monthly allowance approved by the County Administrator. 21.3 OUT OF AREA TRAVEL AUTHORIZATION a. When it is necessary for a County employee to travel out of the local area (as defined in Section 20.2) for County business, such travel must be approved in advance by the County Administrator or designee. Travel approval may be obtained after the departure date when such travel was required as a result of an emergency or unforeseen circumstance or change in plans. In such cases, the County Administrator or designee must provide verbal approval prior to departure. b. To the extent feasible, county fleet vehicles should be utilized for travel. All private charters must be authorized in advance by the County Administrator. c. The allowable reimbursement for out of area travel will be the approved mileage rate for miles actually traveled when utilizing a personal vehicle, common carrier fares, automobile rental, tolls, taxi or transit fares, parking fees, private charters, lodging, meals, phone and other required communication charges, and conference fees and materials. 21.4 EDUCATION AND TRAINING EXPENSES AUTHORIZATION a. When properly authorized in advance by the County Administrator or designee, educational expenses or reimbursements for outside training for County employees may be paid from County funds as available. b. For authorization and expense purposes, outside training shall be classified into two (2) categories: 1. Education and Training Expenses - for outside training when an employee is specifically authorized and paid for attending such training. 2. Tuition Assistance - for outside training when an employee optionally pursues an education, certification or training goal on his or her own time that will benefit the County. c. For approved educational or training expenses, upon proper authorization, the County will assume an obligation to pay associated costs including but not limited to regular pay, registration, materials and travel. d. With proper prior authorization, the County will assume an obligation under its Employee Tuition Refund Program as described in the Employee Manual. Procedures – Local Travel a. Employees using personal vehicles for County business and travel are liable for accidents while driving to and from work or for any use not related to County business. b. Employees are liable for accidents while operating a County vehicle for any use other than official County business . c. Employees who use their personal vehicle on County business are entitled to a mileage reimbursement at a rate per mile, as established by the Board of County Commissioners. Local travel reimbursement must be submitted on the form prepared by the Finance Department. 4827-8502-6085.1 49409/0002 VM vm 67 d. Travel on County business to and from an adjacent County if more than one (1) day, is considered the same as local travel for any County Employee; no meals will be reimbursed. e. Department Director may request a fixed monthly travel allowance for employees whose travel exceeds 250 miles per year. Such requests should be made during the budget process, signed by the Department Director and submitted to the County Administrator for review. The information submitted to the County Administrator must include the following: 1. Documentation of the monthly mileage and reimbursement for the employee for a period of at least six (6) months. 2. Justification including the lack of availability of County vehicles. 3. Recommended monthly allowance rate. f. If approved, the Department will forward a copy of approved local travel allowances to the Finance Department. g. Any proposed additions to the list during the fiscal year should be approved and processed in the same manner. h. Proof of liability insurance is required for employees who are eligible for fixed monthly reimbursement. Proof of liability insurance shall be submitted to the Risk Manager and will be kept on file in the Human Resource Department. It will be the employee’s responsibility to keep proof of liability insurance current with Risk Management. Procedure - Out of Area Travel a. Out of Area travel should be included in the budget request of each department. However, a Department may request approval and authorization simultaneously when the necessity of the travel becomes evident. b. To obtain authorization for an out-of-area travel, a Department must prepare a Pre-Travel Expense Request Form in advance of travel. If the request was approved in the budget, it should be noted on the request form. If the request was not approved as part of the budget, or a freeze on travel is imposed, the department must submit a justification for the travel of each employee. c. The Assistant County Administrator must approve overnight travel within Florida. The County Administrator must approve travel outside Florida. d. The Board of County Commissioners shall authorize annually out-of-state travel for the County Administrator and the Board of County Commissioners. e. After authorization, the Pre-Travel Expense Request form will be forwarded to the Finance Department by the Department. f. Travel approval may be obtained after the departure date in the following cases: 1. Due to emergency or unforeseen circumstances, travel was necessary, and it was not possible to obtain prior approval. 2. Due to last minute change, an alternate employee must substitute for another employee on an already approved travel. 4827-8502-6085.1 49409/0002 VM vm 68 3. In such cases, the Department Director must seek and obtain verbal approval from the appropriate Authorizing Official prior to travel departure. 4. Afterward, the Department will still be responsible for following, as soon as possible, the procedure outlined above for preparing a Travel Expense Request Form and forwarding them to the Finance Department. 5. The appropriate Authorizing Official must certify that verbal approval was given for the trip, and otherwise, process it in the same manner as a regular request. g. The allowable reimbursement for out-of-area travel will be the approved mileage rate for miles actually traveled when utilizing a personal vehicle, common carrier fares, automobile rental, tolls, taxi or transit fares, parking fees, private charters, lodging, meals, phone and telegraph fees, and conference fees. h. To the extent feasible, county fleet vehicles should be utilized for travel. Employees using personal vehicles for County business and travel are liable for accidents while driving to and from work or for any use not related to County business. Employees are liable for accidents while operating a County vehicle for any use other than official County business. i. Within five (5) business days of return from out of area travel, a Travel Voucher Form shall also be prepared for the employee's travel reimbursement, signed by the employee and Department Director and submitted to the Finance Department . Procedures - Education and Training Expenses Authorization a. Department Directors should include requests for education and training expenses as part of the budget process. b. To authorize educational expenses or reimbursements, an outside training application request must be submitted by an employee to his Department Director prior to enrollment in the training program. c. The application must be approved by the Department Director and then forwarded to the County Administrator including whether the training was approved in the budget process and, if not, justification for the training and how it will benefit the County. d. If approved by the County Administrator, the Department Director must submit a copy of the approval and application to the Finance Department. e. Educational expenses and reimbursements will be handled the same as outside purchases under Section 7. f. The expenses or reimbursements will be charged to the departmental accounts “Educational Expenses.” The employee will be listed as the vendor for any reimbursable expenses, other than travel expenses, or for a tuition refund. g. The employee or their department will be responsible for making all appropriate arrangements for the training. Any travel expenses associated with an educational leave must be handled separately as per Section 20.2 and Section 20.3. 4827-8502-6085.1 49409/0002 VM vm 69 h. The Purchasing Division will be responsible for preparing a purchase order form to encumber all properly authorized educational reimbursements, arrangements, and refunds. Procedure - Organizational Memberships a. As part of the budget preparation process, a department should budget for organizational memberships as appropriate. b. To authorize an organizational membership, a department will prepare a Check Request Form and submit it to the Finance Department for the membership dues or they may be paid by purchasing card, if the amount is within purchasing card limits. Procedure - Subscriptions a. As part of the budget preparation process, a department should budget for subscriptions as appropriate. b. Payment for subscriptions shall be done by a Check Request Form or they may be paid by purchasing card, if the amount is within purchasing card limits. SECTION 22 - MISCELLANEOUS OBLIGATIONS 22.1 MISCELLANEOUS TRANSACTIONS It is recognized that there are certain transactions which are unique in nature, and therefore, cannot be handled through processes described in the Manual. These transactions shall be referred to as miscellaneous obligations, including but not limited to those listed below. Procedures for these transactions will be established by the County Administrator, in coordination with the Finance Director and the County Attorney: a. The acquisition of real property, such as land, easements, rights-of-way, existing buildings, or improvements, resulting from negotiations and approved by the Board. b. The payment of court-ordered fines and judgments, resulting from litigation, to which the County is a party. c. The payment of fines to state and federal agencies which the County Attorney and County Administrator have determined to be the responsibility of the County. d. Any exceptional disbursement as authorized by the Board of County Commissioners. e. The payment of court-ordered fees, resulting from the judicial process, processed by the Clerk of the Court, and recorded against the budget for fees. For such fees, the County is only the public taxing agency responsible for supporting the judicial system. f. Cash transfers and investment transactions for fiscal management purposes, processed through the Finance Department, and against general ledger accounts. g. The payment of accrued or current liabilities already charged against the budget, approved by OMB, processed through the Finance Department, and recorded against general ledger accounts. h. Debt service payments approved by OMB, processed by the Finance Department and charged against budgetary accounts. 4827-8502-6085.1 49409/0002 VM vm 70 i. Refunds of current or prior year revenues charged against budgetary accounts. j. Grant disbursements to federal, state, or local government agencies, or to private groups or agencies. k. Disbursements to County Officers of funds budgeted for their requisition and use. l. Inter-fund or interdepartmental transfers or reimbursements within or among County Departments. m. Aid disbursements for JPTA participants, housing and rental subsidies, hospital indigent payments or other welfare and medical assistance. n. Payments for insurance including, but not limited to, liability, property, medical and workers compensation insurance or payments from any loss fund established for such purpose. o. Payments for utilities, advertising, toll charges and postage. Procedure - Miscellaneous Obligations: a. Miscellaneous obligations will be processed in the Finance Department. b. The Finance Department will make the appropriate disbursements for such obligations. c. The Finance Director will establish the procedures for the processing of such disbursements. d. The authorization levels and requirements for miscellaneous obligations when submitted on a Check Request Form are as follows: 1. For the acquisition of real property, the County Administrator must certify the Board approval of the acquisition and the date of the Board's action. 2. For grant disbursements to private groups or agencies, there must be grant agreement approval by the Board of County Commissioners and the grantee. Such a Grant Agreement will be treated the same as a Contract under Section 16 of this manual. 3. The adopted or amended budget shall be considered as authorization for debt service obligations, for County Officers requisitions, and for grant disbursements to other government agencies. 4. For the payment of court-ordered fines or judgments, in addition to proper authorization, the submitting Department must indicate the case title and number on the form. SECTION 23 - CAPITAL ASSETS 23.1 COUNTY OWNED PERSONAL PROPERTY Any equipment not incorporated into a facility, purchased with an individual value of $1000 or more (or as established by Rule of the Chief Financial Officer, Rule 69I-73.002) and having a projected useful life of one (1) year or more, is considered Tangible Personal Property. All land, buildings, and improvements are considered real property. Both Tangible Personal Property and real property are considered capital assets. 4827-8502-6085.1 49409/0002 VM vm 71 23.2 ACQUISITION OF CAPITAL ASSETS a. The County Administrator or designee should include the purchase of capital assets during the annual budget preparation. b. If the capital asset increases in cost after budget approval by the Board, the County Administrator or designee shall have the authority to approve the purchase, if funds are available, up to $50,000. c. Requests for capital assets not included in the budget process must be approved by the County Administrator. The requesting Department Director must provide a justification and identify available funding in the department budget. If approved by the County Administrator, proposed purchase of capital assets greater than $50,000 must be approved by the Board. d. A physical inventory of all Tangible Personal Property will be conducted and updated annually, and surplus property disposed of in accordance with current state laws. Real property will be inventoried as outlined in procedures established by the Finance Department. e. Donated property with a value of $1,000 or more, based on its current market value, will be included in the requirements of this section. 23.3 DISPOSITION OF CAPITAL ASSETS The disposition of capital assets shall be in accordance with Section 274.06, Florida Statutes. The County Administrator may transfer assets that have been declared surplus to a local nonprofit organization or governmental entity without competitive bidding. 23.4 HARDWARE/SOFTWARE The County Administrator or designee is responsible for all County computer and telephone equipment, software, computer security, data and voice circuits, and has final decision making authority over all computer-related purchases in accordance with signature authority. Procedure – Acquisition of Capital Assets a. The purchase of capital items should be included in the preparation of each department, division or office budget. b. If the capital item, including hardware and software is approved in the annual budget, the purchase may proceed without the required signature approvals. The User Department shall initiate the process and include a copy of the approved itemized budget. c. If the capital item is not included in the approved annual budget, the Requesting Department shall submit an Equipment Request Form, to the Management and Budget Director. If approved by the OMB Director, the form shall be submitted to the County Administrator for final approval. All Equipment Request Forms must be approved by the OMB Director prior to being submitted to the County Administrator for approval. 1. If approved by the County Administrator, purchases which exceed $50,000 must also be approved by the Board. d. All purchases of hardware and software, including those approved in the budget, must be reviewed and approved by Information Technology prior to purchase. This include the purchase of hardware, software, peripherals, upgrades, licenses, data and voice circuits, and any item that is connected to the County network or a stand-alone computer. This 4827-8502-6085.1 49409/0002 VM vm 72 also applies to donated equipment and equipment valued below $1,000. Computer related purchase requests will be reviewed with consideration of the following items: 1. Intended usage 2. Initial and ongoing training requirements 3. Compatibility and adherence to County standards 4. Maintenance, repair, and support requirements 5. Cost/benefit relationship, inclusive of the total cost of ownership 6. Security 7. Availability of alternative solutions 8. Budgetary constraints 9. Other considerations related to County-wide goals, policies, or benefits e. To purchase capital items, the Requesting Department will enter a requisition into the computer system and forward a hard copy to the Purchasing Division with the required approved equipment request form. The requisition shall contain a detailed description of the item, Equipment Request number assigned by OMB (if applicable) and the date of approval. f. After receiving Tangible Personal Property item, the Requesting Department will send the invoice (with payment authorization), receiving copy of the Purchase Order, Property Acquisition/Disposition/Transfer Form and a copy of Board approval to the Finance Department (Equipment Only). The Capital Assets Custodian (Purchasing Division) will place an inventory tag on all Tangible Personal Property. Procedure - Disposition of Capital Assets a. Transfers within a department must be approved by the Department Director and documented on the Acquisition/Disposition/Transfer form. b. All transfers of Tangible Personal Property must be submitted to the Purchasing Division and all transfers of Real Property must be submitted to the Office of Management and Budget (OMB), on a Property Acquisition/Disposition/Transfer Form with the proper authorization. c. Before an item of Tangible Personal Property is removed from service, the Purchasing Division must be notified of the Department’s desire to dispose of the item. Purchasing will instruct the Requesting Department on where to deliver the equipment. d. Before a real property item is removed from service, OMB must be notified of the Department’s desire to dispose of the item. At that time, OMB will provide further instructions to the Requesting Department. All dispositions of capital assets must be approved by the Department Director. e. The Purchasing Division and/or OMB will attempt to find another department with a need for the items to be disposed of prior to removing the item from the Capital Asset Inventory. f. The Purchasing Division and/or OMB will seek approval from the Board of County Commissioners to remove the item from the Capital Asset Inventory if the item cannot be utilized elsewhere in the County. g. The item will be disposed of in accordance with Section 274.06, Florida Statutes. 4827-8502-6085.1 49409/0002 VM vm 73 h. Before Tangible Personal Property and Real Property paid for by a grant is disposed of, the User Department must confirm any requirements of the grantor, which may include return of the property to the grantor. GENERAL PURCHASING PROCEDURES Procedures – Requisition Authorization a. The authorization by a Department Director will indicate to the Purchasing Department that the Authorizing Official is attesting to the availability of funds for the purchase and to the accuracy of all entries on the electronic requisition form. b. The authorization for an electronic requisition form must be given at the lowest appropriate level as designated in Section 6.1 above, with exceptions provided in policy but need not be given by a higher level. Authorization may be given at a higher level if the higher level official is one initiating the electronic requisition form. c. The authorization level required on an electronic requisition form will be based upon the estimated total cost of the purchase. If the actual cost of the purchase exceeds the estimate and exceeds the level of authorization given, the form will be returned for the appropriate higher-level authorization prior to ordering the requested items or service. d. An authorization must be given by affixing the signature of the Authorizing Official to the form. e. To establish or revoke Requisition "Authorization" for any employee, a Signature Authorization Form must be completed and submitted to the Purchasing Division for each employee. 1. The form must show the signature and title of the authorized employee. 2. Any Special Authorization for the employee must be indicated on the form. 3. The authorization for any Departmental Employee must be signed by the Department Director, and for a Department Director by the County Administrator. f. Each Department must have a minimum of one authorized Requisitioners for all levels of requisitions at any time, thus designating a permanent record of an authorized individual in the absence of the Department Director. In the case of absence of both people, a Temporary Signature Authorization Form shall be circulated. Procedure - Requisition Submission a. After preparation and authorization, a hard copy requisition form must be submitted to the Purchasing Division for all purchases exceeding $15,000. b. A copy of the form should be retained by the Department submitting it. c. To facilitate fiscal year end close out, no electronic requisitions may be submitted by a Department during the last 15 days of the fiscal year except for Emergency Purchases. The actual cutoff date will be established by the Purchasing Division each year. All departments will be notified. 4827-8502-6085.1 49409/0002 VM vm 74 d. The Department may enter in the appropriate box on the form any unique internal code number as its own reference number. Procedure - Requisition Review a. Upon receipt of a requisition form, the Purchasing Division will review the form to determine proper preparation and authorization. b. The Purchasing Division will return, to the submitting Department, any requisition form that is: 1. Incomplete 2. Unauthorized 3. Authorized by an unauthorized person, 4. Involves a pre-purchase or other violation of County policies or procedures. c. The annual budget approved by the Board of County Commissioners is the Board's authorization for all purchases of capital equipment and improvements, and therefore permission to advertise for purchases is granted at time of budget approval. d. The proper authorization as provided in Section 6.1 is the Purchasing Division's authorization to process the requisition and make a purchase. e. All after-the-fact requisitions must be authorized by the County Administrator. The requesting Department Director shall send a memorandum to the County Administrator explaining the reasons for the after-the-fact requisition. Procedure - Purchase Order Preparation a. A purchase order form will be prepared by the Purchasing Division for all purchasing transactions on the County's financial records. b. After receipt of a requisition form, the selection of the vendor and the award of the purchase, the Purchasing Division will complete and distribute the purchase order. c. The Purchasing Division will distribute the final version of the completed purchase order form. 1. The first copy of the document shall be sent to the vendor by the Requesting Department. 2. The second copy of the document will be sent to the Finance Department. 3. The third copy of the document will be retained by the Purchasing Division for reference. 4. The fourth copy of the document will be sent to the Requesting Department and will serve as the Department's file copy. 5. The fifth copy will be for receiving and payment purposes. 4827-8502-6085.1 49409/0002 VM vm 75 Procedure - Purchase Order Changes a. If a Department desires to cancel or change a purchase order, the Department must prepare and submit a Purchase Order Change Form to the Purchasing Division. b. The Purchase Order Change Form is a 3-part paper document, which will be typed when prepared. The change order must be approved by the Purchasing Division prior to the change being effective. Blank, pre-numbered forms will be issued by the Purchasing Division. 1. By preparing the Purchase Order Change Form, the Department may: 2. i. Cancel a purchase order; ii. Change the account number the purchase order will be charged to; iii. Increase or decrease the amount of the purchase order; c. An increase in excess of the original authorization may require the higher-level authorization on the form. To complete the preparation of the Purchase Order Change Form, the Department must acquire the appropriate authorization for the form prior to submitting the form to the Purchasing Division d. When making a final payment and/or closing out a purchase order, a decrease is not necessary. e. After preparation and authorization, the Purchase Order Change Form, all copies, will be submitted to the Purchasing Division. f. Upon receipt of a Purchase Order Change Form, the Purchasing Division will review the form to determine proper preparation and authorization. g. After review, the Purchasing Division will process all properly prepared and authorized Purchase Order Change Forms. h. The Purchasing Division shall have the authority to accept or reject the proposed changes as it may affect any outside vendor or purchasing transaction agreed to with any outside vendor. i. The Requesting Department will inform the vendor of any change in the transaction of which will affect the vendor. j. If the proposed change is approved, the Purchasing Division will indicate such by affixing an authorization signature and distributing the copies of form. k. If the proposed change is not approved, the Purchasing Division will return the form to the Requesting Department with an explanation of why the change was not approved. Disputes between Purchasing Division and the Requesting Department will be resolved by the OMB Director. Procedures – Receiving Orders a. A Department should receive ordered items or services at the place and within a reasonable time as indicated on the completed and encumbered Purchase Order Form and/or Contract Documents. 4827-8502-6085.1 49409/0002 VM vm 76 b. It is the responsibility of the Department to inform the Purchasing Division of any unreasonable delay in delivery. c. The Department will assist the Purchasing Division in contacting the vendor regarding any such delay. d. The Receiving copy of the completed Purchase Order returned by the Purchasing Division shall serve as a receiving report. e. For a Multiple Purchase Order, the Department should make additional copies as additional receiving reports for each delivery. f. All receiving reports should be placed in a "Receiving" File by the Department pending the delivery of the ordered items or service. Procedures- Payment Authorization for Orders a. To initiate payment for a received order from an outside vendor, the Department will submit the invoice for the order to the Finance Department. b. If the order was incomplete, and only a partial shipment was accepted, the Department will authorize the partial payment on one of the copies made of the receiving report and submit to the Finance Department. The remaining copies will be held until future shipments come in. Upon receipt of last shipment, the original copy should be marked "Final Invoice,” authorized for payment, and submitted to the Finance Department. c. See Section22 for payment of items using Check Request Form. Procedures - Payment for Orders and Non-construction Services After receiving a receiving report or payment request, the Finance Department will process it for payment in accordance with the appropriate procedure for processing invoices. a. Payment checks will be issued by the Finance Department weekly on Tuesday. 1. To have a check issued for an order, the receiving report/payment request and invoice must be submitted to the Finance Department by noon on the preceding Thursday. b. It shall be County policy that vendors should mail Invoices directly to the Department. All invoices shall be marked as to the date of receipt. 1. The Finance Department will maintain all invoices on file for use in processing payments for orders. c. Payment shall be made within forty-five (45) days of receipt of the invoice by the department. d. If a proper invoice is not received by the County, payment shall be made within forty-five (45) days from the date: 1. On which delivery of personal property is accepted by the County; 2. On which services are completed; 4827-8502-6085.1 49409/0002 VM vm 77 3. On which the rental period begins; or 4. On which the County and the vendor agree in a contract, which may provide dates relative to payment periods. e. If the terms under which a purchase is made allows for partial deliveries and a proper invoice is submitted for such a partial deliver, then the time for payment for such partial delivery shall be calculated from the time of such partial delivery and the submission of such invoice as provided above. f. All payments due from the County not made within the time specified within this section shall bear interest from thirty (30) days after the due date at a rate of one percent (1%) per month on the unpaid balance. Any overdue period of less than one (1) month shall be considered as one (1) month in computing interest. Unpaid interest shall compound monthly. With respect to each past due payment, interest shall cease to accrue after interest on that payment has accrued for twelve (12) months. For purposes of this section, one (1) month shall constitute a period beginning on any day of one (1) month and ending on the same day of the following month. g. No contract between the County and a vendor shall prohibit the vendor from invoicing the County for late payment interest allowable under this section. h. Any dispute involving an Invoice shall be resolved in the following manner: 1. In any case in which an improper invoice is submitted by a vendor, the County Project Manager or Designee, within ten (10) days of receipt of the improper invoice, shall notify the vendor that the invoice is improper and indicate what corrective action on the part of the vendor is needed to correct the invoice, 2. In the event a dispute occurs between the County Project Manager and a vendor, the vendor may appeal the decision of the County Project Manager to the County Administrator or Designee no later than forty-five (45) days after receipt of the proper invoice by the Finance Department. The appeal shall be filed with the County Administrator or Designee in writing and shall state the nature of the dispute and the vendor’s requested relief. Within five (5) days of receipt of the appeal by the vendor, the County Project Manager shall provide the County Administrator or Designee with a written report on the dispute. The County Administrator or Designee may request additional information from the vendor and the County Project Manager as he/she feels necessary. The County Administrator or Designee shall issue a written decision on the dispute within sixty (60) days of the date of the receipt of the proper invoice by the Finance Department. 3. If the County Administrator or Designee resolves the dispute in favor of the County, interest charges shall begin to accrue fifteen (15) days after the issuance of the County Administrator or Designee’s final decision. If the dispute is resolved in favor of the Vendor, interest shall begin to accrue as of the original date the payment became due. 4. During November of each year, Finance shall notify the Director of Management and Budget of any interest paid during the preceding fiscal year if the total amount of such payments exceeded two hundred and fifty dollars ($250.00). 5. During December of each year, the Office of Management & Budget shall report to the Board of County Commissioners the number of interest payments made by the County 4827-8502-6085.1 49409/0002 VM vm 78 under this section during the preceding fiscal year and the total amount of such payments, if the payments exceeded two hundred and fifty dollars ($250.00). Procedure - Payment Limits a. The Finance Department may not make any payment on any purchase that exceeds the payment limit on a Purchase Order or the contract amount of a contract. b. For a Purchase Order only, the payment may exceed the Purchase Order plus 10% or $100.00 whichever is less, is the payment limit. c. For a Contract, the Contract amount is the firm payment limit. d. When an excess payment over the payment limits or contract amount is invoiced by the vendor, the Finance Department will notify the Purchasing Division and Department Director. e. If the Department wishes to pay the excess amount, it must prepare and submit a Purchase Order Change Form, as per Purchase Change Order Procedures, and/or a Contract Amendment or Change Order approved by the Board of County Commissioners as per Section 17.3 of this manual. f. After the Purchase or Contract Amount has been increased to the appropriate figure for the higher than expected invoice, the Finance Department may then make payment up to the appropriate amount. g. If the Purchase or Contract Amount is not increased, the Finance Department may make payment only up to the originally authorized payment limit or Contract Amount. Procedure - Material Center a. The Material Center shall serve as the central reproduction facility for the County when reproducing large documents and for high volume reproduction. b. The Purchasing Division will publish and distribute to all County Departments a Material Center Price List showing the charge for each service available from the Material Center. c. New items may be added to the Material Center Price List as need arises depending upon demand. d. The Material Center Price List will be updated periodically either by supplemental sheets or by the issuance of an addendum to the list. Procedure - Authorization for Material Center Use a. To authorize the use of the Material Center, a Department Director/Division Manager must prepare and submit to the Material Center a list of authorized employees who may charge items to the Department. b. This list must be renewed at least annually. c. For billing purposes (inter-fund transactions), the Department must also prepare and submit a Reproduction Request Form to the Material Center to reproduce items. 4827-8502-6085.1 49409/0002 VM vm 79 Procedure - Scheduling Work at the Material Center a. Any authorized Departmental Employee may request reproduction services as needed from the Material Center by telephone or in person. Such orders shall be followed up by a Reproduction Request Form. b. The Material Center will deliver items to Departments as time permits. Otherwise, Departments will have to pick up items from the Material Center. c. Any employee receiving items from the Material Center will sign for each withdrawal, at that time, on the bottom of the Reproduction Request Form. The Material Center will retain the Request Form for each department’s printing request. Procedure - Payment for Material Center Orders a. A Department agrees to pay for work done by the Material Center at the time the work is performed. This consent shall be implied by the completion and submittal of the Reproduction Request Form, and subsequent signature upon receipt of reproduced items. b. Upon receipt of the Reproduction Request Form for printing services, the Material Center shall bill the Requesting Department on a monthly basis. c. The Department will indicate on the Reproduction Request Form the appropriate accounts to be charged for the monthly transaction. d. Each Department will receive a monthly invoice of all Material Center transactions for verification. e. Any disputed charge will be brought to the attention of the Director of Management and Budget. The Director of Management and Budget shall resolve any disputed items and make adjustments to the billings as is necessary. Procedure – Property Less than $1,000.00 (Procedure approved 10/9/13) It is the duty and responsibility for all departments to retain a record of all items purchased that cost between $100.00 and $999.99. A copy of this record is to be sent to the Purchasing Division. At the end of each Fiscal Year, the list is to be physically verified and the additions, deletions, or missing items are to be recorded. A copy of this physical inventory, along with an explanation of any discrepancy is to be sent to the Purchasing Division. 4827-8502-6085.1 49409/0002 VM vm 80 Attachment A St. Lucie County Board of County Commissioners Procurement Policies and Procedures for Community Development Block Grant Programs and Projects 4827-8502-6085.1 49409/0002 VM vm 81 TABLE OF CONTENTS Page I. General Policy 77 A. Applicability 77 B. Procurement Law and Regulations 77 II. Procurement Standards 77 A. General Standards 77 B. Competition 77 III. Procurement Administration 78 A. Efficiency Review 78 B. Performance Review 78 C. Records 78 D. Written Agreements 78 E. Authorizations 79 IV. Procurement Classifications 79 A. Simple 79 B. Intermediate 79 C. Formal 79 V. Solicitation and Award 80 A. Invitations for Bids 80 B. Request for Proposals (RFP) 80 C. Advertising 81 D. Evaluation 82 E. Multiple Service Awards 82 VI. Exceptions 83 VII. Affirmative Action/Equal Opportunity 83 VIII. Contracts 84 IX. Code of Conduct 84 X. Protests 84 4827-8502-6085.1 49409/0002 VM vm 82 I. GENERAL POLICY A. APPLICABILITY These procurement policies establish procedures and guidelines that shall be used for the purchase or procurement of personal property, supplies, equipment, and services for CDBG and other federally funded grants and awards. All procurement shall be accomplished in compliance with applicable state and federal law. The purpose of these procedures is to facilitate the determination of the most efficient and economical means of securing commodities and services without sacrificing necessary control and good purchasing practice. B. PROCUREMENT LAW AND REGULATIONS Laws relative to the procurement process, in general, may be found in Chapter 287, Fla. Statutes. The provisions of these procurement procedures shall not be construed to conflict with or supersede the requirements of S. 287.055, Fla. Statutes, 24 Code of Federal Regulations (CFR) Section 85.36, or any other applicable state or federal laws or regulations. Future state or federal regulations applicable to procurement under the CDBG Program shall supersede and/or supplement this policy. II. PROCUREMENT STANDARDS A. GENERAL STANDARDS Except as otherwise provided by law, procurement awards shall be made only on the basis of requirements and evaluation factors that are directly related to the price, quantity, or quality of the commodities or services or the ability of the prospective supplier or contractor to perform under the agreement. Procurement procedures prohibit the dividing of the procurement of a good or service into a number of smaller groups in order to avoid the more stringent requirements of a higher dollar. In addition, the use of cost plus percentage of construction cost methods is prohibited. The sub grantee shall follow the provision of 24 C.F.R. S. 85.36(e); the sub grantee take all necessary affirmative steps to assure that minority firms, women's business enterprises and labor surplus area firms are offered the opportunity to participate to the maximum practicable extent shall be adhered to. B. COMPETITION All procurement transactions will be conducted in a manner providing full and open competition consistent with standards of Section 85.36 of the C.F.R. Some of the situations considered to be restrictive of competition include but are not limited to: 1. ; placing unreasonable requirements on firms in order for them to qualify to do business 2. requiring unnecessary experience and excessive bonding; 3. noncompetitive pricing practices between firms or between affiliated companies; 4. noncompetitive awards to consultants that are on retainer contracts; 5. organizational conflicts of interest; 4827-8502-6085.1 49409/0002 VM vm 83 6. specifying only a "brand name" product instead of allowing "an equal” product to be offered, and; 7. any arbitrary action in the procurement process. The inability to obtain more than one bid, price quote or proposal shall not prohibit the approval of a purchase if other prospective vendors or contractors have been given adequate notice of the procurement and an opportunity to participate, and have declined to submit bids, proposals or price quotes. The County may accept one bid as long as it has met all CDBG procurement requirements and procedures. The declaration to submit need not be in writing. The use of a cost plus percentage of cost and percentage of construction cost methods is prohibited in all CDBG procurement. III. PROCUREMENT ADMINISTRATION A. EFFICIENCY REVIEW The Community Services Director, other authorized representative or employee who approves each purchase shall review the proposed procurement to avoid unnecessary or duplicative items. In order to obtain a more economical, efficient or effective purchase, consideration shall be given to: 1. breaking out or consolidating purchases, 2. lease versus purchase alternatives, 3. interlocal agreements for purchases or use of common goods, 4. use of federal or state surplus property, 5. value engineering reviews, and 6. use of state or federal contracts for materials and/or services. B. PERFORMANCE REVIEW Contracts shall specify a contract manager, appointed by the local governing body, to ensure that the contractor performs in accordance with the terms, conditions and specifications of their contract or purchase order. C. RECORDS Appropriate arrangements shall be made for the generation and maintenance of all files, records, and documentation necessary to evidence the compliance with all requirements as delineated in this document. All procurement shall comply with good purchasing practices and with applicable local, state and federal regulations, in a manner consistent with this document. A complete set of records shall be maintained by the entity responsible for the procurement for a minimum of 6 years. D. WRITTEN AGREEMENTS Any formally bid procurement of commodities or services shall be evidenced by a written solicitation embodying all provisions and conditions of the procurement. This requirement for written documentation may be met through preparation of a letter on municipality or vendor letterhead, signed by the vendor and 4827-8502-6085.1 49409/0002 VM vm 84 appropriate elected and/or appointed official, stating such conditions and terms as price, number of units of purchase (e.g., ea., cs., bx., etc.) or product, delivery date, or when service is to begin, point of delivery, specifications, etc. Any price quotes, warranties, guaranties, certifications or contracts shall be attached and filed. E. AUTHORIZATIONS Purchase orders or contracts shall be issued for all purchases and must be signed by either the Board of County Commissioners, the Director of Management and Budget or the Department Director approving the purchase. The local governing body must authorize all purchases in excess of $50,000. IV. PROCUREMENT CLASSIFICATIONS The following classifications are established: PROCUREMENT PROCUREMENT DESCRIPTION PROCUREMENT CLASS RANGE METHOD____ 1. $ 1- 5,000 simple procurement price checks/ simple purchase 2. $5,001-50,000 intermediate informal procurement competition, written quotes 3. $ Over 50,000 formal formal competition procurement (bids or proposals)/ contract __________________________________________________________________________ A. SIMPLE PROCUREMENT (NOT MORE THAN $5,000) Procurement is accomplished through simple purchase. Simple procurement procedures are those relatively simple and informal procurement methods that are sound and appropriate for a procurement of supplies or other property, or services. A reasonable and adequate number of price checks or quotes should be made by phone, personal inspection, and discussions with vendors, etc., to ensure the highest quality product or service is obtained for the least cost to the procuring entity. B. INTERMEDIATE PROCUREMENT ($5,001-$25,000) Procurement is accomplished by obtaining three written price quotes, when possible or through informal negotiation if the item or service is expected to cost less than $25,000. If the actual cost exceeds $25,000, then the procurement must go to formal procurement, as outlined in Section D below. Files shall contain documentation of competition. No advertising is required but all procurement shall be evidenced by a written agreement embodying all provisions and conditions of the procurement. This requirement for written agreement may be met through preparation of a letter on municipality or vendor letterhead, signed by the vendor or appropriate elected and/or appointed official or representative, stating such conditions and terms as price, number of units or purchase (e.g., ea., cs., bx., etc.) or product, delivery date or when 4827-8502-6085.1 49409/0002 VM vm 85 service is to begin, point of delivery, specifications, etc. Any price quotes warranties, guaranties, certifications or contracts shall be attached and filed. C. FORMAL PROCUREMENT (REQUIRED OVER $25,000) Formal Procurement includes the acquisition of commodities or securing services that are expected to cost $25,000 or more, and requires formal advertising and submission of competitive sealed bids, sealed proposals, or competitive negotiation. Sealed bids are publicly solicited and a firm-fixed-price contract (lump sum or unit price) is awarded to the responsive bidder who conforms to or exceeds all material requirements, terms and conditions of the invitation for bids, and presents the lowest reasonable price that meets requirements and needs. Sealed Bidding shall be used unless the Board of County Commissioners certifies in writing that sealed bidding is not practicable or advantageous, in which case procurement shall be based on sealed proposals, or on competitive negotiation when required by Florida Statutes. The technique of competitive negotiation is normally conducted with more than one source submitting a proposal for services with either a fixed-price or cost-reimbursement type contract awarded. It is generally used when conditions are not appropriate for the use of sealed bids or proposals indicating fees. Florida Statutes shall determine the manner in which such negotiations are performed and the types of contractual services, which are to be procured in this manner. Any contract in excess of $100,000 will require a performance bond and must adhere to all Section 3 regulations. Noncompetitive negotiation shall be used when other types of procurement are infeasible (see Section VI). V.SOLICITATION AND AWARD A. INVITATIONS FOR BIDS 1. The invitation to bid is used when the procuring entity is capable of defining the scope of work for which a contractual service is required or when the procuring entity is capable of establishing precise specifications defining the actual commodity or group of commodities required. 2. Invitation to bid shall be a written solicitation for sealed competitive bids with the title, date, and hour of the public bid opening designated and which specifically defines the commodity, group of commodities, or services for which bids are sought. It includes instructions describing all conditions for bidding and shall be distributed (or available) to all prospective bidders simultaneously. 3. Sealed bids are required to be received at a specified place not later than a specified time and date. Failure to comply with any instructions pertinent to the delivery of such bids may result in their being rejected. B. REQUEST FOR PROPOSALS (RFP) A request for proposals (RFP) shall be a written solicitation for sealed proposals with the title, date, and hour of the public opening designated. The request for proposals is used when (a) the procuring entity is incapable of specifically defining the scope of work for which the commodity, group of commodities, or contractual service is required and when it requests that a qualified offeror propose a commodity, group of commodities, or contractual service to meet the specifications of the solicitation document, or (b) when 4827-8502-6085.1 49409/0002 VM vm 86 quality of performance is to be the primary factor for selection. With respect to competitive negotiations, the offeror shall negotiate a contract with the most qualified firm for professional services at compensation which the agency determines are fair, competitive, and reasonable. In making such determination, the agency shall conduct a detailed analysis of the cost of the professional services required in addition to considering their scope and complexity and shall refer to the provisions of S. 287.055, Fla. Statutes (1989). A request for proposals includes, but is not limited to, general information, applicable laws and rules, functional or general specifications, statement of work, proposal instructions, and evaluation criteria. Requests for proposals shall state the relative importance of price and any other evaluation criteria. C. ADVERTISING The advertisement must be written in a clear, concise manner and in a way, which would invite competitive bidding. The advertisement shall contain at least the following minimum information: 1. time, date and location for receiving and opening bids or proposals (the date shall not be less than five (5) days after the final advertisement is published), 2. general description of the commodity or item being requested, 3. where and how detailed specifications and bid forms (if applicable) may be obtained, 4. terms and conditions of the contract to be awarded, 5. criteria for selection of the vendor or contractor, including the relative weight to be given to the different factors, (See Appendix A). The solicitation of competitive bids or proposals for any project to cost more than $200,000 shall be publicly advertised at least once in a newspaper of general circulation in the county where the project is located at least 21 days prior to the established bid opening and at least 5 days prior to any scheduled pre-bid conference. For projects costing more than $500,000 shall be publicly advertised at least once in a newspaper of general circulation in the county at least 30 days prior to the established bid opening and at least 5 days prior to any scheduled pre-bid conference. The advertisement shall be published in at least one daily newspaper of general circulation in a nearby federal Office of Management and Budget (OMB) designated metropolitan statistical area (MSA). If the location, date, or time of the bid opening changes, written notice of the change must be given, as soon as practicable after the change is made, to all persons who are registered to receive any addenda to the plans and specifications. For those bids under the above amounts, any procurement which requires public notice in a newspaper based on the local CDBG procurement policy shall be published in a daily newspaper of general circulation in a nearby federal Office of Management and Budget (OMB) designated metropolitan statistical area (MSA. Alternatively, the county may substitute such notice with any solicitation procedure which generates at least three responsible and responsive bids or proposals which can be considered. Such procedure shall allow at least 12 days for receipt of the proposals or bids. Public notice should also include solicitation of minority owned business enterprise and women owned business enterprise (MBE/WBE) contractors. Sealed bids or sealed proposals will be received at any time during normal working hours prior to the time and date as specified. Each proposal shall be annotated with the time and date received. The bids 4827-8502-6085.1 49409/0002 VM vm 87 or proposals shall be placed in the applicable file and publicly opened and read at the time designated for the bid opening. D. EVALUATION The contract shall be awarded to the lowest responsible and responsive bidder or proposer whose bid or proposal most completely meets the requirements and criteria set forth in the invitation for bids or request for proposals. The term “responsible bidder or proposer" refers to the capability of a vendor or contractor to perform fully all aspects of the contract. Financial capability, integrity, and reliability of the bidder or proposer, all of which tend to ensure good faith performance, shall be a criteria in evaluation of responsibleness. The term “responsive bidder or proposer" means a bidder who has submitted a bid or proposal, which materially conforms to all provisions of the specifications and the invitation to bid or request for proposal. Evaluation criteria and requirements for bids set forth in the invitation for bids shall be used to determine the most responsible and responsive bidder. Award shall be made to the responsible individual firm whose proposal is considered most advantageous to the program, with price and other factors considered. In procuring services for grant administration, evaluations of vendors or service suppliers shall include a proven track record and sound reputation; adequate financial strength; high ethical standards; and a record of adhering to specifications, of maintaining shipping or service delivery schedules, and of giving a full measure of service. Consideration may also include the prospective contractor's records of past performance under CDBG grants. This factor is not meant to exclude consideration of new firms, but rather, to include past performance and experience as a potential criterion. All bidders will be notified that they were or were not selected for award of contract as soon as possible following the evaluation and decision process. E. MULTIPLE SERVICE AWARDS Vendors or service suppliers will be considered for multiple sources of supply or multiple services when it can be demonstrated that such vendors or services suppliers either are sole sources of the services or are the responsive proposer whose proposal is determined in writing as a result of a competitive process to be the most advantageous to local government. For each service listed in S. 290.047(5), Fla. Statutes (1989), when included in a multiple service contract, written determination of the need for a multiple service contract and the supporting documentation shall be maintained on file with the sub-grantee. 1. Any Request for Proposal which includes more than one service shall provide the following: a. Proposals may be submitted for one or more of the services b. Qualifications and proposals shall be separately stated for each service; c. The evaluation of the proposals shall be separated for each service. 2. A written evaluation, such as a ranking sheet or narrative, shall be prepared for each proposal, ranking or comparing each proposal to the criteria in the published Request for Proposals. 4827-8502-6085.1 49409/0002 VM vm 88 3. A separate professional services contract must be procured and executed between the local government and any professional services consultant for each CDBG sub grant. Each advertisement for procurement of CDBG professional services, except for application preparation, must identify either the CDBG funding cycle by federal fiscal year of the CDBG sub grant number. In the absence of any identifier, the procurement will be presumed to be for the CDBG funding cycle closest to the publication date of the advertisement or, if there is no advertisement, the date of receipt for proposals. 4. Each professional services contract must identify the CDBG sub grant number to which it is applicable. VI. EXCEPTIONS The non-competitive negotiation method of procurement is solicitation of a proposal from only one source; or after solicitation of a number of sources (documented), competition is determined inadequate (Refer to 24 C.F.R. S. 85.36 (d)(4). It may be used only: 1. When procurement or award of contract is infeasible under simple or intermediate procurement or through formal (sealed bid) competition; and 2. Under one of the following circumstances: a. The item is available only from a single source; or b. Public exigency or emergency exists such that the urgency for the requirement will not permit a delay incident to competitive bidding; or c. In the case where grant funds are being used, the federal or state (whichever is more stringent) grantor agency authorizes non-competitive negotiations; or d. After solicitation of a number of sources, competition is determined inadequate; or e. The contract item is available under a State of Florida Contract. 3. Department of Economic Opportunity (DEO) must provide written approval prior to the recipient awarding any contract exceeding $25,000 procures as a result of inadequate competition, a sole source, or a non-competitive procurement. For contracts below $25,000 the recipient’s files must document the justification for the procurement which complies with 24. CFR s. 85.36 (b) (4); and a cost analysis be performed verifying the proposed cost data, the projections of the data, and the . evaluation of the specific elements of cost and profits Emergency purchases over $15,000 and up to $25,000 shall be authorized by the County Administrator or designated alternate when, based on his/her decision, the delay incurred by following the normal procurement requirements would be detrimental to the best interests of the community. Emergency purchases over $25,000 shall be authorized by the Board of County Commissioners. VII. AFFIRMATIVE ACTION/EQUAL OPPORTUNITY The County is committed to eliminating discrimination based upon race, color, sex, national origin, familial status, age, or physical handicap. In grant programs, the County will comply with requirements of Section 3 (Use of the project area), Equal Employment Opportunity on Federally Assisted Construction Contracts, and Executive Order 11625 (Minority Business). Notice of the policy will be placed in plain sight on the 4827-8502-6085.1 49409/0002 VM vm 89 job location for the benefits of interested parties and all contractors and subcontractors so notified. Equal Opportunity posters will be displayed as required. The procuring entity will encourage the employment of local residents, especially those who have low-to- moderate income and those who are female and/or of a minority racial/ethnic classification. In accordance with the 1989 State Fair Housing Act (Fla. Statutes S. 760.20), the municipality and any contractors hired with CDBG funds shall not discriminate against any person in the terms, conditions, or privileges of sale or rental of a dwelling, or in the provision of services or facilities in connection therewith, because of race, color, national origin, sex, handicap, familial status, age, or religion. (See Section X on Protests for complaint procedures). The County will encourage and adhere to all federal requirements including, but not limited to: 1. Equal Employment Opportunity requirements 2. Copeland “anti-Kickback” Act; 3. Davis Bacon 4. Contract Work House and Safety Act; 5. Americans with Disabilities Act; 6. Other requirements set forth in any CDBG contract VIII. CONTRACTS All contracts procured with state or federal funds shall contain applicable provisions as required by Fla. Statutes (specifically S.287.058), Florida administrative rule, federal law, regulation or executive order. Provisions shall include, but not be limited to, such requirements as bonding, equal employment opportunity, contract termination, record retention, public access to records, reporting, remedies for breach, conflict of interest, labor standards compliance, pre- and post-audit requirements, and compliance with environmental laws. In addition administrative, contractual, or legal remedies where contractors violate or breach contract terms, and provide for sanctions and penalties as may be appropriate. Termination for cause and for convenience by the grantee or sub grantees including the manner by which it will be affected and the basis for settlement (All contracts in excess of $10,000). IX. CODE OF CONDUCT No employee, officer or agent of the procuring entity shall participate in the selection, award or procurement of an application, administration, engineering or construction contract if a conflict of interest, real or apparent, would be involved. Such a conflict would arise when (a) the employee, officer or agent, (b) any member of his immediate family, (c) his or her partner, or (d) an organization which employs, or is about to employ, any of the above, will receive a financial or other direct benefit of CDBG funds from the contract award. In any of these cases, the employee, officer or agent will abstain from voting on the award. Officers, employees and agents of the procuring entity will neither solicit gratuities, favor or anything of monetary value, nor accept any unsolicited gratuity, favor or gift valued above $25, from contractors or potential contractors, or parties to sub agreements. 4827-8502-6085.1 49409/0002 VM vm 90 Violation of this policy shall be subject to penalties, sanctions or other disciplinary action as permitted by state or local law. Upon conviction in a State Court of competent authority, a violator may be found guilty of a first-degree misdemeanor, punishable as provided in Fla. Statutes S.775.082 or S.775.083. X. PROTESTS Objection to procurement shall be issued, in writing, to the Purchasing Division within five (5) working days of purchase or selection to purchase under contract. A response shall be issued to the objecting party within five (5) working days. An objection shall be considered valid only if it discloses a violation of this policy. The County will notify the granting agency of all protests received. For employment discrimination, contact: The U.S. Equal Employment Opportunity Commission 2401 E. Street, N.W. Washington, D.C., 20507 1-800-872-3362 For housing discrimination, contact: Florida Commission on Human Relations , 325 John Knox Road, Bldg. FSuite 240 Tallahassee, Florida 32303 1-800-342-8170 4827-8502-6085.1 49409/0002 VM vm 91 4827-8502-6085.1 49409/0002 VM vm 92 4827-8502-6085.1 49409/0002 VM vm 93 4827-8502-6085.1 49409/0002 VM vm 94 4827-8502-6085.1 49409/0002 VM vm 95 4827-8502-6085.1 49409/0002 VM vm 96 4827-8502-6085.1 49409/0002 VM vm 97 4827-8502-6085.1 49409/0002 VM vm 98 4827-8502-6085.1 49409/0002 VM vm 99 4827-8502-6085.1 49409/0002 VM vm 100 4827-8502-6085.1 49409/0002 VM vm 101 4827-8502-6085.1 49409/0002 VM vm 102 4827-8502-6085.1 49409/0002 VM vm 103 4827-8502-6085, v. 1 4827-8502-6085.1 49409/0002 VM vm 104