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HomeMy WebLinkAbout16-023RESOLUTION NO. 16 — 023 A RESOLUTION AMENDING THE ST. LUCIE COUNTY MANUAL OF PURCHASING REGULATIONS; ADDING SECTION 13.7 TO PROVIDE PROCEDURES FOR FEDERAL TRANSIT ADMINISTRATION FUNDED PROJECTS; AMENDING CHAPTER 13 PROCEDURES TO ADD FEDERAL TRANSIT FUNDED PROJECT PURCHASING PROCEDURES 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 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. On October 20, 2015, the Board adopted Resolution No. 15-194 to amend Resolution 85-212, as previously amended, to further revise the Purchasing Policy Manual ("PPM"). 4. It is necessary to further amend the PPM to establish procedures for purchases using Federal Transit Administration ("FTA") funds. 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: Chairman Commissioner Kim Johnson Vice Chair Commissioner Chris Dzadovsky Commissioner Tod Mowery Commissioner Paula A. Lewis Commissioner Frannie Hutchinson PASSED AND DULY ADOPTED this 16th day of February, 2016. ATTEST: BOARD OF CI ST LUCIE Cpy IV, ��� BY: APPR, CORR AYE AYE AYE AYE ABSENT JNTY COM SIONERS ITY, FL,qR IqrA an TO F0RMAN"D County Section I: Overview, Purpose, Applicability and Definitions Overview The S t . Lucie County Transit Procurement Manual outlines the policies regarding the use, award, monitoring and reporting of procurement Contracts funded all or in part with Federal Transit Administration funds. The County routinely expends funds to purchase goods and services including, but not limited to, buses, bus parts, supplies, equipment, construction services and professional services. Purchases involving Federal funds are in compliance with Federal Transit Administration (FTA) Circular 4220. JF, Third Party Contracting Guidelines. The procurement procedures described in this document have been developed to assure compliance with these guidelines. This manual governs revenue Contracts, the consideration of proposals initiated by the County, and unsolicited proposals received by the County. The basic procurement objective is to secure the best goods and/or services at the lowest available price, consistent with quality requirements and delivery needs. The practice of competitive bidding, whether formal or informal, not only promotes obtaining reasonable prices, but also guards against improper practices. Failure to appropriately procure goods and services funded by the FTA could seriously affect the County's receipt of Federal funding. All County staff involved with procurement activities must familiarize themselves with this manual, FTA regulations and other applicable documentation as promulgated. Purpose This manual sets forth the requirements that t h e C o u n t y must ad here to in the solicitation, award, and administration of its third party Contracts for goods and services. These guidelines are meant to: a) Formalize practices which insure that the County's interests are protected; b) Assure that all federal and state procurement laws and regulations are followed and c) Communicate policies; give guidance to purchasing personnel and to others with delegated purchasing authority. Applicability The guidelines denoted herein apply to all commodity, service and professional service Contracts procured by the County. These guidelines adhere to the Federal Procurement Requirements outlined in FTA Circular 4220.1 F as a way of ensuring compliance with FTA requirements in all the County's procurement activities. The County shall not be precluded from adopting additional requirements for particular Contracts relating to the matters covered by this manual so long as such additional requirements are not in conflict with the requirements outlined in FTA Circular 4220.1 F. 2 Definitions When used in these guidelines: Advertisement: The publication of a notice of procurement on the County website, DemandStar website and legal advertisement section of local newspaper when deemed necessary to insure greater exposure and interest. Best Value: A selection process in which proposals contain both price and qualitative components, and award is based upon a combination of price and qualitative considerations. Qualitative considerations may include technical design, technical approach and quality of proposed personnel and/or management plan. The award selection is based upon consideration of a combination of technical and price factors to determine (or derive) the offer deemed most advantageous and of the greatest value to the County. Brand Name: A name of a product or service that is limited to the product or service produced or controlled by one private entity or by a closed group of private entities. Brand names may include trademarks, manufacturer names or model names/numbers that are associated with only one manufacturer. Commodities: Standard articles of commerce in the form of material goods, supplies, products or similar items. Commodities do not include technology. Federal regulations permit grant applicants, such as the County, to incur project costs before receiving formal approval or grant awards. It is the practice of the County not to incur costs or entertain the award of Contracts for capital projects to be funded in whole or in part with Federal aid unless Federal aid supporting the projects is dedicated in an adopted Federal budget as a formula appropriation to the County or as an earmarked appropriation to the County. Construction: The supervision, inspection and building of, and all expenses incidental to the acquisition, construction, repair, painting or reconstruction of facilities and equipment for use by the County. Contractor: Any person, partnership, private corporation or association: selling materials, equipment or supplies, or leasing property or equipment, to the County for constructing, reconstructing, rehabilitating or repairing buildings or other improvements for or on behalf of the County rendering or providing services to the County pursuant to a Contract. Contracts or Procurement Contracts: A mutually binding legal relationship obligating the seller to furnish the supplies or services (including construction) and the buyer to pay for them. Contracts would include bilateral instruments, awards and notices of awards; job orders or task assignment letters issued under basic ordering agreements; letter Contracts, orders, such as purchase orders, under which the Contract becomes effective by written acceptance or performance; and bilateral Contract modifications. The parties to a Contract must possess the legal capacity to enter into the Contract, and they must assent to the terms of the Contract. Verbal agreements are not recognized as Contracts. Contract Administrator: This individual will be a County employee and will be the primary contact with the Contractor and shall establish frequent and direct communications with the Contractor. In most cases, this individual will be either the County Purchasing 3 Manager or the staff member who led the procurement process for the project. Cost Reimbursement (CR) Type Contract: A general compensation arrangement which requires the County to pay the Contractor a fixed fee plus all allowable actual costs (as established by predetermined cost principles and rates) provided such costs and fee do not exceed the final negotiated Contract price, as incurred by the Consultant in performing the "agreed to I I Scope of Work. This type of Contract is appropriate for qualifications based procurements and negotiated procurements based on a Scope of Services rather than detailed specifications. Design -Bid -Build: The project delivery approach where the grantee commissions an architect or engineer to prepare drawings and specifications under a design services Contract, and separately Contracts for at -risk construction, by engaging the services of a Contractor through sealed bidding or competitive negotiations. Design -Build: A system of contracting under which one entity performs both architectural/engineeri ng and construction under one Contract. Design Specifications: Specifications based on the design of a product or service. Typical design specifications may include dimensions, materials used, commonly and competitively available components, and non-proprietary methods of manufacturing. Disadvantaged Business Enterprise: A small business concern as defined by 49 CFR Part 26 and has been certified as such by the Unified Certification Program (UCP). Emergency Procurement: The procurement of goods or services under circumstances where a delay in procurement may result in danger to employees or the public, damage to the County facilities or equipment, or an impediment, delay or danger to the business operations of the County. Federal Transit Administration: FTA is one of ten modal administrations within the U.S. Department of Transportation. The Federal government, through the FTA, provides financial assistance to develop new transit systems and improve, maintain, and operate existing systems. FTA oversees grants to state and local public transit providers. These grantees are responsible for managing their programs in accordance with Federal requirements, and FTA is responsible for ensuring that grantees follow Federal mandates along with statutory and administrative requirements. Firm Fixed Price Type Contract (FFP): A general compensation arrangement, which places the risk of performance for a lump sum on the Contractor, regard less of the actual costs incurred by the Contractor. The only allowable adjustments to the lump sum Contract price are those arising from authorized changes in scope of services or changes in specifications. This type of Contract is appropriate for acquiring commercial items, or for supplies or services, which can be clearly defined with either performance/functional specifications or design specifications where there are no substantial uncertainties relating to cost, performance, or schedule. This type of Contract may only be used in sealed bidding procurements. Formal Bidding: Bidding involving public advertising, sealed bids or RFP, and is required for procurements of goods or services in an amount of $50,000 or more, except as otherwise provided herein. 9 General Services: Those services provided by an individual or business, which are not considered professional or construction. Independent Cost Estimate (ICE): Such estimates may be obtained from published competitive prices, results of previous competitive procurements, including some type of price escalation percentage, or price quotes from manufacturers. Informal Bidding: Bidding without public advertising but within formal procedures, which may include, without limitation, written, telephonic or electronic bidding. Invitation for Bids (IFB): The County request for sealed bids setting forth the detailed specifications for the work to be performed. Micro -Purchase: Purchases under $3,000, purchases below this threshold may be made without obtaining competitive quotations if the County determines that the price is fair and reasonable. Such purchases are exempt from Buy America requirements. There should be no splitting of procurements to avoid competition. Minority Business Enterprise (MBE): Any business enterprise, which is at least fifty-one percent (51%), owned by, or in the case of a publicly owned business, at least fifty-one percent (51%) of the capital stock of which is owned by citizens or permanent resident aliens who are minority persons, and such ownership interest is real, substantial and continuing. The minority ownership must have and exercise the authority to independently control the business decisions of the entity. The enterprise must also be authorized to do business in the State of North Carolina, be independently owned and operated and not be dominant in its field. Minority Business Enterprises are certified as such through the State of Florida. Offer: A promise to provide goods or services according to specified terms and conditions in exchange for material compensation, Organizational Conflict of Interest: Because of other activities, relationships, or Contracts, a Contractor is unable, or potentially unable, to render impartial assistance or advice to the County; a Contractor's objectivity in performing the Contract work is or might be otherwise impaired; or a Contractor has an u nfai r competitive advantage, Performance Bond: An instrument of security furnished by the Contractor and his surety for the performance of the work in accordance with the Contract documents. Performance Specifications: Specifications based on the function and performance of a product or service under specified conditions, preferably conditions that can be reproduced for testing purposes. Performance specifications may include useful life, reliability in terms of average intervals between failure, and capacity. Piggybacking: An assignment of existing Contract rights to purchase supplies, equipment, or services. Procurement: The acquisition by the County of products, services or public works by purchase process and policy as outlined in this manual, accepting: - The purchase of periodicals, reference materials, treatises, or professional research tools; - The payment of fees or tuition associated with continuing education courses, training courses, conferences, seminars, and symposiums, R • Expenditures governed by the County "Travel Policy", • The purchase of advertise ng space or advertisi ng time in any medium. • Expenditures associated with internal or public meetings Professional Services: Services of a professional nature, including without limitation, accounting, legal, medical, occupational, architectural, engineering, consulting, advertising, marketing and planning. Professional Services Contract: Any written agreement to provide a service including but not limited to legal, accounting, management consulting, investment banking, planning, trai ning, statistical, research, public relations, marketing, advertisi ng, architectural, engineering, surveying or other personal services of a consulting, professional or technical nature, for a fee, commission or other compensation, by a person or persons who are not providing such services as officers or employees of a state agency or public corporation. Prompt Payment: Payment of a debt due and owing by the County before interest accrues thereon pursuant to the terms of any Contract established in accordance with the guidelines contained in this manual. Purchasing Manager: The S t . Lucie County Purchasing Manager, who has responsibility for the overall conduct of the procurement. This individual, along with the County Transit Manager, is responsible for ensuring compliance with guidelines contained in this manual and all applicable governmental regulations. Responsible: A potential Contractor is considered responsible if it can demonstrate that it has the ability to perform successfully under the terms of the proposed Contract, taking into account the offeror's technical and financial capability. Responsibility refers to the ability of the Contractor to del iver the requested items/services. Responsive: A bid, w h i c h complies, in all material respects, with the terms of the solicitation and is completed, executed, and submitted in accordance with the instructions set forth in the solicitation. Responsiveness refers to the integrity of the submitted bids and the bid process. Services: A professional, consulting, technical, or other service, including but not limited to, legal, testing, accounting, bookkeeping, secretarial, management consulting, audit, investment banking, planning, training, statistical research, insurance, advertising, public relations, architectural, engineering, appraisal, janitorial, surveying, housekeeping, and waste disposal, performed for a fee or other compensation. Single Bid: Two or more competitive bids are solicited and only one bid is received. Small Procurement Informal Bidding: A small procurement method of procuring goods or services costing $3,000 to $5Q000 based upon competitive selection. Quotes will be requested and received via fax, e-mail or regular mail. Sole Source: The goods or services to be procured are available from only one responsible source; or no other goods or services will satisfy the County requirements; or prior state or federal approval has been granted. State Bid Contracts: Purchase prices established for various items, which have been competitively bid by the State of Florida, and which may be used by the County to make procurements for goods/services provided FTA requirements are included in the Contract. Surety Bond: Refers to an agreement between a transit industry Contractor or supplier and a surety bond writer that guarantees a Contract obligation with a transit property. Typically, transit agencies require bonds that cover 100% of the value of a Contract. Ifa Contractor defaults on a Contract or faces financial difficulties, the Surety Bond underwriter will owe the transit agency the full amount of the Contract. Tau On: Refers to the addition of work (supplies, equipment or services) that is beyond the scope of the original Contract that amounts to a cardinal change. "In Scope" changes are not tag -ons. The use of tag -ons is prohibited. Time and Material (T&M) Type Contract: A general compensation arrangement, which provides for a fixed rate including overhead and profit, and material paid for at cost, plus handling charges. This type of Contract is rarely used by the County, but is permitted only: 1. After a determination that no other compensation arrangement is suitable; 2. If the Contract or purchase order contains a price ceiling that the Contractor exceeds at its own risk 3. All labor and equipment rates (including overhead and profit), are predetermined and set forth in the Contract and materials are to be paid for at cost. Transit Manager: The County Transit Manager, who has responsibility for the overall responsibility for the transit program. This individual, along with the Purchasing Manager, is responsible for ensuring compliance with guidelines contained in this manual and all applicable governmental regulations. Women -owned Business Enterprise (WBE): Any business enterprise which is at least fifty-one percent (51%) owned by, or in the case of a publicly -owned business, at least fifty-one percent (51 %) of the capital stock of which is owned by citizens or permanent resident aliens who are women, regard less of race or ethnicity, and such ownership interest is real, substantial and continuing. Women business owners must have and exercise the authority to independently control the business decisions of the entity. The enterprise must also be authorized to do business in State of Florida, be independently owned and operated and not be dominant in its field. Women -Owned Business Enterprises are certified as such through the State of Florida. II: General Procurement Guidelines 1. Contract Administration System The County maintains a Contract administration system to ensure that Contractors perform in accordance with the terms, conditions, and specifications of their Contracts, including purchase order Contracts. 2. Approvals and Responsibilities The attached St. Lucie County Summary of Contract Award Procedures specifies the Contract authorization and signature authority required for various Contracts. Staff responsibilities are as follows: 7 Purchasinp, Manager • Responsible for the development and implementation of procurement policies and procedures. • Coordination of all procurement activities including goods and services and procurement files. • Ensuring that all purchases made by St. Lucie County Board of County Commissioners comply with all applicable state, federal and local laws and regulations. • Placing all required advertisements for bids by St. Lucie County Board of County Commissioners, conducting bid openings and performing cost and product comparisons to ensure purchases are made in a timely fashion to ensure efficient work processes. Transit Manager • Responsible for the development and implementation of procurement policies and procedures specific to the transit program. • Ensuring that all purchases comply with all applicable state, federal and local laws and regulations. • Placing all required advertisements, conducting bid openings and performing cost and product comparisons to ensure purchases are made in a timely fashion to ensure efficient work processes. MWBE Coordinator: Serving as the Disadvantaged Business Enterprise Officer (DBE) and Minority and Woman -owned Business (MWBE) officer, and reporting directly to the County Administrator on all matters related to DBE and MWBE. (Including verification of D/M/WBE subcontracting reporting requirements.) 3. Ensurine Most Efficient and Economic Purchase All purchase requests shall be reviewed by the Transit Manager, the Community Services Director and the Purchasing Manager to avoid purchase of unnecessary or duplicative items. Consideration shall be given to consolidating or breaking out procurements to obtain a more economical purchase. In the case of property, consideration will also be given to lease versus purchase of the property to determine the more economical alternative. 4. Intergovernmental Procurement Agreements To foster the greater economy and efficiency, the County may enter into State and local intergovernmental agreements as allowable by law for the procurement or use of common goods and services. The requirements and standards of this document apply equally to procurements entered into under such agreements. 5. Awards to Responsible Contractors The County shall make awards only to responsible Contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. In making a responsible Contractor determination, consideration shall be given to such matters as Contractor integrity, compliance with public policy, record of past performance and 8 financial and technical resources. Responsibility differs from responsiveness in that responsibility generally applies to the offeror. Responsive appl ies to the bid submission and its conformance with the specifications or requirements of the solicitation document. 6. Written Record of Procurement History A properly documented procurement file should be a complete record of procurement actions and should fully support the successful Contractor's bid price. It provides a complete background as a basis for informed decisions at each step in the acquisition process. A well-documented file also supports actions taken, provides information for reviews and investigations and furnishes essential facts in the event of litigation or legislative inquiries. If the procurement action is the result of a Contract amendment or exercise of an option, sufficient data should be included to fully support the basis for the price and procurement action. The County shall maintain records detailing the history of all procurements using the attached Procurement Checklist as a guide for all documentation to include in the history. 7. Settlement of Contract I ue /Di Butes In accordance with good administrative practice and sound business judgment, the C o u n t y will be responsible for the settlement of all Contractual and administrative issues arising out of procurements. These issues include, but are not limited to, source evaluation, protests, disputes and claims. These standards do not relieve the County of any Contractual responsibility under its Contracts. Violations of the law will be referred to the State or Federal authority having proper jurisdiction. 8. Contract Period of Performance The County shall not enter into any Contract for rolling stock or replacement parts with a period of performance exceeding five (5) years inclusive of options. All other types of Contracts (supply, service, leases of real property, revenue and construction, etc.) shall be based on sound business judgment. The County will be judicious in establishing and extending Contract terms no longer than minimally necessary to accomplish the purpose of the Contract. Additional factors to be considered include competition, pricing, fairness and public perception. Once a Contract has been awarded, an extension of the Contract term length that amounts to an out of scope change will require a sole sourcejustification. 9. Independent Cost Estimates_ The County Transit Division shall perform an Independent Cost Estimate (ICE) using the attached ICE form for every procurement before receiving bids or proposals. An ICE is an estimate of the proper price level or the value of the supplies or services being purchased. This estimate can be used in determining the reasonableness of the actual price offered. In some cases, obtaining cost estimates may be difficult or may lie outside the competence of the transit staff. In the case of construction projects, a design or engineering firm may already be under Contract and may perform this service. Equipment estimates can often be prepared from published price lists or from past competitive procurements updated with inflation factors. In the case of specialized equipment, care must be taken that the source of the estimates is not disproportionately 9 obtained from one supplier. Professional services often range widely in both price and quality. It may be worth obtaining a professional cost estimate by a firm not interested in the final procurement. In the case of facility design services, industry standards to estimate design as a percent of construction are available. Other transit authorities are also a valuable source of cost estimating information if they have undertaken similar projects. 10. Contract Cost and Price Analysis A Cost or Price Analysis is a determination that the cost or price offered by a Contractor is reasonable, given current market conditions. The purpose of Cost or Price Analysis is to ensure that the County does not pay unreasonably high prices. A Cost or Price Analysis must be performed in connection with every procurement. The method and degree of analysis is dependent on facts surrounding the particular procurement situation. Prices that are unreasonably low can also be detrimental to good procurement if they prove to be an indication that the offeror has made a mistake or misunderstood the work to be performed. All procurement files shall contain minimum documentation that the offered price is fair and reasonable. 11. Federal Cost Principles Costs or prices based on estimated costs for Contracts under grants will be allowable only to the extent that costs incurred or cost estimates included in negotiated prices are consistent with Federal Cost Principles. The County shall use Federal Cost Principles to determine allowable costs for all federally funded cost- reimbursement type Contracts. 12. Cost Plus Percentage of Cost The cost plus a percentage of cost and percentage of construction cost methods of Contracting shall not be used by the County. 13. Procurement with State and Federal Funds In all cases where procurements are made by with state and/or Federal funds and are conditioned upon, or subject to, laws or regulations for purchasing, the County shall observe such laws and/or regulations. This shall apply to all matters, including bidding; advertising for bids, reviewing bids, awarding Contracts, monitoring awarded Contracts and reporting awarded Contracts. 14. Full and Open Competition All procurement transactions above the micro -purchase level, as defined in Section I of this manual, will be conducted in a manner that provides maximum open and free competition. The following are considered to be restrictive of competition and may not be used in any solicitation: Excessive Qualifications: Imposing unreasonable business requirements for bidders or offerors. Unnecessary Experience: Imposing unnecessary experience requirements for bidders and offerors Improper Prequalification: Using prequalification procedures that conflict with the prequalification standards described in Section 11. 16. Brand Name Only: Specifying only a "brand name" product without listing its salient characteristics and not allowing "an equal" product to be offered. Brand names are among the most restrictive types of specification. Restraint of Trade: Non-competitive practices between firms or affiliated companies; Retainer Contract: Noncompetitive awards to any person or firm on retainer Contract if that award is not for the property or services specified for delivery under the retainer Contract. Organizational Conflicts of Interest: An organizational conflict of interest means that because of other activities, relationships, or Contracts, a Contractor is unable, or potentially unable, to render impartial assistance or advice; a Contractor's objectivity in performing the Contract work is or m i g h t be otherwise impaired; or a Contractor has an unfair competitive advantage; Arbitrary Action: Taking any arbitrary action in the procurement process, such as awarding to other than the most favorable Contractor is prohibited by the County. Excessive Bonding: Imposing unreasonable restrictive bonding requirements on bidders and offerors in excess of FTA and state requirements. Improper Sole Source: Negotiation without proper justification. 15. Geographic Preferences: The County shall not use statutorily or administratively imposed in state or local geographical preferences in the evaluation of bids or proposals, except in those cases where applicable Federal statutes expressly mandate or encourage geographic preference. This requirement does not preempt State licensing laws. 16. Prepualification Criteria: The County does not currently pre -qualify products or persons prior to solicitation. However, in the event that pre -qualification becomes necessary in the future, The County will ensure that all lists of pre -qualified persons, firms, or products that are used in acquiring goods and services are current and include no less than three (3) sources to ensure maximum full and open competition. As such, pre -qualification lists must contain a date as to when the list was last updated and a signature of the person who updated it. The County will not use pre -qualification lists that are over one (1) year in age and do not contain at least three persons, firms, or products. In addition, the County will not preclude potential bidders from qualifying during the solicitation period. This period is defined as the period from issuance of the solicitation to its closing date. 17. Written Procurement Selection Procedures: The County shall use written selection procedures for procurement transactions as follows: Solicitations shall include a clear and accurate description of the technical requirements for the material, product or service to be procured. Such description shall not contain features that u nd my restrict competition. The description may include a statement of the qualitative nature of the material, product or service to be procured and when necessary, shall set forth those minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use. 18.Reguest for Deviation from Specifications: Specifications for goods and/or services shall be written clearly and concisely to minimize ambiguity and to ensure that the County receives the goods and/or services that are ideally suited for its needs. Where appropriate, provisions should be made in the specifications to allow bidders to seek deviations from the specifications. The purchaser and user should consider all such requests and approve those requests that enhance flexibility in bidding without sacrificing the quality or integrity of the goods and/or services being procured. All requests for deviations that are submitted, accompanied by the County responses, shall be shared with all potential bidders. Such documentation shall be provided to all bidders prior to bid opening. All requested deviations from these specifications will be responded to, in writing, in one ofthe following manners: a. Approved as an equal; or, b. Rejected. The County will respond in writing to all requests no later than five (5) calendar days prior to bid opening. All requests and the County responses thereto, will be furnished to all prospective bidders and become addenda to these specifications. 19. Written Addenda: The County reserves the right to issue clarifying information regarding the content of a procurement document should the County, in its sole judgment, determine it is necessary to do so. 20. Written Protest Procedures: The County shall include the attached written protest procedures in its solicitations to hand le and resolve disputes relating to their procurements. The County shall disclose information regarding all protests to FTA. All protest decisions must be in writing. It is understood that reviews of protests by FTA will be limited to t h e C o u n t y 's failure to review a complaint or protest, failure to comply with the established protest procedures, or violations of Federal law or regulation. An appeal to FTA must be received by the cognizant FTA regional or Headqualters Office within five (5) working days of the date the protester learned or should have learned of an adverse decision by the grantee or other basis of appeal to FTA. 21. Options: An Option is a unilateral right in a Contract by which, for a specified time, the County may elect to purchase additional equipment, supplies, or services called for by the original Contract, or may elect to extend the term of the original Contract. If the County elects to use Options, the following requirements apply: Evaluation of Options: The option quantities or periods contained in the Contractor's bid or offer must be evaluated to determine Contract award. When options have not been evaluated as part of the award, the exercise of such options will be considered a Sole Source procurement. (To be eligible for Federal funding, options must be evaluated as part of the price evaluation of offers, or must be treated as Sole Source awards) Exercise of Options: The exercise of an Option must be in accordance with the terms 12 and conditions of the Option stated in the initial Contract awarded. An Option may not be exercised unless it is determined that the option price is better than prices available in the market or that the Option is the more advantageous offer at the time the Option is exercised. The Option price must be determined to be fair and reasonable, and a written justification of this determination must be included in the procurement file. 22.Disadvantap-ed/Minority/Women-Owned Business Enterprise: It is the desire of the County to promote and assist participation by D/M/W B/E's, and to facilitate a fair share of the award i ng of Contracts thereto. The County DBE Liaison Officer shall maintain a list of DBE entities certified to perform public work, supply items for purchase Contracts, or perform personal or professional services of a kind and nature that may be needed by the County. The County will, on a routine basis, notify all Vendors, Contractors, Consultants or other firms with which it does business, that it will affirmatively insure that DBEs will be afforded full opportunity to submit bids, quotes or proposals in response to the County solicitations. The County will comply with all applicable equal opportunity laws and regulations. 23. Payments: Advance Payments: the County shall not participate in Advance Payments to a Contractor prior to the incurrence of costs by the Contractor unless prior written concurrence is obtained from FTA or other appropriate funding provider. The County Contracts shall not contain Advance Payment provisions, unless prior written concurrence is obtained from FTA. Progress Payments: Progress Payments may be used, provided the following requirements are followed: a. Progress Payments are made only to the Contractor for costs incurred (as opposed to percent of completion) in the performance of the Contract, and b. When Progress Payments are used, the County must obtai n adequate security (materials, work in progress and finished goods) for which Progress Payments are made. Adequate security for Progress Payments may include taking title, irrevocable letter of credit or equivalent means to protect the County's interests in the Progress Payments. c. Percent of Completion payments are used by the County in its large construction Contracts. Partial Payments: Can be made based upon specified deliverables as agreed to by the County and Contractor. Final Payment: Final payment is made to the Contractor when it has satisfied all the deliverable requirements called for by all provisions of the Contract, including submission of all required documentation. Final payment signifies that the performance obligations of both parties to the Contract have been satisfied. Before making a final payment, the Project Manager shall obtain a signed release from the Contractor releasing the County from any further claims by the Contractor. The Project Manager shall also obtain a signed receiving and inspection receipt from the Community Services Director certifying that all deliverable items have been received, inspected and accepted as being in conformance with the 13 Contract specifications. 24. Emergency Procurements: From time to time, emergency situations may arise which require that a procurement be made without following normal purchasing procedures. Emergency situations should be restricted to those times when delay in completing the procurement could result in jeopardy to persons or property. In addition, the situation leading to the emergency should be one that could not be normally anticipated. If an emergency situation occurs, it must be documented and this documentation must be attached to the purchase order or placed in the procurement file. The procurement must be approved by the Purchasing Manager. Emergency procurements shall, to the extent that time permits, follow regular procurement guidelines concerning the solicitation of quotes and the approval of the procurements. A written memorandum justifying the emergency nature of the procurement shall be maintained in the procurement file. In all cases of emergency purchases, solicitations should be requested from as many potential sources as is practicable under the circumstance. If soliciting from only one source a Sole Source justification in writing must accompany the procurement documentation. A Cost /Price Analysis must also be prepared. 25. Bonding Requirements: To insure the adequate and expeditious provision of goods, equipment and/or services procured by the County, Bid or Performance Bonds may be required where appropriate, or as stipulated by state or Federal law. Final payment, however, will be withheld from a vendor until the C o m m u n i t y S e r v i c e s Director certifies as to the successful and total completion of the goods, equipment and/or services procured. All construction Contracts in excess of $50,000 shall require a 5% bid guarantee; a Performance Bond or certified check or other guaranteed negotiable instrument or letter of cred it for 100 % of the Contract price in a form acceptable to the County guaranteei ng the Contractor's faithful performance of all terms under such Contract; Payment Bonds (in the amount of 50% on Contracts under $1 million, 40% on Contracts between $1-$5 million, or $2.5 million on Contracts over $5 million). Performance security is not mandated for product Contracts. In instances where a Performance Bond is offered, the Bond shall be in the amount of the Contract and issued by a duly incorporated entity authorized to guarantee the faithful performance of Contracts and to do business in the State of North Carolina as a surety. Letter of Credit: A Letter of Credit used as bid or performance security must: a. Be an irrevocable Letter of Credit issued by a bank or financial institution of A - rating or better, b. Be signed by an authorized representative of the issuing institution, and c. Name the County as beneficiary, and be in a form otherwise acceptable to the County. The Letter of Credit must state that an amount representing at least ten percent (10%) of the bid price is available to be drawn on, unconditionally, by the County under the expressed 1E terms and conditions. These terms and conditions, including the location at which the County can draw the funds, an effective date and an expiration date, should be clearly stated in the letter of credit. 26. Insurance• Each Contractor/Vendor shall maintain the appropriate kinds and limits of insurance as imposed by law or the Contract upon him with respect to all work and operations performed under the Contract by the Contractor/Vendor and each of their subcontractors. Each policy shall list out the County and their members, officers, agents, servants, and employees; and other substituted or additional agents the County may hire as the additional insured. 27. Promnt Payment Policy: It is the policy of the County to make payment of a debt due and owing by t h e C o u n t y before interest accrues thereon pursuant to the terms of any Contract established in accordance with the guidelines contained in this manual. 411111114111Y111 The County is a grantee of the FTA. As a recipient of FTA funds, t h e C o u n t y is required to comply with the Buy America requirements specified in 49 CFR Part 661, which state that, except in certain enumerated situations, no funds may be obligated by the FTA for a grantee project unless all iron, steel and/or manufactured items used in the project are produced in the United States. The "Buy America" requirements apply to Construction Contracts and Acquisition of Goods or Rolling Stock. Currently, there is no dollar threshold in the FTA regulations, thus "Buy America" provisions apply to all Contracts, both operating and capital, regardless of the dollar amount involving Federal funds. However, FTA has established a general waiver for inclusion of this provision in small purchase procurements (defined by Federal Regulations as less than $100,000). The "Buy America" requirements state that: a. The County shall adhere to the "Buy America" clause set forth in its grant Contract with the FTA. b. The County shall include in its bid specification for procurement an appropriate notice of the "Buy America" provisions; such specifications to require, as a condition of responsiveness, that the bidder submit with its bid a completed "Buy America" certificate. c. Whether or not a bidder certifies that it will comply with the applicable requirement, such bidder is bound by its original certification and is not permitted to change its certification after bid opening. A bidder that certifies that it will comply with the applicable "Buy America" requirements is not eligible for a waiver of those requirements. The following statement is contained in the County's grant Contracts with FTA: "Sections 165(a) and (b) of the Surface Transportation Assistance Act of 1982, as amended, require that Federal funds shall not be appropriated or utilized for any Contract awarded unless all iron, steel and manufactured products used in FTA -funded projects are produced in the United States; however, these general requirements may be waived by the Admi nistrator of the FTA or his/her designee if the Administrator finds: 15 1. That the application of such general requirements would be inconsistent with the public interest; 2. That the materials for which a waiver is requested are not produced in the United States in sufficient and reasonably available quantities and of a satisfactory quality; 3. That the inclusion of a domestic item or domestic material will increase the cost of the Contract between the grantee and its supplier of that item or material by more than twenty- five percent (25 %). The Administrator will grant this "price differential" waiver if the amount of the lowest responsive and responsible bid offering the item or material that is not produced in the United States multiplied by 1.25 is less than the amount of the lowest responsive and responsible bid offering the item or material produced in the United States; or With regard to the procurement of buses and other rolling stock (including train control, communication and traction power equipment) under the Urban Mass transportation Act of 1964, that (1) the cost of components produced in the United States is more than sixty percent (60%) of the cost of all components, and (2) final assembly takes place in the United States. A Certificate of Compliance with Section 165(a), whereby the bidder certifies compliance with the requirements of Section 165(a) of the Surface TranspOliation Assistance Act of 1982, as amended, and the applicable regulations contained in 49 C.F.R. Part 661, shall be completed for all federally- assisted procurements of steel, iron, or manufactured products. A Celificate of Compliance with Section 165(b)(3), whereby the bidder certifies compliance with the requirements of Section 165(b)(3) of the Surface Transportation Assistance Act of 1982, as amended, and the applicable regulations contained in 49 C.F.R. Part 661, shall be completed for all federally -assisted procurements of buses, other rolling stock and associated equipment." 27. LLi uidated Damages: When liquidated damages are included as a potential remedy in any solicitation there must be a reasonable expectation that damages will be suffered through a delay in the Contract completion. The method of assessment for damages will be established within the solicitation, along with the calculation and rationale to be used in establishing damages. For Federally funded Contracts, any damages recovered must be credited to the project involved unless FTA permits otherwise. 28. Construction Pro jects-Design-Bid-Build Method: Definition — Procurement method for construction projects requiring separate Contracts for design services and for construction services. Desian Services — For design services, the County must use qua] ifications- based procurement procedures in compliance with applicable Federal and State law and regulation. Construction — Depending on the estimated dollar value of the construction Contract, the County must use either the sealed bid method of procurement or small purchase procedures to procure construction services. E 29. Construction Proiects- Design -Build Method: Definition – Procurement method consisting of Contracting for design and construction simultaneously with Contract award to a single Contractor, consortium, joint venture, team or partnership that will be responsible for both the project's design and construction. Procurement Method Determined by Value – Because both design and construct ion are included in a single procurement, the County must use the procurement method appropriate for the services having the County best cost for the entire procurement, even though other necessary services would not typically be procured by that method. If construction costs are predominant then the County must use the sealed bid method of procurement to select the Contractor. If design costs are predominant then the County must use qualifications -based procurement procedures to select the Contractor. Selection Processes —The County may structure the design -build procurement using a single step or two-step method. 30. Revenue Contracts: A Revenue Contract is a Contract in which the County provides access to public transportation assets for the primary purpose of either producing revenues in connection with an activity related to public transportation, or creating business opportunities with the use of PTA assisted property. While there is some latitude in determining the extent and type of competition appropriate for a particular revenue Contract, The County, so as to insure fair and equal access to FTA assisted property and to maximize revenue derived from such property, conducts its revenue contracting as follows: a. Limited Contract Opportunities: If there are several potential competitors for a limited opportunity (such as advertising space on the side of a bus), then the County should us a competitive process to permit interested parties an equal chance to obtain that limited opportunity. b. Open Contracting Opportunities: If one party seeks access to a public transportation asset, and the County is willing and able to provide Contracts or licenses to other parties similarly situated, then competition would not be necessary because the opportunity to obtain Contracts or licenses is open to all similar parties. 31. Pitzgybackiniz: While, with certain conditions, the FTA permits the County to use existing Contract rights held by another recipient commonly called "piggybacking" as a method of procurement for FTA funded projects. Violation or Breach of Contract Terms: Third party Contracts exceeding $50,000 must include administrative, contractual, or legal remedies for violations or breach of the Contract by the third party Contractor. 32. Termination: Termination for cause and termination for convenience provisions must be included in Contracts exceed i ng $10,000. 17 33.Chan2e Order Procedure: Change Order means an order authorized by the County directing the Contractor to make changes, pursuant to Contract provisions for such changes, with or without the consent of the Contractor ("change orders" must be within the scope of the original competition). A Change Order must be signed and approved by the County officer or employee who signed the original Contract on behalf of the County. A Change Order must have an Independent Cost Estimate (ICE) that supports the price provided and must be included with the requisition requesting the change. The Contracts Coordinator must receive a requisition for a change order with the proper authorizations and the ICE must be attached. A Change Order must have a Cost or Price analysis performed to determine that the change price is fair and reasonable. Any Change Order exceeding the maximum Contract amount originally approved by Board of County Commissioners must be approved by Board of County Commissioners, The Contract must be evaluated to determine if the change in Contract amount has raised the total Contract threshold so that additional clauses or certifications are required (i.e., Buy America, Lobbying, etc.). Cardinal Change Order: A Contract change which is outside the scope of the original contact, and thus not within the authority of the changes clause. Such changes are "Sole Source Procurements" and must be processed accordingly. In all cases, Federal Transit Administration circular 4220.1 F (or the most current version) Third Party Contracting Guidelines must be followed. The Best Practices Procurement Manual can be referenced for additional information. n9FT-WaffffI1 I1 I1�. 1V in,111� Consistent with the County ethics rules, the County staff engaged in the procurement process shall ensure that the procurement process operates free of conflicts of interest, undue influence, and with qualified Contractors in compliance with federal and state law. Restrictive Period: The Restrictive Period commences when the County issues its first written document soliciting a response from Offerors through the Contract award and approval. Designated Contact: The Purchasing Manager is designated as the person who may be contacted during the Restrictive Period by Offerors where such contact is intended to influence a procurement. However, the Purchasing Manager may from ti me to time designate another person as the designated contact for Procurements as he/she may deem necessary. Impermissible Contact: Contact which is reasonably interpreted as an attempt to influence a procurement, made to someone other than the designated contact person for procurements during the restrictive period. A permissible contact is a contact made to anyone, where such contact is not reasonably interpreted as an attempt to influence the procurement or, a contact that is intended to influence that is made to the designated contact person for procurements, or a contact that is intended to influence the procurement made to anyone outside of the restrictive period. Attached to this manual is the St. Lucie County Code of Ethics statement dated XX XX. Failure to comply with this Code of Ethics will result in disciplinary action in accordance with the County's Employee Handbook. Such discipline will be appropriate for the specific violation and can include discharge, even for the first offense. 18 Section III -Detailed FTA Funded Procurement Guidelines When an FTA funded purchase is initiated by the County, it will fall into one of the following three procurement categories: Micro -Purchases: purchases resulting in cost to the County under $3,000. Small Purchases: purchases resulting in cost to the County from $3,000 to $50,000. Large Purchases: purchases resulting in an aggregate cost to t h e C o u n t y g r e a t e r than $50,000. Micro Purchases: Micro purchases are those costing $3000.00 or less. Davis Bacon requirements apply to construction contracts exceeding $2,000, and it is impermissible to divide or reduce the size of a purchase simply to come within the micro purchase limit. While not an absolute requirement, it remains advisable to obtain competitive quotations from at least two sources if at all possible, and it is therefore necessary to develop a basic specification of what is being purchased so that potential vendors are able to provide quotations on the same product. In almost all cases, this task can be performed by the transit program staff. In the few cases where the basic specification exceeds the technical expertise of the transit program staff, assistance from others within the County who possess the needed expertise is to be obtained by the transit program staff. Once the basic specification is developed, a purchase requisition is to be entered into the County's purchasing system by the transit program staff. This requisition is to include a copy of the basic specification, the independent cost estimate (ICE), and any quotations or prices that were obtained. The County's Purchasing Division is then to issue a purchase order to the vendor (with a copy to the transit program staff) submitting the lowest quotation as long as there is a determination that I ) the bidder is responsible, 2) the price is fair and reasonable, and 3) that the price does not exceed the ICE by ten percent. If any of these conditions are not met, the process must start over with the development of new ICE. A price analysis (PA) is to be conducted to determine if a price is fair and reasonable. In order of preference, the accepted forms of a PA are: a. Adequate price competition b. Prices set by law or regulation c. Established catalog prices and market prices d. Comparison to previous purchases e. Comparison to a valid ICE f. Value ana lysis The PA is to be performed and documented by the Community Services Department with a hardcopy being placed into the corresponding procurement file. In most cases, an adequate price competition determination should be used contingent upon there being at least two (2) responsible bidders submitting independent bids and that they both satisfy all of the requirements of the solicitation such as being responsive to and meeting the technical 19 requirements for the price bid, and the submission of all forms and certifications required by the solicitation. In some cases, such as for utilities, prices are set by law or regulation and they are considered fair and reasonable. All that is needed for the PA is a copy of the rate schedules set by the applicable law or regulation. Once these schedules are obtained, it should be verified that they apply and that the correct price is being charged. Established catalog prices may be used for the PA assuming that: I ) catalog prices exist in a published catalog; 2) the items are commercial in nature; 3) the items are sold in substantial quantities; and 4) the items are sold to the general public. Established market prices may be used for the PA assuming that the market price is a current price established in the usual or ordinary course of business between buyers and sellers free to bargain. These prices must be verified by consulting with buyers and sellers who are independent of the bidder. Comparison to previous purchases may be used for the PA. However, changes in quantity, quality, delivery schedules, and the economy cause price variations so each differing situation must be analyzed through trend analysis. Also, the Community Services D e p a r t m e n t must ensure that the previous price was fair and reasonable. This determination must be based upon a physical review of the documentation contained in the previous files. Comparison to the ICE may be used for the PA so long as the facts, assumptions, and judgments used to develop the ICE are verified and that the ICE still represents a sound estimate for determining if the price is fair and reasonable. Value analysis may be used for the PA. This requires examining the item and the function it performs so that its w01 ih can be determined. The decision of price reasonableness remains with the Community Services Department. Small Purchases: Small purchases are those costing $3001.00 to $50,000.00. It is the transit program staff s responsibility to review these requirements and assemble in written form all of the provisions, certifications, reports, and forms necessary for the contemplated procurement. As with micro purchases, small purchases require an ICE and a MOP as well as the specification for whatever is being purchased. Depending on the specific good or service being purchased this specification may be the same as the basic specification included in micro purchases, but is likely to be more comprehensive. The specifications must include a clear description of the technical requirements. They must be non-restrictive. And they may include minimum quality standards and performance specifications, but not product specifications. The Community Service Department s h a l I issue a request for written quotes. As determined by the transit program staff, there may or may not be a pre -proposal conference depending on the complexity of the procurement. In the absence of such a conference (as would occur with such a conference), all prospective vendors are to be provided an opportunity to submit clarifying questions about the procurement and to have an opportunity to review the answers to such questions prior to submission of the bids or proposals. 20 The next step in the process is to conduct a PA as described above. However, a Cost Analysis (CA) must be performed for procurements requiring the offeror to submit estimates for labor hours, overhead, and materials; procurements where adequate price competition is lacking; and sole source procurements unless price reasonableness can be established based on market analysis. Cost Analysis, as distinguished from price analysis, is the process of: I ) obtaining cost or pricing data (a breakdown of costs) from prospective contractors or subcontractors; 2) verifying and evaluating the accuracy and allow ability of cost data; and 3) projecting cost data from known to estimated costs to show the effect on overall prices. In the event of a CA, the County's Community Services Department should obtain from the vendors: 1) actual costs previously incurred; 2) the most recent cost estimate for the same or similar items or with a series of prior estimates; 3) current cost estimates from other possible sources providing the same or similar product or service; and 4) independent forecasts of future costs. This information is then to analyzed, which should result in a determination of a fair and reasonable price or serve as a basis for negations. The analysis to include a technical evaluation conducted by qualified individuals other than the transit program staff and an audit review by the C o u n t y' s Finance Department of the accounting records submitted by the bidders. The CA is then to be documented and a hardcopy placed in the corresponding procurement file. Large Purchases: Large purchases are those costing $50,000.01 or more. It is the transit program staff s responsibility to review these requirements and assemble in written form all of the provisions, certifications, reports, and forms necessary for the contemplated procurement. All of this documentation is to be provided to the County's Purchasing Division by the transit program staff As with micro and small purchases, large purchases require an ICE and a MOP as well as the specification for whatever is being purchased. Depending on the specific good or service being purchased this specification may be the same as the basic specification included in small purchases, but is likely to be more comprehensive. The specifications must include a clear description of the technical requirements. They must be non-restrictive and they may include minimum quality standards and performance specifications, but not product specifications. The County's Purchasing Division shall issue a formal request for bids or proposals, whichever is the case. With very few exceptions, there should then be a pre-bid /pre proposal conference at which ti me all prospective vendors are to be provided an opportunity to submit clarifying questions about the procurement and to have an opportunity to review the answers to such questions prior to submissionofthebids orproposals. The next step in the process is to conduct a PA and/or a CA as descri bed above. An agenda item for Board's consideration is then to be prepared. This is to be done by the Community Services Department. It is to incl ude the reason for contractor selection or rejection and a responsibility determination for the successful contractor. including verification that the successful contractor is not barred by the System Award Management system (http://www.sam .gov. Only upon approval by the Board does a contract exist for the purchase of the product 21 or service. All suchdocumentation is to be placed in the correspond ingprocurement file. Sealed Bid/Invitation for Bids (IFB) Method of Procurement Th is method of procurement is the preferred method for small and large acquisitions when one or more ofthe following factors are present: • A complete, realistic, and exact specification or purchase description is available; • Two or more responsible bidders are willing and able to compete effectively forthe business; • The procurement lends itself to a firm, fixed-price Contract, and the selection of the successful bidder can be made on the basis of lowest price among responsive bids and responsible bidders; • No discussion with bidders is needed either before or after bid submission. Bidding Requirements: Publication of an IFB is required for all large acquisitions. Both the Invitation for Bids and bids are required to be in writing. Bid bonds may be required. Multiple bids/proposals must be obtained from an adequate number ofqualified sources (at least two). Bids: Written bids required. Sealed bids are to be identified as bids by the bidder and will be retained, unopened, until the date and time designated for bid opening. At least two (2) responsive bids/proposals must be obtained. Sealed bid opening shall be public where the Purchasing Manager shall read the bids aloud and prepare a bid summary and certify results. Early opening or disclosure of bids before the deadline is expressly forbidden because it would compromise the competitive process. In the event that such information is disclosed, the procurement process will be re-initiated. As a general rule, bidding time (time from bid release to bid opening) will not be less than fifteen (15) calendar days in order to allow sufficient time to prepare bids prior to bid opening. Contract Specifications/Statement of Work: Specifications defining the items or services sought shall be outlined in detail. The specifications must be complete, adequate and realistic. Specifications must not only describe the product, but must also include reliability and quality assurance requirements. Any required criteria for inspecting, testing and accepting the product shall also be included in the specification. The nature and extent of items and/or services requested will be limited to only that deemed necessary to meet the needs of the user department. Specifications will encourage full and open competition, and must not rule out one or more vendors or favor a particular vendor. Therefore, use of brand names in specifications is allowed solely for the purpose of providing a standard for quality performance. When requesting a "brand name or equal" the County shall carefully identify its minimum needs and clearly set forth those salient physical and functional characteristics of the brand name product in the solicitation. Price Competition: Assuring adequate price competition for various types of Contracts is accomplished as follows: a. Construction and Maintenance: Multiple written bids/proposals are required. Bids must come from responsible bidders and be responsive. State and federal provisions apply and the insurance requirements are stringent. 22 b. Goods and Commodities: Multiple bids/proposals are required for these purchases. Bids must come from responsible/responsive bidders. Bids must be submitted in the form and manner prescribed in the IFB/RFP. State and federal provisions apply and the insurance requirements are stringent. c. Bus Purchase: Multiple written bids/proposals are required. Bids must come from responsible/responsive bidders. Bids for buses must conform to requirements set forth in the IFB/RFP except to the extent that they propose to furnish approved equals. At least two sealed bids will be required. d. Transportation and Operational Services: Procurements of this type are usually the subject of an RFP because factors other than price will be considered as a basis for an award. e.Technolou: Multiple written bids/proposals are required. Bids must come from responsible/responsive bidders. State and federal provisions apply and insurance requirements are stringent. f. Services and Consultants: Where selection is based exclusively on price, an IFB for services requires multiple bids/quotes/proposals. Proposals must be in writing. The IFB procedure may only be used for services and Consultants where the award will be exclusively on the basis of price. For professional services, where award will be based on factors other than price, the RFP procedures must be used. State and federal provisions apply and insurance requirements are stringent. Pre-Bid Conference: When the proposed Contract is for large purchases or construction, a pre-bid conference may be held about two (2) weeks before the bid opening. This is an opportunity for prospective bidders to ask questions about plans, specifications, and commercial language requirements. Addenda: Changes in the procurement as a result of the pre-bid conference or that are initiated at the discretion of the County will be provided to all prospective bidders in the form of Addenda. Bid Opening: Bid openings are open to the public. On the advertised day and at the scheduled time, the bids will be opened and read aloud, stating the name of the bidder and the amount of the bid. The Purchasing Manager or his/her designee will enter each bid and the amount of the bid deposit on a bid tabulation sheet that she will sign and certify. Bids that are received after the scheduled time of bid opening must be returned to the bidders unopened. Observers at the bid opening should be advised to take notes if they want an instant record of the proceedings, and to state, if they want to be provided with an official copy of the bid tabulation. No copies of the bid tabulation are provided at the bid opening, nor can comments be made about the probability of award. If requested, an observer is permitted to look at bid(s), but is not permitted to handle bids at the time of bid opening. Contract Award: The following measures will be taken to support any Contract award in response to an IFB. a. After the bid opening, the Purchasing Manager and or Transit Manager reviews the bid documents to determine the lowest Responsive and Responsible bidder. The Purchasing Manager will determine the responsibility of the lowest bidder. The Purchasing Manager will also review references and other pertinent information to ensure bidder responsibility. 23 b. Non -Responsive and Non -Responsible bids shall be rejected. Late bids shall be returned to the bidder unopened. At all times, the County retains the right to reject any or all bids and will document the sound business reasons for the bid rejection. c. The low bidder may be allowed to withdraw, provided the bidder can identify and demonstrate an error in the bid. d. Award will be made by the authorized party as denoted in the S t . L u c i e County Purchasing Manual incorporated herein by reference. The apparent low bidder will be notified in writing of the intent to award, subject to the bidder's ability to meet the requirements of the IFB including Contract requirements. f. Contract awards based on a Contractor submitting a low bid shall be contingent on the Vendor/Contractor submitting satisfactory evidence of financial responsibility. Such evidence may take one of the following forms: audited financial statements and a Certificate of Responsibility from the Contractor, a previous financial disclosure dating from no more than six months prior to the IFB, combined with a certification from the Vendor/Contractor; a completed Contractor Responsibility Questionnaire form and certification from the Contractor. g. Before the Contractor can begin work, it must comply with the bid requirements by completing, executing and returning the Contract that was included with the IFB. h. After the Contract has been formally awarded by the County, signed and returned with all necessary documentation (insurance certificates, performance bond) the Contractor is notified by the Purchasing Manager and/or Transit Manager to s u b m i t the signed agreement original(s) together with any commercial requirements. Notices to Proceed are signed by the Project Manager or his/her designee. Contractor Selection Procedures: In addition to determining bidder/proposer responsibility when drafting procurement documents, the County shall consider the following criteria in Contractor selection: 1) Is technically qualified to perform the proposed work; 2) Has, or can secure adequate financial resources to perform the proposed work or deliver the proposed goods; 3) Is able to comply with the delivery or performance schedule, taking into account all existing business commitments; 4) Has a satisfactory record of past performance; 5) If selected, would not result in a conflict of interest, with regard to other work performed by the firm, or individual staff conflicts. Qualifications may include the length of time a firm has been in business, the expertise and experience of staff and the bidder's experience with projects of similar scope and size. Appropriate business references shall also be required. Request for Proposals (RM/Competitive Neizotiations Competitive Negotiation is generally used when conditions are not appropriate for use of sealed bids. As costs become less important in relation to other factors driving the procurement, Competitive Negotiation becomes a more appropriate procurement tool. In Competitive Negotiation, proposals are requested from a number of sources. Negotiations are normally conducted with more than one of the sources submitting offers. Either a Fixed - Price or Cost Reimbursable type Contract is awarded in this type of procurement. This method of procurement is the preferred method for acquisitions when one or more of the following factors are present: a. The desired goods or services cannot be precisely defined, described or standardized. b. The desired end prod uct is conceptual in nature. 24 c. Discussions concerning the technical aspects and price negotiations are intended. d. Offerors are to be given the opportunity to revise the price or technical aspects of their proposal. e. Price alone cannot be the determinative factor in award. Quality, qualifications, performance data, or other Contractual factors are to be considered in selecting the most advantageous offering. f. Artistic or aesthetic values supersede price as primary selection criteria. Proposal Requirements: Publication of an RFP is required for this method of procurement Both the Request for Proposals and proposal are required to be in writing. All proposal evaluation factors will be identified along with their relative importance. The County will have a method in place for conducting the technical evaluation of the proposals received and for selecting awardees. Best Value: In determining which proposal is most advantageous, the County may award to the proposer whose proposal offers the County best business value to the County based upon an analysis of a tradeoff of qualitative technical factors and price/cost to derive the "best value". If the County elects to use the best value selection method as the basis for award, however, the solicitation must contain language that establishes that an award will be made on a "best value" basis. If utilizing the best value method the County will take into consideration the most beneficial combination of qualifications, services and cost and who has met the requi rements of the RFP. Preparation of Request for Proposals (RFP): The RFP document will be organized to include: Information for proposers, Required Forms, including sufficient data to determine the responsibility of the proposer, Required Contract Clauses, the Contract Agreement, and scope of work or specifications. Preparation of the scope of work or specifications, and any special terms and conditions is the responsibility of the transit staff working in conjunction with the Purchasing Manager. Specifications defining the items or services sought shall be outlined in detail. The specifications must be complete, adequate and realistic. Specifications must not only describe the product, but must also include reliability and quality assurance requirements. Any required criteria for inspecting, testing and accepting the product shall also be included in the specification. The nature and extent of items and/or services requested will be limited to only that deemed necessary to meet the requirements of the intended purchase. Specifications will encourage full and open competition, and must not rule out one or more vendors or favor a particular vendor. Therefore, use of brand names in specifications is allowed solely for the purpose of providing a standard for quality performance. When requesting a "brand name or equal" the County shall carefully identify its minimum needs and clearly set forth those salient physical and functional characteristics of the brand name product in the solicitation. uestions: Although questions from firms in a position to make a proposal are permissible, ex parte conversations with Vendors/Contractors prior to the proposal being received should be confined to the mechanics of filing a proposal. Any questions that raise issues about the clarity of the RFP must be answered for all firms requesting the RFP through an addendum (see IFB procedure). Changes in the procurement specifications or requirements will be provided to all prospective proposers in the form of Addenda. Anyone making contact by or 25 on behalf of a Vendor/Contractor (lobbying or selling) is required to disclose to the County. T h e C o u n t y staff members are required to make a record of all contacts by non -disclosed lobbyists once an RFP has been undertaken. Proposal Opening: Proposals must be in writing. Proposal openings are open to the public. Multiple proposals must be obtained from an adequate number of qualified sources (at least two). The evaluation process to be followed will be generally outlined in the RFP document. Proposals that are received or submitted after the scheduled time due will be returned to the proposers unopened. Non-responsive and non -responsible proposals shall be rejected. In the event of protest the matter will be referred to the County Attorney for investigation. The County Administrator shall resolve all protests and his/her decision shall be final. Proposals must meet the following requirements: a. Construction procurements based on an RFP will generally be limited to Design -Build projects. Construction to a prescribed design (Design -Bid- Build) requires use of the IFB procedure. Multiple written proposals are required for an RFP. For contracting purposes, state and federal provisions apply and the insurance requirements are more or less stringent depending on the value of the project and other relevant factors. b. An RFP is generally not appropriate for generic items where price competition is available. For specialty items, proposals must be submitted in the form and manner prescribed in the RFP. Multiple written proposals are required or sole -source procedures must be justified. State and federal provisions apply. c. Proposals for buses must conform to the requirements set forth in the RFP and such procurements will usually be more appropriate for an IFB. State and federal provisions apply. d. Multiple written proposals are required for Operational Services or the Sole- Source procedures must be justified. State and federal provisions will apply. Contract forms have been posted. Because of the nature of this work, there are stringent insurance requirements. e. Technology: An RFP is generally not appropriate for generic items where price competition i s available. For specialty items, like proprietary technology, proposals must be submitted in the form and manner prescribed in the RFP. Multiple bids/proposals are required for the product purchased, but this procedure is only appropriate for specialty items where selection will be based upon factors besides price. Multiple written proposals are required or the Sole -Source procedures must be justified. State and federal provisions apply. e. Multiple proposals are required for Consultant services. Proposals must be in writing. The RFP procedure may only be used for services and Consultants where the decision to award will be based upon factors other than price. As provided by the Brooks Act, in procuring architectural and engineering services, the award will be exclusively on the basis of factors other than price. State and federal provisions apply and the insurance requirements may be stringent depending on the type of work. f. To comply with The Brooks Act, proposals will be evaluated in all areas except price. Price will be provided in a separate sealed envelope. The County will then open the pricing envelope for the most qualified offeror and begin to negotiate price. Failing agreement on price, the County will begin negotiation with the next most qualified offeror until agreement is reach on price that is fair and reasonable. If the County is unable to reach agreement 26 with any offeror, a new RFP must be issued. T h e C o u n t y may not reopen negotiations with any offeror during the initial procurement process. Post -Proposal Conference: When the proposed Contract is for large-scale purchase of goods or services, a conference may be held before proposals are received. This is an opportunity for prospective proposers to ask questions about the scope of work, specifications or other commercial language requirements. Negotiations: Contract negotiations are initiated with the proposer(s) identified to be within the competitive range, or with the proposer(s) that have submitted the superior proposal(s). Negotiations are conducted in accordance with guidelines stipulated in the RFP. When negotiations and the price/cost analysis are completed, a Contract award recommendation is presented to the proper authority for consideration. At all times the County retains the right to reject any or all proposals. Contractor Selection Procedures: In addition to determining bidder/proposer responsibility when drafting procurement documents, The County shall consider the following criteria in Contractor selection: 1) Is technically qualified to perform the proposed work; 2) Has, or can secure adequate financial resources to perform the proposed work or deliver the proposed goods; 3) Is able to comply with the delivery or performance schedule, taking into account all existing business commitments; 4) Has a satisfactory record of past performance; 5) If selected, would not result in a conflict of interest, with regard to other work performed by the firm, or individual staff conflicts. Qualifications may include the length of time a firm has been in business, the expertise and experience of staff and the bidder's experience with projects of similar scope and size. Appropriate business references shall also be required. Contract Award: As negotiated, proposals may be rejected or a proposal may be withdrawn. If an agreement beneficial to the County is negotiated, and terms accepted by both sides, a Contract will be recommended for award. Award will be made in accordance with the St. Lucie County Purchasing Manual that is attached, based upon the most superior final proposal from a responsible firm. The Contract will be based on the form included in the RFP along with all required state and federal provisions. Scope of the work, prices, rates and terms for payment will be described in detail as negotiated by the parties. After the Contract has been formally awarded by the County, signed and returned with all necessary documentation (insurance certificates, performance bond, etc.), the Contractor is notified by the Purchasing Manager and/or Transit Manager to submit the signed agreement original(s) together with any commercial requirements (bonds, insurance certi ficates). Notices to proceed are signed by the Project Manager or his/her designee. Before the Contractor can begin work, it must sign the Contract and comply with the Contract requirements. Sole or Single Source (Non -Competitive Negotiations) Non -Competitive Negotiation involves procurement through solicitation of a proposal from a Sole Source, or, after solicitation of a number of sources, competition is determined to be inadequate. A Contract amendment or change order that is not within the scope of the original Contract is considered a sole source procurement that must comply with this section. Procurement by Non -Competitive Negotiation may be used only when procurement is infeasible under other methods and at least one of the following circumstances applies: • The item is only available from a single source; 27 • A public exigency or emergency exists whereby the urgency for the requirement will not permit a delay resulting from competitive solicitation • The FTA authorizes Non -Competitive Negotiation (for Federally -funded Contracts only) • After solicitation of a number of sources, competition is determined to be inadequate • Infeasible to use small purchase, sealed bid, or competitive procurement • Cost and price analysis are required 28