TABLE OF CONTENTS REQUEST FOR PROPOSAL PROCEDURES MANUAL. Section Topic Page

Transcription

1 REQUEST FOR PROPOSAL PROCEDURES MANUAL TABLE OF CONTENTS Section Topic Page 1 INTRODUCTION Sole Source Equipment, Supplies, Maintenance, Repair, Construction City wide Personal Service Agreements Authoritative References 5 2 GETTING STARTED Preparing the Scope of Work Request For Information (RFI) Request For Qualification (RFQ) Notice of Intent to Contract Form Mandatory Union Notification Personnel Department 1022 Information Form CAO Notice of Intent to Contract Preliminary City Attorney Review of RFP Council Approval/Funding REQUEST FOR PROPOSAL FORMAT RFP Numbering RFP Format Outline Cover Page Introduction General Information Statement of Work Specifications Proposal/Quote Section Transfer of Skills General Terms and Conditions Specific Terms and Conditions Payment Terms Appendices Evaluation Criteria Request for Proposal Schedule Proposer Checklist Proposer Background Information Page and References Prior Contract with the City of Los Angeles Proposer Signature Declaration Page 14 4 CONTRACT PROVISIONS AND CERTIFICATIONS Standard Provision for Personal Services Contracts Non-Discrimination Practices and Affirmative Action Program All Contracts Proposals/Responses for Construction Contracts from $1,000 to Less than $5,000 and Non-construction Contracts of $1,000 to Less than $100, Proposals/Responses for Construction Contracts from $5,000 or more and Non-Construction Contracts of $100,000 or more Insurance and Indemnity (All Proposals)

2 4.1.3 Service Contractor Worker Retention and Living Wage Ordinances Prior to Issuing the RFP / Request for Bid (RFB) Determination of Coverage Review of Submitted Bids and Proposals for LWO Requirements Execution of Agreement Employee Information and Subcontractor Information Submission of Copies of the Executed Agreement Responsibility When More Than One Awarding Authority Is Involved Bearing the Cost of the Living Wage Ordinance Equal Benefits Ordinance (EBO) Business Tax Registration Certificate Child Support Obligations Discounts Language Minority, Women and Other Business Enterprises Policy (over $100,000) Contractor Responsibility Program Small, Local Business Preference program Other Clauses, Terms and Conditions 23 5 DISTRIBUTING THE RFP TO POTENTIAL VENDORS Approval to Issue Request for Proposal Commission/Board Approval Required General Manager Review Response Time Limits Identifying Potential Vendors M/WBE Vendors Sole Source Mailing RFP s Advertising Responsibility for Placing Advertisements Advertising Content The WEB Page Advertising Time Limits PRE-PROPOSAL CONFERENCE Attendance Sheet Information Discussed Post Meeting Distribution of Materials Using the Internet For Questions and Answers RECEIVING COMPLETED PROPOSALS Release of Information 28 8 EVALUATING PROPOSALS Selection of Evaluation Committee Responsibility of Evaluation Committee Evaluation Criteria and Rating Format RFP Evaluation Form sample RFP Sample Evaluation Summary Sheet Evaluation of Proposal Pre-Screening Proposals Determining Good Faith Effort Compliance for MBE/WBE/OBE Verification of Affirmative Action Information Verification of Reference Verification of Prior City Contracts

3 8.6.6 Rating the Proposals Oral Presentations Evaluation Committee Recommended Vendor Selection Evaluation Committee Written Report NOTIFYING PROPOSERS PRELIMINARY APPROVAL PROCESS Commission/Board Approval Required General Manager Review Mayor/Council Review NEGOTIATIONS Negotiating the Terms and Conditions of the Contract PREPARING THE FINAL CONTRACT Contract Format Starting the Contract List of Contract Documents and the Order of Precedence Appropriate Terms and Conditions Review Draft of Contract with Vendor Signature Sheet OBTAINING FINAL CONTRACT APPROVAL Mayor s Office/ CAO Responsibilities Charter Section 1022 Determinations Risk Manager Approval City Attorney Contractor Review Form Contractor s Signature City Clerk CONTRACT ADMINISTRATION Implementation Meeting Establish Reporting and Evaluation Procedures Living Wage Reporting/Updating/Invoicing Handling Problems Contract Changes/Amendments Notice of Intent to Contract for Amendments, Extensions Handling Poor Performance Default Notice Canceling the Contract CONTRACT EXPIRATION, EXTENSIONS AND NEW RFP Contract Expiration Extensions Preparing a New RFP RFP/CONTRACT MASTER FILE GLOSSARY.. 50 APPENDICES 55 3

4 1 INTRODUCTION Departments of the City of Los Angeles (Departments) determine the need for a professional/personal service contract. This type of contract is for unique, scientific, expert, or technical services of a temporary and occasional nature, performed by independent contractors whose occupation is the rendering of such services. Professional service contracts are issued as Personal Service Agreements (PSA) or Authority for Expenditure (AFE), which are issued under the authority of Department general managers. Proposals for professional/personal services are usually sought by a Request for Proposal (RFP) or a Request for Qualifications (RFQ). Responsibility for preparing these documents is assigned to the individual departments. Within each department an employee is usually assigned as the Contract Administrator. The Contract Administrator is responsible for preparing the requesting documents and administering the resultant contract. In the RFP process, cost is usually one of several selection criteria that proposers should address in their proposals. By contrast, in the RFQ process, cost becomes a selection criterion only after qualified proposers have been identified from a review of their qualifications. RFQs are usually reserved for the selection of engineers, architects, or other highly specialized technical providers. The purpose of this manual is to: 1. Serve as a reference guide for the uniform preparation of RFPs and RFQs issued by each of the departments of the City of Los Angeles. 2. Provide for the uniform preparation of the resulting contracts for professional/personal services. 1.1 Sole Source Professional/personal services can usually be performed by more than one independent contractor/consultant (individual, firm, partnership, or joint venture). Such services should be awarded on the basis of competitive bidding through the RFP/RFQ process. Some services, however, can only be satisfactorily performed by one independent contractor/consultant, who is therefore a sole source contractor/consultant. Contracts for these services are not subject to competitive bidding (see APPENDIX #1, City Policy on Sole Source Contracts). It is the responsibility of the Contract Administrator to conduct a good faith review of all available sources to determine that there is only one source for the required service. A record of sole source procurements shall be maintained as a public record listing the contractor s name, the amount and type of contract. Departments should be careful to maintain these records because the Mayor, City Council, City Controller and others may periodically request reports on sole source contracting. When a sole source situation is identified, the Contract Administrator is responsible for negotiating the price, delivery and terms of the contract and maintaining appropriate record keeping supporting sole source selection. 1.2 Equipment, Supplies, Maintenance, Repair, Construction The Department of General Services handles purchases of equipment, supplies, maintenance, repair, construction and other routine services that can be competitively bid. Non-proprietary departments request these items through the Supply Services Division, Department of General Services. For procedures related to purchasing supplies, equipment and materials see the City s Procurement Manual. 4

5 1.3 City wide Personal Service Agreements In some cases more than one department may use a single Personal Service Agreement. In those instances, the lead department should establish an RFP team comprised of representatives from affected departments/divisions to jointly prepare the scope of work requirements. It is also advisable to have a representative from the City Attorney s Office as a close consultant in the preparation process. RFP development team members should also participate in the PSA selection process. 1.4 Authoritative References The following information is a summation of the current legal references and requirements for preparing contracts. The full text of the sections cited below is available in the Appendices as listed: Charter Section 1022 authorizes the City to contract for work when the City Council determines that such work can be performed more economically or feasibly by INDEPENDENT contractor/consultants than by City employees. The Personnel Department Classifications Division must determine, in advance if the work can be done by City employees (i.e., if there is an appropriate classification). In the case of departments having control of their own revenues and funds, the boards of commissioners have authority to make Section 1022 determinations (see APPENDIX #2, Charter Section 1022). Charter Section 370 (Contracts) mandates that all contracts must be made in writing or in such manner as provided by ordinance. The draft contract shall be approved by the board, officer or employee authorized to make the same, and approved by the City Attorney as to form (see APPENDIX #3, Charter Section 370 and Administrative Code 10.2). Charter Section 371 defines personal services contracts and details the requirements of the competitive bid process. While personal services contracts may be excluded from the provisions of Section 371 in accordance with Section 372, all contracts are awarded on a competitive basis (see APPENDIX #4, Charter Section 371 and 372). Charter Section 373 and Administrative Code 10.5 mandate that no board, officer or employee of the City shall make any contract, obligating the City, or any department of the City, to make or receive payments of money or other valuable consideration for a period longer than three (3) years, unless such contract shall have been first approved by the Council (see APPENDIX #5 Charter Section 373 and Administrative Code Section 10.5). Division 10 of the Administrative Code Article 1 through Article 9 specifically outlines City contract requirements; procedures and requirements for competitive bidding on City contracts; quarterly reports; use of independent contractor/consultants instead of City employees; small, local business programs; recycled products purchasing program; and bid preferences (see APPENDIX #6, Administrative Code Division 10, and Sample of Authority for Expenditure form). 5

6 Executive Directive (City of Los Angeles Minority, Women and Other Business Enterprise Program) requires use of the Good Faith Effort Outreach Program, outlines Departmental responsibilities, appoints the Mayor s Office of Economic Development as program lead, and mandates reporting requirements (See APPENDIX #19, Executive Directive ). Executive Directive No. 3 (ED #3) issued October 20, 2005 provides in part that professional and personal services contracts or contract amendments meeting certain criteria shall be submitted to the Mayor s Office for review prior to execution (see APPENDIX #7: Executive Directive ED # 3, Executive Review and Approval of Departmental Requests for Regular and Semi-Proprietary Departments. The Contractor Evaluation Ordinance adopted by City Council on December 15, 1999 implemented a contractor evaluation program for personal services, purchasing and construction contracts, and the establishment of databases to track contractor performance that would be accessible to and considered by departments prior to entering into contracts (see APPENDIX #28, Contractor Evaluation Ordinance and the Contractor Evaluation Programs Administered by the Department Public Works, Bureau of Contract Administration). Internal Revenue Service Publication 15A is a guideline that may assist in determining whether a worker is an employee or an independent contractor/consultant and as such whether sufficient control is present to establish an employer-employee relationship. The CAO developed a contract review form to determine if a contractor is a contract employee. This form is important because it helps determine the City s tax liability to the IRS. This form should be submitted to the City Attorney for review at the same time the draft contract is submitted. The form should then be forwarded to the Controller s Office once the contract is approved (see APPENDIX #8, IRS Publication 15-A, and CAO Contractor Review Form; and APPENDIX #9, City Attorney s Opinion). Contracts over $25, with a term longer than three months are required to comply with the Los Angeles Administrative Code Sections Service Contractor Worker Retention Ordinance (SCWRO) and Living Wage Ordinance (LWO). The ordinances require that, unless specific exemptions apply, the contractor is required to provide the following: (a) Retention by a successor contractor for a 90-day transition period of employees who have been employed for the preceding 12 months or more by the terminated contractor or subcontractor, if any, as provided in the SCWRO; (b) Payment of a minimum living wage and certain benefits to employees, as defined in the LWO (see APPENDIX #21 Service Contractor Worker Retention Ordinance # and Living Wage Ordinance #172336). Additional legal references are provided in the appendices (see List of Appendices). 6

7 2 GETTING STARTED Before preparing a RFP for the procurement of services, several preliminary activities should be performed. These activities include: 1. Clearly identify the City/Department s needs and define the results that the department expects. 2. Research and consult with existing contractor/consultants who hold current contracts with City departments and other governmental agencies, i.e. State of California, Federal Government, County of Los Angeles, etc. 3. Submit the Notice of Intent to Contract form to CAO and the Charter Section 1022 determination forms to the Personnel Department. Obtain an estimate for the proposed services from at least one independent contractor (see APPENDIX #2, Charter Section 1022). 4. Research the market for potential contractors and services that are offered. The Information Technology Agency maintains a computerized consultant directory. Firms are listed according to their fields of expertise. Log on to the Los Angeles Business Assistance Virtual Network ( to view the consultants registered with the City.. 5. Develop an approach to the procurement process. Once these activities are completed, the development of the RFP can begin. 2.1 Preparing the Scope of Work After the needs have been determined and the research is done, a scope of work document must be prepared. The scope of work describes in general terms the nature and schedule of the work to be accomplished by the contractor. The scope of work will be used to formulate the evaluation criteria in the RFP. It is important that the scope of work be clearly and accurately defined since it will be the basis for the RFP, the evaluation criteria, the resulting contract, and the ultimate work product Request for Information (RFI) There may be occasions when the actual scope of work is not known or difficult to define or when a department needs to develop a pool of likely proposers. It may be necessary to prepare an RFI. An RFI is a solicitation of ideas, solutions and/or recommendations to assist the department in the development of a scope of work for an RFP. It is advisable to send an RFI to the same potential vendors that will subsequently receive the RFP. The RFI should have a deadline of two to three weeks so that the RFP is not delayed Request for Qualification (RFQ) An RFQ is used to gather information about vendors to determine if they are capable of performing certain types of services for the City. The RFQ might ask for information such as the size of the company, the amount of business conducted during the last year, the number of customers for projects similar to what the city is contemplating, the cost per project and time frame for completion, and appropriate references. An RFQ is typically used when the City wishes to select a vendor to help develop a project (including project scope, cost, time frame, staffing, etc.) and to subsequently implement that project. 7

8 2.2 Notice of Intent to Contract Form Mandatory Union Notification Once the scope of work has been determined, and a decision is made to prepare an RFP, the Charter Section 1022 Determination procedure must be initiated prior to advancing any other aspect of the project. The process is summarized step-by-step on pages three and four of the 1022 packet available from CAO (see APPENDIX #2, Charter Section 1022). 2.3 CAO - Notice of Intent to Contract A Notice of Intent to Contract must be sent to the CAO - Employee Relations Division. It is important that the department s Contract Administrator communicate with the Employee Relations Division when there are proposed contracts. The Contract Administrator must be familiar with the language and the provisions outlined in the affected Memorandum of Understanding in order to avoid delays later in the RFP process. The requesting department must also submit a Notice of Intent to Contract whenever there is an amendment to or extension of an existing contract. This must be done regardless of the source of funding for the project (see APPENDIX #10, Notice of Intent to Contract). The Employee Relations Division maintains a list of potential contracts and amendments and extensions to existing contracts. This listing is made available, upon request, to interested employee labor organizations. Because the list contains only general information regarding the potential contracts, labor organizations seeking details on the proposals may call the specified department contact person for further information (see APPENDIX #11, Article 2.10 MOU SEIU, Contracting Out). The Notice of Intent to Contract form is to be completed by the department. Distribution of the forms is as follows: Original To: City Administration Officer Attention: Employee Relations Division Copy To: Departmental Contract Administrator s file. The Notice of Intent to Contract form and instructions are available at Personnel Department 1022 Information Form The Personnel Department determines whether the City has potential resources to perform the scope of work noted in the RFP. Their assessment will begin with the submittal of the Personnel Department 1022 Information Form, which can be directly accessed via Intranet The Personnel Department findings are forwarded to the CAO where the proposal undergoes a feasibility review. The Personnel Department also returns a copy to the Department contact. The 1022 Information Form is to be completed by the department. Distribution is as follows: Original To: Personnel Department Attention: Employee Classification Copy To: Departmental Contract Administrator s file 2.5 Preliminary City Attorney Review of RFP Once the requesting department has prepared a Request for Proposal, it is strongly recommended that a copy be provided to the City Attorney for review before going 8

9 forward in the process. This step is designed to protect the City from any legal challenges that might arise later. The City Attorney will make sure that the document is legally defensible. This step will also expedite the City Attorney's contract approval review process described later in this guide. 2.6 Council Approval/Funding Council approval and securing of funding is essential to the project. If there are no funds in the department s budget for the project, or if it is a substantially new or controversial project, the Mayor and City Council should be made aware of the pending RFP. In order to secure funds and approval, the requesting department should advise the Mayor and Council in a detailed report outlining the reason for contracting/consulting and whether funds are available in the department s budget to pay for the proposed contract. If funding is not available in the budget, the department should state what source of funding would be used (or requested) to secure the contract (see Appendix #12, Sample of Council Approved Funding). If the Personnel Department determines that City forces could be used, the departmental CAO budget analyst consults with the Personnel Classification Division to determine whether the necessary expertise to perform the work is available within the City. The City Council allows for contracting out work that City employees could otherwise accomplish when that work can be done more economically or feasibly by the contractor/consultant. The Council finding will be based on the department s rationale under Charter Section 1022 for contracting out this work (see Appendix #2, Charter Section Use of Independent Contractors). The following criteria can be used to assess the feasibility of a service contract (more than one reason may apply): 1. The work to be done is of a limited or intermittent nature. 2. The City could not the knowledge and abilities required to accomplish the work in another capacity after the work is finished. 3. Persons with the type of expertise needed to accomplish the work cannot be employed under Civil Service Procedures in a timely fashion. 4. City forces are not available within existing staffing levels to accomplish the work, and no additional staff has been authorized. 5. The need for an independent study, audit, appraisal, or for a specific contractor having proprietary knowledge of the services to be provided requires the use of a contractor. 6. The work can be performed more economically. 9

10 3 REQUEST FOR PROPOSAL FORMAT The outline in this section lists the major components of the RFP and corresponds to a sample RFP format provided in Appendix #13. This outline provides the basic format for a RFP document. It includes all the components needed for preparation of an RFP. The scope of work in each RFP is designed to meet the specific needs of each department. However, all RFPs, no matter what department they are written for, have many similar requirements. It is these areas of similarity that should be consistent throughout the Department. The sample document is a boilerplate to be used in preparation of an RFP. The RFP boilerplate is a standardized format intended to help the Contract Administrator organize requirements and communicate evaluation criteria to potential proposer/contractors. The following text will guide you through the sample document. In the sample RFP, recommended language and format is typed in regular font. Recommended language is information that should be included in most RFPs. However, there may be cases where the language does not pertain to a specific RFP and should be deleted and/or substituted for. Information that is specific to an RFP must be provided by the City department and is noted in brackets [and the font is in bold, gray italics]. 3.1 RFP Numbering Each RFP should be assigned a unique, identifying number. This number is sequential and is generated in each division. The master list should be kept in the files. 3.2 RFP Format Outline (see Appendix 13, Sample RFP) Cover Page The Cover Page summarizes the pertinent information connected to the Request for Proposal. The format, as shown, provides information that prospective bidders require for determining whether or not to bid Introduction The Introduction describes the scope of work and furnishes a point of contact for proposer questions. The Introduction page can be in the form of a letter or a Board, Commission or City Council Resolution. This is also the place to describe clearly and concisely the nature, scope and schedule of work to be contracted or other components that may have been omitted by the Resolution. In essence, it is an overview of the information that will be specified in detail throughout the RFP. A stand-alone statement should be added identifying the purpose of the request General Information This Section is for information that the proposer should know and understand before proceeding with a proposal. Instructions are provided for the format and submittal of the RFP, as well as other recommended clauses to assist the proposer in preparing the RFP Statement of Work Specifications Proposal/Quote Section The statement of work must be clear and specific. The proposer must be able to understand exactly what is being requested. The scope of work statement is the 10

11 basis for development of performance standards that will be included in the contract. The scope of work statement is center point of the RFP. The Contract Administrator is responsible for preparing a concise scope of work statement. However, the Contract Administrator does not develop the scope of work by him/herself. A team consisting of subject matter experts in each component of the deliverable, such as finance, legal, administration, technical, etc., is assembled to assist in the development of the RFP. The team then applies critical elements of the scope of work to evaluation criteria for selection of the successful proposal or bidder. These same criteria will be applied to evaluating contractor performance during and after the contract period Transfer of Skills It is a good practice to decrease dependence on outside consultants whenever possible. One way to achieve this decreased dependence is to develop specialized skills in-house. This is usually accomplished by including training and/or a transfer of skills component in the RFP scope of work and in the contract deliverables whereby the contractor agrees to train City staff and transition the contract staff out of the project (see APPENDIX 13, Section 3.11: Replacement of contractor s staff). However, it should be noted that including such a training component is not always advisable. A City employee training and/or transfer of skills component should be included in the deliverables specified in the RFP and in the final agreement when each of the following conditions is met: a) The work is of a technical or specialized nature; b) City employees do not have the expertise to perform the work; and c) The department anticipates a long-term need for the specialized expertise. When including a training or transfer of skills component in an RFP or final agreement, it is important to clearly identify: a) Objectives, nature, scope and goals of the training program; b) Details describing the trainer and anticipated trainees; c) Skills to be transferred and the specific time frame to be met; d) Monitoring and evaluation requirements; and e) Cost. (See Appendix 14: CAO Report and Council Motion regarding cosourcing.) General Terms and Conditions The General Terms and Conditions section includes definitions of terms and clauses to inform the potential proposer of standard City of Los Angeles RFP requirements. City Attorney review of this section is required prior to sending the RFP to potential bidders. Some of the information in this section is to advise potential proposers of requirements that will be incorporated in the resulting contract. This will allow potential proposers to be fully aware of the requirements in advance and will eliminate any misunderstandings later. 11

12 3.2.6 Specific Terms and Conditions This section includes specific terms and conditions apply to the RFP Included in the example is recommended language that usually applies to every RFP. However, some language may not apply and may be deleted. The resulting contract should meet both your project goals and the City s contracting requirements. It is to the City s advantage to be as specific as possible to eliminate future problems in contract negotiations and administration Payment Terms The RFP template provides sample language for payment terms that may be appropriate. Payment terms such as graduated payments should be tied to deliverables when feasible. The City Attorney requires standard provisions to be included in every City Contract. The City s Standard Provisions and Social Program requirements are placed in this section (see Section 4 and Appendix #15: Standard Provisions.) Evaluation Criteria Evaluation criteria will differ with each RFP. The sample lists recommended criteria that may be used. Evaluation criteria must reflect what is being requested in the proposal. The Contract Administrator must determine the specific needs of the department. The maximum available points for each of the evaluation criteria factors must reflect the areas most important to the department. There are two views on listing Evaluation Criteria Weights: (1) It is a good idea and proposers will know what is important to the department, or; (2) The proposer may skew the response to target the most heavily weighted areas and not provide a well-balanced proposal Request for Proposal Schedule The proposed schedule is an estimation of milestone dates important to the RFP process. The proposal should state that the City reserves the right to change these dates. If a proposer s conference is scheduled after the RFP has been released, or if the opening date is extended, the Contract Administrator must send all proposers a revised schedule as an addendum to the RFP Appendices This section should contain all documents that the proposer will need in preparing the response to the RFP. This section should be prefaced with an index listing each document. This list is for the convenience of the proposer to ensure that all required documents are addressed Proposer Checklist The Proposer Checklist should be used by the Proposer to ensure that all required documents are included in the response. It will also be used by the Contract Administrator to verify that all required documents are received when the proposals are submitted. 12

13 Proposer Background Information Page and References The background information sheet is a required document. The department must specify the number of references required for the individual RFP. The larger the scope of work and the dollar amount, the more references should be required Prior Contract with the City of Los Angeles The City Council passed a resolution requiring all vendors submitting a proposal include a list of all City contracts held within the last ten years Proposer Signature Declaration Page The Signature Page is a required document and must be included in every RFP. 13

14 4 CONTRACT PROVISIONS AND CERTIFICATIONS Contract provisions included in the RFP inform proposers about administrative requirements that must be incorporated into the contract awarded to the proposer. The two types of terms and conditions are General and Specific. Certain contract provisions are subject to clarification or revised language. These provisions are to be found in the General Terms and Conditions section. Standard contract provisions that are not subject to negotiation during the bid process or re-negotiation after the contract is awarded are placed in the Specific Terms and Conditions section of the RFP. 4.1 Standard Provisions for City Contracts The City Council and the City Attorney have resolved that standard provisions for City Professional/Personal Service Contracts must be included in every RFP for Services. Non-compliance with any of the standard provision requirements will render the proposal non-responsive (see APPENDIX #15, Standard Provisions for City Contracts) Non-Discrimination Practices and Affirmative Action Program The successful proposer must comply with the City s Affirmative Action Program as a condition of contract award. It is included in the Standard Contract Provisions as PSC #13. If the proposer has a current and approved Affirmative Action Plan on file with the Bureau of Contract Administration (BCA) - Office of Contract Compliance (OCC), they should indicate the date of approval in their proposal/response in lieu of submitting the required documents provided in Appendix #16; o If the proposer/respondents have a current approved Affirmative Action Plan on file with another government agency, they should submit proof of compliance such as a copy of a contract or other documentary evidence generated by that agency. If the proposer/respondents do not have a current approved Affirmative Action Plan on file, they must submit the required documents provided in Appendix #16 (see APPENDIX #16, Affirmative Action). The following is a summary of the requirements: All Contracts Certification of adherence to Non-Discrimination Clause All subcontracts awarded by the prime contractor performing under the terms of the City contract shall contain a like Non-Discrimination Clause Proposals/Responses for Construction Contracts from $1,000 to less than $5,000 and Non-construction Contracts of $1,000 to Less than $100,000 Adhere to Non-Discrimination Clause. Designate a management level Equal Employment Opportunity Officer. Adhere to Equal Employment Practices Provisions. 14

15 Proposals/Responses for Construction Contracts from $5,000 or more and Non-Construction Contracts of $100,000 or more Adhere to Non-Discrimination Clause. Designate a management level Equal Employment Opportunity Officer. Adhere to Equal Employment Practices Provisions. Complete an Ethnic Composition of Total Work Force Report. A signed acceptance of the City s Affirmative Action Plan or the proposer s own plan for approval. This plan must contain, at a minimum, all of the elements of the City s Plan Insurance and Indemnity (All Proposals) Vendor provided insurance shall be required in every personal services agreement. The indemnification requirement is placed in the Specific Terms and Conditions section along with the Standard Provisions for City Contracts, Rev. 10/03 (see This requirement should not be amended or modified in any way. All employees (Contract Administrators) who originate bid specifications, requests for proposals or qualifications and/or contracts shall use the guidelines in the City s Risk Management Procedures Manual (maintained by the Office of the City Administrative Officer (CAO), Risk Management Section) to impose specific insurance coverages, limits and conditions on contractors and consultants. CAO Risk Management personnel will assist Contract Administrators as necessary, with risk assessments for projects having exceptional or unusual conditions to determine any additional coverages, limits or conditions to be imposed in place of those described in the Risk Management Manual. Contract Administrators can establish specific insurance requirements by reviewing previous contracts for the same or similar services, which have previously been reviewed by Risk Management. Based on this analysis, the Insurance Requirements Sheet (Form Gen. 146 at should be completed and enclosed with the RFP along with copies of the required City Insurance forms. Proper evidence of insurance must be provided and approved before work commences. The Contract Administrator is required to submit the contract s Insurance Requirements Sheet (Form General 146/IR) along with the appropriate completed City Insurance form(s) to CAO Risk Management. (The City Insurance forms can be found on interactive e-forms on the CAO Risk Management website at There are three ways to submit the completed City Insurance forms for review and acceptance determination: 1) Via (insurance.bonds@cao.lacity.org); 2) By mail or in-person at the public counter located at City of Los Angeles, CAO Risk Management, City Hall East Room 1240, 200 North Main Street, Los Angeles, CA Mail Stop 132 telephone (213) 978-RISK (7475); or 3) Via fax at (213) The Contract administrator can directly access and find all updated proof of insurance and accepted documents stored in the Insurance & Bond Tracking 15

16 System ( which is located within the City intranet CAO homepage website ( All operating departments can retrieve and print copies of approved documents directly from the system at the aforementioned intranet web address. Please note that Section of the Administrative Code imposes a duty upon every employee responsible for contracts (i.e., the City Contract Administrator) to keep adequate records and make written reports of any default, loss, or damage sustained by the City in connection with that contract. Vendors that do not comply with insurance requirements at any time during the term of the contract will not be paid and all work on City property by that contractor and subcontractors must cease until the requirement is met. The Contract Administrator is responsible for coordinating with CAO Risk Management, the Office of the City Attorney, and the BCA (which tracks vendor performance) whenever lapsed insurance compromises work-in-progress. The City Attorney determines whether or not work can continue Service Contractor Worker Retention Ordinance (SCWRO) and Living Wage Ordinance (LWO) The Living Wage Ordinance requires payment of a minimum living wage to employees of City contractors and their subcontractors (see LAAC Section 10.37). They are included in the Standard Contract Provisions as PSC #21. The Service Contractor Worker Retention Ordinance encourages the retention of existing service workers when a change in contractors occurs (See LAAC Section 10.36). As the Designated Administrative Agency (DAA), the Bureau of Contract Administration (BCA) is charged with administering and monitoring compliance with the LWO and the SCWRO. The Contract Administrator may obtain current rules and regulations and the most recent forms at Prior To Issuing the RFP/Request for Bid (RFB): Determination of Coverage Each individual department is responsible for making an initial determination of coverage regarding the LWO (See LWO Departmental Determination Form under the Living Wage Ordinance available at %20Departmental%20Determination%20Form.pdf). The LWO presumes that all agreements are subject unless an exemption is approved by the BCA. A RFP/RFB determined to be subject to the LWO must incorporate the standard contract language explaining the requirements of the LWO including current wage rates. Additionally, a City contractor application for exemption should also be included in the RFP (see Application for Small Business Exemptions available at %20Small%20Business%20Exemption%20Application%20(English).pdf) Review of Submitted Bids and Proposals for LWO Requirements The department must review the submitted bids or proposals to determine if a bidder or proposer has submitted a Declaration of Compliance or whether the bidder or proposer is applying for an exemption from the LWO. If an application for exemption has been submitted, the application must be 16

17 forwarded to the BCA. If the BCA denies the request for exemption, the bidder or proposer is subject to the LWO. Without an approved exemption from the BCA, the bidder or proposer must adhere to the wage rates and other conditions of the LWO. The original exemption form showing approval by BCA is to be incorporated into the Personal Services Agreement Execution of Agreement All RFPs and City agreements must incorporate the standard LWO contract language referred to in Appendix A of Regulation 10 of the LWO (found at %20LANGUAGE.pdf) or the most recent Standard provisions for City Personal Services Contracts so long as the Standard provisions contain the LWO contract language Employee Information and Subcontractor Information Prior to or at execution of the agreement, the awarding authority shall provide the selected contractor and identified subcontractor(s) with the appropriate LWO and SCWRO information and form(s) available at the BCA website ( The awarding authority shall instruct the selected bidder to submit the form(s) directly to the BCA Equal Employment Opportunity Enforcement (EEOE) Section within 30 days of execution of the agreement Submission of Copies of the Executed Agreement Upon execution of the agreement, the awarding authority shall provide to the BCA a copy of the completed departmental determination form. The awarding authority shall provide the Controller s Office with a copy of the Departmental Determination Form and an approved exemption form; otherwise payments due under the agreement may be withheld Responsibility When More Than One Awarding Authority Is Involved The lead awarding authority or City department responsible for the drafting and/or administration of the agreement shall be responsible for ensuring that requirements of the LWO and SCWRO are complied with prior to execution of any agreement. The Rules and Regulations Implementing the SCWRO are at or%20the%20implementation%20of%20the%20scwro.pdf. Review of the Rules and Regulations Implementing the LWO is available at pdf Bearing the Cost of the Living Wage Ordinance When the LWO was adopted, it was neither intended for the City to absorb the total cost of the higher wages, or for departments to accept a lower level of services. Rather, it was anticipated that the competitive bid process would enable the maintenance of current-level services while minimizing the impact of the higher costs of services rendered. In order to comply with 17

18 Council s intent relative to the implementation of the LWO, and to minimize its economic impact to the City, departments are urged to utilize the competitive bid process unless there is an overriding and compelling reason to do otherwise Equal Benefits Ordinance (EBO) No Awarding Authority of the City shall execute or amend any Contract with any Contractor that discriminates in the provision of benefits between employees with spouses and employees with domestic partners, between spouses of employees and domestic partners of employees, and between dependents and family members of spouses and dependents and family members of domestic partners (LAAC c (1). This requirement is included in the Standard Contract Provisions as PSC #25. The Equal Benefits Ordinance (EBO) applies to any City agreement over $5,000 executed, amended, or renewed after January 1, This includes agreements for the purchase of goods, services, construction, and leases. If a bid package was advertised and made available to the public prior to January 1, 2000, the agreement that results from that bid package is not subject to the requirements of the EBO until the agreement is subsequently amended or renewed. Certification of Compliance (Form OCC/EBO-1): For contractors who will comply with the EBO by offering equal benefits. Reasonable Measures Certification (Form OCC/EBO-2): For contractors who will comply with the EBO by offering the cash equivalent. This form must be submitted along with the Certification of Compliance (Form OCC/EBO-1). Provisional Compliance (Form OCC/EBO-3): For contractors who wish to request additional time in order to comply with the EBO. This form must be submitted along with the Certification of Compliance (Form OCC/EBO-1). While the prospective contractors are required to submit the completed certification form(s) when submitting a bid or proposal, the supporting documentation requested in the certification form(s) need not be submitted with the bid or proposal. Only the selected proposer will be required to submit the supporting documentation requested in the certification form. Contractors must submit an EBO Compliance Form to the awarding departments for each new RFP. This form can be obtained from The EBO Compliance Form from contractors new to the City is forwarded to the Office of Contract Compliance. The Contract Administrator must review the EBO Compliance Form from contractors appearing on the full compliance list. If the contractor s EBO Compliance Form indicates that there have been changes to its employee benefits, the EBO Full Compliance Listing may not be used and must forward the EBO Compliance Form to the OCC for review and an EBO Determination (see APPENDIX #22). A list of contractors determined to be in full compliance with the EBO can be found at 18

19 pdf. If the contractor s name appears on the list, departments may use a print out of the relevant page of the listing in place of obtaining an EBO determination from the OCC. The listing is updated every week by the OCC. Only contractors with Full Compliance, No Benefits, and One-Person determinations are listed. Waivers for special cases are possible, however, they are available under limited circumstances and require approval from the OCC. Department personnel must submit the Equal Benefits Ordinance Awarding Authority Request for Waiver form to OCC for determination prior to RFP publication. The Equal Benefits Ordinance Awarding Authority Request for Waiver form is available at Vendors requesting exemption from program requirements must do so on the EBO Compliance form Business Tax Registration Certificate (BTRC) Included in the Standard Contract Provisions, PSC #15 is the requirement that the proposer must have a BTRC prior to the award of the contract (see APPENDIX #24, BTRC Information) Child Support Obligations The City of Los Angeles has adopted a Child Support Obligation ordinance, which is included in the Standard Contract Provisions as PSC #19. This ordinance requires that all Contractors and Subcontractors, performing work for the City, comply with all reporting requirements and wage and earning assignments relative to legally mandated child support. As a result, every contract that is let, awarded, or entered into with or on behalf of the City of Los Angeles shall contain the following provision: The contractor(s) and any subcontractor(s) must fully comply with all applicable State and Federal employment reporting requirements for the Contractor(s), and any Subcontractor(s), employees. The Contractor(s) and any Subcontractor(s) must fully comply with all lawfully served Wage and Earnings Assignment Orders and Notices of Assignment in accordance with Ordinance , which can be reviewed at pdf. The ordinance is consistent with California Family Code Section Contractor(s) and subcontractor(s) must certify that the principal owner(s) thereof (i.e. any person who owns an interest of 10 percent or more) are in compliance with any Wage and Earnings Assignment Orders or Notices of Assignment applicable to them personally. The Contractor(s) and any Subcontractor(s) must certify that such compliance will be maintained throughout the term of the contract. Failure of the Contractor(s) and/or any subcontractor(s) to fully comply with all applicable reporting requirements or to implement lawfully served Wage and Earnings Assignments or Notices of Assignment or failure of the principal owner(s) to comply with any Wage and Earnings Assignments or Notices of Assignment applicable to them personally shall constitute a default under the contract. Failure of the contractor(s) and/or any subcontractor(s) or principal owner(s) thereof to cure the default within 90 days of notice of such default by the City shall subject the contract to termination. All Requests for Proposals, Requests for Qualifications, Invitations for Bids, advertisements for bids, and other similar documents must give notice of these 19

20 provisions to those who bid on or submit proposals for prospective contracts with the City (see APPENDIX #27, Complete Ordinance) Discounts Language On October 25, 2000, the Council approved language for use in RFP in the Standard Contract Provisions as PSC #24 and ensuing contracts to secure vendor discounts (see APPENDIX #30, Discounts Language). 4.2 Minority, Women and Other Business Enterprises Policy (over $100,000) The policy of the City is to provide minority business enterprises (MBE), women business enterprises (WBE), and all other business enterprises (OBE) an equal opportunity to participate in the performance of all City contracts including procurement, construction and personal services. This policy applies to all City departments authorized to award contracts. Each City department is responsible for the implementation of MBE/WBE/OBE procedures. The City of Los Angeles accepts vendors listed on the State of California s database as certified SMBE and/or SWBE firms. This listing is available at As this is a subcontractor outreach program, the Contract Administrator needs to assess the subcontracting opportunities and set a reasonable anticipated level of participation. When the work is highly specialized, proprietary, of an emergency, contingent or on an as-needed basis, the MBE/WBE/OBE Subcontractor Outreach program may not apply. All applicable proposers, for contracts over $100,000 are required to submit a MBE/WBE/OBE Subcontractors Information Form (Schedule A). This information must be returned with the completed proposal response (see APPENDIX #19, MBE/WBE/OBE Requirements). 4.3 Contractor Responsibility Program Each year the City spends millions of dollars contracting for the delivery of products and services from private sector contractors. The prudent expenditure of public dollars requires that the City s procurement process result in the selection of qualified and responsible contractors who have the capability to perform the contract. The Contractor Responsibility Ordinance (CRO) requires that each department make a determination as to whether prospective contractors are responsible and capable of fully performing the work before being awarded a City contract. The Ordinance applies to Requests for Proposals, Requests for Qualifications, Invitation for Bids, sole-sourced contracts, and any other procurement processes released to the public on or after September 4, The Ordinance requires prospective contractors to complete a Responsibility Questionnaire. A copy page will suffice if there are no changes from last filing. Completed Questionnaires should be reviewed for those exceptional responses that suggest the possibility of an unsatisfactory record of compliance with statutes and regulations and/or business integrity. The Questionnaire is available on line at 20