Tampa Bay Water Purchasing Procedures Manual

Transcription

1 2014 Tampa Bay Water Purchasing Prcedures Manual Bard f Directrs Tampa Bay Water 4/21/2014

2 PREFACE Recmmendatins frm the Perfrmance Audit cnducted by KPMG, Final Reprt, March 5, 2005: Tampa Bay Water shuld develp mre detailed prcurement plicies and prcedures t prvide guidance n the prcurement prcess since the prcess is decentralized acrss the rganizatin. Tampa Bay Water shuld re-evaluate amendments t existing general services cntracts fr studies such as the Vulnerability Assessment in questin. Tampa Bay Water shuld cnsider frmal prcurement f studies such as these r mre frmally dcument internal legal pinins n the need fr cntract amendments instead f frmal prcurement f services. Because prcurement is decentralized acrss the rganizatin, Tampa Bay Water shuld cnsider revising the existing prcurement prcedures t include a cmpleted scpe f services r cntract requirements prir t advertisement f the RFP int the apprval prcess (Cntract Ruting Frm) t help the prject manager r cnstructin supervisr negtiate the best price in relatin t the prject scpe. These recmmendatins revealed issues with cnsistency, cmpleteness and decisinmaking with the decentralized prcurement prcess used by the Agency at the time. Recmmendatins frm the Perfrmance Audit cnducted by LarsnAllen, Final Reprt, April 5, 2010: We recmmend that the Agency review the ptential f centralizing its purchasing prcess fr any areas which culd garner savings by cst ptimizatin t ensure ptimal use f resurces. This recmmendatin frm a secnd set f independent eyes revealed issues with ptimizatin with the decentralized prcurement prcess used by the Agency at the time. Staff s respnse t the Bard fr this recmmendatin: This recmmendatin was previusly reprted as cmpleted and varius measures had been implemented t centralize the purchasing prcess in the Operatins and Infrastructure Divisin by centralizing cntracts under ne Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 1

3 manager and assigning respnsibilities fr supplies and materials under tw ther persns. The bulk f the remainder f Agency purchasing is perfrmed by ne r tw individuals in each department where specialty prducts are needed, e.g. the reagents used in the labratry. Hwever, with the Agency rerganizatin, the Agency is planning n changing t a centralized purchasing prcess during FY13 and FY14. The implementatin f centralizing the purchasing prcess will cntinuusly be reviewed ver the next tw years t frmalize the prcess. This recmmendatin was given a tp pririty. On May 8, 2012, in the Finance and Administratin Divisin s Strategic Grup Design Wrkshp, a Purchasing Department under the Finance and Administrative Divisin was created with the fllwing purpse statement: The Purchasing Department manages prcurement, inventry and services fr the Agency. The department head was titled Purchasing Manager and given several supprting psitins. A department head was appinted, alng with sme f the supprting psitins. During the Lgistics phase f the rerganizatin effrt, departmental prcess respnsibilities were defined alng with the needs that appinted persnnel identified t be successful. Final rganizatinal changes were made in June 2013 t implement a fully centralized Purchasing Department. In May 2013, the General Cunsel s ffice was asked t review the established purchasing plicy (fr decentralized purchasing) t incrprate updated statutes and regulatins. A draft was prvided t the Purchasing Department in June In July 2013, the newly frmed Purchasing Department began t develp the first draft f the Agency s new Centralized Purchasing Plicy. Department staff members researched the purchasing plicies and prcedures f the Agency s Member Gvernments and fund that all had a centralized purchasing prcess. The first draft f this plicy leans heavily n the plicies and prcedures f the Member Gvernments, cmpiling the best practices amng them while incrprating the new statutes and regulatins identified by the General Cunsel s ffice. Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 2

4 Table f Cntents Chapter 1 Intrductin, Respnsibilities and Functins f the Purchasing Department Intrductin Respnsibilities and Functins Administrative Principles Fraudulent Miscnduct and Ethical Prcurement Standards 11 Chapter 2 Methds f Prcurement Intrductin Apprval Threshlds Prcurement Methds Exceptins Excluded Prcurement Cntracts 32 Chapter 3 Develpment and Award f Bids and Requests fr Prpsals Intrductin Training Pre-Prcurement Planning Prcess Slicitatin Prcess Submittal Review Prcess Award Prcess Special Prvisins 64 Chapter 4 Cntract Administratin Intrductin Definitins Initiatin f Prcurement Prcess Ntice f Award Receipt and Payment Prcess fr 68 Cmmdities and Services 4.6 Expediting Prcess Changes t Existing Cntracts Perfrmance Mnitring Renewals Cancellatin r Terminatin f Purchase Orders and Agreements 77 Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 3

5 Chapter 5 Vendr/Bidder Relatins, Cmmunicatin and Perfrmance Intrductin Vendr Registratin Bidder Qualificatins Bidder Ntificatin Cmmunicatin Between Bidders 80 and the Agency 5.6 Prper Authrizatin Evaluatin f Bids/Prpsals Bidder s Affirmatins Drug Free Wrk Place Prgram Public Entity Crimes Discriminatry Vendr List Scrutinized Cmpanies List Use f Tampa Bay Water fr 84 Marketing Prhibitin 5.14 Prtest Prcedures 84 Chapter 6 Insurance, Bnds and Depsits Intrductin Insurance Requirement Bnds and Depsits 89 Chapter 7 Purchasing Card (P-Card) Prcedures Intrductin P-Card Accunts and Authrized Use Prhibited Fees, Taxes r Purchases 93 n P-Card Accunts 7.4 Respnsibilities Training Prcurement Requirements Purchase Authrity Card Accunt Security Supprting Dcumentatin Recnciliatin Plicy/Prcedure Infractins Declared Emergency Prgram Sales Taxes Insurance Requirements fr Lease r Rental f Equipment 111 Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 4

6 7.15 VISA Liability Waiver Prgram 111 Chapter 8 Dictinary 113 Appendices Appendix A DemandStar Manual Appendix B Bank f America s Wrks Payment Manger Manual Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 5

7 1. INTRODUCTION, RESPONSIBILITIES AND FUNCTIONS OF THE PURCHASING DEPARTMENT 1.1. Intrductin The Purchasing Department prvides centralized prcurement supprt t the Agency. The purpse f the Purchasing Department is t prvide fr the prcurement f cmmdities and services in a timely and cst-effective manner and in accrdance with Bard Plicy. The purpse f this manual is t: Outline the practices, principles, and prcedures t be fllwed in the perfrmance f the purchasing functin. Prvide emplyees wh wrk in Purchasing with an understanding f their respnsibility, bjectives, limitatins, and duties within the framewrk f the Agency s rganizatin. Acquaint all emplyees with the purpse and functins f the Purchasing Department. T increase public ntice f bid pprtunities t prmte mre inclusin in apprpriate purchasing activity fr all cmpetitive business wners wh prvide a cmmercial, useful prduct r service typically purchased by the Agency. Cnvey t emplyees and thrugh them t vendrs, a clear understanding f the Agency s purchasing plicies and methds. Establish reasnable standards against which utside auditrs can measure the perfrmance f the Department s functins. This chapter identifies the specific respnsibilities and functins f Purchasing Department Designees When used in these Prcedures, any title such as General Manager, Purchasing Manager, r Requesting Department Manager, is presumed t include that persn s fficial designee as if the prcedure read General Manager r the fficial designee Use f the term Bidder, Prpser, Vendr and Cntractr Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 6

8 Thrughut this manual these terms have been used interchangeably and all are intended t refer t thse seeking t d business r are ding business with the Agency Respnsibilities and Functins Relative t Prcedures The Purchasing Department, under the Purchasing Manager, is respnsible fr develping and administering purchasing prcedures, initiating reprts necessary t permit analysis f purchasing perfrmance, prcessing bids, cnslidating purchases f like r cmmn items, analyzing prices paid fr equipment, cmmdities and services, and generally defining hw t btain savings and t crdinate purchasing prcedures. The Purchasing Manager is charged with the respnsibility f seeing that all purchases are made in accrdance with statutes and Agency rules The Purchasing Department develps and maintains the Agency Purchasing Prcedures Manual, which includes purchasing bjectives, standards, prgrams and prcedures fr the acquisitin f equipment, materials, cmmdities and services The Purchasing Department crdinates purchasing prcedures with all departments. Cperatin and understanding between departments is essential t the effective peratin f the purchasing prcess. Clse liaisn must be established between the departments and the Purchasing Department in rder t maintain an efficient and ecnmical purchasing prcess The Purchasing Department cnducts r crdinates training n a regular basis The Purchasing Department, in cnjunctin with the General Cunsel s Office, develps and maintains the standard language fr all prcurements Relative t Specificatins The Purchasing Department assists Requesting Departments in the preparatin and review f Specificatins. Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 7

9 The Purchasing Department assists Requesting Departments in keeping specificatins clear, pen and cmpetitive The Purchasing Department has full authrity t questin the quality, quantity, cmpetitive nature and kind f items requisitined in rder that the best interests f the Agency are served N specificatin will be changed r mdified by the Purchasing Department withut crdinatin with and the apprval f the Requesting Department Cnslidatin f Requirements The Purchasing Department may cnslidate purchases f like r cmmn cmmdities r services and enter int term cntracts t btain maximum, ecnmic benefits and cst savings The Purchasing Department may explre the pssibilities f buying in sufficient quantities t take full advantage f quantity discunts Priritizatin f Purchases The Purchasing Department determines the pririty f prcuring cmmdities and services that is in the best interest f the Agency, based n the prjected needs f the requesting departments Standardizatin The Purchasing Department may request departments t standardize cmmdities and services t prmte a cmpetitive envirnment, where practicable Bidder Relatins The Purchasing Department acts as the Agency representative(s) n all matters pertaining t purchasing and prmtes gdwill between the Agency and its suppliers The Agency, thrugh the Purchasing Department, encurages full and pen cmpetitin wherever pssible. All eligible Bidders Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 8

10 shuld be affrded an equal pprtunity t submit Bids/Prpsals and t cmpete n equal terms The Purchasing Department assures fair and equitable business dealings with all bidders/vendrs Departments may cntact vendrs t btain prduct r service infrmatin and budgetary prices nly fr purchases nt exceeding $35,000 per fiscal year. Departments, hwever, are nt authrized t btain cmpetitive qutes r bids frm vendrs fr purchases exceeding $35,000 per fiscal year Departments interviewing sales representatives regarding details f their prducts shuld recrd specific infrmatin relating t such visits and prvide thse recrds t the Purchasing Department Vendrs have the right, under Sectin , Flrida Statutes, t advise the Agency if they feel any language and/r requirements f a Specificatin inadvertently restricts r limits cmpetitin; r if, in their judgment, Specificatins d nt cmply with standard trade practices r impse an impractical r unreasnable prcedural burden During interviews with sales representatives n ne may cmmit themselves r bligate the Agency fr any prduct r service, r give any infrmatin regarding perfrmance r price which might in any way give ne vendr an advantage ver anther vendr. Such actin culd cmprmise the intent r integrity f a cmpetitive prcess, the Agency r its representatives During the prcurement slicitatin prcess, all cmmunicatin with Bidders shall be thrugh Purchasing Department Prcurement Analysis The Purchasing Department keeps infrmed f current develpments in the field f prcurement, including but nt limited t prices, market cnditins and new prducts, and secure fr the Agency the benefits f research cnducted in the field f prcurement by ther gvernmental jurisdictins, natinal technical scieties, trade assciatins, and private businesses and rganizatins. Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 9

11 Public Ntice The Purchasing Department prvides Public Ntice fr prcurements as detailed in Chapter Administrative Principles T prmte free and pen cmpetitin thrugh its specificatins and purchasing practices. In additin, the Agency strives t design specificatins fr cmpatibility with standard trade practices and t use prcedures in accrdance with the law and prudent business practice T achieve a higher degree f cperatin and crdinatin with requesting departments T imprve the speed f delivery t requesting departments by predetermining, thrugh cntracts r ther apprpriate means, the surce f supply befre the actual need fr a particular material becmes knwn T prcure cmmdities and services f the right quality in the prper quantity at the right time frm the prper surce, at a cmpetitive price T cnserve public funds by reducing csts and imprving the quality f materials purchased T buy at the lwest cst cnsistent with the quality needed t meet Agency requirements T ensure all Bidders are financially stable and capable f adhering t the specificatins and delivering quality cmmdities and services T cnsider new surces f cmmdities and services when pssible T fster gd supplier relatinships in rder t create psitive attitudes and t prmte the desire t furnish the Agency with new ideas, cmmdities and services, as well as better prices T maintain, encurage, and expand participatin in cperative purchases with ther gvernmental entities T maintain accurate recrds and cntrls. Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 10

12 1.4. Fraudulent Miscnduct and Ethical Prcurement Standards Intrductin The Agency and its staff are required t maintain independence and impartiality in the purchasing prcess when dealing with vendrs, bth in fact and in appearance, t preserve the integrity f the purchasing prcess and t ensure there is public cnfidence that cntracts are awarded equitably and ecnmically Fraudulent Miscnduct (Sectin Flrida Statutes, Standards f Cnduct fr Public Officers, Emplyees f Agencies and Lcal Gvernment Attrneys) SOLICITATION OR ACCEPTANCE OF GIFTS.--N public fficer, emplyee f an agency, lcal gvernment attrney, r candidate fr nminatin r electin shall slicit r accept anything f value t the recipient, including a gift, lan, reward, prmise f future emplyment, favr, r service, based upn any understanding that the vte, fficial actin, r judgment f the public fficer, emplyee, lcal gvernment attrney, r candidate wuld be influenced thereby DOING BUSINESS WITH ONE'S AGENCY.--N emplyee f an agency acting in his r her fficial capacity as a purchasing agent, r public fficer acting in his r her fficial capacity, shall either directly r indirectly purchase, rent, r lease any realty, gds, r services fr his r her wn agency frm any business entity f which the fficer r emplyee r the fficer's r emplyee's spuse r child is an fficer, partner, directr, r prprietr r in which such fficer r emplyee r the fficer's r emplyee's spuse r child, r any cmbinatin f them, has a material interest. Nr shall a public fficer r emplyee, acting in a private capacity, rent, lease, r sell any realty, gds, r services t the fficer's r emplyee's wn agency, if he r she is a state fficer r emplyee, r t any plitical subdivisin r any agency theref, if he r she is serving as an fficer r emplyee f that plitical subdivisin. Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 11

13 UNAUTHORIZED COMPENSATION.--N public fficer, emplyee f an agency, r lcal gvernment attrney r his r her spuse r minr child shall, at any time, accept any cmpensatin, payment, r thing f value when such public fficer, emplyee, r lcal gvernment attrney knws, r, with the exercise f reasnable care, shuld knw, that it was given t influence a vte r ther actin in which the fficer, emplyee, r lcal gvernment attrney was expected t participate in his r her fficial capacity Ethical Prcurement Standards State f Flrida Cde f Ethics T avid the pssibility f any misunderstanding regarding cmpliance with the laws and regarding any appearance f imprpriety, it is required that emplyees read and fllw the Cde f Ethics fr Public Officers and Emplyees, Chapter 112, Part III, Flrida Statutes. Questins invlving the legal interpretatin f the statutes shuld be directed t the Office f the General Cunsel. Any persns meeting the definitin f Lcal Officer as defined in Sectin (1)(a), Flrida Statutes, including Persnnel acting in the capacity f purchasing agent with purchasing authrity exceeding $20,000, r such ther Categry One limit as may be established by FS , must cmply with Sectin , Flrida Statutes, Flrida s Financial Disclsure Law. The General Manager, in cnsultatin with the General Cunsel, shall ensure cmpliance with this requirement Natinal Institute f Gvernmental Purchasing, Inc. (NIGP) Cde f Ethics The Institute believes, and it is a cnditin f membership, that the fllwing ethical principles shuld gvern the cnduct f Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 12

14 every persn emplyed by any public sectr prcurement r materials management rganizatin. Seeks r accepts a psitin as head r emplyee nly when fully in accrd with the prfessinal principles applicable theret and when cnfident f pssessing the qualificatins t serve under thse principles t the advantage f the emplying rganizatin; Believes in the dignity and wrth f the services rendered by the rganizatin and the scial respnsibilities assumed as a trusted public servant; Is gverned by the highest ideals f hnr and integrity in all public and persnal relatinships in rder t merit the respect and inspire the cnfidence f the rganizatin and the public being served; Believes that persnal aggrandizement r persnal prfit btained thrugh misuse f public r persnal relatinships is dishnest and nt tlerable; Identifies and eliminates participatin f any individual in peratinal situatins where a cnflict f interest may be invlved; Believes that members f the Institute and its staff shuld at n time r under any circumstances, accept directly r indirectly, gifts, gratuities r ther things f value frm suppliers; Keeps the gvernmental rganizatin infrmed, thrugh apprpriate channels, n prblems and prgress f applicable peratins, but persnally remains in the backgrund f emphasizing the imprtance f the facts; Resists encrachment n cntrl f persnnel in rder t preserve integrity as a prfessinal manager. Handles all persnnel matters n a merit basis. Plitical, religius, racial, gender and age cnsideratins carry n weight in persnnel administratin in the agency being directed r served; Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 13

15 Seeks r dispenses n persnal favrs. Handles each administrative prblem bjectively and empathetically withut discriminatin n the basis f principles and justice; and, Subscribes t and supprt the prfessinal aims and bjectives f the Natinal Institute f Gvernmental Purchasing, Inc. Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 14

16 2. METHODS OF PROCUREMENT 2.1. Intrductin This chapter will explain the different types f prcurement methd and the guidelines fr use Apprval Threshlds Amunt f Purchase Cumulative Signature Threshlds $0-$5,000 Level I (Currently titled Manager) $5,001-$20,000 Level II (Currently titled Sectin Leader/Senir Manager) $20,001-$50,000 Level III (Currently titled Divisin Officer) $50,001-$100,000 Level IV (General Manager) $100,001 and up Level V (Bard f Directrs) SPLITTING OF PURCHASES TO AVOID THE ABOVE LISTED REQUIREMENTS AT ANY DOLLAR LEVEL IS EXPRESSLY PROHIBITED. Purchase Order splitting is the intentinal use f multiple Purchase Orders t execute a Purchase, which has been planned and budgeted as a single purchase r prgram, fr the sle purpse f aviding purchasing requirements applicable t the higher dllar amunt f Purchase Prcurement Methds Infrmal/Small Prcurement Under $35,000: Definitin Purchases under $35,000, that are nt assciated with an active Agency cntract, are cnsidered a Small Purchase and an infrmal selectin prcess may be used. A Small Purchase is nt subject t the frmalities f the ther prcurement methds including advertisement. Small purchase prcedures are carried ut accrding t dllar levels indicated. Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 15

17 Prcurement Methd Dllar Amunt f Purchase Frmal Slicitatin (ITB/RFP) $35,000 r Higher Frmal Qutatin (RFQ 3-5 Written Qutes) $20,000 t $34,999 Small Purchase (2 r mre Verbal Qutatins) $5,001 t $19,999 User Purchase r P-Card (Qutes nt Required) Less Than $5, Prcedures $0-$5,000 Requesting Department staff members determine the need fr the Purchase. Written Specificatins are advised, but nt required. Requesting Department staff members determine that the items needed, r suitable substitutes, are nt inventry items and are nt stcked in the Agency Central Warehuse. Requesting Department staff members determine the availability f budget r funds fr the Purchase. Requesting Department staff members identify an apprpriate vendr and slicit a price. Requesting Department staff members btain dcumented apprval frm the Requesting Department Head. Requesting Department staff members use a P-Card t cmplete the Purchase (see Chapter 8), if the vendr will accept payment by credit card. If the vendr will nt accept payment by credit card, then Requesting Department staff members enter a Purchase Requisitin in MUNIS. $5,001-$35,000 Requesting Department staff members determine the need fr the Purchase. Written Specificatins are advised at all levels but required fr purchases greater than r equal t $20,000. Requesting Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 16

18 Department staff members develp r revise specificatins, as-needed. Requesting Department staff members determine that the items needed, r suitable substitutes, are nt inventry items and are nt stcked in the Agency Central Warehuse. Requesting Department staff members determine the availability f budget r funds fr the Purchase. Requesting Department staff members enter a Purchase Request in MUNIS, with Written Specificatins attached. If available, Requesting Department staff may attach any qutatins r ther infrmatin regarding surcing t the Purchase Request. When apprpriate fr the requested gds r services, Purchasing Department staff members identify any existing cperative cntracts, cntracts that can be piggybacked, r identify and slicit qutes in accrdance with Prcurement Methds. Qutes must cntain the cmpany name, the cmmdity r service being quted and a price in U.S. Dllars. The lwest price frm a respnsive, respnsible vendr which best meets the needs f the Agency is selected and dcumented by the Purchasing Department n the Purchase Request. If ther than the lwest price is selected, specific reasns shuld be dcumented. The Purchase Requisitin is reviewed and apprved by the Department Head, Sectin Leader and Divisin Head if applicable. The Department Head, Sectin Leader and Divisin Head are respnsible fr ensuring the apprpriateness f the qute slicitatin and selectin. The Purchasing Department issues the Ntice f Right t Prtest (Chapter 6.14) The Purchasing Department reviews, apprves and issues a Purchase Order Frmal Cmpetitive Sealed Invitatin t Bid (ITB): Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 17

19 Definitin The Invitatin t Bid is used fr purchases (single r cumulative) exceeding $35,000 when the Agency is capable f specifically defining the Scpe f Wrk fr which a Cntractual Service is required r when the agency is capable f establishing precise specificatins defining the actual Cmmdity/Services r grup f Cmmdities/Services required. The ITB, Scpe f Wrk, Specificatins and ther Bid Dcuments will specify the criteria upn which the Bid will be evaluated. Bids will be evaluated strictly against these criteria and Specificatins. Public Ntice is required fr an ITB. Award is made t the lwest qualified respnsive, respnsible Bidder meeting the criteria and Specificatins established in the ITB and des nt include discussins r negtiatins with Bidders Prcedures Frmal Cmpetitive Sealed Invitatin t Bid Prcedures are detailed in Chapter Frmal Cmpetitive Sealed Request fr Prpsal (RFP): Definitins The Request fr Prpsal is used when the purchaser has a general idea f what is required, but cannt develp the entire specific Scpe f Wrk r Specificatins which wuld be used in an ITB. The Request fr Prpsal, Scpe f Wrk, Specificatins and ther prpsal dcuments will specify the criteria against which the prpsal will be evaluated. Prpsals will be evaluated strictly in accrdance with these criteria and Specificatins. The RFP respnses are scred using a pint system with pints given t each Prpsal by an evaluatr r evaluatin team. A written summary f the rankings is prepared. This methd is primarily used in the acquisitin f Services but may be used fr the acquisitin f Cmmdities when cnditins exist that wuld make this the methd mst likely t btain the best value fr the Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 18

20 Agency. Public Ntice is required fr an RFP. Award is made t the qualified, respnsible Offerr whse Prpsal is determined t be the mst advantageus t the Agency, taking int cnsideratin the price, Specificatins and ther criteria set frth in the RFP. Certain RFP s are gverned by the Cnsultants Cmpetitive Negtiatin Act ( CCNA ), Sectin Flrida Statutes, which establishes selectin and cntracting prcedures by which the Agency must select architects, engineers, landscape architects, and surveyrs and mappers (referred t as Prfessinal Firms ) Prcedures The additinal prcedures used fr RFP s and fr CCNA RFP s are detailed in Chapter Frmal Invitatin t Negtiate (ITN): Definitins The Invitatin t Negtiate is used when the Agency determines that negtiatins may be necessary t btain the best value and/r the mst apprpriate Service/Cmmdity slutin. It is used when cnditins exist which indicate that an ITB r RFP will nt prve t be the mst cst-effective r efficient mechanism t purchase the needed Cmmdities and/r Services. Hwever, the Bard must determine and specify in writing the reasns that prcurement by ITB r RFP is nt practicable befre and ITN methd can be used. This methd slicits a grup f vendrs which may be capable f prviding the required Cmmdities/Services and generally brings the vendrs int the prcess f determining Scpe f Wrk/Specificatins fr the Prject. Public Ntice is required fr an ITN. If ne r mre f the fllwing criteria apply, an ITN may be the mst applicable purchasing methd. Award is made t the Offerr prviding the best verall slutin fr the Agency, taking int cnsideratin the Offerr s qualificatins and ability t Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 19

21 prvide the prpsed Services/Cmmdities, the csteffectiveness and efficiency f the prpsed slutin and such ther criteria as may be determined by the Agency. The Scpe f Wrk fr the Cntract cannt be accurately and cmpletely defined by the Agency. This ften ccurs fr acquisitin f rapidly changing technlgy r cmplex services. The Cmmdities/Services can be prvided in several different ways, any f which culd be acceptable. This ften ccurs where differing technlgies exist fr achieving the same r equivalent results. Cntractr qualificatins and the quality f the Cmmdities/Services t be delivered may be cnsidered mre imprtant than the Cntract Price. The Agency wants the respnses t be creative and prvide innvative slutins that may differ frm the requirements specified by the Agency. This prcess allws fr thse types f alternatives t be cnsidered. The respnses may cntain a different level f Cmmdities/Services than that requested, requiring negtiatin t reduce price f services t match available cntract funds r increase price t meet a higher level f service. Award is made t the Offerr with the best cmbinatin f Prpsal and Cntract Price qualificatins. Service prviders that may be prhibited frm prviding a Bid fr fees (architects, auditing services and certain ther prfessinal services etc.) Prcedures Frmal Invitatin t Negtiate Prcedures are detailed in Chapter 3.4. Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 20

22 2.4. Exceptins Emergency Purchases Definitins An Emergency is defined as an immediate need fr cmmdities and services, the lack f which wuld cause a disruptin f essential peratins where the prtectin r preservatin f public prperties wuld nt be pssible thrugh nrmal Prcurement prcedures r where there exists a threat t public health, welfare, r safety. The Bard shall have the authrity t determine a State f Emergency r a Disaster (relative t the Agency). Pursuant t Sectin 2.02(10)(a) f the Amended and Restated Interlcal Agreement prvides that with respect t cnstructin f imprvements t Tampa Bay Water facilities, the cmpetitive bidding requirement may be waived if the Bard determines that emergency circumstances are present. Cnsistent with Sectin (3)(a), Flrida Statutes, the public annuncement requirement fr the purchase f services and Cmmdities in excess f $35,000 r fr basic cnstructin csts in excess f $325,000 (r such ther amunts as is subsequently established fr Categry Tw and Categry Five, Sectin , Flrida Statutes, may be waived in the case f a public emergency certified and apprved by the Bard f Directrs Prcedures Nn-Declared Emergencies (recgnized by the Agency, but nt by the Cunty, Gvernr r the President) Emergency purchases during wrking hurs shuld be made thrugh the Purchasing Department except where there is an immediate threat t public health, welfare, r safety. Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 21

23 Outside f nrmal business hurs, the Divisin Head is authrized t determine and make emergency purchases, regardless f amunt. Prir apprval frm the General Manager is nt required. When making Emergency purchases utside f nrmal business hurs, the Divisin Head shuld take all reasnable measures t assure the lwest attainable cst fr quality cmmdities and services and must cntinue t emphasize public trust in ur purchasing practices. The Purchasing Department will issue each Divisin a series f authrized numbers t be used in case f an Emergency during nn-wrking hurs. These numbers can be given t vendrs as a Purchase Order number t bill against. Requesting Departments shall create a Requisitin in MUNIS listing the authrizatin number prvided t the vendr, as sn as pssible. Fr emergency purchases exceeding $5,000, within 10 wrking days, the Requesting Department shall submit a simple, written explanatin describing the situatin and reasn fr the purchase t the Purchasing Department t include in the file as justificatin fr nt btaining nrmal apprvals. Emergency purchases shall be presented t the Bard fr ratificatin as sn as practicable, depending n Bard meeting dates and deadlines, but n later than 90 days after the award. Declared Emergencies (recgnized by the Agency and the Cunty, Gvernr r President) The Purchasing functin under the Lgistics Sectin will prcure essential cmmdities and services during a Declared Emergency in cmpliance with the Cmprehensive Emergency Management Plan. Reprting will be dne as required by the Cmprehensive Emergency Plan. Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 22

24 Sle Surce Prcurement Definitins Sle Surce prcurements are nes in which the needed cmmdity r service is nly available frm ne surce r when it is determined by the Purchasing Manager that ther methds f prcurement are nt feasible r nt advantageus t the Agency. Cnsideratins fr justificatin f a Sle Surce prcurement may include: The cmmdity r service is wanted fr experimental trials, pilts, and/r testing. Additinal unanticipated cmmdities r services are needed t cmplete an nging task. The cmmdity is identical t existing equipment installed at ther Agency lcatins fr the same purpse. The cmmdity is a cmpnent, repair, r replacement part f existing equipment fr which n cmmercially available substitute exists and the purchase can nly be made frm the manufacturer r sle distributr. Exigent circumstances exist that dictate delivery is a critical factr and nly ne vendr is able t meet the time cnstraints. A request fr a prprietary item des nt justify Sle Surce prcurement if there is mre than ne ptential Bidder (e.g. multiple distributrs) fr the type f item sught Prcedures A Purchase Order Cntract may be awarded fr purchases exceeding $5,000 withut cmpetitive qutes r bidding if a descriptin f the Cmmdity r Service is psted n the Agency webpage fr at least seven (7) business days as required by Sectin (3)(c), Flrida Statutes and it is Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 23

25 determined and dcumented by the Purchasing Department, after reviewing any infrmatin received frm prspective vendrs, that there is nly ne qualifying surce fr the required Cmmdity r Service. All Purchases Orders t a Sle Surce vendr must be accmpanied by a statement f justificatin frm the requesting department which explains the basis fr the sle surce determinatin, including benefits t the Agency f sle surce purchase, adverse cnsequences fr the Agency f a cmpetitive prcurement, and effrts, if any, t cmpetitively bid and the results f thse effrts that lead t the sle surce purchase. The Purchasing Department and the Requesting Department may negtiate with an apprved Sle Surce vendr. Sle Surce purchases ver $100,000, must be apprved by the General Cunsel (as nted in Chapter "Review f Cntracts and Agreements"). The Sle Surce Purchase must als fllw all ther apprpriate prcedures (ther than the cmpetitive selectin requirement) specified fr the particular type and dllar amunt f Purchase. Pursuant t Sectin 2.02(10)(b) f the Amended and Restated Interlcal Agreement with respect t cnstructin f imprvements t Agency facilities, the cmpetitive bidding requirement may be waived if after cnsideratin f all available alternative materials and systems, the Bard determines that the specificatin f a sle surce material r system is justifiable based upn its design, cst, interchangeability r any ther relevant factr Cperative Purchasing Prgrams Intrductin Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 24

26 The Agency may, at the discretin f the Purchasing Department, utilize Cperative Purchasing agreements (which were cmpetitively bid) fr the purchase f Cmmdities r Services. Such Cperative Purchasing may include, but is nt limited t, jint r multi-party Cntracts with ther public entities in the State f Flrida, lcal gvernments, and pen-ended state cntracts made available by the Flrida Department f Management Services. Purchases may als be made under the GSA Federal Supply Schedule 70 r under the Crprate Schedule cntaining Infrmatin Technlgy special item numbers. Hwever, when using Cperative Purchasing agreements, Purchasing Department must exercise prudence and care t ascertain that the Purchase will meet Specificatins and the Cperative Purchasing agreement will prvide the mst cst effective methd fr making the Purchase, taking int accunt pricing frm ther surces and the administrative csts and time invlved with sliciting fr ther vendrs Jint Bidding Jint Bidding is a frm f intergvernmental cperative purchasing in which tw r mre public prcurement agencies agree n specificatins and cntract terms and cnditins fr a given item f cmmn usage and cmbine their requirements fr this item in a single request fr cmpetitive sealed bids/prpsals. Once submittals have been received and discussed by the participants, each public prcurement agency issues and administers its wn purchase rder r cntract. The Purchasing Manager shall have the authrity t jin with ther gvernmental entities in cperative purchasing ventures when the best interests f the Agency wuld be served. When participating in a cperative purchase where jint bidding is utilized, the fllwing prcedures apply: Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 25

27 A Lead Agency shall be designated t prepare and slicit Bids/Prpsals n behalf f the cperative purchasing participants. The Lead Agency shall survey the participants fr their requirements and prepare the Specificatins, Bid/Prpsal and Bidder s list fr review by the participating entities. The Lead Agency shall slicit, receive, pen and tabulate the Bids/Prpsals. Bids shall be evaluated based upn the Specificatins and criteria set frth in the Bid/Prpsal, and a recmmendatin fr award made. Purchases ver $100,000 in which the Agency is the Lead Agency require apprval by the Bard f Directrs. Purchasing under $100,000 may be awarded by the General Manager. Each Participating Entity shall issue its wn purchase rders and make its wn payments. Any pre-award disputes related t the Specificatins r bidding prcess shall be the respnsibility f the Lead Agency. Any ther disputes that arise after award between any entity and the Vendr shall be reslved by that entity and the Vendr. This des nt preclude participating entities frm wrking tgether t reslve a cmmn dispute Piggybacking Piggybacking is a frm f intergvernmental cperative purchasing in which a public purchaser requests cmpetitive sealed bids, enters int a cntract, and arranges, as part f the cntract, fr ther public purchasing entities t purchase frm the selected Vendr under the same terms and cnditins as itself. Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 26

28 Pursuant t Chapter , Flrida Statutes, Tampa Bay Water may purchase cmmdities and cntractual services, ther than services the acquisitin f which is gverned by s , frm the purchasing agreements f ther special districts, municipalities, r cunties which have been prcured pursuant t cmpetitive bid, requests fr prpsals, requests fr qualificatins, cmpetitive selectin, r cmpetitive negtiatins, and which are therwise in cmpliance with general law if the purchasing agreement f the ther special district, municipality, r cunty was prcured by a prcess that wuld have met the prcurement requirements f Tampa Bay Water, regardless f whether r nt the purchasing agreement cntains a clause allwing ther gvernmental entities t piggyback. The Requesting Department must submit dcumentatin frm the Lead Agency that includes: A cmplete cpy f the slicitatin; Tabulatin f all slicitatin respnses; A cpy f the award letter/mem/agenda item t the awarded Vendr; and, A cmplete cpy f the awarded Vendr s prpsal. The Requesting Department must dcument, in writing, that the cmmdities r services needed are within the scpe f the cntract, that the scpe meets the Requesting Department s needs and that the pricing is fair and reasnable. The Purchasing Department will review the Requesting Department s request and the cntract f the entity t determine if the Agency s requirements are met and if use f the cntract is in the best interest f the Agency. Cnsideratins include, but are nt necessarily limited t the riginal quantities in the bid, the reasnableness f price, current market, and applicable laws. Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 27

29 The cmmdity r service needed must be specifically within the scpe f the cntract awarded by the ther entity and the cntract must be active. Purchases cannt be made against a cntract that has expired. Any purchase rder issued shall reference the public entity s bid r cntract number. Any use f piggybacked cntracts requires apprval as identified in 3.2 abve State f Flrida Cntracts If the Purchasing Department r Requesting Department identifies an existing State Cntract that wuld meet the needs f the Requesting Department, that cntract may be used in lieu f cnducting a cmpetitive prcurement, pursuant t Chapter , Flrida Statutes. A review f the terms and cnditins f the State Cntract shall be perfrmed by the Requesting Department t determine if the cntract will meet the technical needs f the Requesting Department and is in the best interest f the Agency. The Requesting Department is required t administer the cntract in accrdance with the State Cntract s terms and cnditins After-the-Fact Purchases Intrductin Any purchase made utside f the Bard s Prcurement Plicy and Prcedures and prir t the issuance f a Purchase Order is an after-the-fact purchase Prcedures All Bidders are n ntice nt t perfrm any service r deliver any cmmdities withut a duly authrized Purchase Order. The Agency is nt liable fr payment f Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 28

30 any cmmdities r services received withut a Purchase Order. The Purchasing Department will include language with each Purchase Order that cmmdities r services prvided withut a purchase rder will nt be an bligatin f the Agency. Each department shall prepare a cntingency plan in rder t maintain the ability t make purchases in cmpliance with established plicy and prcedure and t prcess apprvals when the regular apprval staff is nt available. All Agency staff members are expected t make every pssible effrt, in gd faith, t avid after-the-fact purchases. If an after-the-fact purchase ccurs that exceeds $5,000, the Requesting Department must enter a purchase requisitin in MUNIS, the fllwing business day with a memrandum signed by the Divisin Head addressing the fllwing: The circumstances that resulted in an after-the-fact purchase; The necessity f the purchase and its public purpse; Evidence that the price charged was fair and reasnable; and, Actins taken by the Department t preclude recurrence f the after-the-fact purchase. All apprvals as utlined in 3.2 are required and must be btained befre payment against any invice r statement can be made Direct Purchases f Cnstructin Material Intrductin Fr sme cnstructin related equipment/material, it may be in the best interest f the Agency t purchase equipment/material directly rather than have the Bidder purchase the material. This Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 29

31 chapter utlines the cnsideratins t be weighed in determining the apprpriate purchase methd in each prject and prvides prcedures fr ding s Prcedures During the develpment f the Specificatins, the Requesting Department and its Design Cnsultant (if applicable) shall give cnsideratin t any material that culd be subject t Direct Purchase and whether items directly purchased wuld be installed by Agency staff r the Bidder, keeping the fllwing cnsideratins in mind: Advantages: Sales tax savings. Delivery f certain items with lng delivery times can affect the cmpletin f prjects. Generally, bnding is nt required fr material purchases (as it is fr cnstructin prjects), s additinal savings can be realized. In mst cases, by directly purchasing large equipment, the Agency has mre cntrl ver the quality f items purchased. The cst f the material is nt increased by the Bidder s verhead and prfit. Additinal savings might be realized by having Agency staff install the Direct Purchase material. Hwever, the savings will need t be weighed against any lss f Bidder guarantee/warranty. Disadvantages: Single pint f respnsibility It is imprtant that the Bidder maintains respnsibility fr the end prduct f its cnstructin and that the Agency nt Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 30

32 take n the risk f prviding equipment/material that is defective r late. Crdinatin f the rdering and delivery f cnstructin equipment/material is critical t the timely cmpletin f a prject. Late delivery culd result in claims by the Bidder fr additinal cmpensatin fr delays. The respnsibility fr the quality f the equipment/materials, depending n hw the purchase is made, rests with the Agency rather than the Bidder. Guarantee/Warranty can becme an issue when the Bidder and the material Supplier blame each ther fr a failure. If the Bidder purchases the material, the Bidder is slely respnsible fr the quality f the wrk. If large purchases are made directly, receiving and strage f the material may result in additinal csts. The Bidder s purchasing ability may be greater than the Agency s fr certain materials thereby resulting in the Agency paying a higher cst than the Bidder culd btain. The infrmatin prvided by the Requesting Department and Design Cnsultant shall be incrprated int the final Specificatins. The cnstructin Agreement shall require that the Bidder be respnsible, at a minimum, fr the crdinatin f all Direct Purchases, whether made by the Bidder r by the Agency. The Agreement shall clearly define the rle and respnsibility f the Bidder regarding Direct Purchases. At the Pre-Bid Cnference, the Requesting Department explains whether r nt any Direct Purchases are included in the prject and hw they will be crdinated. Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 31

33 If any equipment/materials are purchased directly, the agenda item fr the award shuld include a list t be directly purchased and the assciated dllar value Excluded Prcurement Cntracts Intrductin Due t their nature and/r necessity, sme Purchases are excluded frm the requirements fr Cmpetitive Bidding. The authrity t acquire the fllwing cmmdities and services is vested utside f the Purchasing Department and is nt subject t Prcurement Prcedures. Hwever, apprvals per 3.2 are still required Examples f Excluded Prcurement Cntracts Interlcal/Intergvernmental Agreements; Grants; Real Estate Lease, License, Purchase r Sale Agreements (which may include Cncessins); Labr and Emplyment Agreements; Insurance Agreements and Plicies; Public Art; Outside Legal Services; Securities, Financing, and Bnd Agreements; Appraisers (Real Estate); Banking services (bnd trustee, paying agents, escrw agents, service charges, etc.); Judgments, settlements and ppsing party's legal fees and reimbursed csts; Sftware supprt agreements; Mitigatin reimbursements t cmplainants; Flrida Retirement System; Payrll taxes (Federal Withhlding Tax, FICA, Medicare Tax); Pstage; Telephne services (excludes certain equipment purchases); Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 32

34 Advertising required legal ads fr purchasing, emplyment, legal ntices, and s frth; Principal and interest payments n debt instruments and all assciated issuance csts (all issuances f debt are apprved by the Bard f Directrs); Dues and memberships; Bks and subscriptins; Transprtatin and travel; Emplyee attendance at educatin and training seminars. (des nt include the hiring f prfessinals t prvide n-site training and seminars); Mandatry fees t gvernment agencies (vehicle registratins, permit fees, prfessinal and ccupatinal licenses, trash and sewer assessments, etc.); Disbursements frm Petty Cash; Legal and expert witness services; Utility Services Requesting Department Respnsibilities (including but nt limited t): Obtaining legal review; Obtaining financial, risk management, affirmative actin/equal pprtunity and administrative apprvals; Generating and prcessing Bard agenda items; Initiating apprpriate dcuments in MUNIS fr financial encumbrance and prcessing in a timely manner after Bard apprval; Mnitring cntracts including perfrmance, payment and renewals; Maintaining recrds, including: transfer f fficial recrds t the Recrds Department, public recrd requests, and department files. Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 33

35 3. DEVELOPMENT AND AWARD OF BIDS AND REQUESTS FOR PROPOSALS 3.1. Intrductin This chapter prvides infrmatin n the Prcurement Prcess fr Invitatins t Bid, Requests fr Prpsal (which includes CCNA) and Invitatins t Negtiate frm the planning stage thrugh award and delivery (cllectively referred t as Bids/Prpsals ). All three prcurement methds fllw the same prcedures detailed in this chapter unless therwise nted Training Prir t making any purchase, except fr Purchasing Card purchases, Requesting Department persnnel MUST attend MUNIS training and the Purchasing Department s Prcurement Manual training Pre-Prcurement Planning Prcess Prcurement Planning Meeting Prcurement Planning Meetings are needed t establish the methd f prcurement, determine funding, develp a schedule, discuss lessns learned frm previus prcurements, and address ptential challenges. Prcurement Planning Meetings are essential t the successful executin f the Agency s prcurement prcess The Requesting Department must cntact the Purchasing Department, in sufficient time, t discuss the need fr a Prcurement Planning Meeting, prir t initiating a prcurement prcess fr purchases exceeding $35,000. Failing t d s may cause a delay in the Requesting Department s anticipated prcurement schedule The Requesting Department shuld advise the Purchasing Department f any business decisins that may limit cmpetitin Decisins, r changes t decisins, made during the Prcurement Planning Prcess, relative t the methd f prcurement and the prcurement schedule, must be apprved by the Purchasing Manager and/r the Chief Financial Officer. Tampa Bay Water Purchasing Prcedures Manual April 21, 2014 Page 34