HomeMy WebLinkAbout2023-06-15 - Resolution No. 2023-16RESOLUTION NO. 2023-16
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
AMENDING THE PURCHASING POLICY
AND RESCINDING RESOLUTION NO. 2022-16
WHEREAS, from time to time it is necessary for the Board of Directors to review the
Yorba Linda Water District's Purchasing Policy and make modifications
that reflect current District procedures, public policy demands and
economic conditions; and
WHEREAS, the Board of Directors desires to amend the Policy last adopted by
Resolution No. 2022-16 on June 14, 2022.
NOW, THEREFORE, the Board of Directors of Yorba Linda Water District does find,
determine, and resolve:
Section 1: That the Yorba Linda Water District Purchasing Policy (3010-007-POL) as
attached hereto is hereby adopted and deemed effective June 15,
2023.
Section 2: That Resolution No. 2022-16 is hereby rescinded effective June 15,
2023.
PASSED AND ADOPTED this 15th day of June 2023 by the following called vote:
AYES: Directors Barbre, Des Roches, Hawkins, Lindsey, and Miller
NOES: None
ABSTAIN: None
ABSENT: None
ATTEST:
Annie Alexander, Board Secretary
Yorba Linda Water District
Reviewed as to form by General Counsel:
And,-i�w B. G � en, Esq.
Kidman Gagen Law LLP
Brett R. Barbre, President
Yorba Linda Water District
Resolution No. 2023-16 Modifying the District's Purchasing Policy and Rescinding Resolution No. 2022-16 1
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PURCHASING
Dept/Div: Finance Approved By: Resolution No. 2023-16
Effective Date: June 15, 2023 Applicability: District Wide
Supersedes: Resolution No. 2022-16 See Also: N/A
1.0 General Policy
1.1 This Yorba Linda Water District Purchasing Policy (“Policy”) establishes policies and
procedures for the District to (a) bid and purchase services, materials, equipment, and
supplies (referred to collectively as “Services and/or Materials”), pursuant to Government
Code Section 54201 et seq., and (b) bid and award Public Works projects.
1.2 This Policy establishes the Board of Directors’ (the “Board”) approved policies and
procedures regarding the Procurement of Services and Materials and Public Works
projects, including expenditure authorization and limits, competitive proposal and
bidding requirements, and general Procurement procedures. All purchases of Services or
Materials and Public Works projects to be paid by the District must adhere to the authority
level and dollar limits of this Policy as set forth in Section 2.0, except as otherwise provided
by specific terms and exceptions in this Policy.
2.0 Authorization
2.1 By adoption of this Policy, the Board is authorizing the General Manager and other
designated representatives to exercise certain duties and responsibilities that are
essential for the day-to-day operation of the District.
2.2 The General Manager may delegate the Procurement of Services and Materials and
Public Works projects to those staff members given specific authority, consistent with the
terms of this Policy.
2.3 Delegation of purchasing authority may be through the authorized use of Purchasing
Cards, Purchase Orders, check requests, or other written authorization. All such purchases
will be made in conformity with the policies and procedures prescribed within this Policy.
2.4 The Board-established Procurement limits and Contract signatory authorities are listed in
Table 1 below. These limits are applicable on a per-expenditure/per-Contract basis, not
on an aggregated basis, for unrelated activities.
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Table 1
Procurement Limits and Contract Signatory Authority
Title Expenditures Contract Signature Authority
General Manager Up to $75,000
$75,001 and over with Board
Authorization; up to $75,000
without Board Authorization.
Assistant General Manager Up to $50,000 Up to $50,000
Department Managers Up to $25,000 Up to $25,000
Accounting Supervisor, Budget
Analyst, Customer Service Billing
Administrator, Principal Engineer,
Public Affairs Officer, Records
Management Administrator,
Senior Engineer, Senior Executive
Assistant, Senior IS Administrator,
Superintendents
Up to $5,000 None
Administrative Personnel Up to $2,000 None
3.0 Definitions
The terms referenced in this policy shall have the meanings as defined below:
3.1 Administrative Personnel – District administrative employees authorized by the General
Manager to purchase miscellaneous items, food, and travel in support of District functions
includes Executive Assistant, Human Resources Analyst, Operations Lead Staff, and any
other administrative position as authorized by the General Manager.
3.2 Amendment – A written change or addition to a legal document which, when properly
executed, has the same legal validity of the original document.
3.3 Board – The Board of Directors of Yorba Linda Water District.
3.4 Change Order – A written Amendment modifying the terms of an existing Contract or
Purchase Order.
3.5 Consultant – Any person, firm, or entity that provides or offers to provide Professional
Services to the District.
3.6 Contract - Written agreement authorizing a contractor, Consultant, supplier, or service
provider to provide Services or Materials, or Public Works, in accordance with the material
requirements, conditions, or scope of work stated in the Contract.
3.7 Contractor – Any person, firm, or entity that submits a bid, proposal, or Contract in
connection with a procurement or service. This term also includes any person who
conducts business as an agent or representative of the contractor.
3.8 District – Yorba Linda Water District.
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3.9 Emergency – A situation in which unforeseen circumstances present an immediate risk of
harm or hazard to real or personal property, the public health, safety, welfare, or District
personnel or property, or threaten serious interruption of District operations.
3.10 General Manager – General Manager of the District or the person appointed by the
Board to act in the capacity of the General Manager and authorized to administer this
Policy on their behalf.
3.11 Invitation to Bid - A formal process for soliciting sealed bids from qualified prospective
suppliers or Public Works Contractors.
3.12 Multiple Year Contract - A Contract for the purchase of Services, Materials, or Public
Works for (a) a multiple year term or (b) that may contain provisions to extend
performance by exercising optional renewal periods. A Multiple Year Contract does not
obligate the District beyond the initial award period and shall not provide for a
cancellation payment to the Contractor if options are not exercised
3.13 Non-Discretionary Purchases – Payments to utilities, temporary employment services,
insurance providers, healthcare providers and national, federal, state, or local agencies
that relate to routine obligations and expenses essential to the District’s ability to provide
service to customers and that have been approved in fiscal year operating or capital
budgets.
3.14 Non-Professional Services – Services other than Professional Services, including, but not
limited to, supply and maintenance services.
3.15 Procurement - The purchase or lease of Services or Materials, or Public Works.
3.16 Procurement Card - A form of charge card (also referred to as a P-Card or Purchasing
Card) that allows for goods to be purchased without using a Purchase Order. Designated
District staff are issued a US Bank Cal-Card for their use on miscellaneous purchases (refer
to Section 5.3) of this Policy.
3.17 Professional Services – Any type of special service or advice in financial, economic,
accounting, engineering, legal or administrative matters by persons specially trained and
experienced and competent to perform the special services required. (Gov’t Code §
53060.) Such services include but are not limited to architectural; engineering;
environmental; financial; land surveying; construction management; audits; training
services; legal services; preparation of planning or studies; SCADA integration; technology
application development; and personnel, job classification and benefit studies.
3.18 Public Works – As defined by California Public Code Section 22002, are public projects,
which include construction, reconstruction, alteration, renovation, improvement,
demolition, and repair work involving any publicly owned, leased, or operated facility.
Maintenance work is not considered a public project for purposes of this definition.
3.19 Purchase Order (PO) – An authorization, under a standardized form in which the party
designated as the “provider” is to provide Services and Materials for which the District
agrees to pay.
3.20 Request for Proposal (RFP) - A solicitation used for the Procurement of Professional Services
and Non-Professional Services. Prospective suppliers or Consultants submit proposals
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based on requested information and are evaluated/awarded based on pre-established
criteria.
3.21 Request for Quotes (RFQ) - A solicitation used for Procurement of construction Services or
Materials.
3.22 Requisition (REQ) - The procedural method by which departments may request a PO for
the purchase of materials, supplies or equipment. Requisitions are entered into the
District’s ERP system application.
3.23 Single Source Purchase - Procurement where: (a) there is a compelling reason for only
one source, a preferred brand, like material, homeland security goods, services, etc., to
be procured; or (b) the commodity is unique, including, but not limited to, acquisition of
data processing, telecommunications and word processing equipment, goods and
services; or (c) the purchase of a specific brand name, make or model is necessary to
match existing District equipment or facilitate effective maintenance and support; or (d)
when it is in the best interest of the District to extend or renew a Contract from a previous
contract period, based on satisfactory service, reasonable prices, avoidance of start-up
costs, avoidance of interruptions to District business, or good business practices. Such a
Procurement of $25,000 or greater must be presented to the Board of Directors at the
next regular scheduled meeting.
3.24 Sole Source Purchase - Procurement where only one viable source exists. This is usually
due to legal restrictions of patent rights and copyrights, a proprietary process, warranty
issues, original equipment, etc. Such a Procurement of $25,000 or greater must be
presented to the Board at the next regular scheduled meeting.
4.0 General Procurement Policies
4.1 Procurement practices shall comply with laws, regulations, and guidelines of the State of
California and any other applicable law and provisions of grant or funding contracts, if
applicable.
4.2 Any employee/individual affecting any Procurement outside of the policies and
procedures established by this Policy and without General Manager or Board
authorization to do so, may be subject to disciplinary action and/or termination in
accordance with District policies.
4.3 Expenditures and Contract awards must be authorized by the appropriate authorization
level indicated in Table 1.
4.3.1 Separating or dividing Contracts into smaller components for the purpose of
bringing the cost of one or more Contracts below any specified sum to avoid a
requirement in any section of this Policy or any policy incorporated herein is strictly
prohibited. Contracts may be divided only to meet unique scheduling of a project
or to accommodate necessary time frames. In addition, no specifications shall be
drafted in such a manner as to limit competitive bidding or solicitation directly or
indirectly to any one specific vendor, or any specific brand, product, thing, or
service, except for those items that are approved as exempt from competitive
bidding or solicitation requirements as provided in Section 7.1.3.
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4.4 Purchase amounts include taxes and the cost of shipping, freight fees, and any other
charges billed by the supplier or Contractor for purposes of the authorization limits under
this Policy.
4.5 Purchase authorization and expenditure limits in Table 1, and competitive solicitation
requirements in Table 2 and as further set forth in this Policy, are on a per purchase/per
Contract basis and shall not be applied as an aggregate limit to any vendor, supplier,
Contractor or Consultant.
4.6 With the exception of the General Manager, in the absence of an authorized signatory for
a given request, authorization will be obtained from the next highest authority in Table 1.
In the case where the next highest authority is absent, then authorization will be obtained
by an authorized signatory in order of rank and availability.
4.7 The District may use electronic commerce whenever practicable or cost-effective. The
District may accept electronic signatures and records in connection with the District
Procurement, as permitted by applicable law.
5.0 Procurement Methods
The following methods are available to initiate a purchase request or to pay for Services and
Materials or Public Works:
5.1 Requisition/Purchase Order - Staff that require Services and Materials to carry out the
defined duties of their positions shall submit Requisitions, in advance, for purchases in
accordance with this Policy and other applicable procedures and policies of the District.
Staff will generate a Purchase Order from the Requisition.
5.1.1 Complete the Requisition form or Requisition data entry screen to request that
Services or Materials are ordered.
5.1.1.1 Allow at least two (2) working days of lead time.
5.1.1.2 Provide complete name and address of selected vendor.
5.1.1.3 Indicate the purpose of the Purchase Order.
5.1.1.4 Describe the Services or Materials clearly and specifically. Include make,
model, manufacturer’s part number, catalog number or vendor catalog
page number, if available. Indicate color, size, or any option required.
5.1.1.5 Indicate the quantity and unit price for each Service or Material.
5.1.1.6 Note whether the Services or Materials are taxable.
5.1.1.7 Note any freight charges.
5.1.1.8 Must indicate a valid General Ledger account number(s), and correct
projects number(s).
5.1.1.9 Indicate the date the Services or Materials are needed.
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5.1.1.10 Attach any required price quotes and data that supports the requested
purchase, if available.
5.1.1.11 Seek appropriate approvals as required in Table 1.
5.1.1.12 Purchases shall not be split to circumvent Contract signatory
authorizations as set in Table 2.
5.1.1.13 Submit Purchase Order for processing.
5.1.2 Upon approval and receipt of a fully executed purchase Requisition, the Purchase
Order will be systematically assigned the next consecutive number.
5.1.2.1 The original Purchase Order will be given back to the originator or sent to
the vendor.
5.1.2.2 A copy of the approved Purchase Order, and any supporting documents,
will be forwarded to Accounts Payable for processing.
5.1.2.3 A copy of the approved Purchase Order will be forwarded to the
Warehouse pending receipt of goods.
5.1.2.4 An electronic record of the Requisition/Purchase Order will be kept within
the purchasing system for historical purposes.
5.2 Check Request - A check request can be used to initiate payment for certain limited
Services or Materials without a Purchase Order. Check requests can be used to request
payment for Non-Discretionary Purchases, services rendered, subscriptions, membership
dues, workshop/seminar/conference registrations, use of facilities, etc.
5.3 CAL-Card and Other Procurement Cards - Designated staff may be assigned a CAL-Card
for miscellaneous purchases. Purchases using the CAL-Card are subject to the terms and
conditions of the District Cardholder Procurement Card Agreement and any other
applicable District procurement card policies or procedures. Professional Services are not
to be acquired on CAL-Cards due to lack of insurance and indemnification language
associated with these services. CAL-Card limits may be increased for a specific
authorized user with the approval of the General Manager subject to the authorization
limits as set in Table 1. Use of all other Procurement Cards are subject to the terms of this
Policy and to any set terms provided at the time of card issuance to the designated staff
and any subsequent Amendments to such terms, and other applicable District policies
(Refer to Exhibit A).
5.4 Contracts - Provisions shall be made, either through specifications or procedures
established by the District, for verification of the references and financial responsibility of
the contracting parties prior to the award of a Contract. After award, all Contracts shall
be executed on behalf of the District by the appropriate authorized signatory indicated
in Table 1. In no case shall any Contract be made if sufficient funds are not budgeted
and appropriated and not available to make payment promptly upon delivery or
completion, or in accordance with a progress payment schedule, unless otherwise
authorized and approved by the Board or approved by the General Manager as
provided for in Section 6.2 (Emergency).
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5.4.1 Contracts for Non-Professional Services, Professional Services, and Public Works shall
be executed when an expenditure exceeds $5,000 (except in the event of an
Emergency).
5.4.2 Multiple Year Contracts are allowed when in the best interests of the District as
determined, and executed by the General Manager.
5.4.2.1 For purposes of Procurement authorization, the dollar value of a Multiple
Year Contract shall be the total Contract value, including optional
renewal periods. Once initially approved in accordance with the Policy
requirements, any optional renewals may then be authorized by the
General Manager at the time of renewal, regardless of the dollar amount,
provided the pre-priced option is consistent with the terms of the Contract
as initially approved.
6.0 Exceptions to Pre-Authorization
6.1 Non-Discretionary Purchases - Do not require Board approval for payment, including
those that exceed the General Manager limit of $75,000. Purchase Orders are not
required for Non-Discretionary Purchases that pertain to payments to utilities, insurance
providers, heath care providers, payroll, and national, federal, state or local agencies
that relate to routine obligations and expenses essential to the District’s ability to provide
service to customers and that have been approved in fiscal year operating budgets.
6.2 Emergency Work/Services - The General Manager, Assistant General Manager, or the
assigned Operations or Engineering Manager may authorize Emergency expenditures for
work, Services, and/or Supplies where the cost exceeds $75,000 without prior Board
approval. The Board shall be notified of any expenditures for Emergency work, Services
and/or Supplies exceeding the General Manager’s authorization limit at the next
regularly scheduled Board meeting.
6.3 Purchase Requests - Require no prior authorization or signatory approval under Table 1 to
replenish the District’s warehouse inventory within established inventory re-order levels.
7.0 Competitive Selection Process
7.1 General - A competitive selection process for Procurement of Services and Materials, and
for Public Works projects, is required in accordance with the limits as set forth in Table 2
below (subject to certain exceptions, qualifications or limitations as further set forth
below).
Table 2
Competitive Solicitation Process - Requirements
Purchase Amount Solicitation Requirement
$25,000 and under One Quote
$25,001 - $50,000 Two Quotes
$50,001 - $75,000 Three Quotes
$75,001 and over RFP or RFQ or Invitation to Bid Process Required
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7.1.1 Competitive Solicitation - Submission
7.1.1.1 All quotes, bids, and proposals must be in writing. An email is acceptable
for expenditures of $75,000 and under.
7.1.1.2 RFP, RFQ, and Invitation to Bid submissions must be in writing and be in
substantial compliance with terms in the solicitation, or as otherwise
required by law, or may be disqualified.
7.1.1.3 Quotes, bids, and proposal documentation shall be retained pursuant to
the District’s record retention policy.
7.1.2 Exceptions from Competitive Solicitation Process - Generally, solicitation of bids or
proposals is preferable whenever practicable. In addition to the exceptions stated
under Section 7.3.2, the competitive solicitation requirements established in Table
2 may be waived when any of the following criterion is applicable:
7.1.2.1 Sole Source Purchases.
7.1.2.2 Single Source Purchases.
7.1.2.3 Emergency expenditures.
7.1.2.4 After a reasonable attempt has been made to obtain competitive
quotes/ responses and it has been determined that (a) no additional
suppliers/providers/Contractors/Consultants can be located; (b) the
District has a lack of response from
suppliers/providers/Contractors/Consultants to a competitive solicitation;
or, (c) when sufficient, satisfactory bids/proposals are not received, based
on the District’s sole discretion.
7.1.2.5 Purchases to replenish the District’s warehouse inventory within
established inventory re- order levels.
7.1.2.6 As provided by law.
7.1.3 It shall be at the discretion of the General Manager or Assistant General Manager
and the initiating Department Manager(s) to determine whether an expenditure
meets a criterion listed herein to be exempt from a competitive solicitation, subject
to any Board authorization. Such expenditures that meet a criterion will be
presented to the Board of Directors at publicly held meeting.
7.2 Public Works - Contracts for Public Works projects shall conform to applicable
requirements for Public Works Contracts under State law, including but not limited to
requirements relating to (a) listing of subcontractors, (b) posting of a payment bond in
an amount not less than 100% of the total Contract amount for all Public Works Contracts
over $25,000, and (c) payment of prevailing wages for all Contracts for Public Works
exceeding $1,000 or as otherwise required by statute.
Unless specifically waived by the District with the approval of the General Manager and
District’s legal counsel, the District shall require performance bonds for all Public Works
Contracts in an amount not less than 100% of the total Contract amount. Public Works
Contracts let by an Invitation to Bid may be awarded (a) to the lowest responsive,
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responsible bidder, and (b) in accordance with (i) State law, (ii) the District’s standard
Public Works Contract documents, and (iii) Section 11.0 below.
7.3 Professional Services (over $75,000) - RFPs will be initiated pursuant to the limits set forth
in Table 2 when the Contract is anticipated to exceed $75,000, unless the District’s needs
mandate uniquely qualified services, in which case only one proposal from a qualified
firm may be solicited. Professional Services may be engaged in accordance with
California Government Code §4525 et seq., and on the basis of demonstrated
competence and qualifications for the types of services to be performed and at fair and
reasonable prices to the District.
7.3.1 Professional Engineering Services - The District may request proposals for
engineering services when the Contract amount is anticipated to exceed $25,000,
and up to $75,000. For engineering services anticipated to exceed $75,000, RFPs
will be initiated pursuant to the limits set forth in Table 2.
7.3.2 On Call Engineering Services – The District may solicit RFPs for on-call engineering
services and enter agreements for on-call engineering services. Entering into an
agreement qualifies Consultant to perform services for the District on a task order
basis, but it does not entitle Consultant to any compensation or a right to perform
services on any scope of work or particular task order for the District. When the
District needs services for task(s), it will submit a scope of work to Consultant
requesting task proposals. If Consultant’s task proposal is selected by the District,
Consultant represents and warrants to District that it is fully qualified and available
to perform the services for, and as requested by, the District.
7.3.3 Exceptions from Competitive Solicitation Process – Professional Services - In
addition to the exception for “uniquely qualified services” set forth under Section
7.3, the following criteria shall apply as exceptions to the competitive solicitation
requirements set forth under Table 2 for Professional Services where such
requirements would otherwise apply:
7.3.3.1 For Professional Services estimated to cost $25,000 or less, staff may
request a proposal from one (1) qualified Consultant.
7.3.3.2 For Public Works projects where the project design is scheduled in phases,
the related Professional Services may be negotiated with the Consultant
that performed the work for a prior phase, if (a) the Consultant performed
satisfactory work on the prior phase(s) in terms of quality, schedule, and
estimated design costs and (b) a satisfactory Contract can be
negotiated.
7.3.3.3 For Professional Services in which it is impracticable to comply with the
selection process because of the unique, exploratory, or experimental
nature of the project, staff may request a proposal from one (1) qualified
Consultant.
7.4 Rejecting Competitive Responses - In response to an Invitation to Bid, RFQ, or RFP, the
District may reject a bid or other response which is in any way incomplete, irregular,
amplified, unqualified, conditional, or otherwise not in compliance with the solicitation
documents in all material respects and in accordance with law. The District may (a)
waive any informality, irregularity, immaterial defects, or technicalities in any bids or other
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responses received; and/or (b) cancel an Invitation for Bid or RFP/RFQ, or reject all bids
or responses for any other reason, which indicates the cancellation or rejection of all bids
or responses is (i) in the best interest of the District, and (ii) in accordance with law.
Rejection of all bids or responses or cancellation of competitive solicitations, including
determinations to re-bid, or re-solicit are subject to the same level of authority which is
required to award a Contract as provided under Table 1, and as required by law.
7.5 Awarding Contracts – Consistent with Section 11.0 below, the District reserves the right to
award Contracts based upon the best interests of the District as determined by the District
in its sole discretion.
8.0 Change Orders
8.1 Change Orders may be issued from time to time as required by changes in the
specifications or conditions of a project, services performed, or materials to be issued.
8.1.1 Change Orders – PO Only - Change Orders up to 10% (to a maximum additional
$1,000) of the original PO amount may be issued by the appropriate Department
Manager without further approvals. A revised Purchase Order Requisition must be
completed and approved at the appropriate authorization levels under Table 1
for any Change Order request exceeding the original amount by more than 10%
or the $1,000 limit.
8.1.2 Change Orders – Formal Contracts and Amendments
8.1.2.1 For Contracts and/or Amendments under $75,000:
Change Orders up to 10% of the original Contract amount can be
approved by the appropriate authorization levels as outlined in Table
1 up to a maximum total Contract amount of $75,000 without Board
approval.
Board approval is required for Change Order requests exceeding the
original Contract amount by more than 10%, or resulting in a total
Contract amount over $75,000.
8.1.2.2 For Contracts and/or Amendments $75,001 and over:
Change Orders up to 10% (to a maximum additional $75,000) of the
original Contract amount can be approved by the appropriate
authorization levels as outlined in Table 1 without Board approval.
Board approval is required for Change Order requests exceeding the
original Contract amount by more than 10%, or resulting in a $75,000
increase.
8.1.3 Change Order Exceeding Limits
A Change Order exceeding the Change Order limits set forth in this article may
be authorized by the General Manager prior to Board approval if, in the General
Manager’s determination, any of the following circumstances exist:
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8.1.3.1 A delay in Change Order authorization could result in a negative financial
impact to the District.
8.1.3.2 A delay in Change Order authorization could result in damage to or
impairment of the operations of a District facility.
8.1.3.3 An Emergency exists which requires immediate work/services.
The Board shall be notified of any Change Order authorization exceeding the
General Manager’s authorization limit at the next regularly scheduled Board
meeting.
9.0 Ethical Procurement Conflict of Interest
9.1 Board members, District officers and employees shall not be financially interested in any
Contract made by them in their official capacity. (Government Code Sections 1090 and
1091.5). Board Members, District officers, and employees shall not participate in any way
to influence a governmental decision in which he/she knows or has reason to know that
he/she has a financial interest. (Government Code Section 87100 et seq.)
9.2 Any District employee (other than Administrative Personnel not under Designated Positions
in the District’s Conflict of Interest Code) authorized under this Policy to make or enter into
purchases on behalf of the District will complete a Statement of Economic Interests (Form
700) and comply with the District’s Conflict of Interest Code.
9.3 Confidential or proprietary information must be handled with due care and proper
consideration of ethical and legal ramifications and governmental regulations.
9.4 Purchasing activities must be performed in accordance with all applicable laws and
District policies.
9.5 Any employee/individual who violates the standards set forth in this Section may be
subject to disciplinary action consistent with the District’s Ethics Policy and Employee
Memorandum of Understanding or Personnel Manual in effect.
10.0 Emergency Procurement Procedures
10.1 In the event that the District declares an Emergency, the District may procure the
necessary equipment, Services, and Materials in response to that Emergency without
following the purchasing procedures prescribed by this Policy.
10.2 General Manager Authority
10.2.1 The Board has authorized the General Manager, or their designee, to approve
Emergency Procurements described in Section 10.1.
10.2.2 If the Emergency Procurement exceeds the General Manager’s approval
authority, the General Manager, or their designee, shall report to the Board, at its
next meeting, the reasons justifying why the Emergency did not permit time to
comply with the District’s purchasing requirements and why the purchase was
necessary to respond to the Emergency.
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10.3 Board Ratification
10.3.1 After the District makes an Emergency Procurement, it shall make a finding based
on substantial evidence set forth in the minutes of its meeting that the Emergency
did not permit time to comply with the District’s purchasing requirements, and that
the purchase was necessary to respond to the Emergency.
10.4 Federally Declared Emergencies; Procurement and Contracting Requirements
10.4.1 In the event of an Emergency declared by the President of the United States, the
District must comply with Federal procurement standards as a condition of
receiving public assistance funding from the Federal Emergency Management
Agency (FEMA) for Contract costs for eligible work. FEMA funding is governed by
Title 2 of the Code of Federal Regulations (CFR) Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards.
10.4.2 Federal Emergency Procurement Procedures
10.4.2.1 Micro Purchases
Purchases within the micro-purchase threshold (e.g. currently set at
purchases of $10,000 or less but periodically adjusted for inflation) may
be awarded without soliciting competitive quotations if the District
considers, in its sole discretion, the price to be reasonable.
To the extent practicable, the District must distribute micro-purchases
equitably among qualified suppliers.
10.4.2.2 Small Purchases
Purchases within the simplified acquisition threshold (e.g. currently set
at purchases of $250,000 or less) shall not be required to be formally
bid.
Price quotations must be received from no less than three (3) sources.
10.4.2.3 Formal Sealed Bidding
Formal, sealed bidding is required for purchases greater than the
simplified acquisition threshold, which is currently set at $250,000, or as
may be adjusted by the Federal Acquisition Regulation, pursuant to
48 CFR Section 2.101.
The District must publicly advertise the invitation for Bids and publicly
open all bids at the time and place prescribed in the Invitation to Bid.
Any Contracts awarded pursuant to this procedure may be to the
lowest responsible bidder submitting a responsive bid and shall be for
a firm fixed price.
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10.4.2.4 Solicitation of Competitive Proposals
When the nature of a Procurement does not lend itself to formal,
sealed bidding (e.g. Professional Services), the District may solicit
competitive proposals.
A Request for Proposals (RFP) must be publicly advertised, and the
District must solicit proposals from an adequate number of sources.
The RFP must identify all evaluation factors and their relative
importance; however, the numerical or percentage ratings or weight
need not be disclosed.
Any Contract awarded based on the competitive proposal
Procurement process cannot be based exclusively on price or price-
related factors.
If a Contract is awarded, it may be to the responsible firm whose
proposal is most advantageous to the District (“best value”), with price
and other factors considered.
10.4.3 Federal Emergency Noncompetitive Procurements
10.4.3.1 Contracts may be procured through a noncompetitive proposal only
when:
The item is only available from a single source;
The public exigency or Emergency for the requirement will not permit
a delay resulting from competitive solicitation;
The District authorizes noncompetitive proposals, as otherwise
permitted by the Purchasing Policy; or
Competition is deemed inadequate after the solicitation of a number
of sources.
10.4.4 Federal Emergency Contracting with Small and Minority Firms, Women’s Business
Enterprises, and Labor Area Surplus Firms
10.4.4.1 The District must conduct all necessary affirmative steps to ensure the use
of minority businesses, women’s business enterprises, and labor surplus
area firms when possible, as set forth in 2 CFR Section 200.321.
10.4.4.2 The District has developed Contract templates that include requirements
for bidders to take those affirmative steps to secure involvement by those
firms, as outlined in 2 CFR Section 200.321(b).
10.4.5 Federal Emergency Cost or Price Analysis
10.4.5.1 The District shall perform a cost or price analysis in connection with every
Procurement, including Contract modifications, in excess of the simplified
acquisition threshold. While the method and degree of analysis depends
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on the facts surrounding the particular Procurement, the District must, at
a minimum, make independent estimates before receiving bids or
proposals.
10.4.5.2 The District shall negotiate profit as a separate element of the price for
each Contract in which there is no price competition and in all cases
where a cost analysis is performed as required by 2 CFR Section
200.323(b).
10.4.6 Federal Emergency Payment Procedures
10.4.6.1 Contracts entered into pursuant to this Section 10.4 shall utilize only fixed-
price, cost-reimbursement, or, to a limited extent, time and materials
payment methods.
10.4.6.2 Time and Materials (T&M) Contracts
T&M Contracts should be used rarely, and the use of T&M Contracts
should be limited to a reasonable time period (e.g., no more than 70
hours) based on circumstances during which the District cannot
define a clear scope of work.
The District shall only enter into a T&M Contract if all of the following
apply:
- No other Contract was suitable;
- The contract has a guaranteed maximum price that the
Contractor exceeds at its own risk; and
- The District provides a high degree of oversight to obtain
reasonable assurance that the Contractor is using efficient
methods and effective cost controls.
The District must define the scope of work as soon as possible to
enable Procurement of a more acceptable type of Contract (i.e.,
non-T&M).
10.4.6.3 Separate Invoicing
All purchases made during a proclaimed Emergency shall require
separate invoicing from routine (i.e., non-Emergency related)
purchases. All invoices shall state the Services or Materials provided
and shall specify where the Services or Materials were delivered. All
invoices shall specify the location(s) where the Services or Materials
were used, if possible. Any invoice which fails to properly identify the
Emergency nature of the purchase and provide details as to the
date(s) and location(s), as appropriate, shall not be paid until such
information is provided by the vendor and re-submitted in correct
form.
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10.4.6.4 Auditing of Invoices for Debris Removal
All invoices for debris clearance and removal shall be audited prior to
payment to the vendor. Vendors shall be notified of the requirement
prior to award of any Contract for debris clearance and/or removal.
Audits shall be in accordance with procedures for debris removal
monitoring specified in FEMA’s Publication 325, Debris Management
Guide.
11.0 Procurement Procedures Pertaining to Federal Grants
11.1 In the event that the District is identified as a recipient or sub-recipient of a Federal
Government Grant or any Pass-Through Federal Grant, the District will be required to
comply with the Federal Uniform Guidance (2 C.F.R. Part 200) standards and procedures
as listed in Exhibit B. This Guidance establishes requirements by grantees when procuring
goods and services needed to carry out a Federal award.
12.0 County Water District Status
12.1 The District is a County Water District and therefore is not mandated by State law to
competitively bid any purchases, including those for Public Works projects and/or capital
expenditures. (Associated Builders & Contractors, Golden Gate Chapter, Inc. v. Contra
Costa Water District (1995) 37 Cal.App.4th 468.) The District has discretion to enter into
non-bid Contracts for Public Works, to procure Services and Materials, to contract for
design-build work, to utilize job-order contracting and to enter into Cooperative
Purchasing arrangements for the design, construction, and maintenance of Public Works,
or undertake any other form of contracting determined to be in the District’s best interest,
except as otherwise expressly restricted by law. Notwithstanding this lack of legal
mandate and contractual discretion, District staff shall make a good faith effort to
support the Competitive Selection Process described in Section 7.
13.0 Policy Revisions
13.1 This Policy will be maintained and revised by the General Manager or their designated
representatives in consultation with the District’s legal counsel, subject to approval by the
Board. This Policy will be reviewed on an annual basis and revisions will occur whenever
applicable Federal, State, or local regulations change or otherwise as the need arises
and in the discretion of the Board.
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EXHIBIT A
PROCUREMENT CARD POLICY
1.0 Purpose
The Procurement Card Program was developed to allow designated full-time regular
employees the capability to purchase, with predefined spending limits, certain types of items
directly from the merchant thus reducing the cost associated with low-value purchasing
activity. The purpose of this policy is to identify the conditions in which employees will be issue
a Procurement Card and the rules for its use.
2.0 General Information
Authorization to use this Card is restricted to the CARDHOLDER ONLY and MAY NOT BE USED
FOR PERSONAL PURCHASES.
2.1 Employees will not use District Procurement Cards for personal expenses even if the intent
is to reimburse the District later.
2.2 Procurement Cards must not be used for purchases when the cardholder has personal
interest in the merchant or knowledge that a purchase would create a conflict of interest.
2.3 Before receiving a Procurement Card, employees will sign a “Cardholder Procurement
Card Agreement” and receive a copy of the Policies and Procedures setting forth their
obligations under this program.
2.4 The Procurement Card is supplemented to the procurement process. As with other
procurement methods the following conditions must be met when using the Procurement
Card:
2.4.1 The Procurement Card should be used whenever possible in lieu of petty cash or
low dollar Requisitions from point of sale vendors.
2.4.2 Purchases shall not be split to circumvent transaction limits as set in Table 1 of this
Procurement Policy.
2.4.3 Each single purchase may be comprised of multiple items, but the total including
tax and freight cannot exceed the single purchase dollar limit on the Procurement
Card.
2.4.4 Every purchase using the Procurement Card must adhere to all provisions of the
Procurement Policy.
3.0 Procurement Card Role Definitions
3.1 Cardholder – The cardholder is the District employee whose name appears on the
Procurement card.
3.2 Approver: The Approver is the person who is responsible for reviewing the charges for a
group of cardholders to ensure that purchases are appropriate and allowed.
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3.3 Program Administrator: The Program Administrator provides overall administration and
oversight of the Procurement Card program.
4.0 Responsibilities
4.1 Cardholders: Cardholders Safeguard the Procurement Card, provide itemized receipts
for all transactions, allocate the transactions, and sign off on the transactions in a timely
basis.
4.2 Approvers: Approvers review transactions of cardholders for adherence to policies and
procedures, ensure that all transactions are properly coded, and all disputed charges
are correctly reported.
4.3 The Cardholder and Approver are required to review and approve the individual
cardholder transactions and submit to Accounts Payable within the established time
frame specified by Finance Manager. This is critical to allow Accounts Payable to make
payment within specified time limits.
4.4 Failure to meet approval deadlines can result in the following:
4.4.1 First Failure – Verbal/electronic warning.
4.4.2 Second Failure – Written warning and notification to the appropriate Department
Manager and possible suspension of card privileges.
4.4.3 Third Failure – Suspension of card privileges. Restoration of card privileges requires
approval by the Finance Manager.
5.0 Procurement Audits
To ensure the continued success of the Procurement Card Program, periodic, random audits
will be performed by the Finance Department. The purpose of the audits will be to ensure the
cardholders are adhering to established policies and procedures.
6.0 Use of Procurement Card for Travel and Meals
Procurement cards may be used for approved travel in accordance with the District’s travel
policy.
7.0 Card Restrictions
The Procurement Card is not to be used for services of any kind, leases, or repairs excluding
auto when traveling, due to insurance requirements and the complexity of IRS 1099 reporting.
Department Managers may apply additional restrictions on card use. It is the responsibility of
the cardholder to know what their department’s restrictions are.
8.0 Misuse of a Procurement Card
8.1 The following situations are a few examples of “misuse” of a Procurement Card:
8.1.1 Purchases using the Procurement Card for personal benefit of the employee.
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8.1.2 Assignment or transfer of an individual Procurement Card to an unauthorized
person.
8.1.3 Purchases from family, friends or relatives where there is personal gain or a conflict
of interest, perceived or real.
8.2 Any variance, misuse, and/or violation of the policy and processes set forth will be
considered improper use of the card. This may result in card cancellation, disciplinary
action, up to and including termination.
9.0 Return of Merchandise
In the event the cardholder determines that an item must be returned for any reason, the item
and credit card receipt must be returned to the merchant/vendor as soon as possible. At no
time is the cardholder allowed to accept a store gift card or cash in lieu of a credit adjustment
to the Procurement Card. Cardholder is responsible for allocating and signing off on both the
purchase and the credit transactions in a timely manner.
10.0 Disputes
All transactions should be monitored for validity and disputed transactions must be reported
to the Program Administrator. To process a dispute, consult the Program Administrator.
11.0 Lost or Stolen Cards
When a Procurement Card is lost or stolen during normal business hours the Cardholder must
notify their Approver and the Program Administrator immediately. If it is after hours the
Cardholder must notify the issuing bank directly.
12.0 Separation, Transfer or Revocation of Card Privileges
Upon leaving the District, transferring to another Department or loss of Procurement Card
privileges, the Cardholder must return their Procurement Card to Human Resources.
Concurrent with surrendering the card, the cardholder must deliver documentation to their
supervisor of all outstanding transactions.
The General Manager, Assistant General Manager, or Department Managers have absolute
discretion to suspend or revoke a Cardholder’s privileges at any time and for any reason.
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EXHIBIT B
FEDERAL REQUIREMENTS
1.0 Regulations for Procurement of Property or Services Stemming from Federal Aid
1.1 This section shall apply to the awarding of sub-grants and contracts by the District
stemming from federal grants to the District. This section shall have the same application
on the awarding of sub-grants and contracts by the District stemming from state, county
or other non-federal government entity grants originating as federal grants.
2.0 Procurement Standards
2.1 The District shall maintain a contract administration system which ensures contractors
perform in accordance with the terms, conditions and specifications of their contracts or
purchase orders.
2.2 The District shall maintain written standards of conduct covering conflicts of interest and
governing the actions of its employees engaged in the selection, award and
administration of contracts. No employee, officer or agent of the District shall participate
in selection, or in the award or administration of a contract supported by federal funds if
a conflict of interest, real or apparent, would be involved. Such a conflict would arise
when:
2.2.1 The employee, officer or agent;
2.2.2 Any member of his or her immediate family;
2.2.3 His or her partner; or
2.2.4 An organization which employs, or is about to employ, any of the above, has a
financial or other interest in or a tangible personal benefit from a firm considered
for award.
2.3 The District’s officers, employees or agents will neither solicit nor accept gratuities, favors
or anything of monetary value from contractors, potential contractors, or parties to sub-
agreements. Such a conflict will not arise where the financial interest is not substantial or
the gift is an unsolicited item of nominal intrinsic value. The District’s standards of conduct
provide for disciplinary actions to be applied for violations of such standards by officers,
employees, or agents of the District.
2.4 The District shall not enter into a contract with a non-Federal entity has a parent, affiliate,
or subsidiary organization that is not a state, local government or Indian tribe, unless the
non-Federal entity maintains written standards of conduct covering organizational
conflicts of interest. Organizational conflicts of interest mean due to relationships with a
parent company, affiliate, or subsidiary organization, the non-Federal entity is unable or
appears to be unable to be impartial in conducting a procurement action involving a
related organization.
2.5 The District shall avoid acquisition of unnecessary or duplicative items. Consideration will
be given to consolidating or breaking out procurements to obtain a more economic
purchase. Where appropriate, an analysis will be made of lease versus purchase
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alternatives, and any other appropriate analysis to determine the most economical
approach.
2.6 The District shall consider entering into state and local intergovernmental agreements or
inter-entity agreements where appropriate for procurement or use of common or shared
goods and services.
2.7 The District shall consider using Federal excess and surplus property in lieu of purchasing
new equipment and property whenever such use is feasible and reduces project costs.
2.8 The District shall consider using value engineering clauses in contracts for construction
projects of sufficient size to offer reasonable opportunities for cost reductions. Value
engineering is a systematic and creative analysis of each contract item or task to ensure
its essential function is provided at the overall lower cost.
2.9 The District shall make awards only to responsible contractors possessing the ability to
perform successfully under the terms and conditions of a proposed procurement.
Consideration will be given to such matters as contractor integrity, compliance with
public policy, record of past performance and financial and technical resources.
2.10 The District shall maintain records sufficient to detail the history of procurement. These
records will include, but are not necessarily limited to the following: rationale for the
method of procurement, selection of contract type, contractor selection or rejection and
the basis for the contract price.
2.11 The District shall use time and material type contracts only:
2.11.1 After a determination is made that no other contract is suitable; and
2.11.2 If the contract includes a ceiling price the contractor exceeds at their own risk.
2.12 The District alone shall be responsible, in accordance with good administrative practice
and sound business judgment, for the settlement of all contractual and administrative
issues arising out of procurements. These issues include, but are not limited to, source
evaluation, protests, disputes and claims. These standards do not relieve the District of
any contractual responsibilities under its contracts.
3.0 Competition
3.1 The District will conduct procurement transactions in a manner providing full and open
competition. To ensure objective contractor performance and eliminate unfair
competitive advantage, contractors developing or drafting specifications, requirements,
statements of work, or invitations for bids or requests for proposals shall be excluded from
competing for such procurements.
3.2 The District shall conduct procurements in a manner prohibiting the use of statutorily or
administratively imposed in-state or local geographical preferences in the evaluation of
bids or proposals, except in those cases where applicable Federal statutes expressly
mandate or encourage geographic preference. When contracting for architectural and
engineering (A/E) services, geographic location may be a selection criteria provided its
application leaves an appropriate number of qualified firms, given the nature and size of
the project, to compete for the contract.
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3.3 The District shall have written procedures for procurement transactions. These procedures
will ensure that all solicitations:
3.3.1 Incorporate a clear and accurate description of the technical requirements for
the material, product or service to be procured. Such description shall not, in
competitive procurements, contain features which unduly restrict competition.
The description may include a statement of the qualitative nature of the material,
product or service to be procured, and when necessary, shall set forth those
minimum essential characteristics and standards to which it must conform if it is to
satisfy its intended use. Detailed product specifications should be avoided. When
it is impractical or uneconomical to make a clear and accurate description of the
technical requirements, a brand name or equal description may be used to define
the performance or other salient requirements of procurement. The specific
features of the named brand which must be met by offerors shall be clearly stated;
and
3.3.2 Identify all requirements which the offerors must fulfill and all other factors to be
used in evaluating bids or proposals.
3.4 The District shall ensure prequalified lists of persons, firms or products that are used in
acquiring goods and services are current and include enough qualified sources to ensure
maximum open and free competition. The District shall not preclude potential bidders
from qualifying during the solicitation period.
4.0 Methods of Procurement to be Followed
The District shall use one of the following methods of procurement:
4.1 Procurement by Micro-Purchases. Procurement by micro-purchase is the acquisition of
supplies or services, the aggregate dollar amount of which does not exceed the micro-
purchase threshold as set by the Federal Acquisition Regulation at 48 CFR Subpart 2.1
(Definitions) and adjusted periodically for inflation. As of the date of this ordinance, the
micro-purchase threshold is $10,000.
4.2 Procurement by Small Purchase Procedures. Small purchase procedures are those
relatively simple and informal procurement methods for securing services, supplies or
other property that do not cost more than the simplified acquisition threshold as set by
the Federal Acquisition Regulation at 48 CFR Subpart 2.1 (Definitions) and in accordance
with 41 U.S.C. 1908 and periodically adjusted for inflation. If small purchase procedures
are used, price or rate quotations shall be obtained from an adequate number of
qualified sources. As of the date of this ordinance, the simplified acquisition threshold is
$250,000.
4.3 Procurement by Sealed Bids (Formal Advertising). Bids are publicly solicited and a firm-
fixed-price contract (lump sum or unit price) is awarded to the responsible bidder whose
bid, conforming to all the material terms and conditions of the invitation for bids, is the
lowest in price.
4.3.1 For sealed bidding to be feasible, the following conditions should be present:
4.3.1.1 A complete, adequate, and realistic specification or purchase
description is available;
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4.3.1.2 Two or more responsible bidders are willing and able to compete
effectively for the business; and
4.3.1.3 The procurement lends itself to a firm-fixed-price contract and the
selection of the successful bidder can be made principally based on
price.
4.3.2 If sealed bids are used, the following requirements apply:
4.3.2.1 The invitation for bids will be publicly advertised and bids shall be solicited
from an adequate number of known suppliers, providing them sufficient
time prior to the date set for opening the bids;
4.3.2.2 The invitation for bids, which will include any specifications and pertinent
attachments, shall define the items or services for the bidder to properly
respond;
4.3.2.3 All bids will be publicly opened at the time and place prescribed in the
invitation for bids;
4.3.2.4 A firm-fixed-price contract award will be made in writing to the lowest
responsive and responsible bidder. Where specified in bidding
documents, factors such as discounts, transportation cost and life cycle
costs shall be considered in determining which bid is lowest. Payment
discounts will only be used to determine the low bid when prior
experience indicates that such discounts are usually taken advantage of;
and
4.3.2.5 If there is a sound documented reason, any or all bids may be rejected.
4.4 Procurement by Competitive Proposals. The technique of competitive proposals is
normally conducted with more than one source submitting an offer, and either a fixed-
price or cost-reimbursement type contract is awarded. It is generally used when
conditions are not appropriate for the use of sealed bids. If this method is used, the
following requirements apply:
4.4.1 Requests for proposals shall be publicized and identify all evaluation factors
including relative importance. Any response to publicized requests for proposals
shall be honored to the maximum extent practical;
4.4.2 Proposals will be solicited from an adequate number of qualified sources;
4.4.3 The District shall conduct technical evaluations of the proposal received and for
selecting awardees;
4.4.4 Awards will be made to the responsible firm whose proposal is most advantageous
to the program, with price and other factors considered; and
4.4.5 The District may use competitive proposal procedures for qualifications-based
procurement of architectural/engineering (A/E) professional services whereby
competitors’ qualifications are evaluated and the most qualified competitor is
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selected, subject to negotiation of fair and reasonable compensation. The
method, where price is not used as a selection factor, can only be used in
procurement of A/E professional services. It cannot be used to purchase other
types of services though A/E firms are a potential source to perform the proposed
effort.
4.5 Procurement by noncompetitive proposals is procurement through solicitation of a
proposal from only one source and may be used only when one or more of the following
circumstances applies:
4.5.1 The item is available only from a single source;
4.5.2 The public exigency or emergency for the requirement will not permit a delay
resulting from competitive solicitation;
4.5.3 The Federal awarding agency or pass-through entity expressly authorizes
noncompetitive proposals in a written request from the District; or
4.5.4 After solicitation of multiple sources, competition is determined inadequate.
4.6 Contracting with Small and Minority Businesses, Women’s Business Enterprises and Labor
Surplus Area Firms.
4.6.1 The District shall take all necessary affirmative steps to assure that minority
businesses, women’s business enterprises and labor surplus area firms are used
when possible.
4.6.2 Affirmative steps include:
4.6.2.1 Placing qualified small and minority businesses and women’s business
enterprises on solicitation lists;
4.6.2.2 Assuring that small and minority businesses and women’s business
enterprises are solicited whenever they are potential sources;
4.6.2.3 Dividing total requirements, when economically feasible, into smaller tasks
or quantities to permit maximum participation by small and minority
businesses and women’s business enterprises;
4.6.2.4 Establishing delivery schedules, where the requirement permits, which
encourage participation by small and minority businesses and women’s
business enterprises;
4.6.2.5 Using the services and assistance, as appropriate, of such organizations
as the Small Business Administration and the Minority Business
Development Agency of the Department of Commerce; and
4.6.2.6 Requiring the prime contractor, if subcontracts are to be let, to take the
affirmative steps listed in subsections 4.6.2.1 through 4.6.2.6 of this section.
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4.7 Contracts Cost and Price
4.7.1 The District shall perform a cost or price analysis in every procurement action
exceeding the simplified acquisition threshold including contract modifications.
The method and degree of analysis will be dependent on the facts surrounding
each procurement situation. As a starting point, the District shall make
independent estimates before receiving bids or proposals.
4.7.2 Costs or prices based on estimated costs for contracts under the Federal award
will be allowable only to the extent that costs incurred or cost estimates included
in negotiated prices would be allowable for the District under Subpart E – Cost
Principles of Title 2, Subtitle A, Part 200 (Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards).
4.7.3 The cost plus a percentage of cost and percentage of construction cost methods
of contracting shall not be used.
4.8 Federal Awarding Agency or Pass-Through Entity Review
4.8.1 The District shall make available, upon request of the Federal awarding agency or
pass-through entity, technical specifications on proposed procurements where
the Federal awarding agency or pass-through entity believes such review is
needed to ensure that the item or service specified is the one being proposed for
purchase.
4.8.2 The District shall make available upon request, for the Federal awarding agency
or pass-through entity pre-procurement review, procurement documents, such as
requests for proposal or invitations for bids, or independent cost estimates when:
4.8.2.1 The District’s procurement procedures or operation fails to comply with
the procurement standards of Title 2, Subtitle A, Part 200, Subsection
200.324;
4.8.2.2 The procurement is expected to exceed the simplified acquisition
threshold and is to be awarded without competition or only one bid or
offer is received in response to a solicitation;
4.8.2.3 The procurement, which is expected to exceed the simplified acquisition
threshold, specifies a “brand name” product;
4.8.2.4 The proposed contract is more than the simplified acquisition threshold
and is to be awarded to other than the apparent low bidder under a
sealed bid procurement; or
4.8.2.5 A proposed modification changes the scope of a contract or increases
the contract amount by more than the simplified acquisition threshold.
4.8.3 The District may be exempted from the pre-procurement review in subsection 4.8.2
above if the Federal awarding agency or pass-through entity determines that its
procurement systems comply with the standards set forth in Title 2, Subtitle A, Part
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200, or the District self-certifies compliance with such standards if self-certification
is permitted by the Federal awarding agency or pass-through entity.
4.9 Bonding Requirements. For public projects, the District shall require bid guarantees,
performance bonds, and payment bonds consistent with Title 2, Part 200, Section 200.325
of the Code of Federal Regulations.
4.10 Contract Provisions. The District’s contracts shall contain the provisions in Appendix II to
Title 2, Subtitle A, Part 200 – Contract Provisions for non-Federal Entity Contracts Under
Federal Awards, as applicable.
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PURCHASING
POLICY ACKNOWLEDGEMENT
I acknowledge that I have received and read the provisions contained in this Purchasing Policy
(Policy). I agree to comply with all terms and conditions of the Policy. I understand that it is my
responsibility to consult my supervisor or the Finance Department if I have any questions that are
not answered in this Policy.
I also understand that the provisions in this Policy are guidelines and may not address all
circumstances that may arise. In such case, the Finance Department shall apply the Policy based
on factors including but not limited to past practices and rules of statutory interpretation.
Employee Printed Name Date
Employee Signature
Distribution: Employee’s Personnel File