marcy mealy procurement specialist cdbg program. recipients of cdbg funds are responsible for...
TRANSCRIPT
PROCUREMENT
Marcy MealyProcurement SpecialistCDBG Program
Procurement
Recipients of CDBG funds are responsible for ensuring that goods and services are procured competitively and in accordance with established procurement rules and regulations.
Local procurement policies should describe how the recipient will procure supplies, materials, services and equipment.
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Procurement
The policy should assure that all purchases are handled fairly and in a manner that encourages full and open competition.
Recipients should follow the procedures established in the policy and document how all procurements were handled.
Documentation of the procurement process will show that the recipient obtained high quality goods and services at the lowest possible price through an open, competitive process.
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Procurement and Conflict of Interest Policies
Must have a written procurement policy
CDBG or local procurement policy
Can adopt CDBG policy to apply only to the CDBG
funded project Adopt written procedures to handle and resolve
procurement disputes Must have a written conflict of interest policy
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Conflict of Interest
Prohibited conflicts: Person with CDBG responsibilities, decision-
making power or information may NOT: - obtain a financial interest or benefit from
CDBG activity- have an interest in contract or subcontract
Grant Administrator cannot help grantee with the procurement of grant administration if they intend to submit proposal
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Four Kinds of Procurement
Small Purchases
Non-competitive Proposals
Competitive Proposals
CompetitiveSealed Bid
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Small Purchases
Formal bid solicitation is not required for purchases under $25,000
Price or rate quotations shall be obtained from an adequate number of qualified sources
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Noncompetitive Proposals
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This method may be used only under VERY limited circumstances.
Grantee should consult state CDBG staff before utilizing this method The item/service is available only from a single source State may authorize the method in the event of a public
emergency After solicitation of a number of sources, competition is
determined inadequate. (fewer than 3 bids) - submit list of solicited firms - submit copy of RFP/RFQ or invitation to bid - submit response (s) - rating/ranking sheets
Competitive Proposals
Typically used in the selection of professional service providers
Two types: Request for Proposal (RFP) – cost is a factor Request for Qualifications (RFQ) – cost is not a
factor in the procurement of engineering and architect services
CDBG funds may not be used to pay for any preliminary engineering or grant writing services
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Competitive Proposal - RFP
Document Procurement Process for project file
Grantee must send request, receive responses and complete the evaluation
Requests for proposals will be publicized and identify all evaluation factors and their relative importance
Grantee must honor reasonable requests for an opportunity to compete
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Competitive Proposals - RFP
Proposals must be solicited from an adequate number of qualified sources
Maintain a list of Professional Service Providers
Maintain a list of MBE/WBE firms for construction, engineering and other professional services
Grantee must conduct a technical evaluation of the submitted proposals
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Competitive Proposals - RFP
Awards will be made to the most responsive and responsible bidder – must clearly be the most advantageous source of the services – based on price and other factors
Unsuccessful bidders must be notified in writing
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Competitive Proposal - RFQ
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For procurement of architecture or engineering services Request for Qualification (RFQ) may be used.
Most qualified competitor is selected based on evaluation of qualifications
Price is not used as a selection factor This approach may be used only to
purchase architectural and engineering services
Competitive Sealed Bid
Typically used in the procurement of construction contracts
Award is based on fixed bid price (lump sum or unit price) – “cost plus” contracts prohibited
Contract is awarded to the responsible bidder whose bid, conforming with all the material terms and conditions of the invitation for bids, is the lowest in price. (lowest responsive and responsible bidder)
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Invitation for Bid
Must clearly identify all bidding requirements 10-hour training requirement for all contractor
employees working on public works
E-Verify –is necessary for all contracts paid with CDBG funds
Obtain applicable Federal wage rates from DED. Addendum cannot be issued after 72 hours prior to the bid opening. If providing sales tax number to contractors and
subcontractors, Section 144.062 of the State Statutes, advertise in a manner that all bidders are aware that the sales tax saving method is being used.
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Invitation for Bid
Maintain written records for each procurement action sufficient to detail the significant history of the transaction
Contracts over $25,000 may be formally advertised once a week for a minimum of three weeks (21 days) prior to the bid opening
Internet advertisement - 21 days – must ensure that bidders are informed that internet is being used in lieu of newspaper advertisement
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Invitation for Bid
Contracts cannot be divided to keep them under $25,000
Alternates may be requested in the bid process Bid documents must specify the order in which
alternates will be applied in determining the low bid Alternates must be used in the order they are
written Submit to our office documentation of
advertisement for bids and affidavit of publication
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Bid Opening & PreselectingAward of Contract
All bids and proposals opened and read in a public meeting
Officials will keep minutes all bid openings Check references and use evaluation form Review all Bids. Determine if bids are legally and
technically responsive Process for selecting other than the low bidder.
Must be lump sum or unit price bids. Unit price determines lump sum.
May not Negotiate with bidder
Any or all bids may be rejected if there is a sound documented reason.
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Bid Opening & Preselecting
Award of Contract Grantee will hold a public meeting to make their
decision and selection.
Official minutes contract award will be kept in grant files
Need approval from DED if less than three responses are received prior to awarding a contract
Request to DED for approval to come from the grantee/sub-grantee
Notify all unsuccessful bidders in writing 19
Prior to Award of Construction Contract
Verify that contractor is not on the listing of debarred contractors
Request DED to verify that the contractor has a certificate in good standing with the Secretary of State
Request DED to verify that contractor’s bonding company is on the Department of Treasury’s listing of approved sureties
Provide in writing the correct names and spelling of each
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Change Orders
It is prohibited to change order out items while in the process of awarding the contract
This method of contracting will be considered negotiation and CDBG funds cannot be used to pay for the construction
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The “essence of good procurement” can be summarized as follows:
Identify and clearly specify standards for the desired goods or services
Seek competitive offers to obtain the best possible quality at the best possible price
Use a written agreement that clearly states the responsibilities of each party
Keep good records
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Questions?
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