PROCUREMENT - CONTRACTING Conservation District

Transcription

1 PROCUREMENT - CONTRACTING Conservation District

2 AG s Opinion In 1995, a Fremont Co. Representative asked the AG s office if CD s were accountable to state purchasing requirements? According to the statute that stipulates how the state is to purchase goods and services: Wyo. Stat (b) (xiv), CD s do not fit the definition of an agency and therefor are not required to obtain bids for supplies, materials or services. The AG s opinion went on to say: CD s may still want to use the bid process in certain cases. 2

3 Working Towards Consistency The WDA is not a purchasing authority, we are not telling you how you must handle purchasing activities! We are providing ideas and examples from the States Purchasing Procedures Manual for your consideration. We ask district s to adopt their own procurement policies, and to create a single SOP Form to record all purchases; and share their policies and SOP form with other district s, the WACD, and WDA. To encourage consistency within and between district's; assuring the quality of supplies, materials, equipment/services are being delivered at the best possible price for the benefit of your region and citizenry exhibiting open-fully transparent government while purchasing materials/services consistently across the State, with the ability to support your district s actions for procurement through policy and documentation 3

4 Consider the Following: CD s adopt In-State Preference into their policy As a rule we recommend anytime quotes, bids, or contracts are awarded In- State Preference be applied Preference to Wyoming Resident Bidder W.S In-state preference is applicable to the procurement of materials, supplies, equipment, or services to assure that Wyo. resident bidders are afforded an advantage over out-of-state bidders Awards shall be made to the resident making the lowest bid if such bid is not more than 5% higher than that of the lowest responsible non-resident bidder, provided that materials bid are not of inferior quality What about preference for your local area bidders? 4

5 Supporting local area bidders can cause issues. The City of Laramie had to rebid its vehicles because it purchased them from a local dealer who wasn t the lowest bidder. Question for the group: How could specifications of help in this example? Always keep in mind that the Lowest Bid matters! 5

6 Procurement Policies & SOP Form Policies - are Board approved, and should outline the processes and steps your district uses in procurements for purchasing, leasing, renting products and or services SOP Forms - track individual procurements, and explain the purchasing process used for a specific action Benefits of SOP Forms: Quick and easy to share with internal and external parties, who can follow the purchasing process from beginning to end Can assist unsuccessful bidders to become more competitive in the future Exhibiting open-fully transparent government by providing for materials/services via a consistent approach for all purchase 6

7 SOP Form A SOP Form should display all possible procurement options: Competitive Sealed Bid advertising material or projects, requesting a bid Negotiated - means competitive pricing was obtained by means other than formalized bidding because formalized bidding would cause undue delay or would yield no results (Calls to three or more businesses asking for quotes) Sole Source and/or Non-Negotiated - means that bidding is not feasible due to the requested commodities or services being available from only one vendor Emergency - approval means that danger is eminent to property and or personnel if the action is not carried out immediately And should describe the need and the option used, plus: List how, when, and where the request was advertised Include basic information for all bids/quotes received, including company contact info Provide rationale if lowest bidder is not the awarded bidder Include a copy of the RFP listing all qualifications and specifications, and a copy of the ranking criteria used to evaluate bids as attachments to the SOP 7

8 Policy Topics to be Considered Wyo. s Purchasing Procedures Manual separates procurement actions into various categories based on need and dollar amounts: ( up to $2,500), ($2,500 to $7,500), ($7,500 and over), or as in Hiring Professional/Consultants or Contract Services at $1,500 and up, this includes printing charges Depending on your district s budget, identified projects, and goals your board may want to develop a set of standards related to cost ($) levels/categories for their policy ( Example: All printing jobs <$1,500 go to the local print company, for printing >$1,500 must be completed through competitive sealed bid) 8

9 Types of Actions - Formal Competitive BID Price is the only factor; however bidder must provide service within stipulated time frame and meet all listed specifications. Bid specifications are what you use to evaluate a bid (one way of qualifying or disqualifying a bidder is through ability to meet listed specifications: timing, type of work or materials, monitoring or reporting needs, meeting all required Wyoming Bonding and Labor Standards) -Negotiated Bid Price is not the only factor, again specifications are used to determine outcome of award. Requires contacting at least 3 or more companies, to receive written quotes. Make sure that everyone contacted gets the same information - Sole Source/Non-Negotiated Bid only one source, or the cost is below some set minimum $ value and its in the policy to purchase via sole source - Emergency (water heater goes out in the winter, or flooding is imminent) 9

10 Specifications or Ranking Criteria: Can Help Pick the Best Contractor or Service Specifications are requirements to be satisfied by: product, material, service or process as to Performance- (function, timing, effectiveness) Design- physical characteristics (size, weight, % or type of ingredients, materials) Combination of performance/design- (describes minimal physical and desired functioning characteristics) Qualified products list- (brand names or tested to some requirement or skill level) Brand Name or Equivalent- (used to establish meeting or exceeding a minimum type or requirement) Specifications must: Define minimum requirements used to evaluate the bid Identify and list specific materials, components, timelines, procedures, testing for compliance, certification, or other prerequisites needed to complete the project to your satisfaction Keep in mind the goal is to provide an impartial award at the lowest possible cost, that is justifiable if challenged 10

11 Purchasing continued Formal Bid or RFP Process Vendors solicited to bid, how does your district do it now? Advertisement in the newspaper, use of phonebook, word of mouth? Formal Competitive Sealed Bid (CSB) is the primary procurement method for the State, other methods are used when CSB is inappropriate At a minimum advertisements should go out for 3 successive weeks in 3 successive issues of an official newspaper for purchases, contracts, supplies, materials, equipment or services. Advertisements should be placed in an official newspaper in the county of performance, and if there is no such paper then a newspaper within the State having a general circulation in that county should be used 11

12 Requests for Proposals Negotiated Bid Write out all qualifications required for the job, make sure the same information is shared with all of the companies/entities contacted At a minimum contact 3 at least companies, ask for a quote listing the price and items or tasks being delivered, continue outreach until you have several quotes We recommend you always apply In-State Preference if there is an out-of-state company providing a bid or quote for any job or service 12

13 Remember that CD Must Comply with Resident Contractor Preference When contacting for construction, remodeling or repairs to building or for any other public work or improvements if there is no requirement to advertise for bid or RFP, the project must be awarded to a resident contractor if advertisement for bid or RFP is required, contact will be given to a certified resident contactor making lowest bid if residents bid is not 5% higher than a nonresidents bid (W.S (a)) this includes public buildings, public structures, or for making any addition to, or for any public work or improvements Certified Resident Contractors List can be found at: 13

14 More Resident Compliance, and Other Issues State of Wyoming (W.S ) provides for a in State Preference for printing. Your board may want to consider making this part of their policy. In a previous slide it was suggested to add a statement about meeting all required Wyoming Bonding and Labor Standard Requirements to bid and RFP. Example: (In the case of construction awards, and or out of state bidders; the successful bidder must furnish any required forms for insurance, worker s compensation, unemployment, or bonds) Which are specified in the bid conditions/specifications prior to issuance of the contract The next several slides list various registration requirements 14

15 Potential Registration Requirements W.S Authority to Transect Business Required. (a) foreign corporation may not transect business in this state until it obtains a Certificate of Authority from the Secretary of State. Wyoming Dept. of Workforce Services Division of Unemployment Insurance All new businesses established with the state are required to register with the Division of Unemployment Insurance Dept. of Revenue & Taxation W.S , requires general or prime contractor to withhold 3% payment from non-resident subcontractors until a release of funds has been received from the department. The general or prime contractor is required to post a surety bond with the DRT in the amount of 3% of the total amount of the contract. 15

16 Potential Registration Requirements - Continued Dept. of Workforce Services Division of Workers Compensation: All firms, corporations and employers of any kind who are non-resident employers doing business in the state must file with the WDWFS a surety bond or other security meeting the requirements of W.S Dept. of Workforce Services Division of Labor Standards: Only one bond is required to satisfy the requirement of both the Divisions of Workers Compensation and the Division of Labor Standards. 16