EARLY LEARNING COALITION OF OSCEOLA COUNTY

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1 Page 1 of 11 POLICY STATEMENT This policy is designed to promote fair and open competition without favoritism, ensure that public funds are spent wisely via adequate documentation and effective monitoring mechanisms, establish uniform procedures to ensure effective and ethical procurement of contractual services, ensure improprieties are curbed and public confidence is maintained and to enhance relationships necessary to achieve the mission of the Coalition. When purchasing commodities and/or contractual services for the purpose of conducting Coalition business, the Coalition will follow all State and Federal guidelines as established legislatively in ss , , , F.S. and 2CFR Part (c), with the exception of competitively procuring direct services for SR and VPK programs with early learning providers. Further the Coalition will not enter into a contract unless funding is available within the Coalition operating budget. PROCEDURE Procurement of Commodities or Contract Services These procedures are for daily, weekly, monthly and annual use in the functioning activities of the organization. The Coalition shall: I. Strive to ensure it receives the highest quality goods and services at the optimum pricing, II. Comply with instructions for procurement of recovered materials (2 CFR Part ), and III. Comply with applicable cost and price analysis requirements for procurement transactions (2 CFR Part ). IV. Shall utilize small businesses, minority-owned firms, and women s business enterprises whenever possible [2 CFR Part ]. I. General Procurement Standards A. Policies used by the Coalition will apply to all entity activities/ purchases made. [2 CFR Part (c)] B. Disclose in writing any potential conflicts of interest. [2 CFR Part ] C. Maintain written standards for handling instances of conflict of employees or other individuals impacted by procurement activities. [2 CFR Part ] D. Avoid purchasing items that are duplicative or not necessary for the performance of activities required by federal award. [2 CFR part (d)] E. Perform lease vs. purchase analyses when appropriate to determine the most economical and practical choice. [2 CFR Part (d)] F. Maintain oversight of contractors regarding contract performance [2 CFR Part ] G. When possible, use state and local inter-entity agreements to procure common or shared goods and services. [2 CFR Part (e)] H. Use federal excess and surplus property/project costs. [2 CFR Part (f)] I. Conduct all procurement transactions in a manner that allows for full, open and fair competition. J. [2 CFR Part ] K. Not use state or geographical preferences in the evaluation of bids or proposals except where federal statutes mandates or encourages it. [2 CFR Part 200/319(7)(b)] L. Make purchases using one of the allowed methods of procurement [2 CFR Part ] M. Comply with instructions for procurement of recovered materials [2 CFR Part ] N. Comply with applicable cost and price analysis requirements for procurement transactions [2 CFR Part ] O. All related records must be available for inspection and review upon request by federal awarding agency or pass-through entity. [2 CFR Part ]

2 Page 2 of 11 P. Comply with bonding requirements for construction-related contracts (if allowable) [2 CFR Part ] Q. Include all required/applicable contract provision/disclosures in writing. [2 CFR Part ] R. Maintain written standards for handling instances of conflict of interests for employees/others impacted by procurement activities. [2 CFR Part ] S. Comply with applicable cost and price analysis requirements for procurement transacations (2 CFR Part II. Purchasing Category Thresh Hold Amounts A. Category One $20,000 B. Category Two - $35,000 C. Category Three - $65,000 D. Category Four - $195,000 E. Category Five - $325,000 III. Procurement of Commodities A. Under $35, The Coalition shall make purchases of commodities using one of the allowed methods of procurement as listed below (2 CFR Part ): a) Purchases with value below $2,500 shall be carried out using good purchasing practices informal solicitations that may include, but are not limited to, written quotations or written records of verbal quotations.[reference F.A.C. 60A-1.002(2)] Comparisons from published catalogues are allowable. These purchases may include but are not limited to a minimum of one written quote or written record of verbal quotation. Quotes and/or price comparisons obtained shall be used as a cost price analysis to determine if vendor prices are reasonable. For items purchased on an on-going basis, such as office supplies, cleaning supplies, etc. a price comparison may be conducted annually or as deemed necessary. b) Purchases of value $2,501 and $15,000 shall require a minimum of two (2) written quotes or written records of two (2) telephone quotations. c) Purchases of $15,001 but less than $35,000 shall require three written quotes or informal bids. [Reference F.A.C. 60A-1.002(3)] d) If verbal quotations are received, the name and address of each respondent and the amount quoted shall be part of the written documentation. 2. Awards shall be made to the offer most responsive to the solicitation and most advantageous to the Coalition when price, quality and other factors are considered, except that when all factors are considered equal, preference will be given to small and minority held firms. 3. Prior to placing any order, the Chief Executive Officer shall review and approve the proposed purchase. 4. Prior approval from OEL shall be obtained for equipment purchases in excess of $ Coalition officers, employees, and/or agents are prohibited from soliciting or accepting gratuities, favors, or anything of monetary value from vendors or potential vendors. 6. The Coalition sales tax exemption number is used for all Coalition purchases. In no case shall the Coalition sales tax exemption number or Coalition credit accounts with vendors be used for personal purchases.

3 Page 3 of Sole source procurement may be utilized if there is only one vendor who carries the item(s) desired. 8. All procurement records shall be available for inspection and review upon request by federal awarding agency or pass-through entity. [2 CFR Part ] B. Over $35,000 (Category 2) or more 1. Purchases that exceed $35,000 must be made through formal competitive sealed bids to ensure fair and open competition, except as otherwise provided by law. [Reference F.S (3)].The Coalition may choose from the following procurement methods in soliciting proposals: a) REQUEST FOR PROPOSALS (RFP) used when: i. the scope of work or the actual product/outcome can be generally defined; ii. the scope of work or product/outcome could be provided in a variety of acceptable ways; iii. contractor qualifications and the quality of the product/outcome to be delivered is more important than the price; and, iv. the product/outcome is not most effectively based on a fixed price. b) INVITATION TO NEGOTIATE (ITN) used when: i. the scope of the work or the actual product/outcome can be generally defined; ii. the scope of work or product/outcome could be provided in a variety of acceptable ways; iii. contractor qualifications and the quality of the product/outcome to be delivered is more important than the price; iv. responses may contain innovative solutions, which may otherwise not receive consideration; v. competitive negotiation is the best way to ensure price or services to match available contract funds or provide most efficient economical services; and, vi. award is made based on the best combination of services and price. c) Such process will be advertised in a local newspaper of general circulation and/or other media as would be deemed appropriate a minimum of ten (10) calendar days prior to the opening. d) An invitation to bid shall be made available simultaneously to all vendors and will include a detailed description of the commodities or contractual services sought; the time and date for the receipt of bids and of the public opening; and all contractual terms and conditions applicable to the procurement, including the criteria to be used in determining acceptability of the bid. e) If the Coalition contemplates renewal of the contract, that fact shall be stated in the invitation to bid. f) The bid shall include the proposed price for each year for which the contract shall be renewed. g) Evaluation of bids shall include consideration of the total cost for each year as submitted by the vendor. Criteria that were not set forth in the invitation to bid may not be used in determining acceptability of the bid. h) The Coalition will use submitted proposals and associated costs to conduct a cost price analysis to determine if quotes are reasonable. In cases in which only one (1) bid is received

4 Page 4 of 11 by the Coalition, the Coalition will use past bid prices, current contract prices and/or other methodologies to make a reasonable comparison and determination. i) The contract shall be awarded with reasonable promptness by written notice to the responsible and responsive vendor that submits the selected bid. j) This bid shall be determined in writing to meet the requirements and criteria set forth in the invitation to bid. k) A taskforce composed, at a minimum; of Coalition members will evaluate the responses if an RFP or ITN is utilized. All reviewers shall sign a declaration indicating that no conflict of interest exists to ensure objective ratings of proposal submissions. V. Procurement of Contracted Services A. Requirements for professional services [2 CFR part ] To help determine allowability of these costs, the Coalition s files shall document - 1. The nature and scope of the service rendered in relation to the service required; 2. The need to contract for the service, considering the Coalition s capability in the particular area; 3. The past pattern of such costs; 4. The impact of federal awards on the Coalition s business (i.e., what new problems have arisen), if applicable; 5. Whether the decision is business-based and not made just because grant monies are available to fund the cost (instead of other Coalition revenues); 6. If the service can be performed more economically by direct employment rather than contracting; 7. The qualifications of the individual or concern rendering the service and the customary fees charged, especially on non-federally funded activities; and 8. Adequacy of the contractual agreement for the service (e.g., description of the service, estimate of time required, rate of compensation, and termination provisions). 9. In addition, retainer fees must be supported by evidence of bona fide services available or rendered. B. Under $35, For contracted services reflecting the threshold amount provided in s for CATEGORY ONE and TWO (below $35,000), the following procedures shall be followed: a) Independent contractors may be hired to provide services when it is determined to be in the best of the Coalition and the budget can support the identified expenditure. b) Independent contractor services may be obtained in two (2) ways: i) The Coalition may advertise for services with an established dollar amount for the specific project, or j) The Coalition may request quotes for services and allow potential candidates to submit a proposal reflecting associated costs. When using this methodology, the Coalition will use the proposals and associated costs to conduct a cost price analysis to determine if quoted prices are reasonable. In the event a single proposal is submitted, the Coalition will use past proposals for comparison or take additional steps as needed to make the determination.

5 Page 5 of 11 c) Independent contractor services shall be advertised and publicly noticed in accordance with the requirements of the Florida Sunshine Law. At the discretion of the Chief Executive Officer, the Coalition may request in its advertisement, the requirement to submit proposals for service or resumes to evaluate applicants qualifications and ability to meet performance objectives. d) Procedures and requirements may vary with a particular contracted service being advertised but, as a general rule, will involve: i. A recruitment period of ten (10) calendar days or more ii. A defined process for screening and short-listing applicants, and iii. An interview process, which may include one or more interviews and, if applicable, testing to determine skill level of job-related responsibilities e) An offer will be extended to the top ranked applicant. If that applicant declines the offer, the Chief Executive Officer may extend an offer to the second ranked candidate or elect to start the procurement process over in order to recruit the best applicant for the services needed. f) Once an offer has been extended and accepted, the Chief Executive Officer will draft an independent contractor contract and will review and/or negotiate the terms and conditions as needed with the selected applicant to ensure a full understanding and agreement of the contractual relationship prior to contract approval and execution. g) Once reviewed and approved by the Chief Executive Officer and applicant, the contract shall be reviewed by an attorney for final review and comments. h) Once reviewed by the attorney, the contract shall be executed by the Chief Executive Officer. i) In instances where conflicts of interest may be present, the Coalition shall follow the guidelines established in ss (1)(c) and (20), F.S. j) All related party contracts shall be approved by two thirds of the board and minutes shall reflect the vote status of the board members, reflecting who abstained, who voted in favor and who voted against approval of the contract. k) The Coalition reserves the right to reject any and all bids or offers, if deemed to be in its best interest. l) Coalition officers, employees, and/or agents are prohibited from soliciting or accept gratuities, favors, or anything of monetary value from sub-recipients and/or vendors or potential sub-recipients and/or vendors. m) Sole source procurement may be utilized if there is only one interested sub-recipient or vendor or if conditions warrant negotiation on the best terms and conditions. Sole source negotiation requires the approval of the Chief Executive Officer. Documentation to support the sole source procurement shall be maintained and shall include an explanation as to why no other source is suitable or acceptable to meet the need. C. Exceptions to formal bid requirements 1. Purchases of less than $35, Purchases made from a state contract or a contract previously established by the Coalition or DOE. 3. Purchases made from a state or local government agency or the federal government. 4. Purchases from a single source.

6 Page 6 of 11 C. Non-competitive "Single Source" Purchasing 1. Requirements for sole source or other non-competitive proposals [45 CFR Parts (f) and ; s , F.S.] include: a) Documentation of the Coalition s determination criteria for a sole-sourced transaction. b) The item is only available from one single source; c) The public emergency precludes delay resulting from competitive solution (for example, a flood at a local ELC administrative office or large local service provider requires the immediate acquisition of additional services); d) OEL or USDHHS gave written authorization for non-competitive proposals; and e) After solicitation of a number of sources, competition is determined inadequate. f) Cost analysis, (i.e., verifying the proposed scope of work or goods/services data and the evaluation of the specific elements of costs and negotiating profit (if applicable)) shall be completed. Note: A cost/price analysis should be completed by staff prior to receiving any bid or fee information. 2. Single source purchasing may be used if the product or service is available from only one source. The justification should explain why the service is provided by only one source and may include: a) Description and use (in layman s terms). b) A list of unique features that this item or service has that other comparable items or services lack, and why these unique features are needed. Show as clearly and concisely as possible why only this item cannot be bid from the various vendors. c) Explanation if the product or service is being purchased directly from the manufacturer. If not, explain why the item cannot be bid to the various vendors. d) Documentation of efforts made to identify other sources of supply. e) Explanation of the necessity for compatibility with existing equipment or instrumentation, if applicable. f) Proof of copyright or patent as applicable. g) Documented price analysis proving the agreed price is fair, reasonable and is not more than the competitive market rate. This may be accomplished by researching the current market price for the commodity or service. 3. Price cannot be used as a justification for a single source. D. Requirements For Procurements With Related Party Considerations [s (20), F.S.] 1. The Coalition shall not enter into contracts in excess of $25,000 without prior approval from OEL when the contract is with coalition employees, coalition governing board members, or relatives of either group. 2. Such contracts (in excess of $25,000) shall to be presented to the Coalition governing board for a vote. a) A valid vote of approval shall require a two-thirds vote by the governing board. b) The impacted individual must complete the necessary conflict of interest disclosure forms. c) Any governing board member(s) benefitting from the contract(s) must disclose in advance the conflict of interest and must abstain from the vote process. 3. Coalitions are allowed to enter into contracts below $25,000 without prior approval from OEL when the contract is with Coalition employees, Coalition governing board members, or relatives of either group.

7 Page 7 of Such contracts (below $25,000) are required to be presented to the Coalition governing board for a vote. a) A valid vote of approval requires a two-thirds vote by the governing board. b) Impacted individual must complete the necessary conflict of interest disclosure forms. c) Any governing board member(s) benefitting from the contract(s) must disclose in advance the conflict of interest and must abstain from the vote process. 5. Such contracts (below $25,000) are required to be reported to OEL within thirty (30) days after approval by the coalition governing board is obtained. E. Contents For Procurement Files [DMS State Purchasing Memo No. 01 ( ); State Purchasing, Ch. 60A-1, FAC, s , F.S.; FDOE Contract Training Manual] 1. Planning/procurement files may obtain/document the following elements. a. Prior to making a purchase, one written quote or written records of telephone quote(s) must be obtained b. At least one quote should be from a CMBE or else document why this quote was not obtained c. A cost analysis is required, since a competitive process won t be used for most small dollar purchases;* d. Rationale for the method of procurement e. Selection of contract type; f. Contractor selection or rejection; and g. The basis for the contract price. 2. Contracts or other agreement files may obtain/document the following element. a. Quantity, description, price, applicable payment terms, applicable discount(s), date of performance, transportation/shipping arrangements, and other pertinent information. b. Additional purchase order terms/disclosures, required regardless of the scoped goods/services. 1) Liquidated damages/financial consequences 2) Payment audit (records of costs will be available upon request) 3) Payment made after written agency acceptance 4) Payment timeframe timely payments 5) Funding availability/annual appropriation 6) No lobbying 7) Public access/public records 8) Conduct of business federal/state laws govern 9) Conflict of interest/related party activities 10) Confidentiality and safeguarding information 11) Other/additional terms may also apply based on scoped goods/services. 12) If credit card transactions occur all the standards noted here will still apply. 3. Requirements for bid and competitive proposals (45CRF Part ) a. Public notice b. Copy of RFP 1) Technical requirements (as applicable)

8 Page 8 of 11 2) Statement of work 3) Cost requirements 4) Evaluation criteria c. Proposals submitted d. Evaluation of proposals e. Board approval of contracts (as applicable) f. Contract negotiations (as applicable) g. Award of contract to bidder who received the overall highest rating by Procurement Committee members. Key determining factors include pricing, how well technical requirements/specifications were met, work history and more G. Additional federal considerations [2 CFR Part ; 2 CFR Part 200 Appendix II] 1. For transactions funded by federal programs, additional disclosures are required regardless of scoped/services. a. Debarment and suspension provision(s). b. Equal Employment Opportunity provision. c. Other/additional terms may also apply based on scoped goods/services. H. Retention of Procurement Files [ 2 CFR Parts ] 1. All records must be maintained for five (5) years after the impacted program year, if closed. 2. Records retention schedules apply regardless of the physical format of entity records. 3. Wherever practicable records shall be collected, transmitted and/or stored in open and machine readable formats. 4. Federal and state awarding agencies have the right to access any documents pertinent to federal/state awards. 5. The Coalition shall comply with the records retention requirements in Florida. The General Records Schedule GS1-SL for State and Local Government Agencies is located at F. Competitive Competition To ensure fair and competitive competition for all procurement activities, the Coalition does not allow the following situations to occur that may restrict competition: 1. Placing unreasonable requirements on firms in order for them to qualify to do business; 2. Requiring unnecessary experience and excessive bonding; 3. Allowing noncompetitive pricing practices between firms or between affiliated companies; 4. Entering into noncompetitive contracts to consultants that are on retainer contracts; 5. Approving organizational conflicts of interest; 6. Specifying only a brand name product instead of allowing an equal product to be offered and describing the performance or other relevant requirements of the procurement; and 7. Any arbitrary action in the procurement process.

9 Page 9 of 11 G. Contract/Grant Manager Responsibilities For each agreement funded by federal or state financial assistance, the Coalition shall designate an employee to function as a contract or grant manager. The contract/grant manager shall be responsible for enforcing performance of the agreement s terms and conditions and shall serve as a liaison to the contractor(s). Separate duties for contract administration have also been identified as listed and may be implemented as applicable: 1. Administrator a) Ensure a contract file is created and maintained b) Ensure financial information is maintained on all contracts c) Manages changes to contract(s) d) Serves as liaison between the contract/grant manager and the entity and OEL e) Provides clear, explicit and documented communication as needed. 2. Manager a) Manages the receipt of goods/services b) Monitors and evaluate provider performance and end user satisfaction c) Serves as liaison with the provider/contractor d) Maintains a contract management file pursuant to CFO Memo No. 06 ( ) e) Ensures goods were received/services were obtained per terms and conditions before making payment. f) Prepares cost reconciliation files as applicable. g) Prepares a final reconciliation report as applicable. H. Contracts Administration/Management Once a contract has been executed it enters the last phase of the contract management process. During this phase of contract management, day-to-day activities are managed accordingly. Overall performance results are documented either through a final report or other identified methods. Monitoring tasks may also be performed as applicable. Adequate documentation of goods/services procured, goods/services received, payments made and compliance with federal and state grant program rules is required. The file forms/processes listed below represent contracts administration/management documentation that may be included Coalition contract agreements. 1. Formal contract documents may include the following information [45 CFR (a); 45 CFR ; and 45 CFR and s (15), F.S.] a) An executed (signed) contract/grant b) Contractor name c) Contract amount d) Subcontracts, memorandums of agreement, as applicable e) Amendments, as applicable f) Renewals, as applicable g) Bonds, as applicable h) Insurance, as applicable i) Funding source(s) j) Contract relationship [Ch. 69I-5.006, FAC and 45 CFR Part ] k) Provider s justification of need for advance, as applicable l) Scoped reporting requirements (evaluation reports, performance measures, etc.)

10 Page 10 of Day-to-day management documents may include, but not be limited to [s (15), F.S.; DFS FCCM Manual; 0A-1, FAC; 45 CFR Part (a); 45 CFR Part ] a) All required/applicable contract provisions/disclosures in writing. [2 CFR Part ] a) Performance documentation (contractor reports, budget performance reports, etc.) b) Correspondence (monitoring reports, any pertinent documentation requiring corrective action; does not include day-today s regarding routine questions, etc.) c) Payment documentation d) Deliverables e) Subcontractor approvals, as applicable f) Status of reporting requirements (does not require a formal tracking spreadsheet) 3. Other related contracts administration activities a) Subrecipient contracts and subawards i. Risk assessments planning and monitoring phases ii. Monitoring plan iii. Monitoring procedures and criteria iv. Evidence to support conclusions reached during its monitoring process v. Corrective action plans (as applicable) vi. Follow-up on corrective action plans (as applicable) vii. Additional disclosures and special conditions, as applicable b) Contracts closeout c) Problems with vendor/contractor performance, as applicable d) Contract termination, as applicable e) Prior approval documentation requirements, as applicable f) Conflict of interest disclosures, as applicable i. Coalition governing board members ii. Coalition employees iii. Relative(s) of either group as defined in statute iv. Organizational conflicts 4. Contract Monitoring [CFO Memo No. 06] a) The monitoring activities provided by the contract manager shall be adequate to provide reasonable assurance that contract deliverables have been provided as required by the agreement. Because of the low number of contracts executed by the Coalition on an annual basis, the Coalition does not conduct periodic monitoring of agreements in addition to the monitoring conducted by the contract manager to validate a vendor s performance. Monitoring of early education providers shall be conducted in accordance to OEL Provider Monitoring Requirements. 5. No work shall be authorized until a contract is fully approved and executed. 6. No change in work shall be authorized until a fully approved and executed contract amendment is in place. 7. No contract amendment for work shall be executed without the required review/approval from the Chief Executive Officer and in accordance with any related grant terms from funding source. 8. Conformance of work establish and maintain a system based on applicable laws, rules, regulations and grant provisions to reasonably ensure goods/services are received as intended and when intended.

11 Page 11 of Contract/Grant manager will authorize payment of invoices to contracts after final approval of work products. I. Conflict of Interest 1. See Policy 206B.03 Conflict of Interest; Policy 206B.02 Board Member Recruitment and Eligibility; Policy 206B.01 Ethical Standards for more information about conflict of interest, voting conflicts, related parties transactions and more. J. Segregation of Duties/Purchasing Levels a. See Policy 206D.01 Chief Executive Officer s Authorization Levels for segregation of duties and staff spending limits. PARTIES AFFECTED Current Coalition vendors and sub-recipients, potential Coalition vendors and sub-recipients ASSOCIATED DOCUMENTS / FORMS N/A