PURCHASING POLICIES AND PROCEDURES MANUAL

Transcription

1 PURCHASING POLICIES AND PROCEDURES MANUAL Administration and Information General Services Division Section July, 2018 Page 1

2 PERSONNEL AND LOCATION PROCUREMENT SECTION 2800 CENTRAL AVENUE CHEYENNE, WYOMING PHONE (307) Purchasing Manager Angela Morson (307) PURCHASING REPRESENTATIVES: Brenda Crozier (307) Mandy Gershmel (307) Debi Walker (307) SUPPORT STAFF Joanne Soveroski (307) Page 2

3 DEPARTMENT OF ADMINISTRATION AND INFORMATION PROCUREMENT SECTION PURCHASING PROCEDURES MANUAL Table of Contents SECTION 1: PROCUREMENT... 4 SECTION 1A: PROCUREMENT UP TO $2500 (TOTAL TO PAY)... 4 SECTION 1B: PROCUREMENT $2500 TO $7500 (TOTAL TO PAY)... 5 SECTION 1C: PROCUREMENT $7500 AND UP... 7 SECTION 1D: PAYMENT VOUCHERS SECTION 1E: REQUISITIONING SUPPLIES, MATERIALS, EQUIPMENT OR SERVICES SECTION 1F: PURCHASE ORDER (PO) SECTION 1G: CHANGE ORDERS SECTION 1H: CONTRACTS SECTION 1I: EMERGENCY PURCHASES SECTION 2: BIDDING PROCESS SECTION 2A: REQUEST FOR PROPOSAL (RFP) SECTION 2B: AMENDMENTS TO INVITATION FOR BIDS/REQUESTS FOR PROPOSALS SECTION 2C: BID EXCEPTION APPROVAL REQUESTS EXCEEDING $7, SECTION 2D: BIDDER REGISTRATION SECTION 2E: PREFERENCE TO WYOMING RESIDENT BIDDERS SECTION 2F: PRINTING PREFERENCE SECTION 2G: MOVING EXPENSES SECTION 2H: USE OR PURCHASE OF MEAT SECTION 2I: PURCHASES USING FEDERAL FUNDS SECTION 2J: EXEMPTION FROM TAXES SECTION 3: CONSTRUCTION SECTION 3A: BID OR RFP SPECIFICATIONS SECTION 3B: ADVERTISING A CALL FOR BIDS FOR CONSTRUCTION PROJECTS SECTION 3C: BID BOND SECTION 3D: PERFORMANCE BOND SECTION 3E: PREVAILING WAGE STATEMENT SECTION 3F: VALUE INCENTIVE CLAUSE SECTION 3G: NOTICE OF AWARD (PRIMARILY USED IN CONSTRUCTION BASED BIDDING) SECTION 3H: PUBLICATION AND POSTING OF NOTICE OF ACCEPTANCE AND FINAL SETTLEMENT WITH CONTRACTOR SECTION 3I: CONTRACTOR'S AFFIDAVIT SECTION 3J: PROCUREMENT OF ARCHITECT, ENGINEER AND LAND SURVEYOR SERVICES Page 3

4 Section 1: Section 1a: up to $2500 (Total to Pay) The purpose of this policy is to provide agencies a means of obtaining supplies, materials, or services. Authorized expenditure of issuing a Requisition (RQS) (See WOLFS Procedures) or a verbal order followed by a payment voucher. (See WOLFS Procedures). Agencies may enter an optional RQS for 200 series expenditures under $2, EXCEPTIONS: A Requisition (RQS) must be processed through for all 900 series or service related expenditures exceeding $ NOTE: Agencies should not make payments exceeding $2,500 to one vendor within a fifteen (15) day period without approval from the Purchasing Office. 1) Processing a Requisition (RQS) The determines need and elects to initiate an order through. The initiates Requisition (RQS) in accordance with WOLFS Procedures. NOTE: Agencies must enter any information intended to print on the purchase order (PO) in the extended description on the COMMODITY SIDE of the WOLFS Requisition (RQS). 2) Processing a Purchase Order (PO) The Purchasing Representative reviews Requisitions (RQS s) online for completeness, accuracy and verifies the appropriate method of procurement (written quote, formal bid, competitive negotiation, noncompetitive negotiation, or order from established contract). The Purchasing Representative will complete required procurement procedures. The Purchasing Representative will process the Purchase Order (PO) Document for each approved Requisition (RQS) transaction. Other than IT orders or special requests by agencies, staff mails vendor a copy of Purchase Order (PO). Vendor Vendor will complete the order in accordance with requirements of Purchase Order (PO). When the order is complete, vendor will send itemized invoice to agency. When goods are delivered, they are checked against the Purchase Order (PO). If the order is complete, the agency will process payment voucher (PRC) in accordance with WOLFS Procedures. Page 4

5 Section 1b: $2500 to $7500 (Total to Pay) The purpose of this policy is to obtain the best price possible through formal bids, written quotes, competitive or noncompetitive negotiation. Authorized expenditure from an approved Requisition (RQS). Formal quotations may be solicited by Agencies and sent to. Document by listing the name of the vendor, the quoted price, and the item name including brand, model, etc., on the Requisition (RQS) or separate sheet of paper. Include the names of three vendors whenever possible. If the agency elects not to obtain their own quotes, will determine the appropriate means of obtaining competition. 1) Processing a Requisition (RQS) determines the need for a purchase between $2500 and $7500 and initiates a Requisition (RQS) for items needed in accordance with WOLFS procedures. Representative receives Requisition (RQS). Purchasing Representative processes Purchase Order (PO) or Master Service Agreement (MSA) for the approved Requisition (RQS). Other than IT orders or special requests by agencies, staff mails vendor a copy of Purchase Order (PO) to the vendor. NOTE: Agencies must enter any information intended to print on the Purchase Order (PO) in the extended description on the COMMODITY SIDE of the WOLFS RQS. 2) Request for Quote determines the need and estimates total expenditure to be less than $7500. contacts vendors, (usually 3) and obtains verbal price quotation, noting the name of the person giving the quote and the date. When obtaining price quotes, agency also establishes Freight Costs, Delivery Time and Terms. documents all the above information. initiates Requisition (RQS) in accordance with WOLFS Procedures and includes price quote documentation on original Requisition (RQS) processes Purchase Order (PO) if Purchasing Representative feels the best price has been obtained. 3) Competitive Bid Process determines the need and requests solicit formal bids. notifies. The written request should contain any available specifications. Page 5

6 reviews the information provided by agency to ensure specifications are accurate and nonrestrictive. staff creates bid document using the specifications obtained from the agency, combined with legal requirements. staff s bid documentation to requesting agency for review. approves bid documentation. Staff posts bid to online bidding system. Bidder Bidder completes Invitation for Bid as to price, time allowed for acceptance, delivery time and terms. Bidder signs bid and uploads it to online bidding system prior to the time and date of opening. unlocks bids on online bidding system at appropriate date and time and assures that each bid received complies with the specifications therein. tabulates bid results, determines award, and contacts agency for concurrence. concurs with bid award. (If does not concur, contacts to reach an agreement). completes Requisition (RQS) in accordance with WOLFS Procedures. issues a Purchase Order (PO). staff uploads tabulation to online bidding system. 4) Processing a Purchase Order (PO) submits Requisition to authorizing issuance of a Purchase Order (PO) (see WOLFS Procedures). Purchasing Representative reviews Requisition (RQS) online for completeness and accuracy and determines the appropriate method of procurement (quotes, formal bid, competitive negotiation, noncompetitive negotiation or order from established contract). Purchasing Representative processes Purchase Order (PO) document for each approved Requisition (RQS) transaction. Staff mails vendor copy of Purchase Order (PO), unless otherwise specified by the agency Vendor Completes order in accordance with requirements of the Purchase Order (PO). When order is complete, vendor sends itemized invoice to agency. Page 6

7 When goods are delivered, they are checked against the Purchase Order (PO). If order is complete, agency processes payment voucher (PRC) in accordance with WOLFS Procedures. 5) Initiating a Service Contract/Price Agreement (MSA) submits Requisition (RQS) to authorizing establishment of a Master Service Agreement (see WOLFS Procedures). Contracts for services exceeding $1, requires a formal written contract (see Atty. Gen. Contract Manual or contact an A&I Purchasing Representative). Purchasing Representative establishes a Master Service Agreement by means of formal bids, written quotes, competitive negotiations, etc. Representative assigns a Master Service Agreement Number. Representative enters general Information in the Master Service Agreement document about the new agreement, enters specific pricing, agency and vendor information, and enters appropriate commodity code and commodity description information. encumbers funds and initiates orders against Master Service Agreements or Price Agreements in accordance with WOLFS Procedures. NOTE: Change Orders to Master Service Agreements or Master Price Agreements are initiated by the agency in accordance with WOLFS Procedures. Section 1c: $7500 and Up The basic method for procuring supplies, materials, equipment and services for use by the State of Wyoming is by competitive sealed bidding, in order to secure acceptable products at the lowest possible cost to the taxpayers of the State. Competitive and noncompetitive negotiations are also used when the use of competitive sealed bidding is not feasible or practical and in accordance with W.S The purpose of this policy is to encourage maximum, open competition in the purchasing program for the State of Wyoming and at the same time assure all agencies of quality supplies, materials, equipment or services; reasonable delivery and the best possible price. The law states expenditures in excess of $7,500 shall be made by competitive sealed bidding when the configuration or performance specifications and other conditions permit. (W.S (b)(A)) Whenever the Administrator determines in writing that use of competitive sealed bidding is not feasible or practical, contracts for supplies, materials or services may be made by competitive negotiation. An elected state official may also contract for supplies or services for his office by competitive negotiation if the contract is for Page 8

8 twenty-thousand dollars ($20,000.00) or less and they determines that the use of competitive sealed bidding is not feasible or practical. (W.S (b)(B)) Contracts may be made by noncompetitive negotiation only when competition is not feasible, as determined in writing prior to award by the administrator and as approved by the Governor or his designee. An elected state official may also contract for supplies or services for his office by noncompetitive negotiation if the contract is for twenty thousand dollars ($20,000.00) or less and he determines that the use of competitive sealed bidding is not feasible or practical. (W.S (b)(C).) Noncompetitive negotiation is normally used only on documented sole source, or emergency purchases submitted as an approval request. Bids or contracts for contractual services, consulting services, and special projects and services, for the purpose of hiring professionals, consultants or contracted services in an amount exceeding $1,500 but less than $7,500 require the approval of the agency head prior to State commitment. (W.S (b)(D) and Executive Order ) Expenditures exceeding $7,500 require approval of the governor or his designee prior to State commitment. Requisitions (RQSs) with complete, accurate specifications on the goods or services required must be forwarded to. Formal bidding, competitive and noncompetitive approval will be obtained by. After procurement procedure is completed, issues a Purchase Order (PO) or Master Service Agreement (MSA). NOTE: Agencies are not allowed to split orders to avoid the monetary limitations on any of the preceding policies. 1) Competitive Bid Process determines need and estimates expenditure to be in excess of $7,500 or desires solicit formal bids on expenditures of lesser amounts. notifies in writing that they desire formal bids for the required goods or services. The written request should contain any available specifications. reviews information provided by to ensure specifications are accurate and nonrestrictive. Staff s bid documentation to requesting agency for review. approves bid document. Staff posts bid to online bidding system. Bidder Bidder completes Invitation for Bid as to price, time allowed for acceptance, delivery time and terms. Bidder signs bid and uploads it to online bidding system prior to the time and date of opening. Page 9

9 unlocks bids on online bidding system at appropriate date and time and assures that each bid received complies with the specifications therein. tabulates bid results, determines award, and contacts agency for concurrence. concurs with bid award. (If does not concur, contacts to reach an agreement). completes Requisition (RQS) in accordance with WOLFS Procedures. Purchasing Representative uploads tabulation to online bidding system. initiates Requisition (RQS) process. 2) Use of Noncompetitive Negotiation determines need and estimates expenditure to be in excess of $7,500. A Bid Exception Approval is initiated by the designated agency personnel in accordance with the policy outlined under the section labeled Approval Request. Once all levels of approval have been obtained, the agency initiates a Requisition (RQS), noting the approval number, in accordance with WOLFS Procedures. Purchasing Representative reviews Requisition (RQS) for completeness and accuracy and determines appropriate method of procurement is by noncompetitive negotiation. Purchasing Representative coordinates the RQS with the Bid Exception Approval and initiates a Purchase Order (PO) or a Master Service Agreement (MSA). 3) Processing a Purchase Order (PO) The Purchasing Representative reviews Requisitions (RQS s) online for completeness, accuracy and verifies the appropriate method of procurement (written quote, formal bid, competitive negotiation, noncompetitive negotiation, or order from established contract). The Purchasing Representative will complete required procurement procedures. The Purchasing Representative will process the Purchase Order (PO) Document for each approved Requisition (RQS) transaction. Other than IT orders or special requests by agencies, staff mails vendor a copy of Purchase Order (PO). Vendor Vendor completes order in accordance with requirements of Purchase Order (PO). When order is complete, vendor sends itemized invoice to agency. When goods are delivered, they are checked against the Purchase Order (PO). If order is complete, process payment voucher (PRC) in accordance with WOLFS Procedures. Page 10

10 Section 1d: Payment Vouchers A GAX document is the means for recording and submitting for payment any obligation incurred by the State for selected items. Authorized expenditures by issuing a GAX document that may be submitted directly to the Auditor without prior approval of include: 1) Utilities ) Communication ) Travel Vouchers/In-State ) Travel Vouchers/Out-of-State ) Assessments ) Payments/Interest and Other ) Judgments ) Restrictive Costs or Services ) Grants and Aid Payments All 600 Series 10) Payments against service contracts or price agreements 11) Charges on Purchasing Card/Other than those referencing encumbrance 12) Expenditures less than $2,500 to one vendor within a fifteen day period except categories referenced in Section 1a 13) Expenditures for goods intended for resale to residents of state institutions (canteen purchases) and the public NOTE: The following object series are excluded from the Division review: 0100 series (Personal Services); 0300 series (Restrictive Costs or Services); 0400 series (Internal Enterprise Technology Services); 0500 series (Internal Space Rental); and 800 series (Non-operating Expenditures). Section 1e: Requisitioning Supplies, Materials, Equipment or Services The Requisition (RQS) notifies that an agency desires supplies, materials, equipment or services. The procedure used depends on the amount of the purchase and type of purchase. Agencies desiring supplies, materials, equipment or services, the total expenditure of which exceeds $ for commodities or $1, for services expenditures, must initiate a Requisition (RQS). The Requisition (RQS) is normally the only document submitted and must provide complete information on the transaction and be approved by the department head or his authorized representative. Page 11

11 A detailed description including shipping information should be given for all commodities. If the agency desires additional material be sent to the vendor with the Purchase Order (PO), the material must either be furnished to the Office referencing the Requisition (RQS), or uploaded to the Requisition (RQS) document. The Requisition (RQS) must reference the attachment(s) and clearly state desired disposition. 1) Processing a Requisition (RQS) for Supplies, Materials, or Equipment. determines need and initiates Requisition (RQS) for items needed in accordance with WOLFS Procedures Purchasing Representative processes Purchase Order (PO) or Master Service Agreement for the approved Requisition (RQS). Unless otherwise noted, staff mails vendor a copy of Purchase Order (PO). NOTE: Agencies must enter any information intended to print on the Purchase Order (PO) in the extended description on the COMMODITY SIDE of the WOLFS RQS. 2) $1,500 and Up (Total to Pay) - Approval for Hiring Professionals, Consultants or Contracted Services Determines need for professional, consultant or contracted service and estimated expenditure to be in excess of $1,500. initiates Requisition (RQS) in accordance with WOLFS Procedures. Contracts for Services exceeding $1,500 require a formal written contract (see Attorney General Contract Manual or contact an A&I Purchasing Representative). If expenditure exceeds $7,500 an approval request must be submitted electronically. receives Requisition (RQS) and reviews for completeness, i.e. approved approval request document, signed contract, necessary approvals, etc. processes Purchase Order (PO) or Master Service Agreement (MSA) for the approved Requisition (RQS). Staff mails vendor a copy of Purchase Order (PO). Section 1f: Purchase Order (PO) A Purchase Order (PO) is authorization to a vendor to supply goods or services to the State of Wyoming. issues Purchase Orders (PO) to vendors subsequent to processing Requisitions (RQSs) submitted by the various State agencies. The Purchase Order (PO) is Page 12

12 the vendor's authorization to deliver goods or services and assurance that payment will be made. is the only agency authorized to issue a Purchase Order (PO). Orders issued by an agency to a vendor without processing through are not authorized. NOTE: Vendors are not authorized to ship orders in excess of $2,500 without receipt of a Purchase Order (PO). Section 1g: Change Orders When changes occur to original Purchase Orders (POs) or Master Service Agreement (MSA), the corrections are made when procurement is in receipt of a Change Order A&I-4 Form or contract amendment. Requests for changes to original Purchase Orders (POs) must be submitted on an A&I-4 Form to for review and approval. Upon approval, the original Purchase Order (PO) will be amended on WOLFS. When price changes occur on Purchase Orders (POs), a change order is required when the monetary increase exceeds $250 (WOLFS allows an overage up to $250 on the payment transaction). Requests for changes to Master Service Agreements must be submitted on an RQS containing the required information. A WRITTEN Amendment must be issued to extend the completion date for delivery of a product or a service. A verbal authorization voids any leverage the State may have if further action should be required against the contractor. Failure to formally authorize a time extension in writing is assumed to be a violation of the Contract by the State and can negotiate any action the State would need to take against the contractor if a problem arises. 1) Issuing a Change Order, A&I-4 Form, to update or correct original Purchase Order (PO) determines need for change on existing Purchase Order (PO). prepares A&I-4. sends the A&I-4 to. receives A&I-4. Purchasing Representative reviews and approves requested change. To modify Purchase Order (PO), the Purchasing Representative enters changes to the original Purchase Order (PO) on the WOLFS System. The modified Purchase Order (PO) is mailed to the vendor if requested. NOTE: Certain changes may require to modify RQS. Changes to a vendor number or Budget Fiscal Year cannot be accomplished using an A&I-4 Form due to WOLFS restrictions. Page 13

13 2) Issuing an Amendment to update or correct a Master Service Agreement (MSA). determines need for change on existing Master Service Agreement (MSA). enters Requisition (RQS) containing all required information relating to the necessary changes. receives Requisition (RQS) on E100 Report and approves requested changes. makes required changes to the appropriate contract tables. discards Requisition (RQS). NOTE: If the change to a Service Contract or Price Agreement is a date extension only, an RQS document is not required. Please contact the Purchasing Representative in writing and provide the Master Service Agreement (MSA) number, date information and a copy of the written amendment providing for the extension. Section 1h: Contracts Contracts are a method of procurement designed to improve the ordering of goods or services used repeatedly or on a continuing basis. All contracts must be written and be clear and definite as to all of the terms and conditions. Please contact the Attorney General's Office for further information. Whenever an agency has a need to contract for goods or services and more than one payment will be required to fulfill the agreement, a Master Service Agreement (MSA) shall be issued by. shall let for competitive bid all requests exceeding $7, All requests for Master Service Agreements (MSA s) shall be submitted on a Requisition (RQS). All Requisitions (RQSs) for Master Service Agreements (MSA s) calling for services (typically expended in the WOLFS series 900) shall be accompanied by a written contract stipulating the requirements. EXTENSIONS - Contracts may be extended or amended by written mutual agreement of the parties provided the original terms and conditions remain unchanged. The standard extension period for contracts is two (2) additional years. 1) Initiating a Service Contract/Price Agreement submits Requisition (RQS) to authorizing establishment of a contract. (See WOLFS Procedures). Page 14

14 Purchasing Representative establishes a Master Service Agreement (MSA) by means of formal bids, written quotes, competitive negotiation, etc. Representative assigns a Master Service Agreement (MSA) Number. Representative enters General Information in the Master Service Agreement (MSA) on WOLFS. Under no circumstances may a contract exceeding $7, be of confirming nature. Any confirming contract in excess of $7, submitted to that has been placed into effect by the agency will be disapproved and it will be the agency s responsibility to dissolve the contract with the contractor. NO payment will be authorized to contractors in such instances (W.S (b)(iv). initiates orders against the Master Service Agreement (MSA) in accordance with WOLFS Procedures. NOTE: MSC Documents must be approved by the agency and. Section 1i: Emergency Purchases It is realized that there will be emergency purchases and other exceptions that the procurement policies do not cover. Emergencies or exceptions must be verbally authorized by the Program Manager prior to an agency making any commitment to vendors. As follow up, the agency must, in writing, reiterate the situation and forward it to the Office. 1) Obtaining Authorization has a need to make purchase due to an emergency situation. determines exact need and approximate expenditure, then contacts the Manager, either verbally or in writing and explains situation. The Office advises the to proceed depending on the severity of the emergency. The Program Manger advises the Governor's office, or the assigned designee. initiates Requisition (RQS) in accordance with WOLFS Procedures and a Bid Exception Approval if over $7,500, and forwards documentation detailing emergency situation and Requisition (RQS) to for processing and subsequent issuance of Purchase Order (PO). Page 15

15 Section 2: Bidding Process Section 2a: Request for Proposal (RFP) A Request for Proposal is a method of procurement used to secure commodities and services by competitive pricing and evaluation, in accordance with W.S Whenever commodities or services are required in an amount in excess of $7,500.00, competitive pricing may be obtained through a Request for Proposal*. This method requires a close working relationship between the agency, potential suppliers, and. The Request for Proposal must define all minimum requirements, both design and performance, and must set forth the method to be used for evaluation for award. An evaluation team comprised primarily of members of the user agency should be established to review the proposal submissions. Copies of the proposal submissions are available after the proposal deadline and are subject to the provisions outlined in the Wyoming Public Records Act W.S through Prior to release of response information, may contact individual proposers to identify items restricted by the Wyoming Public Records Act. *If service or material is IT related, please call the State CIO s Office ( ) for current policies and procedures. *To promote technology opportunities for Wyoming technology businesses, please refer to the A&I- website for specific information regarding Executive Order purchasing 1) Request for Proposal Process determines need and requests solicit formal proposals. notifies in writing that they desire a Request for Proposal for the required goods or services. The written request should contain any necessary requirements or specifications. Purchasing Representative reviews all information and determines that the RFP method of procurement is to be utilized. prepares Request for Proposal document and uploads to online bidding site. On specified opening date and time, the Purchasing Representative unlocks the RFP. evaluates proposals on the basis of the criteria contained in the RFP. notifies Purchasing Representative that award is being made to specific proposer, and Page 16

16 provided a scoring summary supporting the decision in accordance with evaluation criteria contained in the RFP. Purchasing Representative uploads scoring summary to the online bidding site and notifies bidders. Page 17

17 completes Requisition (RQS) in accordance with WOLFS procedures. prepares Purchase Order (PO) or Master Service Agreement (MSA) and all relevant documents for subsequent performance of contract. Section 2b: Amendments to Invitation for Bids/Requests for Proposals Occasionally, after bids are solicited, but prior to bid opening time, changes are necessary to the bid document. These changes are made in writing by an addendum to the bid. Whenever changes are required to a bid document, issues an addendum in writing and posts to online bidding site. This action is necessary to assure that all bidders are bidding on the same basis and have the same understanding of the requirements. Section 2c: Bid Exception Approval Requests Exceeding $7, The purpose of this policy is to request approval for expenditures exceeding the statutorily mandated $7, bidding limit. (W.S ). All expenditures in excess of $7, shall be formally bid by the Office unless the formal bidding requirement is reviewed by and approved by the Governor or his designee. Agencies have designated personnel who are able to initiate Bid Exception Approvals using the A&I online request system. Proper documentation must be uploaded to the request supporting the need for approval. Designated personnel can track progress of the request using designated section. Approval to must be prior to any commitment and must be for one or more of the following reasons: A) Sole Source and/or Nonnegotiated means that bidding is not feasible because the requested commodities or services are available from one vendor. B) Negotiated approval means that competitive pricing was obtained by means other than formalized bidding with the prior knowledge and approval of because formalized bidding would cause undue delay in consummating the purchase or would yield no results. The Office will review each request. Per W.S (b)(B) the governor does not need to approve the request. C) Emergency means the has a need to make a purchase due to an emergency situation. Written or verbal approval should be obtained from the Manager and followed up by a formal request. Page 18

18 determines the need for acquisition of goods or services in an amount exceeding $7, and desires the acquisition be made without formal bidding. Designated personnel initiates a request using the A&I online request system by stating the specific reason/s why the competitive bid/rfp process is not feasible; the specific reason/s why the vendor has been chosen for the procurement of the goods or services; and the reason the request should be approved (sole source/non-negotiated, negotiated, or emergency). uploads supporting documentation. management receives request and assigns it to the appropriate Purchasing Representative. Purchasing Representative reviews request for accuracy, and completeness, questioning agency on any matters that may be unclear. Purchasing Representative approves the request and moves it forward to procurement management for review/approval prior to forwarding it for Executive Authorization (the Governor or assigned designee), or to the State Construction Department for review/approval if construction related. Governor or assigned designee Receives and reviews the request. Approves or disapproves request and applies his authorization. Purchasing Representative transfers finalization of request. A Purchase Order (PO), or Master Service Agreement (MSA) is initiated using paperwork submitted by the. Management uses approved information to incorporate into report accessible on the website. The information is updated on a weekly b asis. Section 2d: Bidder Registration Bidders must register with the online bidding entity that A&I- utilizes to solicit and receive bids and Request For Proposals (RFP s). The office utilizes classification codes maintained by Public Purchase when creating an invitation to bid. Bidders must register with Public Purchase to ensure they are notified of invitations for bids solicited by the Office. It is the responsibility of the vendor to periodically check Public Purchase for bid solicitations that they may not have received a notification for due to a specific classification code being chosen that they did not register for. It is also the responsibility of the vendor to maintain their registration with Public Purchase to ensure the correct address is on file with Public Purchase. The office is not responsible for maintaining the list of bidders that are registered or the address on file. 1) Registering with Public Purchase to receive solicitations. Page 19

19 Vendor Vendor should use the link below to complete registration with Public Purchase. They may use the instructions found on the A&I website A&I Website link: Public Purchase registration link: Section 2e: Preference to Wyoming Resident Bidders The in-state preference applicable to the procurement of materials, supplies, equipment, or services assures that Wyoming resident bidders are afforded an advantage over out-of-state bidders; thus retaining as much of the taxpayer's money within the Wyoming economy as possible. Whenever bids are solicited, award shall be made to the resident making the lowest bid if such bid is not more than five percent (5%) higher than that of the lowest responsible nonresident bidder and provided that articles bid are not of inferior quality to those offered by competitors outside of the State. (W.S ) It is the responsibility of the bidder to contact the Department of Workforce Services, Labor Standards to obtain a residency certification number. ( ) 1) Applying In-State Preference After bids are solicited and tabulated (see Section 1c: Competitive Bid Process), each out-of-state bid is increased by 5% for the purpose of determination of award only. All bids are reviewed to determine lowest bid complying with specifications. Award is made to low bidder. Section 2f: Printing Preference The in-state preference applicable to the procurement of printing assures that Wyoming resident bidders are afforded an advantage over out-of-state bidders; thus retaining as much of the taxpayer's money within the Wyoming economy as possible. Whenever bids are solicited for printing, award shall be made to the resident bidder making the lowest bid if such bid is not more than ten percent (10%) higher than that of the lowest responsible non-resident bidder. Any resident bidder who desires to be considered for the Page 18

20 Ten percent (10%) in-state preference must agree to contract at least 75% of the work within the State of Wyoming. A resident bidder may waive his right to be considered for the ten percent (10%) in-state preference. (W.S ) It is the responsibility of the bidder to contact the Department of Workforce Services, Labor Standards to obtain a residency certification number. ( ) 1) Applying In-State Printing Preference After bids are solicited and tabulated (see section 1c: Competitive Bid Process), each out-of-state bid, and in-state bid (if work does not satisfy the 75% requirement), is increased by 10% for the purpose of determination of award only. All bids are reviewed to determine lowest bid complying with specifications. Award is made to low bidder. Section 2g: Moving Expenses Agencies requiring an employee to move from one locality to another for permanent duty shall pay the actual expenses of transporting the household goods and effects of such employee. (W.S ) Agencies requiring the move of an employee must obtain a minimum of three (3) written estimates from commercial vendors. The estimates must be attached to the Requisition (RQS) and forwarded to for issuance of a Purchase Order ( PO). 1) Quotation for Moving Expenses requires employee to move and determines need to pay expenses. contacts at least three (3) vendors and obtains a written price quotation from each. initiates Requisition (RQS) in accordance with WOLFS Procedure. documents quotes obtained on Requisition (RQS). Section 2h: Use or Purchase of Meat The purpose of this policy is to assure that all meat used or purchased for use in any State institution is produced and processed within the United States. All meat used or purchased for use in any State institution shall be produced and processed within the United States. No one shall negotiate, execute, or approve any contract for the Page 19

21 Purchase of meat to be used in any State institution if the meat has been produced or processed outside the United States. (W.S (g).) Section 2i: Purchases Using Federal Funds This policy insures that federal funds are spent in accordance with federal g uidelines. Agencies expending federal funds are required to process through for bidding, contracting, etc. A copy of the "procurement policy" issued by the federal government for the funds being expended should accompany the Requisition (RQS). will follow its published policies and procedures in purchasing goods and services that involve the use of federal funds provided these policies and procedures adhere to Federal standards. Section 2j: Exemption from Taxes Billing on direct purchases of materials by the State of Wyoming should not include State or Federal Taxes. The State of Wyoming is Tax Exempt. Direct purchases of materials by the State of Wyoming are exempt from Wyoming Sales or Use Tax. If required, issues tax exemption certificate upon request. EXCEPTION: Gasoline purchases made by the State of Wyoming are subject to State gasoline tax. Contractors purchasing and consuming materials, equipment, and supplies for their performance of alteration, improvement, or repair of real property are subject to the Wyoming Sales or Use Tax. Purchases by Contractors of equipment, materials, and supplies consumed in contracts with the United States Government, the State of Wyoming, and its subdivisions thereof are subject to Wyoming Sales or Use Tax. Agencies physically picking up merchandise from a vendor in another State are subject to that State's Sales Tax charges. NOTE: In construction, remodeling, or improvements to real property, the Contractor is considered the consumer and is responsible for payment of Wyoming Sales or Use Tax to the Department of Revenue. Page 20

22 W.S At the direction of the State Construction Department, the Division will continue to perform the procurement process for construction related bids, RFP s, contracts and bonding. Section 3: Construction Section 3a: Bid or RFP Specifications Specifications are a concise statement of a set of requirements to be satisfied by a product, material, process or service indicating, whenever appropriate, the procedure by means of which it may be determined whether the requirements given are satisfied. All Invitations for Bid must include specifications. Specifications for construction or highly technical items must be submitted to. Specifications must include all the requirements of the using agency and describe the function desired. If the award is to be based on anything other than price, the specifications shall so state. Various types of specifications and definitions follow: 1. Performance Specifications - a description which describes the functions to be achieved performed. 2. Design Specifications - a description which describes physical characteristics; i.e. basic design, dimensions, weights, percent and type of ingredients, and types and grades of materials. 3. Combination of Performance/Design Specifications - a description which minimally describes physical characteristics and fully describes desired function. 4. Qualified Products List - a list of brand name products which have been tested and have met stated specifications. 5. Brand Name or Equivalent - the use of a brand name to describe minimum requirements with consideration given to other brands offered meeting or exceeding minimum requirements. Specifications must: 1. Identify minimum requirements 2. Allow for a competitive bid 3. List methods to be used in testing for compliance with specification 4. Provide for an equitable award at the lowest possible cost. Sufficient time must be allowed by agencies so that can complete the bidding process. 1) Providing Specifications for Construction or items of a highly technical nature. Page 21

23 obtains, through the services of an engineer/architect or vendor, specifications that satisfy the needs of the agency. sends specifications or completed bid package to. reviews specifications for completeness and consults with or engineer/architect if additional information is needed. encompasses specifications into bid invitation if the agency has not already submitted the complete bid package to. Section 3b: Advertising A Call For Bids For Construction Projects The purpose of Advertising a Call for Bids is to secure for the State of Wyoming the benefits from competition and to prevent collusion and fraud in letting contracts. may call for bids in an official newspaper for purchases or contracts for supplies, materials, equipment or services, the total of which exceeds $25,000. Advertisements shall be placed in a newspaper within the State of general circulation. Agencies may request the advertisement be placed in an alternate newspaper. Agencies should submit a request for advertisement and specify the newspaper they would like the advertisement to be published in, as well as the publication dates. will notify the newspaper. The newspaper will invoice the agency directly. The agency will submit a GAX to the Auditor's office for payment. reserves the right to require advertising when it feels it would be advantageous to the State of Wyoming. Section 3c: Bid Bond Bid Bonds provide the State of Wyoming an assurance of a bidder's interest in supplying specified goods or services and their intent in carrying out the requirements if a bid should be awarded. A bid bond or other form of bid guarantee satisfactory to the state may be required in an amount equal to ten percent (10%) of the aggregate amount of the bid or contract when a contract to be awarded under the solicitation is expected to exceed one thousand five hundred dollars ($1,500.00). The bond may be provided by a surety company authorized to do business in the State of Wyoming. Page 22

24 A bid bond or other form of bid guarantee satisfactory to the state may be retained by the state as surety throughout the term of the awarded contract provided the amount of the contract is less than twenty-five thousand dollars ($25,000.00). Before any contract exceeding twenty-five thousand dollars ($25,000.00) in amount, for the construction, alteration or repair of any public building or public work or improvement of the state is awarded to any person, the person shall furnish to the state a performance and payment bond executed by a surety company authorized to do business in the state of Wyoming or other form of surety satisfactory to the state, in an amount equal to one hundred percent (100%) of the contract price. Section 3d: Performance Bond Performance Bonds provide the State of Wyoming a guarantee that the bidder will execute the contract as specified. Before any contract exceeding $25,000 in amount, for the construction alteration or repair of any public building or public work or improvement of the State is awarded to any person, the person shall furnish to the State a Performance and Payment Bond executed by a surety company authorized to do business in the State of Wyoming or other form of surety satisfactory to the State, in an amount equal to one hundred percent (100%) of the contract price. Following bid award, the successful bidder must within twenty (20) calendar days after notification of award deliver an executed Contractor's Performance and Payment Bond as security for the faithful performance of the contract. The bond shall be submitted on the State's approved form and shall meet all requirements as to form and execution. Contract bond must be furnished or countersigned by a duly appointed resident agent authorized to do business in the State of Wyoming and must be approved by the Office of the Attorney General. 1) Furnishing a Performance and Payment Bond After determining successful bidder on an Invitation for Bid, procurement notifies the bidder of award and requests them to furnish a Performance and Payment Bond in an amount equal to their total bid. Vendor Vendor obtains bond on standard bonding form and has bond furnished or countersigned by a duly appointed resident agent authorized to do business in the State of Wyoming. Vendor forwards bond to. reviews bond as to form and execution and forwards bond to Attorney General for approval. Page 23

25 Attorney General Attorney General approves bond and returns to. (NOTE: If not approved, bond is returned to to be returned to the vendor for correction.) Section 3e: Prevailing Wage Statement The purpose of this Policy is to provide to the agencies information when a prevailing wage statement should be included in a construction contract, why it should be included and how it should be applied. Prevailing wage statements shall be included in all Invitations to Bid for construction, reconstruction, improvement, enlargement, alteration or repair of any public improvement fairly estimated to cost ($100,000.00) or more. All wages listed in a prevailing wage statement are wages that must be paid. A contractor may pay more than the wages stated, but he may not pay less than those stated. A prevailing wage statement includes wages that are paid generally in the locality where the work is done. The locality means the Judicial District in which the work is being done. The prevailing wage is determined by a survey. Section 3f: Value Incentive Clause The Value Incentive Clause allows contractors the opportunity to submit cost reduction proposals to the State with the effect of reducing costs to the State while receiving a share of the reduction as an incentive. includes the Value Incentive Clause in applicable Invitations for Bid. This clause applies to any cost reduction proposal (hereinafter referred to as a Value Change Proposal or VCP) submitted after contract award, by the Contractor, for the purpose of changing any requirements of this contract. VCP's may be submitted only by Contractors holding current contracts and only for those items awarded to the Contractor. VCP's must be formal proposals and must result in savings without impairing any required functions and characteristics such as service life, reliability, economy of operation, level of operational performance, ease of maintenance, standardization features, aesthetics, fire protection features, and safety features, presently required by this contract. However, nothing precludes the submittal of VCP's where the Contractor considers that the required functions and characteristics could be combined, reduced, or eliminated, as being non-essential or excessive to the satisfactory performance of the work involved. Four copies of each VCP shall be submitted to. VCP's will be processed expeditiously; however, the State will not be liable for any delay in acting upon a VCP submitted pursuant to this clause. The Contractor may withdraw, in whole or in part, a VCP not accepted by the State within the period specified in the VCP. The State shall not be Page 24

26 liable for VCP development cost in the case where a VCP is rejected or withdrawn. The decision of the State as to the acceptance or rejection of a VCP under this contract shall be final and shall not be subject to disputes. The Contractor shall prepare separate estimates for both the exiting (Instant) contract requirement and the proposed change. Each estimate shall consist of an itemized breakdown of all costs of the Contractor and all Subcontractor's work in sufficient detail to show unit quantities and total costs of labor, material, overhead, and e quipment. If a VCP is accepted by the State, the Contractor is entitled to share in instant savings to the full extent provided for in this clause. For the purpose of sharing under this clause, the term "instant contract" shall not include any changes to or other modifications of this contract, executed subsequent to acceptance of the particular VCP, by which the State increases the quantity of any item of work or adds any item of work. It shall not include any extension of the instant contract through exercise of an option (if any) provided under this contract after acceptance of the VCP. If a VCP accepted by the State results in a net reduction in contract price, the Contractor is entitled to share in instant savings. The amount of sharing shall be at the rates provided below. If the Contractor submits, under this clause, a proposal which is identical, or substantially similar, to one previously received by under a different contract with the Contractor for substantially the same terms, and both proposals are accepted by the State, the Contractor shall share instant contract savings realized under this contract, pursuant to the following paragraph. If the prime Contractor is solely responsible for the VCP, he shall receive 50% and the State 50% of the net reduction in the cost of performance of this contract. The method for payment of instant savings shares shall be accomplished by reducing the contract unit price by an amount equal to the State's share of the savings. Section 3g: Notice of Award (Primarily Used in Construction Based Bidding) The Notice of Award is sent to the awarded bidder to advise of the State's intent to contract. After determining the successful bidder on bids requiring bonds, insurance and/or worker's compensation certificates, sends a notice of award letter. This letter informs the bidder that he has received the award, stipulates the bonding, insurance and/or worker's compensation requirements he must meet, and affirms the State's intent to contract. Page 25

27 Section 3h: Publication and Posting of Notice of Acceptance and Final Settlement with Contractor The purpose of publication and posting of Notice of Acceptance and Final Settlement with the Contractor is to notify all concerned, publicly, that the work has been accepted as completed as according to the plans and specifications. Forty days (40) before the final installment of a contract shall be paid, notice shall be published in a newspaper of general circulations, nearest the point where the work is being done once a week for three consecutive weeks and also posted in three conspicuous places on such work site that the work has been accepted and completed according to the plans, specifications, and rules of the contact and that the Contractor is entitled to final payment. The notice shall say, and specify an exact date, that upon the forty-first (41) day after the first publication the Contractor will be paid the final and full amount due under the contract. (W.S ) 1) Publications and Posting of Final Acceptance must be published in a newspaper nearest the job site and posted in three conspicuous places on the job site prepares written memo requesting newspaper advertisement and includes the following information: a) The work has been completed satisfactorily and accepted by the, b) A date for the first legal advertisement to appear in the newspaper nearest the job site, and c) A date for the final payment to be made. This date must be 41 days after the first advertisement. sends the memo to. consults with agency if additional information is required. Staff types information on form to send to newspaper. This information indicates three (3) publication dates. Staff s notice to newspaper closest to the job site for advertisement for three (3) consecutive weeks. posts notice in three (3) conspicuous places on the job site. notifies when the total and final amount has been paid. Section 3i: Contractor's Affidavit The purpose of a Contractor's Affidavit is to insure that payment has been made on all claims for labor and materials used in the construction of a public structure. In all formal construction contracts entered into by any person or persons with the State, no final payment will be made unless and until the person or persons have filed with the State a Page 26