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HomeMy WebLinkAbout04.a. Review draft Position Paper to adopt proposed revisions to amend and retitle Board Policy No. BP 035 - Purchasing, and retire Board Polity No. BP 036 - Informal BiddingPage 1 of 12 Item 4.a. DCENTRALSAN MEETING DATE: DECEMBER 14, 2021 BOARD OF DIRECTORS POSITION PAPER DRAFT SUBJECT: REVIEW DRAFT POSITION PAPER TO ADOPT PROPOSED REVISIONS TO AMEND AND RETITLE BOARD POLICY NO. BP 035 - PURCHASING, AND RETIRE BOARD POLICY NO. BP 036 -INFORMAL BIDDING SUBMITTED BY: INITIATING DEPARTMENT: STEPHANIE KING, PURCHASING & MATERIAL SERVICES MANAGER PHILIP LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION ADMINISTRATION -PURCHASING AND MATERIALS SERVICES REVIEWED BY: JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES ISSUE Revisions to Board policies require Board approval. Proposed revisions and a retitle to Board Policy No. BP 035 - Procurement, would incorporate informal bidding procedures that were previously included in Board Policy No. BP 036 -Informal Bidding. BP 036 would be accordingly retired. BACKGROUND On August 16, 2018, the Board adopted Board Policy No. BP 035 — Purchasing. The policy was again reviewed by the Administration Committee on October 22, 2019 and approved by the Board on November 7, 2019. On November3, 2021, BP 035 and BP 036 Informal Bidding Policy were brought forward for the biennial review to the Administration Committee, without proposed changes by staff. The Committee provided feedback that it would be of value to combine the two policies, and to clarify whether the columns of information in Exhibit A related to Operating & Maintenance Expenditures or Sewer Construction fund expenditures. These two matters have now been addressed in the attached BP 035, with the name changed from "Purchasing Policy" to "Procurement Policy" to reflect the fact that policy has matters that are administered by not only the Purchasing & Material Services Division, but also the Capital Projects Division. There are no substantive changes proposed to the policy beyond merging the two previously separate policies. December 14, 2021 Special ADMIN Committee Meeting Agenda Packet - Page 4 of 38 Page 2 of 12 ALTERNATIVES/CONSIDERATIONS The Board could choose not to adopt the proposed revisions to BP 035 which incorporate the provisions of BP 036 Informal Bidding. Doing so would provide for continued separate policies on these matters. Staff believe combining the separate policies under a broader "Procurement Policy" heading is an appropriate consolidation and simplification. FINANCIAL IMPACTS There are no fiscal impacts anticipated from adopting the proposed revisions. COMMITTEE RECOMMENDATION Staff presented these proposed revisions to the Administration Committee on December 14, 2021 [and the Committee recommended Board approval]. RECOMMENDED BOARD ACTION Take the following actions: 1. Amend and retitle Board Policy No. BP 035 - Purchasing to instead reflect BP 035 - Procurement, effective immediately. 2. Eliminate BP 036 - Informal Bidding Policy as the matters covered in that policy have been incorporated into the revised BP 035 policy. Strategic Plan Tie -In GOAL THREE: Fiscal Responsibility Strategy 2 — Ensure integrity and transparency in financial management ATTACHMENTS: 1. Proposed Amendment to BP 035 (redline version) 2. Proposed new BP 035 - Procurement (clean version) December 14, 2021 Special ADMIN Committee Meeting Agenda Packet - Page 5 of 38 Page 3 of 12 Attachment 1 Number: BP 035 Related Admin. Procedure: Pending Authority: Board of Directors Adopted: August 16, 2018 Revised: 1%-�19 01/13/22 Reviewed: 12/14/21 CENTRALSAN Initiating Dept./Div.: Administration / Purchasing & Materials Services, Engineering/Capital Projects BOARD POLICY PURCHASINGPROCUREIVIENT PURPOSE To receive the best value for materials, supplies, equipment, services and public works projects, and to promote free and open competition through a fair and equitable selection process that complies with applicable federal, state and local laws and regulations. POLICY Comply with applicable federal, state and local procurement laws and regulations; 2. Provide a fair and equitable bidding environment that fosters competition from responsive and responsible prospective contractors and vendors; 3. Be transparent; 4. Provide a timely, effective and consistent method of procurement of goods and services; 5. Provide best overall value for the supply of goods and services to support the needs of District departments and divisions; 6. Follow good business practices and adhere to all District policies and procedures; 7. Perform purchasing activities with the highest ethical standards; 8. Support the purchase of environmentally sustainable products and services that minimize environmental impacts to the extent practicable and cost effective; 9. Manage inventory in a fiscally responsible manner; and 10. Dispose of surplus, damaged, scrap, excess and obsolete material, equipment and supplies efficiently and economically. December 14, 2021 Special ADMIN Committee Meeting Agenda Packet - Page 6 of 38 Page 4 of 12 Number: BP 035 PURCHASING Page 2of5 44.11. Establish and Maintain provisions for compliance with the Uniform Public Construction Cost Accounting Act, as set forth in Exhibit B. PU PROCUREMENT AUTHORITY The Purchasing and Materials Services Division is the centralized procurement authority to contract for goods and services on behalf of the District in accordance with Chapter 2.36, Section 2.36.010 of the Central Contra Costa Sanitary District Code. The Capital Projects Division is responsible to contract for construction projects (District Projects), whether informally bid, or formally bid, in accordance with Chapter 2.36, Section 2.36.010B of the Central Contra Costa Sanitary District Code, except for service contracts (including professional service contracts), contracted through the Purchasing and Materials Services Division. Refer to Board Policy No. BP 037 — Delegation of Authority to General Manager for specific authority limits regarding contracts for goods and services and construction/District projects. SOLICITATION REQUIREMENTS The minimum solicitation requirements for procurement of goods and services, -and professional consulting services, and construction/District Projects are set forth in Exhibit A. Exhibit B contains provisions for informal bids of construction/District Projects. RESPONSIBILITIES The General Manager, and Purchasing and Materials Services Manager, Capital Projects Division Manager, Director of Finance and Administration, and the Director of Engineering and Technical Services -are authorized to establish and implement procedures to support this Policy. [Original retained by the Secretary of the District] December 14, 2021 Special ADMIN Committee Meeting Agenda Packet - Page 7 of 38 Page 5 of 12 Number: BP 035 PURCHASING Page 3 of 5 EXHIBIT A Minimum Solicitation Requirements' PROCUREMENT CATEGORY District Projects/ Professional Consulting Public Works Value Goods and Servicess Servicess Projects' Competitive Quotes Competitive Quotes <_ $5,000 Not Required Not Required (best judgement (best judgement purchase) purchase) Minimum of Minimum of > $5,000 and <_ $15,000 Two (2) Quotes Two (2) Quotes as possible as possible Minimum of > $15,000 Three (3) Quotes3 aspossible) > $15,000 and <_ $60'0002 Minimum of Three (3) Quotes as possible. > $60'0002 and Informal Bidding <_ $200,0002 Procedure (UPCCAA) > $200,0002 Formal Bid < $30,000 IF Informal Selection4 > $30,000 and Informal Solicitations :5 $100,000 > $100,000 Formal Request for Proposals 'The value limits are reflective of the total anticipated amount for the entire term of the contract and apply to all procurement situations noted in the table above. The value thresholds and categories are further specified in the District's Purchasing Procedures. Projects may not be split into smaller projects for the purpose of circumventing any of the limits in the table above. 2 These limits shall be raised concurrently with changes to Public Contract Codes 22000-22050 under the Uniform Public Construction Cost Accounting Act (UPCCAA). 3 Purchasing reserves the discretion to utilize a more formal solicitation process when beneficial to the District. 4 Informal Selection: The Project Manager in charge of the project shall recommend a consultant taking into account (a) the nature of the project, (b) the geographic proximity of the consultant to the project, (c) the capability of the consultant to produce the required service within a reasonable time, (d) past performance, and (e) ability to meet project budget requirements. Appropriate internal approvals of the recommendation will be obtained prior to award. s Informal Solicitation: The Project Manager shall conduct an informal solicitation of telephone and letter proposals from a limited number of firms and recommend a consultant based on their qualifications in relation to factors (a)-(e) noted above. Appropriate internal approvals of the recommendation will be obtained prior to award. 6 Regardless of fund, whether Running Expense (O&M), Sewer Construction, of Self -Insurance. December 14, 2021 Special ADMIN Committee Meeting Agenda Packet - Page 8 of 38 Page 6 of 12 Number: BP 035 PURCHASING Page 4 of 5 EXHIBIT B Informal Bid Requirements (Formerly Contained in BP 036) The following provisions of the Purchasing Policy set forth Central Contra Costa Sanitary District (Central San) Board Policy on informal bidding pursuant to the Uniform Public Construction Cost Accounting Act (UPCCAA) (California Public Contract Code (PCC) §§22000-22045): District Projects, as defined by PCC §20801, may be let to contract by the informal procedures as set forth in the UPCCAA. 2. The Central San Board delegates the authority to award such informal bid contracts to the General Manager or his designee. 3. UPCCAA Bidding Thresholds for District Projects a. District Projects of $60,0001 or less may be performed by the employees of the District by force account, negotiated contract, purchase order, or competitive quotes in accordance with the UPCCAA. b. District Projects of greater than $60,0001 and less than $200,0001 may be let to contract by informal bidding procedures as set forth in the UPCCAA. 1) If a District Project was let to contract by informal bidding under the UPCCAA procedures, then Board approval is required for a change order to the public project that would cause the total cost of the project to exceed $200,0001. c. District Projects of more than $200,0001 must be let to contract by the formal bidding procedures set forth in the PCC. 4. Notice to Contractors Inviting Informal Bids a. Central San will maintain a list of qualified contractors, identified by categories of work. Contractors on the list for the category of work being solicited will be emailed a notice inviting informal bids or quotes at least 10 calendar days before bids are due. These limits shall be raised automatically, concurrently with changes to the UPCCAA. December 14, 2021 Special ADMIN Committee Meeting Agenda Packet - Page 9 of 38 Page 7 of 12 Number: BP 035 PURCHASING Page 5of5 b. Alternatively, Central San may elect to email a notice inviting informal bids or quotes to the applicable construction trade journals specified in PCC §22036 or Central San's electronic bid management system (i.e., PlanetBids). c. The notice inviting informal bids must describe the project in general terms and how to obtain more detailed information about the project and state the time and place for the submission of bids. 5. Rejection of Bids a. In its discretion, Central San may reject any bids by providing written notice pursuant to the terms of PCC §22038. b. If a contract is awarded, it must be awarded to the lowest responsible bidder. If two or more bids are the same and the lowest, Central San may accept the one it chooses. c. If no bids are received through the formal or informal procedure, the project may be performed by the employees of Central San by force account or negotiated contract without further complying with the UPCCAA. 6. Prohibition on Splitting Projects to Evade Bidding Thresholds District Projects shall not be split or separated into smaller work orders or projects for the purpose of evading the provisions of the UPCCAA requiring work to be done by contract after formal or informal competitive bidding. December 14, 2021 Special ADMIN Committee Meeting Agenda Packet - Page 10 of 38 Page 8 of 12 Attachment 2 Number: BP 035 Related Admin. Procedure: Pending Authority: Board of Directors Adopted: August 16, 2018 Revised: 01 /13/22 i Reviewed: 12/14/21 ' ' Initiating Dept./Div.: Administration / Purchasing & Materials Services, Engineering/Capital Projects BOARD POLICY PROCUREMENT PURPOSE To receive the best value for materials, supplies, equipment, services and public works projects, and to promote free and open competition through a fair and equitable selection process that complies with applicable federal, state and local laws and regulations. POLICY Comply with applicable federal, state and local procurement laws and regulations; 2. Provide a fair and equitable bidding environment that fosters competition from responsive and responsible prospective contractors and vendors; 3. Be transparent; 4. Provide a timely, effective and consistent method of procurement of goods and services; 5. Provide best overall value for the supply of goods and services to support the needs of District departments and divisions; 6. Follow good business practices and adhere to all District policies and procedures; 7. Perform purchasing activities with the highest ethical standards; 8. Support the purchase of environmentally sustainable products and services that minimize environmental impacts to the extent practicable and cost effective; 9. Manage inventory in a fiscally responsible manner; and 10. Dispose of surplus, damaged, scrap, excess and obsolete material, equipment and supplies efficiently and economically. December 14, 2021 Special ADMIN Committee Meeting Agenda Packet - Page 11 of 38 Page 9 of 12 Number: BP 035 PURCHASING Page 2of5 11. Establish and Maintain provisions for compliance with the Uniform Public Construction Cost Accounting Act, as set forth in Exhibit B. PROCUREMENT AUTHORITY The Purchasing and Materials Services Division is the centralized procurement authority to contract for goods and services on behalf of the District in accordance with Chapter 2.36, Section 2.36.010 of the Central Contra Costa Sanitary District Code. The Capital Projects Division is responsible to contract for construction projects (District Projects), whether informally bid, or formally bid, in accordance with Chapter 2.36, Section 2.36.010B of the Central Contra Costa Sanitary District Code, except for service contracts (including professional service contracts), contracted through the Purchasing and Materials Services Division. Refer to Board Policy No. BP 037 — Delegation of Authority to General Manager for specific authority limits regarding contracts for goods and services and construction/District projects. SOLICITATION REQUIREMENTS The minimum solicitation requirements for procurement of goods and services, professional consulting services, and construction/District Projects are set forth in Exhibit A. Exhibit B contains provisions for informal bids of construction/District Projects. RESPONSIBILITIES The General Manager, Purchasing and Materials Services Manager, Capital Projects Division Manager, Director of Finance and Administration, and the Director of Engineering and Technical Services are authorized to establish and implement procedures to support this Policy. [Original retained by the Secretary of the District] December 14, 2021 Special ADMIN Committee Meeting Agenda Packet - Page 12 of 38 Page 10 of 12 Number: BP 035 PURCHASING Page 3 of 5 EXHIBIT A Minimum Solicitation Requirements' PROCUREMENT CATEGORY District Projects/ Professional Consulting Public Works Value Goods and Servicess Servicess Projects' Competitive Quotes Competitive Quotes <_ $5,000 Not Required Not Required (best judgement (best judgement purchase) purchase) Minimum of Minimum of > $5,000 and <_ $15,000 Two (2) Quotes Two (2) Quotes as possible as possible Minimum of > $15,000 Three (3) Quotes3 aspossible) > $15,000 and <_ $60,0002 Minimum of Three (3) Quotes as ossible > $60'0002 and Informal Bidding <_ $200,0002 Procedure (UPCCAA) > $200,0002 Formal Bid < $30,000 IF Informal Selection4 > $30,000 and Informal Solicitations < $100,000 > $100,000 Formal Request for Proposals 'The value limits are reflective of the total anticipated amount for the entire term of the contract and apply to all procurement situations noted in the table above. The value thresholds and categories are further specified in the District's Purchasing Procedures. Projects may not be split into smaller projects for the purpose of circumventing any of the limits in the table above. 2 These limits shall be raised concurrently with changes to Public Contract Codes 22000-22050 under the Uniform Public Construction Cost Accounting Act (UPCCAA). 3 Purchasing reserves the discretion to utilize a more formal solicitation process when beneficial to the District. 4 Informal Selection: The Project Manager in charge of the project shall recommend a consultant taking into account (a) the nature of the project, (b) the geographic proximity of the consultant to the project, (c) the capability of the consultant to produce the required service within a reasonable time, (d) past performance, and (e) ability to meet project budget requirements. Appropriate internal approvals of the recommendation will be obtained prior to award. s Informal Solicitation: The Project Manager shall conduct an informal solicitation of telephone and letter proposals from a limited number of firms and recommend a consultant based on their qualifications in relation to factors (a)-(e) noted above. Appropriate internal approvals of the recommendation will be obtained prior to award. 6 Regardless of fund, whether Running Expense (O&M), Sewer Construction, of Self -Insurance. December 14, 2021 Special ADMIN Committee Meeting Agenda Packet - Page 13 of 38 Page 11 of 12 Number: BP 035 PURCHASING Page 4 of 5 EXHIBIT B Informal Bid Requirements (Formerly Contained in BP 036) The following provisions of the Purchasing Policy set forth Central Contra Costa Sanitary District (Central San) Board Policy on informal bidding pursuant to the Uniform Public Construction Cost Accounting Act (UPCCAA) (California Public Contract Code (PCC) §§22000-22045): District Projects, as defined by PCC §20801, may be let to contract by the informal procedures as set forth in the UPCCAA. 2. The Central San Board delegates the authority to award such informal bid contracts to the General Manager or his designee. 3. UPCCAA Bidding Thresholds for District Projects a. District Projects of $60,0001 or less may be performed by the employees of the District by force account, negotiated contract, purchase order, or competitive quotes in accordance with the UPCCAA. b. District Projects of greater than $60,0001 and less than $200,0001 may be let to contract by informal bidding procedures as set forth in the UPCCAA. 1) If a District Project was let to contract by informal bidding under the UPCCAA procedures, then Board approval is required for a change order to the public project that would cause the total cost of the project to exceed $200,0001. c. District Projects of more than $200,0001 must be let to contract by the formal bidding procedures set forth in the PCC. 4. Notice to Contractors Inviting Informal Bids a. Central San will maintain a list of qualified contractors, identified by categories of work. Contractors on the list for the category of work being solicited will be emailed a notice inviting informal bids or quotes at least 10 calendar days before bids are due. These limits shall be raised automatically, concurrently with changes to the UPCCAA. December 14, 2021 Special ADMIN Committee Meeting Agenda Packet - Page 14 of 38 Page 12 of 12 Number: BP 035 PURCHASING Page 5 of 5 b. Alternatively, Central San may elect to email a notice inviting informal bids or quotes to the applicable construction trade journals specified in PCC §22036 or Central San's electronic bid management system (i.e., PlanetBids). c. The notice inviting informal bids must describe the project in general terms and how to obtain more detailed information about the project and state the time and place for the submission of bids. 5. Rejection of Bids a. In its discretion, Central San may reject any bids by providing written notice pursuant to the terms of PCC §22038. b. If a contract is awarded, it must be awarded to the lowest responsible bidder. If two or more bids are the same and the lowest, Central San may accept the one it chooses. c. If no bids are received through the formal or informal procedure, the project may be performed by the employees of Central San by force account or negotiated contract without further complying with the UPCCAA. 6. Prohibition on Splitting Projects to Evade Bidding Thresholds District Projects shall not be split or separated into smaller work orders or projects for the purpose of evading the provisions of the UPCCAA requiring work to be done by contract after formal or informal competitive bidding. December 14, 2021 Special ADMIN Committee Meeting Agenda Packet - Page 15 of 38