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Home My WebLink About06. Approve proposed revisions to Board Policy No. BP 035 - ProcurementO��ENTRAL S. MEETING DATE: JANUARY9, 2025 BOARD OF DIRECTORS POSITION PAPER Page 1 of 8 Item 6. SUBJECT: APPROVE PROPOSED REVISIONS TO BOARD POLICY NO. BP 035 - PROCUREMENT SUBMITTED BY: INITIATING DEPARTMENT: KATIE YOUNG, SECRETARY OF THE SECRETARYOF THE DISTRICT DISTRICT REVIEWED BY: KEVIN MIZUNO, FINANCE MANAGER PHILIP LEIBER, DEPUTYGM -ADMINISTRATION Roger S. Bailey General Manager ISSUE Revisions to Board policies require review and approval of the Board of Directors (Board). BACKGROUND Several changes are being proposed to BP 035 — Procurement, as explained below: Following a comprehensive and collaborative internal review of this policy, the following changes are being proposed to BP 035: • Include a reference to district internal purchasing policies and procedures in addition to laws and regulations. A reference to policies and procedures is also being added to the surplus property deposition objective. • Elaborate on the former "Be transparent" policy objective. • Remove the reference to good business practices and district policies and procedures as it is redundant with the first bullet. • Make updates to reflect the purchasing division's consolidation into the finance division two years ago with the materials services function continuing to report to the administration department head (Deputy General Manager). January 9, 2025 Special Board Meeting Agenda Packet - Page 27 of 93 Page 2 of 8 Clarify language to properly reflect that the capital division's procurement authority over -extends over all public works -type procurements. I nclude a new section for "reporting requirements" to reflect prior Board/Committee quarterly and annual reporting directives which staff has and continues to comply with to solidify basis for this requirement. Update Exhibit A for the following: • Clarify that the "professional services" category also includes "Technical" and "engineering" consulting services. • Include "construction" in the definition of District Projects for improved clarity and transparency. • Update the UPCCAA solicitation thresholds to provisions of Assembly Bill (AB) 1292 taking effect January 1, 2025. Following feedback from the capital projects, planning & development, and other key stakeholder divisions, increase solicitation thresholds for professional/technical/engineering services to support business operations in consideration of operational efficiency as well as inflationary impacts on proposals. ALTERNATIVES/CONSIDERATIONS The Board may choose not to approve the proposed revisions to Board Policy BP 035, Procurement and/or direct staff to make additional revisions to the policy. FINANCIAL IMPACTS None. COMMITTEE RECOMMENDATION The Administration Committee reviewed this matter at its meeting on December 3, 2024 and recommended approval. RECOMMENDED BOARD ACTION Approve proposed revisions to Board Policy BP 035 — Procurement. Strategic Plan re -In GOAL FOUR: Governance and Fiscal Responsibility Strategy 1 - Promote and uphold ethical behavior, openness, and accessibility, Strategy 3 - Maintain financial stability and sustainability ATTACHMENTS: 1. Updated BP 035 - Procurement (Redlined) January 9, 2025 Special Board Meeting Agenda Packet - Page 28 of 93 Number: BP 035 Authority: Board of Directors Revised: jaRuary 13, 2022December 19, 2024 Reviewed: February 20, 2023December 3, 2024 Initiating Dept./Div.: Administration / DUrGhacinn & MaterialsServo Finance, Engineering/Capital Projects BOARD POLICY PROCUREMENT PURPOSE i Page 3 of 8 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 including the District's Purchasing Policies and Procedures; 2. Provide a fair and equitable bidding environment that fosters competition from responsive and responsible prospective contractors and vendors; 3. Provide transparency to the public for procurement practices and transactions...; Be transpa Fent; e 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. Fellew neer! hGtiGes and adhere to a!1 DiStFiGt PGlriGies and nrnnorli roc• e 7-.6. Perform purchasing activities with the highest ethical standards; 8:7. Support the purchase of environmentally sustainable products and services that minimize environmental impacts to the extent practicable and cost effective; 8. Manage inventory in a fiscally responsible manner; and 4-0-.9. Dispose of surplus, damaged, scrap, excess and obsolete material, equipment and supplies efficiently and economically in accordance with District policies and procedures; and January 9, 2025 Special Board Meeting Agenda Packet - Page 29 of 93 Page 4 of 8 Number: BP 035 PROCUREMENT Page 2 of 6 44-.10. Establish and MmaintainlVlaiRtaiR provisions for compliance with the Uniform Public Construction Cost Accounting Act (UPCCAA)„ as set forth in Exhibit B. PROCUREMENT AUTHORITY The P irnhasinn and Materials Servinec Finance Division is the centralized procurement authority to contract for goods and services, including maintenance and professional 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 Materials Services functionWarehouse Do vicien eroanozatiena4y, maunder the purview of the Deputy General Manager; - - Administration is authorized to act as an agent of the District for the procurement of stocked inventory requirements and non -stocked inventory goods. but shall have the came a ,therity for nron, ,rement of StOGked cleeds as provided above-. The Capital Projects Division is authorized and responsible to raGt-for contracting for public works/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, the California Government Code, and the California Public Contract Code„ evnent for routine maintenance and other corvine nontraGtc (inrlurlinn SerwiGes FinanGe Doyosien 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. REPORTING REQUIREMENTS To enhance transparency over the District's procurements, the following periodic reports should be delivered to the Board or Committee at specified intervals: • General Manager Authorized Contracts and Agreements - On a quarterly basis, any ^enc„Itin,-, PremUrementcprofessional agreements (Professional Consulting, Technical Consulting, and Professional Engineering) executed above $50,000 but below $200,000 (including revisions) are required to be reported via a General Manager Written Announcement to the Board. This quarterly report shall also include aublic works/construction contracts executed within the January 9, 2025 Special Board Meeting Agenda Packet - Page 30 of 93 Page 5 of 8 Number: BP 035 PROCUREMENT Page 3 of 6 informal UPCCAA limits (above $75,000 but below u'FA49T-$220,000, including revisions). • Long-term Contracts — It is a public procurement best practice that limits be placed on the duration of contracts to ensure contracts for goods and services are periodically subject to competitive bidding. Accordingly, on an annual basis, staff shall provide the Board Finance Committee with a listing of contracts and blanket purchase orders that have not been competitively bid in over five (5) years that have an annual spend greater than $25,000 with an explanation justifying this treatment. RESPONSIBILITIES The General Manager, PLIrGhasing and MaterialsServiGs-Finance Manager, Capital Projects Division Manager, DiFeGtGF of FiRaRGe ani Deputy General Manager - Administration, and the Deputy General Manager- Di�efEngineering & Operationsand TeGh^iGal SeFVOGe are authorized to establish and implement internal administrative procedures to support this Policy. [Original retained by the Secretary of the District] January 9, 2025 Special Board Meeting Agenda Packet - Page 31 of 93 Number: BP 035 PROCUREMENT Page 4 of 6 EXHIBIT A Minimum Solicitation Requirements' Page 6 of 8 '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 This category includes software -as -a -service (SAAS) and other subscription -based information technology services. Regardless of fund, whether Running Expense (O&M), Sewer Construction, of Self -Insurance. January 9, 2025 Special Board Meeting Agenda Packet - Page 32 of 93 PROCUREMENT CATEGORY Il. .n4 Drojen4c/ Professional -/ Technical Public Works / / Engineering Construction Value Goods and Servicess Consulting Servicess District -Projects11 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 <_ $6875,0002 Minimum of Three (3) Quotes as possible > $6075,0002 and Informal Bidding <_ $288220,0002 Procedure (UPCCAA) > $280220,0002 Formal Bid < $3050,000 Informal Selection4 > $3850,000 and Informal Solicitations $4-08150,000 > $4-08150,00011 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 This category includes software -as -a -service (SAAS) and other subscription -based information technology services. Regardless of fund, whether Running Expense (O&M), Sewer Construction, of Self -Insurance. January 9, 2025 Special Board Meeting Agenda Packet - Page 32 of 93 Number: BP 035 PROCUREMENT Page 5 of 6 EXHIBIT B Informal Bid Requirements (Formerly Contained in BP 036) Page 7 of 8 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 District 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 $ ,000' 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 $ 000' and less than $2W220,000' 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 $2-W220,0001. C. District Projects of more than $" 0001 must be let to contract by the formal bidding procedures set forth in the PCC. 4. Notice to Contractors Inviting Informal Bids a. The District 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. b. Alternatively, the District may elect to email a notice inviting informal bids or quotes to the applicable construction trade journals specified in PCC §22036 or the District's electronic bid management system (i.e., PlanetBids, Periscope, etc.). These limits shall be raised automatically, concurrently with changes to the UPCCAA. January 9, 2025 Special Board Meeting Agenda Packet - Page 33 of 93 Page 8 of 8 Number: BP 035 PROCUREMENT Page 6 of 6 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, the District 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, the District 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 the District 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. January 9, 2025 Special Board Meeting Agenda Packet - Page 34 of 93