HomeMy Public PortalAbout010-2015 - RVT for procurment policy updateCITY OF RICHMOND, INDIANA
BOARD OF PUBLIC WORKS AND SAFETY
RESOLUTION NO. 10 -2015
A RESOLUTION APPROVING AND UPDATING THE
ROSEVIEW TRANSIT PROCUREMENT POLICY
WHEREAS, In accordance with the federal Americans with Disabilities Act (ADA) as well as
Indiana Department of Transportation (INDOT) requirements, the City of Richmond
utilizes certain policies and procedures in connection with certain procurement
procedures in order to continue to remain in compliance with the ADA and in order
to continue to receive federal funding; and
WHEREAS, Said policies and procedures are required to be updated by the City from time to time
and said procurement procedures are attached hereto as Exhibit A; and
WHEREAS, It is in the best interest of the City of Richmond that the Board of Public Works and
Safety approve the policies and procedures set forth in Exhibit A in order that the
City of Richmond may continue to remain in compliance with the ADA and INDOT
requirements.
NOW THEREFORE, BE IT RESOLVED by the Board of Public Works and Safety of the City of
Richmond, Indiana, that said Board hereby affirms, approves, and adopts the updated procurement
policies and procedures attached as Exhibit A.
Passed and adopted this of %' , , 2015, by the Board of Public Works
and Safety of the City of Richmond, Indiana.
BOARD OF PUBLIC WORKS AND SAFETY
Approved:
Sally Au on, May 44
Vicki Robinson, President
Rose View Transit System
Policy Manual
50 North 5a' Street, Richmond, IN 47374
SUBJECT: PROCUREMENT SECTION:
EFFECTIVE DATE: April 2, 2015 REPLACES: March 9, 2009
APPROVED BY: Board of Public Works &
Engineering
APPROVAL DATE: April 2, 2015
DIRECTIVE:
To establish general guidelines for the procurement of goods or services.
DEFINITIONS:
Most goods and/or services to be procured can be classified into one of six major categories
which are especially useful in selecting the most appropriate procurement method or type. Each
of these is described below. In the event that certain goods and/or services to be procured do not
conveniently fit into the categories below, or the category simply does not appear to have
reasonable procurement procedures for the goods and/or services desired, further advisory
assistance shall be obtained. The classification system and procurement procedures presented
herein are only intended as useful guidelines and shall be applied with appropriate discretion.
Construction — Construction is intended to mean construction, rehabilitation, improvement,
enlargement, installation, demolition, alteration, repair, painting, decorating, or any similar
activity as regards to any public improvement, structure, or fixed asset.
Equipment and Supplies — Equipment and supplies are intended to mean the purchase (or lease)
of any equipment or supplies within the conventional meaning of equipment or supplies. It is
also intended to mean the repair, rehabilitation, installation or transport of equipment or supplies.
(The repair, installation or other procurement activities related to major capital equipment, or
fixed assets, however, might need to be evaluated as to whether or not it involves requirements
regarding prevailing wages for construction, as also would any construction materials, equipment
or supplies.)
Professional Activities, Product Oriented — Professional activities are intended to include the
services of accountants, architects, attorneys, physicians, professional engineers or surveyors,
appraisers, planning consultants or similar persons, or organizations. Product oriented
professional activities are intended to mean services in which a somewhat standardized, well -
defined product, such as plans and specifications for the construction of a storage building, is
desired, or the appraisal of the fair market value of a certain parcel of real estate based on
generally accepted appraisal standards. A product oriented professional service is one in which
the service can be well defined at or before the time a service contract is executed with little need
for further communication between the parties involved.
Professional Activities, Service Oriented — Service oriented professional activities are intended
to mean professional services, as are generally described above, which cannot be well defined at
or before the time a service contract is executed and in which the quality of the outcome depends
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significantly on frequent interaction between the parties involved. Examples might include legal
advisory services where the full nature of the legal problems is not readily apparent. Service
oriented professional activities might also include the preparation of plans and specifications for
the construction (or rehabilitation) of a building or other public improvement, but only where the
quality of the outcome depends significantly on the architect or engineer working closely with
his/her client on a variety of needs or problems which can only become apparent as different
stages of the project go forward. In each of these cases it is the service which is to be provided
before, during and/or after any product is prepared which is most important.
Sole Source — Sole source procurement of goods or services is intended to mean goods or
services which by their very nature can only be reasonably provided by one person, company or
organization. This is intended most frequently to mean suppliers of replacement or supplemental
parts for products or equipment owned or leased by the local governmental jurisdiction where the
source is limited to s single supplier (within reasonable proximity).
Emergencies — Emergency types of procurement could include any of the above which are
needed in such haste that the normal procedures are not possible and for which the estimated cost
is less than $25,000. In such case the Executive Director with money already appropriated or to
be appropriated must make a determination that a real and present emergency exists and such
determination and the reasons therefore must be entered in the minutes of the proceedings of the
Board of Public Works & Safety meeting. The $25,000 limit does not apply when there is actual
physical disaster to structures.
PROCEDURE:
The procurement methods or types as described below are intended as general guidelines for
procurement and are not expected to always be 100% suitable without appropriate refinements or
exceptions. In any instance, if it is determined that these guidelines do not fully meet the
provisions of IC. 5 -22 -9 Competitive Bidding, IC.5 -22 -8 Small Purchases, IC. 5 -3 -1 Publication
on Notices and IC. 5 -22 -9 Request for Proposal of the Indiana Code, the Indiana Revised Code
shall prevail unless local policy is more stringent. Likewise, it is always necessary to determine
all additional provisions which must be met.
The primary purpose of these guidelines is to provide reasonable and normally consistent
procedures for selecting a method of procurement for goods and services which are not covered
by the Indiana Code, with the purpose of providing maximum open and free competition in an
administratively practical and efficient manner.
Competitive, Advertised Sealed Bids — In this method of procurement, Rose ViewTransit will
follow all the requirements of the public bidding procedures of the Indiana Code as it applies to
cities.
Competitive Negotiations, Requests for Proposals (RFP) — RFPs are intended to be used
primarily to procure for professional services where the service can be well defined before the
time a service contract is to be executed and such service involves the preparation of a product
which in and of itself is more important than the process or service which was used to result in
the product. The RFP procurement method places a strong emphasis on obtaining a contract at
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the lowest possible cost although it still allows moderate consideration to be given to other
factors and it still allows some negotiation. It is very important in requests- for - proposals to have
a well defined, itemized scope of services to which prospective proposer can response.
The request for proposal process, at a minimum, must include all of the following:
✓ A formal RFP packet which contains all information necessary for a prospective proposer to
submit a competitive proposal, especially including a well - defined, itemized scope of
services and clear statements regarding other expectations from the professional service
provider.
✓ The proposal and all associated costs must be in separate packets.
✓ A deadline for submission of a written price quotation and other information and reasonable
procedures to assure confidentiality of the quote until the deadline.
✓ A list of potential service providers who were contacted and invited to submit proposals and,
if not otherwise readily apparent, a statement explaining why such persons /firms were
chosen. Normally 3 -5 persons /firms shall be contacted. If more than 5 persons /firms are to
be considered they will first be screened to the 3 to 5 number on the basis of a request -for-
qualifications procurement procedure.
✓ A resolution by the Governing Board awarding the contract to the selected service provider
which states the names and price quotations of all proposals received, the results of any
negotiations which were conducted, and an explanation of why the contract was awarded to
anyone who did not submit the lowest proposal.
Competitive Nesotiations, Requests for Qualifications (RFQ) — Requests for qualifications is
intended to be used primarily to procure for professional services where the service cannot be
well defined before the time a service contract is to be executed and where it is the service which
is to be provided before, during, and/or after any product is prepared which is most important.
The RFQ procurement method places a strong emphasis on the qualifications of the service
provider and allows maximum flexibility in negotiation of a fair basis for cost/compensation. It
is very important in RFQs to allow for a wide variety of selection criteria and subjective
judgment. Final selection shall normally be made directly by the Transit Director rather than
delegating such responsibility to anyone else and the Governing Board members shall make a
strong effort to be aware of the important factors involved. Procurement under the RFQ method
may be conducted on an as needed basis, once per year, or once every two or three years.
Qualifications shall be solicited by public advertising or by mail, or both, but in any case the
Transit Director shall retain a file of all qualifications (and letters of interest) received, whether
solicited or unsolicited, for a minimum of three years from which to consider possible service
providers.
The request for qualifications process, at a minimum, must include all of the following:
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✓ An invitation of RFQ which clearly states the professional services being or to be considered
and the process necessary to submit such qualifications or other information, published
and/or distributed to a minimum of three of each type of service provider at least once every
three years.
✓ A public file containing all such qualifications and other information received, whether
solicited or unsolicited, in the past three or more years.
✓ A list of potential service providers who were contacted (if public advertising was not used)
and invited to submit qualifications and, if not otherwise readily apparent, a statement as to
why such persons /firms were chosen.
✓ A Governing Board awarding the contract to the selected service provider, stating the
primary reason or reasons such person/firm was selected and how the agreed upon basis for
compensation was determined.
Small Purchase Procedures, Request- for- Ouotes, Formal — Formal requests- for - quotes is
intended to represent a procurement process which are fairly similar to advertised, sealed bids
but which allows moderate flexibility. The advantages of such flexibility are intended to allow
some savings in time, to allow "targeting" of certain groups of contractors to achieve other
worthwhile benefits (e.g. small businesses, minority businesses, or local businesses), and/or to
allow the elimination of certain ORC required documents or procedures (e.g. performance
bonds) where such items are not really needed.
The formal request for quotes process, at a minimum, must include all of the following:
✓ A formal, written quote packet setting forth all plans, specifications and contract documents.
✓ A deadline for submission of a written price quotation and reasonable procedures to assure
confidentiality of the price quotation until after the deadline.
✓ A list of contractors who were contacted and invited to submit price quotations and, if not
otherwise readily apparent, a statement explaining why such contractors were chosen.
Normally at least 3 contractors shall be contacted.
✓ A written statement from the specific person named above that he /she has completed the
procurement process, summarizing any negotiations which were conducted with any bidder
after all quotes were received, and recommending to whom the contract should be awarded
and why.
✓ The Board of Public Works & Safety will award the bid/contract to the selected contractor,
stating the names and price quotations of all contractors who submitted same, stating the
results of any negotiations which were conducted to decrease the price quotations or change
other terms of the proposed contract after the original quotes were received, and explaining
why the bid/contract was awarded to anyone who was not the lowest bidder. No bid/contract
shall be awarded if the price /quote exceeds $25,000.
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Small Purchase Procedures, Request for Quotes, Informal — Informal- requests- for - quotes is
intended to represent a procurement process which allows even more flexibility than the formal
requests- for - quotes process but still assures a reasonable amount of open and free competition.
The informal request for proposal process, at a minimum, must include all of the following:
✓ A written, informal quote packet to include all plans and specifications which are needed to
perform the contract plus an outline of all additional pertinent information about the intended
quote process and contract. All such information shall be communicated to any prospective
bidder. In very "simple" procurement activities, all information may be provided verbally to
prospective bidders.
✓ A list of contractors who were contacted and invited to submit price quotations and, if not
otherwise readily apparent, a statement explaining why such contractors were chosen.
Normally at least 3 contractors shall be contacted.
✓ A written statement from a person informally authorized by the city to conduct this process
indicating that he /she has completed an informal request for quotes process as described
herein and recommending to whom the contract should be awarded and why.
✓ A notice given by the Board of Public Works & Safety awarding the contract to the selected
contractor, explaining why the contract was awarded to anyone who was not the lowest
bidder, and indicating why it was expected that the cost would be less than $25,000 (except
in the latter case for sole source procurements).
Noncompetitive Neeotiations, Informal Procurement — Informal procurement procedures are
intended to consist of whatever procedures the Rose View Transit Provider deems reasonable for
the goods or services needed. If not otherwise described in the Resolution of the Board to enter
into the subject contract and approve a purchase order, a Memo -to -the -file will be prepared and
retained which explains how the contractor was selected and a reasonable price determined.
MICRO PURCHASES (Under $500.00)
The Rose View Transit Provider must ensure the budget is sufficient before the purchase is
made. Purchase under $500 can be made at the discretions of the Transit Director.
Micro purchases may be made without obtaining competitive quotes so long as the price is fair
and reasonable as evidenced by minimal supporting documentation (i.e. catalogue or price lists).
SMALL PURCHASES BEWTEEN $500.00- $25,000.00
The Board of Public Works & Safety must approve purchases over $500 with the exception of
payroll, fuel, and utility bills.
Purchases costing more than $500, but less than $25,000 will require at least three or more
quotations/bids and prior Board approval.
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In all small purchases, Rose View Transit shall solicit written quotes from a minimum of two
sources. When the vendor list involves multiple sources for a small purchase, purchases should
be equitably distributed among qualified suppliers in the local area
Verbal quotes shall be documented in writing by the Transit Director on a standard quotation
form. Quotation forms shall be part of the permanent file documentation for all small purchases.
Written quotations may be obtained electronically (e- mail), via facsimile, through the mail, or
obtained directly from the vendor. For each quote, either obtained verbally or in writing, the
following information will be obtained:
1. Name, address, telephone number
2. Description of the offered item(s)
3. Unit price and total price
4. Discount terms
5. Delivery terms
6. DBE information, if applicable
7. Person who provided the quote
8. Time and date of the quote
Where appropriate, an analysis shall be made of lease versus purchase to determine which would
be the most economical and practical.
For purchases of supplies and similar recurring items, if competitive bids have been received
within the last twelve month, each order does not need approvals if over $500.00. Indicate in
approval line bid dated on file.
The requesting supervisor must make every effort to obtain three quotes. In the event three
quotes cannot be obtained, the Transit Director must approve the sole quote.
The reason for selecting "lowest most responsive and responsible " quote must be documented in
writing.
Upon receipt of goods or service, the requesting supervisor receiving the goods validates
quantities and inspects merchandise. The requesting supervisor should make an effort to resolve
any discrepancies. Any discrepancies unresolved should be reported to the Transit Director for
further action.
The vendor may mail invoices directly to the Transit Office or to Accounts Payable. Payment
will only be made upon receipt of goods and through an invoice processes.
The Transit Director will prepare invoices to be paid and take them to the Finance Department
for payment.
The Transit Director will provide individual details of all purchases made by quotes or
procurement and report to Board.
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All procurement transactions shall be conducted in a manner that provides maximum open and
free competition within the constraints of efficient administration.
LARGE PURCHASES over $25,000
For purchases over $25,000 either competitive procurement methods which include sealed bids
(sometimes referred to as an "Invitation for Bid (IFB)) or competitive proposals (sometimes
referred to as a Request for Proposal (RFP)) will be used.
See Rose View Transit Procurement Plan for Details on how the bid process will be conducted.
All expenses incurred or obligated shall be supported by approved contracts, purchase orders,
requisitions, bill or other evidence of liability.
NOTE. The most stringent of the local policy or the Indiana Code will prevail. The Indiana Code requires
competitive procurements methods used for purchases over $25,000.
RESPONSIBILITIES:
Responsibilities shall be as defined above.
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