HomeMy Public PortalAbout2012_06_12_R061 Readopting the TOL Procurement PolicyThe Town of
]Leesburg,
Virginia
PRESENTED June 12, 2012
RESOLUTION NO. 2012 -061 ADOPTED June 12, 2012
A RESOLUTION: READOPTING THE TOWN OF LEESBURG PROCUREMENT
POLICY AND DELEGATING TO THE TOWN MANAGER THE
AUTHORITY TO IMPLEMENT THIS POLICY
WHEREAS, the Town Council originally adopted the Virginia Public Procurement Act
(VPPA), Code Sections 11 -35 through 11 -80, and the Leesburg Purchasing Policy Manual as the
Town's procurement policy in August 2000; and
WHEREAS, the VPPA has since been modified and re- codified in sections 2.2 -4300
through 2.2 -4377 of the Code of Virginia; and
WHEREAS, the VPPA allows the public body to develop and adopt certain
administrative policies and procedures for the purpose of clearly defining the procurement
processes for the Town of Leesburg; and
WHEREAS, Virginia Code Section 2.2 -4302 of the VPPA allows a public body to act by
and through its duly designated or authorized officers or employees; and
WHEREAS, this authority is consistent with the general powers and duties assigned to
the Town Manager in Section 4 -2.1, 4 -2.1:1 (e), (f) and (1) of the Town Charter.
THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia as
follows:
SECTION I. The Town Council hereby adopts the provisions of the VPPA, Virginia
Section 2.2 -4300 through 2.2 -4377 as the Procurement Policy of the Town of Leesburg.
-2-
A RESOLUTION: READOPTING THE TOWN OF LEESBURG PROCUREMENT
POLICY AND DELEGATING TO THE TOWN MANAGER THE
AUTHORITY TO IMPLEMENT THIS POLICY
SECTION II. The Town Council hereby delegates the authority to develop, approve and
keep current the administrative procurement policies and procedures to the Town Manager.
PASSED this 12th day of June, 2012.
Ui6stattd, Mayor
Town of Leesburg
ATT
Clerk of CpAcii
P:\Resolutions\2012 \0612 Revising the Town's Procurement Policy.doc
Index No. FIN 601.0
Pages: 11
Adopted Date: 08 -08 -2000
Revision Date: 06 -13 -2012
The Town Of Leesburg
Procurement Policy
TABLE OF CONTENTS
I. Purpose, General ................................................................................................ ..............................3
11. Policy ................................................................................................................. ..............................3
III. Responsibility .................................................................................................... ..............................3
IV. Small Purchase Policy (VPPA 2.2- 4303.G & H) .............................................. ..............................4
V. Contract Approvals ............................................................................................ ..............................6
VI. Distributing projects resulting from multiple award contracts (VPPA 2.2- 4301.3.a) .....................6
VII. Small, woman -, minority- and service disabled veteran -owned business (VPPA 22.4310) ...........7
VIII. Petition for recycled goods and products; periodic review of procurement standards,
(VPPA 2.2 -4313) ............................................................................................... ..............................7
IX. Petition for procurement of less toxic goods and products; periodic review of procurement
standards (VPPA 2.2- 4314) ........................................... ............................... ..7
.. ...............................
X. Comments Concerning Specifications (VPPA 2.2- 4316) .................................. ..............................8
XI. Negotiation with lowest responsible bidder (VPPA 2.2 -4318) ........................ ..............................8
XII. Debarment Policy (VPPA 2.2 -4321) ................................................................. ..............................9
XIII. Withdrawal of bid due to error (VPPA 2.2- 4330. C) .......................................... ..............................9
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T. Purpose, General - The policies contained herein have been developed pursuant to the
Virginia Public Procurement Act, Sections 2.2 -4300 through 2.2 -4377 of the Code of Virginia
( "VPPA "). These policies are intended to provide the framework to respond to user needs,
maintain a strong public confidence in the integrity of public procurement, promote
competition, and foster the most favorable price for the purchase of needed goods, services,
insurance and construction by the Town.
IT. Policy - All public contracts with nongovernmental contractors for the purchase or lease of
goods, or for the purchase of services, insurance or construction, shall be awarded after
competitive sealed bidding or competitive negotiation pursuant to the VPPA and approved
optional policies contained herein, unless otherwise authorized or exempted by law or
regulation.
These policies and procedures apply whether the consideration is monetary or nonmonetary and
regardless of whether the public body, the contractor, or some third party is providing the
consideration, except those specifically exempted in the VPPA or herein.
The Town of Leesburg originally adopted the provisions of the VPPA on August 8, 2000, as its
procurement policy. A copy of the VPPA can be found on the Commonwealth of VA's
Legislative information System at litt1LWleal,state.va.us.
III. Responsibility
1. The Town Manager shall exercise overall responsibility for the conduct of the Town's
procurement system through the Director of Finance (Director or CFO).
2. The Town Manager may make administrative changes to this Policy consistent with the
general duties assigned to the Town Manager in Section 4 -2.1 et seq. of the Town
Charter,
3. The Chief Procurement Officer (CPO) serves as the purchasing agent for the Town
under the direction of the CFO. The CPO shall have the duty and responsibility to:
a. Keep current, observe and enforce the policies and procedures adopted herein;
b. Ensure that procurement transactions be conducted in a fair and impartial
manner, that competition be promoted and that the best interests of the Town be
served;
C. Manage the procurement process for the purchase or contracting of budgeted
goods, services, construction and insurance. Present or assist in presentation of
such contracts to Council as deemed necessary;
d. Issue a Procurement Procedures Manual which shall contain instructions for
Town employees for the processing of requisitions, delegation of purchase
authority, issuance of purchase orders and contract orders, contract
administration, specification development, source selection, supplier list
maintenance, receipt, acceptance and payment for purchases, supplier
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performance, cooperative purchasing, property management, and disposition of
surplus;
e. Implement procedures that ensure that all goods, services or construction
purchased are properly inspected and conform to the purchase order, contract
and /or specifications;
f. Ensure that appropriate personnel are trained and have access tothe Procurement
Policy Manual and the Procurement Procedures Manual; and
g. Participate in national, state and regional cooperative purchasing programs and
organizations.
4. Department Directors of the Town shall be responsible for the following:
a. Assuring compliance by the personnel of their departments with the
procurement policies herein and procedures implemented to comply with such
policies;
b. Assuring that procurements are made for authorized purposes and within the
budgetary limits approved by the Town Council and the Town Manager;
C. Ensuring that all goods, services or construction purchased are properly
inspected and conform to the purchase order, contract and /or specifications;
d. Exercising delegated procurement responsibility within the limits and
procedures established by this regulation and procedures implemented by the
CPO; and
e. Assuring that appropriate personnel are trained and possess copies of this
Procurement Policy Manual and the Procurement Procedures Manual.
Failure to follow the provisions of these Policies and established procurement
procedures may be grounds for disciplinary action up to and including termination.
IV. Small Purchase Policy (VPPA 2.24303.G & H) - The competitive pricing methods set forth
below shall be followed for purchases not expected to exceed the limit set in the VPPA.
Goods, Services, Insurance and Other than professional services:
a. Purchases less than $2,500 must be authorized by a Department Director or
authorized representative. Telephone quotations, catalogue comparisons,
written quotes or other similar quotes may be obtained, as is practicable. Single
quotes deemed reasonable are acceptable.
b. Purchases greater than or equal to $2,500 and less than $30,000 must be
authorized by a Department Director and the CPO or authorized
representative(s). Price quotes are to be obtained from three or more sources, as
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is practicable. Written quotes are recommended but verbal quotes are
acceptable provided all pertinent information is properly documented. Proper
documentation includes: item description, date and time of quotation, company
name, quoted unit and extended price, and name of authorized representative
providing the quotation.
C. Purchases greater than or equal to $30, 000 and less than the VPPA limit must
be authorized by the Department Director the CFO and the CPO, or authorized
representative(s). A minimum of four written quotes resulting from an informal
written Request for Quotations (RFQ) are required. Notice of the solicitation
must be posted on either the Town of Leesburg or Commonwealth of VA
website.
2. Professional Services: Purchases less than the VPPA limit must be authorized by the
Department Director, the CFO and the CPO or authorized representative(s). A
minimum of four written quotes resulting from an informal written RFQ are required.
Notice of the solicitation must be posted on either the Town of Leesburg or
Commonwealth of VA website.
When a procurement transaction is made under subsections 1 or 2, of this section, the
purchase shall be made from the supplier quoting the lowest price unless it is
documented in writing that the award to another supplier quoting a higher price is in the
best interest of the Town.
4. Nothing in this Policy shall prevent the use of competitive sealed bidding or
competitive negotiation in procurements less than the formal bid VPPA limit if properly
documented and deemed appropriate by the CPO.
5. Orders may not be arbitrarily split so as to constitute a small purchase.
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SMALL PURCHASE POLICY
Type of
Estimated
Required
Required
Min. #
purchase
Cost
Authorization
Procurement Method
of quotes
required
<$2,500
Department Director
Purchase Card,
Goods,
or authorized
Request for Quotation -
1
construction,
representative
verbal or written
insurance
$2,500 up to
Department Director
Request for Quotation —
and other
$30,000
and CPO
verbal or written, (written
3
than
referred
professional
$30,000 up to the
Department Director,
Written Request for
services
VPPA formal bid
CFO and CPO
Quotation, informal —
4
limit*
written quotes
Professional
<VPPA formal
Department Director,
Written Request for
Services
RFp limit*
CFO, CPO
Quotation, informal —
4
written quotes
°tlItective // 1! 1 t, the v rrA torMal ll' u and rur limits are s l uu,uuu and s6u,uou, respectively
V. Contract Review and Approval
1. Only the Town Manager or his designees are authorized to sign contracts which bind
the Town for the acquisition of goods, services, insurance or construction.
2. Contracts shall be processed as follows:
a. The using department shall draft the contract documents using standard
established templates and forward them to the CPO for review;
b. After review, the CPO shall forward them to the Town Attorney for approval as
to legal form; and,
C. The contract is then returned to the CPO to secure the signature of the
Contractor, and the Town Manager or his designee. Procurement staff shall file,
maintain and distribute the contract documents.
VI. Distributing projects resulting from multiple award contracts (VPPA 2.2- 4301.3.a)
Task Orders: The Task Order will be offered to one or more of the Architectural or
Engineering Contractors at the Town's discretion. The Task Order must include a
scope of work, a definition of the product required, a request for a project schedule and
a request for a fee proposal. Upon receipt of the Contractor's proposal, the Town may
award the Task Order to the Contractor deemed to be best suited for the project.
Evaluation Criteria for Task Order awards is generally included in the original RFP.
Criteria may include such things as schedule, special skills, cost, etc.
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2. Fees: The fee for the services on each Task Order shall be negotiated individually on a
lump sum basis considering the Scope of Services required, the estimated man -hours
required for each skill level /discipline and the labor rates agreed upon and listed in the
Contract. If an estimate of the time required to perform the Work cannot be reasonably
estimated, the A/E may be directed to proceed with the work on an hourly basis with a
maximum or not -to exceed amount. The compensation / fee shall be determined by the
A/E's certified record of man -hours expended by classification / skill level / discipline
and the hourly rates for each as listed in the contract.
VII.. Small, woman -, minority- and service disabled veteran -owned business (VPPA 22.4310) -
The Town will undertake every reasonable effort to increase the opportunity for participation in
the procurement process by small, minority -, women- and service disabled veteran- owned
firms.
All employees with purchasing responsibility are expected to notify and give every reasonable
consideration to using qualified small business suppliers for their procurement needs.
Whenever the Town engages in a solicitation or request for quotes that exceed $30,000, it will
post the notice on either the Town's or eVA's web site, or both.
Additionally, the Procurement Office will:
Participate in training seminars for the purpose of informing small, minority -, women -
and service disabled veteran -owned bidders of the procurement opportunities and
procedures.
2. Participate to the maximum extent possible in all local and regional vendor or
procurement fairs for small, minority -, women- and service disabled veteran -owned
businesses.
3. Cooperate with the Department of Minority Business Enterprise, the United States
Small Business Administration, and other public or private agencies.
VIII. Petition for recycled goods and products; periodic review of procurement standards
(VPPA 2.2 -4313) - Any person who believes that particular goods or products with recycled
content are functionally equivalent to the same goods or products produced from virgin
materials may petition the CPO to include the recycled goods or products in its procurement
process. The petitioner shall submit documentation which establishes that the goods or products
(i) contain recycled content and (ii) can meet the performance standards set forth in the
applicable specifications prior to bid /proposal due date. If the CPO determines that the
documentation demonstrates that the goods or products with recycled content will meet the
performance standards set forth in the applicable specifications, it shall incorporate such goods
or products into its procurement process.
IX. Petition for procurement of less toxic goods and products; periodic review of
procurement standards (VPPA 2.2 -4314) - Any supplier, who manufactures, sells or supplies
goods or products may petition the CPO to include requirements for less toxic goods and
products into its procurement process. The supplier shall submit, prior to or during the
procurement process, documentation which establishes that the goods or products meet the
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applicable performance standards. If the CPO determines that the documentation establishes
that the less toxic goods or products meet the performance standards set forth in the applicable
specifications, they shall incorporate the specifications for the less toxic goods and products
into their procurement process. The Town will revise procedures and specifications on a
continuing basis to encourage the use of less toxic goods and products; however, the Town is
not required to purchase, test or evaluate any particular good or product other than those that
would be purchased under regular procurement procedures.
X. Comments Concerning Specifications (VPPA 2.2 -4316) - The following provision will be
included in every formal solicitation issued by the Town.
Questions or comments concerning the specifications contained herein must be received by the
CPO or designated Buyer or Project Manager in writing at least five (5) days prior to the
bid/proposal due date. Any interpretation deemed to be material in nature or that alters the
scope of the goods or services being requested will be expressed in the form of written
addendum. Such addendum will be posted on the Town's website and emailed to all properly
registered bidders or Offerors at least three (3) days prior to the bid/proposal due date. Verbal
communications will not be binding.
X1. Negotiation with lowest responsible bidder (VPPA 2.2 -4318) - If the bid from the lowest
responsible bidder exceeds available funds, the Town may negotiate with the apparent low
bidder to obtain a contract price within available funds if the solicitation contains the following
clause:
"Unless all bids are cancelled or rejected, the Town reserves the right
granted by § 2.2 -4318 of the Code of Virginia to negotiate with the lowest
responsive, responsible bidder to obtain a contract price within the funds
available. For the purpose of determining when such negotiations may
take place, the term "available funds" shall mean those funds which were
budgeted by the Town for this contract prior to the issuance of the written
Invitation for Bids. Negotiations with the low bidder may include both
modifications of the bid price and the Scope of Work/Specifications to be
performed. The Town shall initiate such negotiations by written notice to
the lowest responsive, responsible bidder that its bid exceeds the available
funds and that the Town wishes to negotiate a lower contract price. The
times, places, and manner of negotiating shall be agreed to by the Town
and the lowest responsive, responsible bidder. "
(This clause may be used only in Invitations for Bids for goods or services in those
circumstances where, due to unknown cost factors, there may be a need to negotiate to remain
within available funds. This clause shall not be used as a matter of routine.)
If the buyer decides to negotiate in such circumstances, the decision must be documented in
writing in advance of the negotiations. Otherwise, unless canceled or rejected, a responsive bid
from the lowest responsible bidder shall be accepted as submitted. "Available funds" are those
budgeted by the agency for the requirement and designated as such prior to the issuance of the
IFB. The purpose of this provision is not to force a bidder to take a lower price but rather to
negotiate an acceptable change in requirements, including price, that is agreeable to both
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parties. Negotiations might include an extended delivery date, reduced quantity, different
accessories, etc., with a corresponding reduction in price.
XII. Debarment Policy, VPPA 2.2 -4321 - After reasonable notice to the person involved and
reasonable opportunity for that person to be heard, the CPO is authorized to debar a person for
cause. During the period of debarment, a supplier will not be eligible to receive solicitations,
contract awards, or have contracts renewed or extended. The debarment shall not be for a
period of more than three years.
The causes for debarment include but are not limited to:
Conviction for a criminal offense as an incident to obtaining or attempting to obtain a
public or private contract or subcontract, or in the performance of such contract or
subcontract;
2. Conviction under state or federal anti -trust statutes arising out of the submission of bids
or proposals;
Unsatisfactory performance on a contract with the Town, including but not limited to,
failure to comply with contract terms and conditions or to meet specification/scope of
services requirements.
4. Offering any gift, gratuity, favor, or advantage to any Town employee who exercises
official responsibility for procurement transactions.
Failing to disclose a condition constituting a conflict of interest by any officer, director,
owner, partner, or agent of the supplier in a contract or purchase order awarded by the
Town.
6. Conviction of any criminal offense, or a judgment in civil litigation, which indicates a
lack of moral or business integrity.
It is the supplier's responsibility to request reinstatement at the end of the debarment period.
XIII. Withdrawal of bid due to error, VPPA 2.2- 4330.0
Amendments or Withdraw PRIOR to opening: A bid /proposal may be amended
and/or withdrawn by a bidder or offeror if the CPO receives such a request in writing
before the due date and hour. The request must be signed by a person authorized to
represent the person or firm that submitted the bid /proposal.
Amendments must be initialed by the person signing the bid or proposal. The proper
procedure is to draw a single line through the information to be changed and insert the
desired information and initial the change. Erasures, strikeovers, or the use of opaque
fluid on bid or proposal forms that affect unit price, quantity, quality, or delivery may
result in the rejection of the line item or items involved in the bid or proposal.
Amendments or Withdrawal after Opening but Before Award
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a Informality. An informality is a minor defect or variation of a bid or proposal
from the exact requirements of the Invitation for Bids, or the Request for
Proposal, which does not affect the price, quality, quantity, or delivery schedule
for the goods, services, or construction being procured. The CPO may, in its
sole discretion, waive such informalities or permit the bidder /offeror to correct
them, whichever procedure is in the best interest of the Town. Examples
include the failure of a bidder /offeror to:
• Return the number of signed bids /proposals required by the solicitation.
• Sign the face of the bid/proposal in the space provided, but only if the
unsigned bid/proposal is accompanied by other signed documents indicating
the bidder's /offeror's intent to be bound.
• Acknowledge receipt of an addendum to the solicitation, but only if it is
clear from the bid/proposal that the bidder /offeror received the addendum
and intended to be bound by its terms, or the addendum involved had a
negligible effect on price, quantity, quality, or delivery.
b. Judgment Errors. Bids may not be withdrawn if the mistakes are attributable
to errors in judgment, nor may such mistakes be waived or corrected.
C. Nonjudgmental Mistakes
Mistakes Where the Intended Correct Bid is Evident. If the mistake and
the intended correct bid are clearly evident in the bid document, the bid shall
be corrected to the intended correct bid and may not be withdrawn.
Examples of mistakes that may be clearly evident in the bid document are
typographical errors, errors in extending unit prices, transposition errors, and
arithmetical errors.
• Mistakes Where the Intended Correct Bid is Not Evident. A bidder may
be permitted to withdraw a low bid if a mistake is clearly evident from the
bid documents submitted by the bidder and /or a comparison with other bids.
Mistakes Discovered After Award. Bids containing mistakes shall not be corrected or
withdrawn after award of a contract or issuance of a purchase order. No plea or claim
of mistake in a bid or resulting contract shall be available as a defense in any legal
proceeding brought upon a contract or purchase order awarded to a bidder as a result of
the breach or nonperformance of such contract or purchase order.
4. Percentage Analysis. If the lowest apparent responsive bid is 25% or more lower than
the next low bid, the buyer may contact the bidder to confirm the bid price. If the
bidder is able to verify, to the satisfaction of the CPO, that it was a nonjudgmental
mistake, the bid may be withdrawn.
a. If a bid is withdrawn, the lowest remaining bid shall be deemed to be the
apparent low bid.
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b. No bidder who is permitted to withdraw a bid shall, for compensation, supply
any material or labor to or perform any subcontract or other work agreement for
the person or firm to whom the contract is awarded or otherwise benefit, directly
or indirectly, from the performance of the project for which the withdrawn bid
was submitted.
c. If the public body denies the request for withdrawal of a bid under the
provisions of this section, it shall notify the bidder in writing stating the reasons
for its decision and award the contract to such bidder at the bid price, provided
such bidder is a responsive and responsible bidder.
d. No bid may be withdrawn when the result would be the awarding of the contract
on another bid of the same bidder or of another bidder in which the ownership of
the withdrawing bidder is more than five percent.
Authorized By: Date: June 13, 2012
John V lls, Town Manager
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