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HomeMy WebLinkAbout00-007i~ ,o~. I '" ~ l 4. _- ~~~. ~~~~~~.. RES'OI. UTIt~N APPRI) I1INfi AM~'NI)MENT Nt1. ~ Tll PURCHASING Pt~LICY MA.NUAI_ WHEREAS, on June 22, 7999 the Board of Supervisors approved an ordinance adding Chapter 46 ~o the Butte County Code entitled `Purchasing- Ordinance"; and WHEREAS, Section 46-6 of said ordinance requires the preparation of a. Purchasing Policy !Manual setting forth the rules and regulations necessary to implement the provisions of the ordinance; and WHEREAS, said Section 46-b further requires modification to the Purchasing Policy Manual be made by adoption of a Resolution. NOW, THEREFORE, BE IT RESOLVED by the Butte County Board of Supervisors that it approves and adopts Amendment No. 1 to the Purchasing Policy Manual as set forth in Exhibit "A" att2ched hereto and made a part hereof. PASSED AND ADOPTED by the Butte County Board of Supervisors this l lth day of January 2©Ot1 by the following vote: AYES: Supervisors Beeler, Hour, Josiassen, Davis and Chair Dolan. NOES: None ABSENT: None NOT VOTING: None ATTEST: r ~Tane Dolan ,Chair t Butts County Board of Supervisors JOHN S. BLACKLOCK, Chief Administrative Officer and Clerk of the Board J .., / • ! p General Services Department Purchasing Services Office PURCHASINtu POLICY MANUAL CHANGE NUMBER ONE TO PURCHASING POLICY MANUAL JANUARY 2000 This change to the Butte County Purchasing Policy Manual provides an explanation of the changes being made and instructions for the removal of old pages and insertion of new pages. Table of Contents The following pages of the Table of Contents were revised to reflect the new section on Purchasing of Recycled Products: Remove old page Insert new page 4 of 5 4 of 5 Section 2.0 Contract Approval Requirements This section was revised to change the dollar threshold to $25,000 or more for Board of Supervisors approval of personal services contracts. In some instances the threshold was erroneously reflected as over $25,000. To clarify the intent of paragraph 2.1 (b), the phrase "fixed assets or other" was inserted in the first sentence. Remove old pages 2-1 2-3 Section 3.0 Competitive Sealed Bidding Insert new cages 2-1 2-3 This section was changed to include alternative actions available in the event that a low bidder modifies or withdraws its bid subsequent to bid opening. A typographical error was also corrected. Remove old pages 3-6 3-7 Section 4.0. Competitive Sealed Proposals This section was changed to correct a typographical error. Remove old page 4-7 Insert new pages 3-6 3-7 Insert new page 4-7 PPMCH1.Doc Rev. 01-11-2000 Butte County Purchasing Services Page 1 of 2 General Services Department Purchasing Services Office PURCHASINv POLICY MANUAL CHANGE NUMBER ONE TO PURCHASING POLICY MANUAL JANUARY 2000 Section 12 0 Disposal of Surplus Personal Property and Purchase of Recycled Products This section was changed to require departments to remove sensitive documentation from furniture and to remove sensitive data from computers prior to turning such equipment in for disposal. The County policy on purchase of recycled products was also added to this section. Remove old pages 12-1 12-2 Section 13.0 Contract Policies Insert new popes 12-1 12-2 12-3 12-4 This section was revised to change the dollar threshold to $25,000 or more for Board of Supervisors approval of personal services contracts. In some instances the threshold was erroneously reflected as over $25,000. Remove old pages 13-4 13-5 13-7 13-8 13-10 13-11 Index Insert new paaes 13-4 13-5 13-7 13-8 13-10 13-11 The index was revised to add Purchase of Recycled Products and Recycled Products to the Index. Remove old ~aqe 18-3 Insert new page 18-3 PPMCH1.Doc Rev. 01 11-2000 Butte County Purchasing Services Page 2 of 2 General Services Department Purchasing Services Office PURCHASINu POLICY MANUAL TABLE OF CONTENTS Paae 11.0 DEBARMENT OF SUPPLIERS .................................................................................11-1 11.1 Causes for Debarment ...................................................................................11-1 11.2 Other Actions ..................................................................................................11-1 12.0 DISPOSAL OF SURPLUS PERSONAL PROPERTY AND PURCHASE OF RECYCLED PRODUCTS ...............................................................................................................12-1 12.1 Departmental Responsibility ............................................... ............................12-1 12.2 Listings of Surplus Personal Property ................................. ............................12-1 12.3 Disposal of Surplus Personal Property ............................... ............................12-1 12.4 Prohibition Against Purchase by Employees ....................... ............................12-1 12.5 Trade-In Allowance on Purchase of Personal Property ......................................................................... ............................12 -2 12.6 Surplus Property Disposition of Proceeds ........................... ............................12-2 12.7 Advertising Sale of Personal Property ................................ ............................12-2 12.8 Purchase of Recycled Products .......................................... ............................12-2 13.0 CONTRACT POLICIES .............................................................................................13-1 13.1 Commodities/Equipment Contracts ................................................................13-2 13.2 Service Contracts ...........................................................................................13-3 13.3 Consultant and Professional Services Contracts ............................................13-6 13.4 Architect-Engineer Service Contracts .............................................................13-9 13.5 Public Works Contracts ............................................................................... 13-11 14.0 TYPES OF SOLICITATIONS .....................................................................................14-1 14.1 Request for Proposals (RFP) ........................ ..................................................14-1 14.2 Invitation for Bids (IFB) ................................. ..................................................14-4 14.3 Request for Quotations (RFO) ...................... ..................................................14-7 14.4 Sole Source Requests .................................. ..................................................14-7 15.0 PURCHASING SERVICES FORMS ..........................................................................15-1 15.1 Purchase Requisition ......................................... .............................................15-1 15.2 Purchase Order ................................................. .............................................15-4 15.3 Field Purchase Order ......................................... .............................................15-9 15.4 Petty Cash Authorization and Payment ............. ...........................................15-11 15.5 Short Form Agreement ...................................... ...........................................15-14 15.6 Partial Payments ............................................... ...........................................15-14 15.7 Rubber Stamps .................................................. ...........................................15-14 15.8 Office Supplies .................................................. ...........................................15-14 15.9 Sole Source Justification ................................... ...........................................15-14 15.10 General Claim .................................................... ...........................................15-15 PPM01.Doc Rev. 01-11-2000 Butte County Purchasing Services Page 4 of 5 General Services Department Purchasing Services Office PURCHASING POLICY MANUAL CONTRACT APPROVAL REQUIREMENTS 2.0 CONTRACT APPROVAL REQUIREMENTS Whenever the Purchasing Agent forwards a matter to the Board of Supervisors for their approval or ratification, the matter may be placed an the Consent Agenda. Where the recommendation is for an award other than low bidder or where the matter is unusual, the Chief Administrative Office will determine placement of the item on the agenda. The following policies set forth the requirements for submitting purchasing-related matters to the Board of Supervisors far approval, ratification or information. 2.1 Board of Supervisors Approval Required (a) All contracts required by law to be approved by the Board of Supervisors; (b} Contracts for fixed assets or other projects included in the budget, or subsequently approved by the Board of Supervisors, far which sufficient funds are available do not require additional approval by the Board of Supervisors; (c) To engage independent contractors to perform services far the County, with or without the furnishing of material, when the aggregate cost is $25,000 or more; (reference Government Code Section 25502.5, which currently authorizes delegation of this power in contracts up to $100,000). (d} Contracts for rental/lease or lease-purchase of equipment or computer software for a period exceeding three years; (e) Joint powers or cooperative purchasing agreements; (f) Any change order or alteration to a Board of Supervisors' approved contract for a public project as defined by the Public Contract Code that exceeds: (1 } $5,000 if the total amount of the contract does not exceed $50,000; or (2) Ten percent of the amount of any contract which exceeds $50,000, but does not exceed $250,000, or (3) When the original contract cost is over $250,000, a change order or alteration shall not exceed $25,000 plus 5% of the original contract in excess of $250,000; however, (4) In no case shall any change or alteration exceed $150,000. (reference Public Contracts Gode Section 20142). (g) Change orders, alterations, renewals, or addenda to a Board of Supervisors' approved contract that changes or amends the contract in the amount that is greater than ten percent or $25,000, whichever is less, provided the change does not adversely affect the bid award. PPM06.Doc Rev. 01-11-2000 Butte County Purchasing Services Page 2-1 of 2-3 General Services Department Purchasing Services Office PURCHASINv POLICY MANUAL CONTRACT APPROVAL REQUIREMENTS is desirable. Such experts shall be retained at negotiated usual and customary fees, and no contract by which the Chief Administrative Officer retains such an expert shall provide for or authorize fees of $25,000.00 or more. 2.5 County Counsel Review The Office of County Counsel shall review all documents/contracts for legal sufficiency prior to final approval. 2.6 Auditor-Controller Review The Office of Ruditor-Controller shall review all contracts for budgetary appropriations prior to final approval. PPM06.Doc Rev. 01-11-2000 Butte County Purchasing Services Page 2-3 of 2-3 General Services Department Purchasing Services Office PURCHASINv POLICY MANUAL COMPETITIVE SEALED BIDDING released except where forfeited. However, the bid band or bid security of the second and third lowest responsible bidders may be retained until the contract has been fully executed and insurance certificates are obtained. The cash, cashier's checks, and certified checks submitted by all other unsuccessful bidders shall be returned to them within ten {10) calendar days after the receipt of bids, and their bid bonds shall be of no further effect. 3.9 Receipt of Bids All bids must be received sealed in an envelope prior to the time specified in the Invitation for Bids. Bids must not be left unattended and must be promptly time-stamped and deposited unopened in the respective bid folder. Late bids shall not be opened and shall not be considered under any circumstances. A late bid will be date-stamped and remain unopened in the bid file. A letter from Purchasing Services will be sent notifying the bidder that the bid was received late and was not considered. 3.10 Bid Opening The Purchasing Agent or designee shall administer all bid openings and all bids shall be opened publicly in the presence of one or more witnesses at the time and place designated in the Invitation for Bids. The County assumes no responsibility over the confidentiality of bid information unless specifically stated otherwise in the Invitation for Bids. 3.11 Correction or Withdrawal of Bids In any request or decision involving a bid mistake, correction or withdrawal, Purchasing staff shall consult with County Counsel. Except as otherwise specified in Section 5100 of the Public Contract Code, correction or withdrawal of inadvertently erroneous bids before or after bid opening may be permitted only if such correction or withdrawal is not prejudicial to the interest of the County or fair competition. Further: {a) Mistakes in bids detected prior to bid opening may be corrected or withdrawn by the bidder by written request received by the Purchasing Services Manager prior to the time designated far opening of bids, provided that the original bid shall not be physically returned to the bidder until after the bid opening. The written request must be signed by the same person who signed the original bid, and shall be sealed, time-stamped and deposited in the same manner as the original bid. Oral, telegraphic, or facsimile transmission of corrections or withdrawals shall not be permitted. {b) Mistakes in bids detected during or after bid opening may not be corrected by the bidder except: {1) A bidder may be permitted to correct a material mistake that would cause such bidder to have the low bid if the mistake is clearly evident from examining the bid document; for example, arithmetical errors. However, a bidder shall not be permitted to correct a bid for errors of judgment. A low bidder shall not be permitted to increase its bid price and still be considered as the low bidder. PPM07.Doc Rev. 01-11-2000 Butte County Purchasing Services Page 3-6 of 3-11 General Services Department Purchasing Services Office PURCHASING POLICY MANUAL COMPETITIVE SEALED BIDDING (2) An otherwise low bidder may be permitted the opportunity to furnish other information called for by the Invitation for Bids and not supplied due to oversight, so long as it does not affect responsiveness. The Purchasing Agent shall maintain complete and sufficient records of evidence used to establish an error and intended price. Records of bid withdrawals shall also be maintained to ensure there is no abuse of the competitive bidding process. All decisions to permit the correction of bid mistakes and the withdrawal of bids shall be made in writing by the Purchasing Agent and retained in the bid file. In the event that correction of a bid subsequent to bid opening results in a new low bidder, the Purchasing Agent may make an award to the new low bidder, or may request new bids from all suppliers on the applicable bidder's list. 3.12 Bid Evaluation Bids shall be evaluated based on the requirements set forth in the Invitation for Bids, which may include criteria to determine acceptability such factors as inspection, testing, quality, workmanship, delivery, and suitability for a particular purpose. Criteria affecting price shall be objectively measurable, such as discounts, transportation costs and life cycle or total ownership casts. The Invitation for Bids shall set forth the evaluation criteria to be used. Examples of evaluation criteria that may be used include: (a} Adherence to all conditions and requirements of the bid specifications (b) Total bid price, including any trade discounts or prompt pay discount of fifteen days or more. Unit price, or extended price (c) Local supplier preference [reference Sections 3.18 and 4.5(d)] (d} General reputation and experience of bidders based on references or prior performance (e) Hourly rates for specified personnel (f} Evaluation of the bidder' s ability to service the County (g) Financial responsibility of the bidder (h) Needs and requirements of the County (i) Experience with the products involved PPM07.Dac Rev. 01-11-2000 Butte County Purchasing Services Page 3-7 of 3-11 General Services Department Purchasing Services C?ffice PURCHASING POLICY MANUAL COMPETITIVE SEALED PROPOSALS the County to evaluate and select the successful proposer. Criteria may include the following, and others, established for the specific project. (a) Relevant Experience (b) Qualifications of Personnel Assigned (c} Availability (d) Proposal Content and Presentation (e) Compliance with Administrative Requirements (f) Total Cost (g) Methodology In addition to the above criteria, to the extent possible, the RFP will define the County personnel who will comprise the evaluation team and the projected time frame for evaluation and recommendation for award. The team should always include the Purchasing Agent or authorized designee and others directly involved in the project. (Also refer to Sections 3.12, 3.13, and 4.5 for other evaluation factors.) 4.8.5 Master Supplier File Purchasing Services will maintain a listing of all known suppliers who can provide services to the County. All requests from firms andlor individuals voicing interest in providing services to the County should be forwarded to Purchasing Services for a determination regarding placement in the Master Supplier File. 4.8.6 Release of RFP If the Project has prior budget approval, it is not necessary that authorization be obtained from the Board of Supervisors to release the RFP. A release date is agreed upon and the RFP is released to a list of prospective suppliers identified during the planning process. 4.8.7 Proposal Opening On the date established in the RFP, the proposals are opened either in Purchasing Services or in the department specified in the RFP. Discussions relative to disclosure of information will be governed by Section 4.6 and 14.1 (e) of the Purchasing Policy Manual. 4.8.8 Evaluation of Proposals The proposals are reviewed by Purchasing Services staff and/or the issuing department to ensure that all minimum, mandatory, and administrative requirements of the RFP are met. Those proposals not meeting the minimum, mandatory, and administrative requirements are rejected by formal letter from Purchasing Services andlor issuing department and are not further reviewed in the evaluation process. PPM08.Doc Rev. 01-11-2000 Butte County Purchasing Services Page 4-7 of 4-8 General Services Department PURCHASING POLICY MANUAL Purchasing Services Office DISPOSAL OF SURPLUS PERSONAL PROPERTY AND PURCHASE OF RECYCLED PRODUCTS 12.0 DISPOSAL OF SURPLUS PERSONAL PROPERTY AND PURCHASE OF RECYCLED PRODUCTS The General Services Department is responsible for preparing and distributing procedures to help ensure the maximum utilization of surplus personal property. It is incumbent upon each department head to promptly notify the General Services Department when any personal property in his/her possession is no longer needed. General Services will determine whether the item is required by another department or whether the item should be stored, transferred, or disposed. 12.1 Departmental Responsibility Although General Services will periodically survey departments for surplus personal property, departments should notify General Services whenever such property is available so that it may be utilized by another department. File cabinets, safes and desks shall be inspected prior to release for disposal or sale to ensure that all sensitive information has been removed. Departments are responsible for ensuring that computers or other devices containing memories have all sensitive information permanently removed prior to release of such equipment for disposal or sale. Permanent removal of the sensitive information stored in memory may require physical removal of the hard drive. To maximize the resale value of mechanical or electrical equipment released for sale, the department shall include a description of the equipment's capability and operating condition. For computers released for sale, the operating condition statement shall include the chip speed, memory capacity and any other relevant information that will impact the resale value. 12.2 Listings of Surplus Personal Property General Services shall provide secure storage for, and maintain an inventory of surplus personal property. The inventory should be made available to departments and compared to requisitions to ensure that unnecessary purchases are avoided. 12.3 Disposal of Surplus Personal Property Purchasing Services shall sell, lease, transfer, dispose of, or exchange surplus property as provided by the Butte County Code, Government Code, and Board direction. 12.4 Prohibition Against Purchase by Employees Any officer, agent or employee of the County: (a) Assigned to the purchasing function, or (b) Responsible for surplus declarations, or (c) Having privileged information regarding the item or equipment or the value thereof that is not available to all prospective bidders, or PPM16.Doc Rev. 01-11-2000 Butte County Purchasing Services Page 12-1 of 12-4 General Services Department PURCHASING POLICY MANUAL Purchasing Services Office DISPOSAL OF SURPLUS PERSONAL PROPERTY AND PURGHASE OF RECYCLED PRODUCTS (d} Assigned to the organization having custody of the surplus property shall not directly or indirectly submit a bid or purchase surplus County personal property. This policy shall be liberally construed to prohibit any appearance of impropriety and County Counsel should be consulted for an opinion whenever there is a question of probable conflict. 12.5 Trade-In Allowance on Purchase of Personal Property When purchasing personal property for which it is not necessary to advertise for bids, the Purchasing Agent is authorized to solicit and accept advantageous trade-in allowances for County personal property which has a scrap value of less than $10,000 and which has previously been determined by the Purchasing Agent to be of no further public use. (Government Code Section 25503) When purchasing personal property for which the purchase price is $10,000 or more, the Purchasing Agent may include in the Invitation for Bids, a request for trade-in of equipment that is no longer useful to the County. No later than at the time of the Board' s award of the bid solicitation, the Purchasing Agent shall also request that the Board declare the County personal property be traded-in as "surplus" and approve such trade-in as a part of the bid award if the Purchasing Agent determines to da so would be in the best interest of the County. 12.6 Surplus Property - Disposition of Proceeds The proceeds of surplus property dispositions shall be deposited into the County treasury for use of the County. Where the property is exchanged or traded-in, the Purchasing Agent shall secure its value on behalf of the County. Where specifically authorized by law, the Purchasing Agent may sell, lease or dispose of the personal property of any special district and pay the proceeds into the treasury of the district, or, if an exchange or trade-in is made, return the proceeds to the special district by depositing the funds with the County Ruditor for disbursement to the special district (Government Code Section 25505}. 12.7 Advertising Sale of Personal Property In the disposition of any personal property, the Purchasing Agent may purchase advertising space and may advertise the proposed sale or other disposition to those persons most likely to bid for or purchase the personal property. 12.8 Purchase of Recycled Products The purpose of this policy is to support the purchase of products that will minimize any negative environmental impacts of our work. Butte County recognizes that the purchasing decisions of our employees can make a difference in favor of environmental quality. We PPM16.Doc Rev. 01-11-2000 Butte County Purchasing Services Page 12-2 of 12-4 General Services Department Purchasing Services Office PURCHASING POLICY MANUAL DISPOSAL OF SURPLUS PERSONAL PROPERTY AND PURCHASE OF RECYCLED PRODUCTS promote the purchase of environmentally preferable products whenever they perform satisfactorily and are available at a reasonable price. If the end products of the collected and recycled materials are not purchased, then recycling and waste reduction efforts are less effective. The various departments and Purchasing Services shall follow the practices outlined below to implement this policy. 12.8.1 Definitions Recycled Products are products manufactured with waste material that has been recovered or diverted from solid waste. Recycled material may be derived from post-consumer waste (material that has served its intended end-use and been discarded by a final consumer), industrial scrap, manufacturing waste, or other waste that would otherwise have been wasted. 2. Practicable means sufficient in performance and available at a reasonable cost. 12.8.2 Purchase Requisitions and Product Specifications Purchase requisitions and product specifications prepared by the departments shall conform to the fallowing guidelines: 1. Product specifications and requisitions shall not indiscriminately require the use of product made from virgin materials, nor indiscriminately exclude the use of recycled-content products. 2. Performance standards shall be reasonable and related to function, and shall not be designed to indiscriminately exclude the purchase of recycled-content product. 3. To the extent such information is known, departments shall identify to Purchasing Services (on the Purchase Requisition) products available with recycled content and the names of suppliers that sell such products. 12.8.3 Selected Environmental Products Butte County departments shall evaluate the following environmentally preferable products and purchase them whenever the evaluation is favorable: 1. Recycled paper and paper products; 2. Re-refined lubricating and hydraulic oils; 3. Recycled plastic Outdoor-wood substitutes; 4. Re-crushed cement concrete aggregate and asphalt; PPM16.Doc Rev. 01-11-2000 Butte County Purchasing Services Page 12-3 of 12-4 General Services Department PURCHASIIv~ POLICY MANUAL Purchasing Services Office DISPOSAL OF SURPLUS PERSONAL PROPERTY AND PURCHASE OF RECYCLED PRODUCTS 5. Cement and asphalt concrete containing glass Gullet, recycled fiber, plastic, fire rubber or fly ash; 6. Remanufactured tires and products made from recycled tire rubber; 7. Compost; 8. Re-manufactured paint; 9. Cleaning products with lowered toxicity; 10. Energy saving products; 11.Waste-reduced products; 12. Water-saving products; and 13. Other products designated by the Public Works Department. 12.8.4 Invitations for Bids and Product Specifications Invitations for Bids {IFB} documents that are prepared by Purchasing Services shall comply with the following standards when preparing IFB documents or assisting departments in the preparation of specifications. 1. Encourage the specification of recycled-content products, when practicable, when preparing product specifications. 2. Ensure that acceptability of recycled-content products indicated in the purchase requisition or product specification is reflected in the IFB. 3. Ensure that the IFB is sent to all department-identified suppliers capable of providing recycled-content products. 4. Include in all IFBs for products a statement indicating that Butte County encourages prospective bidders to provide bids for recycled- content products. 5. Include in all IFBs a requirement for bidders to describe the use of recycled materials in the manufacture of products included in their bids. 6. When consistent with the specifications, required functionality and pricing considerations, Purchasing Services may specify minimum recycled-content material or request alternative bids on products containing recycled materials. 7. Purchasing Services shall assemble information about recycled products from suppliers and the Recycled Products Committee to assist departments in the preparation of purchase requisitions or product specifications. 12.8.4 Exemption Nothing in this policy shall be construed as requiring the purchase of products that do not perform adequately or are not available at a reasonable price. PPM16.Doc Rev. 01-11-2000 Butte County Purchasing Services Page 12-4 of 12-4 General Services Department Purchasing Services Office PURCHASINu POLICY MANUAL CONTRACT POLICIES (b} Criteria Regarding. Length of Contract Term No contract shall extend beyond three years unless specifically ordered by the Board of Supervisors. If a contract is sole source, it shall be re-evaluated after three years. If the sole source is still justified, a new contract shall be issued. The length of a contract term may be determined using the following criteria: (1 } Contractor's start-up costs {2} County's contract start-up costs (3) Other economic factors Equal Dignity Rule: Any changes to a contract must be made with the same formality as the original contract. (c) Contract Extensions For contracts under $25,000, asix-month extension may be permitted without Board approval at the discretion of the Purchasing Agent to allow time for compilation of contract data and re-bidding. However, it is the policy of the department to begin to develop new contracts at least six months before the current contracts are to expire. (d} Adjustments to Contract Amount Contracts may be decreased or canceled by the Purchasing Agent without direction of the Board of Supervisors upon written request from the user department. When requesting authority from the Board of Supervisors for contracts, contingency clauses may be requested for contract increases. The Purchasing Agent shall review the need for all contingency requests. If the request is in excess of ten percent of the contract or $25,000 or more, complete justification shall be presented to the Board of Supervisors. (e) Contract Increases Service contract amounts may be increased providing the new total is less than $25,000 if: (1 } The need for the service could not be accurately projected and the relative percentage of the increase would not make re-bidding more desirable. (2} An emergency exists whereby time does not permit re-bidding. Re-bidding shall be done as soon as possible thereafter. (3} Other justifiable economic factors necessitate a monetary increase in the contract. PPM18.Doc Rev. 01-11-2000 Butte County Purchasing Services Page 13-4 of 13-13 General Services Department Purchasing Services Office PURCHASING POLICY MANUAL CONTRACT POLICIES (f) Incremental Contractina In order to prevent incremental contracting, each contract shall clearly specify the following: {1) Services/materials to be provided (2) Basis of pricing and payment (3) Period of contract (4) Monetary limit of contract Gontracts shall be consolidated whenever feasible. Contracts shall not be intentionally split to avoid approval by the Board of Supervisors or to bypass bidding requirements. (g} Emergencies For the purpose of service contracts, an emergency shall be defined as a sudden, generally unexpected occurrence or set of circumstances demanding immediate action. If immediate action is not taken, essential services could not be continued or there could be an economic loss to the County. Emergency requests shall be justified to the Purchasing Agent and/or Board of Supervisors. (h) Sole Source Requests See Section 14.4 {Sole Source Requests). (i} Approvals Required Rpproval by the Board of Supervisors and County Counsel and Auditor-Controller is required for all service contracts of $25,000 or more in the aggregate. Government Code Section 25502.5 provides for delegation up to $100,000. (j) Supplier Selection Supplier selection shall be based on a competitive process. A verbal or written solicitation shall be made as follows: Gontracts less than $5,000: Minimum of one prospective supplier solicited Contracts $5,000 to $10,000: Minimum of three solicitations (See Section 14.3, Request for Quotations) Contracts $10,000 and up: Written solicitations to all firms on the bidder's list for the applicable commodity. (See Sections 14.1 Request for Proposals and 14.2 Invitation for Bids). PPM18.Doc Rev. 01-11-2000 Butte County Purchasing Services Page 13-5 of 13-13 General Services Department Purchasing Services Office PURCHASINu POLICY MANUAL CONTRACT POLICIES (1) Urgent situation that cannot be resolved by County employees {2) Temporary, intermittent, or irregular services that cannot effectively be performed by County employees {3) Special or highly technical skills that cannot be secured through County employees (4) Need for an independent opinion, appraisal, audit, or similar service (5) Lack of sufficient personnel to accomplish the work in the required time frame {6) Meets the restrictions of Government Code 31000 (c) Criteria Regarding Length of Contract Term No original contract term shall be for more than one year unless specifically ordered by the Board of Supervisors except for contracts that are based on the completion of a specified project. The length of a contract term may be determined using the fallowing criteria: ^ Project schedule • Contract rate • Project need for service Equal Dignity Rule: Any changes to a contract must be made with the same formality as the original unless terms of the contract provide for another procedure. (d) Contract Extensions Upon request through written justification by an agency/department, the Purchasing Agent may extend a consultant contract for up to six months. The Board of Supervisors must approve additional extensions. However, it is the policy of the Purchasing Services to begin to develop new contracts at least six months before the current contracts are scheduled to expire. (e) Adjustments to Contract Amount The Purchasing Agent without direction of the Board of Supervisors may decrease consultant contracts. When requesting authority from the Board of Supervisors for contracts, contingency clauses may be requested to increase contracts. The Purchasing Agent shall review the need for all contingency requests. If the requested amount exceeds ten percent of the contract or is $25,000 or more, complete justification shall be presented to the Board of Supervisors. PPM18.Doc Rev. 01-11-2000 Butte County Purchasing Services Page 13-7 of 13-13 General Services Department Purchasing Services Office PURCHASINt~ POLICY MANl1AL CONTRACT POLICIES (f) Contract Increases Upon written justification by a department, consultant contracts may be increased at the discretion of the Purchasing Agent. The total contract amount shall not be more than ten percent of the original contract amount or $25,000 or more. The Board of Supervisors must approve additional increases (g} Incremental Contracting In order to prevent incremental contracting, each consultant contract shall clearly specify the following: {1 } Work to be performed (2} Product to be provided (3) Cost detail of serviceslmaterial charges (4) Period of contract (5} Monetary limit of contract (6) Terms and conditions Consultant contracts shall be consolidated whenever feasible. Contracts shall not be split to avoid the Board of Supervisors' approval process or to bypass bidding requirements. (h) Emergencies For the purpose of consultant contracts, an emergency shall be defined as a sudden, generally unexpected occurrence or set of circumstances demanding immediate action. If immediate action is not taken, essential services could not be continued or there could be an economic loss to the County. Emergency requests shall be justified to the Purchasing Agent and/or Board of Supervisors. (i) Sole Source Requests See Section 14.4 {Sole Source). (i} ~grovals Required Approval by the Board of Supervisors and County Counsel and Auditor-Controller is required for all consultant contracts valued at $25,000 or more in the aggregate. (k) Supplier Selection Supplier selection shall be based on a competitive process. Requests for consultant services where the amount to be paid is equal to or greater than $25,000.00 shall include a choice of three consultants, wherever possible, along with a synopsis of proposals. All such requests shall be submitted by the requesting department to the Board of Supervisors for selection of the consultant. PPM18.Doc Rev. 01-11-2000 Butte County Purchasing Services Page 13-8 of 13-13 General Services Department Purchasing Services Office PURCHASINv POLICY MANUAL CONTRACT POLICIES (b) Criteria Regarding Length of Contract Term If the architect-engineer services to be completed under a given contract relate to a specific project, the contract term shall be based upon a reasonable estimate of the time required for the project. This estimate shall be made by County architect and engineering professionals and shall be subject to negotiation with contractor architects and engineers. If the architect-engineer services to be completed are not project-specific, the contract term shall be for a maximum of one year. (c} Contract Extensions The General Services Director or designee shall be authorized to grant contract extensions that: involve no cost increase or are within the General Services Director contract change order authority; and are needed for reasons other than delays or problems caused by the contractor. (d) Adjustments to contract Amount Contract increases may be granted by the General Services Director to order changes or additions in the work within the limits established by Public Contract Code Section 20142 and County policy. (e) Incremental Contracting In order to prevent incremental contracting, each contract shall clearly specify the following: (1) Services to be provided (2} Basis of pricing and payment (3) Period of contract (4) Monetary limit of contract Contracts shall be consolidated whenever feasible. Contracts shall not be intentionally split to avoid approval by the Board of Supervisors or to bypass selection requirements. (f) Approvals Required Approval by County Counsel and Auditor-Controller shall first be obtained on all engineer contracts before being submitted to the Board of Supervisors for all architect-engineer service contracts valued at $25,000 or more in the aggregate. (g) Supplier Selection Efforts shall be made to ensure that all potential architect-engineer firms that wish to provide service for Gounty projects will have the opportunity to do so. A list of potential architect-engineer firms shall be maintained and information concerning PPM18.Doc Rev. 01-11-2000 Butte County Purchasing Services Page 13-10 of 13-13 General Services Department Purchasing Services Office PURCHASINu POLICY MANUAL CONTRACT POLICIES their interest and qualifications kept on file in the Purchasing Services Office. Information on file concerning listed potential firms shall be used when recommending or selecting architect-engineer firms. Selection of firms for architect-engineer services shall be on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required. Another objective of the selection process is to effect an equitable distribution of work among firms that are equally qualified. For contracts under $25,000, the architect-engineer shall be selected by the General Services Director (or designee). For contracts of $25,000 or more, the General Services Director shall submit a slate of three architect-engineer firms to the Board for the Board's selection of one primary firm and one alternate. (h) Negotiation of Contracts After the Board of Supervisors has selected an architect-engineer firm, the General Services Director (or designee) shall negotiate a contract, subject to County Counsel's review, with the selected firm. The agreed to compensation shall be at a level determined by the General Services Director to be fair and reasonable to the County. The department that negotiated the contract shall submit it to the Board of Supervisors for final approval. (i) Conflict of Interest No contracts shall knowingly be issued to any current County employee or hislher immediate family or to any former County employee or his/her immediate family until two years after separation, without notifying the Board of Supervisors. The term "employee" shall include individuals who have served as agents or representatives for the County. (See Section 9.0, Ethical Standards for Purchasing Activities.} 13.5 Public Works Contracts (a) Definition Public works contracts include all contracts for erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. Road and Flood project requirements are strictly prescribed in the Public Contract Gode. Public works projects other than Road or Flood are referred to in this section as "County projects", and requirements for these projects are also strictly prescribed in the Public Contract Code. (b) Criteria Regarding Length of Contract Term The length of a contract term shall be determined by the length of time required to complete the project. The length of contract term is determined by the County and prescribed in the bid based upon a reasonable estimate of the required time for completion and accepted by the contractor in submittal of its bid. PPM18.Doc Rev. 01-11-2000 Butte County Purchasing Services Page 13-11 of 13-13 General Services Department Purchasing Services Office Word or Phrase Office Supplies Form Oral Commitment Oral Quotes Partial Payments Payment for Goods/Services Personal Services Personal Services (definition) Petty Cash Pharmaceuticals, Proprietary Planned Purchasing Schedules Postage & Freight Prepayments Private Opening Professional Services Professional Services {definition) Professional Services (insurance requirements) Prompt Payment Discount Protests & Appeals Public Bid Opening Public Contract Code Public Notice Public Projects Public Works Contracts Purchase Orders Purchase Requisitions Purchases for Non-Gounty Public Agencies Purchasing Recycled Products Re-bids Receipt of Bids Receiving Goads Records of Purchases Recycled Products Registration of Vehicles Reject Bids Renew Contracts Rental, Equipment Request far Proposals (RFP) Request for Quotations {RFQ) Requisition Road Projects Rubber Stamps Section Numbers 15.8 6.8 6.6 8.8, 15.6 8.4.1 13.3 17.0 8.2 (f), 15.4 1.3 (i) 8.1.3 8.10 $.11 4.1 (b}, 14.1 {e} 2.4, 4.2, 13.3 17.0 13.3 (k) {2) 3.12 (b} 10.0 3.1 {b}, 3.10 5.0 3.3, 3.17, 4.3 2.1 (e}, 5.0 13.5 8.2 (a), 15.2 8.1, 15.1 1.5, 15.1 12.8 3.14 3.9 8.4.1 8.1.6, 8.2 12.8 8.5.1 1.2 {e}, 3.14 1.3 (m) 1.3 (9) 4.0, 14.1 6.0, 14.3 8.1, 15.1 5.0 8.9, 15.7 PURCHASIIV~ POLICY MANUAL PPM22.Doc Rev. 01-11-2000 Butte County Purchasing Services Page 18-3 of 18-4