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Procurement at Southwestern Community College Priya Jerome Director of Purchasing Contracting and Central Services John Brown Director of Facilities, Leasing.

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Presentation on theme: "Procurement at Southwestern Community College Priya Jerome Director of Purchasing Contracting and Central Services John Brown Director of Facilities, Leasing."— Presentation transcript:

1 Procurement at Southwestern Community College Priya Jerome Director of Purchasing Contracting and Central Services John Brown Director of Facilities, Leasing and Planning

2 Overview The Purchasing Department at SWC adheres and applies the statues as dictated by the Public Contracts Code, Education Code and Government Code wherever applicable. Absent a statutory requirement (PCC 20111, see tab 1)all purchases made are subject to primary due diligences: Purchases are made against department requisitions; All vendors are bonafide business entities with tax identification numbers and are set up to do business with SWC after credit worthiness is checked; All purchases are made thru a District issued Purchase Order (PO) against the terms identified in the PO; 2/22/2012

3 Overview Contd. All POs are issued against formal quotes/proposals. When undertaking a higher dollar value purchases a minimum of 3 quotes from potential vendors are sought to identify the best value. Hence where no statutes requires for us to follow competitive bidding procedures, the purchasing office issues Purchase Orders (act as contracts) without bidding. 2/22/2012

4 Competitive Bidding PURPOSE The competitive bidding requirement is founded upon public policy declared by the legislature to protect taxpayers from fraud, corruption and carelessness on the part of the public officials and the waste and dissipation of public funds. 2/22/2012

5 Competitive Bidding The purpose of competitive bidding has been summarized as follows: A.Invites Competition B.Guards against: a.Favoritism b.Fraud c.Improvidence d.Extravagance e.Corruption C.Secures the best work D.Supplies the lowest price practicable E.Protects property holders and tax payers F.Not for the benefit or enrichment of bidders 2/22/2012

6 Competitive Bidding As such, the competitive bidding process that is based on public policy declared by Legislature is designed to (Public Contracts Code (PCC) 20111/20651): BE SELF REGULATORY Be with little to no room for modification of the code prescribed process Applies the same rules of contract law which generally apply to contracts Bids are irrevocable offers or options Contracts made without compliance with competitive bidding, where such bidding is required by statue, is void and unenforceable. No contract is valid or constitutes as an enforceable obligation against the District unless the contract is approved or ratified by the Governing Board, and said approval or ratification is evidenced by a motion that is duly passed and adopted by the Board. (Education Code see tab 2) 2/22/2012

7 Competitive Bidding Public Bidding Thresholds Pursuant to PCC Sections – 20651, Community College Districts must competitively bid any contract involving expenditure of: A. More than $15,000 for construction work/public projects; B. More than $81,000 1 for materials, equipment or supplies to be furnished, sold or leased to the District. C. Repairs including maintenance that are not a public project 1 This Threshold amount is adjusted annually by the Superintendent of Public Instruction to reflect the percentage change in the annual value of the Implicit Price Deflator for the State and Local Government Purchase of Goods and services for the US, as published by the US department of Commerce for the twelve month period ending in the prior fiscal year. 2/22/2012

8 Statutory Exceptions to Competitive Bidding (not limited to) Purchase through other public agencies Piggy – Back (Ed. Code 17595, PCC 20118, 20652, and Govt. Code 14931) Acquisitions from California Multiple Award Schedules (CMAS) (PCC and 12100) (See Tab 3) Change Orders for Materials and Supplies (PCC /20659) Procurement of Electronic Data Processing Systems (PCC and Ed. Code 81645) Educational Material (PCC and Ed. Code 81651) 2/22/2012

9 Statutory Exceptions to Competitive Bidding (not limited to) Surplus Federal Property (Ed. Code 17620/81653) Energy Service and Conservation Contracts (Ed. Code 81660) Emergency Repair Contracts (PCC 20113/20654) Day Labor (PCC 20655) Joint Purchasing Agency Purchasing Agreements (Govt. Code 6500) 2/22/2012

10 Statutory Exceptions to Competitive Bidding Contracts for Special Services (Govt. Code 53060, ) (See tab 4) Special Services include (and are not limited) engineering, architects, land surveyors, attorneys, construction managers, accountants, etc. Design – Build Lease/Sublease (Ed. Code 81330) Design – build Contracts (Ed. Code 81700) Sole Source 2/22/2012

11 Bids Versus Request for Proposal (RFP) BIDSRFP Request for Bids is a Competitive Bidding process. Request for Proposals is not a competitive bid process. Pursuant to PCC 20111/20651 School districts are required to let any contracts for a public project involving an expenditure of more than $15,000 or any contracts involving an expenditure of more than $81,000, as adjusted, for (i) the purchase of equipment, materials, or supplies to be furnished, sold, or leased to the district, (ii) services, except construction services, and (iii) repairs that are not a public project, to the lowest responsible bidder who shall give such security as the board requires or else reject all bids. In a RFP the School District merely asks vendors to submit their own proposals containing whatever specifications they desire, so long as they meet certain general requirements. The bidders are required to explain how their equipment, services or systems meet the general requirements as well as how they may provide other services or advantages to the district for the stated price. 2/22/2012

12 Bids Versus Request for Proposal (RFP) contd.. BIDSRFP In order to secure bids, the District publishes a notice calling for bids stating the work to be done or materials or supplies to be furnished and the time when and the place where bids will be opened. The notice must be published at least once a week for two weeks in a newspaper of general circulation published in the district, or if there is none, then in a newspaper of general circulation circulated in the county. A bid may not be received after the time fixed in the public notice for the opening of bids. Pub. Contract Code, § 20112; Ed. Code, § The notice calling for RFPs is the same as the Notice calling for Bids. 2/22/2012

13 Bids Versus Request for Proposal (RFP) contd.. BIDSRFP In the competitive bid process all bids must be sealed and are only opened in a public meeting on the date, time and place as advertised. The bids are opened in public and read aloud. In the RFP process the proposals although accepted on the date and time advertised are not opened in public and read aloud at the designated time. The competitive bid process is one in which the district publishes bid specifications and contractual provisions which all of the bidders must meet. Pursuant to the competitive bidding statutes, there is no general authority to let a contract upon specifications submitted by the bidders, because there would be no standard by which to measure the bids, and thus there would be no competition in the bidding. The RFP process does not conform to such stringent bid specifications and contractual provisions that respondents have to meet. The RFP process affords the vendors latitude in their responses as long as it conforms to the general specifications identified and is not as definitive and precise as Bids. 2/22/2012

14 Bids Versus Request for Proposal (RFP) contd.. BIDSRFP If any bidder does not meet all of the material bid specifications or agree to all of the material contractual provisions, then that bidder must be deemed a non-responsive bidder and hence that bid is rejected. In an RFP the vendor has a lot of latitude in the proposals they provide and all proposal as accepted and reviewed (subject to the requirement mentioned in point 2 above). In the competitive bid process a contract must be awarded to the lowest responsive responsible bidder. In the request for proposal situation, the public entity need not choose the low monetary bidder, but may evaluate the proposals based upon the needs and desires of the district and award a contract based upon its determination of the best quality, services, functions, quantity, etc., for the price. After proposals have been received, it is not unusual for the public entity to negotiate with one or more of the proposers in terms of the equipment or services to be furnished and the price to be paid. 2/22/2012

15 Bid Documents for Public Projects Invitation to Bid (advertisement) Addendums Instructions /Information to Bidders Bid Form Non-collusion Affidavit Designation of Subcontractors General Conditions Special Conditions Bid Bond Specifications/Drawings/Plans 2/22/2012

16 Bid Documents for Public Projects contd.. Notice to Proceed Workers Compensation Certificate Certificate of Insurance Agreement Performance Bond Payment Bond for Public Works DSA-13 Notice of Completion when contract is accepted and completed. 2/22/2012

17 Services required for Public Projects Architecture and Engineering (RFQ) Professional licensed services Construction Contracts (IFB) Support services for construction (RFQ/RFP) Inspector of Record Testing services Construction management Program management 2/22/2012

18 Different Services/Different Procurement (contracting) Requirements Design Professional services Request for Qualifications (RFQ) Selection committee makes recommendation Other services (RFQ/RFP/Firm Bids) Selection committee makes recommendation Public works construction (Invitation for Bids) Public bid opening, sealed bids POST Award contract administration 2/22/2012

19 Governing Board Oversight Must approve all contracts and contract actions Staff makes recommendations to Governing Board based on codes, process, and results Board reviews staff process, analysis, and recommendation (accepts or rejects) Ratifications – special considerations especially for construction changes 2/22/2012

20 Architecture and Engineering A/E services Architecture and Engineers (A/E) Request For Qualifications (RFQ) May provide specific project or criteria (e.g. Theatre design) Selection is qualifications based: for licensed professional and provides a design Typically committee reviews qualifications Typically interviews performed on short List Price is not a factor in selection Upon selection enter into negotiations on price/fee (similar to personnel hiring process) Often times A/E provides a sealed proposal Governing Board sees staff recommendation for firm and contract (scope of services and fees) 2/22/2012

21 Support Services E.g. Inspectors, Testing services, Construction Managers Advertise for Request for Qualifications/Request for Proposals (RFQ/RFP) Selection criteria published in Solicitation Reviewing and ranking process Similar to public hiring process for personnel Committee reviews respondents Short list published Request proposals from short list Governing Board sees staff recommendation and contract (contract and pricing) for recommended firm 2/22/2012

22 Construction Public works construction is awarded in accordance with PCC 20111/20651 for Community Colleges. Formal Invitation for Bid (IFB), Bid invited on available plans and specifications May require pre-qualifications Public bid opening Award to the lowest, responsive, responsible bidder Staff can review requests to withdraw from bidder Staff can recommend to reject bid based on criteria Governing Board sees staffs analysis of lowest responsive responsible bidder to the IFB and recommendation to award 2/22/2012

23 Always Exceptions/Variations to Public Works Construction CM at Risk (CMR) CM Multi Prime (CM MP) Design/Build (A/E with Contractor) Best Value selection Lease-Lease Back Best Value Selection If Governing Board desires more information schedule a brief training with the San Diego County Office of Education 2/22/2012

24 POST Award Contract Administration There will be changes Clause in contracts to allow for changes Design contracts are Amended Support services are Amended Construction contracts receive Change Orders from Field direction or Proposed Change Orders Governing Board will see for approval: Design amendment with staff recommendation Support amendment with staff recommendation or ratify field direction Change orders with staff recommendation or ratify field direction 2/22/2012

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