1. June 27, 2017

2. Presentation Overview
Introduction & General Overview
Purchasing Process
Proposal Submission & Evaluation 1

3. 1. Introduction and General Overview2

4. City Profile Incorporated in 1984 General Law City
1.9 square mile area
36,000 residents
4,000 businesses
25,000 jobs
210 Regular Employees
50 Seasonal Employees
7 Departments; 29 Divisions 3

5. FY17-18 Budget = $145M July – June Fiscal Year 7 Departments
29 Divisions
210 Regular Employees
50 Seasonal Employees 4 4

6. Contracts Overview 500+ Active Contracts
Los Angeles County Sheriff ($19M)
Capital Maintenance Projects ($6M)
Social Service Contracts ($4.8M)
Other Contracted Services
Construction Contracts (Varies)
Professional & Contract Services ($12M)
Other Goods & Services Contracts ($2M) 5

7. 2. Purchasing Process 6

8. Contract Workflow Product or Service is Needed Bid Process Contracting
Contract Closeout
Paying Bills
Work Begins/Completes
Purchase Orders
Contracting
Bid Process
Product or Service is Needed
Procurement Phase 7

9. Why do we need bids and quotes?
Municipal Code Section :
…Purchases of goods & services must be made on the open market after the solicitation of proposals… 8

10. When is a quote required?
Value
Bids
$2,500 or less
Sound judgement
$2,501 - $10K
3 informal quotes
$10,001 - $25K
3 written quotes
$25,001 or more
Formal RFP process
GOODS: If the cost is substantial (see table>>)
SERVICES: Anytime a service is to be performed unless a contract is already in place
See Finance Policies p13 for full list of exceptions, also found in Municipal Code section (
For items below $2,500: The purchaser is expected to use sound judgment in obtaining at least one  reasonable quote. Purchases may be made using the City’s credit card. 9

11. Government Contracting
Informal Quotes
Request for Qualifications (RFQ)
Request for Proposals (RFP)
Formal Bids 10

12. Public Notice of RFP – Sign up
SIGN UP to receive public notices by
RFPS are:
1. Always posted to City Clerk webpage
2. Often posted to PlanetBids 11

13. Public Notice of RFP – City Clerk
RFPS are:
1. Always posted to City Clerk webpage
2. Often posted to PlanetBids 12

14. Public Notice of RFP – Planet Bids
RFPS are:
1. Always posted to City Clerk webpage
2. Often posted to City’s PlanetBids Portal 13

15. 3. Proposal Submission & Evaluation14

16. RFP/Bid Elements RFPs typically include: RFP Schedule / Key Dates
Table of Contents
Project Description
Required Deliverables
Project Schedule
Submission Requirements
Evaluation Process
Sample Agreement
Contract Requirements: Specific terms and language Insurance provisions Indemnity Living Wage (for agreements $25K+)
Decentralized Purchasing
Informal vs. Formal Process 15

17. Vendor Responses to RFPs/Bids
Read Entire Packet
Respond Completely
Submit Response by Deadline
Reasonable Budget
Similar Experience
References 16

18. Goal: Highest Quality for Lowest Cost
City selects the vendor who provides the highest quality for the lowest cost.
The City has a local preference option. (cost reduction of 4%, not to exceed $5,000)
Example
Criteria
Proposal A
Proposal B
Proposed Cost
$50,000
Vendor Location
Burbank
West Hollywood
Local Preference $0
4% = ($2,000)
Evaluated Cost*
$48,000
*Does not impact the actual agreement value; just the evaluation of proposals 17

19. How does the city evaluate proposals?
Is the proposal complete and on time? Is the scope of work responsive to the RFP? For services, does the work plan make sense? Are the deliverables clear? Is the proposed schedule or timeline achievable? Is the cost reasonable? What expertise and related experience does the vendor have? What do their references say? Does the vendor have sufficient insurance and financial resources to complete the job?
Ability, skill, & capacity to deliver requested goods or services
Ability to meet City’s timeline
Character, integrity, and reputation
Previous experience with the vendor
Sufficient financial resources
Sufficient insurance
Future maintenance/service needs
Cost
Will the vendor be in business long enough to finish the job? To provide updates or upgrades down the line? 18

20. …that create a formal and legally binding agreement.
Executed Agreement
…that create a formal and legally binding agreement.
A Set of Promises...
Must be signed by Department Director, City Manager, and Vendor
City Council may have to approve the agreement
Must be accompanied by required documents, such as certificates of insurance, endorsements, waivers of subrogation, etc. 19

21. Insurance Requirements
Type of Insurance
Minimum Coverage
Certificate of Insurance
Waiver of Subrogation
Endorsement*
Workers Comp
$1M 
General Liability
$1M occurrence $2M aggregate
Auto Liability
$300K combined single limit
Others as necessary
Contractual relationship protects both the City and the Vendor
* Endorsement(s) must include: Primary and non-contributory language, 30-day notice of cancellation 20

22. Key Websites Sign Up for Email Notifications Bid & RFP Notices (All)
Bid & RFP Notices (All)
PlanetBids (All Public Works, Some Other)
Public Notices (All) 21

23. Questions 22