Operational Procedures

Transcription

1 Operational Procedures Supplementing the JEA Purchasing Code Revised: June 2006 April 2011 Approved By: Date:

2 Table of Contents PART A: INTRODUCTION Intent of Operational Procedures How to Use This Document Quick Reference Guides Definitions Intent and Usage of Defined Terms Defined Terms in the Code Terms Defined for the Operational Procedures Filing of Determinations General Determinations Specific Determinations Overview of JEA Procurement Procedures PART B: SMALL PURCHASES (INFORMAL PURCHASES) Overview of Informal Purchases Definition of informal Purchases TABLE 1: SMALL PURCHASE THRESHOLDS FOR SOLICITATION ACTIONS Exceptions to Small Purchase Procedures TABLE 2: EXCEPTIONS TO THE SMALL PURCHASING PROCESS Diagram of Small (Informal) Purchasing Processes Preparing to Solicit Quotes for an Informal Purchase Role of Requestor in Preparing to Solicit Quotes Role of Buyer/Procurement in Preparing to Obtain Quotes Soliciting for Quotes or Bids/Proposals for Informal Purchases Minimum Information to Provide Vendors When Soliciting an Informal Quote or Bid/Proposal Purchases Under $50, Purchases of $50,000 or More Communication With Vendors During Informal Solicitation Process Changes to an Informal Solicitation Prior to Award Receiving, Opening and Evaluating Responses to Informal Solicitations Required Form of Responses to Informal Solicitations Timeframe for Submitting Responses to Informal Solicitations Review of Responses to Informal Solicitations When Only One Response Is Received to an Informal Solicitation Documenting Informal Quotes and Bids/Proposals Award/Approval of Small Purchases TABLE 3: PROCUREMENT PERSONNEL SMALL PURCHASE APPROVAL THRESHOLDS Award and Contracting Method for Informal Purchases Cancellation of Informal Purchase or Postponement of Purchase Increase in Dollar Limit of a Purchase Order for an Informal Purchase TABLE 4: APPROVAL GUIDELINES FOR INCREASES TO SMALL PURCHASE ORDERS Purchasing Card Program ( P-card ) PART C: FORMAL AWARD AND SOLICITATION PROCESSES Overview of Formal Purchase and Award Process Definition of Formal Awards WHEN FORMAL SOLICITATION PROCESSES ARE USED Exceptions to the Formal Solicitation Process SOLE SOURCE AWARDS JEA Procurement Operational Procedures Table of Contents Page 2 of 93

3 1.2.2 PIGGY-BACKING Diagram of Formal Solicitation Process Formal Solicitation Document Types Invitation for Bids (IFB) IFB TYPES Request for Proposals (RFP) RFP TYPES Design-Build Type Solicitation Document Creation Processes Creation of Formal Solicitations - Process Overview Solicitation Review Committee Meeting Agenda and Processes SRC AGENDA PREPARATION AND DISTRIBUTION APPROVAL OF SOLICITATION DOCUMENTS Content of Formal Solicitation Documents JEA Clause Library JSEB Requirements Establishing Minimum Requirements and Evaluation Criteria MINIMUM REQUIREMENTS TO BID/PROPOSE EVALUATION CRITERIA TABLE 5: EVALUATION CRITERIA CONSIDERATIONS FOR FORMAL SOLICITATIONS Determining Initial Term of Contract Determining if Contract Renewal Option Should Be Offered in Solicitation List of Prospective Bidders/Proposers for Supplies and Services LIST OF QUALIFIED BIDDERS/PROPOSERS MAINTENANCE OF THE RBL/ QPL REMOVAL OR SUSPENSION FROM JEA S RBL/ QPL Advertising (Public Notice) of Formal Solicitations Construction Related Public Notice Requirements Type of Notice Availability of Required Forms to Submit With Bids Drawings Included With Solicitations After Solicitation Release and Before Receipt of Bid Issuance of Addenda Pre-bid Meetings Establishing an Evaluator for Responses to IFBs Establishing an Evaluation Team and Scoring Matrix for Responses to RFPs or Evaluated Bids TABLE 6: EXAMPLES OF EVALUATION CRITERIA AND SUBCRITERIA After Bids Are Received - Selection and Award Opening of Bids/Proposals TWO-STEP OR COMPETITIVE NEGOTIATED BID OPENINGS WHEN PROCUREMENT DETERMINES NOT TO OPEN RESPONSES Correction or Withdrawal of Bids MINOR IRREGULARITIES CORRECTIONS WITHDRAWAL OF BIDS Responsibility of Bidders/Proposers Selecting a Successful Bidder/Proposer TABLE 7: EVALUATION AND SELECTION STEPS Evaluating Bids Submitted in Response to IFBs Evaluating Bids/Proposals Submitted in Response to Evaluated Bids or RFPs Bid Documentation File Negotiations JEA Procurement Operational Procedures Table of Contents Page 3 of 93

4 7.8.1 RESPONSIBILITIES GENERAL PRACTICES FOR NEGOTIATIONS NEGOTIATIONS FOR CCNA TYPE SERVICES NEGOTIATION OF TECHNICAL PROPOSALS - COMPETITIVE NEGOTIATED BIDDING NEGOTIATION IN LIEU OF RESOLICITATION WHEN BIDS EXCEED AVAILABLE FUNDS AWARD OR CANCELLATION AFTER NEGOTIATIONS Tied Responses to Formal Competitive Solicitations Tie Bids - Competitive Sealed Bids APPLICABILITY ALTERNATE BIDS Tie Rankings Competitive Sealed Proposals APPLICABILITY RANKING ACCORDING TO PRICE Formal Awards Award Requests FORM OF REQUESTS FOR REVIEW AND ACTION LATE REQUESTS Awards Committee AGENDA PREPARATION AND DISTRIBUTION COMMITTEE MEMBERS REVIEW PRIOR TO THE MEETING AWARDS COMMITTEE REVIEW AND APPROVAL MEETING MINUTES Role JEA Awards Committee in Reviewing the Water and Sewer Expansion Authority (WSEA) Awards Requests Cancellation of Formal Awards Cancellation of Invitations for Bids or Requests for Proposals After Award Use of Contracts CONTRACT EXECUTION Conforming Contract Documents Contract Administration Contract Documentation File Licenses, Permits, Bonds, Letters of Credit, Warranties and Insurance Certificates Bid Security Contract Performance and Payment Bonds WHEN A CONTRACT REQUIRES A PAYMENT AND PERFORMANCE BOND DETERMINING REQUIRED AMOUNT OF PAYMENT AND PERFORMANCE BONDS ALTERNATIVE FORMS OF SECURITY IN LIEU OF BONDS BONDS FOR CONSTRUCTION CONTRACTS OF $200,000 OR LESS, OR CONTRACTS FOR OTHER GOODS AND SERVICES Warranty Bonds Bond Forms Contract Renewals, Extensions and Amendments Contract Renewals Contract Extensions Contract Amendments COMBINING PROCUREMENT ACTIONS WITH AN EXISTING CONTRACT AMENDMENT INCREASING AN AWARD ORIGINALLY LESS THAN $200,000 TO $200,000 OR MORE FORM OF REQUEST FOR CONTRACT AMENDMENT Change Orders to Formal Awards Supplemental Work Authorizations (SWA) JEA Procurement Operational Procedures Table of Contents Page 4 of 93

5 15.0 Protests, Debarment and Suspension, Protest Appeals and Contract Controversies Protests of Solicitation and Award Process TABLE 8: DEADLINES FOR SUBMITTING PROTESTS OF SOLICITATIONS OR AWARDS FORM OF PROTESTS Debarment or Suspension Procurement Appeals Board ( PAB ) Procedures FORM OF APPEALS TABLE 9: DEADLINES FOR SUBMITTING APPEALS TO PAB ACKNOWLEDGMENT OF RECEIPT OF APPEAL SCHEDULING THE PAB REVIEW MEETING PAB REVIEW MEETING EX PARTE COMMUNICATION PROHIBITED Contract and Breach of Contract Controversies PART D: CLAUSE & DOCUMENT MANAGEMENT Centralized Storage of Final Contract Documents o Ongoing Clause Review and Documentation Regular Review Modifications to Clauses PART E: OTHER PROCUREMENT PROCEDURES Sole Source Awards Review and Approval of Sole Source Procurements STANDARDIZATION Reporting Requirements for Sole Source Awards Standard, Proprietary and Original Equipment Manufacturer Items Certification of Standard, Proprietary and OEM Items Review and Approval of Standard, Proprietary and OEM Items STANDARDIZATION REPURCHASES/REORDERS OF STANDARD, PROPRIETARY AND OEM ITEMS SOLICITATION DOCUMENT FOR STANDARD, PROPRIETARY AND OEM ITEMS Standardization Programs or Committees Emergency Procurements Competition Requirements for Emergency Procurements Certification of Emergency Procurement Ratification of Emergency Procurement Reporting Requirements for Emergency Purchases Task Authorizations Vendor Performance Program Requirements Cooperative Procurement Agreements Consideration of a Cooperative Procurement Entering Into a Cooperative Procurement Agreement USE OF COLECTRIC PARTNERS INC. AGREEMENTS PART F: NON-PROCUREMENT CONTRACTS AND AGREEMENTS Approval of Non-Procurement Contracts Maintenance of Non-Procurement Contracts and Agreements PART G: RESPONSIBILITIES Responsibilities of PCM Responsibilities of the Manager of Procurement Contracts Responsibilities of the Contract Administrator Responsibilities of Solicitation Review Committee (SRC) Delegation of Authority Responsibilities of SRC Use of OGC JEA Procurement Operational Procedures Table of Contents Page 5 of 93

6 5.1 Legal Services Other Than Bond Counsel PART H: ADDITIONAL REFERENCES Purchasing Code Index Appendix 1: Quick Reference Small Purchases Appendix 2: Quick Reference Invitation for Bids Appendix 3: Quick Reference Requests for Proposals Appendix 4: Quick Reference Evaluating Bids and Proposals Appendix 5: Awards Committee Philosophy Appendix 6: Cover Page - Fuel Management Services Procurement Directive Appendix 7: Cover Page - Power Supply Committee Directive Appendix 8: Cover Page - Retail Customer Contracts Procurement Directive Appendix 9: Cover Page - Real Estate Services Procurement Directive Appendix 10: Cover Page - Environmental Allowances Procurement Directive Appendix 11: Cover Page - Developer Agreement Procurement Directive Appendix 12: Certification of Standard, Proprietary or OEM Item Form Appendix 13: Certification of Emergency Procurements Form JEA Procurement Operational Procedures Table of Contents Page 6 of 93

7 PART A: INTRODUCTION 1.0. INTENT OF OPERATIONAL PROCEDURES This document is intended to set forth guidelines for JEA Procurement personnel and other JEA personnel only. The Code 2-202(2) permits the CPO to promulgate Operational Procedures that detail procedures for the policies set forth in the Code. This document should be considered supplemental to the JEA Purchasing Code. Therefore, any discrepancies that may arise between this document and the Code shall be resolved solely by the CPO. In Part A, we provide an explanation of how to best utilize this document in conjunction with the Code, and provide definitions of terms that we use in addition to those used in the Code. Part B describes the procedures surrounding small (informal) purchases, that is, purchases estimated to cost $200,000 or less. We detail the roles that Requestors and Buyers perform in conducting small purchases. We set forth the thresholds for obtaining quotes and the approval levels for JEA personnel, and set standards for how informal quotes should be documented. In addition, we state the thresholds for increasing the amount of a PO and the procedures regarding cancellation of informal bids or awards. Part C is intended to describe the formal awards procedures, specifically those surrounding competitive solicitations, in the same order in which the solicitations are typically conducted. We detail the procedures by which JEA conducts formal awards, noting and briefly describing noncompetitive awards, then proceeding to address the Formal Solicitation Process. We detail the creation and review of competitive solicitation documents, noting the situations in which each type may or must be used, requirements surrounding evaluation factors and other significant information that should be included in the documents. Next, we detail the procedures surrounding the evaluation of bids and proposals, including the creation of an Evaluation Team and a matrix by which to score proposals. We discuss the roles of JEA personnel relating to negotiating and suggest minimum negotiating steps. Finally, we discuss issues of contract renewals, extensions and amendments. In Part D, we outline the measures that should be taken to ensure the proper documentation and storage of information related to the contract, and the steps that should be taken to update JEA s standard clauses. In Part E, we address a variety of procurement related topics such as sole source purchases, emergency purchases, and purchases of standard, proprietary or Original Equipment Manufacturer (OEM) goods. Part E also addresses the use of Task Authorizations, the Vendor Performance Program, and the use of collaborative or cooperative agreements. Part F addresses the basic functions that Procurement should perform in the oversight and management of JEA contracts and agreements that are not conducted through Procurement. In Part G, we set forth specific responsibilities for the Manager of Procurement Contracts, PCM, SRC and guidelines for using the services of OGC. The responsibilities set forth in this document are not intended to be exhaustive listings of the respective parties duties, but only to address the individuals minimum responsibilities as they relate to the formal awards process and the oversight and management of JEA contracts. JEA Procurement Operational Procedures Part A: Introduction Page 7 of 93

8 Part H contains additional references including an index to the Purchasing Code that can be used to tie passages of the Code to the related topics in this document. We have also included Quick Reference guides for use by Procurement s customers. In addition, the appendix contains copies of several JEA Directives and various standard forms JEA Procurement Operational Procedures Authority of the Chief Purchasing Officer 2.0 HOW TO USE THIS DOCUMENT The document is organized by parts, sections, subsections and topics. The Table of Contents lists the four levels and the corresponding page numbers so that JEA personnel may quickly find information relating to a particular Procurement issue. Following each section (in gray text) readers will find a reference to the Code where related information may be found. The Index to the Purchasing Code in the back of the document lists sections of the Code (in numerical order), and topics and page numbers where the information in the Code is further detailed within this document. The Topical Index lists topics discussed in this document with references to the Code where the same or related information is contained Quick Reference Guides The Quick Reference Guides are intended to aid Procurement s internal customers in understanding various Procurements processes. 3.0 DEFINITIONS 3.1 Intent and Usage of Defined Terms Within this document, terms that are capitalized within the text shall have the specific meanings set forth either in the Code, or herein. When terms are defined in the Code and also herein, they shall have the meaning specifically attributed to them in this document, rather than that stated in the Code. Plural forms of words defined as singular shall have the same effect, and vice versa. When the terms defined in the Code and herein are not capitalized, they shall have the meanings commonly attributed to them and as appropriate for the context of their use. 3.2 Defined Terms in the Code The following terms defined in the Code are incorporated into this document with the same meanings ascribed to them in the Appendix of the Code. The reader should refer to the Code for definitions of the following: Awards Committee Change Order Chief Purchasing Officer Code JEA Procurement Operational Procedures Part A: Introduction Page 8 of 93

9 Consultants Competitive Negotiation Act Contractor Emergency Ex Parte Communication Firm Office of the General Counsel Operational Procedures Organizational Element Price Proposal Request for Qualifications and Statement of Interest Small Purchases Solicitation Review Committee Technical Proposal 3.3 Terms Defined for the Operational Procedures The following terminology is used within this document to more concisely refer to people and processes: Manager of Procurement Contracts The individual within JEA Procurement under the direction of the Procurement and Contracts Manager, who is charged with providing legal and business input regarding solicitations and contracts, and serving when needed as a liaison to OGC. Awards Committee A standing committee authorized by the JEA Board of Directors to make Formal awards, among other duties, in accordance with the Code. Awards Coordinator The individual within Procurement responsible for coordinating the procedures surrounding Formal Awards. Bid, bid A document submitted by a vendor in response to an IFB. Bidder, bidder A vendor who submits a response to an IFB. Bid Evaluator An individual designated to review Bids. Buyer The individual within JEA Procurement assigned by the PCM to perform procedures related to conducting Informal or Formal purchase, which may include creating Formal Solicitations, performing necessary changes to solicitation documents, and otherwise guiding Procurement s internal customers through procedures for conducting a purchase via the Informal Purchase process or the Formal Solicitation Process. CCNA The Consultants Competitive Negotiation Act. Contract, contract An agreement between JEA and a Contractor signed by both parties. Contract Administrator The individual designated by the Organizational Element to manage a Contractor s performance of the Contract for JEA. Contract Documentation File The collection of documentation associated with a contract that is maintained by the Manager of Procurement Contracts. Contract Wizard A third-party software application that contains JEA s standard clauses and that is used by Procurement to produce solicitation and contract documents. CPO The Chief Procurement Officer, having the authority to establish and manage JEA purchasing policies and procedures, as defined in the Code. Evaluator Team The individuals who are designated to review and score, if applicable, bids or proposals. Formal Procurement actions (whether awards, purchases, solicitations, etc.) that relate to purchases estimated to meet or exceed $200,000. Formal Solicitation A document used to solicit bids or proposals as part of the Formal Solicitation Process. Formal Solicitation Process A process under which JEA uses several established methods such as an IFB, RFP or design-build process to solicit responses from bidders or proposers. JEA Procurement Operational Procedures Part A: Introduction Page 9 of 93

10 Formal Solicitation Process does not include contracts awarded based solely on Requests for Quotes, Requests for Information, or other informal quotes. Informal Procurements actions (whether awards, solicitations, purchases, etc.) that relate to Small Purchases, as defined in the Code (i.e. those estimated to cost less than $200,000). 1 Invitation for Bids (IFB) A type of solicitation document issued by JEA under the Formal Solicitation Process seeking price bids from qualified bidders. JEA Standard A purchase of goods or services that have been selected as standard via the JEA standards program or through the actions of a standards committee. JSEB The City of Jacksonville s program for Small and Emerging Businesses. Lead Evaluator The individual identified by the Requestor to lead the compilation of Evaluators scores, among other things. OGC Office of the General Counsel of the City of Jacksonville Original Equipment Manufacturer (OEM) Goods or services that must be obtained from the original equipment manufacturer or a distributor authorized by the original equipment manufacturer because of the criticality of the item or compatibility within the JEA system. Piggy-backing Use of a contract for goods or services originally established by another public entity via a public solicitation process. Procurement - The Organizational Element within JEA responsible for, among other things, overseeing the purchasing of goods and services. Procurement Representative An individual appointed by the CPO to perform a set of purchasing functions. Project Manager An individual appointed by the Organizational Element to oversee the work following execution of the contract. Proposal A document submitted by a vendor in response to an RFP. Proposer A vendor who submits a response to an RFP. Proprietary Goods or services that must be a certain type, brand, make or manufacturer. Procurement and Contracts Manager (PCM) An individual within JEA Procurement responsible for overseeing the Buyers, managing the content of solicitations and contracts, leading the negotiations process and for serving as otherwise authorized by the CPO. Purchasing Card Administrator The individual responsible for administering JEA s Procurement Card program. Requestor The individual representing the requesting Organizational Element and who will be responsible for overseeing the solicitation process on behalf of the Organizational Element; an internal customer of Procurement. Request for Proposals (RFP) A type of competitive solicitation document issued by JEA under the Formal Solicitation Process seeking proposals that may or may not include price, from qualified proposers. Request for Quotes (RFQ) An informal solicitation document released by JEA in order to obtain prices from vendors for purchases less than $200,000. Sole Source A purchase for which JEA determines there is only one justifiable source for the required goods or services, or a purchase for goods or services that may only be efficiently provided by a firm that initially rendered the goods or services to JEA. Solicitation, solicitation Any request issued by JEA, whether written or verbal, seeking responses from vendors to provide goods or services; or the process by which responses are sought from vendors for the provision of goods or services. SRC The Solicitation Review Committee as defined in the Code. Task Authorization A document issued by Procurement authorizing a specific scope of work as part of a larger scope of work. Vendor, vendor Any Firm, as defined in Code. 1 The Code uses the defined term Small Purchases for those purchases less than $200,000, however, because the term informal purchase is commonly used by Procurement personnel and their customers, and understood to mean the same, the Operational Procedures will use the terms interchangeably. JEA Procurement Operational Procedures Part A: Introduction Page 10 of 93

11 Vendor Performance Program The set of policies and procedures by which JEA assesses and manages the performance of Contractors Purposes, Rules of Construction 4.0 FILING OF DETERMINATIONS 4.1 General Determinations Determinations regarding the Operational Procedures or other interpretations of the Code shall be maintained in a master file by the CPO. 4.2 Specific Determinations Determinations associated with a particular solicitation, award or contract shall be maintained by Procurement in the associated solicitation, award or contract file Application of this Code JEA Procurement Operational Procedures Part A: Introduction Page 11 of 93

12 5.0 OVERVIEW OF JEA PROCUREMENT PROCEDURES JEA Procurement Operational Procedures Part A: Introduction Page 12 of 93

13 PART B: SMALL PURCHASES (INFORMAL PURCHASES) 1.0 OVERVIEW OF INFORMAL PURCHASES 1.1 Definition of informal Purchases Small Purchases, also known as informal purchases, are those purchases that are estimated not to exceed $200,000, and that, therefore, do not warrant the administrative costs associated with the Formal Solicitation Process. JEA does, however, encourage Buyers to seek as much competition as possible or practical for the circumstances surrounding informal purchases. To promote competition, yet limit administrative effort, JEA has established thresholds for conducting informal purchases, as summarized in the table below. Unlike the Formal Solicitations Process, the Buyer is permitted some discretion in determining the number and form of quotations or bids/proposals to obtain. However, the Buyer shall follow the minimum guidelines outlined in Table 1 when conducting informal purchases. Table 1: Small Purchase Thresholds for Solicitation Actions Estimated Purchase Amount Solicitation Actions Required Less than $5,000 Obtain a minimum of one (verbal or written) quote Over $5,000, but less than $50,000 Obtain a minimum of three written quotes Over $50,000, but less than $200,000 Min. of 3 written quotes, but recommended 5 quotes. Post RFQ on JEA.com in Informal Bids section. 1.2 Exceptions to Small Purchase Procedures There are a few exceptions to the Small Purchase procedures exist, as noted below: Table 2: Exceptions to the Small Purchasing Process Type and Amount of Purchase Actions Required Electrical work estimated to exceed $50,000 Bids must be obtained via the Formal Solicitation Process 2 Planning or study work subject to CCNA Must follow the Formal Solicitation Process for regulations estimated to exceed $35,000 CCNA type purchases 3 Sole source or limited competition purchases Buyer ensures proper documentation and less than $200,000, which may include: approval of sole source purchases. Buyer Emergency ensures that Requestor submits required Proprietary certification for emergency purchase, or Original Equipment Manufacturer (OEM) standard, proprietary or OEM purchase. Buyer JEA Standard The Code uses the term Small obtains at least one quote from the qualified 2 FS (1) requires such work to be conducted via a competitive sealed bid process. 3 FS (4c) requires such work to be conducted in accordance with the procedures outlined for CCNA type purchases. JEA Procurement Operational Procedures Part B: Small (Informal) Purchases Page 13 of 93

14 Purchases for those purchases less than $200,000, however, because the term Informal Purchase is commonly used by Procurement personnel and their customers, the Operational Procedures will use the terms interchangeably. bidder(s), but may obtain quotes from other bidders if doing so is deemed advantageous to JEA. JEA Procurement Operational Procedures Part B: Small (Informal) Purchases Page 14 of 93

15 1.3 Diagram of Small (Informal) Purchasing Processes JEA Procurement Operational Procedures Part B: Small (Informal) Purchases Page 15 of 93

16 2.0 PREPARING TO SOLICIT QUOTES FOR AN INFORMAL PURCHASE 2.1 Role of Requestor in Preparing to Solicit Quotes To begin, the Requestor completes a purchase requisition in Oracle, providing the following information with the purchase requisition: 1. Detailed descriptions or technical specifications for materials, products and services, which may include part numbers, item numbers, catalog numbers, system numbers or dimensions 2. Suggested vendors and contact information, including the name of the applicable vendor contact person, their title, work location address, phone number, fax number and address 3. A related contract number or task authorization number (if applicable) 4. Certification of Standard, Proprietary or OEM Item (if applicable, check the appropriate box) and written justification for such 5. Certification of Emergency Purchase (if applicable) and written justification for such The Requestor shall obtain approval of the purchase requisition from all required parties, which may include Organizational Element managers, directors and VPs. The Requestor may obtain the required certification forms from Quest, Enabling Processes, Purchasing. The Requestor may contact vendors in order to gain an understanding of the market or to provide budgetary estimates for the types goods or services sought, but should avoid obtaining any direct quotations for specific goods or services, or discussing any terms and conditions of providing specific goods or services with vendors. 2.2 Role of Buyer/Procurement in Preparing to Obtain Quotes Procurement s role in the Small Purchase process begins when Procurement receives an approved purchase requisition. As the purchase requisitions are routed to Procurement, they are segmented by Oracle to determine if they are under current contracts, blanket purchase orders, contract purchase agreements, electronic catalogs (to which the customer will go directly and bypass Procurement) or other contracts that bypass the informal solicitation process. Buyers are assigned to specific categories of purchases and must manually assign the approved purchase requisitions to themselves based on the category of the purchase. The Buyer shall review on a daily basis the purchase requisitions in his or her queue, and shall endeavor to process those that have been in the queue longest, or that are identified as more urgent, first. The Requestor may contact the Buyer directly upon approval of the purchase requisition if the purchase will need immediate attention. The Buyer shall review approved purchase requisitions to ensuring that all information necessary for obtaining quotes is indicated, which may include the following items: JEA Procurement Operational Procedures Part B: Small (Informal) Purchases Page 16 of 93

17 1. Sufficiently detailed description of goods or services sought, including indication of any brand or manufacturer requirements, the quantity of goods sought, and any other specific requirements 2. List of suggested vendors, which may include budgetary quotes obtained from vendors within previous 30 days 3. Estimate of the total purchase 4. Delivery requirements, ensuring that the address stated is a reasonable location for receiving the goods and that the Requestor has indicated the JEA contact and his or her contact information who will receive the goods 5. A realistic need-by date 6. Required certification forms are completed and submitted 7. Required approvals and endorsements are included, validating purchase and funding of the purchase Procurement s goal is to achieve a cycle time of 14 days on Small Purchases, beginning when the Buyer receives the approved purchase requisition. Procurement may return purchase requisitions to the Requestor to clarify the issues that must be resolved prior to processing the order. If a purchase requisition has problems related to funds approval, missing information or requires other clarifications that cause the Buyer to return the purchase requisition to the Requestor for additional information, the 14-day cycle time shall begin upon resolution of these issues. The Buyer shall review each purchase requisition for a Small Purchase to determine the appropriate number of vendors to solicit and the appropriate form of the solicitation (verbal or written). The Buyer will initiate the appropriate method of procurement in accordance with the Code, the guidelines established herein and the circumstances of the purchase. The Buyer may also contact the JSEB Coordinator to identify potential JSEB qualified suppliers that may be capable of bidding on the goods or services. When three or more JSEB qualified firms may provide the goods or services identified, the Buyer shall review the purchase with the JSEB Coordinator and may initiate a sheltered market purchase. 3.0 SOLICITING FOR QUOTES OR BIDS/PROPOSALS FOR INFORMAL PURCHASES If the Requestor submitted suggested vendors, the Buyer will contact those vendors to obtain informal price quotations. If the Requestor submitted budget estimates from one or more vendors, the Buyer will contact vendors to validate pricing, terms and conditions, delivery, insurance requirements, billing, etc. The Buyer shall utilize any estimates submitted by the Requestor as a starting point for obtaining price quotations. The Buyer may contact additional vendors not submitted by the Requestor to obtain quotes, if the Buyer believes additional vendors can meet or exceed the specifications, that the quotes can be obtained efficiently and that doing so may result in increased value to JEA. The Buyer will assist the Requestor as needed in identifying potential sources of supply, which may include reviewing vendor lists, conducting market research or reviewing previous sources of identical or similar goods and services. 3.1 Minimum Information to Provide Vendors When Soliciting an Informal Quote or Bid/Proposal JEA Procurement Operational Procedures Part B: Small (Informal) Purchases Page 17 of 93

18 The Buyer shall ensure that the following information, at minimum, is provided to every vendor solicited for a response to an informal purchase, regardless of whether the solicitation is made verbally or in writing: 1. Sufficiently detailed description of goods or services sought 2. Delivery and shipping requirements as applicable 3. Any special requirements 4. Need-by date 5. Due date for submitting a quotation of response 6. Buyer s contact information 7. Technical representative contact information (if applicable) 8. Drawings or plans (if applicable) 9. Time period for which quotations shall be valid 10. RFQ number for reference (if applicable) 3.2 Purchases Under $50,000 For purchases under $50,000, Buyers may verbally solicit quotes from vendors, or may make requests via fax, , posting on JEA.com, or standard written form (i.e. a hardcopy document transmitted via U.S. mail or other delivery service), at the Buyer s discretion. 3.3 Purchases of $50,000 or More For purchases of $50,000 to $200,000, Buyers must solicit quotes in written form, either via an informal request or an RFQ posted to JEA.com. Written form may include fax, , posting on JEA.com or hardcopy form. In order to broaden its supplier base, JEA will post informal solicitation documents (RFQs) for goods or services estimated to cost between $50,000 and $200,000 to the Informal Bids section of JEA.com. As soon as possible following the Buyer s receipt of all necessary approvals and information regarding the purchase from the Requestor, the Buyer shall create an RFQ using Oracle, attach any relevant technical specifications or descriptions of the goods or services sought, and forward the information to the Bid Section for posting on the Informal Bids section of JEA.com. RFQs posted to JEA.com should include at minimum the following information: 1. Due date and time for responses 2. Description of goods or services sought 3. Acceptable method for responding 4. Basis on which award will be made (price only, or best value, including price and other factors such as past performance and quality) 5. Delivery location (if applicable) 6. Insurance and bonding requirements The Buyer shall be responsible for ensuring the Bid Section receives an RFQ with the information set forth above, that the Bid Section is notified in a timely manner and receives any updates or corrections to the RFQ prior to the due date for responses, and the RFQ is removed from the site following expiration of the due date for responses. JEA Procurement Operational Procedures Part B: Small (Informal) Purchases Page 18 of 93

19 The Bid Section shall be responsible for posting the solicitation documents to the Informal Bids section of JEA.com. Informal solicitation documents posted to JEA.com will remain open for at least seven days from the date of posting. 3.4 Communication With Vendors During Informal Solicitation Process All questions during an informal solicitation should be directed to the Buyer. The Buyer will consult the Requestor and determine whether a response is required. The Buyer may chose to respond directly to the Vendor (in cases of simple clarification questions) or may chose to respond via addendum to all the potential vendors (in cases of responses that materially change the solicitation). The Requestor should make every effort to refrain from communicating directly with the Vendors during the informal purchase process prior to award. 3.5 Changes to an Informal Solicitation Prior to Award If, at any time during the informal purchase process, the Requestor s needs change, the Requestor shall immediately notify the Buyer of the change. Such changes may require details of the solicitation documents to be revised, such as delivery dates, estimated quantities, specification changes, or if budgetary constraints will require the cancellation of the purchase. 4.0 RECEIVING, OPENING AND EVALUATING RESPONSES TO INFORMAL SOLICITATIONS 4.1 Required Form of Responses to Informal Solicitations While Buyers may verbally request quotes for informal purchases under $50,000, bidders must respond with written quotes from vendors for all purchases over $5,000. For informal purchases, a response received via fax or may be considered a written response. Bidders should submit responses to informal solicitations according to the requirements stated in the solicitation. Informal bids are not publicly opened, but are subject to Florida Public Records Laws. The Buyer shall ensure that the respondents have accurately responded to the request (i.e. shall ensure that the goods or services proposed by the respondent match the requirements of the specifications, shall ensure price quotes are reasonable and accurately reflect the goods or services to be provided, shall ensure any required forms are completed and submitted, etc.) 4.2 Timeframe for Submitting Responses to Informal Solicitations In general, the Buyer should require bidders to submit informal bids within the following timeframes: Within seven days from the posting date, for purchases posted to the informal bids section of JEA.com, or Within three days from the date of notification of the informal solicitation. 4.3 Review of Responses to Informal Solicitations The Buyer shall review responses or price quotations received for completeness and compliance with the details stated in the solicitation. If work will be awarded based on factors other than JEA Procurement Operational Procedures Part B: Small (Informal) Purchases Page 19 of 93

20 price, the Buyer shall review responses for completeness and the Requestor shall utilize his or her technical expertise to evaluate the response for factors other than price, and to recommend a successful bidder. For informal purchases that may be awarded based on factors other than price, the Buyer shall obtain approval from the PCM, or designee, if the evaluation of the responses will be based on factors other than price. The Buyer shall obtain such approval prior to soliciting responses from vendors. The evaluations should consider all responses, but an extended evaluation process, such as is required for formal awards, is neither required, nor cost effective for informal purchases. For informal purchases of CCNA related professional services (i.e. services involving professional architecture, engineering, surveying or landscape design services as set forth in the CCNA statute), the Buyer and Requestor may utilize an informal evaluation matrix based on the scope of the purchase requirements to score the responses, as described above, provided that the estimated cost of planning or study work involving professional engineering or design services does not exceed $35,000. For informal purchases of CCNA related professional services, the Requestor may also utilize the Qualified Proposers List for a related category provided this is approved by their Director. When the cost of such services is estimated to exceed $35,000, the solicitation shall be conducted in accordance with the Formal Solicitation Process for CCNA type purchases, even though the purchase may fall within JEA s dollar limits for informal purchases. 4.4 When Only One Response Is Received to an Informal Solicitation If only one response is received to an RFQ for a Small Purchase (and the purchase was not intended as a sole source or standard, proprietary or OEM type purchase), then the Buyer and the Requestor shall establish the reasons why no other responses were received. If a satisfactory reason(s) is(are) found, reasonableness of the price received shall be vetted by the Buyer. The Buyer and Requestor may consider taking steps such as the following, if time permits, in making a determination as to the reasonableness the price: Conduct market research via the Internet, by contacting known suppliers, or by reviewing advertisements, catalogs or price indices for similar goods or services Compare price with prices received for previous purchases of the goods or services, or of similar goods or services. Consider experience or knowledge that Buyer or Requestor may have in purchasing the goods or services, or similar goods or services. If the Buyer and Requestor determine that the price is reasonable, they shall include a statement in the purchase documentation indicating any efforts taken to validate the reasonableness of the price and justify the award to the single respondent. 4.5 Documenting Informal Quotes and Bids/Proposals In general, the Buyer should keep documentation of Small Purchases to a minimum in order to maximize the efficiency of such processes. However, the following are minimum guidelines for the documentation Buyers should retain of the verbal and written quotes received for informal purchases: For verbal or written quotes for inventory items, Buyers should summarize the quotations on the purchase requisition form and print the form, and/or attach written quotations. JEA Procurement Operational Procedures Part B: Small (Informal) Purchases Page 20 of 93

21 For written quotes for non-inventory items, Buyers should attach written quotes to the resulting PO and store them in Oracle. 5.0 AWARD/APPROVAL OF SMALL PURCHASES The authority of various Procurement personnel to approve purchases depends on the estimated amount of the purchase. The following table summarizes the approval thresholds of Procurement personnel. Table 3: Procurement Personnel Small Purchase Approval Thresholds Estimated Purchase Amount Procurement Personnel Authorized to Approve Less than $20,000 Any Buyer, Senior Buyer or Procurement manager Over $20,000, but less than $50,000 Senior Buyer or Procurement manager Over $50,000, but less than $200,000 Procurement managers only 5.1 Award and Contracting Method for Informal Purchases For most informal purchases, JEA will issue a PO that includes JEA s standard PO terms and conditions as JEA s offer to buy specified goods or services from the vendor, and which shall serve as the sole contracting vehicle for the purchase. The vendor may accept JEA s PO either by signing to indicate written acceptance (if required), or more often, by simply delivering or performing the goods or services indicated. JEA will not accept the vendor s PO terms and conditions unless explicit approval is given by the Manager of Procurement Contracts, or designee. 4 The Buyer shall notify the Manager of Procurement Contracts of any vendor requested changes to JEA s standard PO terms and conditions, and waiting for approval. Buyers shall enter Purchase Orders into Oracle according to established procedures. The Manager of Procurement Contracts, or designee, may determine criteria under which additional terms and conditions (other than JEA s standard PO terms and conditions) may be required for an informal purchases. In such cases, JEA may issue a separate set of terms and conditions, in addition to issuing a PO. 5 In addition, JEA may conduct an informal purchase by means of a check request. Issuance of a check request, however, is generally limited to very small purchases ($5,000 or less) for which the issuance of a PO, or use of a Purchasing Card is not otherwise appropriate Cancellation of Informal Purchase or Postponement of Purchase 4 In rare instances, such as in purchases of software or software maintenance agreements, acceptance of a vendor s terms and conditions may be necessary to effect the purchase. 5 Additional terms and conditions, beyond those contained in JEA s standard PO, may be required, for instance, if the purchase may contain safety or environmental risks beyond those normally associated with a Small Purchase; for example, additional safety provisions may be required if a purchase for goods also includes on-site work such as installation, inspection or testing. 6 Examples of situations in which a check request may be issued may include situations such as subscriptions or contributions. JEA Procurement Operational Procedures Part B: Small (Informal) Purchases Page 21 of 93

22 In the event that a Small Purchase is cancelled prior to receipt of quotes or bids, the Buyer shall notify in writing any vendors that submitted responses to an RFQ for a purchase that was estimated to exceed $5,000, or if the vendor specifically requested notice of cancellation of the purchase. In the event that quotes are solicited for an informal purchase, but no award is made resulting from the solicitation, the Buyer need not retain documentation of the quotes or bids/proposals for goods or services unless bids/proposals were obtained in response to an RFQ for a purchase estimated to be $50,000 or greater. In the event that the Requestor must postpone the award, the Buyer shall retain quotes until expiration of the quotes, generally 30 days from the response due date, unless the solicitation stated quotes would be valid for a lesser or greater timeframe. 6.0 INCREASE IN DOLLAR LIMIT OF A PURCHASE ORDER FOR AN INFORMAL PURCHASE In the event that the dollar limit of a PO issued for a Small Purchase must be increased, the Requestor shall complete a purchase requisition indicating the reason for the change and the amount increase requested, and submit the purchase requisition for approval. Once approved, Oracle will forward the approved purchase requisition to the appropriate Buyer. The Buyer shall review the purchase requisition for completeness and request additional information, if necessary. The dollar limit of a PO for which the original amount was less than $200,000, may be increased by Procurement personnel depending upon the amount of the requested change, as follows: Table 4: Approval Guidelines for Increases to Small Purchase Orders If original award amount is and award amount after requested increase will be then approval is required from $0 to $50,000 $50,000 or less, Buyer up to his/her approval threshold, Procurement manager, or CPO $50,000 to $200,000 $0 to $150,000, and amount of Procurement manager or CPO change is less than or equal to 100% of original amount. $50,000 to $200,000 $0 to $150,000, but amount of CPO change exceeds 100% of original amount. $0, to $200,000 Over $200,000 Awards Committee If PO must be increased in amount that causes the total PO amount to exceed $200,000, the Requestor shall follow the established procedures for Change Orders to formal awards, which must be reviewed by the Awards Committee. The Buyer shall autocreate the change to the PO, if possible, to reflect the increase and shall include a summary of the reason for the change. The new PO will note that it is a Changed Purchase Order. If autocreate is not used, the Buyer shall ensure that the purchase requisition is JEA Procurement Operational Procedures Part B: Small (Informal) Purchases Page 22 of 93

23 cancelled immediately following the PO change. The PO number shall be used as the reason for cancellation. 7.0 PURCHASING CARD PROGRAM ( P-CARD ) JEA s P-Card program provides a convenient method for approved card holders to efficiently conduct Small Purchase transactions for specified types of purchases and within the dollar limits afforded to the card holder by Procurement s documented procedures found in, PROCEDURES OS A0500 PS 510 Purchasing Card.doc as amended from time to time. Procurement also conducts periodic audits of P-Card usage, in accordance with the established procedures. The CPO may authorize revisions to the P-Card procedures. Authorized personnel are encouraged to use the P-Card in lieu of the two-way match process for repetitive service contracts. JEA personnel should consult Purchasing Card Administrator and/or the established Purchasing Card procedures, retained by Procurement, regarding the use of P-Cards Small Purchases JEA Procurement Operational Procedures Part B: Small (Informal) Purchases Page 23 of 93

24 PART C: FORMAL AWARD AND SOLICITATION PROCESSES 1.0 OVERVIEW OF FORMAL PURCHASE AND AWARD PROCESS 1.1 Definition of Formal Awards Formal awards are those awards made for purchases of goods or services estimated to cost more than $200,000. Formal awards are conducted via JEA s established Formal Solicitation Processes whenever possible so as to ensure the best value for JEA and the most fair procurement of goods and services. The Formal Solicitation Process utilizes a variety of competitive solicitation documents and methodologies to procure goods and services depending upon the type of purchase and JEA s needs. Some purchases, even if less than $200,000, are required by law to be procured via a Formal Solicitation Process. 7 Other purchases, even though they may be more than $200,000, may be exempt from the Formal Solicitation Processes (e.g. sole source or emergency purchases) WHEN FORMAL SOLICITATION PROCESSES ARE USED The Formal Solicitation Process must be used for all formal award purchases, including construction and design-build services, unless one or more of the following applies to the purchase: Goods or services are specifically exempted by the JEA Board (see C(1.2) herein). Purchase may be justified as a sole source procurement. Purchase is an approved piggy-back on an existing contract. Note that the Formal Solicitation Process may be optionally used for Small Purchases if JEA determines that the impact of the purchase justifies the time and effort of conducting a competitive solicitation process. However, in such cases, approval by the Awards Committee is not needed. 1.2 Exceptions to the Formal Solicitation Process Purchases that would otherwise be subject to the Formal Solicitation Processes, but which the JEA Board has exempted from the Formal Solicitation Processes, include the following types of purchases: fuel and transportation of fuel by-products and transportation of by-products electric energy or electric generating capacity, including electric transmission electric transmission services including ancillary services interchange contracts and amendments thermal energy or thermal generating capacity, including its transmission real estate, including easements territorial customer agreements 7 These types of purchases are summarized in the section B(1.2) Exceptions to Small Purchase Procedures. JEA Procurement Operational Procedures Part C: Formal Award & Solicitation Processes Page 24 of 93