Okaloosa County BOCC — December 15, 2015 — APPENDIX C FDOT PROCURMENTrev — reading text

APPENDIX C THE FLORIDA DEPARTMENT OF TRANSPORTATION PURCHASING AND PROCUREMENT REQUIREMENTS (APPLIES TO ALL FTA PROCUREMENT) The Board of County Commission will adhere to all Florida Department of Transportation (FDOT) procurement requirements and regulations when utilizing FDOT funds (including FTA funds) for purchases and procurement, as may be amended from time –to-time. The Florida Department of Transportation Procurement Guidance for Transit Agencies manual can be found at: http://www.dot.state.fl.us/transit/Pages/ProcurementGuidanceforTransitAgencies201411. pdf. As used herein the term “Grantee” shall mean the County Department receiving and overseeing the grant funds. As a Grantee of FDOT transit grant funds, the Grantee shall ensure that it meets FDOT purchasing and procurement regulations in addition to applicable Federal Transit Administration (FTA) and County procurement regulations. The Grantee shall use a sub-recipient/grantee procurement checklist as a guide that will assist in ensuring that all necessary and required steps are undertaken during the procurement process. A sample sub-recipient procurement checklist is attached. When utilizing FDOT grant funds for purchasing or procurement, the Grantee shall adhere to the requirements for micro-purchases, small purchases and competitive procurements.  The Grantee shall obtain at least one (1) quote for Micro purchases, which are procurements less than $2,500 and shall make a determination that the price is fair and reasonable.  FDOT funded small purchases are procurements greater than $2,500 but less than $35,000. The Grantee will obtain a minimum of two (2) quotes as well as ensure all applicable FTA clauses are submitted to the vendor.  FDOT funded competitive procurements are procurements greater than $35,000. These procurements shall be competitively bid. The Bid documents shall be prepared and submitted to the FDOT District Office for approval prior to advertising. The Grantee shall ensure all applicable FTA Clauses and Certifications are included in the Bid documents. After the Bid process is complete, the procurement package with the selected bidder information shall be submitted to the FDOT District Office for approval before the final award is made. The Grantee shall perform several steps to ensure FDOT procurement compliance including conducting a cost analysis, a price analysis, making a fair and reasonable price determination and documenting the process and results for the determination, and completing a sole source justification analysis when applicable. PRICE ANALYSIS: The price analysis shall include a review of the proposed price by a supplier and make an assessment as to whether or not it is fair and reasonable. A determination that a price is fair and reasonable is a conclusion that the proposed price is fair to both parties, considering the quality needed, delivery requirements, and other factors. The basis for reaching this conclusion is found in the facts and information considered which shall be analyzed by the Purchasing Manager. A determination that a price is fair and reasonable shall be documented and kept in the procurement files with the price and/or cost analysis and the sole source justification (if applicable). COST ANALYSIS: The Grantee shall also conduct a cost analysis, which is different from a price analysis. The major difference is that a price analysis looks at the whole price. It does not involve an examination of the individual cost elements or components that collectively comprise the seller’s total price. A cost analysis actually examines the individual cost elements that comprise the total proposed price. Depending on the purchase, the elements may vary but generally include such things as labor rates, material costs, overhead or indirect rates, a cost of money factor, general and administrative expenses, and a profit or fee. SOLE SOURCE: There are a number of circumstances that a sole source procurement is necessary and reasonable. The Federal Transit Administration (FTA) Circular 4220, Chapter VI, lists the acceptable circumstances. The justification needed is simply a memorandum or internal sole source justification form in the contract file explaining the rationale for the procurement falling into one of the listed circumstances. The memo or form should be signed by someone in authority that can certify to the relevant facts. Other applicable approval signatures should appear on the memo/form or be attached. The Grantee shall process the procurement internally through the Purchasing Division, with a written memorandum of the facts justifying a noncompetitive procurement. The Grantee shall process a sole source justification which is reviewed and approved by the Purchasing Division each time it enters into a new contract agreement or an extend an existing contract, unless the period of the extension was covered by an original justification or by competition which asked for priced options which were in turn evaluated for the initial award. PROCUREMENT SUMMARY: The Grantee shall also complete a written procurement summary of the proposed purchase or procurement summarizing the method of procurement, reason for the procurement, contract type and the basis for the contract type. The written procurement summary shall be reviewed and approved by the Purchasing Division. Samples of FDOT procurement forms, applicable rules and requirements can be found in the Florida Department of Transportation Procurement Guidance for Transit Agencies manual.