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HomeMy WebLinkAbout20163449.tiffCheryl Hoffman From: Sent: To: Subject: Attachments: Follow Up Flag: Flag Status: Cheryl, Trevor Jiricek Monday, October 31, 2016 8:53 AM Cheryl Hoffman Purchasing Code Modifications - FINAL - Oct 2016.docx Purchasing Code Modifications - FINAL - Oct 2016.docx Follow up Flagged Here is the purchasing code changes. From the original version I sent you last week I have only changed 5-4-10.1. 2016-3449 Sec. 2-4-10. - Appeals process. The Board of County Commissioners shall act as a board of appeals to hear complaints on actions taken by County boards, commissions and departments. Except for decisions made by the Board of Adjustment and Uniform Building Code Board of Appeals, procedure for appeals shall be as set forth in this Chapter, by resolution of the Board, or as otherwise provided by law. Any person appealing an action by a County board, commission or department to the Board of County Commissioners shall file such a complaint, in writing, with the Clerk to the Board within sixty (60) days of the incident in question. Appeals concerning purchases or procurements made in accordance with Chapter 5, Article IV, of this Code shall be filed within five (5) days of the incident in question. B. Such complaint shall include: 1. The name of the employee, board, commission or department against which the complaint is made. 2. A description of the basic facts involved in the complaint. C. The Clerk to the Board shall schedule a hearing with the Board of County Commissioners, to be held within fifteen (15) days of the filing of the complaint, and shall notify all parties involved in the incident. D. The Board of County Commissioners shall hear all the available facts pertinent to the incident, may schedule a second hearing within thirty (30) days following the initial hearing if the Board determines such a need, and shall render a determination within thirty (30) days of the final hearing. E No person shall be denied the right to appeal, provided that he or she complies with the administrative procedures established by the Board. Sec. 5-4-10. - Statement of policy. A. The Local Government Budget Law of Colorado, Section 29-1-103, C.R.S., provides that each local government shall adopt an annual budget. Such budget shall present a complete financial plan for the ensuing fiscal year. It shall set forth all proposed expenditures for the administration, operation and maintenance of all offices, departments, boards, commissions, and institutions of such local government, including publicly owned and operated utilities and enterprises. Section 29-1-113, C.R.S., and Section 14-2 of the Home Rule Charter provide that, before the beginning of the fiscal year, the Board of County Commissioners shall enact an ordinance making appropriations for the ensuing fiscal year. The amounts appropriated for the offices, departments, boards, commissions and other sending agencies shall not exceed the amount fixed therefore in the budget adopted by the governing body. B. Section 29-1-110, C.R.S., provides that, during the fiscal year, no officer, employee or other spending agency shall expend or contract to expend any money, incur any liability or enter into any contract which, by its terms, involves the expenditures of money in excess of the amounts appropriated. Any contract, verbal or written, made in violation of this Section shall be void and no moneys belonging to a local government shall be paid on such contract. Subsection 3-8(4)(m) of the Home Rule Charter provides that all contracts must be approved and executed by the Board of County Commissioners. The Chair of the Board shall sign all contracts unless otherwise delegated. C. Section 29-1-115, C.R.S., provides that any member of the governing body of any local government or any officer, employee, or agent of any spending agency, who knowingly or willfully fails to perform any of the duties imposed upon him or her, by this Article, or who knowingly and willfully violates any of its provisions is guilty of malfeasance in office and, upon conviction thereof, the court shall enter judgment that such officer so convicted shall be removed from office. Any elector of the local government may file an affidavit regarding suspected malfeasance with the District Attorney, who shall Page 1 investigate the allegations and prosecute the violation if sufficient cause is found. It is the duty of the court rendering any such judgment to cause immediate notice of such removal to be given to the proper officer of the local government so that the vacancy thus caused may be filled. D. Accurate records of expenditures and encumbrances must be kept by the Department of Finance and Administration so that department heads and elected officials can be informed on a timely basis of expenses and obligations in comparison to the adopted budget of the County. By utilizing a consistent policy of purchasing procedures, the County's elected officials and department heads will find it easier to comply with the provisions of the state statutes and the Home Rule Charter. E. This Article will provide reference for questions that may arise, and will assist in prompt procurement consistent with economy. F. The Home Rule Charter provides that Central Purchasing shall establish, maintain and operate the Central Purchasing Office for the County. Responsibilities of the Purchasing Office shall include the receipt of quotes and the purchase of supplies, materials, property, equipment, and inventory pursuant to policies and procedures established by the Board of County Commissioners and in accordance with the Charter and the laws of the State. The policy of the Department of Purchasing in the discharge of these duties will include, with the assistance of other departments and agencies, the establishment of reliable and reputable sources of supply, the fostering of competition, and good procurement practices consistent with timely accomplishment of its goals. All negotiations will be conducted on the highest level of business ethics. All contact with existing or potential suppliers after submission of a purchase requisition shall be made by, or with the knowledge and approval of, the Department of Purchasing or the delegated Department Head (elected official). While establishing and maintaining satisfactory supplier relationships, the acceptance or solicitation of entertainment, loans, gifts, or special considerations by any County personnel will not be permitted. G. Compliance with the provisions of this Article is mandatory. Any provisions which adversely affect the performance of any department's vital services shall immediately be called to the attention of the Director of General Services. H. It shall be deemed a violation of this Article for any County personnel to: 1. Violate the Standard of Conduct or the Code of Ethics for a local government official or County employee as prescribed by Article 18 of Title 24, C.R.S. 2. Knowingly exaggerate requirements for the purpose of temporarily receiving a better price. 3. Knowingly underestimate requirements or deny the existence of a requirement to avoid doing business with a particular supplier. 4. Knowingly misrepresent a competitor's prices, quality, or services to obtain concessions. 5. Purchase goods or services without proper procedures. ANY GOODS OR SERVICES PURCHASED WITHOUT PROPER PURCHASING PROCEDURES WILL NOT BE PAID FOR BY THE COUNTY AND WILL BECOME THE PERSONAL LIABILITY OF THE INDIVIDUAL MAKING COMMITMENT TO THE VENDOR FOR THE ILLEGAL PURCHASE. I. 1. A Weld County employee or elected official will avoid any activity that would create an actual or perceived conflict between personal interests and the interests of Weld County. If any of the following conflicts exist the employee or elected official shall immediately notify the Purchasing Director and remove himself/herself from the procurement: a. The employee or elected official or any member of the employee's family has any financial interest r el a t e d to a specific Weld County procurement. b. A business or organization in which the employee or elected official or any member of the employee's family, has a financial interest pertaining to the Weld County procurement. Page 2 2. For the purpose of this section of the Code, "Family" means spouse, child, parent, stepparent, stepchild, sibling, half -sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, sister-in-law, brother-in-law, grandparent, spouse's grandparent, step -grandparent, grandchild, step -grandchild, foster parent, foster child and guardian. Any employee found in violation of the provisions of this Section will be subject to disciplinary actions. Sec. 5-4-20. - Relationship with vendor's representatives. The relationship between the purchaser and the seller is one of mutuality. No contract that proves unsatisfactory to the vendor can be regarded as totally satisfactory to the buyer. It is the responsibility of the Department of Purchasing and individual departments to establish a relationship of mutual confidence and satisfaction between the County and its suppliers. A. The individual departments should not be burdened with unsolicited visits from suppliers. To avoid this, they should observe the following procedures: 1. All unsolicited vendor's representatives will be referred to, and received by, the Department of Purchasing; and when necessary for them to talk with department heads or elected officials, the interview will be arranged by the Department of Purchasing. If an unsolicited vendor should contact the department directly, he or she shall be immediately referred to the Department of Purchasing. No unsolicited vendor is permitted in departments unless approval is received from the Department of Purchasing. 2. The Department of Purchasing will inform or distribute to department heads (elected officials) any useful information received from interviews, catalogs, advertising, e-mail, etc. B. During the course of business, it is recognized that the individual departments will need to conduct analysis of products in regards to quality, costs, flexibility, and applicability. Therefore, individual departments may solicit visits from supplier(s) for demonstration purposes. 1. Solicited demonstrations or product inquiries can be explored by either individual departments or the Department of Purchasing. 2. Interactions during these solicitations and demonstrations shall comply with ethical standards of conduct. Sec. 5-4-30. - Bid regulations. A. Section 14-9 of the Home Rule Charter specifies that: 1. The Board of County Commissioners shall adopt bidding procedures for county purchases which shall assure open and competitive bidding on all county purchases, and the Central Purchasing Division shall follow the procedures adopted in all county purchases. 2. Bid specifications shall be prepared in such a manner as to invite and encourage bidding from all suppliers of the goods and equipment being purchased by the County. No specifications shall be submitted to bidders so restrictive in detail as to eliminate any line of competitive equipment. 3. The County Commissioners shall give preference to resident Weld County bidders in all cases where the bids are competitive in price and quality. 4. The County Commissioners shall enter in the minutes of the meeting, at which a purchase is made for other than a low bid, the reason for not accepting the low bid. Page 3 5. All purchases in excess of an amount to be set annually by the Board of County Commissioners by ordinance shall be by written, sealed bid and bids over the amount set annually by ordinance by the Board of County Commissioners shall be followed by a ten-day period for consideration and investigation of the bids submitted to determine comparisons of quality and price. The ten- day waiting period may be waived by resolution of the Board for emergency purchases. The Commissioners shall accept the bid they find to be most beneficial to the County. B. Section 30-11-110, C.R.S., specifies that it is unlawful for any board of county commissioners of any county to accept any bid or make a purchase of any books, stationery, records, printing, lithographing or other supplies for any officer of its county, from any person, company or corporation having its manufactory or principal place of business outside the State, when the same can be procured from some person, company or corporation having its manufactory or principal place of business within this State and at a net cost which shall not exceed the amount for which such books, stationery, records, printing, lithographing or other supplies can be procured and delivered to the County by any person, company or corporation having its manufactory or principal place of business without the State. C. Section 43-2-209, C.R.S., specifies that: "Contract for work on highways - advertise for bids. If any board of county commissioners desires to let out any work on the county highways by contract, it may advertise in a legal newspaper in the county or post a notice in the county courthouse, for a period of not less than ten days before the contract is let, for sealed proposals for performing the work. When a contract for work on highways involves expenditure equal to, or greater than, the amount at which a contract requires a contractor's bond under Section 38-26-105, C.R.S., the board of county commissioners shall advertise in a newspaper as provided in this Section unless such advertisement, in the judgment of the board, would be detrimental to the immediate preservation of the public peace, health, and safety. The advertisement must describe the work to be done and its location and must refer all persons to the person holding the plans and specifications therefore, and such contract shall be awarded to the lowest responsible bidder, the board reserving the right to reject any bids proffered. The cost of any county highway work mentioned in Sections 43-2-208 to 43-2-210 may be paid out of the county road and bridge fund or emergency road fund, as the board may determine." D. The Department of Purchasing shall continually strive to increase competition and obtain new sources of supply. Bidding shall be open and unrestricted; however, the County shall not be obligated to solicit bids from every supplier for every requirement. Quotations and bids shall be based on established standards and specifications whenever possible. Sec. 5-4-40 - Definition of terms. The following terms shall be used with the given definitions when used throughout this Section: A. Department: The term "Department" includes all offices of the Weld County Government. B. Purchases: The term "Purchases" is defined and categorized as follows: 1. Small Purchases are goods and services for less than $5,000.00. 2. Informal Purchases are those transactions of $5,000.00 and up to $25,000.00. 3. Formal Purchases are those transactions greater than $25,000.00 and must be processed through the Purchasing Department. C. Purchase Order: A Purchase Order is a document issued by the Department of Purchasing to a supplier that specifies the goods or services to be purchased. An official Purchase Order includes the signature of the Director of General Services. The Controller can sign Purchase Orders during the absence of the Director of General Services. Page 4 D. Requisition: A Requisition is a request to the Purchasing Department to purchase specified goods or services. Requisitions ensure that the purchase is appropriately approved, budgeted, and that the County is receiving a competitive price. Requisitions should include: 1 Organization making request. 2. Name of originator. 3. Specifications of product/service. An accurate description and specification for every item listed, including catalog/part/model numbers, size, color, etc., but not so restrictive as to unduly limit competitive bidding. 4. Estimated cost for each item. If pricing was obtained, the quotation(s) should be noted on the requisition. Copies of all quotes and other relevant information should be submitted with the requisition or referenced on electronic requisitions, scanned and emailed, or sent via County mail. 5. Quantity needed. 6. Account to be charged. 7. Department Head (elected official) or designee approval. 8. Recommended supplier(s), if known. 9. Delivery. Delivery instructions, stating specifically delivery date and location. 10 Other pertinent information. Sec. 5-4-50. - General information. A. A smooth flow of requisitions, purchase orders, and invoices must be accomplished. Departments can assist by giving the Department of Purchasing as much time as possible to fill an order. The Department of Purchasing shall endeavor to complete the order in a reasonable amount of time. If there are problems or complaints that cannot be worked out between departments and the Department of Purchasing, the Director of General Services should be notified. B. The purchasing agent shall purchase only those supplies, materials, and equipment requested by a using department. The agent will, however, keep department personnel informed on price changes, deliveries and other information that is in the best interest of sound County fiscal policy. C. The Board of County Commissioners may, by motion or resolution, purchase an item of used equipment which, by its very nature is not biddable as a practical matter. D. All provisions of the Home Rule Charter prohibiting employees and elected officials of the County from doing business with the County shall be strictly adhered to in connection with the purchase of all supplies, services, materials, and equipment by the Department of Purchasing and department heads. E. Departments are encouraged to seek the assistance of the purchasing staff as early in the acquisition process as possible and as necessary. It is at the beginning of the process that using departments can realize the major benefits provided by the Department of Purchasing staff, who will suggest products or services to meet the using department's needs; contact vendors to obtain literature and set up demonstrations; obtain price and delivery information; and investigate alternatives, including their advantages, disadvantages, and costs. These services are available to the using department as soon as it decides to solve a supply problem. Departments should contact the Department of Purchasing prior to budgeting and/or submitting a requisition. F. Special circumstances for negotiated purchases without bid. Purchase Orders and contracts may be awarded by the Board of County Commissioners without the requirement stated in this Section in any of the following cases: Page 5 1 In the event no bids are received for an item, the Director of General Services is authorized to negotiate a purchase on behalf of the County. 2. Service on existing equipment if it is to the County's advantage to obtain parts, repair or service on existing equipment, its supplies or software from a factory -authorized dealer or manufacturer. Sec. 5-4-60. - Purchasing limits and procedures. These procedures are adopted pursuant to Section 14-9 of the Home Rule Charter. As discussed in Section 14-9, all purchases shall assure open and competitive bidding. All bid specifications shall be prepared in such a manner as to invite and encourage bidding from all suppliers. No specifications shall be submitted to bidders so restrictive in detail as to eliminate any line of competitive equipment. In all cases, the County shall reserve the right to reject any and all bids and/or select the bid which is in the best interest of the County. A. Small Purchases. Purchasing authority has been delegated to the Department head of each Department for those transactions under $5,000.00 and within their budget. Small purchases do not require quotes or a purchase order; however, Departments are expected to make purchases in the best interest of the County. Acquisitions of products and services under $5,000.00 may be handled three ways: 1. Submission of a formal requisition request to Purchasing, 2. Use of a procurement card (subject to the limitations of Section 5-4-200), or 3. Invoice generated by vendor for a direct pay. Informal Purchases. Purchasing authority has been delegated to the Department head of each Department for those transactions between $5,000.00 and $25,000.00 and within their budget. Departments may request, via a requisition, the Purchasing Department to request quotes and conduct the transaction. Quotes should be sought to foster fair and open competition and to achieve maximum economy for the County. The amount of money being spent for the goods or services should cover a 12 -month period. Quotes should not be awarded, within a 12 -month period, to the same or similar vendors to avoid doing a Formal Bid. 1. The informal bid process consists of: a. Submission of a formal requisition request to Purchasing or a direct department solicitation to qualified vendors. b. Either method should consist of a minimum of three (3) bids (whenever possible) with results sent to Purchasing to be maintained as a public record. The quotations may be in writing, e-mail, via telephone, or via facsimile. If by telephone, a complete record of the transaction must be maintained, to include, as a minimum, the following for each supplier contacted, including suppliers from whom quotes were solicited, but did not bid or respond: supplier name, quoted by (name), date of quotation, and quoted price. c. When using previously obtained bids to purchase products or services, such bids shall have been obtained within twelve (12) months of purchase. 2. Payment for acquisitions of product and services can be secured through: a. Purchase order initiated by Purchasing, b. Use of a procurement card (subject to the limits of Section 5-4-180), or c. Invoice generated by vendor for a direct pay. 3. If the low bid is found unacceptable because of some factual circumstance, the Department should write a clear, concise, and factual justification for not accepting the lowest bid. Page 6 4. All informal bid prices received shall remain confidential until the award is made. After the award is made, all information regarding the bid shall be open for public inspection during regular business hours. 5. In the event items do not meet specifications, the Department of Purchasing or individual Department may reject the bid or, at its discretion, ask for additional documentation from the vendor regarding evidence of why the alternate will satisfy the need. If documentation justifies, the County may invite the vendor to provide a demonstration. Based upon data and/or demonstration, the Department of Purchasing or individual Department may accept an alternative bid. C. Formal Purchases. All vehicle purchases and purchases over $25,000.00 must go through the formal bid process. The formal bid procedures may be used for purchases under the amount established by the annual purchasing ordinance (twenty-five thousand dollars [$25,000.00]) when the best interest of the County so dictates. 1 All bidding shall be in accordance with, and pursuant to, Section 14-9(1)-(5) of the Home Rule Charter. All purchases in excess of an amount to be set annually by the Board of County Commissioners by ordinance shall be by written, sealed bid, and bids over the amount set annually by ordinance (twenty-five thousand [$25,000.00]) by the Board of County Commissioners shall be followed by a ten-day period for consideration and investigation of the bids submitted to determine comparisons of quality and price. The ten-day waiting period may be waived by resolution of the Board for emergency purchases. The Commissioners shall accept the bid they find to be most beneficial to the County. Prior to advertising for such bids, the purchasing agent shall verify that the purchase is authorized in the current budget. 2. At the discretion of the Director of General Services, formal bids may be advertised in the official county newspaper, except as statutorily required, and may be advertised in other publications or media, such as an online bid advertisement service. Such advertisement shall include, but not be limited to, the following: a. General description of the required commodity or service. b. The location to obtain required bid documents. c. Cost of bid documents (if applicable). d. Amount of bid bond (when applicable). e. Time and place of bid opening. f. Reservation of the right to: (1) Waive informalities, (2) Reject all bids, or (3) Accept the proposal deemed most advantageous to the best interest of the County. 3. Invitations to bid shall be sent to all appropriate vendors on the County's vendor list and/or through the appropriate online bid advertisement service categories. The County may send invitations to other qualified vendors and/or by advertising on the internet or through direct solicitation. 4. When bids are received, they shall be stamped with the date and time received, initialed by the person receiving them, and filed until opened. After the bids are opened, the proposals shall be reviewed by the purchasing agent and the department head who initiated the requisition. 5. All formal bids shall be publicly opened at the time and place indicated in the advertisement or as specified in the bid documents. If bids are submitted by email or facsimile, the vendor must include the following statement, "I hereby waive my right to a sealed bid." Bidders are invited, but are not required, to attend the bid opening. 6. The Department of Purchasing may introduce "other source" bids that serve the best interest of the County. "Other source" bids are quotes for products and/or services which are obtained from entities such as on-line sources, direct -buy from manufacturers or Page 7 wholesalers, published catalogues, or other sources which may increase competition and reduce cost. 7. Formal bid review and award. When evaluating bids, consideration may be given, but not necessarily limited to some or all of the following: price, bidder's previous record of performance and service (internal/external), ability of bidder to render satisfactory service in this instance (i.e., training, maintenance and repairs), availability of bidder's representative to call upon and consult with the end users, quality and conformance to specifications, delivery schedule, life cycle costs, warranty. a. The department head and the purchasing agent will make a recommendation to the Board of County Commissioners. The final award of the bid will be approved by the Board of County Commissioners. If the low bid is found unacceptable because of some factual circumstance, the Department should write a clear, concise, and factual justification for selecting other than the low bid. b. Per Section 14-9(3) of the Weld County Home Rule Charter, the County Commissioners shall give preference to resident Weld County bidders in all cases where the bids are competitive in price and quality. c. Per Section 14-9(4) of the Weld County Home Rule Charter, the County Commissioners shall enter in the minutes of the meeting, at which a purchase is made for other than a low bid, the reason for not accepting the low bid. d. Exceptions to this section include sole source purchases and professional services approved by the Board of County Commissioners. 8. Best and Final Offer (BAFO). When deemed to be in the best interest of the County, the Director of General Services or the applicable department head may request a BAFO as a part of any Formal Purchase. Any request for a BAFO should be made following all pertinent discussions, questions, and all addendums made to clarify full understanding of, and responsiveness to, the solicitation requirements. Vendors shall be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals. All pricing and information shall remain confidential until the successful proposal is accepted by the Board of County Commissioners. a. Best and Final offers shall be requested in writing. The request shall include: 1. Notice that discussions are concluded. 2. Notice that this is an opportunity to submit a Best and Final Offer. 3. A due date for submission of the Best and Final Offer. After receipt and analysis of BAFO's, proposals shall be evaluated and a recommendation made to the Board of County Commissioners in accordance with this section of the Code. Sec. 5-4-70. - Questioned purchase requisitions and purchase order changes. A. The Director of General Services has the right and duty to question any item on a requisition that may be unnecessary and/or unreasonable. B. The Director of General Services has a duty to question increases to purchase orders to ensure the appropriate change order was obtained. C. The Director of General Services does not, however, assume the authority to refuse to authorize the purchase of the item requisitioned or the increase in the purchase order, which is authorized through the Accounting Department. Page 8 D. In the event of a questioned requisition or purchase order change, the matter will be brought to the attention of the Board of County Commissioners which, in its capacity, will make the final administrative determination concerning the purchase. Sec. 5-4-80. - Expenditures not requiring a procurement process. A. It has been determined that it is in the best interests of the County to exempt certain purchases of goods or services from the requirements of this code. The following is a list of the expenses which will be processed for payment in the Department of Accounting without a requisition and purchase order: 1. Notices. Notices placed in newspapers or other publications for any County business. 2. Allocations to outside agencies. Payments made to agencies outside County government for which an amount was determined at budget hearings. (Nonprofit agencies, libraries, cities, etc.) 3. Auto mileage and personal reimbursements. Reimbursements to County employees or individuals for expenses paid out-of-pocket. Mileage shall be reimbursed at the current rate per mile for authorized travel on County business. 4. Fees paid for autopsy services. 5. Dues, meetings and travel expenses. Dues to organizations, registration fees for seminars and conventions, and expenses incurred while attending seminars and conventions such as hotel bills, food, cab fare, etc. Education and training expenses. Fees paid to organizations for training of County employees (including Manpower and other Department of Human Services clients). 7. Expert witnesses. Expert witnesses called by the District Attorney, County Attorney or Sheriff to testify in the County's behalf. 8. Postage. Stamps, postage -paid envelopes or postcards. 9. Rent payments. Monthly rental payments for office equipment, buildings, vehicles, etc. 10. Telephone. Regular telephone bills or telephone answering service. 11. Transcripts. Transcripts for the District Attorney, County Attorney or other County offices. 12. Utility bills. Monthly charges for electrical, water and gas (including propane) service. 13. Insurance claims. Payment for insurance claims paid out of the Insurance Fund under the County's protected self-insurance program. 14. Library books, subscriptions, and publications. Publications, books, magazines, or published materials. 15. Vehicle fuel. Gas, diesel, and propane. 16. Computer support. Computer hardware, software, maintenance, and supplies when determined by the Director of Information Technology not to be competitive resources compatible to the County's computer environment. 17. Repair and maintenance agreements for office equipment such as copiers and furniture, etc. (Exception: When the vendor requires a Purchase Order prior to working on equipment.) 18. Non -routine repairs, maintenance, and service agreements required by the Director of Buildings and Grounds to maintain County facilities. 19. Towing. Vehicles towed by the Sheriff or emergency towing of County vehicles. 20. Medical and fringe benefit claims. Payment made for insurance claims or flexible benefit accounts. Page 9 21. Photo reproduction. 22. Petty cash. Reimbursements to petty cash funds. 23. Waived items. The Director of General Services may waive the requirement for Requisition and Purchase Order when warranted by circumstances. 24. Equipment rental. The Director of General Services may approve rentals of short-term duration not to exceed thirty (30) days or twenty-five thousand dollars ($25,000.00). The Director of Public Works and the Director of Buildings and Grounds may approve rentals of short-term duration not to exceed thirty (30) days or twenty-five thousand dollars ($25,000.00) for their respective departments. Rental of equipment is subject to the requirements of Section 5-4-60.B. of this Article. Only the Board of County Commissioners may approve rentals that exceed thirty (30) days or twenty-five thousand dollars ($25,000.00). 25. Medicine and supplies. The purchase of medicines and supplies by the Director of the Department of Public Health and Environment in cases where criteria other than price are considered paramount; i.e. safety and quality. 26. Items purchased from current state, federal, GSA or other cooperative contracts. 27. Emergency purchases when: a. Human life, safety, health, or County property is in jeopardy. b. Repairs of equipment involving hidden dangers. c. Repairs are immediately needed for equipment where delay would lead to higher expense. 28. Items which are proprietary (software, etc.). 29. OEM (Original Equipment Manufacturer) requirements for equipment under lease, rental, warranty or maintenance. 30. Design limitations and compatibility with existing equipment. 31. Professional services that do not lend themselves to competitive bidding. Professional Service Agreements are contracts with persons or entities which due to their experience, education, and expertise, provide technical or specialized services. With approval of the Board of County Commissioners, Professional Services may be obtained without following the requirements of this Chapter. 32. Ammunition. The purchase of ammunition where criteria other than price are considered paramount; i.e. quantity, quality, delivery date. Sec. 5-4-90. - Sole source purchases. Purchases may be exempt from the quote and bid process if there is only one appropriate vendor. Some equipment designation effectively eliminates competition, so support documentation will be required on the requisition to explain why only a particular brand or service is acceptable. A sole source situation could arise because of compatibility with existing equipment due to the fact that the product or service is patented or copyrighted. Such purchases, when identified and justified by the requesting department and upon concurrence of the Purchasing Director, shall be exempt from the quote and bid process. The Purchasing Department will maintain records of all sole source justifications. Any sole source purchase over $25,000.00 will require approval from the Board of County Commissioners. Sec. 5-4-100. - Cooperative purchasing. Page 10 A. The purchasing agent may participate in joint bidding with other public agencies if it is deemed in the best interests of the County. B. The Board of County Commissioners can accept any of the state bids without rebidding the same goods/services at the discretion of the Board of County Commissioners or the Department of Purchasing. C. When determined to be in the best interest of the County, the Board of County Commissioners may select vendors or screen qualifications from other government procurement processes when those processes meet or exceed those described in this Code. Sec. 5-4-110. - Emergency purchases. A. Only the Department of Public Works, Office of Emergency Management, Department of Public Safety Communications, and Department of Buildings and Grounds are authorized to make purchases outside regular business hours and then only when failure to do so would result in cessation of vital services. Emergency purchases must be justified to, and assigned an emergency purchase order number by, the Department of Purchasing. Purchases not truly an emergency or abuse of emergency purchases by the above departments will be considered unauthorized purchases as specified in Paragraph 5-4-10.H.5 of this Article. B. As described in Sections 2-15-60 and 2-16-60 of this Code, in the event of activation of the Continuity of Government (COG) Plan or Emergency Operations Center, all purchasing rules set forth in this Chapter shall be suspended, subject to Board of County Commissioners review. In the event the Continuity of Government Plan is activated, the COG TEAM LEADER designated by the Board of County Commissioners and/or the Weld County Director of Finance and Administration shall have the authority, subject to Board review, to approve any purchases that are necessary in order to continue the County government. In the event the Emergency Operations Center is activated, the Director of the Weld County Office of Emergency Management, the Weld County Director of Finance and Administration and the Weld County Director of General Services shall have the authority, subject to Board review, to approve any purchases that are necessary in order to ensure the continuation of vital services and to continue the Emergency Operations Center and incident command operations. C. Informal purchase. In the event of a County -declared emergency disaster or other warranted conditions, the Board of County Commissioners may set an alternative amount (found in Appendix 5- L) for informal purchases in order to expedite the procurement process to speed response and recovery. Ten-day waiting period. Per Section 14-9 of the Weld County Home Rule Charter, the ten-day waiting period for sealed bids and bids over the amount set annually by ordinance (found in Appendix 5-L) by the Board of County Commissioners may be waived by resolution of the Board for emergency purchases. Sec. 5-4-120. - Procurement by the Department of Information Technology. The Weld County Department of Information Technology shall purchase all information technology resources, including, but not limited to, electronic hardware, software, and services for all County Departments, with exception to the Department of Public Safety Communications as described in Section 5-4-125. All purchases shall be conducted in accordance with the policy and procedures set forth in this Chapter and in the Information Technology Procurement Policy of Chapter 9, Article IX of this Code. All non -IT resource purchases, such as furniture, office supplies, etc., shall be purchased by the Department of Purchasing. Page 11 Sec. 5-4-125. - Procurement by the Department of Public Safety Communications. The Weld County Department of Public Safety Communications shall purchase all information technology resources, including, but not limited to, electronic hardware, software, and services of the Department. All purchases shall be conducted in accordance with the policy and procedures set forth in this Chapter. All non -IT resource purchases, such as furniture, office supplies, etc. shall be purchased by the Department of Purchasing. Sec. 5-4-130. - Procurement by the Department of Human Services. The Department of Human Services shall procure all needed professional services required by the Department and as approved by the Board of County Commissioners. Procurement shall be conducted in accordance with the policy and procedures set forth in this chapter and/or the requirements of any grant, contract, or other funding requirements. All non-professional services, such as furniture, office supplies, etc., shall be purchased by the Department of Purchasing. Sec. 5-4-140. - Contracts for professional services or independent contractors. Individuals or companies hired to perform services, independent contract work, or provide goods or materials, awarded through the formal bid process (>$25,000.00), shall enter into a contract approved by the County Attorney. The Director of General Services may waive the requirement for a contract on a case - by -case basis. Contracts may be required by the Director of General Services for informal purchases (<$25,000.00) on a case -by -case basis. A. Selection process: 1. The selection of individuals or companies to perform professional services work shall be conducted in accordance with purchasing procedures described in this chapter. Selection criteria may vary with each specific service. 2. If the needed service or materials can be provided by other than a sole source, a request for proposal or request for quote will be made by the Department of Purchasing with assistance from the requesting department. In the case of a sole source, the Department of Purchasing will make the determination that no other qualified vendor is available or practical for use by the County. In cases of a sole source, the reason or reasons for specifying the sole source must be stated in the signed contract for the record. B. Contract Establishment 1. Department employees with designated contract management authority for goods and services shall follow the procurement procedures. In addition, the designated department contract manager or representative shall enter the contract into the contract management system for review and appropriate signatures. The following are generally required: a. Review and coordination with the County Attorney to develop the contract which ensures proper liability indemnification and insurance statements are incorporated. b. Obtain contractor's legal representative signature on contract. c. Review and approval by Department Head. d. Review and approval by the Director of General Services. e. Review and approval by Director of Finance and Administration, or designee. f. Coordination with the Clerk to the Board so contract can be presented to the Board for final approval. Page 12 2. Department employees with contract management authority shall ensure the appropriate certificate of insurance and bonding documentation is secured prior to permitting work to be performed. If possible, this documentation shall accompany the contract presented for Board approval. If not possible to accompany contract, the documents shall be provided to the purchasing agents for inclusion into record keeping. C. Approval Process: 1. State statutes and Section 3-8(4)(m) of the Weld County Home Rule Charter requires that all contracts must be approved by the Board of County Commissioners and signed by the Chair of the Board in order to be valid. Unless otherwise authorized, prior to consideration for approval by the Board of County Commissioners, the contract shall be approved by the County Attorney, the Department Head originating the contract, the Director of General Services and the Director of Finance and Administration, or designee. 2. Approval by the Board of County Commissioners shall follow the procedures described in Section 2-1-40 of this Code. D. Modifications to contracts. Every contract change order, renewal, term modification, or price adjustment (in excess of the original contract amount) must be approved. 1. Modifications under twenty-five thousand dollars ($25,000.00) (cumulative) to service contracts can be approved by the department head or designee, or elected official. Modifications over twenty-five thousand dollars ($25,000.00) (cumulative) to service contracts must be approved by the Board of County Commissioners. 2. Modifications including, but not limited to, change orders, term modifications or price adjustments (in excess of the original contract amount) to capital improvement construction contracts, must be approved by the Board of County Commissioners. a. The Chair of the Board is authorized to enter into and sign contracts and agreements for all change orders to contracts for construction projects of up to five percent (5%) of the original contract amount, not to exceed twenty-five thousand dollars ($25,000.00) (cumulative). E. Term of Contract. When it is in the best interest of the County, contracts can be on a multiple - year basis with renewals at the option of the County and approval by the Board of County Commissioners. F. Contract Implementation. Department Heads (and elected officials) are responsible for implementation of the requirements and specifications of all contracts with their Department. G. Contract Administration. The user Department will be responsible for monitoring and documenting contractor performance/compliance. All documentation of non-compliance should be shared with the Director of the Purchasing Department, the County Controller and the County Attorney. If poor performance or non-compliance with the contract by the contractor occurs, the Department will notify the Director of Purchasing,_ the County Controller, and the County Attorney. The Purchasing Department in coordination with the user Department, will be responsible to initiate corrective action with the vendor. Sec. 5-4-150. - Qualification -based selection process for professional services. A. Applicability. This qualification -based selection (QBS) process must be used whenever required by state or federal law. Appendix 5-P provides additional guidance. B. QBS procedure. Page 13 1. Step 1: RFQ. A Request for Qualifications ("RFQ") shall be advertised by the Department of Purchasing, outlining general project requirements and proposal guidelines. a. The RFQ may be advertised at the time that a project need arises or prior to any project need arising. If the RFQ is not project -specific, the RFQ shall be advertised annually, in order to create a short list of qualified individuals or firms that are able to provide professional service. Nothing in this Section precludes the County from accepting qualifications and/or vendors as allowed in Section 5-4-60 of this Article. b. Individuals or firms responding to the RFQ shall submit a statement of interest to the Department of Purchasing by a designated date. Such statements shall address the categories provided in Appendix 5-Q. c. The department head or elected official shall designate a review team which shall review the individuals/firms based upon their statements of interest according to the criteria provided in Appendix 5-Q. The Director of General Services, or his or her designee, shall participate on every review team. The review team shall create a short list of three (3) to five (5) individuals/firms. 2. Step 2: RFP/Interviews. The department head or elected official shall provide a Request for Proposal (RFP) to each of the individuals/firms on the short list, who shall be required to attend a mandatory pre -proposal meeting. The review team shall interview all individuals/firms responding to the RFP and shall rank each proposal according to the criteria provided in Appendix 5-S. 3. Step 3: Negotiation. a. The department head or elected official, or his or her designee, shall negotiate in good faith with the highest ranked firm or company in order to come to agreement on all aspects of the contract, including total contract price. b. If no agreement can be made with the highest ranked company or firm, the department head or elected official, or his or her designee, may stop negotiations and begin negotiations with the next highest ranked firm or company. This process may be repeated as may be necessary. If negotiation is not successful with any of the ranked companies or firms, the department head or elected official may begin the QBS process over or may begin the negotiation process over. Best Value QBS procedure. 1. Step 1: RFQ. Whenever the project is not required by state or federal law to be procured through the QBS Procedure outlined above, the following Best Value QBS process may be used at the discretion of the Board of County Commissioners. Step 1 of the process is identical to Step 1 under Subsection B. above. 2. Step 2: RFP. The department head or elected official shall provide a RFP to each of the individuals/firms on the short list, who shall be required to attend a mandatory pre -proposal meeting. The review team shall review all proposals according to the criteria provided in Appendix 5-R and shall interview the bidders. a. When deemed to be in the best interest of the County, the department head may request a Best and Final Offer (BAFO). Any request for a BAFO should be made following all pertinent discussions, questions, and all addendums made to clarify full understanding of, and responsiveness to, the solicitation requirements. Vendors shall be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals. All pricing and information shall remain confidential until the successful proposal is accepted by the Board of County Commissioners. 1. Best and Final offers shall be requested in writing. The request shall include: a. Notice that discussions are concluded. b. Notice that this is an opportunity to submit a Best and Final Offer. Page 14 c. A due date for submission of the Best and Final Offer. 3. Step 3: Interview/Award. If the low bidder's proposal meets the specifications provided in the RFP, the department head or elected official shall recommend that the Board of County Commissioners award the contract to the low bidder. If the low bidder's proposal does not meet the specifications of the RFP, the department head or elected official shall interview the next lowest bidder until the lowest bid that meets specifications is identified. D. Approval of contract. The results of the selection process, including the name and address of the recommended firm or company, and a Professional Services Agreement, shall be presented to the Board of County Commissioners for approval and specific Board action. No QBS-negotiated contract shall be approved except through this process. Sec. 5-4-160. - Product standardization. All materials, supplies and equipment purchased by the County will be standardized whenever in the best interest of the County. A. On an as -needed basis, a County standards committee will be established by directive of the Board of County Commissioners. The purpose of the committee will be to aid the purchasing agent in conducting the standardization program and to establish purchasing policy in the various commodity fields that lend themselves to standardization. The main benefits of standardization are better prices through quantity purchases of fewer varieties of materials and the selection of materials which are best suited for County use. Sec. 5-4-170. - Disposal of surplus property. A. This procedure shall be used for disposing of all County -owned material, equipment and supplies except for property seized by the Sheriffs Office. B. All departments shall submit to the Department of Accounting, on an annual basis, a report showing stocks of all supplies, materials and equipment which is no longer used or which has become obsolete, worn out, or scrapped. The Department of Accounting, with the approval of the Board of County Commissioners, shall have the authority to sell all such supplies, materials and equipment which cannot be used by any department, or which have been found by the Board not to be required for public use, or to exchange or trade in such articles in part or full payment for new supplies, materials or equipment of a similar nature. C. Estimated sales in amounts or estimated amounts of twenty-five thousand dollars ($25,000.00) or more shall be formally advertised, sealed bids shall be taken, and the bids received shall be submitted to the Board of County Commissioners for award. Sale by public auction may be used in lieu of sealed bids. When public auction is used, the Controller and department representatives may establish a minimum gross amount prior to the auction. Sealed bids or public auction shall be used to the maximum extent possible; however, estimated sales in amounts of less than twenty-five thousand dollars ($25,000.00) shall be made by informal procedures calculated to achieve maximum benefit to the County. Revenue received from said sales shall revert to the appropriate fund. D. Transfer of supplies, materials and equipment between departments shall result in a debit and credit to the accounts of the departments involved, provided that the departments are within the same fund. The value of the items transferred shall be established by the Controller to the mutual satisfaction of the department heads involved. An inventory transfer slip shall be filled out, signed by both department heads and forwarded immediately to the Department of Accounting. Page 15 E. Transfer of supplies, materials and equipment between departments in different funds shall result in a journal entry being written from one (1) fund for deposit in the other fund by the Department of Accounting. F. No supplies, materials, or equipment shall be sold or otherwise disposed of without prior approval of the Board of County Commissioners and/or the Controller. G. Nothing contained herein shall be construed to prohibit the return of unused materials, supplies or equipment which are surplus to the requirements of the County. Materials, supplies or equipment may be returned with or without a restocking charge if this method of disposal will result in a higher benefit to the County. All materials, supplies, or equipment returned shall be reported to the purchasing agent. H. In the event no bids are received for the sale of surplus property, the Director of General Services may negotiate a sale. Final negotiated sale must be approved by the Board of County Commissioners. Sec. 5-4-180. Bid Protest. A. The protest shall be submitted in writing to the Purchasing Department during the bid process or when the aggrieved vendor knows or should have known of the factors giving rise to the bid protest, or within 5 business days after award, whichever is earlier. 1. The written formal protest must contain a minimum of the following: a. A specific identification of each alleged act and the statute or section of the Weld County Code that the purchasing staff member or department is alleged to have violated. b. A precise statement of the relevant facts that include time lines and all involved parties. c. An identification of the issue or issues that need to be resolved that support the protest. d. Any documentation or contractual provisions(s) which is relevant to the protest. 2. The Purchasing Director shall review any timely protest and attempt to resolve the protest by mutual agreement. The Purchasing Department shall notify the aggrieved vendor in writing of its findings and resolution. 3. If the aggrieved vendor is not satisfied with the Purchasing Director's resolution, it may appeal the decision in accordance with Sec. 2-4-10 of this Code. Sec. 5-4-190. State and Federal Grant Funded Procurement Projects. Procurement of all supplies, equipment, and services utilizing State or Federal funds (e.g., Federal Grant or contracts) shall be made in accordance with this Code and any terms and conditions of the funding source. Appendix 2-E provides general guidance for purchases utilizing State and Federal Funds. Page 16 APPENDIX 2-E. STATE AND FEDERAL FUNDED PROCUREMENT PROJECTS POLICY STATEMENT The procurement of all supplies, equipment and services utilizing State or Federal Funds (e.g., Federal Grant or Contract) shall be made in accordance with this Code and any terms and conditions of the funding source. Vendors are responsible for compliance with applicable state or federal requirements. Should this Code conflict with the State or Federal funding source terms and conditions, the procurement will be made in accordance with the specific funding source requirements. Possible requirements of state and federal funding may include, but not be limited, to the following: A. When possible and economically feasible, the County shall take the following six affirmative steps to assure that minority business, women's business enterprises, and labor surplus areas firms are included in the procurement process (source 2 CFR 200.321): 1. Placing qualified small and minority businesses and women's business enterprises on solicitation lists. 2. Assuring that such firms are solicited whenever they are potential sources. 3. Dividing total requirements into smaller tasks or quantities to permit maximum participation by such firms. 4. Establishing delivery schedules which encourage participation. 5. Using the Small Business Administration, and the Minority, Business Development Agency of Department of Commerce. 6. Requiring prime contractors to take these steps in subcontracting. B. The County shall review procurement requests to avoid duplicative or unnecessary purchases. The County shall consider consolidating or breaking out procurements to obtain a more economical purchase. The County shall consider lease versus purchase where appropriate (2 CFR 200.318(d). C. Federal procurements shall not have a geographic preference included in the bid or RFP, except in those cases where applicable Federal statues expressly mandate or encourage geographic preference (source 2 CFR 200.319(b). D. Time and materials contracts may only be used if no other contract is suitable (source 2 CFR 200.3180)). "Cost plus a percentage of cost" or "percentage of construction cost" contracts are not allowed (source 2 CFR 200.323(d). E. The County will perform a cost and or price analysis in connection with every procurement action in excess of the federal Simplified Acquisition Threshold (2 CFR 200.323) F. The County will review the federal System for Award Management (SAM) before awarding a contract using federal funds to confirm that the vendor is not a suspended or debarred federal vendor. G. The County will use the following bonding requirements for construction or facility Page 17 improvement contracts or subcontracts exceeding the Simplified Acquisition Threshold, the Federal awarding agency or pass -through entity may accept the bonding policy and requirements of the non -Federal entity provided that the Federal awarding agency or pass -through entity has made a determination that the Federal interest is adequately protected. If such a determination has not been made, the minimum requirements must be as follows: f 1 ) A bid guarantee from each bidder equivalent to five percent of the bid price. The "bid guarantee" must consist of a firm commitment such as a bid bond, certified check, or -other negotiable instrument accompanying a bid as assurance the bidder will, upon acceptance of the bid, execute such contractual documents as may be required within the time specified. (2) A performance bond on the part of the contractor for 100 percent of the contract price. A "performance bond" is one executed in connection with a contract to secure fulfillment of all the contractor's obligations under such contract. (3) A payment bond on the part of the contractor for 100 percent of the contract price. A "payment bond" is one executed in connection with a contract to assure payment as required by law of all persons supplying labor and material in the execution of the work provided for in the contract (2 CFR 200.325. For additional federal requirements see 2 CFR 200.318-326. Page 18 Hello