02/24/2009 Audit AUDIT REPORT OF MONROE COUNTY
MARINE RESOURCES BIDDING PROCESS
FOR DERELICT VESSEL REMOVAL
February 24, 2009
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Prepared by:
Internal Audit Department
Clerk of the Circuit Court
Danny L. Kolhage, Clerk
Monroe County, Florida
AUDIT REPORT OF MONROE COUNTY
MARINE RESOURCES BIDDING PROCESS FOR
DERELICT VESSEL REMOVAL
TABLE OF CONTENTS
P-_age
I. OBJECTIVES AND SCOPE 1
II. METHODOLOGY
1
III. BACKGROUND INFORMATION 2
IV. AUDIT CONCLUSIONS 3
V. AUDIT FINDINGS 4 -10
1. In September 2008, the Marine Resources Department solicited quotes for
the removal of a derelict vessel. The lowest quote was for $37,890, and
therefore a competitive bid process was required according to the Monroe
County Purchasing Policy. 4 -5
2. The Marine Resources Department did not maintain copies of vendor
quotes. 6 -7
3. In 2008, the Marine Resources Department solicited quotes for the removal
of derelict vessels and did not receive the appropriate purchasing approvals
according to the Monroe County Purchasing Policy. 8
4. Three (3) out of the twenty -five (25) derelict vessel removals that Internal
Audit sampled had a total cost that ranged from $10,000.01 - $25,000 and
therefore the solicitation of quotes should have been gathered in conjunction
with the Purchasing Department. 9
5. BOCC should develop a policy and procedure for soliciting quotes from a pre -
approved vendor listing. 10
VI. EXHIBITS
A. Purchasing Policy
B. Record Retention
VII. AUDITEE RESPONSES - Marine Resources Department
VIII. AUDITEE RESPONSES - County Administrator's
AUDIT REPORT OF MONROE COUNTY
MARINE RESOURCES BIDDING PROCESS FOR
DERELICT VESSEL REMOVAL
I. OBJECTIVES AND SCOPE
At the request of the Monroe County Clerk of the Circuit Court, the Internal Audit Department has
completed an audit of the County's Marine Resources Bidding Process for Derelict Vessel Removal.
Exhibit A — Purchasing Policy. The audit objective was to assess compliance with the County's
purchasing policy ensuring competitive, honest, and effective bidding.
II. METHODOLOGY
A. We interviewed the following personnel to obtain information about the County's bidding
process for derelict vessel removal.
1. Rich Jones, Monroe County Marine Resources
2. Cheryl Morgan, Finance Department
3. Brian Bradley, Coordinator Monroe County Attorney's Office
B. Internal Audit Department examined the following documents:
1. Monroe County Board of County Commissioners Purchasing Policy
2. The twelve (12) contracts for the responding vendors
3. Monroe County Request for Quote documentation
3. Monroe County Task Orders
4. Vendor quotes and emails
5. Florida Fish and Wildlife Conservation Commission Derelict or Abandoned Vessel Reports
6. General Schedules for State and Local Government Agencies GS1 -SL
C. To ensure the County's purchasing policy was being followed, the Internal Audit Department
reviewed the above mentioned bidding documentation for twenty -five (25) of the fifty -seven (57)
derelict vessels and marine debris that was scheduled to be removed from January 2008 through
September 2008. The twenty -five (25) sampled derelict vessels contracted to be removed totaled
$183,570, or 87% of the total funds expended for derelict vessel removals from January through
September 2008.
D. Internal Audit Department verified that quotes were received for derelict vessel removals, and
the lowest bidder was selected.
1
III. BACKGROUND INFORMATION
General:
The Marine Resources Department's mission is to protect, conserve and restore the quality of the
Florida Keys waters. The derelict vessel disposal program is an element of ensuring that this
mission is met. There are approximately one hundred to one hundred fifty (100 — 150) derelict
vessels removed each year, at a cost of approximately $200,000 per year. The money for the
removal of derelict vessels comes from the Boating Improvement Fund, which is supported by the
annual boat registration fees paid by boat owners.
A derelict vessel is identified by a Florida Fish and Wildlife officer and communicated to the
Monroe County Marine Resources Department via their "Derelict Vessel or Abandoned Vessel
Report." This form contains basic information on the vessel, its location, and pictures of the vessel.
The Marine Resources Department then sends out a "request for quote" to BOCC approved
vendors. The request for quote contains the bid deadline, work completion date, and other
information. The Marine Resources Department then sends out a Task Order via email to all of the
vendors that bid, listing their names, bids, and the name of the winning contractor.
The Marine Resources Department was directed by the Board of County Commissioners (BOCC) at
its November 14, 2007 meeting to qualify marine contractors to remove derelict vessels and marine
debris. By February 2008, a Request for Qualification (RFQ) was advertised; a selection committee
formed and responses were evaluated and rated. The selection committee recommend six (6) of the
thirteen (13) responding vendors as qualified firms to execute contracts for the removal of derelict
vessels and marine debris. At the March 19, 2008 BOCC meeting the commissioners decided to
award a three (3) year contract to all thirteen (13) of the responding vendors as qualified vendors.
Five (5) of the firms were awarded contracts immediately at the March 19, 2008 meeting and seven
(7) were awarded contracts at the April 14, 2008 meeting or later. One vendor, TSI was not
awarded a contract due to lack of insurance and not responding.
2
IV. AUDIT CONCLUSIONS
1. In September 2008, the Marine Resources Department solicited quotes for the removal of a
derelict vessel. The lowest quote was for $37,890, and therefore a competitive bid process was
required according to the Monroe County Purchasing Policy.
2. The Marine Resources Department did not maintain copies of vendor quotes.
3. In 2008, the Marine Resources Department solicited quotes for the removal of derelict vessels
and did not receive the appropriate purchasing approvals according to the Monroe County
Purchasing Policy.
4. For 2008, three (3) out of the twenty -five (25) derelict vessel removals Internal Audit sampled
cost from $10,000.01 - $25,000 and did not adhere to the Monroe County Purchasing Policy for the
solicitation of quotes.
5. BOCC should develop a policy and procedure for soliciting quotes from a pre- approved vendor
listing.
3
V. AUDIT FINDINGS
1. In September 2008, the Marine Resources Department solicited quotes for the removal of a
derelict vessel. The lowest quote was for $37,890, and therefore a competitive bid process was
required according to the Monroe County Purchasing Policy.
Finding:
The Marine Resources Department did not follow procedures authorized under the Monroe County
Purchasing Policy dated May 2003. In September 2008, the Marine Resources Department solicited
quotes from four (4) vendors from a pre- approved vendor list for the removal of a derelict vessel
named Silver Goose. The lowest quote received was for $37,890. Since the estimated cost was
greater than $25,000.01, the Marine Resources Department should have complied with Monroe
County Purchasing Policy Chapter 3, Competitive Bid Process. Exhibit A — Purchasing Policy. The
award of bid is made by the BOCC to the lowest conforming bid by a responsible bidder.
Recommendation(s):
1. The Marine Resources Department should follow the Monroe County Purchasing Policies and
Procedures.
Marine Resources Response:
1. Long -term contracts were approved by the BOCC with multiple companies to remove derelict
vessels. The contracts (all identical) detail the procedures that staff shall follow in regard to
soliciting, awarding, and paying a contractor for any derelict vessel removal job. Staff followed the
procedures outlined in the BOCC approved contracts, by soliciting quotes and ensuring that the
lowest quote was awarded for the job. As stated in the agenda item summary for the contracts, the
purpose for the contracts is to "provide for a more efficient derelict vessel removal program, meet
Purchasing Guidelines, and eliminate the need for contracts for individual jobs." The intent was to
eliminate the lengthy process of going through the Purchasing Department and the BOCC, allowing
staff to expedite the removal of derelict vessels that are often a hazard to navigation. It has been
staff's understanding that the approved contracts allowed for the Marine Resources Office to
authorize the removal of derelict vessels, using the lowest quote, and eliminated the need to take
individual jobs before the BOCC. By following the procedures established in the derelict vessel
contracts, staff is able to comply with the competitive bid process without any additional advertising.
With the contracts in effect, there appears to be no additional need to solicit quotes in conjunction
with the Purchasing Department or obtain additional BOCC approval.
4
Auditor's Comment:
1. Upon examination of the record of the BOCC's action to approve the derelict vessel
contracts and the contracts themselves, Internal Audit is unable to confirm that it was the
BOCC's intent to bypass the Monroe County Purchasing Policies and Procedures.
The Marine Resources Department should seek clarification from the BOCC as to what
procedure should be used to assign specific work to the approved contractors. If those
procedures are different than the Monroe County Purchasing Policies and Procedures they
should be documented and approved by the BOCC.
5
2. The Marine Resources Department did not maintain copies of vendor quotes.
Finding:
The Marine Resources Department did not maintain copies of vendor's quotes for removal of
derelict vessels throughout Monroe County. The Senior Administrator kept the vendors email
submittals on his computer, but had to purge that information due to a lack of space. Internal Audit
was able to verify the vendors' quotes utilizing recovered emails. According to Monroe County
Purchasing Policy Chapter 2, on purchases from $5,000.01 - $25,000 there should be a request to
purchase along with two (2) or more written quotes. Exhibit A — Purchasing Policy.
The Marine Resources Department's lack of maintaining quotes is a violation of Florida Department
of State Record Retention General Schedules for State and Local Government Agencies GS1 -SL.
Exhibit B — Record Retention. According to this schedule under purchasing records the retention
period is five (5) fiscal years.
Recommendation(s):
1. The Marine Resources Department should maintain a physical record of vendor quotes.
2. The Marine Resources Department should follow the Record Retention General Schedules for
State and Local Government Agencies GS1 -SL and maintain quotes for a period of five (5) fiscal
years.
Marine Resources Response:
1. Staff has, and continues to maintain copies of vendor quotes for individual derelict vessel
removal jobs. Of the requests for quote documentation by the internal auditors, there were several
jobs for which complete quote documents could not be located at the time of the request. This
situation is due to restructuring of the Marine Resources Office which resulted in the elimination of
the position of the Administrative Assistant who, at the time, was managing the derelict vessel
documentation (It should be noted that all quote documents are submitted by the Marine Resources
Office to the Purchasing Department, along with invoices and signed Task Orders, for payment.
Therefore additional copies of any received quotes are available from the Purchasing Department
for record retention purposes). The records retention law does not require the retention of duplicate
records. The official record is maintained by the Purchasing Department. I have since taken over all
the duties of the derelict vessel removal program and am managing all files and documentation
relating to derelict vessel contracts and removal jobs.
6
Auditor's Comment:
1. Upon interview of the Monroe County Purchasing Department's Purchasing Manager, it is the
understanding of Internal Audit that the only documentation provided by Marine Resources to the
Purchasing Department are purchase orders with either the winning quote attached or BOCC
approval. No other quotes or other backup information is submitted. Invoices and signed Task
Orders are sent to the Monroe County Clerk's Office for payment and not the Purchasing
Department and do not contain the documentation of the quotes received.
7
3. In 2008, the Marine Resources Department solicited quotes for the removal of derelict vessels
and did not receive the appropriate purchasing approvals according to the Monroe County
Purchasing Policy.
Finding:
The Marine Resources Department did not follow procedures authorized under the Monroe County
Purchasing Policy dated May 2003. During 2008 the Marine Resources Department solicited quotes
from a pre- approved vendor list for the removal various derelict vessels throughout Monroe County
and did not receive the appropriate purchasing approvals necessary for the different dollar amount
of purchasing levels. According to Monroe County Purchasing Policy Chapter 2F, purchasing
authority shall be limited to the County Administrator, Purchasing Director, Division Directors,
Department Directors and or /their properly authorized designees in order to insure proper fiscal
control. Exhibit A — Purchasing Policy.
Recommendation(s):
1. The Marine Resources Department should follow the Monroe County Purchasing Policies and
Procedures.
Marine Resources Response:
1. Long -term contracts were approved by the BOCC with multiple companies to remove derelict
vessels. The contracts (all identical) detail the procedures that staff shall follow in regard to
soliciting, awarding, and paying a contractor for any derelict vessel removal job. Staff followed the
procedures outlined in the BOCC approved contracts, by soliciting quotes and ensuring that the
lowest quote was awarded for the job. As stated in the agenda item summary for the contracts, the
purpose for the contracts is to "provide for a more efficient derelict vessel removal program, meet
Purchasing Guidelines, and eliminate the need for contracts for individual jobs." The intent was to
eliminate the lengthy process of going through the Purchasing Department and the BOCC, allowing
staff to expedite the removal of derelict vessels that are often a hazard to navigation. It has been
staffs understanding that the approved contracts allowed for the Marine Resources Office to
authorize the removal of derelict vessels, using the lowest quote, and eliminated the need to take
individual jobs before the BOCC. By following the procedures established in the derelict vessel
contracts, staff is able to comply with the competitive bid process without any additional advertising.
With the contracts in effect, there appears to be no additional need to solicit quotes in conjunction
with the Purchasing Department or obtain additional BOCC approval.
8
4. Three (3) out of the twenty -five (25) derelict vessel removals that Internal Audit sampled had a
total cost that ranged from $10,000.01 - $25,000 and therefore the solicitation of quotes should have
been gathered in conjunction with the Purchasing Department.
Finding:
The Marine Resources Department did not follow procedures authorized under the Monroe County
Purchasing Policy dated May 2003. According to Monroe County Purchasing Policy Chapter 2F, for
purchases from $10,000.01 - $25,000 the requesting department will solicit bids in conjunction with
the Purchasing Department. Exhibit A — Purchasing Policy. The Marine Resources Department
did not solicit quotes in conjunction with the Purchasing Department.
Recommendation(s):
1. The Marine Resources Department should follow the Monroe County Purchasing Policies and
Procedures.
Marine Resources Response:
1. Long -term contracts were approved by the BOCC with multiple companies to remove derelict
vessels. The contracts (all identical) detail the procedures that staff shall follow in regard to
soliciting, awarding, and paying a contractor for any derelict vessel removal job. Staff followed the
procedures outlined in the BOCC approved contracts, by soliciting quotes and ensuring that the
lowest quote was awarded for the job. As stated in the agenda item summary for the contracts, the
purpose for the contracts is to "provide for a more efficient derelict vessel removal program, meet
Purchasing Guidelines, and eliminate the need for contracts for individual jobs." The intent was to
eliminate the lengthy process of going through the Purchasing Department and the BOCC, allowing
staff to expedite the removal of derelict vessels that are often a hazard to navigation. It has been
staff's understanding that the approved contracts allowed for the Marine Resources Office to
authorize the removal of derelict vessels, using the lowest quote, and eliminated the need to take
individual jobs before the BOCC. By following the procedures established in the derelict vessel
contracts, staff is able to comply with the competitive bid process without any additional advertising.
With the contracts in effect, there appears to be no additional need to solicit quotes in conjunction
with the Purchasing Department or obtain additional BOCC approval.
9
5. BOCC should develop a policy and procedure for soliciting quotes from a pre- approved vendor
listing.
Finding:
The Marine Resources Department is utilizing a pre- approved vendor listing to solicit quotes for
derelict vessel removals throughout Monroe County. Internal Audit was unable to locate a policy
and procedure within the Monroe County Purchasing Policy pertaining to the soliciting of quotes
from pre- approved vendor listings.
Recommendation(s):
1. The BOCC should update the Monroe County Purchasing Policy to include the purchasing
procedures when utilizing pre- approved vendor listings.
Marine Resources Response:
1. The long -term contracts approved by the BOCC for derelict vessel removals are not simply
approvals of vendors, but rather contracts that provide for soliciting, awarding, and paying vendors
for derelict vessel removals. It appears that while the intent of the contracts was to allow staff to
perform derelict vessel removals in an efficient and expedient manor, there is some ambiguity
regarding whether or not the contracts themselves meet, or supersede, Purchasing Policy. It may be
necessary to go back to the BOCC for clarification and make further provisions to enable Marine
Resources staff to process derelict vessels without coordination with the Purchasing Department
or additional BOCC approval. The issue could be resolved, if necessary, via a resolution from the
BOCC or by ratifying the existing contracts to clarify the procedures relating to the solicitation of
bids and cost authorizations.
10
VI. EXHIBITS
EXHIBIT A
PURCHASING POLICY
Monroe County
Board of County Commissioners
Purchasing Policy
Mayor, Murry E. Nelson, District 5
Mayor Pro -Tem, David Rice, District 4
Dixie Spehar, District 1
George Neugent, District 2
Charles "Sonny" McCoy, District 3
James L. Roberts
•
County Administrator
Sheila A. Barker
Division Director, Management Services
Sal R. Zappulla
Director of Budgets
•
Lisa Ernst Cherry
Purchasing Supervisor
Carlos Victores
Senior Buyer
Monroe County Purchasing Policy
Table of Contents
CHAPTER 1 - INTRODUCTION 3
CHAPTER 2 - AUTHORITY & DUTIES 3
A. Board of County Commissioners 3
B. County Administrator 3
C. Office of Administrative Services 3
D. Requesting Department 5
E. Delegation of Authority 5
F. Purchasing Authority 5
G. Non- discrimination 6
CHAPTER 3 - COMPETITIVE BID PROCESS 6
A. Notice Inviting Bids 6
B. Procedure for Bids 7
C. Tie Bids 9
D. Rejection of Bids 9
E. Waiver of Irregularities 9
F. Award of Bid Contract 9
CHAPTER 4 - PURCHASE OF PROFESSIONAL SERVICES 10
A. Definition 10
B. Methods of acquisition 10
CHAPTER 5 - DESIGN /BUILD CONTRACTS 11
A. Primary Procedure 11
CHAPTER 6 - CONTRACTS /AGREEMENTS 15
A. Contract Review 15
B. Requirements 15
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C. CPI Computation 16
D. Exceptions 16
E. Preference to Florida businesses (FS 287.084) 17
CHAPTER 7 - EXCLUSIONS 17
A. Sole Source 17
B. State Contracts, GSA Contracts or SNAPS 18
C. Previously Approved Projects 18
D. Piggybacking 18
CHAPTER 8 - BLANKET PURCHASE AGREEMENTS 19
A. BPAs 19
B. BPA terms and conditions 19
CHAPTER 9 - RETURN OF PURCHASES 20
CHAPTER 10 - MINORITY BUSINESS ENTERPRISE (MBE), SMALL BUSINESS
& DISADVANTAGED BUSINESSES 20
CHAPTER 11 - PURCHASE OF INSURANCE 21
CHAPTER 12 - RECYCLED CONTENT PRODUCTS 21
CHAPTER 13 - SURPLUS ITEMS 21
CHAPTER 14 - CENTRAL STORES 22
A. Purpose 22
B. Requisitions from Central Stores 22
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Monroe County Purchasing Policy
CHAPTER 1 - INTRODUCTION
The purpose of the County's Purchasing policy is to secure economy in the construction of
County public works and in the expenditure of County funds for services, materials, supplies, and
equipment. The policy is intended to promote actual, honest and effective competition and
protect the taxpayers from collusive contracts, favoritism, fraud, extravagance, and
improvidence. The policies and procedures outlined herein are governed by Florida Statutes and
Monroe County Ordinances most recently in effect.
The Mission of Monroe County's Purchasing section of Administrative Services is to provide
quality purchasing and contracting support to all county departments in a timely, cost effective
and professional manner. As purchasing professionals:
We follow a strict Code of Ethics, avoiding the appearance of and preventing the opportunity for
favoritism.
We seek to maximize the purchasing power of public funds, while promoting fair and open
competition.
We strive to create a work environment that demonstrates teamwork, respect, integrity and
honest communication
CHAPTER 2 - AUTHORITY & DUTIES
A. Board of County Commissioners
The Procurement Policy Office consists of the Monroe County Board of County Commissioners
which is hereinafter referred to as the BOCC.
1. The BOCC shall decide all matters of policy including those referred to it
by the Chief Procurement Officer.
2. No contract in excess of $1,000 for goods or services may be awarded
without the approval of the Policy Office.
B. County Administrator
1. The County Administrator is the Chief Procurement Officer and shall have
the authority and responsibility to adopt administrative instructions for the
procurement of supplies, services, and construction in accordance with
policy adopted by the BOCC.
2. County Administrator has contract approval authority of $1,000.00 M.C.
ordinance Section 2 -1.
C. Office of Administrative Services
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There is a Purchasing Section, within the Administrative Services
Department. The Director of Administrative Services shall head the
Purchasing Section and in such capacity be additionally referred to as the
Purchasing Director.
2. The Purchasing Director, with the approval of the County Administrator,
may originate or modify a Monroe County Administrative Instruction that
delineates specific procedures for governing the procurement process as
defined by County Ordinance and this Policy.
3. The Purchasing Section must conform to its unique status: government
procurement is an "act in agency," a special relationship which calls for
the Purchasing Section to act for others, to commit their budgets, and to
influence their programs.
4. Reviews all requests for purchase and contracts for goods and services
prior to creation of purchase orders or submission to the BOCC for review
and execution. Purchasing Section checks convicted /suspended vendor
List prior to issuance of bid tabulation and distributes said list to all
departments.
5. Assures that supplies used by various departments will be uniform
whenever consistent with operational goals and in the interest of efficiency
or economy. The requesting department must justify the need for a special
type of item.
6. The Purchasing Section maintains a list of potential bidders for the various
types of materials, equipment and supplies to be used in the development
of a mailing list for distribution of specifications and invitations to bid for
projects that fall under the competitive bid threshold Any supplier may be
included in the list upon request.
7. Makes alternative suggestions to the requesting department if requested
specifications would restrict competition or otherwise preclude the most
economical purchase of the required items. In case of disagreement as to
the content of the specifications, the County Administrator shall make the
final determination.
8. Makes the determination when a low bidder proposes an alternative as "an
equal" to that specified, whether the proposed substitution is, in fact, an
equal.
9. Seeks purchases through State, Federal Agencies, Associations or other
governmental agencies if such purchases are in the best interest of the
County.
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Monroe County Purchasing Policy
D. Requesting Department
1. Must submit a written or electronic "Request to Purchase" to the
Purchasing Section for all purchases of goods and services.
2. Provides adequate description of needed items so the Purchasing Section
can assist in preparing specifications to procure the desired items and or
services.
3. Provides written justification for a special type of item and or "Sole
Source" vendor for which only the BOCC, County Administrator or
Director of Purchasing may approve at the appropriate level of purchasing
authority. The Purchasing Section must in all cases evaluate the request
for any such commodity, service or source.
4. Secures P.O.'s on all purchases made during an emergency, and must be
signed by the required authority. Provides the E.O.C. with a list of P.O.
numbers to be utilized in the event that the normal County operations are
closed.
E. Delegation of Authority
Subject to the limitations of these policies and any additional procedures of the County
Administrator, the Purchasing Director may delegate authority when and where such action is
deemed necessary.
F. Purchasing Authority
Purchasing Authority is defined as signature verification of original invoicing for receipt of the
ordered goods or services for payment by Purchase Order, Audit Slip, or other fiscal documents.
1. Purchasing Authority shall be limited to the County Administrator,
Purchasing Director, Division Directors, Department Directors and/or their
properly authorized designees in order to insure proper fiscal control.
2. Purchasing Authority dollar level may be elevated to a higher level if the
County Administrator or Purchasing Director determines such to be in the
County's best interests.
PURCHASING LEVELS WHAT TO DO? PURCHASING AUTHORITY
FOR TOTAL DOLLAR WHO APPROVES?
AMOUNT
$.01 - $1,000.00 Request to Purchase written or electronic to Purchasing. Department Director or their
designees.
$1,000.01 - $5,000.00 Request to Purchase written or electronic to Purchasing. Department Director
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$5,000.0I - $10,000.00 Request to Purchase form along with two (2) or more written Division Director
price quotes.
$ I0,000.01 - $25,000.00 Request to Purchase form along with two (2) or more written County Administrator only.
price quotes. Requesting Department will solicit bids in
conjunction with the Purchasing Department.
$25,000.01 AND OVER Competitive Bid process BOCC prior approval required
Governed by County Ordinance
G. Non - discrimination
It is the policy of Monroe County to provide equal opportunity to all qualified persons in gaining
entry to do business with the County. To help achieve an optimum level of competitiveness,
Monroe County does not discriminate on the basis of race, color, sex, national origin, religion,
age or disability in its purchase of goods and services.
CHAPTER 3 - COMPETITIVE BID PROCESS
Any purchase or contract estimated to cost $25,000.01 or greater shall be awarded by competitive
sealed bid. Award of Bid shall be made by the BOCC to the lowest conforming bid by a
responsible bidder. Award of contracts for professional services are covered elsewhere in this
policy. Please refer to Administrative Instruction #4802 for specific requirements.
A. Notice Inviting Bids
1. Specifications: The Requesting Department must prepare bid
specifications along with memorandum and deliver them to the
Purchasing Section and County Attorney's office in advance of the
Advertisement publication date. Bid specifications should be written
broadly enough to ensure response from a range of bidders. Bid
specifications should not be written to steer business toward or "rig" the
bid for any one particular vendor.
2. Advertisement: Notice inviting bids shall be published by the County
Attorney's Office in one (1) or more local newspapers qualifying under
Florida Statutes Chapter 50.031. Notice also shall be publicly posted by
the Purchasing Section in a consistent public location at least twenty -one
(21) days preceding the last day established for the receipt of bids. The
Purchasing Section will be responsible for insuring all bid documents are
sent to Onvia By DemandStar for distribution.
3. Scope of Notice: The public notice required herein shall include a general
description of the articles to be purchased or sold, shall state where hid
instructions and specifications may be secured, and the time and place for
opening bids.
4. All bids received must remain valid for a period of ninety (90) days.
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Monroe County Purchasing Policy
5. Bid Security Deposit: Each bid must be accompanied by a bid security in
an amount equal to 5% of the bid price either in the form of a certified
check made payable to the County or in a bond from surety company
authorized to do business in Florida. The bid securities will remain in the
custody of the Purchasing Director until forfeited or released. If, after the
Board accepts the bid the bidder refused to execute the contract or
commence the work or provide the goods called for, then the bid security
will be forfeited. The bid securities of unsuccessful bidders and bid
securities in the County's possession for more than 90 days from the date
of bid opening must also be returned.
6. Bid Addenda: An addendum to a specification shall be defined as an
addition or change in the already prepared specifications for which an
invitation has been mailed for formal quotations or an announcement has
been posted for a formal sealed bid.
a) Any addendum to a request for formal sealed bids shall be
approved by the Requesting Department Director, Division
Director or designee and the Purchasing Director or designee. The
addendum shall clearly point out any addition or change to the
specifications.
b) Purchasing Section shall be responsible for notifying all
prospective bidders who have received specifications of the
addendum(s) in writing five (5) calendar days prior to opening date
of bids (also see Administrative Instruction #4802). Specifications
and addenda in the possession of Purchasing Section are
controlling.
c) Each bidder shall examine all Bid documents and shall judge all
matters relating to the adequacy and accuracy of such documents.
Any inquires, suggestions, or requests concerning interpretation,
clarification, or additional information pertaining to the Bid shall
be made to the Requesting Department.. The issuance of a written
addendum is the only official method whereby interpretation,
clarification or additional information can be given. If any addenda
are issued to a Bid, Monroe County will attempt to notify all
prospective bidders who have secured the same.
B. Procedure for Bids
All public notices calling for bids, proposals, or replys under the signature
of the Director of Purchasing will include a notification of the date, time
and place that the bids, proposals, or reply's will be accepted and opened.
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{
Monroe County Purchasing Policy
Any and all bids, proposals, or reply received after the time and date of
acceptance will not be considered and will be (if so requested) returned (at
the Bidders expense) unopened to the sender.
p 2. All sealed bids, proposals or reply shall be opened at the Purchasing office
unless another location for doing so was designated in the applicable
Public Notice. The Purchasing Director shall receive and retain all
original bid documents and addenda on file in his office. All bids,
proposals or reply shall remain valid for a period of 90 days.
3. The date and time of bid acceptance and bid opening shall be the same.
All Respondents submitting bids, proposals or reply for construction,
improvement, remodeling or repair of public buildings, will furnish
evidence that the bidder holds an appropriate current certificate or
registration per Ch. 489.131 F.S. unless exempt under Ch. 489.103 F.S.
4. All openings shall be open to the public and the Director of Purchasing
shall certify and keep a record of said openings. All bids, proposals or
reply shall be stamped with date and time of receipt by the Purchasing
staff and remain under lock.
5. A comprehensive review of the bids, proposals or reply will be conducted
by the Requesting Department in conjunction with the Purchasing Section.
The Purchasing Section will prepare a tabulation of the bid opening and
certify whether or not any of the respondents that have submitted a bid,
proposal or reply appears on the State of Florida Convicted or Suspended
Vendor list. The Purchasing Section shall maintain an original set for the
Purchasing Section file and the Requesting Department will receive the
remaining documents.
6. A BOCC meeting agenda item shall be prepared by the Requesting
Department and attached to the recommended bid. A hard copy and
electronic file of the agenda item summary sheet should be forwarded to
the Purchasing Section to be retained in the bid file.
7. Upon approval by the County Administrator, the bid , proposal or reply
will be submitted for BOCC consideration on a future regular meeting
agenda (within sixty (60) calendar days of selection) as an "awarding of
bids, proposals or reply" item.
8. The County Administrator and /or appropriate Division or Department
Director will be responsible for presenting recommendations to the BOCC.
9. Once the BOCC has made a decision, the Requesting Division Director or
Department Head or their designated contract manager will be responsible
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for ensuring the accomplishment of that which was approved and issuing a
P.O. for the full contract purchase amount.
10. Non - Collusion Statement: Each bid shall contain the appropriately
worded non - collusion certification.
11. Drug Free Workplace: Each bid shall contain an execute "Drug Free
Workplace" form.
C. Tie Bids
In the event the same bid amounts are received from two or more bidders who are considered by
the BOCC to be equally qualified and responsive, the award shall be to the bidder who has a
principal place of business located in Monroe County, FL. Otherwise the tie will be resolved by
lot.
D. Rejection of Bids
1. The BOCC shall have the authority to reject any and all bids, proposals or
reply.
2. If the lowest, responsible bid exceeds budgeted amount and the BOCC
does not appropriate additional funds, the requesting authority may solicit
approval from the BOCC and, if granted, may appropriately amend the
project specifications and re- advertise the request for bids, proposals or
reply.
3. If no bid is received, the BOCC may be requested to authorize the County
Administrator to undertake direct negotiations to purchase the
item/service. The BOCC would then consider the results of said
negotiations and determine whether acquisition of these goods or services
at the negotiated price would be in the County's best interest, and if so,
authorize the requisition.
4. Late bids, proposals or reply. Any and all bids, proposals or reply received
after the time and date of acceptance will not be accepted.
E. Waiver of Irregularities
The BOCC shall have the authority to waive any and all irregularities in any and all formal bids,
proposals or reply.
F. Award of Bid Contract
The Mayor, when authorized by majority vote of the BOCC, shall execute formal contracts
having a binding effect upon the County.
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CHAPTER 4 - PURCHASE OF PROFESSIONAL SERVICES
A. Definition
A professional service shall be defined as assistance obtained in support of county operations
from an independent contractor in one or more of the following professional fields:
1. Appraisal Services - real and personal property appraisers (as per Chapter
125.3,
2. Archite , professional engineering, landscape architecture, or
registered land surveying services (as per Chapter 287.055, FS).
3. Audit and Accounting Services - auditors and accountants (excepting the
selection of the annual auditor which shall be conducted as per Chapter
11.45, FS).
• 4. Consultants - planning, management, technological or scientific advisors.
5. Financial Services - bond counsel, rating and underwriting, financial
advisor, and investment services.
6. Legal Services - attorneys and legal professionals.
7. Medical Services - medicine, psychiatry, dental, hospital, and other health
professionals.
B. Methods of acquisition
Because differences in price may only be a minor concern compared to qualitative
considerations, professional services may be exempted by the BOCC from the competitive
bidding process. Instead, professional services will be typically acquired through one of the
following methods:
1. Competitive Selection and Negotiation - per Chapter 287.055, (4) & (5)
FS.
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a) Request for Qualifications (RFQ) is publicly announced.
b) Responding firms are ranked and may be required to make public
presentations to the BOCC.
c) The County will negotiate a contract with the firm selected by the
( BOCC.
d) The negotiated contract will be reviewed and placed before the
BOCC for approval.
2. Requests for outside legal services will be referred to the County
Administrator and the County Attorney for review and comment as to
whether said services are necessary and /or appropriate. Requests for
outside legal services may be exempted from formal competition by the
BOCC at the request of the County Administrator or County Attorney.
CHAPTER 5 - DESIGN /BUILD CONTRACTS
A. Primary Procedure
1. Procurements for the design and construction of public construction
projects may be obtained through a single contract with a firm selected in a
manner permitted under Chapter 287.055, FS and the procedures set forth
in this section.
1
2. For the purpose of this section, the following definitions shall apply:
a) A "design/build firm" means a partnership, corporation, or other
legal entity which is:
(1) Certified under Chapter 489.119, FS, to engage in
contracting through a certified or registered building
contractor as the qualifying agent: and;
(2) Certified under Chapter 471.023, FS, to practice or to offer
to practice engineering; certified under Chapter 481.219
FS, to practice or to offer to practice architecture; or
certified under Chapter 481.319 FS, to practice or to offer
to practice landscape architecture.
b) A "design/build contract" means a single contract with a design
build firm for the design and construction of a public construction
project.
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c) A "design criteria package" means concise performance- oriented
drawings or specifications of the public construction project. The
purpose of the design criteria package is to furnish sufficient
information so as to permit design -build firms to prepare a bid or a
response to a Department request for proposal, or to permit a
Department to enter into negotiated design -build contract. The
design criteria package shall specify such performance -based
criteria for the public construction project, including, but not
limited to, the legal description of the site, survey information
concerning the site interior space requirements, material quality
standards, schematic layouts and conceptual design criteria of the
project, cost or budget estimates, design and construction
schedules, site development requirements, provisions for utilities,
storm water retention and disposal, and parking requirements, as
may be applicable to the project.
d) A "design criteria professional" means a firm that holds a current
certificate of registration under Chapter 481 FS to practice
architecture or landscape architecture or a firm who holds a current
certificate as a registered engineer under Section 471 FS to practice
engineering and provide professional architect services, landscape
architect services, or engineering services in connection with the
preparation of the design criteria package.
3. The design criteria package shall be prepared and sealed by a design
criteria professional employed or retained by the agency. If the agency
elects to enter into a professional services contract for the preparation of
the design criteria package, then the design criteria professional shall be
selected and contracted with in accordance with the requirements of
Chapter 287.055 FS. The design criteria services of a firm under
continuing contract may also be utilized if the project construction costs
are estimated to be less than $500,000 and provisions for design criteria
services arc included within or added to such contracts. All solicitations
for professional services to prepare a design criteria package(s) shall
inform the recipient firms of the following information:
a) A description of the project;
b) The work to be performed;
c) Written notification that the design criteria professional who has
been selected to prepare the design criteria package shall not be
eligible to render services under a design -build contract executed
pursuant to the design criteria package.
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4. Upon completion of the Design Criteria Package, procurements of
Design/Build services shall be processed in a manner consistent with the
section entitled "Competitive Proposals ".
5. The BOCC may appoint, direct and empower a technically qualified
screening committee to review, analyze, evaluate and rank/rate the
applicable Design /Build proposals and report their findings and
recommendations back to the BOCC for consideration and contract award.
6. The BOCC may declare a public emergency, where appropriate and
authorize the using agency to negotiate an agreement for BOCC approval
with the best - qualified design -build firm available at that time.
7. In lieu of the design/build contractor selection procedure described above,
the following selection process may be used at the option of the
Purchasing Director for the selection of a firm for the design and
construction or renovation of buildings when the scope of work is flexible
and identifies an end result that the County wants to achieve rather than
just dictating specific methods and materials.
a) Bid proposals must consist of a technical proposal and a price
proposal. The two proposals must be segmented into separate
sealed packages and clearly marked. An original and five copies
of both proposals must be received by the deadline stipulated in the
Purchasing Department's public announcement.
(1) The technical proposal must include all the information
requested in response to the scope of services described in
the design criteria package. Examples of such information
are: design drawing documents, outline specifications, and
special requirements, construction details, schematic
mechanical, plumbing and electrical, and schedules.
(2) The price proposal must include one lump sum cost for all
costs of the project as defined by the scope of services of
the design criteria package. Examples of such services are:
design, permits, construction engineering, and inspection
and construction of the proposed project.
b) The selection committee consists of the County Engineer, the
County Construction Manager, and a representative of the
department requesting the project selected by the County
Administrator. Depending on the projection, the County
Administrator may replace the County Engineer or the
Construction Manager with a more appropriately qualified
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individual. At the time and place stated in the public
announcement, the committee will publicly unseal the technical
proposals, and distribute the proposals to the individual committee
members for study and evaluation. The sealed price proposals
must be keep in the custody of the Purchasing Director until
unsealed under the procedure described below. At the time the
technical proposals are unsealed, the Purchasing Director or his
designee must also state the time and place where the technical
scores will be publicly announced and the adjusted score
calculated. The technical scores must be established according to
the following criteria:
Technical Criteria: Maximum Score 45
Structural System
Exterior Finish
Roof System
Mechanical /Plumbing
Electrical
Interior Finish
Interior Hardware and Fixtures
•
Interior Doors /Walls
Ceiling/Lighting Systems
Management Criteria: Maximum Score 35
Contractors Experience
Location of Firm
Experience of Firm with Design/Build
Experience of Architect/Engineer
Project Schedule: Maximum Score 20
Contractor's Ability to Meet Schedule
Consultant's Ability to Meet Schedule
Length of Project Schedule
TOTAL MAXIMUM SCORE 100
c) The selection committee members must calculate a score for each
of the criteria. The maximum scores are an average of the
committee member's score. The total maximum score is the sum
of the averages.
d) At the time and place previously announced, the Purchasing
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Director or his designee will publicly announce the technical
scores. The Purchasing Director will then unseal the price
proposals and arrive at an adjusted score for each firm by dividing
each firm's price by the technical review score. An example of
how the selection formula works is shown below:
FIRM TECHNICAL BID ADJUSTED SCORE
SCORE
A 90 $300,000 3333
B 80 $230,000 2875
C 70 $400,000 5714
(In this example, Firm B would be recommended for selection.)
e) The selection committee must recommend to the BOCC that the
firm with the lowest adjusted score be awarded the contract unless
the committee's recommendation is to reject all the proposals. The
BOCC reserves the right to reject all proposals.
CHAPTER 6 - CONTRACTS /AGREEMENTS
A. Contract Review
1. All Contracts, leases and /or agreements shall be reviewed by Risk
Management, Purchasing, the appropriate Division Director, and the
County Attorney's Office prior to being placed on the agenda for BOCC
approval. A contract summary will be attached to each
contract /agreement.
2. The Division Director of an approved contract/agreement shall designate a
Contract Manager who shall be responsible for enforcing performance of
said contract /agreement terms and conditions.
B. Requirements
1. Per Fla. Statutes, Chapter 287.0582 all contracts which bind Monroe
County for the purchase of services or tangible personal property for a
period in excess of one (1) fiscal year must have the following statement
included in the contract. "Monroe County's performance and obligation to
pay under this contract, is contingent upon an annual appropriation by the
BOCC."
2. Public Entity Crime Statement. All invitations to bid, request for proposals
and any contract document shall contain a statement which reads as
follows (Section 287.133 FS): "A person or affiliate who has been placed
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on the convicted vendor List following a conviction for public entity crime
may not submit a bid, proposal, or reply on a contract to provide any goods
or services to a public entity, may not submit a bid, proposal, or reply on a
contract with a public entity for the construction or repair of a public
building or public work, may not submit bids on leases of real property to
public entity, may not be awarded or perform work as a contractor,
supplier, subcontractor, or consultant under a contract with any public
entity, and may not transact business with any public entity in excess of
the threshold amount provided in Section 287.017, for CATEGORY TWO
for a period of 36 months from the date of being placed on the convicted
vendor list."
3. Ethics Clause. Each contract /agreement entered into by the County shall
contain in accordance with Section 5 (b) Monroe County Ordinance No.
010 -1990 the following ethics clause; "(Person or business entity) warrants
that he /it had not employed, retained or otherwise had act on his /its behalf
any former County officer or employee subject to the prohibition of
Section 2 of Ordinance No. 010 -1990 or any County officer or employee
in violation of Section 3 of Ordinance No. 020 -1990. For breach or
violation of this provision the County may, in its discretion, terminate this
contract without liability and may also, in its discretion, deduct from the
contract or purchase price, or otherwise recover the full amount of any fee,
commission, percentage, gift, or consideration paid to the former County
officer or employee."
C. CPI Computation
The contract /agreement (lease) amount agreed to herein might be adjusted annually in accordance
with the percentage change in the Consumer Price Index for all urban consumers (CPI -U) for the
most recent 12 months available.
D. Exceptions
1. There are certain expenditures for which the processing of a purchase
order is unnecessary. The following should be made without purchase
orders, but audit slips must be attached to invoices before being sent to
Clerk's Finance Department for payment:
a) Employee expenses such as conference expenses, hotel expenses,
mileage and other reimbursable expenses in performance of day-to-
day duties.
b) Interdepartmental charges - billings for specific office repairs, fuels
from bulk storage, County vehicle maintenance or repairs, etc.
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2. The Purchase of the following specific goods and or services requires a
purchase order and in addition shall be regulated by the appropriate
Administrative Instruction.
a) All radio communications service and equipment - including but
not limited to two -way personnel and vehicle radios, beepers and
etc. Monroe County Administrative Instruction #5800.
b) All telephone systems, lines, services, equipment and audit costs
for same. Monroe County Administrative Instruction #4401.
c) All computers and or data communications hardware, software,
product and services. Monroe County Administrative Instruction
#4401.
d) Business cards are subject to Monroe County Administrative
Instruction #4800.
e) All travel shall be approved and /or regulated by the Monroe
County Administrative Instruction #1003.
All purchase of vehicles, rolling equipment or emergency
generators (excluding fire trucks and ambulances) shall conform to
Monroe County Administrative Instruction #6403.
E. Preference to Florida businesses (FS 287.084)
When required to make purchases of personal property through competitive solicitation and the
lowest responsible and responsive bid, proposal, or reply is a vendor whose principal place of
business is in the State of Florida, then the County may award a preference to the lowest
responsible and responsive vendor having a principal place of business within the State of
Florida. However, this section does not apply to transportation projects for which federal aid
funds are available.
CHAPTER 7 - EXCLUSIONS
A. Sole Source
Purchase of commodities and services from a single source may be exempted from formal
competition; if under $25,000.00 by written justification from the requesting department of the
following conditions:
1. The public emergency for the requirements will not permit a delay
resulting from competitive solicitation.
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2. All Single Source purchases are subject to approval by either the BOCC,
County Administrator or Director of Purchasing at the authorized level of
authority. The Purchasing Section must in all cases evaluate the request
for such commodity, service or source. Any waiver of competition in a
specific instance shall not serve to waive competition of future purchases
of a similar or exact nature.
B. State Contracts, GSA Contracts or SNAPS
Purchases over $25,000 from vendors holding current "State ", "Snaps ", and "GSA" contracts are
exempted from the competitive bidding process. However, before any purchase is made through
an existing contract, the Purchasing Director must first contact other South Florida vendors in
order to determine if the goods or services sought are available at a lower price than the price(s)
of the existing contract. If the goods or services are available from another vendor at a lower
than the price of the existing contract, then the contract for the goods or services must be
awarded to that vendor. The purchase of the goods or services sought may be made through the
existing contract if none of the other vendors contacted by the Purchasing Director offered the
goods or services at a price lower than the price of the existing contract. Please refer to
Administrative Instruction #4803 for the SNAPS program.
C. Previously Approved Projects
Once the BOCC has approved a project, concept, and /or specific capital budget item, subsequent
additional, redundant approval by the BOCC is specifically not required for advertisements,
Requests for Qualifications (RFQ's) or Bids, proposals or reply. (BOCC action 5- 26 -93, Page
93/254 #1).
D. Piggybacking
The County has the option to "piggyback" on another governmental entity's or not for profit
association's competitively awarded bid to take advantage of the pricing received:
1. The requesting department in conjunction with the Purchasing Section
must first verify specifications and award information and receive
permission from both the entity and the vendor to piggyback.
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2. Piggyback purchases over $25,000 are not subject to the competitive
bidding process. However, before any purchase is made through an
existing contract, the Purchasing Director must first contact other South
Florida vendors in order to determine if the goods or services sought are
available at a lower price than the price(s) of the existing contract. If the
goods or services are available from another vendor at a lower than the
price of the existing contract, then the contract for the goods or services
must be awarded to that vendor. The purchase of the goods or services
sought may be made through the existing contract if none of the other
vendors contacted by the Purchasing Director offered the goods or services
at a price lower than the price of the existing contract.
3. Conversely, Monroe County will allow other governmental entities to
piggyback on Monroe County's quotes when requested.
4. Please note the term "piggyback" only applies when the items(s) or
services(s) being purchased are exactly the same as the original award.
CHAPTER 8 - BLANKET PURCHASE AGREEMENTS
A Blanket Purchase Agreement (BPA) is a simplified method of filling anticipated repetitive
requirements for supplies or services by established "Charge Accounts" with qualified vendors
during a specified period (not to exceed 12 months or one (1) fiscal year whichever is less).
BPAs are designed to reduce administrative costs in accomplishing purchases (up to $25,000) by
eliminating the need of issuing individual written purchase orders.
A. BPAs
1. Pre - priced BPAs, also identified as Required Contracts, are issued when
there are repetitive needs for specific items or services and when the exact
quantities and delivery requirements are not known in advance and may
vary. A purchase requisition containing (1) description of the required
items or services, (2) specified period, and (3) estimated quantities for the
specified period, is required to establish a pre - priced BPA Requirement
Contract. BPA cannot be issued without a price.
B. BPA terms and conditions
1. Description of agreement - A statement that the vendor shall furnish
supplies or services when requested by the authorized individual (s) during
a specified period.
2. Extent of obligation - A statement that the County is obligated only to the
extent of authorized purchases actually made under the BPA.
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3. Pricing (Un -priced BPA) - A statement that the prices to the County shall
be as low or lower than those charged to the vendor's most favored
customer for comparable quantities.
4. Purchase limitation (Un -priced BPA) - Dollar limitation for each call order
under the BPA.
5. Authorization - A statement specifying who may place calls against the
BPA (OMB Director).
CHAPTER 9 - RETURN OF PURCHASES
The Policy Office's basic policy is to reject all nonconforming goods or services. All personnel
charged with contractor surveillance shall document findings /reviews /inspections in writing and
assure that one (1) copy of each is forwarded to the Purchasing Section for inclusion in the
purchase transaction file.
Nonconforming goods or services shall be corrected as follows (in order of preference):
1. Request vendor to restock/re- perform any unacceptable quantities /portions
of the contract.
2. Allow contract performance after obtaining some form of consideration.
3. Agee to an equitable adjustment and modify the contract accordingly.
4. Repurchase any unacceptable quantities /portions of the contract and
collect excess cost from the delinquent vendor.
5. Terminate the contract.
6. All corrections for nonconforming goods and services shall be subject to
approval at the appropriate level of purchasing.
CHAPTER 10 - MINORITY BUSINESS ENTERPRISE (MBE), SMALL BUSINESS &
DISADVANTAGED BUSINESSES
On all contracts or contract modifications of over $500,000 ($1,000,000 for construction) and
that have subcontracting possibilities, the Purchasing Director and /or the Division/Department
having project management /oversight responsibilities, should submit an acceptable
subcontracting plan. Under such a plan, maximum practicable opportunities must be afforded to
small and small minority firms. This plan must include:
1. Separate percentage goals for using small business concerns and small
disadvantaged business concerns.
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3. Pricing (Un -priced BPA) - A statement that the prices to the County shall
be as low or lower than those charged to the vendor's most favored
customer for comparable quantities.
4. Purchase limitation (Un -priced BPA) - Dollar limitation for each call order
under the BPA.
5. Authorization - A statement specifying who may place calls against the
BPA (OMB Director).
CHAPTER 9 - RETURN OF PURCHASES
The Policy Office's basic policy is to reject all nonconforming goods or services. All personnel
charged with contractor surveillance shall document findings /reviews /inspections in writing and
assure that one (I) copy of each is forwarded to the Purchasing Section for inclusion in the
purchase transaction file.
Nonconforming goods or services shall be corrected as follows (in order of preference):
1. Request vendor to restock/re- perform any unacceptable quantities /portions
of the contract.
2. Allow contract performance after obtaining some form of consideration.
3. Agree to an equitable adjustment and modify the contract accordingly.
4. Repurchase any unacceptable quantities /portions of the contract and
collect excess cost from the delinquent vendor.
5. Terminate the contract.
6. All corrections for nonconforming goods and services shall be subject to
approval at the appropriate level of purchasing.
CHAPTER 10 - MINORITY BUSINESS ENTERPRISE (MBE), SMALL BUSINESS &
DISADVANTAGED BUSINESSES
On all contracts or contract modifications of over $500,000 ($1,000,000 for construction) and
that have subcontracting possibilities, the Purchasing Director and /or the Division/Department
having project management/oversight responsibilities, should submit an acceptable
subcontracting plan. Under such a plan, maximum practicable opportunities must be afforded to
small and small minority firms. This plan must include:
1. Separate percentage goals for using small business concerns and small
disadvantaged business concerns.
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2. Name of an individual employed who will administer the firm's
subcontracting program.
3. Description of efforts to be made to insure that such firms have an
equitable opportunity to compete for subcontracts.
4. Assurance that the clause at FAR 52.219 -8 will be included in all
subcontracts that offer subcontract opportunities.
5. Assurance to cooperate on surveys for compliance.
CHAPTER 11 - PURCHASE OF INSURANCE
Any purchase of insurance by the Monroe County BOCC shall be treated as the purchase of a
commodity and regulated the same. This includes the methods of solicitation for coverage: by
selection from RFP's; by RFQ's; by sealed bids.
All policies for insurance coverage and contracts for insurance service agencies shall be
renewable yearly for a total of not to exceed three (3) renewal years with BOCC review.
CHAPTER 12 - RECYCLED CONTENT PRODUCTS
The Purchasing Section shall on a continuing basis encourage the use of products and materials
with recycled content. Preference shall be given to the procurement of recycled content products
and materials when it can be determined that such purchases are cost effective, meet
specifications required and are in the best interest of Monroe County.
For the purposes of this section "recycled content" means materials that have been used, recycled
and are contained in the products or materials to be procured as "post" recycled.
CHAPTER 13 - SURPLUS ITEMS
All using county agencies shall submit to the Clerk of the Courts Property Clerk at such times
and in such form as shall be prescribed, reports showing stocks of all tangible personal property
which are no longer used or which have become obsolete, worn out or scrapped.
1. Transfer: The Director of Purchasing shall have the authority to transfer
surplus stock and equipment to other using county agencies.
2. The Director of Purchasing shall have authority to sell, trade or exchange
all supplies and equipment of a value less than the limits proscribed under
Chapter 274 FS ($500.00), which have become unsuitable for County use.
Sales of Surplus Property equal to or in excess of the referenced statutory
limits ($500.00) shall require prior approval of the BOCC.
3. Employees of Monroe County are expressly forbidden to bid on sales of
surplus Monroe County property. No employee's relative, as defined by
Florida Statute Section 112.312, shall be allowed to bid on surplus by
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Florida Statute Section 112.312, shall be allowed to bid on surplus
property over which the employee had custody or authority to initiate or
authorize the decision to surplus. (BOCC 93/77, 2- 10 -93)
CHAPTER 14 - CENTRAL STORES
The Purchasing Section shall, where economically feasible, maintain a complete inventory of
stockpiled, consumable materials and supplies
A. Purpose
1. Permit more effective control and consolidation of purchases;
2. Permit advance procurement of certain items, frequently purchased in
small quantities for immediate consumption, thus making these items
readily available as issued; and
B. Requisitions from Central Stores
The individual departments shall submit orders for inventory items on a requisition form. The
request will be forwarded to the Purchasing Section.
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—A— —I—
addendum 7 insurance 21
Administrative Instructions 17 Inventory Items 22
Advertisement 6
Agenda Item 8 —L—
Appraisal Services 10
Architecture 10 Late bids 9
Audit and Accounting Services 10 legal services 11
. Legal Services 10
—B— low bidder 4
Bid Addenda 7 —M—
Bid Deposit 7
Bid Security 7 MBE 20
bid specifications 6 Medical Services 10
7 Minority business enterprise 20
bids 6 Monroe County Board of County Commissioners 3
Blanket Purchase Agreement 19
Business cards 1
—N-
-C— Non - Collusion 9
nonconforming goods 20
Competitive Selection 10 Notice Inviting Bids 6
computers 17
Consultants 10
Contract Manager 15 —�
Contract Requirements 15 4
Contract Review 15
contracts 4
County Administrator 3 —p
CPI Computation 16 piggyback 18
r Preference to Florida businesses 17
—D— Procurement Policy Office 3
Professional Services 10
DELEGATION OF AUTHORITY 5 Public Entity Crime Statement 15
DemandStar 6 Public Notice 8
DESIGN /BUILD CONTRACTS 11 Purchasing Authority 5
direct negotiations 9 Purchasing Section 4
Drug Free Workplace 9
—R-
-E—
radio communications 17
E.O.C. 5 recycled content 21
equal opportunity 6 Rejection of Bids 9
ethics clause 16 Request to Purchase 5
Exceptions 16
EXCLUSIONS 17 ___s-
-F— sealed bids 8
signature verification 5
Financial Services 10 SMALL BUSINESS & DISADVANTAGED BUSINESSes
20
—G— SNAPS 18
software 17
GSA Contracts 18 Sole Source 5, 17
State Contracts 18
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SURPLUS items travel 17
—T— —W—
telephone systems 17 Waiver of Irregularities 9
Tie Bids 9
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EXHIBIT B
RECORD RETENTION
FLORIDA DEPARTMENT OF STATE
GENERAL SCHEDULE FOR STATE AND LOCAL GOVERNMENT AGENCIES GS1 -SL
RETENTION:
a) Record copy. 6 anniversary years from date of creation or from the date when it last was in effect, whichever is later.
b) Duplicates. Retain until obsolete, superseded, or administrative value is lost.
PROTECTED HEALTH INFORMATION PRIVACY PRACTICES VIOLATION RECORDS Item #330
This record series consists of records of all complaints received concerning the covered entity's privacy policies and procedures
and compliance thereto, the disposition of any of the complaints, and any sanctions applied by the covered entity against
employees failing to comply with the policies and procedures. The records are required HIPAA documentation per
45CFR164.530(d) and 164.530(e). Retention is pursuant to 45CFR164.530(j)(2). See also " HIPAA" items.
RETENTION:
a) Record copy. 6 anniversary years from date of creation or from the date when it last was in effect, whichever is later.
b) Duplicates. Retain until obsolete, superseded, or administrative value is lost.
PUBLIC INFORMATION FILES Item #128
This record series documents an agency's efforts to disseminate information to the public about its programs and services
through such activities as speeches, presentations, exhibits, displays, etc. The series may include, but is not limited to,
speeches (including outlines, speaking points, and drafts), photographs or other illustrations used in agency publications or
displays, and examples of brochures, handouts, or other items meant for public distribution. NOTE: Stocks of agency
publications (e.g., brochures, pamphlets, handbooks, etc.) are not included in this series. See also "NEWS RELEASES" and
"PUBLICATION PRODUCTION RECORDS." These records may have archival value.
RETENTION:
a) Record copy. 90 days. State agencies must contact the State Archives of Florida for archival review before
disposition of records. Other agencies should ensure appropriate preservation of records determined to have long -term
historical value.
b) Duplicates. Retain until obsolete, superseded, or administrative value is lost.
PUBLIC PROGRAM /EVENT RECORDS Item #238
This record series consists of files documenting agency - provided or sponsored events or programs available to the public or
segments of the public. The files may include, but are not limited to, copies of contracts or agreements, participant or performer
information, program details and arrangements, photographs, and audio and /or video recordings. These records relate both to
events staged by the agency and to events staged by a contractor or vendor on behalf of the agency. See also "REGISTRATION
RECORDS: EVENTS."
RETENTION:
a) Record copy. 5 fiscal years after completion of contract or program /event, whichever is later, provided applicable audits have
been released.
b) Duplicates. Retain until obsolete, superseded, or administrative value is lost.
PUBLICATION PRODUCTION RECORDS Item #198
This record series consists of records used to generate publications such as catalogs, pamphlets, leaflets, and other media
items. The series may include, but is not limited to, rough, blue lined, camera - ready, and final copies, as well as illustrations
(e.g., cropped photographs). See also "NEWS RELEASES" and "PUBLIC INFORMATION FILES."
RETENTION:
a) Record copy. Retain until receipt of final, published copy.
b) Duplicates. Retain until obsolete, superseded, or administrative value is lost.
PURCHASING RECORDS Item #42
This record series consists of copies of purchase orders which are retained by the originating office while another is sent to the
Purchasing /Business Office and the appropriate vendor for action. The series may include, but is not limited to, copies of
requisitions sent by the originating office to supply, purchasing, graphics, duplicating, or other sections for action; copies of
receiving reports; and a log of outstanding and paid requisitions and purchase orders used for cross - referencing purposes. See
also "DISBURSEMENT RECORDS: DETAIL."
RETENTION:
a) Record copy. 5 fiscal years provided applicable audits have been released.
b) Duplicates. Retain until obsolete, superseded, or administrative value is lost.
RADIO LOGS Item #292
This record series consists of a log recording the time radio calls were received /placed, who the transmitting parties were, the
reason for the call, if additional units were dispatched to a location, or if information was retrieved and transmitted back to the
caller. These logs may be used in regards to police, fire, EMS, or other radio dispatch operations including road and bridge or
development departments. See also "911 RECORDS: LOGS" and "COMMUNICATIONS AUDIO RECORDINGS."
RETENTION:
a) Record copy. 1 fiscal year.
VIII. AUDITEE RESPONSES —
County Administrator's
COUNTY'S RESPONSES TO
MONROE COUNTY INTERNAL AUDIT DEPARTMENT
AUDIT CONCLUSIONS FINDINGS AND RECOMMENDATIONS FOR MARINE
RESOURCES
BIDDING PROCESS FOR DERELICT VESSEL REMOVAL
1. In September 2008, the Marine Resources Department solicited quotes for the removal of a
derelict vessel. The lowest quote was for $37,890, and therefore a competitive bid process was
required according to the Monroe County Purchasing Policy.
Staff Response:
Long -term contracts were approved by the BOCC with multiple companies to remove derelict vessels.
The contracts (all identical) detail the procedures that staff shall follow in regard to soliciting, awarding,
and paying a contractor for any derelict vessel removal job. Staff followed the procedures outlined in
the BOCC approved contracts, by soliciting quotes and ensuring that the lowest quote was awarded for
the job. As stated in the agenda item summary for the contracts, the purpose for the contracts is to
"provide for a more efficient derelict vessel removal program, meet Purchasing Guidelines, and
eliminate the need for contracts for individual jobs." The intent was to eliminate the lengthy process of
going through the Purchasing Department and the BOCC, allowing staff to expedite the removal of
derelict vessels that are often a hazard to navigation. It has been staff's understanding that the approved
contracts allowed for the Marine Resources Office to authorize the removal of derelict vessels, using the
lowest quote, and eliminated the need to take individual jobs before the BOCC. By following the
procedures established in the derelict vessel contracts, staff is able to comply with the competitive bid
process without any additional advertising. With the contracts in effect, there appears to be no
additional need to solicit quotes in conjunction with the Purchasing Department or obtain additional
BOCC approval.
2. The Marine Resources Department did not maintain copies of vendor quotes.
Staff Response:
Staff has, and continues to maintain copies of vendor quotes for individual derelict vessel removal jobs.
Of the requests for quote documentation by the internal auditors, there were several jobs for which
complete quote documents could not be located at the time of the request. This situation is due to
restructuring of the Marine Resources Office which resulted in the elimination of the position of the
Administrative Assistant who, at the time, was managing the derelict vessel documentation (It should be
noted that all quote documents are submitted by the Marine Resources Office to the Purchasing
Department, along with invoices and signed Task Orders, for payment. Therefore additional copies of
any received quotes are available from the Purchasing Department for record retention purposes). The
records retention law does not require the retention of duplicate records. The official record is
maintained by the Purchasing Department. I have since taken over all the duties of the derelict vessel
removal program and am managing all files and documentation relating to derelict vessel contracts and
removal jobs.
3. In 2008, the Marine Resources Department solicited quotes for the removal of derelict vessels
and did not receive the appropriate purchasing approvals according to the Monroe County
Purchasing Policy.
Staff Response:
See response to item 1 (above).
4. Three (3) out of the twenty -five (25) derelict vessel removals that Internal Audit sampled had a
total cost that ranged from $10,000.01 - $25,000 and therefore the solicitation of quotes should have
been gathered in conjunction with the Purchasing Department.
Staff Response:
See response to item 1 (above).
5. BOCC should develop a policy and procedure for soliciting quotes from a pre - approved vendor
list.
Staff Response:
The long -term contracts approved by the BOCC for derelict vessel removals are not simply approvals of
vendors, but rather contracts that provide for soliciting, awarding, and paying vendors for derelict vessel
removals. It appears that while the intent of the contracts was to allow staff to perform derelict vessel
removals in an efficient and expedient manor, there is some ambiguity regarding whether or not the
contracts themselves meet, or supersede, Purchasing Policy. It may be necessary to go back to the
BOCC for clarification and make further provisions to enable Marine Resources staff to process
derelict vessels without coordination with the Purchasing Department or additional BOCC approval.
The issue could be resolved, if necessary, via a resolution from the BOCC or by ratifying the existing
contracts to clarify the procedures relating to the solicitation of bids and cost authorizations.
VII. AUDITEE RESPONSES —
Marine Resources Department
( --"'" — BOARD OF COUNTY COMMISSIONERS
—a - ; Mayor George 9 Neu en 9 t, District 2
-„r7 I q � �� M a or Mayor Pro Tem Sylvia 3. Murphy, District 5
a, t' ° •. Kim Wi District 1
O U N TY M O N RO E ' • - 10 ,- , `� Heather Carruthers, District 3
KEY WEST FLORIDA 33040
• r� Mario Di Gennaro, District 4
�y ;i� ar3r7" (305) 294 -4641 iy - --, Loc .. Monroe County '16* i .1: s';'
Board of County Commissioners
Office of the County Administrator
The Historic Gato Cigar Factory �N •
1100 Simonton Street, Suite 205 ■
Key West, FL 33040 ' ...,. i +~
(305) 292 -4441 — Phone y
(305) 292 -4544 - Fax __ r
May 15, 2009
Mark Albury
Director of Internal Audit
Monroe County Clerk's Office
500 Whitehead St.
Key West, Fl. 33040
RE: Draft Preliminary Audit Report — Marine Resources Bidding Process for Derelict Vessel Removal
Dear Mr. Albury:
I have reviewed the audit report and worked with staff to provide a response to the recently completed
draft audit report prepared by the Internal Audit Department of the Clerk of the Circuit Court.
The internal auditors met with Rich Jones several times over the past six months to gather information
pertaining to the procedures followed by the Marine Resources Office regarding the hiring of contractors
for derelict vessel removals. Data was provided to the auditors both during meetings and via e-mail in
response to multiple requests for pertinent information. The information requests focused on derelict
vessel removal jobs that took place subsequent to the establishment of long -term contracts with qualified
vendors to remove derelict vessels and marine debris.
Historically, the Department of Marine Resources issued no bid contracts to private contractors. No bid
contracts were issued due to the length of time required to go through the RFQ process, and the life safety
issues associated with navigational hazards caused by derelict vessels. However, yearly totals per
contractor exceeded the $25,000 cap. The Clerk of the Court considered this a breach of purchasing policy
and required an alternative solution. The solution recommended by both the Clerk of the Court and the
County Attorney was to pre - qualify contractors through long terms contracts to provide the service of
derelict vessel removal. It was the intent of the BOCC to provide rapid response to derelict vessels without
creating individual contracts for each removal job. The Monroe County Attorneys Office, in conjunction
with the Marine Resources Office, developed long -term contracts which were taken before the BOCC for
approval at the March and April 2008 Board meetings. The contracts were designed to alleviate the need
to go through the prolonged process involving the Purchasing Department and the BOCC to remove
derelict vessels. The new long -term contracts allow Monroe County to remove derelict vessels, which are
often a public safety concern, in a timely manner without the need to solicit bids in conjunction with the
Purchasing Department or go before the Board for approval.
I look forward to reading your final report and will take up the issues with staff at that time. Accordingly,
please copy Ms. Hutton and Andrew Trivette on the final report, so that they can work with staff to take
corrective actions.
Sincerely
v`
' oman Gastesi
County Administrator
Cc:
Andrew Trivette
Rich Jones
Suzanne Hutton