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Item N4BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: 1/16/2014 Department: County Attorney's Office Bulk Item: Yes X No Staff Contact: Christine Limbert- Barrows 292 -3470 AGENDA ITEM WORDING: Approval of the revised Purchasing Policies and Procedures Manual ITEM BACKGROUND: The Purchasing Policies and Procedures Manual is being revised to reflect correct, updated and improved administrative instructions; to clearly outline the purchasing authority levels and modify the requisite request to purchase forms from $250 to $1,000.01; to include all updated forms and other minor changes. PREVIOUS RELEVANT BOCC ACTION: 3/21/12, approval of Section 2 -346 and 2 -347 of the Monroe County Code regarding competitive bidding procedures. 9/21/12, approval of revisions to the Purchasing Policies and Procedures Manual. CONTRACT /AGREEMENT CHANGES: The changes are reflected with S#r4ket-hough text for deletions and underline text for additions. STAFF RECOMMENDATIONS: Approval TOTAL COST: N/A INDIRECT COST: BUDGETED: Yes No DIFFERENTIAL OF LOCAL PREFERENCE: COST TO COUNTY: SOURCE OF FUNDS: REVENUE PRODUCING: Yes No APPROVED BY: County A AMOUNT PER MONTH Year OMB /Purchasing Risk Management DOCUMENTATION: Included X Not Required DISPOSITION: AGENDA ITEM # Monroe County Purchasing Policy Monroe County Purchasing Policy and Procedures Table of Contents CHAPTER 1 - INTRODUCTION ........................................................ ..............................4 CHAPTER 2 - AUTHORITY & DUTIES ............................................. ..............................4 A. Board of County Commissioners ................................................................................... ..............................4 B . County Administrator ..................................................................................................... ..............................4 C. Office of Budget and Finance ........................................................................................ ..............................5 D . Requesting Department .................................................................................................. ..............................6 E . Delegation of Authority ................................................................................................... ..............................7 F. Purchasing Authority ...................................................................................................... ..............................7 G. Non - discrimination .......................................................................................................... ..............................9 CHAPTER 3 - COMPETITIVE SOLICITATION PROCESS .............. ..............................9 A. Notice Inviting Competitive Solicitation ........................................................................ ..............................9 B. Procedure for Competitive Solicitation ........................................................................ .............................13 C. Tie Bids /Proposals .......................................................................................................... .............................15 D . Rejection of Bids /Proposals ........................................................................................... .............................15 E . Waiver of Irregularities ................................................................................................. .............................16 F. Award of Contract .......................................................................................................... .............................16 CHAPTER 4 - PURCHASE OF PROFESSIONAL SERVICES ........ .............................16 A. Definition ......................................................................................................................... .............................16 B . Methods of acquisition ................................................................................................... .............................17 CHAPTER 5 - DESIGN /BUILD CONTRACTS ................................. .............................17 A. Procedure ........................................................................................................................ .............................17 CHAPTER 6 - CONTRACTS /AGREEMENTS ................................. .............................20 A. Contract Review ............................................................................................................. .............................20 B . Requirements .................................................................................................................. .............................20 Page 2 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures C . CPI Computation ........................................................................................................... .............................21 D . Exceptions ....................................................................................................................... .............................21 E . Preference to Florida businesses (FS 287. 084) ............................................................. .............................22 F. Preference to businesses with drug -free workplace programs (F.S. 287. 087) .. ............................122 CHAPTER7 - EXCLUSIONS ........................................................... .............................22 A. Sole Source ...................................................................................................................... .............................22 B . Emergency Purchases ....................................................................... .............................23 C. State Contracts, GSA Contracts or SNAPS ................................................................. .............................25 D . Previously Approved Projects ....................................................................................... .............................26 E . Piggybacking ................................................................................................................... .............................25 CHAPTER 8 - BLANKET PURCHASE ORDERS ............................ .............................26 CHAPTER 9 - MINORITY BUSINESS ENTERPRISE (MBE), SMALL BUSINESS & DISADVANTAGED BUSINESSES ......................... .............................27 CHAPTER 10 - PURCHASE OF INSURANCE ................................ .............................27 CHAPTER 11 - RECYCLED CONTENT PRODUCTS ................... ............................... 27 CHAPTER 12 - SURPLUS ITEMS ................................................... .............................28 CHAPTER 14 - PURCHASING CARD POLICY ...................... .............................33 Page 3 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures MISSION STA TEMENT Purchasing Section Monroe County Administrative Services Our mission 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 the public funds, while promoting fair and open competition. • We strive to create a work environment that demonstrates teamwork, respect, integrity and honest communication. The purpose of the County's Purchasing Policy (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 of which are codified in the Monroe County Code (MCC), most recently in effect. 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. The BOCC shall decide all matters of policy including those referred to it by the Chief Procurement Officer. 2. No contract for goods or services may be awarded without the approval of the BOCC, unless authorized by MCC or this policy. B. County Administrator 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. The purpose of such administrative instruction shall be to clarify or refine the provisions of the County code on purchasing and /or the Purchasing Policies and Procedures. In the event of any inconsistencies, the County Code provisions shall prevail over Policies and Procedures, the Policies and Procedures shall prevail over Administrative Instructions. Page 4 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures 2. The County Administrator has contract approval authority as set forth in Monroe County Code section 2 -58 subsections (b) through (e). C. Office of Budget and Finance There is a Purchasing Section within the Department of Budget and Finance. The Director of Budget and Finance 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 duties of the Purchasing Section are as follows: (a) 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 in writing the need for a special type of item. (b) 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. (c) Seeks purchases through State, Federal Agencies, Associations or other governmental agencies if the Requesting Department makes a request for same and such purchases may be in the best interest of the County. (d) Reviews all request for purchases of goods and services. Upon review and receipt of a request to purchase from the requesting department, the purchasing section will issue the purchase order with a copy to the Clerk's finance department, including the request for purchase if the purchase is for X58- $1,000.01 or more or is approved by the BOCC. In the event of an irregularity or departure from policy, the purchase order will be referred to the Division Director or County Administrator. (e) The Purchasing Section will post procurement opportunities on DemandStar. In the event a department maintains a list of potential bidders /proposers (with fax number or email address) that list should be provided to the purchasing section for upload to DemandStar. Page 5 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures (f) Checks convicted /suspended vendor list prior to issuance of a bid tabulation. (g) Tabulate the responses to RFBs and submit the tabulation to the Requesting Department for determination of the low bidder. When one or more bidders propose(s) an alternative as "an equal" to that specified in the competitive solicitation. Whether the proposed substitution is, in fact, an equal is to be determined by the Requesting Department. (h) Reviews all requests for contracts for goods and services prior to submission to the BOCC for review and execution. (i) Issue purchase orders in response to request to purchase, and forwards the purchase orders to the Clerk's Finance Department unless the item is below $2-50 $1,000.01 dollar value or the purchase has been made through a competitive solicitation which has been approved by the BOCC. D. Requesting Department 1. Must submit a written or electronic "Request to Purchase" to the Purchasing Section for all purchases of goods and services that exceeds $250.00 $1,OOO.Provides adequate description of needed items so the Purchasing Section can assist in preparing specifications to procure the desired items and or services. 2. 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. 3. Ensures that internal controls are present within the department that include, at a minimum, that there are a minimum of two people involved in the initiation of the Request to Purchase through the verification of receipt of goods or services with a person other than the one who order the item verifying receipt by signing the invoice, bill of lading or other similar document. For goods that are purchased in any individual purchase order for which the total dollar amount equals or exceeds $2,500 internal controls should be increased either through additional employees involved in the process and /or through thorough documentation of the receipt and application of the goods. 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. Page 6 Purchasing Revised 12113 Monroe County Purchasing Policy and Procedures The Requesting Department or the vendor must complete a "Vendor request form" and "W -9" if such documentation is not already maintained in the finance system. 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. The Purchasing form shall Unless specifically authorized by ordinance, all contracts, however titled — Memorandum of Agreement, Agreement, Memorandum of Understanding, Contract etc. — shall be approved by the Board of County Commissioners. 1. In order to ensure pier fiscal control purchasing Authority shall be limited to the County Administrator, Deputy County Administrator, Purchasing Director, Division Directors, and Department Director, unless a designee is approved and authorized by the County Administrator or Deputy County Administrator. 111 Vili{✓ a°-- to easufe proper fiseal ee The County Administrator and Deputy County Administrator shall have authority to sign request to purchase up to $49,999.99. The Purchasing Director and Division Directors shall sign off on all purchase orders and shall have authority to sign purchase orders up to —$ 0,000 $25,000 without the Administrator or Deputy Administrator signatures. PURCHASING LEVELS WHAT TO DO? PURCHASING AUTHORITY FOR TOTAL DOLLAR (WHO APPROVES /PAYS) AMOUNT $-01-$1,000.00 Purchase Order not required Department Director or their designees $1,000.01 - $5,000.00 Requires Request to Purchase form written or Department Director only electronic to Purchasing. $5,000.01 - $25,000.00 Request to Purchase form along with two (2) or Purchasing Director and Division more written price quotes as documented by Director only Requesting Departments. $25,000.01 - $49,999.99 Request to Purchase form along with two (2) or County Administrator only more written price quotes. Requesting Department will solicit bids in conjunction with the Purchasing Department. $50,000.00 AND OVER Competitive Bid process BOCC BOCC prior approval required. Governed by County ordinance, as supplemented by the Purchasing Policies and Procedures Manual. Page 7 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures 2. If the County Administrator or Purchasing Director determines such to be in the County's best interests, the requirements for two or more written quotes or competitive solicitation may be required for purchasing goods or services at a lower level of procurement requirements than shown in the £twin chart. 3. A contract may not be split into multiple contracts for services, goods or public improvement for the purposes of evading the requirements of this section. Where a procurement of services, goods or public improvement are cyclical in nature or have to be procured in phases, the requesting department shall, to the maximum extent practicable, contract for the full scope of the service, good or public improvement based on an estimate of the full scope of service, good or public improvement anticipated to be required at the time of bidding. For purposes of this section when consecutive multiple contracts for services, goods or public improvement are issued because the full scope of the service, good or public improvement are unknown or cannot be determined or is a function of the funding source (e.g. grant funding available for a portion and further grant funding unknown) or as a result of other agency requirements (e.g. sewer connection notices), such contracts shall not be considered as split and each contract shall stand alone for purposes of purchasing level classification. 4. The following purchase thresholds shall be applied to all purchases based on the cumulative value of the purchase regardless of whether the purchase is a one -time, one event, purchase or a recurring, multiple event purchase which may exceed a 12 month period. 5. The actual amount of the invoice, bill of lading or similar document shall not exceed the purchase order amount by more than 20 %. Page 8 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures 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 SOLICITATION PROCESS A. Notice Inviting Competitive Solicitations Page 9 Purchasing Revised 12113 Monroe County Purchasing Policy and Procedures The competitive solicitations notices shall comply with any applicable statutes and the following shall also apply: Page 10 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures C) The competitive solicitations for services, goods or public works that are projected to cost $500,000.00 or more must be publicly advertised in a newspaper of general circulation in the County, on a date that is no later than 45 days (excluding the publication date) before the date established for the for the b - o Ueti iy s olicitation opening In addition, Notice shall also be publicly posted by the Purchasing QLfic Se -in a consistent public location for the same time periods shown above. 4. All , cqjg1Wityg received must remain valid for a minimum period of ninety (90) days from the a %4 gqm share solicitation, opening. Page 1 l Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures 6. 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 competitive solicitation. A ddenda must b e 1) d anA ava ablq o no later.than i s e s ar t d�legj e a g p . cat UgjLt the )p i n , nd /o in (Ir it , c, yvi :h gl tl 2 _ pll al I t i ent: .r. q _, to eaeh cogs ° -et tiY solicitation. C) Each r Mme j W diW-propoaff shall examine all competitive solicitation documents and shall judge all matters relating to the adequacy and accuracy of such documents. Any inquiries, suggestions, or requests concerning interpretation, clarification, or additional information pertaining to the competitive solicitation 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, Monroe County will attempt to notify all prospective t esd c 4id who have secured the same. Page 12 Purchasing Revised 12113 Monroe County Purchasing Policy and Procedures B. Procedure for Competitive Solicitation 3. All Respondents submitting 1 for construction, improvement, remodeling or repair of public buildings, will furnish evidence that they bidden p -*jw*',ef holds- the r til ed 1 t 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 Purchasing Office kfima gtv. shall certify and keep a record of said openings. All � pjnp(Lt Ltive solicitations hids shall be stamped with the date and time of receipt by the Purchasing Office4affand remain under lock. Page 13 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures 6. The Requesting Department shall review the information submitted pursuant to MCC Section 2- 347(h) in determining a responsible r ondg a ., ti ., w The Department head/Requesting Department may consult with the County Attorney or other departments to assist with the evaluation or investigation of this information. a) The Requesting Department may use a selection committee appointed by the Department or Division director to review, analyze, evaluate and rank/rate the applicable solicitation responses received and report their findings to the BOCC for consideration and approval. In the event a selection committee is to be used, the solicitation shall so specify. Selection committees shall be comprised of no less than three(3), and no more than seven (7), members. Each selection committee shall have at least one member who is employed by the requesting department and at least one member who is not employed by the requesting department. Depending on the extent of technical information that may be contained in any solicitation, the Department or Division director may appoint several members from his department, but no more than 2/3 of the members may be from the same department. There shall be no consultants contracted by the County and no County Commissioners on a selection committee. Generally, no County Attorney shall be a voting member of a selection committee unless the County Attorney's office is the requesting department. If the issue(s) involve any other government agency, the Department or Division director may appoint someone from an affected agency to be on the committee. 7. 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 Qffice ` to be retained in the competitive solicitation file. Page 14 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures 9. The County Administrator and/or appropriate Division or Department Director will be responsible for presenting recommendations to the BOCC. 10. Once the BOCC has made a decision, the Requesting Division Director or Department Head or the designated contract manager will be responsible for ensuring the accomplishment of that which was approved and issuing a P.O. for the full contract purchase amount. 11. When the BOCC directs staff to provide for oral presentations to be made on a competitive solicitation all the procedures in F.S. 286.0113, F.S. 119.07(1) and Section 24(a), Art I. of the State Constitution shall control. C. Tie Responses idslRrepesal� D. Rejection of Responses Bk1S44WGsals 1. The BOCC shall have the authority to reject any and all af+y-othtT-responses to a competitive solicitation request. 2. If the lowest, responsible p� pons `., s l exceeds the budgeted amount and the BOCC does not appropriate additional funds, the requesting authority may solicit approval from the BOCC to amend the project specifications and re- advertise the competitive solicitation. 3. If no res cn bidqwoposal is received, the BOCC may be requested to authorize the County Administrator to undertake a different level of competitive selection, including but not limited to a request for letters of interest, and, upon receipt of any response to get approval from the BOCC to proceed with a second mechanism, which may include 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 responses &,--p"iesals-er-fetAies. Any and all pqsponsqs bids,- pfopeial ° , s, received after the time and date of acceptance will not be accepted. Page 15 Purchasing Revised 12113 Monroe County Purchasing Policy and Procedures E. Waiver of Irregularities The BOCC shall have the authority to waive any and all irregularities in any and all formal bids, proposals or other responses to competitive solicitation requests. F Award of Contract The Mayor, when authorized by majority vote of the BOCC, shall execute formal contracts having a binding effect upon the County. 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 125.355, FS). 2. Architecture, 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 authorized by the Office of the County Attorney, including expert witnesses, conflict counsel, Division of Administrative Hearings (DOAH) services, lobbying services, interpreter services, court reporting services or advertising services and any other services required by the Office of the County Attorney. 7. Medical Services - medicine, psychiatry, dental, hospital, and other health professionals. Page 16 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures 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. When purchasing professional services below $50,000.00, obtaining price quotes as set forth in Chapter 2 of this policy is strongly recommended, but are not required. The Requesting Department should document why price quotes are not provided. The County Administrator may require competitive solicitation bidding in the form of an RFQ or RFP. Professional services, subject to the competitive solicitation process, will be typically acquired through one of the following methods: 1. Competitive Selection and Negotiation - per Chapter 287.055, (4) & (5) F.S. Consultants Competitive Negotiations Act ( "CCNA "). 2. Request for Qualifications (RFQ). a) Responding firms are ranked based upon criteria set forth in the RFQ. If presentations are requested by the County they will be held in compliance with F.S. 286.0113. b) The County will negotiate a contract with the firm selected by the BOCC as the highest ranked firm /individual. C) The negotiated contract will be reviewed and placed before the BOCC for approval. 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. Procedure 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, F.S. and the procedures set forth in this section. 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: Page 17 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures (1) Certified under Chapter 489.119, F.S., to engage in contracting through a certified or registered building contractor as the qualifying agent: and; (2) Certified under Chapter 471.023, F.S., to practice or to offer to practice engineering; certified under Chapter 481.219 F.S., to practice or to offer to practice architecture; or certified under Chapter 481.319 F.S., 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. 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 F.S. to practice architecture or landscape architecture or a firm who holds a current certificate as a registered engineer under Section 471 F.S. 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 BOCC. If the BOCC 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 F.S. The design criteria services of a firm under continuing contract may also be utilized if the project construction costs are estimated not to exceed $2million and provisions for design criteria services are included within or added to such contracts. All solicitations Page 18 Purchasing Revised 12113 Monroe County Purchasing Policy and Procedures 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. 4. Upon completion of the Design Criteria Package, procurements of Design/Build services shall be processed in a manner consistent with Chapter 3 Competitive Solicitation Process. 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 Division or Department 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 Division or Department may use a process established by statute and authorized by the BOCC, however, for all design/build competitive selection documents the following shall apply: a) Proposals must consist of a technical proposal and a price proposal. The two proposals must be segmented into separate sealed packages and clearly marked (1) The technical proposal must include all the information requested in response to the scope of services described in the design criteria package (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. Page 19 Purchasing Revised 12113 Monroe County Purchasing Policy and Procedures 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. All agenda item summaries and contract summaries accompanying agenda items shall be prepared by the Requesting Department. 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 requests for competitive solicitation and any contract document shall contain a statement which reads as follows (Section 287.133 FS): "A person or affiliate who has been placed 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 Page 20 Purchasing Revised 12113 Monroe County Purchasing Policy and Procedures 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." 4. Non - Collusion Statement: Each bid shall contain the appropriately worded non - collusion certification. 5. Drug Free Workplace: Each bid shall contain an executed "Drug Free Workplace" form. C. CPi Computation A multi -year contract/agreement amount agreed to herein may be adjusted annually in accordance with the percentage change in the Consumer Price Index for all urban consumers (CPT -U), for the year ending December 31 of the previous year. 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. 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 #5511. b) All telephone systems, lines, services, equipment and audit costs for same. Monroe County Administrative Instruction #4401. Page 21 Purchasing Revised 12113 Monroe County Purchasing Policy and Procedures 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 #4716. f) All purchase of vehicles, rolling equipment or emergency generators (excluding fire trucks and ambulances) shall conform to Monroe County Administrative Instruction #6402. 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 Les cans l " , , . 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. F. Preference to businesses with drug -free workplace programs (F.S. 287.087) Whenever two or more s ones W ns� , _ �° that are equal with respect to price, quality, and service are received by the County for the procurement of commodities or contractual services, a rgj � hip � x , or ° y received from a business that certifies that it has implemented a drug -free workplace program shall be given preference in the award process. CHAPTER 7 - EXCLUSIONS A. Sole Source Purchase of commodities and services from a single source may be exempted from formal competition under the following conditions: 1. All Sole Source purchases are subject to approval by either the BOCC, County Administrator or Purchasing Director in accordance with purchasing level authority. The Purchasing Office , %n must in all cases evaluate the request for such commodity, service or source. The Purchasing Director shall be authorized, after initial sole source certification, to make additional purchases from a sole source vendor for Page 22 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures not more than one year or until such time as contrary evidence is presented regarding sole source eligibility, whichever period is less. 2. There must be a documented determination from the Requesting Department or person that there is no other source readily available prior to the initiation of the sole source procurement. a. The Requesting Department shall document the search conducted to ascertain that there is no other source available. The search shall include phone calls, e- mails, and letters to procurement offices or the Requesting Department's counterpart in other Florida counties as well as to entities listed in the County's vendor list and the phonebooks for Monroe County and Miami -Dade County in business classifications which might reasonably be expected to provide the goods or services desired. The documentation shall include a log of phone calls made and the emails and letters sent with a compilation of results from all phone calls, responding letters and other correspondence. b. Where the procurement itself, due to the nature of the goods or services (i.e. in order to obtain conformity to existing contracted goods or services, in order to avoid the loss of warranty coverage, proprietary licensing, equipment capability, etc.), dictates sole source acquisition, the Requesting Department shall provide written justification as to the sole source nature of the procurement. C. Upon approval from the BOCC, County Administrator, or Purchasing Director that the proposed provider is a sole source provider, the Requesting Department may proceed with the procurement process. B. Emergency Purchases The term "emergency" is as defined in Section 2- 347(k)(1) of the Monroe County Code. Purchase of commodities and services in the event of a public emergency may be obtained under the following conditions: 1. The public emergency for the requirements will not permit a delay resulting from competitive solicitation. Page 23 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures 2. With respect to an emergency as defined in Section 2- 347(k)(1)a. -c. of the Monroe County Code: a. Where the value of the goods or services to be purchased is less than $50,000.00, emergency purchases may be approved up to the spending levels outlined in Chapter 2 Section F, above without the need for obtaining competitive price quotes. b. Where the value of the goods or services to be purchased equals or exceeds $50,000.00, the purchase may be approved by the Mayor, or if the Mayor is not available then the Mayor Pro Tem, or if the Mayor and the Mayor Pro Tem are not available then County Commissioners in order of priority based on longest consecutive tenure on the Board of County Commission, but the purchase must be ratified after- the -fact by the Board of County Commissioners at the next practicable meeting of the BOCC. 3. With respect to an emergency as defined in Section 2- 347(k)(1)d. of the Monroe County Code, the purchase may be approved up to the spending levels outlined in Chapter 2 of this Manual, including the requirement to obtain competitive price quotes, where necessary. 4. Where the purchase of goods or services requires a contract, the contract must be ratified after -the -fact by the Board of County Commissioners at the next practicable meeting of the BOCC. 5. Authorization During Normal Business Hours. In the case of emergencies that require the immediate purchase of goods, equipment, or services, the County Administrator, Purchasing Director, Department Director Mead, or his a properly authorized designee shall be empowered to secure such goods or services without competitive selection. In this event, all measures reasonably possible under the circumstances shall be taken to assure the maximum cost benefit to the County of the goods or services procured. 6. Authorization Outside of Normal Business Hours. A department or division head Director , during non - business hours, is authorized to make purchases without competitive solicitation, when an emergency arises. 7. Documentation and Approval. Documentation for emergency purchases pertaining to the above shall be submitted to the Purchasing Office with a detailed explanation, and support material attached, if applicable, within ten (10) workdays after the event occurred. Emergency purchases below the competitive solicitation thresholds shall be approved by the County Administrator after -the- fact. All emergency purchases equal to or exceeding $50,000.00 must be approved by the BOCC after - the -fact. 8. All emergency purchases are subject to approval by either the BOCC, County Administrator or Director of Purchasing at the authorized level of authority. Any Page 24 Purchasing Revised 12113 Monroe County Purchasing Policy and Procedures waiver of competition in a specific instance shall not serve to waive competition of future purchases of a similar or exact nature. Emergency purchases are to be used only when unforeseen circumstances occur. Poor planning does not constitute an emergency. C. State Contracts or GSA Contracts Purchases equal to $50,000 or more from vendors holding current "State" and Government Services Administration herein after ( "GSA ") contracts are exempted from the competitive bidding process. However, before any purchase is made through an existing contract, the Requesting Department 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 pr c 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 Requesting Department offered the goods or services at a price lower than the price of the existing contract. The Purchasing Directo Manager- will review and verify the Requesting Department's information or documentation. E. 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. 2 Piggyback purchases equal to $50,000 or more are not subject to the competitive solicitation process. However, before any purchase is made through an existing contract, the Requesting Department 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 Requesting Department offered the goods or services at a price lower than the price of the existing Page 25 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures contract. The Purchasing Qjrector Manager will review and verify the Requesting Department's information or documentation. 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. 5. The following is intended as an exception to paragraph (E)2., above. In the case of the purchase of vehicles and tires by piggybacking on the bid program organized by the Florida Sheriff's Association or any other not- for- profit corporation that has issued a request for competitive solicitation in order to assemble bids or proposals for the purchase of goods through public procurement process that meets the essential requirements of Section 287.057, F.S., an item will be eligible for purchase only if the Requesting Department can demonstrate that: (a) the specifications and price for the base vehicle being purchased, without options, match exactly with the base vehicle shown in the operative bid award issued by the Florida Sheriff's Association; (b) the specifications and price for the options being purchased as an add -on to the basic vehicle match exactly with one or more of the options available for that basic vehicle as shown on the operative bid award issued by the Florida Sheriffs Association; (c) the vehicle is being purchased from a dealer approved in the bid award; and (d) in all other respects, the purchase conforms with the procedure laid out in the bid award. CHAPTER 8 - BLANKET PURCHASE ORDERS A Blanket Purchase Order (BPO) is a simplified method of filling anticipated repetitive requirements for supplies or services with qualified vendors during a specified period (not to exceed 12 months or one (1) fiscal year whichever is less). BPOs are designed to reduce administrative costs in accomplishing purchases (up to $50,000) by eliminating the need of issuing individual written purchase orders. 1. BPOs 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 get a pre -priced BPO. BPOs cannot be issued without a maximum dollar amount. A BPO shall be authorized in writing by the Division or Department Director or their designee. Page 26 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures CHAPTER 9 - 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, and for all federally funded contracts, 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: Separate percentage goals for using small business concerns and small disadvantaged business concerns. 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 (as applicable). 5. Assurance that federally funded contracts comply with the provisions contained therein. 6. Assurance to cooperate on surveys for compliance. CHAPTER 10 - 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. All policies for insurance coverage shall have an initial term and shall thereafter be renewable yearly for up to three (3) additional years with BOCC review. CHAPTER 11 -RECYCLED CONTENT PRODUCTS The County 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. To the extent feasible each department shall keep a compilation of the number and amount of recycled product or materials it purchases each fiscal year. Page 27 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures CHAPTER 12 - SURPLUS ITEMS The objective of this policy is to ensure that all County assets are properly tracked and disposed of in compliance with Florida statutes. The following rules apply to all departments and divisions in possession of fixed assets belonging to Monroe County. The rules also apply to constitutional officers, contracting parties, and third party entities in possession of fixed assets belonging to Monroe County. (Each such department, division, or office shall be known as a "using agency ".) Contracting parties in possession of tangible non - consumable property owned by Monroe County which is no longer used or which has become obsolete, worn out or which the parties believe should be scrapped shall submit reports identifying such property to the division or department responsible for their contract, which in turn shall forward the reports to the Clerk of the Court, Property Clerk. 1. Each using agency shall assign a person who will be primarily responsible for maintaining the fixed assets of the Department, Office, or Division ( "Property Custodian "). 2. Classification of Surplus Property: a) Property may be designated as surplus by the using agency for any of the following reasons: (1) It becomes inoperable and cannot be repaired; (2) It is more economical to replace the asset than to repair it; (3) Property become obsolete; (4) The department or division or office no longer has need of the item; or (5) It is scheduled for replacement as a matter of policy. b) All property that is declared surplus shall be designated into one of four (4) categories: (1) Vehicles; (2) Property with a historical purchase value equal to or greater than $1,000 (fixed asset, with property ID #); (3) Property with a historical purchase value less than $1,000 (non -fixed asset, no property ID #); (4) Computers, computer - related, and telecommunication equipment. Page 28 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures 3. After the property has been placed into a specific category the following procedures will be used for disposition: (1) If the asset has a useful life, it will be offered to all other County departments and divisions by use of County e -mail for a period of 10 days, on a first come, first serve basis. A Fixed Asset Transfer Form will be completed by the receiving and transferring department, office or division and submitted to the Property Clerk with a copy to Risk Management. (2) Property estimated to have a fair market value equal to or greater than $5,000 shall be sold by goulp i v sci tl l I loo : n to the highest responsible � z l° 4kkle = after publication of notice of at least one week and not more than two weeks in a newspaper of general circulation within the county, and additional notice if in the opinion of the using agency it will serve the best interests of the county. Page 29 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures (b) CrtaC1 a rora re t compt,fitiv solicitations for sale of Ins Prop R art > - — 1H V RLiLf — the - fully executed on Deletion ter &. Form or Monroe UL�L -- f2my Related !"qy4) )��' t , In w eFntcar 1 - D,eletion _tReqyeA L Form by the Monroe Count jer gik,, the Clerk County dministf4er- of his designee will place an the item on the agenda to obtain -fef4 C"C "-ate feeeives the approval of the BOGG to seek .... c�cMgftfive soli6tations for the sale of the su LL', iterms listed Oil thefujI3LM=jp)yq�I AIM )n tLy ntc c -A? zta,.-st For"? and/or UIV_, tq Monroe Related Fot.'M? s. (c �dt a _ Coordination (if Camno, itive Solicitation for Sale of Sur lus Proppx - be deleted from Monroe County Prod p rty ventor Foflo. Dg C - )f as the kge the official, inventory jecords_ for BOCC/Motiroe Countv_ owned rp i t�y, the Monroe L(: LuUt 1 .. j!r(njgrty ln% Clerk initiates and coordinates Lii� _p0qWC 1�) -11 , t fi ve solicitati S 41- for the sale of BOCC/Monroe Count at intervals prMg,Lly t —igDL - L(,I -- be deleted frorn invent thr0jLghoqt_jhL,y 15 ede( , oMcat roIjngtj Li&MjjLI the RKqp!qy Custodians in each of the BC CC user Ligg!'Ci BOCC Infonnation Technot the Countv Attom Office and the ur Pc hasi (L --Eg offig. Page 30 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures R_qp)rtqj. The Purchasing Director c°tor er places the item(s) on 1. emand tar, (3) All assets with a fair market value lower than $5,000 may be sold at auction in accordance with the procedure set forth above, or may be donated to another governmental entity or not - for - profit organization. Assets with a fair market value equal to or greater than $5,000 for which no bid was received at public auction may also be donated to a governmental entity or not - for - profit organization. (4) Property deemed to have no further use to the county due to obsolescence, inefficiency, or being uneconomical may be donated to another governmental entity within the county or a private not- for -profit organization within the county. (5) Only assets estimated to have no value or which have been advertised for bid and for which no bid was received, or for which attempts to donate were unsuccessful, may be destroyed. If an asset is destroyed, the surrendering using agency is responsible for submitting a copy of the Asset Destruction Certification to Finance with a copy to Risk Management. (6) All assets under a lease agreement will be disposed of in accordance with the terms of the agreement. Page 31 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures (7) If it is determined that the trade -in value is more beneficial to the County, a vehicle or piece of equipment may be used as a trade -in for the purchase of replacement equipment. (8) If it is determined that it is useful and economical to retain a portion, or a component, of the asset for future use, then the portion or component can be retained and the balance of the asset sold, donated, or destroyed. In such case the portion retained and the portion sold, donated, or destroyed shall be noted on appropriate forms. 4. Subject to the procedures noted above, responsibility for disposition is as follows: a) Fleet Management is responsible for the disposition of vehicles. b) Property Custodians are responsible for the disposition of fixed assets of any value, other than vehicles, computers, computer - related, and telecommunication equipment. C) Technical Service is responsible for the disposition of computers, computer - related, and telecommunication equipment. 5. 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(21), shall be allowed to bid on surplus property over which the employee had custody or authority to initiate or authorize the decision to surplus. F.S. 112.312(21): "Relative," unless otherwise specified in this part, means an individual who is related to a public officer or employee as father, mother, son, daughter, brother, sister, uncle, aunt, first cousin, nephew, niece, husband, wife, father -in -law, mother -in -law, son -in -law, daughter -in -law, brother - in -law, sister -in -law, stepfather, stepmother, stepson, stepdaughter, stepbrother, stepsister, half brother, half sister, grandparent, great grandparent, grandchild, great grandchild, step grandparent, step great grandparent, step grandchild, step great grandchild, person who is engaged to be married to the public officer or employee or who otherwise holds himself or herself out as or is generally known as the person whom the public officer or employee intends to marry or with whom the public officer or employee intends to form a household, or any other natural person having the same legal residence as the public officer or employee. Page 32 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures [CHAPTER 13 RESERVED] CHAPTER 14 PURCHASING CARDS (P-CARDS) The Monroe County Purchasing Card Policy & Procedures establishes detailed procedures and policies which control the use of Purchase Cards. The Purchasing Card Policy & Procedure is to be followed and is attached hereto as Attachinctit C. There shall be absolutely no personal purchases made with the County issued P-Card. Page 33 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures ATTACHMENT A. MEMORANDUM To: Purchasing Department VIA: County Attorney's Office (for prior legal review /approval) From: Date Subject: Request for Competitive Solicitations (Name as appears on the cover page of the Competitive Solicitation) 1. SOCC Approval Date: Date Received for Legal Review /Approval: Legal Approval Date: Reviewing Attorney Opening Date Assigned by Purchasing: Date assigned: Date Notice Transmitted to Papers by Legal /Memo Returned to Department: 2. Require vendors submit 2 sicined originals and one copy of their bids (minimum required) or as specified below. 3. Contact person /phone # for questions regarding specifications: 4. Advertising expenses are to be charged against account: 5. Notice to run 21 30 45 60 (circle one) or days prior to bid opening. 6. To add "supplemental suppliers" please provide company name and fax number (attach list if more than one or more room needed). 7. In addition to the 3 local newspapers, please place notice in the following advertising newspapers. Must have Division Director approval for additional advertising Division Director Date Enclosures: One (1) copy of approved competitive solicitation and one (1) CD Page 34 Purchasing Revised 12113 Monroe County Purchasing Policy and Procedures ATTACHMENT B. (Sample Form) NOTICE OF REQUEST FOR COMPETITIVE SOLICITATIONS NOTICE IS HEREBY GIVEN that on January 11, 2012 at 3:00 P.M. the Monroe County Purchasing Office will receive and open sealed responses for the following: HARBOR CHANNEL 1 PROJECT DUCK KEY, MONROE ! 1' 1• Requirements for submission and the selection criteria may be requested from DemandStar by Onvia at www.demandstar.co OR rw.n onroecount vhid .co or call toll -free at 1 -800- 711 -1712. The Public Record is available at the Monroe County Purchasing Office located at The Gato Building, 1100 Simonton Street, Room 2 -213, Key West, Florida. All Responses must be sealed and must be submitted to the Monroe County Purchasing Office. Publication dates Reporter (Fr) 12/9/2011 Keynoter (Sa) 12/10/2011 Citizen (Fr) 12/9/2011 Page 35 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures ATTACHMENT C. APPROVAL TO ISSUE ADDENDUM All addenda to a request for sealed competitive solicitations must be available for viewing on Demandstar no later than five (5) days prior to the advertised opening (not counting the day of the opening) and/or in compliance with any other applicable requirements. Addenda shall clearly point out any addition or change to the specifications. It is the responsibility of the requesting Department and/or Division Director to ensure that all addenda is reviewed and approved by legal prior to submission to Purchasing. All addenda must be accompanied by this Approval to Issue Addendum form which must be executed by the reviewing County Attorney or Assistant County Attorney and the requesting Department and /or Division Director (as applicable) or their designee PRIOR to submission to Purchasing for approval and execution by the Purchasing Director or designee. Addenda received by Purchasing without this form or without proper execution will be returned to the requesting Department/Division Director. County Attorney or Assistant County Attorney Date Department Director (or designee) Date Division Director (or designee) Date Purchasing Director (designee) Date FIRM (Name as appears on the cover page of the Competitive Solicitation) Page 36 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures MONROE COUNTY &a 4 0 MI 112 : W Reis DI r PURPOSE To establish those procedures under which departments will control the use of Purchase Cards assigned to and utilized by Board of County Commissioners (BOCC) employees for purchasing non - restricted commodities and services on behalf of the BOCC. These procedures are intended to accomplish the following: 1. To ensure that the procurement with Purchasing Cards is accomplished win accordance with the policy and procedure established within this and other sections of this manual. 2. To enhance productivity, significantly reduce paperwork, improve controls, and overall cost associated with purchases. 3. To ensure appropriate internal controls are established within each department procuring with Purchasing Cards so that they are used only for authorized purposes. 4. To have timely and meaningful management reports which detail and summarize periodic activity. 5. To ensure that the BOCC bears no legal liability from inappropriate use of Purchasing Cards. 6. To provide a convenient method for purchases, consolidate payments, improve customer service, reduce transaction cost, streamline processes, and capture spending information. 7. Ensure prompt payment to vendors. 8. Provide hard data on purchase activity with vendors in order to achieve savings by negotiated discounts based upon the volume of business with the vendor. 9. Specific advantages within the Purchasing Card Program itself include the various ways that limits and restrictions can be established that allow the tailoring of individual cards to fit the needs of the user. This will extend purchasing responsibility to more individuals than in the current purchasing environment, while maintaining or even increasing accountability. The success of the BOCC Purchasing Card Program relies on the cooperation and professionalism of all personnel associated with this initiative. The most important participant is the Cardholder. The individual user is the key element in making this program successful. Finally, it is intended that the procedures established herein are viewed as minimum standards for each department, who may wish to establish additional controls beyond those suggested by the procedures. Page 37 Purchasing Revised '12(13 Monroe County Purchasing Policy and Procedures SCOPE This procedure will be applicable to those departments who have selected employees to use Purchasing Cards to purchase goods, services, travel and training, or for specific expenditures incurred under conditions approved by these procedures, i.e. emergencies. The decision of when a Purchasing card is issued, to whom, and the dollar limitations will be as requested by the Department Director and approved by the Budget & Finance Division Director and /or the Purchasing Card Program Administrator. APPLICABILITY This procedure applies to all departments of the BOCC. BACKGROUND A number of unique controls have been developed for this program that do not exist in a traditional credit card environment. These controls ensure that each card can be used only for specific purposes and within specific dollar limits. In addition, certification of all purchases is required by each Cardholder, with verification performed by their immediate supervisor before payment is made to the vendor. LIMITS AND RESTRICTIONS The following limits can be uniquely established: 1. Spending amount per day, billing cycle, and month. The Cardholder can only incur transactions totaling a predetermined dollar amount within any defined period. 2. Number of transactions per day, billing cycle and month. The Cardholder can only incur a predetermined number of transactions within a predefined period. 3. Single Purchase Amount. A limited dollar amount for any single transaction. Cardholders shall not split transactions to stay within their limits. 4. Merchant Category Codes (MCC). The MCC are assigned by VISA to a merchant which identifies the primary type of goods or service they provide. The MCC are designed to offer every combination possible and restrictions are imposed at the point of sale if the blocked merchant requests authorization for the transaction. BENEFITS: There are many benefits to using the Purchasing Card including: 1. Board of County Commissioners Benefits a. Simplifies the purchasing process for the large number of low dollar purchases, freeing up time for large dollar purchases. b. Significantly reduces the overall transaction processing cost per purchase. C. Increased accountability. d. Provides management information electronically which is currently unavailable. Page 38 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures 2. Cardholder Benefits a. Convenience of purchasing without an intensive Requisition/Purchase Order processing system. b. Expedites the delivery of goods or services to the job site. C. Expands the list of merchants from whom purchases can be made. 3. Merchant Benefits a. Expedites payment to the merchant within 48 hours b. Expedites the delivery of goods or services to the job site. C. Expands the list of merchants from whom purchases can be made. TRAINING All Cardholders will complete training before they are issued a Purchasing Card. 1. Participating in the Purchasing Card Program is a privilege being offered by the BOCC. If the County Administrator through the Purchasing Card Program Administrator and/or the Clerk of the Court becomes aware of any inappropriate or late approval of transactions, Cardholder privileges may be cancelled. 2. It is expected that the Purchasing Card Procedures and training program will assist you in making this program a success. 1. CARDHOLDER SPENDING LIMITS 1.1. The Delegation of Authority that has been provided to each Cardholder will set the maximum dollar amount for each single transaction up to a maximum amount of $999.99 at the Director Level for the small non- stocked products and services or for travel and training. Each time a Cardholder makes a purchase with his/her Purchasing Card, this limit will be checked, and the authorization request will be declined should the amount exceed the limitation. 1.2. Purchasing Cards issued to the Mayor and County Commissioners, County Administrator, Deputy County Administrator, Division Directors, Purchasing Card Program Administrator, Purchasing Agents /Buyers may be authorized for a higher maximum amount per purchase. 1.3. Purchasing Card Program Administrator or Backup Purchasing Card Administrator may establish different limits for each employee with the recommendation of the employee's Division Director and approval by the County Administrator or Deputy County Administrator. Page 39 Purchasing Revised 12113 Monroe County Purchasing Policy and Procedures 2. USE OF PURCHASING CARD 2.1. THE PURCHASING CARD IS TO BE USED FOR BOCC PURCHASES ONLY. CASE ADVANCES THROUGH BANK TELLERS OR AUTOMATED TELLER MACHINES ARE PROHIBITED. 2.2. CARDHOLDER RESPONSIBILITY — The Purchasing Card that the Cardholder receives has his/her name embossed on it and the card shall not be lent to any other person. 2.2.1. Every Cardholder is responsible for the security of their Purchasing Card. All precautions shall be used to maintain confidentiality of the Cardholder's account number and expiration date of the Purchasing Card. 2.3. CONDITIONS FOR USE — The total of a single purchase to be paid for using the card may be comprised of multiple items but cannot exceed the authorized single invoice limitation. Purchases will be denied if any preset limits are exceeded. Payments for purchases are not to be split in order to stay within the single purchase limit. 2.4. When using the Purchasing Card, Cardholders should: 2.4.1. Ensure that the goods or services to be purchased are allowable. 2.4.2. Determine if the intended purchase is within Cardholder's Purchasing Card limits. 2.4.3. Advise the supplier /merchant that the purchase will be made using the VISA Purchasing Card in advance. 2.4.4. Inform the merchant that the purchase is tax - exempt 2.4.5. If using the Purchasing Card for travel, membership dues, conference, training or other transactions that require prior approval, make sure all appropriate forms are completed and approved prior to making the purchase. 2.5. When placing telephone or mail orders, Cardholders should notify the merchant and request that a credit be processed for the amount of the tax charged 2.5.1. If you place a telephone or mail order and sales tax was charged, contact the merchant and request that a credit be processed for the amount of the tax charged 2.5.2. Purchases made in Florida and for use in Florida are exempt from Florida sales and use taxes. The BOCC tax exempt identification number is printed on the Purchasing Card. Page 40 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures 2.5.2.1. As with all BCOC purchases, the Cardholder must be diligent when dealing with the merchant regarding taxes. 2.5.3. Make sure the merchant understands that charges are not to be billed until the item(s) are actually received by the Cardholder. 2.5.4. If an item(s) is not currently in stock, and is back ordered, remind the merchant that the Purchasing Card cannot be billed until the back ordered item(s) are actually received by the Cardholder. 2.5.5. To ensure prompt delivery of items ordered by telephone or by mail, provide the merchant with the appropriate delivery of information — do not use Post Office Box or "Ship To" address. Request that you name and "Ship To" address with room number (where applicable) are clearly marked on the outside of the package. 2.5.6. Instruct the merchant to send the sales receipt directly to the Cardholder and not to send an invoice to the Clerk's Office, since the merchant will be paid by the merchant's financial institution 2.5.7. Tell the supplier /merchant that any shipping or delivery fees must be included in the unit price — FOB: Destination. (A delivery point in Monroe County.) 2.6. Returning Merchandise Purchased with the Card — Cardholder is responsible for managing any returns /exchanges and ensuring that proper credit is received for returned merchandise. 2.6.1. Contact the vendor and obtain instructions for return. 2.6.2. Review your next card statement to ensure that your account is properly credited for the return. 2.6.3. A patter of returns and exchanges that indicate improper or inaccurate initial product selection shall be reviewed and may result in loss of privileges for the card holder. Page 41 Purchasing Revised 12113 Monroe County Purchasing Policy and Procedures 3. DOCUMENTATION, RECONCILIATION AND PAYMENT PROCEDURES 3.1. Documentation — Any time a purchase is made that will be paid using the Purchasing Card, the Cardholder is to obtain a customer copy of the charge slip, which will become the accounting document. Make sure all carbons, if used, and any excess copies are destroyed. 3.2. Missing Documentation — Missing documentation may result in the cancellation of the employee's purchasing card. NO exceptions will be made. Cardholders must keep all receipts, boarding passes and any other documentation such as packing slips registration, etc. as normally required by the Clerk of the Court for payment. 3.3. Payment and Invoice Procedures — Purchases made by employees will be paid by the Clerk's Office once the Cardholder's certification and the approving official's verification has been completed and the account number has been assigned for each transaction. 3.3.1. Receipts: The Purchasing Card receipt or vendor's sales receipt for purchases must be supplied When purchases are conducted by telephone, you must fill out the Telephone Order Forms and request the vendor to forward the receipt to you. These receipts, and any Telephone Order Forms, are to be stapled to the Daily Purchase Card Purchase Report. Failure to keep adequate receipts will lead to the loss of Purchasing Card privileges. 3.3.2. The Purchasing Card issuer, Bank of America, will provide one copy of the billing statement to the Program Card Administrator and one copy to the clerk's Office, at the end of the billing cycle. The Cardholder may request a copy of the billing statement at any time. This statement will have a listing of all items processed with the billing cycle. In addition to the monthly billing statement, the Purchase Card Administrator or designee will periodically review the Cardholder's statement using Bank of America's on -line services. 3.3.3. Immediately following a purchase, the Cardholder must submit the charge slip to his/her department's director, via their immediate supervisor. The charge slip must be stapled to a completed daily Purchase Card Purchase Report. Non compliance may mean denial of future use, or other disciplinary action. 3.3.4. The department's director reviews the Daily Purchase Card Purchase Report received from the Cardholder and where Page 42 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures applicable, a "Statement of Dispute ", is attached. Once review is completed, the department's director will forward to the Purchasing Card Program Administrator within two (2) days after receipt from Cardholder. The department's director will fax all "Statement of Disputes" to Bank of America. 3.3.5. Travel: The Purchasing Card Issuer will issue the "Statement" on a scheduled basis each month. It will be the responsibility of the Cardholder to provide his/her designated representative with the receipt for that month should travel or extended leave be scheduled at the time the statement is due and he /she will not be able to complete the statement. The designated representative will complete and make a copy of the statement for the absent employee, and shall forward the copy of the statement to the Purchasing Card Administrator with the rest of the Cardholder's statements. The original Cardholder statement will be signed by the employee at the time he /she returns and submitted. 3.3.6. The Purchasing Card Administrator will be responsible for reviewing completed statements from all Cardholders, verifying approval of purchases, resolving any questions on the purchases, and signing the cover letter that accompanies the statements and forwarding completed package with all attachments to the Clerk's Office within three (3) working days after receipt from the department directors. All statements should be furnished to Clerk's Office at the same time. Should the Purchasing Card Program Administrator not receipt all of the statements, it will be his/her responsibility to contact the appropriate department director and have the statements furnished at once. If, however, one or more statements are for some reason not received, the remaining statements shall not be held while that one or more are pending. 3.3.6.1. All attachments to the Statement must be stapled to the statement and be sent to the Clerk's Office not later than the third working day after being received by the Card Administrator. 3.3.7. If a Cardholder had no purchase activity on his/her credit card for a particular billing cycle, no Statement will be generated for the Cardholder (unless adjustments for previously billed transactions are processed during that cycle). 4. TRANSACTION APPROVAL Page 43 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures 4.1. Approval of the transactions that a Cardholder had made using their Purchasing Cards, will not be totally defined in this procedure. Department Directors, because of his/her knowledge of the job responsibilities of Cardholder, are required to look at each Cardholder's purchases, and at the merchant who made the sale in order to determine if these items were for Official Use and if they were items allowed to be purchased in accordance with the instructions provided. 4.1.1. If for any reason the Department Director questions the purchase(s), ti is his/her responsibility to resolve the issue with the Cardholder. If they cannot be satisfied that the purchase was necessary and for Official Use then the Cardholder must provide a Credit Voucher proving item(s) had been returned for credit. 4.2. The County Administrator will be responsible for resolving abuses by each Cardholder. Appropriate disciplinary action will be taken against any Cardholder who misuses their privileges of up to and including dismissal. 4.2.1. Should it be evident that an unauthorized purchase was knowingly made, the County Administrator will determine what action will be taken based on the facts presented by the Purchasing Card Program Administrator. 5. DISPUTESIUNAUTHORIZED CHARGES 5.1. If a suspicious charge appears on a monthly statement, the Cardholder should first attempt to verify the charge with records of purchase. If the Cardholder does not agree with the charge posted on the statement, the Cardholder must notify the bank in writing, using the "Cardholder Dispute Form ". A copy of the "Cardholder Dispute Form" will be forwarded with the statement through the end -of -month processing cycle for the statement. The bank will research the disputed charge and make the necessary adjustments. 5.2 Credit to Account — When the bank receives proper notification of a disputed charge, the charge amount will be removed from the total owed by BOCC and shown on the monthly statement (if the charge was improper) or charged to the Cardholder's department (if research shows the charge was valid). Page 44 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures 5.3. If items purchased with the Purchasing Card are found defective or the repair or services faulty, the Cardholder has the responsibility to return item(s) to the merchant for replacement or to receive a credit on the purchase. (Returns that require shipping will be coordinated through the Purchasing Department.) CASH REFUNDS WILL NOT BE PERMITTED. If the merchant refuses to replace or correct the faulty item, then the purchase of this item will be considered to be in DISPUTE. 5.4. A disputed item must be noted on the Cardholder's Statement. In addition, a "Cardholder's Statement of Disputed Item" form must be completed by the Cardholder with appropriate documentation attached, if necessary. This form will be forwarded with the statement through the end -of -month processing cycle for the statement. 5.5. Disputed items are items that the customer (County) does not believe he /she has received the item purchased, or the item has a defect. The dispute must be resolved between the merchant and the cardholder before any payment can be made. 5.6. It is essential that the time frames and documentation requirements established by the Purchasing Card Issuer be followed to protect the Cardholder's rights in dispute. Dispute policies and procedures issued by the Purchasing Card Issuer will be provided at the time Purchasing Cards are issued to Cardholder. 5.7. Fraudulent or improper items may be covered by the Liability Waiver. However, disputed items are not considered fraudulent. 6. REQUEST FOR INTIIAL. ADDITIONAL OR CHANGES TO PURCHASING CARD 6.1. Requests for a new Cardholder or changes to a current Cardholder will be done by submitting "Request for Purchasing Card" form. The Form will be processed by the affected Department Director, who will forward the request to the Purchasing Card Program Administrator. 6.2. All requests for Purchasing Cards must be approved by the Purchasing Card Program Administrator and /or the Budget & Finance Division Director. 6.3. The Purchasing Card Program Administrator's name must be provided to Clerk's Accounts Payable /Receivable Division and kept current. Page 45 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures 6.4. When Purchasing Card Program Administrator receives the Purchasing Card from the credit card issuer, they shall print on the back of the card the following statement: "SEE DRIVER'S LICENSE" 7. ANNUAL INVENTORY OF PURCHASING CARDS On an annual basis, the Purchasing Card Program Administrator will provide a list of Purchasing Cards issued to employees for each department. The Purchasing Card Program Administrator will conduct a physical inventory of Purchasing Cards and prepare a report on the results of the physical inventory. 8. LOST OR STOLEN PURCHASING CARDS 8.1. Should an employee lose or have their Purchasing Card stolen, it is the responsibility of the Cardholder to immediately notify the credit card issuer, their Department Director, the Purchasing Card Program Administrator and the Clerk's Accounts Payable /Receivable Division of the loss. The telephone number of the credit card issuer will be provided when the Purchasing Card is issued to the Cardholder. 8.2. To report a lost/stolen card: The Cardholder must call Bank of America, Customer Service, at 800- 538 -8788 immediately upon discovering that the card has been lost or stolen. Help is available 24 hours a day. Also call the BOCC Purchasing Card Administrator as early as possible on the first available business day during normal business hours at (305) 292 -4470. 8.3. Failure to promptly notify the issuing bank of the theft, loss, or misplacement of the Purchasing Card could make the BOCC and /or the Cardholder responsible for any fraudulent use of the card and result in loss of privileges and/or disciplinary action for the Cardholder. 9. EMPLOYEE TERMINATION/TRANSFER 9.1 A Cardholder who terminates their employment must relinquish their Purchasing Card at the time of th separation from BOCC to their Department Director who will forward the card to the Purchasing Card Programs Administrator. The Purchasing Card Program Administrator will notify the bank and the Cardholder's card will be immediately deactivated. A Cardholder who fraudulently uses the Purchasing Card after separation from BOCC will be subject to legal action. Page 46 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures 9.2. Transfer of an employee within their Department — If a Cardholder is transferred with their department, it will be the responsibility of the Department Director to determine if the Cardholder should retain his/her current Purchasing Card. If it is determined that the Purchasing Card should be kept by the Cardholder, the master file will be changed upon notification to the Purchasing Card Program Administrator, using the New Card/Change From, thereby eliminating the need for issuing a new Purchase Card. 9.3. Transfer of an employee to another BOCC Department. If a Cardholder is transferred to another BOCC department, it will be the responsibility of the new Department Director to determine if the Cardholder should retain his/her current Purchasing Card. If it is determined that the Purchasing Card should be kept by the Cardholder, the master file will be changed upon notification to the Purchasing Card Program Administrator, using the New Card /Change Form, thereby eliminating the need for the issuing of a new Purchasing Card. 10. AUDITS /REVIEWS 10.1. The Card Program Administrator may randomly review Card activity and usage and receipt retention for compliance. 10.2. The Clerk's office may conduct random audits on card activity and usage and receipt retention, reconciliations, compliance, etc. 11. FEEDBACK Your feedback regarding this program is important. The Purchasing Card Program Administrator needs to know if you have any issues and we welcome suggestions for improvement. 12. ACCOUNTING /PURCHASING PROCEDURES AND ACCOUNTING /TRAVEL AND TRAINING PROCEDURES These procedures must be in compliance with Monroe County's Purchasing Policy and Procedures and must be incorporated with the State of Florida Purchasing Card Guidelines, where applicable. Page 47 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures 13. MERCHANT SIGN -UP It is important to the success of the Purchasing Card Program that merchants interested in doing business with the BOCC via the Purchasing Card receive assistance in doing so. If merchants currently accept VISA credit cards, they are already equipped to accept BOCC Purchasing Cards. A merchant who is not currently accepting VISA credit cards should contact the Bank of America merchant service provider, their own financial institution, or other merchant service provider. Page 48 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures QUICK REFERENCE 1. What is a Purchasing; Card ■ A credit card that is used as an alternative payment method for small dollar and travel and training expenditures for non - stocked products and services, for travel and training, or as otherwise approved for the individual Cardholder. 2. What re the advantages of using the Purchasing Card ■ Improved user satisfaction due to prompt order confirmation and accelerated product receipt. ■ Improved vendor relations by eliminating the potential for late payments; the vendor is paid within 48 hours. 3. Who may have a Purchasing Card, and how do you obtain one ■ Any Commissioner and/or employee responsible for making purchases that is recommended by their Department Director and is approved by the Purchasing Card Program Administrator. 4. What is the responsibility of the Cardholder ■ Upon acceptance of the Purchasing Card, employee must sign a "Cardholder Agreement ". Signing this agreement, acknowledges employee receipt of the card and acceptance of responsibility for abiding by the terms and conditions of the agreement. ■ Ensure that usage of the card conforms to procedures and that the card is used only for official business purposes. ■ Cardholder will obtain and verify charge receipts after each purchase and attach to the Daily Purchase Card Purchase Report. ■ Cardholder must obtain their Department Director's approval on the Daily Purchase Card Purchase Report. ■ Initiate and handle disputed charges. 5. What is the Department Director's responsibility ■ Identify and recommend employees who should be issued a Purchasing Card. ■ Identify and recommend limitations. ■ Ensure that the Purchasing Cards used in their department conform to BOCC policy and program guidelines as well as the Purchasing manual. ■ Review and sign detailed Daily Purchase Card Purchase Report. ■ Forward Reports with receipts to the Purchasing Card Program Administrator. Page 49 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures 6. What is the responsibility of the Purchasiniz Card Program Administrator? ■ Manage, authorize, terminate, and maintain a file of individuals authorized to conduct Purchasing Card transactions. ■ Respond to questions concerning Purchase Card expenditures. ■ Periodically review Cardholder's activity using Bank of America's on- line services. 7. How are purchases made? ■ Cardholder calls or visits vendor and places order. ■ Cardholder provides the vendor with the Purchasing Card number and delivery instructions. 8. Does the Purchasing Card have a spending limit? ■ Individual transactions limited up to a pre - approved amount for small non- stocked products and services, for travel and training, or as otherwise approved by the Purchasing Card Program Administrator under the direction of the Budget & Finance Division Director and the County Administrator. 9. What happens if the statement is incorrect or an item needs to be returned? ■ Cardholder notifies credit card issuer if incorrect charge is identified on the statement. ■ Cardholder works with the vendor to arrange for returns and credit. ■ Cardholder verifies that credit appears on next statement. 10. What types of purchases are allowable? ■ The Purchasing Card is to be used for purchases of small dollar expenditures . These items can be purchased and picked up directly at the vendor, or can be ordered by telephone or fax and delivered to the Cardholder. 11. What purchases are disallowed? ■ The Purchasing Card cannot exceed limitations placed on the individual card for non- stocked products and services, for travel and training or as otherwise approved by the Purchasing Card Program Administrator. ■ Splitting of requirements — not allowed. ■ Entertainment ■ Meals — The County has an ordinance in effect with respect to meals, please see 004 -2004. Restaurant commodity codes will be excluded and meals are prohibited. ■ Personal use. ■ Cash advance. ■ Gasoline. ■ Vehicle Repairs (excluding Fleet Management). ■ Alcoholic beverages. ■ Tobacco products. Page 50 Purchasing Revised 12/13 Monroe County Purchasing Policy and Procedures Non -work or personal use items and services. Services such as consultants or construction. Telephone Credit Card. 12. It should be noted that the Purchasing Card will be used by designated personnel to pay for issued Purchase Orders and other purchases not available to the general users. Page 51 Pmrohasing Revised 12/13