Emergency Purchasing: When You Don’t Have Time To Bid Norma Houston 2013 NCEMA Fall Conference
Emergency Purchasing: When You Don’t Have Time To Bid
Feb 23, 2016
Emergency Purchasing: When You Don’t Have Time To Bid. Norma Houston 2013 NCEMA Fall Conference . Tornado Damage. Recovery Needs. Debris Removal. Roof Repair / Equipment Replacement. Vehicle Replacement. Water Main Repair / Potable Water. Basic Public Contract Requirements. - PowerPoint PPT Presentation
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Emergency Purchasing:When You Don’t Have Time To Bid
Norma Houston2013 NCEMA Fall Conference
Tornado Damage
Recovery NeedsRoof Repair / Equipment Replacement
Vehicle Replacement
Debris Removal
Water Main Repair / Potable Water
BASIC PUBLIC CONTRACT REQUIREMENTS
What is a Valid Public Contract?
OfferAcceptance
Consideration
Budget / Pre-audit
Authority
Writing
Proper Procurement
Methods
Other Legal Requirements
Valid Contract
PROCUREMENT METHODS
Which Procurement Method?
Type of Contract Cost Procurement
Method
Type of Contract
Type of Contract
Type of Contract
1. Purchase Apparatus, supplies, materials, & equipment
Type of Contract
Type of Contract
2. Construction or Repair New buildings, renovations, “non-vertical” construction (utility lines, roads, etc.)
Type of Contract
Type of Contract
3. “Mini-Brooks Act” design services architectural, engineering, survey, CMR, DB, BDD, P3
Type of Contract
Type of Contract
4. Everything Else Includes service contracts and land purchases
Cost
Type of Contract Cost
$0
• No statutory requirements
$30,000
• Informal Purchase & Construction
$90,000
• Formal Purchase
$500,000
• Formal Construction
Bidding Thresholds
Procurement Method
Type of Contract Cost
ProcurementMethod
1. Informal Bidding• Applies to purchases and
construction/repair within a certain cost range
• Has minimal requirements to ensure competition with focus on getting the lowest cost
Procurement Method
Type of Contract Cost
ProcurementMethod
2. Formal Bidding• Applies to purchases and
construction/repair above a certain cost• Has very specific requirements to ensure
competition with focus on getting the lowest cost
Procurement Method
Type of Contract Cost
ProcurementMethod
3. Qualifications Based Selection (QBS)• Required for selection of “Mini-Brooks
Act” services - architect, engineer, survey, CMR, DB, DBB, P3
• Contract award based on qualifications of responder rather than price
• Local government can exempt itself in writing if contract is under $50,000.
Procurement Method
Type of Contract Cost
ProcurementMethod
4. Requests for Proposals (RFP) • Optional for IT purchases• Can be used (but is not mandated) for
other service contracts
Procurement Methods – State Law
FormalBidding
FormalBidding
Informal Bidding
Informal Bidding
Qua
lific
atio
ns-B
ased
Sel
ectio
n
No Method
No Method
No Method
Required
$500,000
$90,000
$30,000
$0Mini-Brooks Act Everything Else*
*Use of RFP optional, but not required
Purchase Construction & Repair
Type of Contract
Cost
of C
ontr
act (
Bid
Thre
shol
ds)
Procurement Methods – GMCR (federal)
SealedBidding
SealedBidding
Small Purchase C
ompe
titiv
e P
ropo
sals
(pric
e no
t con
side
red)
Com
petit
ive
Pro
posa
ls
$150,000
$0Mini-Brooks Act Everything Else*
* May use competitive proposals when sealed bidding not appropriate; may use non-competitive proposals under special circumstances.
Purchase* Construction*
Type of Contract
Cost
of C
ontr
act
Small Purchase
Procurement Methods – State Law
FormalBidding
FormalBidding
Informal Bidding
Informal Bidding
Qua
lific
atio
ns-B
ased
Sel
ectio
n
No Method
No Method
No Method
Required
$500,000
$90,000
$30,000
$0Mini-Brooks Act Everything Else*
*Use of RFP optional, but not required
Purchase Construction & Repair
Type of Contract
Cost
of C
ontr
act (
Bid
Thre
shol
ds)
PROCUREMENT REQUIREMENTS
Procurement RequirementsInformal Formal QBS RFP
Solicitation / Advertisement Not required
Newspaper/electronic at least 7
days before bid opening
Must “announce”
requirements
Not required (IT—must advertise
like formal bid)
Form / Minimum # Any form; keep
record; no minimum #
Sealed bids; 3-bid minimum for construction
contracts
No specific form required; no minimum #
No form required (IT – sealed proposals)
Public bid opening Not required Required Not required Not required
Standard of Award Lowest responsive, responsible bidder
Lowest responsive, responsible bidder
Best qualified, regardless of
costBest meets criteria set
in the RFP
Board Approval Not requiredRequired (may
delegate for purchases only)
Not required Not required
Public RecordRecord of bids not
public until contract award
Bids public when opened
Proposals public when opened
Public when opened (IT – not public until
contract award)
Construction Contract Requirements
Informal / Formal Bidding Requirements
Formal Construction & Repair ($500,000+)
Bid Bond
BUILDING Construction & Repair ($300,000+)
Separate Specs for Trades
EXCEPTIONS
Competitive Bidding Exceptions1. Special Circumstances
a. Sole Source
b. Emergencies
c. Fuel
d. Force Account Work
2. Existing Contractsa. State and Federal Contracts
b. Piggybacking
c. Change Orders
3. Direct Purchasesa. Purchases From Other Units of Government
b. Group Purchasing Programs
c. Used Items
Competitive Bidding Exceptions
Existing ContractsSpecial Circumstances Direct Purchases
Emergencies GS 143-129(e)(2)
Applies to purchases and construction/repair Must be special emergency involving public health and
safety or property Emergency must be imminent or existing Cannot be generally anticipated to occur in the future Cannot use if competitive bidding requirements can be
used without exacerbating harm Competitive bidding requirements still required for
FEMA reimbursement Board approval not required
Competitive Bidding Exceptions
Force Account Work GS 143-135
Applies to construction/repair (not purchases) Construction work performed by unit’s own
officers or employees Total cost of project under $125,000 or Total cost of labor under $50,000 Must file owner-builder affidavit Board approval is required
Existing ContractsSpecial Circumstances Direct Purchases
Competitive Bidding Exceptions
Special Circumstances Existing Contracts Direct Purchases
State and Federal Contracts GS 143-129(e)(7),(e)(9),(e)(9a)
Applies to formal and informal purchases (not construction)
Purchasing same item from same vendor Vendor must agree to sell at the same or
more favorable prices, terms, and conditions Includes state P&C contracts, IT purchases
through ITS, and federal agency contracts Board approval not required
Competitive Bidding Exceptions
Piggybacking GS 143-129(g)
Applies to formal purchases only Purchasing same item from same vendor Vendor must agree to sell at the same or
more favorable prices, terms, and conditions Contract competitive bid within previous 12
months Board approval is required with 10 days
public notice
Special Circumstances Existing Contracts Direct Purchases
Do You Have To Bid?Roof Repair / Equipment Replacement
Vehicle Replacement
Debris Removal
Water Main Repair / Potable Water
Do You Have To Bid?
Equipment Replacement:Probably so, unless necessary for immediate restoration of public safety capabilities
Hiring An Architect:Mini-Brooks Act QBS process still applies (can only exempt if fees are under $50,000)
NO: Temporary repairs to stabilize structure and prevent further damage
YES: Permanent repairs and reconstruction
REMEMBER GMCR Bidding Requirements!
Roof Repair / Equipment Replacement
Do You Have To Bid?
YES: Complying with bidding requirements will not unduly delay purchase, especially in informal bidding range ($30,000-$90,000)
REMEMBER GMCR Bidding Requirements!
Vehicle Replacement
Other Options:1. Purchase from another unit
of government2. Donation from other unit of
government3. Buy off state/federal contract
Do You Have To Bid?
NO: Potable water and temporary repairs to stabilize system
YES: Permanent repairs and reconstruction
REMEMBER GMCR Bidding Requirements!
Water Main Repair / Potable Water
Hiring An Engineer:
Mini-Brooks Act QBS process still applies (can only exempt if fees are under $50,000)
Do You Have To Bid?
NO: Debris removal is a service contract; service contracts not subject to state competitive bidding requirements
YES: For FEMA reimbursement
REMEMBER GMCR Bidding Requirements!
Debris Removal
What About Debris Monitoring? Same as for debris removal
Tips for Emergency Purchasing Preposition contracts using a competitive bidding process Secure temporary supplies and equipment through mutual
aid instead of purchasing Remember minimal requirements for informal bidding
process:– Purchase = $30,000-$90,000 – Construction/Repair = $30,000-$500,000)– No formal advertisement– No sealed bid/public bid opening– No 3-bid minimum– Can get price quotes in any form (phone, fax, email, etc.)– Keep record of bids
RESOURCES
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