Purchasing and Contracting Policy Manual for the City of Harrisonburg, VA Table of Contents ARTICLE A – GENERAL PROVISIONS 4-3-1 PREAMBLE 1 4-3-2 PURPOSE 1 4-3-3 APPLICATION 1 4-3-4 EFFECTIVE DATE OF POLICY 1 4-3-5 SEVERABILITY 1 4-3-6 DEFINITIONS 2 ARTICLE B – OFFICE OF THE PURCHASING AGENT 4-3-7 ESTABLISHMENT AND APPOINTMENT 7 4-3-8 AUTHORITY 7 4-3-9 DUTIES 7 4-3-10 OPERATIONAL PROCEDURES 7 4-3-11 DELEGATION 7 4-3-12 UNAUTHORIZED PURCHASES 8 ARTICLE C- COOPERATIVE PROCUREMENT 4-3-13 CONDITIONS FOR USE 8 ARTICLE D- CONTRACT FORMATION AND METHODS OF SOURCE SELECTION 4-3-14 COMPETITIVE SEALED BIDDING 8 4-3-15 PRE-QUALIFICATION OF BIDDERS 10 4-3-16 NOTICE OF INVITATION TO BID 10 4-3-17 USE OF BRAND NAMES 11 4-3-18 COMMENTS ON SPECIFICATIONS 11 4-3-19 BID BONDS ON CONSTRUCTION CONTRACTS 11 4-3-20 BONDS FOR OTHER THAN CONSTRUCTION CONTRACTS 12 4-3-21 REJECTION OF BIDS 12 4-3-22 BID OPENINGS 12 4-3-23 WITHDRAWAL OF BID DUE TO ERROR 12 4-3-24 COMPETITIVE SEALED BIDDING 14 4-3-25 BID AWARD 14 4-3-26 TIE BIDS 14
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Purchasing and Contracting Policy Manual for the City of Harrisonburg, VA
Table of Contents
ARTICLE A – GENERAL PROVISIONS
4-3-1 PREAMBLE 1
4-3-2 PURPOSE 1
4-3-3 APPLICATION 1
4-3-4 EFFECTIVE DATE OF POLICY 1
4-3-5 SEVERABILITY 1
4-3-6 DEFINITIONS 2
ARTICLE B – OFFICE OF THE PURCHASING AGENT
4-3-7 ESTABLISHMENT AND APPOINTMENT 7
4-3-8 AUTHORITY 7
4-3-9 DUTIES 7
4-3-10 OPERATIONAL PROCEDURES 7
4-3-11 DELEGATION 7
4-3-12 UNAUTHORIZED PURCHASES 8
ARTICLE C- COOPERATIVE PROCUREMENT
4-3-13 CONDITIONS FOR USE 8
ARTICLE D- CONTRACT FORMATION AND METHODS OF SOURCE SELECTION
4-3-14 COMPETITIVE SEALED BIDDING 8
4-3-15 PRE-QUALIFICATION OF BIDDERS 10
4-3-16 NOTICE OF INVITATION TO BID 10
4-3-17 USE OF BRAND NAMES 11
4-3-18 COMMENTS ON SPECIFICATIONS 11
4-3-19 BID BONDS ON CONSTRUCTION CONTRACTS 11
4-3-20 BONDS FOR OTHER THAN CONSTRUCTION CONTRACTS 12
4-3-21 REJECTION OF BIDS 12
4-3-22 BID OPENINGS 12
4-3-23 WITHDRAWAL OF BID DUE TO ERROR 12
4-3-24 COMPETITIVE SEALED BIDDING 14
4-3-25 BID AWARD 14
4-3-26 TIE BIDS 14
4-3-27 MULTI-STEP SEALED BIDDING 14
4-3-28 CONTRACT PRICING ARRANGEMENT 15
4-3-29 MULTI-TERM CONTRACTS 15
4-3-30 CONTRACT MODIFICATION 15
4-3-31 RETAINAGE CONSTRUCTION CONTRACTS 15
ARTICLE E – BONDING REQUIREMENTS
4-3-32 PERFORMANCE AND PAYMENT BONDS 16
4-3-33 ACTION ON PERFORMANCE BOND 17
4-3-34 ACTION ON PAYMENT BONDS 17
4-3-35 ALTERNATIVE FORMS OF SECURITY 18
ARTICLE F – COMPETITIVE NEGOTIATION
4-3-36 DEFINITION 18
4-3-37 CONDITIONS FOR USE 18
4-3-38 REQUEST FOR PROPOSALS 18
4-3-39 PUBLIC NOTICE 18
4-3-40 EVALUATION FACTORS AND AWARD 19
4-3-41 CONTRACTING FOR PROFESSIONAL SERVICES BY COMPETITIVE
NEGOTIATION
19
ARTICLE G – EXCEPTIONS TO REQUIREMENTS FOR COMPETITIVE
PROCUREMENT
4-3-42 SOLE SOURCE PROCUREMENT 20
4-3-43 EMERGENCY PURCHASES 20
4-3-44 SMALL PURCHASES 20
4-3-45 EXCEPTIONS TO REQUIREMENTS FOR COMPETITIVE PROCUREMENT 21
4-3-46 DISPOSAL OF SURPLUS PROPERTY 22
ARTICLE H – DEBARMENT
4-3-47 AUTHORITY TO DEBAR OR SUSPEND 22
4-3-48 DECISION TO DEBAR OR SUSPEND 23
4-3-49 NOTICE OF DECISION 23
4-3-50 FINALITY OF DECISION 23
ARTICLE I – APPEALS AND REMEDIES
4-3-51 INELIGIBILITY OF BIDDER, OFFEROR OR CONTRACTOR 23
4-3-52 APPEAL OF DENIAL OF WITHDRAWAL OF BID 24
4-3-53 DETERMINATION OF NON-RESPONSIBILITY 24
4-3-54 PROTEST OF AWARD OR DECISION TO AWARD 24
4-3-55 EFFECT OF APPEAL UPON CONTRACT 25
4-3-56 STAY OF AWARD DURING PROTEST 25
4-3-57 CONTRACTUAL DISPUTES 25
4-3-58 LEGAL ACTIONS 26
ARTICLE J – DISCRIMINATION
4-3-59 DISCRIMINATION PROHIBITED 27
ARTICLE K – ETHICS IN PUBLIC CONTRACTING
4-3-60 PURPOSE 27
4-3-61 PROSCRIBED PARTICIPATION BY PUBLIC EMPLOYEES IN
PROCUREMENT TRANSACTIONS
27
4-3-62 SOLICITATION OR ACCEPTANCE OF GIFTS 28
4-3-63 DISCLOSURE OF SUBSEQUENT EMPLOYMENT 28
4-3-64 GIFTS BY BIDDERS, OFFICERS, CONTRACTORS OR SUBCONTRACTORS 28
4-3-65 KICKBACKS 28
4-3-66 PURCHASE OF BUILDING MATERIALS, ETC FROM ARCHITECT OR
ENGINEER PROHIBITED
29
4-3-67 PENALTY FOR VIOLATION 29
ARTICLE L – MISCELLANEOUS
4-3-68 BIDDING REQUIREMENTS 29
4-3-69 PETTY CASH PURCHASES 30
4-3-70 DEPARTMENTAL PICK-UP ORDERS (DPO) 30
4-3-71 PURCHASE ORDERS (PO) 30
Memo
#1
CITY CREDIT CARD REGULATIONS and PROCEDURES 31
Memo
#2
CAPITALIZATIONAL THRESHOLDS 32
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CITY OF HARRISONBURG
PURCHASING AND CONTRACTING POLICY
ARTICLE A
GENERAL PROVISIONS
4-3-1 Preamble
The City of Harrisonburg's purchasing and contracting policy shall be as follows:
4-3-2 Purpose
The purpose of this policy is to increase public confidence in purchasing by this City, to
encourage competition in public purchasing among vendors or contractors, to administer fairly and
equitably purchasing policies among bidders and to obtain high quality goods and services at the
lowest possible price.
4-3-3 Application
(a) This policy applies to contracts for the procurement of goods, services, insurance
and construction entered into by this City involving every expenditure for public
purchasing irrespective of its source.
(b) When the procurement involves the expenditure of Federal assistance or contract funds,
the procurement shall be conducted in accordance with any applicable mandatory federal law
and regulation which are not reflected in this policy. Nothing in this policy shall prevent any
public agency from complying with the terms and conditions of any grant, gift, or bequest
which are otherwise consistent with law.
4-3-4 Effective Date of Policy
This policy shall become effective July 1, 1994. The provisions of this policy shall not apply
to those contracts entered into prior to July 1, 1994, which shall continue to be governed by the
procurement policies and regulations of the City in effect at the time those contracts were executed.
4-3-5 Severability
If any provision of this policy or any application thereof to any person or circumstances is
held invalid, such invalidity shall not affect other provisions or applications of this policy which can
be given effect without the invalid provision or application, and to this end the provisions of this
policy are declared to be severable.
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4-3-6 DEFINITIONS:
(1) Blind trusts. An independently managed trust in which the employee-beneficiary has
no management rights and in which the employee-beneficiary is not given notice of
alterations in, or other dispositions of, the property subject to the trust.
(2) Brand name specification. A specification limited to one or more items by
manufacturers' names or catalogue numbers.
(3) Brand name or equal specification. A specification limited to one or more items by
manufacturers' names or catalogue numbers to describe the standard of quality,
performance, and other salient characteristics needed to meet City requirements and
which provides for the submission of equivalent products.
(4) Business. Any corporation, partnership, individual, sole proprietorship, joint stock
company, joint venture or any other private legal entity.
(5) Change order (unilateral). A written order signed and unilaterally issued by the
purchasing agent directing the contractor to make changes which the "changes"
clause of the contract authorizes the purchasing agent to order without the consent of
the contractor.
(6) City. The City of Harrisonburg, Virginia, as well as any department, agency,
commission, bureau or other unit thereof.
(7) City Attorney. The attorney selected by the City to have the management, charge and
control of all legal business of the City. With regard to matters concerning The
Harrisonburg Electric Commission, the attorney employed by that Commission shall
be considered the City Attorney.
(8) City Council. The City Council of the City of Harrisonburg, Virginia.
(9) City Manager. The Chief Administrative Officer of the City of Harrisonburg.
(10) City Purchasing Agent. The City's purchasing agent shall be designated by the City
Manager and report to the Director of Finance. With specific regard to purchases by
or contracts with The Harrisonburg Electric Commission, only the general manager
thereof or other individuals designated by him shall be deemed the City Purchasing
Agent.
(11) Capital Item. Capital items or commodities are tangible fixed assets with a useful
life greater than one 1 year and values as illustrated in memorandum #2.
Effective 7-01-02.
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(12) Confidential Information. Any information which is available to an employee only
because of the employee's status as an employee of this City and is not a matter of
public knowledge or available to the public on request.
(13) Construction. Building, altering, repairing, improving or demolishing any structure,
building or highway, any and draining, dredging, excavation, grading or similar work
upon real property.
(14) Construction management contracté. A contract in which a party is retained by the
owner to coordinate and administer contracts for construction services for the benefit
of the owner, and may also include, if provided in the contract, the furnishing of
construction services to the owner.
(15) Contract. All types of city agreements, regardless of what they may be called, for the
procurement of goods, services, insurance or construction.
(16) Contract modification. Any written alteration in specifications, delivery point, rate of
delivery, period of performance, price, quantity, or other provision of any contract
accomplished by mutual action of the parties to the contract.
(17) Contractor. Any person having a contract with the City or an agency thereof.
(18) Cost analysis. The evaluation of cost data for the purpose of arriving at costs actually
incurred or estimates of costs to be incurred, prices to be paid, and costs to be
reimbursed.
(19) Cost data. Factual information concerning the cost of labor, material, overhead, and
other costs elements which are expected to be incurred or which have been actually
incurred by the contractor in performing the contract.
(20) Cost-reimbursement contract. A contract under which a contractor is reimbursed for
costs which are allowable and allocable in accordance with the contract terms and the
provisions of this policy, and a fee or profit, if any.
(21) Direct or indirect participation. Involvement in any procurement transaction through
decision, approval, disapproval, recommendation, preparation of any part of a
purchase request, influencing the content of any specification or procurement
standard, rendering of advice, investigation, auditing, or in any other advisory
capacity.
(22) Disadvantaged business. A small business which is owned or controlled by a
majority of persons, not limited to members of minority groups, who have been
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deprived of the opportunity to develop and maintain a competitive position in the
economy because of social disadvantages.
(23) Employee. An individual drawing a salary or wages from the City whether elected or
not; any noncompensated individual performing personal services for the City or any
department, agency, commission, council, board or any other entity established by the
executive or legislative branch of this City and noncompensated individual serving as
an elected official of the City.
(24) Freight. The definition of freight is any charges to the City which may include a
Common Carrier Package Delivery, US Postal Service, taxes which the City may not
be exempt from, Insurance on goods, Set-up charges, handling charges or any other
miscellaneous charges a vendor adds to the delivered cost of a commodity or service.
(25) Fixed Assets. Capital items or commodities are tangible fixed assets with a unit cost
exceeding $5,000 and a useful life greater than 1 year. Effective 7-01-00.
(26) General Manager. The individual employed by the Harrisonburg Electric
Commission as its chief executive officer.
(27) Goods. All material, equipment, supplies, printing and automated data processing
hardware and software.
(28) Governing body. The City Council.
(29) Immediate family. A spouse, children, parents, brothers and sisters, and any other
person living in the same household as the employee.
(30) Informality. A minor defect or variation of a bid or proposal from the exact
requirement of the invitation to bid, or the Request for Proposal, which does not
affect the price, quality, quantity or delivery schedule for the goods, services or
construction being procured.
(31) Insurance. A contract whereby, for a stipulated consideration, one party undertakes
to compensate the other for loss on a specified subject by specified perils.
(32) Invitation for bids. All documents, whether attached or incorporated by reference,
utilized for soliciting sealed bids. No confidential or proprietary data shall be
solicited in any Invitation for Bids.
(33) Nominal value. A sum which is no more than one thousand dollars ($1,000).
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(34) Nonprofessional services. Any services not specifically defined hereafter as
professional services.
(35) Official responsibility. Administrative or operating authority, whether intermediate
or final, to initiate, approve, disapprove or otherwise affect procurement transaction,
or any claim resulting therefrom.
(36) Pecuniary interest arising from the procurement. A material financial interest as
defined in the Virginia Conflict of Interests Act (2.1-348 et seq.).
(37) Person. Any business, individual, union, committee, club, other organization, or
group of individuals.
(38) Price analysis. The evaluation of price data, without analysis of the separate cost
components and profit as in cost analysis, which may assist in arriving at prices to be
paid and costs to be reimbursed
(39) Pricing data. Factual information concerning prices for items substantially similar to
those being procured. Prices in this definition refer to offered or proposed selling
prices, historical selling prices and current selling prices. The definition refers to
data relevant to both prime and subcontract prices.
(40) Procurement transaction. All functions that pertain to the obtaining of any goods,
services or construction, including description of requirements, selection and
solicitation of sources, preparation and award of contract, and all phases of contract
administration.
(41) Professional services. Work performed by an independent contractor within the
scope of the practice of accounting, architecture, land surveying, landscape
architecture, law, medicine, optometry or professional engineering.
(42) Public body. Any legislative, executive or judicial body, agency, office, department,
authority, post, commission, committee, institution, board or political subdivision
created by law to exercise some sovereign power or to perform some governmental
duty, and empowered by law to undertake the activities described in this policy.
(43) Public employee. Any person employed by a public body, including elected officials
or appointed members of governing bodies.
(44) Qualified products list. An approved list of goods, services, or construction items
described by model or catalogue number, which prior to competitive solicitation, the
City has determined will meet the applicable specification requirements.
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(45) Request for proposals. All documents, whether attached or incorporated by
reference, utilized for soliciting proposals.
(46) Responsible bidder or offeror. A person who has the capability, in all respects, to
perform fully the contract, assures good faith performance, and who has been pre-
qualified, if required.
(47) Responsive bidder. A person who has submitted a bid which conforms in all material
respects to the Invitation to Bid.
(48) Services. Any work performed by an independent contractor wherein the service
rendered does not consist primarily of acquisition of equipment or materials, or the
rental of equipment, materials and supplies.
(49) Sheltered workshop. A work-oriented rehabilitative facility with a controlled
working environment and individual goals which utilizes work experience and
related services for assisting the handicapped person to progress toward normal living
and a productive vocational status.
(50) Small business. A United States business which is independently owned and which
is not dominant in its field of operation or an affiliate or subsidiary of a business
dominant in its field of operation.
(51) Specification. Any description of the physical or functional characteristics, or of the
nature of a good, service or construction item. It may include a description of any
requirement for inspecting, testing, or preparing a good, service or construction item
for delivery.
(52) Low bid. When making a determination of the lowest responsive and responsible
bidder, setup charges, freight, insurance, taxes, and/or handling charges of any kind
shall be included as part of the commodities and/or services unit cost.
Example: Bid for widgets - Cost + freight = Unit Cost
Company A (New York) $1.00 .05 $1.05
Company B (Richmond) 1.04 free 1.04
Company C (California) .85 .22 1.07
In the example above Company B is awarded the bid based on the lowest cost
including freight. Company C would be rotated out of the City’s next bid for
widgets, unless there are no other Vendors on the Bid List waiting to bid on widgets.
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ARTICLE B
OFFICE OF THE PURCHASING AGENT
4-3-7 Establishment, and Appointment
(a) There is hereby created a purchasing system to operate under the direction and
supervision of the City Manager or with regard to purchases by the Harrisonburg Electric
Commission under the direction and supervision of its general manager.
(b) The City Manager shall appoint the City's purchasing agent who will report to the City's
Director of Finance. The General Manager of HEC shall be the purchasing agent for the
Harrisonburg Electric Commission.
4-3-8 Authority
The purchasing agent shall have authority to procure goods, services, insurance and
construction in accordance with this chapter as well as to manage and dispose of supplies.
4-3-9 Duties
In accordance with this chapter, the purchasing agent shall: (1) Purchase or supervise the
purchasing of all goods, services, insurance and construction needed by this City; (2) Exercise direct
supervision over the City's central stores and general supervision of all other inventories of goods
belonging to the City; (3) Sell, trade or otherwise dispose of surplus goods belonging to the City; (4)
Establish and maintain programs for specifications, development, contract administration, and
inspection and acceptance, in cooperation with the public agencies using the goods, services, and
construction.
4-3-10 Operational Procedures
Consistent with this chapter, the purchasing agent may adopt operational procedures relating
to the execution of the duties assigned.
4-3-11 Delegation
The purchasing agent may delegate authority to purchase certain supplies, services or
construction items to other employees of the City if such delegation is deemed necessary by the
purchasing agent for the effective procurement of those items.
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4-3-12 Unauthorized purchases
Except as herein provided, no official, elected or appointed, or any employee shall purchase
or contract for any goods, services, insurance or construction within the preview of this chapter. Any
purchase order or contract made contrary to the provisions hereof is not approved and the City shall
not be bound thereby.
ARTICLE C
COOPERATIVE PROCUREMENT
4-3-13 Conditions for use
The City may participate in, sponsor, conduct or administer a cooperative procurement
agreement with one or more other public bodies for the purpose of combining requirements to
increase efficiency or reduce administrative expenses. Any public body which enters into a
cooperative procurement agreement with the City shall comply with the policies and procedures
adopted by this policy. Any public body may participate in, sponsor, conduct, or administer a
cooperative procurement agreement on behalf of or in conjunction with one or more other public
bodies, or public agencies or institutions or localities of the several states, of the United States or its
territories, the District of Columbia, or the U.S. General Services Administration, for the purpose of
combining requirements to increase efficiency or reduce administrative expenses in any acquisition
of goods and services. Except for contracts for professional services, a public body may purchase
from another public body's contract even if it did not participate in the request for proposal or
invitation to bid, if the request for proposal or invitation to bid specified that the procurement was
being conducted on behalf of other public bodies. Any public body that enters into a cooperative
procurement agreement with a county, city, or town whose governing body has adopted alternative
policies and procedures pursuant to subdivisions 9 and 10 of § 2.2-4343 Code of VA, shall comply
with the alternative policies and procedures adopted by the governing body of such county, city, or
town.
ARTICLE D
CONTRACT FORMATION AND METHODS OF SOURCE SELECTION
4-3-14 Competitive Sealed Bidding
(a) Conditions for Use
All public contracts with non-governmental contractors for the purchase or lease of
goods, or for the purchase of services, insurance, or construction shall be awarded
after competitive sealed bidding, or competitive negotiation as provided in this