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PROCUREMENT MANUAL
Policies and Procedures
Revised 11-30-2015
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INTRODUCTION
This updated manual was approved by the CEDA Executive Board of Directors on
December 15, 2015, and will be effective commencing January 1, 2016.
This document can be found in the “public folders” of Microsoft Outlook.
Purpose:
The purpose of these Procurement Policies and Procedures is to provide guidance to
the Community and Economic Development Association of Cook County, Inc. (CEDA)
and to contractors interested in contracting with CEDA. These policies and procedures
govern the procurement of contracts for goods and services. They are designed to
encourage and promote competition among contractors to ensure that CEDA receives
the highest quality products and services at the lowest price in the most efficient way.
CEDA will use competitive principles in awarding all contracts of any amount with only a
defined exception. The exception to the competitive principle include a) repair parts,
accessories; equipment or services for equipment or services previously furnished or
contracted b) sole source professional services, must be justified and approved c)
goods or services required to mitigate an emergency affecting the health and safety of
CEDA clients or staff d) water, electricity (single market place) e) items that have been
competed unsuccessful where additional bids would be costly or otherwise prohibitive.
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TABLE OF CONTENTS
INTRODUCTION 2
FORWARD 7
Section 1 GLOSSARY OF TERMS 9
Section 2 PROCUREMENT OBJECTIVES 14
Section 3 PROCUREMENT DEPARTMENT RESPONSIBILITIES 14
Section 3.1 Procurement Records 15
Section 3.2 Commitment of Agency Funds Policy 15
Section 4 PROCUREMENT POLICIES 15
Section 4.1 Laws Governing CEDA Procurement 15
Section 4.2 Ethics Policy 16
Section 4.2.1 Ethical Standards for Directors, Employees and Agents of
CEDA 16
Section 4.2.2 Conflicts of Interest 18
Section 4.2.3 Exceptions 18
Section 4.2.4 Ethical Standards for Non-Employees 18
Section 4.2.5 Business Meals 19
Section 4.2.6 Ethical Standards for Employees of the Procurement
Department 19
Section 4.3 The Procurement Cycle 20
Section 4.4 Competition Policy 21
Section 4.4.1 Geographic Preferences 21
Section 4.5 Contractor Selection Policy 22
Section 4.6 Specification Development Policy 22
Section 4.7 Components of a Purchasing Description 23
Section 5 PROCUREMENT SOURCE SELECTION METHODS 23
Section 5.1 Selection of Procurement Method 23
Section 5.2 Solicitation Procedures – Formal Bids and Proposals 23
Section 5.2.1 Timely Submissions 24
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Section 5.2.2 Contract Cost and Price 24
Section 5.2.3 Formal Bids 24
Section 5.2.4 Formal Bidding Procedure 25
Section 5.2.5 Submission of Bids 26
Section 5.2.6 Modification and Withdrawal of Bids 27
Section 5.2.7 Opening of Bids 27
Section 5.2.8 Rejection of all Bids after Bid Opening 27
Section 5.2.9 Rejection of Bids after Bid Evaluation 28
Section 5.2.10 Minor Informalities or Irregularities in Bids 29
Section 5.2.11 Evaluation of Formal Bids 29
Section 5.2.12 Bid Rigging 30
Section 5.3 Competitive Proposals 30
Section 5.3.1 Pre-Qualified Lists 32
Section 5.3.2 The RFP Process 32
Section 5.3.3 Evaluations of Requests for Proposals 33
Section 5.4 Solicitation Procedures – Informal 33
Section 5.4.1 Informal Solicitation Procedure 33
Section 5.4.2 Authorization to Obtain Price Quotes 35
Section 5.4.3 Non-Competitive Procurement 35
Section 5.4.4 Cooperative Purchasing Agreements 36
Section 6 EVALUATIONS 36
Section 6.1 Appointing and Evaluation Committee 37
Section 6.2 Evaluation Committee Members 37
Section 6.3 Duties and Responsibilities of Evaluation Committee
Members 37
Section 6.4 Committee Meetings 38
Section 6.5 Understanding Solicitation Documents 38
Section 6.6 Evaluation Criteria 38
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Section 6.7 Discussions at Committee Meetings 39
Section 6.8 Oral Presentations 39
Section 6.9 Committee Recommendation 39
Section 7 CONTRACT ADMINISTRATION 40
Section 7.1 Contracts 41
Section 7.2 Contract Types 42
Section 7.2.1 Time and Material Contracts 42
Section 7.3 Contract Provisions 42
Section 7.4 Contracts over $150,000 44
Section 7.5 Construction Projects in Excess of $150,000 44
Section 7.6 Negotiated Contracts 44
Section 7.7 Purchase Orders as Contracts 45
Section 7.8 Procedures for Developing Contracts 45
Section 7.8.1 Service Agreements of $3,000 or Less 46
Section 7.8.2 Vendor Contract Form 46
Section 7.9 Contract Tracking/Monitoring 46
Section 7.10 Contract Execution and Term 47
Section 7.11 Time Extensions 47
Section 7.11.1 Approval/Disapproval of Extension 48
Section 7.12 Contract Modification Process 48
Section 7.13 Written Authorization Required 48
Section 7.14 Federal Awarding Agency or Pass-Through Entity Review 48
Section 8 SOURCING PROCEDURES AND MARKET EVALUATION 49
Section 8.1 Sources of Supply 50
Section 8.1.1 Bidders List 50
Section 8.1.2 Minority, Women and Small Business Development 51
Section 8.2 Contractor Pre-Qualification 52
Section 9 FACILITIES 52
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Section 9.1 Facilities Requests 52
Section 9.2 Emergency Situations 53
Section 9.3 Prevailing Wages 54
Section 10 CONTRACTOR RELATIONS AND EVALUATIONS 55
Section 10.1 Contractor Evaluation 55
Section 10.2 Contractor Appeal and Protest 56
Section 10.3 Contractor Debarment 56
Section 11 TRAINING 60
EXHIBITS 61
Exhibit 1 Quotes Form
Exhibit 2 Professional Services Agreement
Exhibit 3 Contract Sign Off form
Exhibit 4 Business Card Form
Exhibit 5 Ethics/Conflicts of Interests Statement - IFB
Exhibit 6 Ethics/Conflicts of Interests Statement – RFP/Q
Exhibit 7 Confidentiality Statement – IFB
Exhibit 8 Confidentiality Statement – RFP
Exhibit 9 Conflict of Interest Statement
Exhibit 10 Sole Source Justification Form
Exhibit 11 Vendor Evaluation Form
Exhibit 12 Vendor Add Form
Exhibit 13 Evaluation Committee Guidelines
Exhibit 14 Department Request for Solicitation to Obtain Goods
Exhibit 15 Department Request for Solicitation to Obtain Services
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FOREWORD
CEDA’s Mission
The Community and Economic Development Association of Cook County, Inc. (CEDA) is a
community action agency that serves Cook County in the State of Illinois. It provides economic
development and human service programs to address the immediate needs of low-income
county residents as well as the underlying conditions which cause those needs. It is CEDA’s
mission to work in partnership with communities to empower families and individuals to achieve
self-sufficiency and improve their quality of life. Its mission is to create, through comprehensive
and coordinated program activities, a climate of awareness within which conscious, self-directed
social change toward the elimination of poverty and its causes can and will take place on the
part of individuals, families and community institutions.
Procurement Department Mission
The Procurement Department is committed to providing high quality/value-added Procurement
services and good stewardship of the Agency’s funds. Our commitment to providing value-
added services is the basis for leveraging CEDA’s purchasing power and employing cost-saving
methods. This effort by the Procurement Department adds dollars to the Agency’s bottom line
thus helping CEDA ensure the successful fulfillment of its mission.
The mission of the Procurement Department is to provide enlightened and responsible
leadership to CEDA’s procurement function. This leadership ensures that user Departments
obtain the goods and services of the quality and quantity they require, within their stated
timeframes, at the least possible cost and through a method that conforms to the procurement
policies and procedures set forth by CEDA’s various funding sources.
Procurement will provide timely goods and services through a fair, open and competitive
process while maintaining high internal and external customer service.
This Procurement Manual (the Manual) has several functions. It articulates CEDA's
procurement policies and procedures and:
Defines purchasing authority and policies
Clarifies the Procurement Department’s relationships with other Departments
Standardizes and communicates approved practices
Guides personnel in decision making
Promotes contractor understanding and cooperation
Fulfills management departmental requirements
Provides standards for evaluating performance
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The Manual is intended to provide guidelines to purchases of supplies, equipment and services
including professional services. This Manual will serve as a reference for CEDA employees,
Officers and Board Members. It is the responsibility of CEDA employees to understand the
policies herein and adhere to them. Any provision of the Manual that conflicts with statements
included in a Request for Proposal (RFP), Invitation for Bid (IFB) document, or funding source
requirements shall be superseded by the provisions specified in the RFP, IFB document or
funding source requirements. If the Manual does not address a provision identified in these
documents or requirements then the provision as identified in the documents or requirements
shall be accepted as the correct provision. If the Manual contains a provision that is not
identified in the solicitation documents or funding requirements, the provision in the Manual shall
be accepted as the correct provision.
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SECTION 1 GLOSSARY OF TERMS
Frequently used terms are listed below:
Addendum
This refers to a change of a formal document not yet
executed, such as changes to bid documents prior to bid
opening or changes to contracts not yet executed.
Agreement
The term "Agreement" is generally used when entering into
a contract for services, particularly professional services;
however, agreement and contract are generally used
interchangeably.
Amendment
Amendments refer to written changes to executed
documents. This may include but is not limited to a change
in the term of service, scope, or compensation.
Appeal or Protest Complaint lodged by a vendor or contractor to contest a
procurement specification, evaluation or contract award.
Authorized Contractors
Contractors that have been pre-qualified by CEDA’s
procurement process or have been selected because of
CEDA’s procurement process as outlined in its policies and
procedures.
Bid
An Invitation for Bid (IFB) is a formal competitive solicitation. IFBs generally have an advertised public opening conducted at the time and date specified in the IFB. The responses are evaluated and awarded to the responsive, responsible bidder with the lowest price. When using this solicitation, price as well as specification requests are major considerations in the award process.
Bidder A contractor that submits a bid in response to an Invitation
for Bid (IFB).
Bid Bond
A bond, certified check or other negotiable instrument
accompanying a bid as assurance that the bidder will, upon
acceptance of the bid, execute such contractual
documents as may be required within the time specified.
Bid Rigging
Bid Rigging is a form of fraud where bidders conspire to fix
a bid by agreeing that certain bidders will not genuinely
compete for the contract allowing a selected bidder to win
the bid. Bidders will submit artificially high bids such that
the selected bidder of a group can win the bid.
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Category of Spend
The category of spend refers to groups of commodities or
services within a certain area, such as: travel and
entertainment, professional services, construction,
technology, telecommunications, etc.
CEDA The Community and Economic Development Association
of Cook County, also known as the “Agency”
Change Orders
These are generally field orders that have been authorized
and incorporated into a contract modification. There may
be various change orders incorporated into a modification.
Consultant The term "consultant" is generally used when entering into
an agreement for professional services.
Contract
An agreement in which a buyer agrees to acquire goods or
services from a seller. Generally includes business
provisions, detailed pricing, invoicing/payment information,
and other legal terms and conditions.
Contractor
Supplier of goods or services, including construction or
maintenance. Contractors can also be called vendors or
suppliers.
Cure Period
A cure period is one of the remedies that the parties have
to address and rectify an event of default. To initiate a
cure period there should be official written Notice.
Debarment
The exclusion of a person or company from participating in
a procurement activity for an extended period of time,
because or previous illegal or irresponsible action.
Emergency
This method must pass the test of emergency for the
agency. Generally, the test implies that the situation
presents a risk to the safety, health of the public or
individuals; significant damage to property or the
operations of the organization; severe fiscal or financial
impact on the operations of the organization.
Event of Default
These are conditions of non-compliance with contract
requirements. Either the contractor or agency has failed to
perform in accordance with the terms of the contract or
failed to meet the qualifications or requirements needed to
continue to perform satisfactorily under the contract.
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Financial Edge CEDA’s financial, purchasing and general ledger software.
Joint Purchasing
Joint purchasing, also referred to as Cooperative
purchasing, is the effort to promote cost –effective use of
shared services by entering into intergovernmental
agreements with other agencies for shared goods or
services, or the use of another agency’s contracts whereby
the agency has completed the selection and award of a
Contractor through a competitive process.
Lowest bidder
The term lowest bidder means that the bidder whose price
of the goods or service is less than that of any other
responsive and responsible submission.
Method of Procurement
The method is the process by which an agency solicits
offers from prospective contractors/consultants/vendors.
The method to be followed is determined by the
Procurement Department. Methods include: Bid, RFP,
RFQ, Sole Source, Emergency, Cooperative purchasing.
Micro-purchase
The acquisition of supplies or services of which the
aggregate dollar amount per purchase does not exceed
$3,000.
Notice to Proceed
This term, generally referred to as NTP, is the official
notice to commence work. It establishes the actual
commencement and completion date of a construction
contract. This is an important Notice as liquidated
damages are determined based on the number of days
passed the completion date established in the NTP that
contractor takes to complete the work.
Payment and Performance
Bond
A bond submitted by the Contractor, executed in
connection with a contract award to secure fulfillment of all
the Contractor’s obligations under the Contract, and to
assure payment as required by law of all persons supplying
labor and materials in the execution of work provided for in
the Contract.
Pre-Award Protest Protest regarding the evaluation of bids, qualifications or
proposals.
Pre-Bid Protest Protest regarding a portion of a bid solicitation.
Post-Award Protest Protest Regarding the Award of a Contract or Contract
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Extension.
Provider Supplier of professional services.
Purchase Order (PO) Document used to commit the agency to orders of goods
and services.
Purchase Requisition A request for goods and/or services forwarded to the
Procurement Department by the user department
Quote An estimate of cost to provide a good or service.
Request for Proposal
(RFP)/Request for
Qualifications (RFQ)
A competitive proposal which requires a vendor to supply
any or all of the following; their qualifications to do the job,
a proposal outlining how he or she would do the job and
the cost of the job. This process can be a one, two or three
step process depending on the type of procurement. The
RFP/RFQ will delineate all evaluation criteria and factors
that will be considered in the contract award. Awards will
be made to the proposer whose proposal, in the sole
opinion of CEDA best meets the criteria required in the
RFP and is most advantageous to the program and the
Agency when all factors are considered.
Responsible bidder
Responsibility is a proposer’s financial solvency, past
performance (references, good standing with required
Federal, State and local agencies) good standing with
CEDA and ability in the sole determination of CEDA of the
bidder to provide the required goods or services at the
proposed price.
Responsible contractors will not have been on any Federal
debarment list. In addition the verdict of court cases will be
reviewed. Contractors convicted of an offense of a criminal
nature i.e. fraud, embezzlement etc. will be considered
unresponsive. In addition Contractors that show a
consistent pattern of litigation for faulty of dangerous work
will also be considered unresponsive.
Responsive Bidder
Responsiveness is attained if the bidder has met all
submittal requirements and the basic bidding criteria that is
outlined in the bid document.
Simplified Acquisition
Threshold
Purchases for goods, supplies or services that exceed
$150,000.
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Small purchases
Informal procurement methods for securing services,
supplies or other property above $3,000 that do not exceed
$150,000. If small purchases procedures are used, price or
rate quotations must be obtained from an adequate
number of qualified sources.
Sole Source
Sole Source or procurement by noncompetitive proposals
is procurement through solicitation of a proposal from only
one source.
Specification
A concise description of an item or service that CEDA
seeks to buy and the requirements the vendor must meet
in order to be considered for a contract award.
Solicitation A notification of an organization’s interest in purchasing
specified goods or services
User Departments
Programs within CEDA that the Procurement Department
serves by obtaining for them goods or services using
appropriate procurement processes.
Value-Added Services Services that add to the value of a purchase or enhance
the procurement experience.
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SECTION 2 PROCUREMENT OBJECTIVES
OBJECTIVES
The Procurement Department has the following overall objectives for its service to CEDA.
Provide guidelines for ethical behavior in procurement for CEDA Board of Directors,
Officers, Staff and Contractors.
Provide continuous support to the functions, user departments and Agency programs
Continue the Procurement department’s transition from a transactional to strategic
procurement model
Utilize the full capacity of automated systems to incorporate all bidding, requisitioning
and receiving processes.
Continue centralization of procurement process within CEDA’s Procurement Department
Manage the supply chain so that delivery is synchronized to need
Utilize commodity sourcing strategies to leverage volumes and achieve cost savings
Provide equal opportunity in procurement process for participation by all eligible
contractors
Maximize the utilization of small, minority, women owned businesses and labor surplus
area firms in the purchase of goods or services for CEDA
Maintain internal controls to safeguard the quality and integrity of the procurement
process
Provide leadership to the procurement process from specification to contract award
Continue to enforce all CEDA ethics polices through all phases of the acquisition so that
there are no documented cases of procurement related ethical breaches
SECTION 3 PROCUREMENT DEPARTMENTAL RESPONSIBILITIES
In performing its procurement and management functions, the Procurement Department leads
the search for sources of contractors, researches for the best quality and pricing of goods and
supplies, manages contractor selection, and manages the process for the procurement of goods
and services. Some of the key activities of purchasing include:
Convening and leading users groups for the development of commodity procurement
strategies
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Defining, developing and maintaining contractor relationships for key commodity
groups
Maintaining accurate procurement records
Extending appropriate assistance to user departments in determination of the most
suitable materials, equipment and services available to meet their requirements
Coordinating the information related to materials, equipment or services to be
purchased, the selection of the sources of supply and the relative quality and
suitability of offerings
Promoting good contractor relationships, cultivated by informed and fair buying
practices, by strict maintenance of ethical standards and by courteous and prompt
reception of contractor representatives
3.1 Procurement Records
CEDA must maintain records sufficient to detail the history of the procurement. These records
will include, but are not limited to the following: rationale for the method of procurement,
selection of contract type, contractor selection or rejection, and the basis for the contract price.
3.2 Commitment of Agency Funds Policy
Contractual agreements whose value is $25,000 or more require the approval of the CEDA
Board of Directors and the signature of the President/CEO of CEDA. In addition, the CEO shall
sign these contracts indicating that this agreement is approved by the program or programs its
serves, and the CFO must review these agreements indicating that the proposed expenditure is
budgeted and is appropriate for the program.
The President/CEO may delegate the authority of the management of the procurement process
for these agreements to his or her designees. This authority extends to approving and releasing
purchase orders for purchases made in line with CEDA policies and procedures. It is
understood that one-time orders for goods orders for monthly service or emergency service may
not result in a written contractual agreement other than a purchase order. These orders will
have been checked for budget availability by the automated system and approved at the
requisition stage by the program director or designee.
SECTION 4 PROCUREMENT POLICIES
The statements contained in this section are the laws and policies that govern CEDA
procurement.
4.1 Laws Governing CEDA Procurement
The statements contained in this section are the laws and policies that govern CEDA
Procurement.
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Procurement practices of CEDA are governed by agency policies as adopted by the Board of Directors and requirements of funding agencies including the applicable provisions of OMB Circulars A-133 and A-110 and OMB Circular A-122, 2 CFR part 230 and Appendix B, and 41 CFR Part 60 seq.; 2 CFP Part 200.213; 2 CFR Part 200.318 – 326; 42 U.S.C. §12102 et. seq.; 45 CFR part 74.40-48; 45 CFR part 75.326 – 335; 41 U.S.C. 403(11), 42 U.S.C. §§6101-6106; 10 CFR section 600.236 of the DOE regulations; 31 U.S.C. §1352, 29 U.S.C. §§ 793-794; 30 ILCS 500 Illinois Procurement Code.
Contractors shall comply with the following statutes as applicable: Title VII of the Civil Rights Act of 1964, 42 U.S.C.§ 2000 et seq. (1988), as amended by the Civil Rights Act of 1991 and the Lily Ledbetter Fair Play Act of 2009; Executive Order 11236, as amended by Executive Order 11375, and as supplemented by 41 CFR Part 60-1; Age Discrimination in Employment Act of 1967, 29 U.S.C. §§621-634, as amended; Rehabilitation Act of 1973, 29 U.S.C §701 et. seq., as amended. 4.2 Ethics Policy
It is the intent of CEDA to incorporate high ethical standards into the execution of daily
professional activities. Procurement activities are affected by moral standards and ethical
values, as well as being subject to widespread publicity. Major procurement decisions may be
difficult and controversial even when there are no overt political pressures. It is very important
that personnel engaged in procurement activities (both procurement staff and staff of user
Departments) conduct themselves in a manner that is above reproach. Relations of a
compromising or "favored" nature, or even the appearance of such relations, are to be
scrupulously avoided.
Ethical behavior cannot be legislated. Rules applicable to every situation which may be
confronted cannot be written. However, it is possible to establish policies and guidelines that
assist in establishing and maintaining high standards of conduct. It is CEDA’s intention that the
ethical standards and requirements listed below will govern activities of CEDA’s Board of
Directors, staff and contractors in every phase of the acquisition process. These policies and
procedures are established to encourage adherence to an uncompromising level of integrity.
They are designed to heighten awareness and acceptance of appropriate conduct. Policies
stated here are intended to provide insight for handling difficult day-to-day issues. Staff should
remember that policies and procedures cannot take the place of good judgment. When in
doubt, consult with management, professional colleagues … and of course your conscience.
Violations of CEDA’s Procurement ethics policies and procedures can result in disciplinary
action and ultimately in dismissal.
4.2.1 Ethical Standards for Directors, Employees and Agents of CEDA
Members of the Board of Directors, employees and agents of CEDA (Employees) shall avoid
the intent and appearance of unethical or compromising conduct in relationships, actions, and
communications. The consequences of a perceived impropriety can be the same as
consequences of an actual impropriety. Therefore, it is essential that any activity or involvement
between Employees and active or potential suppliers which in any way diminishes, or even
appears to diminish, open and fair treatment of suppliers is strictly avoided. Those who do not
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understand the circumstances will judge based on appearances. Employees must consider this
and act accordingly.
No Employee shall participate in the selection or in the award or administration of a contract if a
conflict of interest, real or apparent, would be involved. Such a conflict would arise when the
Employee, his spouse, children, grandchildren, parents, aunts, uncles, cousins, significant other
or life partner (immediate family), his or her business partner; or an organization which employs
or is about to employ any of the above has a financial or other interest in the contractor selected
for the award.
It is a breach of ethical standards for any Employee to participate directly or indirectly in any
aspect of the procurement process including but not limited to selection of the contractor and
administration of the contract when the Employee knows that:
The Employee or any member of the Employee’s immediate family has a financial
interest pertinent to the procurement
A business organization in which the Employee or any member of the Employee’s
immediate family has a financial interest pertaining to the procurement has a financial
interest in the procurement
Any other person, business or organization with which the Employee or any member of
the Employee’s immediate family is affiliated has a financial interest pertinent to the
procurement
No Employee may order any good(s) or service(s) for their personal use or consumption in the
name of CEDA, even if it is their intention to pay for the item(s) or service(s) from personal
funds.
No Employee shall solicit nor accept gratuities, favors, premiums, personal discounts, loans,
money or anything of monetary value from contractors/vendors, potential contractors, or parties
to sub-agreements for his or her personal use. Monetary value is defined as non-perishable
items with a value of $50.00 or more.
An example of a premium is the offering of a TV or VCR for the purchase of 5,000 pens. If a
premium is provided within the parameters of a normal purchase the premium becomes the
property of CEDA; it must be added to the program inventory and given to the program director
for use within the program.
All rebates on purchases made with CEDA funds become the property of CEDA and must be
turned in to the CFO for deposit in the proper account.
In addition to the restrictions on contracting with CEDA, CEDA employees are prohibited from soliciting, demanding, accepting or agreeing to accept from another person a gratuity or an offer of employment in connection with any procurement decision. Similarly, CEDA employees are prohibited from accepting any payment or offer of employment made by or on behalf of a subcontractor as an inducement for the award of a subcontract or order. Finally, employees may
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not knowingly use confidential information for actual or anticipated personal gain, or for the actual or anticipated gain of any person.
4.2.2 Conflicts of Interest
CEDA, its Affiliates and all Officers, Directors, Employees, Delegates, Council and Committee members scrupulously shall avoid any conflict between their respective personal, professional or business interests and the interests of CEDA, in any and all actions taken by them on behalf of CEDA in their respective capacities.
If any Officer, Director, Delegate, Employee of CEDA has any direct or indirect interest in, or relationship with, any individual or organization that proposes to enter into any transaction with CEDA, including but not limited to transactions involving:
the sale, purchase, lease or rental of any property or other asset
employment, or rendition of services, personal or otherwise
the award of any grant, contract, or subcontract
the investment or deposit of any funds of the Agency
Such person shall give notice of such interest or relationship and shall thereafter refrain from discussing or voting on the particular transaction in which he has an interest, or otherwise attempting to exert any influence on CEDA, or its components to affect a decision to participate or not participate in such transaction.
4.2.3 Exceptions
Where an Employee or member of the Employee’s immediate family holds a financial interest in
an all blind trust the Employee shall not be deemed to be in conflict of interest with regard to
matters pertaining to that financial interest provided the disclosure of the existence of the blind
trust has been made to the CFO of CEDA.
Upon discovery of an actual or potential conflict of interest, an employee shall promptly file a written statement of disqualification to the CFO of CEDA and shall withdraw from further participation in the transaction involved. Should the CFO have such a conflict of this nature the written statement of disqualification should be directed to the President/CEO. The person may also request written instructions and disposition of the matter. If an actual violation occurs or is not disclosed and remedied, the employee involved may be reprimanded, suspended, or dismissed. The contractor or potential contractor may be barred from receiving future contracts and have an existing contract canceled. 4.2.4 Ethical Standards for Non-Employees Any efforts to influence any CEDA employee to breach the standards of the ethical conduct
listed here is also a breach of the ethical standards of CEDA. Contractors shall offer no gifts,
gratuities, favors or anything of monetary value to any Board Member, Official or Employee of
CEDA based upon any mutual understanding either explicit or implicit that the business of
CEDA would be influenced by its acceptance. It is assumed that a perishable item or one
having a value of $50.00 or less does not imply such an understanding. No person who has an
economic interest in CEDA business shall give, directly or indirectly, to any CEDA individual or
group of employees whose decision or action may substantially affect such transaction, or to the
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immediate family member of such an employee, and none of them shall accept, any gift of (i)
cash or its equivalent regardless of value, or (ii) an item or service other than an occasional one
of nominal value (perishable item or one valued at less than $50.00) provided.
This section however does not prohibit reasonable hosting, including, entertainment, meals or
refreshments furnished by a contractor in connection CEDA business. It also does not preclude
sponsorship of activities in conjunction with fundraising for CEDA programs. Participation in
industry or company events, where the agency will receive some benefit (i.e. education or
industry updates, professional networking opportunities etc.) is also acceptable with prior
approval of the member of senior management staff that is responsible for the Department that
wishes to participate. Senior managers shall review the issues at the weekly senior staff
meeting if there is any doubt regarding the correct course of action.
4.2.5 Business Meals
An invitation for a business lunch or dinner, advertising novelty items or sales promotional gifts
may be accepted so long as they are of nominal value ($50 or less) and intended only to
enhance a business relationship. Meals as defined above may be accepted in connection with
business discussions provided the following criteria be met:
They are unsolicited
They are offered infrequently
They involve reasonable and not lavish expenses
They do not create an obligation or expectation
They take place in a setting reasonable and appropriate for the individuals involved
in the business at hand
4.2.6 Ethical Standards for Employees of the Procurement Department
The employees that work for the Procurement department of CEDA are required to support the
agency's operating departments with an uninterrupted flow of materials and services.
Procurement personnel are custodians of CEDA's reputation for fair and equitable procurement
practices. Accordingly, a high ethical standard of conduct is mandatory. Procurement
Department employees must discharge their duties impartially to assure fair and competitive
access to procurement opportunities by responsible vendors. For these reasons employees of
the Procurement Department and all employees that take (in addition to the steps listed above)
an active part in the acquisition process are bound by the following ethical standards. They
must strictly adhere to all of the ethical standards already set forth in this manual. In addition,
they will:
Believe in the dignity and worth of the services rendered by CEDA and the clients
served by CEDA
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Be governed by the highest ideals of honor and integrity in all public and personal
relationships, in order to merit the respect and inspire the confidence of the staff of
CEDA
Believe that personal enrichment or personal profit obtained through misuse of
CEDA funds or public or personal relationships is dishonest and cause for discharge
Identify and eliminate participation of any individual in operational situations where a
conflict of interest may be involved or perceived to be involved
At no time and under no circumstances accept directly or indirectly gifts, gratuities,
tips, kickbacks, money or anything of monetary value (value is defined as $50 or
more for nonperishable or limited types of promotional items) from contractors
Items with a value of $50.00 or less or perishable items may only be accepted once
per year from any current contactor or any contractor interested in selling to CEDA
4.3 The Procurement Cycle
The first step in any procurement is to determine the need for particular goods or services. Researching the market is often essential, and CEDA employees may find an ongoing effort to collect market information to be worthwhile. It is the policy of CEDA that the Procurement Cycle begins with the identification of the need to purchase a particular item or service. The Procurement Department may help develop requirements or specifications; however, they are not responsible for their development. Procurement works in tandem with user departments to create a final determination of the materials, equipment or services that are needed. This identification can take several forms which include but are not limited to:
A verbal or written statement of need by a user Department requesting the
commodity or service
A commodity evaluation by the Procurement Department reveals items or services
that should be purchased through competition
The expiration of contractual agreements for items that were selected through
competition requires renewal.
The procurement cycle is completed when goods are delivered or services are delivered as
requested and accepted by the requestor.
The agency should avoid any unnecessary or duplicative purchases. An analysis of internal
sources of supplies or services should be conducted prior to a user department initiating a
procurement request. The agency is encouraged to use State or Federal excess or surplus
property in lieu of purchasing new equipment and property whenever such use is feasible and
reduces project costs. Consideration will also be given to consolidating or breaking out
procurements to obtain a more economical purchase. Where appropriate, an analysis will be
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made or lease versus purchase alternatives, and any other appropriate analysis to determine
the most economical approach.
4.4 Competition Policy
It is the policy of CEDA that all procurement transactions will be conducted in a manner that
provides full and open competition. CEDA will use competitive principles in awarding all
contracts of any amount with only specifically defined exceptions.
All requests for goods or services not covered by an exception are subject to competition where
competition is available. In order to ensure objective contractor performance and eliminate
unfair competitive advantage, contractors that develop or draft specifications, requirements,
statements of work, or Invitations for Bid or Requests for Proposals must be excluded from
competing for such procurements. Some of the situations considered to be restrictive of
competition include but are not limited to:
Placing unreasonable requirements on firms in order for them to qualify to do
business
Requiring unnecessary experience or excessive bonding
Noncompetitive pricing practices between firms or between affiliated companies
Organizational conflicts of interest (as defined in Section 4.2 Ethics)
Specification of only “brand names” instead of allowing “an equal” product to be
offered and describing the performance or other relevant requirements of the
procurement
Any arbitrary action in the procurement process
The exceptions to the competitive principles include a) repair parts, accessories; equipment or
services for equipment or services previously furnished or contracted b) sole source
professional services c) and single source services that have only one supplier in the market
place such as water or electricity d) good or services required to mitigate an emergency
affecting the health and safety of CEDA clients or staff, or the fiscal stability of CEDA as an
agency (e) items that have been competed unsuccessfully where additional bids would be costly
or otherwise prohibitive.
Purchases in excess of $150,000 resulting from the selection of one qualified bid or response
will be reported to the funding agency, where required, prior to awarding of the contract.
4.4.1 Geographic Preferences
CEDA will conduct procurements in a manner that prohibits the use of statutorily or
administratively imposed state, local or tribal geographical preferences in the evaluation of bids
or proposals, except in those cases where applicable Federal statutes expressly mandate or
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encourage geographic preference. When contracting for architectural and engineering services,
geographic location may be a selection criterion provided its application leaves an appropriate
number of qualified firms, given the nature and size of the project, to compete for the contract.
4.5 Contractor Selection Policy
To insure competition all contractors must respond to a set of specifications prepared by the
Procurement Department in tandem with the user department. Selection will be made based on
the bid that represents the lowest responsive and responsible bidder in response to an Invitation
for Bid, or the proposal that in CEDA’s sole opinion best fulfills the evaluation criteria specified in
the Request for Proposal. CEDA will award contracts only to responsible contractors possessing
the ability to perform successfully under the terms and conditions of a proposed procurement.
Consideration will be given to such matters as contractor integrity, compliance with public policy,
record of past performance, and financial and technical resources.
4.6 Specification Development Policy
A specification is a concise description of an item or service that CEDA seeks to buy and the requirements the contractor must meet in order to be considered for a contract award. Once department personnel have determined a need, they must then convey that need to potential contractors in such detail as to ensure that CEDA receives responsive quotes, bids, or proposals that can be priced and compared in a fair manner. A sufficient purchase description may require only a few words for each item. For more complex procurements, the purchase description will include more detailed specifications that may include parameters such as size, dimensions, quality, performance, warranties, installation, and terms. A purchase description may also include a “scope of services” that details specific services, including the work products or deliverables to be produced under the contract. An inadequate purchase description renders effective competition impossible because potential contractors will not know what the CEDA is seeking and will be unable to offer a reliable price. Vague purchase descriptions often result in contractor protests and cancelled procurements. If the CEDA does award a contract using a vague purchase description, it may end up paying for supplies or services it does not need, and CEDA purchasing employees are likely to have disputes with vendors over what the contract does or does not require. User Departments, the Facilities Department, the Information Technology Department, the Procurement Department, an outside agency or independent contractor may prepare specifications. User departments must approve all specification however the final acceptance of the specifications rests with the Procurement Department. The Procurement Department will assist the user department in developing specifications, or in identifying sources from which technical specifications can be obtained. Procurement staff is encouraged to utilize specifications that are available through procurement professional organizations such as the Institute for Supply Management and the National Institute of Governmental Purchasing. The Procurement Department discourages the use of contractors in the preparation of
specifications for goods and services. Where contractors prepare specifications, they should be
compensated. However, they are not eligible to propose on the work resulting from their
specifications.
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4.7 Components of a Purchase Description At a minimum, the following are the elements of any good purchase description:
A list and description of each supply or service in sufficient detail for all contractors to understand what the department needs. Relevant sample documents may be appended to the purchase description; alternatively, contractors should be instructed how to obtain or review such documents. When purchasing a service, employees should clearly specify the service or services contractors will be required to perform and the documents, reports, and materials they must deliver.
The quantity of each supply or service needed and whether the quantity shown is the actual amount or an estimate. Contractors need this information to judge whether they can handle the contract and to submit accurate prices.
The timeline for which each supply or service is needed. The exact schedule, or an approximate schedule, with a statement that it is subject to minor adjustment, should be included in the purchase description.
The delivery terms, if known.
SECTION 5 PROCUREMENT SOURCE SELETION METHODS
5.1 Selection of Procurement Method
When initiating the procurement cycle, it is important that solicitations are in compliance with the
procurement standard procedures, meet the requirements of the user department, and that the
funds are budgeted for the expenditure. The Procurement Department, in collaboration with the
user department(s) will determine the best procurement method to successfully complete the
procurement process to deliver the goods or services needed by the Agency.
5.2 Solicitation Procedures – Formal Bids and Proposals
CEDA’s procurement procedures for solicitations incorporate clear and accurate descriptions of the technical requirements for the material, product or service to be procured. The descriptions will not unduly restrict competition. The description may include a statement of the qualitative nature of the material, product or service to be procured, and when necessary, set forth the minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use. When it is impractical or uneconomical to make a clear and accurate description of technical requirements, a “brand name or equivalent” description will be used as a means to define the performance or other salient requirements of procurement. The specific features of the named brand which must be met contractors must be clearly stated, and identify all requirements which the contractors must fulfill and all other factors to be used in evaluating bids or proposals.
Detailed specifications along with relevant terms and conditions are prepared by the user department and forwarded to the Procurement Department. Requests for solicitations must be
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submitted to the Procurement Department either in hard copy or electronically. All such requests should have the signature of (or if electronic be copied to) the program director. All requests should have the amount budgeted for the expenditure and the account number or numbers d requesting their approval, the dollar amount budgeted and the account number to fund the project.
The Procurement Department reviews these specifications for clarity, completeness, fairness and to insure that outcomes are quantifiable and measureable. They then incorporate these specifications into the Bid documents. Bidders may receive these documents by picking up a hard copy from CEDA’s central office, obtaining a copy from CEDA’s website or receiving a copy from the Procurement Department via email.
5.2.1 Timely Submissions
All requests for competitive solicitations (bids or proposals) include a time, date and location for
submittal to be considered. All bids or competitive proposals must be received by CEDA not
later than the date and time specified in the solicitation documents. Bids or proposals that are
received after the stated time or date shall be deemed late. They will not be returned to the
sender and not considered for contract award. Bids or proposals that are received at the stated
time and date, but are not submitted to the correct location, will be deemed late and will not be
considered for contract award.
5.2.2 Contract cost and price
A cost or price analysis must be performed in connection with every procurement action in excess of the Simplified Acquisition Threshold of $150,000 including contract modifications. The method and degree of analysis is dependent on the facts surrounding the particular procurement situation, but as a starting point, the Agency will make independent estimates before receiving bids or proposals.
Profit will be negotiated as a separate element of the price for each contract in which there is no price competition and in all cases where a cost analysis is performed. To establish a fair and reasonable profit, consideration must be giving to the complexity of the work to be performed, the risk borne by the contractor, the contractor’s investment, the amount of subcontracting, the quality of tis record of past performance, and industry profit rates in the surrounding geographical area for similar work.
Costs or prices based on estimated costs for contracts under a Federal award are allowable only to the extent that costs incurred or cost estimates included in negotiated prices would be allowable in the federal regulations. CEDA may reference its own cost principles that comply with the Federal cost principles. The cost plus percentage of cost and percentage of construction cost methods or contracting must not be used. 5.2.3 Formal Bids Competitive sealed bids are publicly solicited and a firm fixed price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming with all the material terms
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and conditions of the invitation for bid, is the lowest in price. The sealed bid method is the preferred method for procuring construction. A competitive sealed bidding process will be used when:
A complete, adequate and realistic specification or purchase description is available
Two or more responsible bidders are willing and able to compete effectively for the
business
The purchase lends itself to a firm, fixed-price contract
The selection of the bidder can be made principally on the basis of price
Formal bidding procedures will be used for securing goods, materials, supplies, maintenance,
repair or construction services that cost more than the Simplified Acquisition Threshold of
$150,000
5.2.4 Formal Bidding Procedure
If sealed bids are used, the following requirements apply:
Bid must be solicited from an adequate number of known bidders, providing them sufficient response time prior to the date set for opening the bids
The invitation for bids, which will include any specifications and pertinent attachments, must define the items or services in order for the bidder to properly respond
All bids will be opened at the time and place prescribed in the invitation for bids; the bids must be opened publicly
A firm, fixed price contract award will be made in writing to the lowest, responsive, responsible bidder. Where specified in the bidding documents, factors such as discounts, transportation costs, and life cycle costs must be considered in determining which bid is the lowest. Payment discounts will only be used to determine the low bid when prior experience indicates that such discounts are usually taken advantage of, and
Any and all bids may be rejected if there is a sound documented reason
Procurement staff will take the following steps in creating a bid document and managing the bid process.
Invitations to Bid (IFBs) are the documents used in a formal bid process. The procedures listed below will be used for the creation of an Invitation for Bid (IFB).
Create a legal advertisement inviting qualified firms to bid on the specified goods and/or services. The ad is placed in a newspaper of major circulation and, where
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feasible, additional ads may be placed in newspapers whose circulation targets specific ethnic, racial, gender or professional groups.
In the case of services covered by a group of pre-qualified contractors a legal advertisement was issued at the beginning of the pre-qualification process therefore an additional legal advertisement is not required.
The IFB with detailed specifications along with relevant terms and conditions are prepared by the Procurement Department and made available to potential bidders. Bidders may receive these documents by picking up a hard copy from CEDA’s central office, obtaining a copy from CEDA’s website or receiving a copy from the Procurement Department via email.
Solicitation documents or notices of solicitations may also be sent directly to minority and women business assist agencies, professional organizations, chambers of commerce or other groups that may be interested submitting a bid.
The bid document shall clearly identify the date and time that the bid is due and the location to which the bid must be delivered, the date and time of any pre-bid meetings and the specifications for the goods or services that will be purchased.
Bids must be submitted to the Procurement Department on the specified date and time.
Bids will be opened in a public opening. The bidders name and prices are read aloud and recorded.
After the bid opening, Procurement Department checks contractor bids for math errors, and creates a bid summary that lists contractor name, price and compliance with submittal requirements.
The Procurement Department will provide the user department copies of bid summaries and/ or bid documents for their review along with its analysis of the bids and recommendation of award.
If after discussion, the Procurement Department and User Department, cannot agree on an award decision the decision must be present to President and Chief Executive Officer who will make the final decision.
5.2.5 Submission of Bids
To be considered for contract award, a bid must be responsive – that is, it must comply in all material respects with the IFB. Such compliance enables bidders to stand on an equal footing. It also maintains the integrity of the sealed bidding process. CEDA will not consider facsimile bids or bids submitted by electronic mail. Bids should be filled completed, executed, and submitted in accordance with the instructions in the IFB. Bidders must submit their bids so that they will be
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received in the office designated in the IFB not later than the exact date and time set for opening of bids.
Bidders must submit sealed bids to be opened at the time and place stated in the IFB solicitation for the public opening of bids. After that specified date and time, no further bids will be accepted. The accepted bids will be opened and read aloud at the specified date, time and place.
5.2.6 Modification and Withdrawal of Bids
Bids may be modified or withdrawn by any method authorized by the solicitation, if notice is received not later than the exact time set for opening of bids. A bid may be withdrawn in person by a bidder or its authorized representative if, before the exact time set for opening of bids, the identity of the person requesting withdrawal is established and that person signs a receipt for the bid.
5.2.7 Opening of Bids
All bids (including modifications) received before the time set for the opening of bids shall be kept secure. The bids shall not be opened or viewed and shall remain in a secured area. If an IFB is cancelled, bids shall be returned to the bidders.
Envelopes or boxes marked as bids but not identifying the bidder or the solicitation may be opened solely for the purpose of identification, and then only by a CEDA employee designated for this purpose. If a sealed bid is opened by mistake (e.g., because it is not marked as being a bid), the envelope shall be signed by the opener, whose position shall also be written on it, and delivered to the designated CEDA employee. This designated employee shall immediately write on the envelope or box (1) an explanation of the opening, (2) the date and time opened, and (3) the ITB’s number, and shall sign the envelope or box. The designated employee shall then immediately reseal the envelope or box. When the time set for opening bids has arrived, the Procurement Manager or their designee shall (1) personally and publicly open all bids received before that time, (2) read the bids aloud to the persons present, and (3) if practical, have the bids recorded. The original of each bid shall be carefully safeguarded, particularly until the abstract of bids has been made and its accuracy verified. The Procurement Manager may delegate performance of this procedure to a designee so long as the Procurement Manager remains fully responsible for the actions of the designee. Examination of bids by interested persons shall be permitted if it does not interfere unduly with the conduct of CEDA business. Original bids shall not be allowed to pass out of the hands of the Procurement Manager unless a duplicate bid is not available for public inspection. The original bid may be examined by the public only under the immediate supervision of a CEDA employee and under conditions that preclude possibility of a substitution, addition, deletion, or alteration in the bid.
5.2.8 Rejection of all Bids after Bid Opening Preservation of the integrity of the competitive bid process dictates that, after bids have been opened, award must be made to the lowest responsive and responsible bidder who submitted a bid, unless there is a reason to reject all bids and cancel the IFB.
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Every effort shall be made to anticipate changes in a requirement before the date of opening and to notify all prospective bidders of any resulting modification or cancellation. This will permit bidders to change their bids and prevent unnecessary exposure of bid prices.
When it is determined before award but after opening that the IFB requirements have not been met, the IFB can be cancelled. The IFB may be cancelled and all bids rejected before award but after opening when the Procurement Department determines in writing that:
1. Inadequate or ambiguous specifications were cited in the IFB; or
2. Specifications have been revised so significantly that a new IFB is in order; or
3. The supplies or services being contracted for are no longer required; or
4. The IFB did not provide for consideration of all factors of cost to the CEDA; or
5. The needs of CEDA can be satisfied by a less expensive article differing from which the bids were invited; or
6. All otherwise acceptable bids received are at unreasonable prices and exceed the User department’s estimated costs, and the user department determines that the bids appear to be excessive, or only one bid is received and Procurement Manager cannot determine the reasonableness of the bid price; or
7. The bids were not independently arrived at in open competition, were collusive, or were submitted in bad faith; or
8. No responsive bid has been received from a responsible bidder; or
9. A cost comparison indicates that performance by CEDA employees is more economically feasible; or
10. For other reasons, cancellation is clearly in the CEDA’s best interest.
Should administrative difficulties be encountered after bid opening that may delay contract award beyond bidders’ acceptance periods, the lowest bidder should be requested, before expiration of its bid, to extend in writing the bid acceptance period (with consent of sureties, if any) in order to avoid the need for re-soliciting. If the low bidder refuses to do so, all bids must be rejected and the bid re-advertised.
5.2.9 Rejections of Bids after Bid Evaluation
A bid that fails to conform to the essential requirements of the IFB shall be rejected.
A bid that fails to conform to the delivery schedule or permissible alternates stated in the ITB shall be rejected.
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A bid shall be rejected when the bidder makes exceptions or imposes conditions that would modify requirements of the IFB or limit the bidder’s liability to the CEDA, since to allow the bidder to impose such conditions would be prejudicial to other bidders.
A low bidder may be requested to delete objectionable conditions from a bid provided the conditions do not concern the substance – as distinguished from the form – of the bid, or work an injustice on other bidders. A condition concerns the substance of a bid where it affects price, quantity, quality, or delivery of the items offered.
A bid may be rejected if the prices for any line items or sub-line items are materially unbalanced.
Bids received from any person or concern that is suspended, debarred, proposed for debarment or declared ineligible as of the bid opening date shall be rejected unless a user department director can make a justification that such a bid should not be rejected.
Low bids received from bidders determined to be not responsible shall be rejected. When a bid bond or guarantee is required and a bidder fails to furnish the bond or guarantee in accordance with the requirements of the IFB, the bid shall be rejected.
The originals of all rejected bids, and any written findings with respect to such rejections, shall be preserved with the papers relating to the acquisition.
After submitting a bid, if all of a bidder’s assets or those parts related to the bid are transferred during the period between the bid opening and the award, the transferee may not be able to take over the bid. Accordingly, the Procurement Manager shall reject the bid unless the transfer is effected by merger or operation of law.
5.2.10 Minor Informalities or Irregularities in Bids
A minor informality or irregularity is one that is merely a matter of form and not of substance. It also pertains to some immaterial defect in a bid or variation of a bid from the exact requirements of the IFB that can be corrected or waived without being prejudicial to other bidders. The defect or variation is immaterial when the effect on price, quantity, quality, or delivery is negligible when contrasted with the total cost or scope of the supplies or services being acquired. The Procurement Manager may either give the bidder an opportunity to cure any deficiency resulting from a minor informality or irregularity in a bid or waive the deficiency, whichever is to the advantage of CEDA. 5.2.11 Evaluation of Formal Bids In the evaluation of a formal bid the Procurement Department must insure that the lowest responsive and responsible bidder is selected. The Procurement Department utilizes the following steps to insure that the lowest responsive and responsible bidder is selected:
The Procurement Department shall open all bids. Bids are reviewed using any or all of the following steps:
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Check bids for clerical errors
Compares the products or services offered with those requested in the specification to determine if they are the same or an approved equal
Prepare a spread sheet of the bid submittal requirements that lists whether these items were included in the submittal
Reviews bidder submittals to insure that bidders meet the minimum requirements specified in the bid
Prepare a spread sheet of the bid prices of all bidders
Analyze the range of bids submitted to determine if there are extreme low bids which may suggest ”low-balling” or “bid rigging”.
Check references and other sources for evidence of past performance, experience, compliance with municipal requirements.
Where necessary, additional evaluation measures may be utilized to determine the responsibility and responsiveness of bidders.
Unless the solicitation provides otherwise, a bid may be responsive notwithstanding that the bidder specifies that award will be accepted only on all, or a specified group, of the items. Bidders shall not be permitted to withdraw or modify “all or none” qualifications after bid opening since such qualifications are substantive and affect the rights of other bidders. 5.2.12 Bid Rigging CEDA promotes fair competition amongst bidders’ and is proactive in its enforcement against bid rigging. Contractors risk termination and being prohibited from bidding on future CEDA projects if it is determined they are engaging in Bid Rigging.
5.3 Competitive Proposals The procurement by competitive proposals is normally conducted with more than one source submitting and offer, and either a fixed price or cost-reimbursement type contract is awarded. It is generally used when conditions are not appropriate for the use of sealed bids. The document used for this is solicitation is a Request for Proposal (RFP) or a Request for Qualifications (RFQ). Competitive proposals can be solicited in a one, two or three step process depending on the type of procurement method selected. If selected based on the below requirements, Competitive proposal procedures will be used for services that exceed the Simplified Acquisition Threshold of $150,000. If the competitive proposal method is used, the following requirements apply:
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Requests for proposals must be publicized and identify all evaluation factors and their relative importance. Any response to publicized Requests for Proposals must be considered to the maximum extent practical
Proposals must be solicited from an adequate number of qualified sources
There must be a written method for conducting technical evaluations of the proposals received and for selecting recipients
Contracts must be awarded to the responsible contractor whose proposal is most advantageous to the program, with price and other factors considered
Competitive proposals may be used for qualification based procurement of architectural/engineering (A/V) professional services whereby competitors’ qualifications are evaluated and the most qualified competitor is selected, subject to negotiation of fair and reasonable compensation. The method, where price is not used as a selection factor, can only be used in procurement of A/V professional services. It cannot be used to purchase other types of services though A/V firms are a potential source to perform the proposed effort.
Requests for Proposals (RFPs) or Requests for Qualifications (RFQs) will be publicized using the same method outlined for competitive bids. The Procurement Manager selects to issue a RFP/Q when services must be rendered and the qualifications and methodology of the contractor are major determining factors in the contractor selection. Though important, price is not the sole determinant in the contractor selection process resulting from a RFP. The Procurement Department, in tandem with the user department, will develop solicitation documents that contain instructions on date and time of document submittal, pre-proposal conference (if any), and submittal of questions. Competitive proposal documents must include a detailed listing of the services, performance measures and deliverables that are required. In addition, they must include the criteria on which the proposals will be evaluated. RFQ/Ps will be opened in a non-public opening in the Procurement Department unless otherwise directed by the funding source regulations. Awards will be made to the responsible contractor whose proposal, at the sole determination of CEDA, is the most advantageous to the Agency, when price and all other factors are considered. Once proposals are opened, the Procurement Department will perform any or all of the steps listed below:
Compare the services offered with those requested in the specification to determine if they are the same as the requested services
Prepare a spread sheet of the submittal requirements that lists required items that were included in the submittal
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Reviews contractor submittals to insure that the contractors meet the minimum requirements specified in the RFP
Prepare a spread sheet of the pricing structure of all contractors, if applicable
Check references and other sources for evidence of past performance, experience and implementation plans
Facilitate the selection of an evaluation team
Develop an evaluation tool which the evaluation committee may use as a guide to insure that the rationale for the decision is documented and objective
Prepare minutes of all meetings and collect sign in sheets from meetings
Maintain official Procurement records.
5.3.1 Pre-Qualified lists
CEDA will ensure that all pre-qualified lists of persons, contractors, or products which are used in acquiring goods and services are current and include enough qualified resources to ensure maximum open and free competition. CEDA will not preclude potential contractors from qualifying during the solicitation period
5.3.2 The RFP Process When conducting a solicitation by RFP, the user department must specify all of the factors, including price, which it will consider in determining which proposal is the best value to CEDA. Objective and measurable criteria may be used to evaluate and select contractors. The element of cost should always be a significant consideration when evaluating proposals. The RFP process is complex and may take longer than a simple competitive bid selection. Generally, the RFP process includes the following steps:
User department director identifies a leader for the solicitation
User department develop the Statement of Work (“SOW”), also referred to as the Scope of Services, which contains the technical specifications or requirements, deliverables and performance requirements of the goods and services to be procured
Procurement Department prepares the RFP document
Public advertisement of RFP
Submission of written proposals
Evaluation of written proposals by CEDA
Selection of two or more contractors evaluated as highly qualified or qualified to provide the requested services
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Oral presentations from selected contractors (optional)
Invitation to selected contractors to make best and final offer
Evaluation of best and final offers
Contract negotiations with one or more parties whose best and final offers are selected
Final selection of contractor
Present to the Board of Directors for approval
Award the contract
Prepare and execute an agreement with the contractor
5.3.3 Evaluation of Requests for Proposals RFP evaluation is an assessment of the proposal and of the contractor’s ability to perform the prospective contract successfully. The evaluation committee reviews the RFPs and then assesses their relative qualities solely on the factors and sub-factors specified in the RFP. Evaluations may be conducted using any rating method or combination of methods, including numerical weights, or rankings. The relevant strengths, deficiencies, significant weaknesses, and risks supporting a contractor’s evaluation are documented on the RFP evaluation matrix.
The evaluation process for RFPs/Qs is described in detail in Section 6 – EVALUATIONS in this manual.
5.4 Solicitation Procedures - Informal
This section provides the procedures for obtaining informal bids or quotations for the purchase of goods and services. The informal solicitation procedures for maintenance and repairs services are provided in Section 9 – FACILITIES, in this manual.
5.4.1 Informal Solicitation Procedure
Informal solicitation procedures will be used for Micro-purchases, and Small purchases.
Micro-purchases
Procurement by micro-purchase is the acquisition of supplies or services, the aggregate dollar
amount of which does not exceed $3,000. To the extent practicable, CEDA will distribute micro-
purchases equitably amount qualified contractors. Micro-purchases may be awarded without
soliciting competitive quotations if CEDA considers the price to be reasonable. CEDA will use
telephone solicitation procedures for micro-purchases.
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Telephone Solicitations
Solicitations resulting in expenditures in the aggregate less than $3,000 for the program fiscal year can be purchased through informal telephone solicitation.
The User department, with prior permission from the Procurement Department, or the Procurement Department will contact one to three contractors.
CEDA will provide a description of the items, the quantity needed and time frame required. The contractor will provide verbal quotes via telephone. Once provided, the quotes will be noted by the Procurement Department and the lowest contactor by price will be selected. User departments and the Procurement Department are encouraged to keep a log of verbal quotes.
The Procurement Department will contact the user department for concurrence and then instructs the users to enter a purchase requisition in the Financial Edge using the selected contractor.
Where user department is permitted to obtain informal quotes, the user department must inform the Procurement Department of the quotes received and the quote that they wish to accept. Once the Procurement Department concurs, user department may enter a purchase requisition using that contractor.
Small purchases
Procurement by small purchases is the acquisition of supplies, services, or other property with the aggregate dollar above micro-purchases that do not cost more than $150,000. If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources. CEDA will use written quotation solicitation procedures for small purchases.
Written Quotations
Purchases of goods or services for amounts from $3,000 to $150,000 must be obtained from written quotations provided by the contractors.
Contractor quotes must be obtained by the Procurement Department only, unless prior authorization is given by the Procurement staff.
The Procurement Department can request quotes using a variety of methods they include but are not limited to:
Quote Form entitled Request for Quotes which is a one-page specification document.
Identifying contractors from the internet and obtaining quotes form the web-site
Requesting by telephone to receive written quotes on the company’s stationery
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Once obtained, the Procurement Department will notify the user department of the apparent lowest, responsive and responsible contractor.
When the user department concurs it will enter purchase requisition using the contractor and pricing on the accepted quotation.
If the user department does not wish to use the apparent lowest, responsive contractor, they will notify the Procurement Department at which time the Procurement Department will evaluate their rationale to insure that procurement policy and funding source guidelines will not be breached.
The Procurement Department will continue in discussion the user department until concurrence is reached. After all efforts are exhausted and the Procurement Department and the User Department cannot agree, the Procurement Department shall seek assistance from the President/CEO in obtaining consensus.
5.4.2 Authorization to Obtain Price Quotations User departments are not authorized to obtained quotes from contractors for supplies or services without the approval of the Procurement Department. The only exception to this policy is when it is necessary to obtain one-time speakers, teachers for classes of short duration and in-service- training instructors. In these cases a user departments may obtain quotes and develop agreements for one time professional services whose dollar amount is under $3,000.
5.4.3 Non-Competitive Procurement Procurement by non-competitive proposals is procurement through solicitation of a proposal from only one source and may be used only when one or more of the following circumstances apply:
The item is available only from a single source
The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation
The Federal awarding agency or pass-through entity expressly authorizes non-competitive proposals in response to a written request, or
After solicitation a number of sources, competition is determined inadequate. It is the policy of CEDA to permit non-competitive procurement in specific circumstances. The Procurement Department must be notified of a non-competitive procurement prior to user department staff making either a verbal or written commitment to order goods or services. The following situations are acceptable for non-competitive procurement:
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Emergencies - Emergency repair services due to breakdowns, vandalism, loss of heat or power or other situations that affect the health and safety of CEDA employees or its clients, can be made by contractors that are selected without competition. It is expected that contractors will be qualified to make the repair and that pricing will be reasonable.
Sole Source Procurements - This type of purchase is most often used to obtain professional services. A sole source contract can be awarded when funding sources permit and CEDA concludes that there is a single source of expertise or knowledge required or that one person can clearly perform the required tasks more satisfactorily because of the person’s prior work, experience or technical knowledge not usually found in the marketplace. All requirements of the funding source including prior or post notification and justification for the award of the sole source contracts must be met. A Sole Source Justification Form must be completed and accompanied by a supporting documentation. (Exhibit 10)
Utilities – Water, Electricity, Natural Gas available from a single market place.
Unsuccessful Competitive Bid or RFP – From time to time a competitive bid or RFP may not yield a contract award. This may be due to no responses to the solicitation; the industry does not do business in this way or other reasons; bids were rejected due to problems with the proposal. When in the sole opinion of CEDA it is in the best interest of the agency to negotiate a contract after a failed Bid or RFP, CEDA may do so without additional competition. CEDA may also negotiate with competitors to obtain an award.
5.4.4 Cooperative Purchasing Agreements
Cooperative purchasing, also referred to as joint purchasing, is the effort to promote cost –effective use of shared services by entering into intergovernmental agreements with other agencies for shared goods or services, or the use of another agency’s contracts whereby the agency has completed the selection and award of a Contractor through a competitive process. User departments are encouraged to use cooperative purchasing agreements when available. CEDA is an authorized participant in the State of Illinois Joint Purchasing Program and utilizes contracts negotiated by the State of Illinois where economically advantageous. Contractors participating in the State program have been selected via competition, and pricing is based on the large procurement volumes generated by the State of Illinois. Although CEDA may obtain further competition by obtaining multiple quotations from contractors participating in this program, it is not required. CEDA also utilizes cooperative purchasing agreements through the Back Office Cooperative (BOC), National Institute of Governmental Purchasing (NIGP), and the National Joint Powers Alliance (NJPA). SECTION 6 EVALUATIONS
CEDA is the sole determinant of the size and composition of the evaluation team. The evaluation team will review the responsive proposals and recommend the proposer that, as result of their review, best meets the requirements of the evaluation criteria.
An evaluation team, at a minimum will consist of a user Department representative and a representative of the Procurement Department.
Most formal teams include several representatives from the user Department, representation from the Finance Department and other interested CEDA staff
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An evaluation team may at the discretion of Executive staff have Executive staff as members.
An evaluation team may also have two tiers with the first tier being staff from the user Department and other disciplines and composition of the second tier of advisors being management or Executive staff.
6.1 Appointing an Evaluation Committee
When Procurement selects individuals to form an evaluation committee for a particular procurement, he or she should do so with the following general factors in mind:
The relevance of the individual’s education and experience to the subject matter of the solicitation;
The possibility that a superior could directly or indirectly influence the manner in which a subordinate may vote;
The amount of time the individual would potentially be able to dedicate to the task relative to the amount of time needed to complete it; and
The possibility of any conflicts of interest with respect to the individual’s relationship to potential contractors. The individual must have the ability to maintain total impartiality throughout the selection process, as well as to focus on the best interests of CEDA and not merely his or her own Departments or individual perspectives.
6.2 Evaluation Committee Members Serving as a member of an evaluation committee means that an individual will be entrusted with a great deal of responsibility on behalf of CEDA to conscientiously evaluate the submitted proposals within the guidelines identified below. Evaluation committee members are frequently required to devote considerable time reading proposals, meeting to discuss proposals with other evaluators, and engaging contractors in oral discussions. Acceptance of an invitation to serve on an evaluation committee should be construed as a commitment, within reasonable limits, to expend the time necessary to complete the entire process and to perform a thorough evaluation. 6.3 Duties and Responsibilities of Evaluation Committee Members The duties and responsibilities are outlined in the Evaluation Committee Guidelines, (See Exhibit 13). Evaluation committee members must perform their evaluations to the best of their abilities without prejudice or bias. They must keep all information contained in proposals or obtained during the evaluation process confidential, to the extent allowed by law. Furthermore, they must render a fair and impartial evaluation based exclusively upon:
The evaluation criteria contained in the RFP;
The contents of the contractors’ proposal;
Information gained from clarification of proposals;
Oral presentations;
Discussions with contractors; or
Other legitimate sources of reference.
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If, upon receipt of the contractors’ proposals, committee members find that a conflict of interest may exist, they should report it immediately to the procurement officer of record and to the chairperson of the evaluation committee. If a situation arises where it is necessary for a committee member to recuse him or herself, the procurement officer of record will determine if that person must be replaced or if the committee may proceed with the remaining members to complete the evaluation and make a recommendation. 6.4 Committee Meetings Committee members are expected to attend all meetings of the committee. At the first committee meeting a timeline is typically established for the entire evaluation. This should include the number and dates of future meetings, if and when oral presentations will be held, and where the meetings will take place. It is the responsibility of the individual members to arrange their work schedules to allow for full and complete participation. 6.5 Understanding Solicitation Documents Committee members must read the RFP in its entirety and acquaint themselves with the nature of the requested goods or services. If a committee member needs to make notations, he or she must do so directly on the evaluation forms provided. These evaluation forms, with any written comments, become a permanent part of the documentation of the procurement. In some instances these forms – together with evaluator’s notes – may be made available to a protesting contractor or its attorney or to any member of the public who makes a request under the Freedom of Information Act. Therefore, notes should be factual, non-inflammatory and should contain neither offensive nor inappropriate remarks. Any questions should be directed to the procurement officer of record or to the chairperson of the committee. Notes are to be consistent with the final overall ranking of all contractors. There should be a note for each significant area in which a contractor is either weak or strong. Frequently, a new evaluation form will be completed after oral discussions or revised submissions. Although each set of evaluation forms is retained in the permanent procurement file, only the final one should be used for the final evaluation and ranking. 6.6 Evaluation Criteria The evaluation committee will evaluate the proposals received based on the evaluation criteria as provided in the RFP/Q document. The RFP evaluation usually consists of at minimum the following criteria:
1. Experience, Expertise and Qualifications Experience, expertise and qualifications are one indicator of a contractor’s ability to perform a contract successfully. The RFP evaluation committee reviews and determines the relevance of contractors’ experience, expertise and qualifications, including the source of the information, context of the data, and general trends in the contractor’s past performance. The evaluation committee may also take into account past performance information, key personnel who have relevant experience or subcontractors that will perform major or critical aspects of the contract when such information is relevant to the procurement.
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2. Proposed Strategy, Operation or Implementation Plan The proposed strategy, operation or implementation plan reflects those activities and services that are critical to the successful delivery or implementation to address the desired needs of CEDA. The proposed strategy, operation or implementation plan shall provide the detailed attributes – such as project timeline, deliverables, functionality, implementation, software, equipment, training etc. – that thoroughly explain the proposer’s intent or solution to meet CEDA’s overall objectives. This proposed strategy, operation or implementation plan should allow the evaluation team to understand the contractor’s capability and proposed solutions or service level intentions. 3. Cost or price evaluation For a cost or price evaluation, the evaluation committee will conduct a price analysis for comparison of the proposed prices and determine if the price is reasonable and competitive. Though important, price is not the sole determinant in the contractor selection process resulting from a RFP.
6.7 Discussions at Committee Meetings Committee members are encouraged to openly discuss their findings on each proposal at the scheduled evaluation committee meetings. They should also freely discuss factors that might influence their evaluations, such as previous experience with a contractor. Committee members should seek clarification from the procurement officer of record as to whether factors that influenced them are proper to use or might be inappropriate. 6.8 Oral Presentations Potential contractors may provide oral presentations to the committee. The duration of such presentations is predetermined by the committee and all committee members must attend them, if possible. Members should, to the best of their abilities, ask questions regarding parts of proposals needing explanation or clarification or regarding those sections of a proposal that may have deficiencies that the potential vendor could cure. The committee may submit questions to the contractor prior to the oral presentation with the expectation that the questions will be answers in the presentation. 6.9 Committee Recommendation The committee must determine if a technical or financial best and final offer is appropriate for a given solicitation prior to the committee making a recommendation of award. After the best and final offer, if requested, is reviewed the next step is for the committee to make a recommendation of award. With the assistance of the entire committee, the committee chairperson must make a recommendation to the procurement officer of record. This recommendation consists of:
The acceptability or unacceptability of each contractor
The technical and financial ranking of each acceptable contractor;
The combined final ranking of the contractors; and
A detailed rationale explaining why the recommended contractor is the most
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advantageous.
SECTION 7 CONTRACT ADMINISTRATION
The user departments shall have the primary responsibility for the administration of the contract
and the monitoring of contract compliance monthly or at periods specified within the contract.
The user department’s approval of contractor invoices signifies the user Department’s
agreement that the contractor has performed in compliance with the terms, conditions and
specifications of its contract and that specified deliverables have been provided for the invoiced
period. The user Department must also request status reports from the providers of
professional services showing their progress towards the state outcomes.
The user department is responsible for lodging a complaint with the contractor if the contractor
fails to meet the terms, conditions, specifications or required deliverables of its contract,
including but not limited to: failing to deliver on time, provision of an inferior product or service,
establishment of a pattern of poor response time or workmanship.
Contractor performance may be reviewed at any time during the life of the contract. It must be
reviewed at contract completion. At the end of a contract period, departmental contract
administrators must complete the Vendor Evaluation Form (Exhibit 11) in this manual. The
Vendor Evaluation Form should also be completed for a contract of any dollar amount. The
contract administrator must forward this form to Procurement for inclusion in the Contractor file.
(This form should be used in addition to the user department’s internal contract evaluation
process). If this is a problem notification, the Procurement Department will contact the contract
administrator to begin problem resolution.
Each department is fully responsible for documenting any contractor performance problems and
complaints to the contractor by the department and for notifying the Procurement Department of
these problems.
The Procurement Department, when notified, will provide assistance to the department in
monitoring contract performance, and will provide guidance to the Department in their efforts to
evaluate and document contractor performance.
Should problems of contractor performance meet unsuccessful attempts to achieve favorable
resolution Procurement may initiate the punitive actions or sanctions defined in the contract
between CEDA and the contractor. These actions may include contract cancellation and
debarment from participation on future CEDA contracts.
7.1 Contracts
Contracts are binding agreements between CEDA and a contractor. They represent an offer to
provide goods and services and an acceptance of that offer. Contracts include the terms and
conditions under which goods or services will be provided, the responsibilities of the seller and
the buyer and the price that will be paid for those goods or services.
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All contracts shall include a statement that the award is contingent upon continuing availability
of funds from the funding source and should include terms for termination.
7.2 Contract Types
The following contract types can be used to formalize agreements with contractors: fixed price
contracts, cost reimbursable contracts, incentive contracts, memorandums of understanding,
purchase orders, and professional services agreements.. The contract type shall be determined
by Procurement, but must be appropriate for the particular project and for promoting the best
intent of the program involved.
7.2.1 Time and Material Contracts
CEDA may use a time and materials contract only after a determination that no other contract is
suitable and if the contract includes a ceiling price that the contractor exceeds at its own risk.
Time and materials type contract means a contract whose cost to CEDA is the sum of:
The actual cost of materials, and
Direct labor hours charged at fixed hourly rates that reflect wages, general and
administrative expenses, and profit.
With an open-ended contract price, a time and materials type contract provides no positive profit
incentive to the contractor for cost control or labor efficiency. Each contract must set a ceiling
price that the contractor exceeds at its own risk. Further, in awarding such a contract CEDA
must assert a high degree of oversight in order to obtain reasonable assurance that the
contractor is using efficient methods and effective cost controls.
7.3 Contract Provisions
It is the policy of CEDA to include all of the following provisions, as applicable, in all contracts
(including micro –purchases and small purchases where required) with contractors and sub-
grants to grantees:
Equal Employment Opportunity: All contracts shall contain a provision requiring
compliance with Executive Order 11246, “Equal Employment Opportunity,” as
amended by Executive Order 11375, “Amending Executive Order 11246 Relating to
Equal Employment Opportunity,” and as supplemented by regulations at 41 CFR part
60, “Office of Federal Contract Compliance Programs, Equal Employment
Opportunity, and Department of Labor.”
Copeland “Anti-Kickback” Act (18 U.S.C. §874 and 40 U.S.C.§3145 ): All contracts
and sub-grants in excess of $2,000 for construction or repair awarded by CEDA and
its sub-recipients shall contain a provision for compliance with the Copeland “Anti-
Kickback” Act (18 U.S.C.§874), as supplemented by Department of Labor
regulations 29 CFR part 3, “Contractors and Subcontractors on Public Building or
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Public Work Financed in Whole or in Part by Loans or Grants from the United
States.” This Act provides that each contractor or sub-recipient shall be prohibited
from inducing, by any means, any person employed in the construction, completion,
or repair of public work, to give up any part of the compensation to which he or she is
otherwise entitled. It is the policy of CEDA to report all suspected or reported
violations to the Federal awarding agency.
Davis-Bacon Act, as amended (40 U.S.C. §276a to a-7): If included in the federal
agency’s grant program legislation, all construction contracts of more than $2,000
awarded by CEDA and its sub-recipients shall include a provision for compliance
with the Davis-Bacon Act (40 U.S.C. §276a to a-7) and as supplemented by
Department of Labor regulations (29 CFR part 5, “Labor Standards Provisions
Applicable to Contracts Governing Federally Financed and Assisted Construction”).
Under this Act, contractors are required to pay wages to laborers and mechanics at a
rate not less than the minimum wages specified in a wage determination made by
the Secretary of Labor. In addition, contractors shall be required to pay wages not
less than once a week. It is the policy of CEDA to place a copy of the current
prevailing wage determination issued by the Department of Labor in each solicitation
and the award of a contract shall be conditioned upon the acceptance of the wage
determination. CEDA shall also obtain reports from contractors on a weekly basis in
order to monitor compliance with the Davis-Bacon Act. CEDA shall report all
suspected or reported violations to the Federal awarding agency.
Contract Work Hours and Safety Standards Act (40 U.S.C. §§327-333), 45 CFR part
2543.84: All contracts awarded by CEDA in excess of $2,000 for construction
contracts and in excess of $2,500 for other contracts that involve the employment of
mechanics or laborers shall include a provision for compliance with Sections 102 and
107 of the Contract Works Hours and Safety Standards Act (40 U.S.C. §327-333), as
supplemented by Department of Labor regulations (29 CFR part 5). Under Section
102 of the Act, each contractor is required to compute wages of every mechanic and
laborer on the basis of a standard workweek of 40 hours. Work in excess of the
standard workweek is permissible if the worker is compensated at a rate of not less
than 1-1/2 times the basic rate of pay for all hours worked in excess of 40 hours in
the workweek. Section 107 of the Act is applicable to construction work and
provides that no laborer or mechanic shall be required to work in surroundings or
under working conditions that are unsanitary, hazardous, or dangerous. These
requirements do not apply to the purchases of supplies or materials or articles
ordinarily available on the open market, or contracts for transportation or
transmission of intelligence.
Rights to Inventions Made Under a Contract or Agreement: Contracts or agreements
for the performance of experimental, developmental, or research work shall provide
for the rights of the Federal Government and CEDA in any resulting invention in
accordance with 37 CFR part 401, “Rights to Inventions Made by Nonprofit
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Organizations and Small Business Firms Under Government Grants, Contracts and
Cooperative Agreements,” and any implementing regulations issued by the awarding
agency.
Clean Air Act (42 U.S.C. §7401 et seq.) and the Federal Water Pollution Prevention
and Control Act (33 U.S.C. §1251 et seq.), as amended: Contracts and sub-grants of
amounts in excess of $100,000 shall contain a provision that requires the recipient to
agree to comply with all applicable standards, orders or regulations issued pursuant
to the Clean Air Act (42 U.S.C. §7401 et seq.) and the Federal Water Pollution
Prevention and Control Act, as amended (33 U.S.C. §1251 et seq.). Violations shall
be reported to the Federal awarding agency and the Regional Office of the
Environmental Protection Agency (EPA).
Byrd Anti-Lobbying Amendment (31 U.S.C. §1352): For all contracts or sub-grants of
$100,000 or more, CEDA shall obtain from the contractor or sub-grantee a
certification that it will not and has not used Federal appropriated funds to pay any
person or organization for influencing or attempting to influence an officer or
employee of any agency, a member of Congress, officer or employee of Congress,
or an employee of a member of Congress in connection with obtaining any Federal
contract, grant or any other award covered by 31 U.S.C. §1352. Likewise, since each
tier provides such certifications to the tier above it, CEDA shall provide such
certifications in all situations in which it acts as a sub-recipient of a sub-grant of
$100,000 or more.
Debarment and Suspension (Executive Orders 12549 and 12689): For all contracts
in excess of the Simplified Acquisition Threshold in 41 U.S.C. §403(11), CEDA shall
obtain from the contractor a certification that neither the contractor nor any of its
principal employees are listed on the General Services Administration’s List of
Parties Excluded from Federal Procurement or Non-procurement Programs.
Remedies: All contracts in excess of the Simplified Acquision Threshold in 41 U.S.C.
§403(11) shall contain contractual provisions or conditions that allow for
administrative, contractual, or legal remedies in instances in which a contractor
violates or breaches the contract terms.
Termination: All contracts in excess of the Simplified Acquision Threshold in 41
U.S.C. §403(11) shall contain suitable provisions for termination by CEDA, including
the manner by which termination shall be effected and the basis for settlement. In
addition, such contracts shall describe the conditions under which the contract may
be terminated for default as well as conditions where the contract may be terminated
due to circumstances beyond the control of the contractor.
CEDA’s contracts must contain the applicable provisions described in Appendix II to
2 CFR part 200 Contract Provisions for Non-Federal Entity Contracts under Federal
Awards.
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7.4 Contracts in Excess of $150,000
Contracts in excess of $150,000 shall contain contractual provisions that allow for
administrative, contractual and legal remedies, and such remedial actions as may be
appropriate to provide for instances in which contractor violates or breaches the contract terms.
7.5 Construction Projects in Excess of $150,000
For construction or facility improvement contracts or subcontracts exceeding the Simplified
Acquisition Threshold, the Federal awarding agency or pass-through entity may accept the
bonding policy and requirements of CEDA provided that the Federal awarding agency or pass-
through agency has made a determination that the Federal Interest is adequately protected. If
such a determination has not been made, the minimum requirements must be as follows:
A” bid guarantee” from each bidder equivalent to five (5) percent of the bid price.
The “bid guarantee'' shall consist of a firm commitment such as a bid bond, certified
check, or other negotiable instrument accompanying a bid as assurance that the
bidder shall, upon acceptance of his bid, execute such contractual documents as
may be required within the time specified.
A performance bond on the part of the contractor for one hundred (100) percent of
the contract price. A “performance bond'' is one executed in connection with a
contract to secure fulfillment of all the contractor's obligations under such contract.
A payment bond on the part of the contractor for one hundred (100) percent of the
contract price. A “payment bond'' is one executed in connection with a contract to
assure payment as required by statute of all persons supplying labor and material in
the execution of the work provided for in the contract.
Bonds shall be obtained from companies holding certificates of authority as
acceptable sureties pursuant to 31 CFR part 223, “Surety Companies Doing
Business with the United States.''
CEDA at its sole discretion, when it considers it to be in the best interest of the agency, may
include the above listed terms, conditions or clauses in any bid or Request for Proposal
document regardless of the anticipated value of the contract that will ensue.
7.6 Negotiated Contracts
It is the policy of CEDA that all negotiated contracts, funded by the Dept. of Health and Human
Services, of $150,000 or more shall include a provision to the effect that CEDA, the HHS
awarding agency, the U.S. Controller General, or any of their duly authorized representatives,
shall have access to any books, documents, papers and records of the contractor which are
directly pertinent to a specific program for the purpose of making audits, examinations, excerpts
and transcriptions.
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7.7 Purchase Orders as Contracts
A purchase order (PO) is the agreement between CEDA and the contractor, for the purchase of
goods, where one delivery is anticipated, or where there are reoccurring non-professional
services (i.e. garbage pick-up). ). It can be issued in the case of Facilities work when a more
extensive contract is not needed or in the case of an emergency purchase. For these
purchases, the PO represents the entire agreement. In such cases, Procurement is responsible
for determining that required competition has been satisfied and performance requirements are
simply stated.
A purchase order is also issued after a contract or written agreement has been executed.
Where the dollar value exceeds $10,000, a formal written agreement must be executed prior to
the issuance of a Purchase Order. Where a written agreement exists, the purchase order
functions as:
An authorization to proceed with the work or the shipment of goods
A verification of the availability of funds
A verification of delivery or performance instructions
Verification, by the Procurement Department, that competitive requirements have
been satisfied
Documentation of the date of initial order
Documentation of the date that the item(s) or service(s) are needed
7.8 Procedures for Developing Contracts Contracts or agreements are issued by the Procurement Department once a lowest responsive and responsible bidder or a qualified proposer is identified. All contracts must include both the offer by CEDA and the acceptance by the contractor. In addition, contracts must define the consideration (what is being done for what dollar amount); the mutual obligation of the agency and the vendor; the legality of purpose; the terms and performance standards, the legal right of the parties to enter into the agreement and the basis for termination.
Once these purchases have been subjected to competition and a low bidder or successful proposer is identified, the Procurement Department will begin the development of a contract between that contractor and CEDA. The basis of the contract is the vendor’s response to the scope of work outlined in the bid or proposal and any additional requirements of the user department.
The Procurement Department will use contract format included in Exhibit 2 and it will incorporate the scope of services, and the contractor’s cost proposal into the Agreement. The user department will be asked to review the agreement by the Procurement staff. Once a user approves the contract draft, two copies will be forwarded to the contractor for signature. Contractor will return both copies to the Procurement Department. It will then attach the
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Contract Sign-Off Form (Exhibit 3) and will manage contract routing. When all CEDA signatures have been obtained, the Procurement Department will assign the contract a number and keep the original on file. A copy will be returned to the user department and to the contractor after which the contractor can begin work. Where a large amount of contracts must be executed at one time, the Procurement and user departments may agree that the user Department should handle various parts of the contract routing and signature process.
7.8.1 Service Agreements of $3,000 or Less
An agreement for services whose dollar amount less than $3,000 for the total contract period
may be initiated by the user department or procurement. This type of agreement is used when
it is necessary to define the performance standards for a consultant engagement of short
duration, examples of which include:
One- time training
Seminar speakers
Persons teaching classes for CEDA of short duration
Small dollar amount service agreements i.e. garbage pick-up, grease trap cleaning etc.
Such agreements must be fixed price contracts and care must be taken to insure that there are
no hidden fees or provisions that will cause the cost of the services to exceed the $3,000
maximum. The President / Chief Executive Officer must execute these agreements. User
departments may initiate these agreements and obtain signatures from the contractor.
Agreements must then be forwarded to Procurement to obtain review, approval and routing.
The Procurement Department, after assigning a contract number, will forward copies to the user
department and to the contractor.
7.8.2 Vendor Contract Form
Although CEDA prefers to use its own contract form, occasionally it is more expedient to use the
contract document submitted by the Contractor. Examples of such cases include but are not
limited to, agreements with; hotels, restaurants or exhibition centers, software companies, and
others. In such cases the Procurement Department must review carefully the contract terms
and conditions including indemnity clauses and insurance provisions, to insure that they provide
adequate protections to the Agency. Where necessary, Procurement will ask legal counsel to
review the documents for interpretation of clause, protection of CEDA or general legality.
7.9 Contract Tracking/Monitoring The Contracts Manager or their designee shall assign a contract number/outline agreement to each contract and maintain tracking and monitoring information for individual tracking purposes as required herein. The Contracts Manager, as defined herein, will monitor the contract, respectively, for the purpose of contract administration as determined by the Procurement department. The Contracts Manager will review termination dates sufficiently in advance to
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determine whether implementation will be timely and to determine appropriate steps in the event of untimely completion. 7.10 Contract Execution and Term The contract is not effective until it is signed by all the parties. The term specified in the solicitation will establish the basis for the time for performance of the contract. A start and completion date shall be specified in the contract, subject to additional time extensions and other termination provisions authorized by the Procurement Department. Original contracts shall be prepared and executed by the parties. The Contracts Manager maintains one original copy for CEDA. An electronic copy of the fully executed contract will be sent to the user Department. CEDA must maintain records sufficient to detail the history of the procurement. These records will include, but are not limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. The Contracts Manager will maintain a file for each contract. The file will include the following:
Copy of the contract with all amendments; modifications; add-delete; letters/change-orders; exhibits;
Updated insurance certificates, copies of bonds
Diary of the progress of the work, services, or product procured;
Inspection and monitoring reports;
Implementation records as applicable;
Commitments for supply and services contracts;
Copies of correspondence and
Notices to the contractor, and any other pertinent and relevant documentation (e.g., M/WBE certification).
In addition, for each contract, the Contracts Manager will perform a full contract compliance assessment regarding equal employment opportunity, discrimination, prevailing wage and fair labor standard compliance. 7.11 Time Extensions The contractor is responsible for completing the work within the time established by the contract. Time extensions will be considered only if the contractor requests an extension from the Contracts Manager, in writing, within a reasonable time prior to the time before the contract expires and if the contract allows. The written request will clearly state the cause for the delay and offer facts supporting justification and verification of the cause stated. The Contracts Manager shall review the request, stated justification, supporting facts and verification submitted by the contractor for the delay. If the contractor’s documentation appears to be acceptable and verifiable, the Contracts Manager shall promptly prepare a letter to the contractor
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acknowledging receipt of the request and stating that the request is under review and consideration. The Contracts Manager shall prepare a finding of facts and recommendation to be submitted within three working days to the user department director or designee for review and consideration as to whether the time extension will be granted. 7.11.1 Approval/Disapproval of Extension If the time extension is authorized by the user department, a memorandum shall be submitted to the Purchasing Department requesting to extend time as per established provision in contract or extend time via amendment to the contract. No term extensions shall exceed the term established in the contract without a contract amendment. All time extensions to the contract will be approved in writing and must be completed in advance of the time for termination of the contract. If the time extension is not authorized, the Contracts Manager will communicate the disapproval in writing to the contractor prior to contract expiration date. The contractor will remain obligated to complete the work within the original contract term. 7.12 Contract Modification Process The user department shall provide a written recommendation for review of any proposed contract modifications before proceeding with requesting the Purchasing Department to issue a change order. The recommendations shall include all documentation, justification, and verification as provided by these provisions. The user department director must approve the negotiation of the modifications prior to the Contracts Manager engaging in such negotiations. The Contracts Manager shall negotiate the proposed modification within the parameters established by the user department director. No amendment is effective until approved by the user department director and communicated in writing to the contractor. 7.13 Written Authorization Required All contracts must be modified in writing by Change Order or a bilateral Contract Amendment, prior to performance of the work that is the subject of the modification. Neither the Contracts Manager nor any other CEDA employee is authorized to modify or enter contracts verbally. Contract modifications must be fully documented in the contract file. The Contracts Manager must maintain full documentation of any changes to the contract. 7.14 Federal Awarding Agency of Pass-Through Entity Review CEDA will make available, upon request of the Federal awarding agency or pass-through entity, technical specifications on proposed procurements where the Federal awarding agency or pass-through entity believes such review is needed to ensure that the item or service specified is the one being proposed for acquisition. This review general will take place prior to the time the specification is incorporated into a solicitation document. However, if the CEDA desires to have the review accomplished after a solicitation has been developed, the Federal awarding agency or pass-through entity may still review the specifications, with such review usually limited to the technical aspects of the proposed purchase.
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CEDA will make available upon request, for the Federal awarding agency or pass-through entity pre-procurement review, procurement documents, such as Requests for Proposals or Invitation for Bid, or independent cost estimates, when:
CEDA’s procurement procedures or operation fails to comply with the procurement standards in the federal regulations
The procurement is expected to exceed the Simplified Acquisition Threshold and is to be awarded without competition or only one bid or offer is received in response to a solicitation
The procurement which is expected to exceed the Simplified Acquisition Threshold, specifies a “brand name” product
The proposed contract is more than the Simplified Acquisition Threshold and is to be awarded to other than the apparent low bidder under a sealed bid procurement
A proposed contract modification changes the scope of the contract or increases the contract amount by more than the Simplified Acquisition Threshold
CEDA is exempt from the pre-procurement review if the Federal awarding agency or pass-through entity determines that its procurement systems comply with the standards of the federal regulations. CEDA may request that its procurement system be reviewed by the Federal awarding agency or pass-through entity to determine whether its system meets these standards in order for its system to be certified. Generally, these reviews must occur where there is a continuous high-dollar funding, and third party contracts are awarded on a regular basis. CEDA may self-certify its procurement system. Such self-certification will not limit the Federal awarding agency or pass-through entity’s right to survey the system. Under a self-certification procedure, the Federal awarding agency or pass-through entity may rely on written assurances from CEDA that it is complying with federal regulations. CEDA will cite specific policies, procedures, regulations or standards as being in compliance with these requirements and have its system available for review.
SECTION 8 SOURCING PROCEDURES AND MARKET EVALUATION
When adequate contractor’s lists are not available and use of pre-qualified contractors is not
required, the Procurement Department must seek new sources of contractors. In such cases,
the Procurement Department will take the following steps prior to the issuance of the solicitation
document:
Contact trade or professional associations asking them (1) to identify any individuals that
they are aware of that may wish to bid on the solicitation and (2) to post solicitation when
it is provided on web site, or in professional journals or newsletters.
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Contact agencies or organizations specializing in identifying specific type of contractors,
i.e. minority, female, disadvantaged etc.
Review telephone business listings and internet listings to identify companies in the
targeted commodity or service group.
Contact Municipal, State, County, or Federal procurement departments to request that
they share their bidders list in the targeted commodity or service.
Host an outreach event to inform that commodity or service group of the upcoming
solicitation.
Once the solicitation is issued, Pre-Bid or Pre-Proposal conferences are also used to encourage
companies to bid, by insuring that they fully understand the requirements listed in the solicitation
documents.
Procurement staff must also keep abreast of the market place through updating their information
with trade journals and magazines, procurement magazines and reviewing relevant industry
indexes.
8.1 Sources of Supply
New contractor sourcing and market awareness is an important part of the Procurement
Department’s function. Competition is required for contacts $3,000 and above therefore it is
important to maximize the opportunity for full and open competition of contractors for CEDA
business opportunities.
8.1.1 Bidders List
The Procurement Department has the responsibility for developing and maintaining a viable
bidders list for all goods and services that it purchases. The Procurement Department when
identifying sources of supply, considers the best interests of the departments it serves and
simultaneously creates and maintains good contractor relations.
Procurement maintains a viable contractors list for the following purposes:
To notify the broadest possible range of qualified bidders for each contract
opportunity including small, minority, women-owned business enterprises, and labor
surplus area firms.
To insure that companies interested in doing business with the Agency receive an
opportunity to compete for that business
To develop and maintain competition and to obtain the quality and quantity of items
needed by a user department under the most favorable terms available
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To buy from the contractors nearest to the point of use, other considerations being
equal
8.1.2 Minority, Women and Small Business Development CEDA wishes to provide maximum opportunity to all qualified and certified minority business
enterprises (MBEs), women business enterprises (WBEs), disadvantaged business enterprises
(DBEs), small businesses and labor surplus area firms to participate fully in the provision of
goods and services to CEDA. CEDA prohibits discrimination against any person or business in
pursuit of these opportunities on the basis of race, color, national origin, religion, sex, age,
sexual orientation, handicap or veteran status. It is CEDA’s intention to conduct its contracting
and procurement programs so as to prevent such discrimination and to resolve any and all
claims of such discrimination. Positive efforts shall be made by CEDA to utilize small business,
disabled, women and minority owned business, and labor surplus area firms as sources of
supplies and services. Information will be made available to these firms to encourage their
participation in the Agency’s purchasing functions. When contracting for goods and services,
preference will be given to contractors who subcontract with small businesses, disabled,
minority-owned firms and women’s business enterprises. Assistance from the Small Business
Administration and the Minority Business Development Agency will be requested when
necessary for the solicitation and utilization of small business and minority-owned firms and
women’s business enterprises.
Participation levels (if any) of these businesses will be listed in each solicitation. Bidder must clearly specify the levels and percentages of participation in his/her response.
CEDA will take all necessary affirmative steps to assure that minority businesses, women’s
business enterprises, and labor surplus area firms are used when possible. In an effort to
provide the maximum opportunity for participation, affirmative step will include:
Placing qualified small and minority businesses and women’s business enterprises
on solicitation lists
Assuring that small and minority businesses and women’s business enterprises are
solicited whenever they are potential sources
Diving total requirements when economically feasible, into smaller tasks or quantities
to permit maximum participation by small and minority businesses and women’s
business enterprises
Establishing delivery schedules, where the requirement permits, which encourage
participation by small and minority businesses and women’s business enterprises
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Using the services and assistance, as appropriate, of such organizations as the
Small Business Administration and the Minority Business Development Agency of
the Department of Commerce
Requiring the prime contractor, if subcontractors are to be let, to take the affirmative
steps listed in this section
Obtaining listings from Federal, municipal and private certifying agencies of certified
small and minority businesses and women’s business enterprises
Advertising in newspapers targeted to small and minority businesses and women’s
business enterprises
Notifying City, State and Federal and private contractor assistance agencies of the
IFB or RFP/Q opportunity
Participating in business trade shows that showcase small and minority businesses
and women’s business enterprises
8.2 Contractor Pre-Qualification
It is the policy of CEDA to develop and maintain pre-qualified contractor pools when commodity
strategies require it. These pools are lists of contractors that have met CEDA qualifications
standards for the particular commodity group. Pre-qualified contractor pools are utilized to
provide contractors for maintenance and repair work for CEDA sites and facilities. The
purchase of services for these commodity groups is competed only among qualified contractors
within the pool. CEDA invites interested contractors to submit qualification documents no less
than annually, but more often if required. These documents include demographic information,
work history, references, Dun and Bradstreet reports, and certifications or credentials of staff.
Contractors that do not meet the quality standards will not have met the “responsibility” standard
and cannot be considered for the contract award.
SECTION 9 FACILITIES 9.1 Facilities Requests
CEDA Facilities has a pre-qualified contractor pool that was created from contractors
responding to the prequalification RFQ process, which is conducted as needed. For projects
less than $3,000, CEDA Facilities may select a contractor outside of the pre-qualified contractor
pool without competitive quotes. Formal solicitations are not required when using contractors
from the qualified vendor/contractor pool for projects from $3,000 to $150,000 as these
contractors have already been subjected to a formal selection process. For repair projects
valued from $3,000 to $150,000:
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CEDA Facilities contacts the Procurement Department to advise them that quotes
are needed. CEDA Facilities provides procurement staff with the specifications
required for the completion task and recommended contractors from the qualified
contractor pool.
The Procurement Department completes the Quote Form, Exhibit 1, which is a one-
page specification document.
This document is forwarded to a minimum of three contractors from the pre-qualified
contractor pool for pricing price quotations.
Procurement will notify CEDA Facilities of the apparent lowest, responsive and
responsible bidder.
CEDA Facilities, if they concur with the Procurement Department recommendation,
will enter an on line requisition using the contractor and pricing on the accepted
quotation.
Procurement must attach copies of the contractor quotations to the purchase order
issued to the lowest responsive, responsible, bidder. These documents are
maintained in the purchase order file.
Occasionally there are no contractors in the pre-qualified pool that provide a required
service. In this case, quotes are obtained from contractors outside of the pool which
have been sourced by Procurement or Facilities. Non-contractor pool contractors
are encouraged to respond to the next RFQ for contractors so that they will have an
opportunity to respond to every quote in their area of expertise.
If the specification is anticipated to require repair work over $150,000, a formal bid process will
be commenced. CEDA Facilities will use value engineering clauses in contracts for construction
projects over $150,000 to offer reasonable opportunities for cost reductions. Value engineering
is a systematic and creative analysis of each contract item or task to ensure that its essential
function is provided at the overall lower cost.
9.2 Emergency Situations
Emergencies are defined as unexpected events that require immediate attention (i.e. plumbing
failure, utility interruption, board up services, heating or air conditioning failures etc.).
Emergency purchases are situations that negatively impact the health and/or safety of CEDA’s
employees or clients. It should be noted that in emergencies of health and safety the
appropriate authorities should be called immediately, even prior to contacting CEDA. For
example, if there is an odor of gas, the gas company should be immediately contacted or in the
case of a break-in, the police department should be contacted prior to contacting CEDA.
The procedure listed below is used when the urgency of the event requires immediate service.
Emergency situations should be addressed in the following manner:
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User department must contact CEDA Facilities with an assessment of the situation
(i.e. smell of gas, no water, etc.).
The Procurement Department, in conjunction with Facilities and the user department
will select a contractor through soliciting telephone quotes. The contractors’ ability to
respond immediately, past performance and price will determine contractor selection.
CEDA Facilities will instruct user Department to enter a Purchase Requisition for an
estimated amount from $50.01 to $500.01.
A requisition will be entered and approved by the User department. The requisition
will route to a specified member of the procurement staff who will convert it to a
Purchase Order. Procurement will forward the PO to the Facilities Department, and
to the Contractor.
CEDA Facilities will note the job on its work order form and forward the PO to the
contractor.
CEDA Facilities will dispatch the selected contractor to the location and instruct the
contractor to assess the situation, make whatever repairs or adjustments that are
necessary to insure that the situation is made safe for staff and clients. The
contractor must provide pricing if additional parts and repairs are necessary to
restore the area to fully functional working order.
CEDA Facilities remains in contact with the contractor during the course of the repair
until repair completion. If the contractor has determined that additional repair work is
needed the contractor must notify CEDA Facilities. Facilities staff contacts the user
department and apprises them of the price of the emergency repair and the price of
additional repairs. The user department must enter a requisition covering the cost of
the initial repair (if it exceeded the estimate). If the user department determines to
proceed with the recommended repair, their requisition should cover the additional
amount. Instructions should include directions to provide separate invoices for each
service provided that corresponds to each PO issued.
CEDA Facilities will follow-up with the user department to insure that the quality of
the work was satisfactory. On major jobs or complex installations, CEDA Facilities
staff will be on site during work or will inspect the job at completion to insure that the
terms and conditions of the PO are satisfied.
9.3 Prevailing Wages The State of Illinois Prevailing Wage Act applies to the construction of “a public work, including a building, highway, road, excavation, and repair work or other project development or improvement, paid for in whole or in part from public funds, without regard to whether the work is done under public supervision or direction.” It does not apply to maintenance or other work. A contractor who is awarded such a contract and its subcontractors must pay their workers no
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less than the general prevailing wage as determined by the State of Illinois. They may pay a greater amount. The contractor and its subcontractors must keep records demonstrating their compliance. A contractor or subcontractor that violates this mandate is subject to contractual, civil and criminal penalties. The contract must contain the applicable wage rate in order for CEDA to collect penalties in the event of a violation. An officer, agent or representative of CEDA can also be found liable. CEDA must hear complaints from the contractor or subcontractor’s employee and make an initial determination within 31 days of whether good cause exists to believe a violation occurred. If a disagreement persists, the employer and employee must submit the dispute to binding arbitration. CEDA must retain any amount due under the contract pending a final determination of the alleged violation. Various federal statutes providing grants, loans or funds to CEDA incorporate the terms of the federal Davis-Bacon Act which similarly mandates the payment of certain minimum wage levels. If the contract falls under such funding sources then the federal Davis-Bacon wage levels preempt the wage levels set under the state Prevailing Wage Act. Although CEDA may rely on the federal wage levels in determining its own wage levels, it is not required to do so. Careful attention must be given to which wage levels apply. As a part of the terms and conditions of a CEDA contract, prime and subcontractors are required to submit certified payrolls on a weekly basis, to CEDA. The certified payrolls list the workers on the job site, along with title/function in the particular week on the job site and the wages paid to the worker. The CEDA monitors the payrolls and conducts field visits. SECTION 10 CONTRACTOR RELATIONS AND EVALUATION
CEDA employees, officers, and agents shall maintain an objective and professional attitude in
dealing with contractors and potential contractors. CEDA employees, officers, and agents shall
make purchases in the best interests of the agency, its program, and its clients.
Employees must always respect their commitments to contractors and neither express nor imply
performance which they cannot reasonably expect to fulfill. They are expected to be prompt
and business like in their appointments. Recognizing that permanent business relations can be
maintained only in an atmosphere of honesty and fair dealing they must avoid misrepresentation
and sharp or discourteous behavior toward contractors.
Employees must take care to avoid statements tending to injure or discredit a legitimate
competitor, and not to divulge information acquired in confidence with the intent of giving or
receiving an unfair advantage in a competitive business transaction.
10.1 Contractor Evaluation User Departments shall evaluate performance of all contractors at the completion of the contract period. Copies of the evaluation will be forwarded to Procurement. Problems with performance, deliveries, etc. must also be documented throughout the life of the contract. Contractor evaluations will assist in determining contract extensions or provide cause for termination. (See Exhibit 11-Vendor Evaluation Form)
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10.2 Contractor Appeal and Protests CEDA in accordance with good administrative practice and sound business judgement is responsible for the settlement of all contractual and administrative issues arising out of procurements. These issues include, but are not limited to, source evaluation, protests, disputes, and claims. Unsuccessful contractors shall have (5) five calendar days from the date of notification of the contract award to file a written protest with CEDA, through the Procurement Department. The written protest shall include reason(s) for the protest with supporting documentation where appropriate.
Appeal/Protest procedures that are required by federal/state program funding sources shall take precedent where applicable. The President/CEO or her designee shall conduct a review of all information/documents submitted by the contractor, and shall take other steps as deemed necessary for a fair and impartial process of review. The President/CEO will render a final decision, which shall be binding and without additional appeal rights. All Appeal/Protest procedures will be included as part of the IFB, RFP or RFQ documents. All contractors will be required to sign an acknowledgement form of receipt and understanding of the Appeal/Protest procedures, which will accompany each bid or proposal submitted to CEDA.
CEDA can continue to make purchases from the selected contractor pending the outcome of the protest. Such purchases shall be no more than the amount of goods or services necessary to maintain program operations.
10.3 Contractor Debarment
CEDA is subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR Part 180. These regulations restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. In order to ensure the effective and efficient administration of and maintain the integrity of CEDA’s procurement procedures, it is the policy of CEDA to conduct business legally and only with responsible contractors. Toward this end, CEDA shall have the discretion to exclude from participation in its procurement transactions and activities any contractor who is debarred or who appears on any suspended, excluded or debarment list issued by any agency of any Federal, State or local government. Debarment shall be used only in the public interest and for the protection of CEDA, not for purposes of punishment.
Debarment may apply to any contractor, principal of any contractor or an affiliate of any contractor who has participated, is currently participating or may reasonably be expected to participate in a transaction, contract or other relationship with CEDA, irrespective of the source of funding. The President/CEO shall have the authority to debar or suspend a contractor for cause from consideration for award of contracts and from participating in any CEDA contracts as a contractor, sub-contractor, consultant, supplier, or any other role related to a CEDA contract.
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Causes for Debarment
The contractor may be debarred for, including but not limited to, any of the following:
1. Conviction of or Civil Judgment for:
a. commission or attempted commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a private or public contract or subcontract;
b. violation or attempted violation of Federal or State statutes, or any other legally
applicable law, regulation, or rule relating to the submission of bids, proposals, invoices, or claims;
c. commission or attempted commission of embezzlement, theft, forgery, bribery,
falsification or destruction of records, making false statements, tax evasion, or receiving stolen property; or
d. commission or attempted commission of any other offense, or engaging in or
attempting to engage in conduct indicating a lack of truthfulness or honesty, which affects the responsibility of the contractor.
2. Violation of the terms of a contract or subcontract so serious as to justify debarment,
including but not limited to:
a. willful failure to perform in accordance with the terms of one or more contracts or subcontracts;
b. a history of failure to perform one or more contracts or subcontracts;
c. a history of unsatisfactory performance of one or more contracts or subcontracts; or
d. a history of failure to meet goals under CEDA’s Small, Minority and Women-Owned Business Enterprise program (“S/M/WBE”), or to meet its obligations to provide Equal Employment Opportunities, or a drug-free-workplace, or to fulfill any other contracting or subcontracting obligations imposed by CEDA policy, or any other law.
3. Making, causing to be made or attempting to make any false, deceptive, or fraudulent material statement in any bid, proposal, or application for CEDA or any government work, or in the performance of any such contract for CEDA or any governmental unit or agency, or in the application for any permit or license;
4. Making, causing to be made or attempting to make, any false, deceptive, or fraudulent
material statement in any application to obtain, expand, or continue certification as an S/M/WBE;
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5. Engaging or participating in bid-rigging or stringing, or facilitating the bid-rigging or
stringing of any contractor or entity or individual;
6. Failure to cooperate with CEDA in any investigation;
7. Failure to cooperate with reasonable requests of inspectors, representatives, or other personnel with respect to work under contract provisions, plans, or specifications, or otherwise;
8. Founding, establishing or operating an entity in a manner designed to evade the
application or to defeat the purpose of this or any other CEDA Policy or any provision of any federal, state or local statute, ordinance, rule or regulation or any other applicable law, rule or regulation; or
9. Improper conduct, including but not limited to:
a. intentional or negligent billing or invoicing;
b. submitting false, frivolous or exaggerated claims, documents, or records;
c. falsification of claims, documents, or records;
d. willful or grossly negligent destruction of documents or records the contractor had an obligation to maintain;
e. bribery or coercion of a government official, or other unlawful tampering with a government official;
f. use of false or deceptive statements to obtain some benefit, or causing competition to be restrained or limited;
g. misrepresentation to any governmental entity, agency or official;
h. falsely claiming to be a S/M/WBE, falsely claiming to be eligible for any bidding preference or protected market program, or assisting any other individual or entity to make such a false claim;
i. violation of ethical standards established by CEDA, or other dishonesty incident to obtaining, pre-qualifying for, or performing any CEDA contract or modification thereof;
j. violation of ethical standards established by CEDA or other dishonesty incident to applying, obtaining, qualifying for, or acquiring any certification, license, or permit related in any way to a CEDA contract;
k. failing to timely pay any judgment or other adjudicated debt owed to CEDA after a request for payment;
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l. failing to timely pay undisputed bills or invoices submitted by subcontractors;
m. unreasonably disputing bills or invoices submitted by subcontractors;
n. knowingly or negligently involving a temporarily constrained, voluntarily excluded or debarred contactor or other person in a CEDA contract or a related Transaction;
o. violating any provision of a voluntary exclusion agreement or any other settlement of a debarment action between the CEDA and a Contractor or other person;
p. debarment, suspension, voluntary exclusion imposed by any governmental entity or agency;
q. failing to defend, indemnify, or hold CEDA harmless pursuant to a contractual obligation after having received a request to do so; or
r. assisting or facilitating another person in any of the foregoing conduct;
10. A loss or suspension of a license or right to do business or practice a profession, the loss or suspension of which indicates dishonesty, a lack of integrity, or a failure or refusal to perform in accordance with the ethical standards of the business or profession in question;
11. Any other cause that CEDA, in its sole discretion, deems so serious or of such a
compelling nature that it affects the responsibility of the contractor, including facilitating another contractor’s or other person’s violation of any CEDA policy, contract, or any federal, state or local law relating to contracting.
Debarment Procedure
CEDA will issue a Notice of Proposed Debarment to a contractor subject to debarment and any specifically named person. All of the following shall be included in the notice:
1. A statement that the proposed debarment action is being considered by CEDA.
2. A description of the reasons for the proposed debarment in sufficient detail to put the contractor on notice of the conduct and causes upon which the proposed debarment is based.
3. A statement indicating that within 30 days from the date of the notice, the contractor may submit, in writing, any information in opposition to the proposed debarment, including any additional specific information that raises a genuine dispute of material facts or any mitigating circumstances.
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4. Notification that failure to submit a written protest of the proposed debarment within 30 days from the date of the notice, shall be deemed an admission of allegations set forth in the Notice of the Proposed Debarment.
Consequences of Notice of Proposed Debarment
From the date the Notice or Proposed Debarment is issued until a decision is made by CEDA, the following conditions shall apply to the contractor:
1. The contractor may submit bids or proposals on contracts. New contracts may only be
awarded conditionally, and if a contractor is later debarred, the contract(s) may be terminated. The facts underlying a contractor’s proposed debarment and other factors may be considered when evaluating such bids or proposals. When appropriate, contract awards may be delayed to allow CEDA to reach a decision on the debarment.
2. The contractor may continue to perform under any contract not identified in the notice. However, if the contractor is debarred, CEDA may not only terminate all of the contractor’s existing contracts, but also may terminate the contractor’s participation as a subcontractor or supplier.
Debarment Recommendations and Decision
The Procurement Department will review all facts on which the debarment was based including the Notice of Proposed Debarment and the contractor’s protest, if applicable, and make a recommendation to the President/CEO. The decision of the President/CEO, in acting on the recommendation of debarment, shall be final. The contractor will be notified within 60 days of the debarment decision. Voluntary Exclusion Voluntary Exclusion is defined as a status, voluntarily accepted by a contractor as part of a settlement agreement with CEDA, in which the contractor is excluded from participating in CEDA contracts and/or related transactions.
Period of Debarment
The period of debarment may be permanent, and may extend to any and all goods and services the contractor has provided or may in the future seek to provide, or it may be for a stated period of time of not less than 1 year. Periods of debarment may be imposed concurrently or consecutively, in the sole discretion of CEDA.
SECTION 11 TRAINING
The Procurement Department provides training on acceptable procurement methods and
changes to procedures as necessary by participating in the in-service training activities of
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various programs and departments. Also, as Procurement policies and procedures are revised,
staff is advised through email communications.
Also, individual training is provided on Financial Edge when new users are added.
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EXHIBITS
