HomeMy WebLinkAboutRes 2016-36RESOLUTION 2016-36
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, ADOPTING THE TOWN OF FOUNTAIN
HILLS PROCUREMENT POLICY DATED DECEMBER 1, 2016.
BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS as follows:
SECTION 1. The Town of Fountain Hills Procurement Policy dated December 1, 2016
(the "Procurement Policy"), is hereby adopted in substantially the form and substance attached
hereto as Exhibit A.
SECTION 2. If any section, subsection, sentence, clause, phrase or portion of this
Resolution or any part of the Procurement Policy adopted herein by reference is for any reason to
be held invalid or unconstitutional by the decision of any court of competent jurisdiction, such
decision shall not affect the validity of the remaining portions thereof.
SECTION 3. The Mayor, the Town Manager, the Town Clerk and the Town Attorney
are hereby authorized and directed to take all steps and to execute all documents necessary to
carry out the purpose and intent of this Resolution.
PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills,
Arizona, December 1, 2016.
FOR THE TOWN OF FOUNTAIN HILLS:
'4tIV-4 11q e66�7-0�
da M. Kavana h, Mayor
REVIEWED BY:
Grady E. er, Town Manager
2819985.1
ATTESTED TO:
Bevelyn J. Be Toer, n Clerk
An w J. McGuire, Town Attorney
EXHIBIT A
TO
RESOLUTION 2016-36
[Procurement Policy]
See following pages.
2819985.1
Town of Fountain Hills
Procurement Policy
December 1, 2016
1995051.7
Town of Fountain Hills Procurement Policy
Table of Contents
Section 1.
Town of Fountain Hills Policy................................................................................1
Section 2.
Employee Responsibility.........................................................................................
l
Section 3.
General Procurement Provisions..............................................................................
l
Section 4.
Items Not Subject to Competitive Selection Requirements.....................................3
Section 5.
Informal Procurement Methods (Under $50,000) ...................................................3
Section 6.
Formal Procurement Processes ($50,000 or Greater)............................................10
Section 7.
Professional and Construction Services.................................................................13
Section 8.
Construction Projects.............................................................................................13
Section 9.
Pre -Qualification Lists/Register.............................................................................13
Section 10.
Cooperative Procurement.......................................................................................14
Section 11.
Noncompetitive Procurement................................................................................15
Section 12.
Amendments to Solicitations -Addenda................................................................17
Section 13.
Receipt and Opening of Bids, Proposals, and Statements of Qualifications .........18
Section 14
Contract Management and Vendor Payment........................................................18
1995051.7 1
Town of Fountain Hills Procurement Policy
1. Town of Fountain Hills Policy. It is the policy of the Town of Fountain Hills (the
"Town") to promote and facilitate economical and timely acquisitions from sources of
supplies, equipment and services necessary for Town Departments to accomplish their
assigned responsibilities, while ensuring a fair and open process that maximizes
competition. It is the policy of the Town that the acquisition process is carried out in
compliance with the Town Procurement Code, which is set forth in Article 3-3 of the
Fountain Hills Town Code (the "Procurement Code") and ordinances and the
administrative policies and procedures set forth herein (the "Procurement Policy"). The
Town Manager or authorized designee (the "Procurement Agent") is charged with the
responsibility of implementing the Procurement Code and this Procurement Policy.
Capitalized terms used in this Procurement Policy and not otherwise defined shall have
the meaning set forth in the Procurement Code.
2. Employee Responsibility. Each Town Employee involved in the procurement process is
responsible for reviewing, understanding and complying with the Procurement Code,
applicable ordinances and this Procurement Policy. If there are any questions or concerns
relative to either the applicable policies or procedures, or the ability of the Employee to
respond effectively to the requirements of the procedures, then it is the responsibility of
the Employee to bring such matters to the attention of the Town Manager immediately.
Any purchase utilizing Town funds, regardless of dollar amount, must be for a valid
public purpose.
3. General Procurement Provisions.
3.1 Procurement Agent Responsible. The Procurement Agent shall be informed and
involved in all Formal Solicitation discussions and decisions.
3.2 Applicability of Procurement Regulations. All Town purchases and contracts for
goods and services shall be subject to the rules and regulations of the Procurement
Code and this Procurement Policy.
3.3 Competition. All reasonable attempts shall be made to obtain competitive bids or
proposals by appropriate solicitation method, as prescribed in this Procurement
Policy.
3.4 Budget. Purchases shall not be contracted for or made unless sufficient funds
have been budgeted in the year in which the term of the contract commences.
Funds must be re -appropriated for each subsequent year or part of a year within
the term of the contract.
3.5 IT Purchase. Purchase of any technology or communications goods or services
must undergo review and approval of the Network and Information Technology
Administrator.
1995051.7
Town of Fountain Hills Procurement Policy
3.6 Fragmentation Prohibited. There shall be no fragmentation or division of
contracts or purchase orders in order to circumvent the provisions of the
Procurement Code or this Procurement Policy.
3.7 Special Conditions. The Procurement Agent must be notified of any specific
procurement requirements of any grant, gift bequest or cooperative agreement by
the procuring Department.
3.8 Publicity. All reasonable attempts shall be made to promote wide -spread
awareness of anticipated purchases or contract opportunities to applicable
vendors, contractors and suppliers.
3.9 Multi -department Contracts. When it is advantageous to the Town, Town -wide
contracts should be initiated for use by one or multiple Town Departments for
those services or supplies routinely purchased.
3.10 Town Attorney Preparation. All contracts are to be drawn under the supervision
of the Town Attorney.
3.11 Town Attorney Review. Contracts for services and labor require review by the
Town Attorney, regardless of dollar amount. Procurement of commodities by
Open Market Purchase may be made without additional Town Attorney review so
long as the vendor executes a purchase order containing the standard terms and
conditions prepared by the Town Attorney.
3.12 On-going Contracts. The Town shall fully justify and directly negotiate a
reasonable price for the services for instances in which either (A) maintenance,
support or membership is required and there is no possibility of price competition;
or (B) continuity of services is deemed in the best interest of the Town and
continuity cannot be ensured with a competitive process.
3.13 Revenue Contracts. Generally, a competitive process shall be used to solicit
offers from interested parties for no -cost or revenue-producing arrangements.
3.14 Department Monitoring. Contracts shall be monitored by the requesting
Department for compliance, which Department shall be responsible for expiration
and renewal requirements. Departments shall ensure that fully executed copies of
their respective contracts, including all amendments, bonds and certificates of
insurance, are on file with the Town Clerk.
3.15 Trials; Demonstrations. Vendor demonstrations, free trials or testing of products
or services shall require a vendor's signed Statement of Vendor Understanding
(Form FHPP3.15) with approval from the requesting Department director.
Demonstration or trials of products with an estimated purchase price exceeding
$5,000 must be approved by the Town Manager. The Town shall not be obligated
1995051.7 2
Town of Fountain Hills Procurement Policy
to purchase any equipment, product or services provided through demonstrations
or testing periods.
3.16 Requisition; Purchase Order. Orders for goods and/or services shall not be placed
without a requisition and purchase order in place, unless the purchase: (A) has
been made utilizing an approved alternative procurement method such as
purchasing card, emergency purchase or petty cash reimbursement; and (B)
follows the applicable portions of the Procurement Code and this Procurement
Policy for such purchases.
3.17 Point of Contact. The Employee listed on the cover page of a solicitation shall be
the single point of contact for inquiries regarding such Town solicitation.
3.18 Confidentiality of Evaluation. Completion of a confidentiality statement is
required of all solicitation evaluation team members.
4. Items Not Subject to Competitive Selection Requirements.
4.1 Utilities. Utilities, communications and other public services that are not subject
to competition are exempt from this Procurement Policy; provided, however, that
any agreements for such services shall be reviewed and approved by the Town
Attorney.
4.2 Ancillary Goods and Services. Goods or services that are not specifically
provided for in an agreement entered into pursuant to this Procurement Policy
may be provided according to such agreement only if. (A) the Town Manager or
authorized designee determines, in writing, that such unspecified goods or
services are clearly necessary and incidental or ancillary to the goods or services
provided for in the agreement; and (B) the agreement is amended to clearly
include the incidental or ancillary services within the scope of work.
5. Informal Procurement Methods (Under $50,000).
5.1 Petty Cash Purchases ($1.00 — $50). Petty cash may be used for expendable items
only. Such expenditures shall not exceed $50 and must be pre -approved by the
procuring Department director. A request for petty cash reimbursement shall be
accompanied by a valid receipt and certification of public purpose for the item
purchased.
5.2 Open Market Purchases (Less than $10,000). Open market purchases do not
require competitive quotations or bids; however, competitive quotations and bids
should be obtained when practical. Usually, these purchases are routine in nature
and obtaining quotations generally consumes more time than is worthwhile
expending and shall, to the extent applicable, adhere to the Town's Municipal
Sponsorship and Naming Rights Policy.
1995051.7
Town of Fountain Hills Procurement Policy
A. This procurement method does not apply to the procurement of
Professional Services, Construction or Exempt Construction.
B. Except as set forth in this Section 5.2, Open Market Purchases must be
made in conformance with the Town's Procurement Code and this
Procurement Policy.
5.3 Small Purchases ($10,000 — $49,999).
A. Subject to the provisions of Section 7 below, the procuring Department
shall obtain at least three written competitive quotations for small
purchases. A lesser number of quotations may be acceptable, provided
there are insufficient numbers of competitive vendors, as approved by the
Department director and the Procurement Agent. The shortage of
potential bidders available shall be supported by written notification
and/or specifications provided to each vendor and written "No Bid"
response. The Procurement Agent or designee may require Departments
to obtain formal competitive bids or proposals for some small purchases.
B. While the internet may be a valuable tool for investigating sources for
goods and services, quotes taken directly from a search of the internet
Web sites are not considered "written" quotes and will not be accepted for
this type of purchase.
C. Departments shall comply with the public notice and legal advertising
requirements. The posting must include detailed specifications of product
or services solicited.
D. The method in this Section 5.3 does not apply to the procurement of
Construction or Exempt Construction, which shall be procured according
to Section 8 below.
5.4 No -Cost Procurement.
A. Revenue producing or "no -cost" contracts that involve the provision of
commodities or services provided to the Town in support of Town
operations, functions, or programs through which the provider will benefit
monetarily, are considered business opportunities shall, to the extent
applicable, adhere to the Town's Municipal Sponsorship and Naming
Rights Policy.
B. Revenue producing or no -cost contracts must be awarded using a
competitive process that is appropriate to the value, complexity and profile
of the business opportunity.
1995051.7 4
Town of Fountain Hills Procurement Policy
C. The Town has the authority to assist the contractor in designing,
implementing and maintaining the standards of the provider's program.
5.5 Purchase Orders.
A. The Procurement Agent shall provide forms of purchase order which shall
be used for the purchase of all Materials and Services for or on behalf of
the Town.
B. Open purchase orders may be provided by the Procurement Agent for the
routine purchase of regularly supplied items. An open purchase order
shall be limited to a single source and shall not be valid for more than
$10,000 in the aggregate. All open Purchase Orders shall expire at the end
of the fiscal year of issuance and the expiration date shall be plainly stated
on the face thereof.
5.6 Purchasing Cards.
A. Town Departments are authorized to use the purchase card ("P -Card") for
certain purchases. The individual purchase transaction limit and monthly
spending limit are set based on the types of purchases an individual may
need to make. P -Card spending limits apply to the total transaction,
including taxes, delivery and installation. A Department wishing to
increase the P -Card spending limit for purchases should submit a request
to the Finance Director including a justification for the request, the
purpose for which the card will be used, the spending limit requested and a
description of internal controls in effect to prevent misuse.
B. All P -Card transactions shall be in accordance with applicable law, the
Town Procurement Code, this Policy and any other applicable accounting
and budgeting rules, policies and procedures established by the Finance
Division.
C. The use of a P -Card by anyone other than the authorized cardholder is
prohibited.
D. The P -Card may only be used to acquire or pay for goods related to a valid
public purpose. The P -Card is to be used solely for authorized Town
expenditures incurred while conducting Town business during authorized
duty hours. Use of the P -Card for personal expenditures is prohibited.
Using the P -Card for any of the following is strictly prohibited:
1. To withdraw cash from ATMs or other sources.
2. To purchase traveler's checks or any other negotiable instrument.
1995051.7 5
Town of Fountain Hills Procurement Policy
3. To purchase alcoholic beverages or any illegal substance.
4. To purchase professional services of the type that requires a Form
1099 to be issued. In general, the types of services that require the
issuance of a Form 1099 include payment of rent, miscellaneous
income to independent contractors, medical and health care
payments, or fees paid to accountants, attorneys, programmers,
temporary help, etc. For additional guidance with respect to Form
1099 requirements and reporting, contact the Finance Division.
5. To make purchases exceeding the applicable spending limits.
E. Dividing purchase transactions to circumvent purchase limits is
prohibited.
F. The P -Card may be used for travel -related expenses when such expenses
are directly related to a conference attended by the P -Card holder. Hotel
rooms may also be booked on the P -Card for meetings, conferences and
other Town -authorized events.
G. Unless otherwise prohibited, the P -Card may be used to conduct
procurements by way of telephone or the Internet.
H. Department responsibilities.
1. The Department director is responsible for all P -Card activity in
her/his Department. The Department director shall:
a. Review and approve the issuance of any P -Card to an
employee. Submit approved requests to the Finance
Director for issuance of the P -Card. P -Card request forms
may be obtained from the Finance Director.
b. Ensure that any employee to whom a P -Card is issued has
been sufficiently trained to be familiar with the Town's P -
Card and Purchasing policies and procedures.
C. Distribute P -Card applications to candidates for P -Cards
along with a copy of this Policy and the P -Card Agreement;
receive and distribute new and replacement P -Cards.
d. Monitor compliance with Town P -Card policies and
procedures. It is the responsibility of the Department
director to pursue full restitution, including penalties and
interest from the cardholder, in the event of a cardholder's
misuse of a P -Card. In the event of misuse, the Department
1995051.7 6
I.
Town of Fountain Hills Procurement Policy
director will report the incident to Human Resources for
other disciplinary actions, up to and including dismissal.
e. Review cardholder records at least quarterly to verify
compliance with rules and policies and to confirm the
appropriate use of P -Cards
f. Log on to Smart Data Online to review and approve
charges made by the cardholders. This must be done
within three (3) days of receipt of billing statements.
g. If an employee to whom a P -Card has been issued leaves
the Town for any reason:
Recover the P -Card prior to employee leaving town
property.
ii. Notify the Finance Director to cancel that P -Card.
iii. Request that the Administrative Services Director
place a hold on wages (up to the maximum limit of
the P -Card issued to the employee) if the employee
leaves the Town employment and fails to surrender
the P -Card.
iv. Document all appropriate files and forward the
documentation to the Administrative Services
Director to review for possible legal action.
V. If not previously resolved by the cardholder, resolve
any disputed transactions and document the
resolution thereof.
2. The Department director may appoint a Departmental P -Card
Administrator who will have the responsibility for reconciling, on
a monthly or more frequent basis, all charges against statements of
activity.
3. Late fees, delinquency charges and interest accrued are the
responsibility of the Department.
Cardholder Responsibilities.
1. A cardholder shall be an employee of the Town of Fountain Hills.
1995051.7 7
Town of Fountain Hills Procurement Policy
2. Before receiving a P -Card, employees must sign an affidavit of
acknowledgement and understanding of these policies and
procedures for use of the P -Card. This document authorizes
withholding of money from wages if the card is misused or not
returned upon separation from Town employment.
3. A cardholder shall:
a. Maintain all receipts that document charges, credits or
adjustments incurred on the P -Card. If original receipts are
lost, the cardholder will contact the vendors to obtain
duplicate receipts.
b. Log on to Smart Data Online to review purchases and
account coding for accuracy.
C. Unless the employee's Department delegates this task to
another employee, reconcile the monthly statement of
activity against the purchasing activity conducted on the P -
Card during that time frame (i.e., match receipts to
statement of activity). Cardholders shall resolve any
discrepancies on the monthly statement of activity,
including charges for items returned to vendors, credit
vouchers not appearing on the statement of activity, and
disputes with either the vendor or the Town P -Card
contractor. Any unresolved discrepancies shall be
communicated to the Finance Division for resolution.
d. Forward the reconciled statement of activity and the
original receipts to the Department director for final
approval and submission to the Finance Division for
payment.
e. Adhere to the limitations imposed upon the use of the P -
Card.
f. Immediately surrender the P -Card upon resignation,
retirement or termination from Town service. If the P -Card
is not surrendered upon such separation, the employee
consents, in writing by signing the P -Card agreement, to
the withholding of the amount of the P -Card limit from any
wages or other amounts due the employee pending the
reconciliation by the Town of the final monthly statement
of activity for the P -Card. Use of a P -Card issued by the
Town after separation from Town service is prohibited.
1995051.7 8
Town of Fountain Hills Procurement Policy
4. Except as otherwise herein provided, P -Cards are assigned to
individual employees. It is the cardholder's responsibility to
ensure the security of the P -Card and to ensure the use of the P -
Card complies with this Policy.
5. If a P -Card is lost, misplaced, stolen or destroyed, this fact must be
reported immediately to the Finance Director. In the case of a card
that has been destroyed or otherwise rendered inoperative, the card
to be replaced is to be returned to the Finance Director.
Employees will be assessed a $5.00 fee for replacement of lost,
stolen or misplaced P -Cards.
6. The cardholder may be personally liable for P -Card charges and
may be required to reimburse the Town for P -Card transactions
that are contrary to any applicable laws, rules, policies or
procedures.
7. Improper use of the P -Card is subject to the appropriate
disciplinary actions (up to and including dismissal and
prosecution).
J. Compliance Reviews.
1. Periodically, the Finance Division may perform compliance audits
of all Departments. All P -Card -related information, including but
not limited to the following, will be reviewed:
a. Department policy and procedure documents.
b. Documents supporting any appointments or delegation of
duties.
C. Cardholder agreements and related employee information.
d. Reconciled, detailed statements of activity.
C. Transactional information.
f. Adherence to limits.
g. All supporting documents and receipts.
2. A report of the findings resulting from a compliance audit will be
issued to the Department director and the Town Manager.
1995051.7 9
Town of Fountain Hills Procurement Policy
6. Formal Procurement Processes ($50,000 or Greater).
6.1 General Provisions.
A. Except as permitted in Section 7 below, there must be a formal solicitation
process for expenditures or when the total contract value for a singular item,
service or commodity will exceed $50,000 either as a one-time purchase or
the aggregate cost or value over the contract term.
B. The Procurement Agent shall ensure that Vendors are informed that they
are responsible for reading all solicitation documents in their entirety, and
that offering a bid or proposal in response to a solicitation is an offer to
contract under the terms and conditions of the solicitation.
C. The Procurement Agent and the applicable Department director are jointly
responsible for ensuring compliance with all solicitation requirements.
D. The Town will not reimburse any cost incurred by a vendor in preparing a
bid, proposal or statement of qualifications.
6.2 Sealed Bidding — Invitation for Bids.
A. The sealed bid method is preferred when it maximizes price competition by
basing the selection among responsive, responsible bidders on price alone.
B. The procuring Department shall contact the Procurement Agent to establish
an Invitation for Bids (IFB). The Procurement Agent shall provide a
solicitation number.
C. The procuring Department shall determine the appropriate public release
period and outreach based upon the nature of the solicitation. In making
the determination, the procuring Department shall ensure compliance with
requirements of applicable law, such as ARiz. REv. STAT. §§ 9-812 and
34-201, as amended, and Section 3-3-17 of the Town Code, as amended.
D. The procuring Department shall provide the Procurement Agent with all
information necessary to produce a complete IFB package, in a form suitable
for public release.
E. After public opening, bids shall be checked and analyzed for compliance
with bid requirements and law by the Procurement Agent.
F. The procuring Department shall be responsible for: (1) tabulating and
verifying all bids to determine compliance with the specifications; and
(2) preparing the necessary materials for Town Council action.
1995051.7 10
Town of Fountain Hills Procurement Policy
G. Omissions on any item on the bid price sheet shall be deemed a "No Bid."
H. All bid tabulations will be posted by the Procurement Agent on the Town's
website after final verification of pricing and compliance with bid
specifications.
I. A full record of submissions, bid tabulations, disqualifications and notices of
intent to award shall be kept on file according to the Town's adopted records
management policy.
6.3 Request for Proposals. The Request for Proposals method is primarily intended to
permit competition on quality and other factors, as well as on price. Requests for
proposals shall not be solicited from Technical Registrants, which shall only be
procured through the Request for Qualifications process in Section 6.4.
A. The procuring Department shall contact the Procurement Agent to establish
a Request for Proposals (RFP). The Procurement Agent shall provide a
solicitation number.
B. The procuring Department shall determine the appropriate public release
period and outreach based upon the nature of the solicitation. In making
the determination, the procuring Department shall ensure compliance with
requirements of applicable law, such as ARiz. REv. STAT. §§ 9-812 and
34-201, as amended, and Section 3-3-17 of the Town Code, as amended.
C. The procuring Department shall provide the Procurement Agent with all
information necessary to prepare a complete RFP, in a form suitable for
public release.
D. After public opening, Proposals shall be checked and analyzed for
compliance with solicitation requirements and law by the Procurement
Agent, and distributed to the members of the Selection Committee with a
comparison matrix and evaluation instructions.
E. Firms under consideration will be evaluated by the Selection Committee
composed of the Procurement Agent, the Department director procuring the
services (or his/her designee), and any other staff that the Department
director and Procurement Agent feel possess sufficient knowledge or
relevant experience that would materially contribute to the evaluation. The
Selection Committee may include outside professionals who can provide
expertise not available from Town staff and shall include such professionals
who are required by State law. Such outside professionals cannot represent a
firm under consideration.
F. Evaluations shall be tabulated by the Procurement Agent. Discussions
and/or negotiations may be opened at this time with the firm selected to be
1995051.7 11
Town of Fountain Hills Procurement Policy
the most qualified by the Selection Committee according to the scope of
work.
G. Original Proposal(s) of successful vendors shall be forwarded to the
procuring Department for preparation of the item for Town Council action.
H. The full record of submissions, summary of evaluations, disqualifications
and notices of intent to award shall be kept on file according to the Town's
adopted records management policy.
6.4 Request for Qualifications. The Request for Qualifications (RFQ) method is
similar to the Request for Proposal method, except that qualifications are the
determining factor in selection; price is not allowed to be considered. The RFQ is
a request by the Town for detailed information concerning the qualifications of
firms to provide professional services to the Town.
A. The RFQ process is the preferred method for the selection of professional,
Services, unless such services are direct -selected as permitted in Section 7
below.
B. The procuring Department shall determine the appropriate public release
period and outreach based upon the nature of the solicitation. In making
the determination, the procuring Department shall ensure compliance with
requirements of applicable law, such as Aluz. REv. STAT. §§ 9-812 and
34-201, as amended, and Section 3-3-17 of the Town Code, as amended.
C. The procuring Department shall provide the Procurement Agent with all
information necessary to prepare a complete RFQ, in a form suitable for
public release.
D. The Procurement Agent shall assist the Department in completing a
Request for Qualifications.
E. The procuring Department may request that RFQ specifications be
prepared by contracted consulting firms. Contractors who are working on
specifications to be used for competitive procurements shall be precluded
from submitting qualifications on the resulting procurement.
F. After public opening, statements of qualifications shall be checked and
analyzed for compliance with solicitation requirements and law by the
Procurement Agent, and distributed to the members of the Selection
Committee with a comparison matrix and evaluation instructions.
G. Firms under consideration will be evaluated by a Selection Committee
composed of the Procurement Agent, the Department director procuring the
services (or his/her designee), and any other staff who the Department
1995051.7 12
Town of Fountain Hills Procurement Policy
director and the Procurement Agent feel possess sufficient knowledge or
relevant experience to materially contribute to the evaluation. The Selection
Committee may include outside professionals as necessary or as required by
State law. The outside professional cannot represent a firm that has
responded to the RFQ.
H. Evaluations shall be tabulated by the Procurement Agent. Discussions
and/or negotiations shall be opened at this time with the firm selected to be
the most qualified by the Selection Committee.
I. If negotiations with the first firm do not result in an agreement,
negotiations shall be conducted with the next ranked firm, and so forth.
7. Exceptions for Professional Services. Professional services should, unless direct
selection is deemed to be in the Town's best interest, be awarded using the competitive
process pursuant to Section 6 above that is appropriate to the value, complexity and
profile of the business opportunity.
7.1 Amount of $125,000 or Less. Professional Services in an amount of $125,000 or
less may be procured by direct selection of qualified vendor. However,
competitive proposals, quotations and/or bids should be obtained when practical
and permitted by law.
7.2 Amount Greater than $125,000. Professional Services in an amount greater than
$125,000 shall be procured only through a Request for Proposals (RFP) or a
Request for Qualifications (RFQ), as applicable.
8. Construction Services. Construction is governed by ARIZ. REv. STAT. Title 34. The
procuring Department is responsible for the development of the solicitation in accordance
with requirements of Title 34 and the Procurement Code for all Construction services.
Exempt Construction services may be direct -selected according to the process set forth in
Section 7 above.
9. Pre -Qualification Lists/Register. A list of qualified professionals may be established
for use in selection of service providers by following all the same actions applied in the
RFQ process set forth above. Qualified lists are normally used to streamline future
contracting processes for consultant services, thus eliminating the need for multiple RFQs
for the same discipline. Qualified lists are usually for the benefit of the procuring
Department(s), but unless expressly precluded by the RFQ, Council action or State law,
the lists may be used by any Department. Departments are required to solicit proposals
from multiple firms on a qualified list prior to making a contract recommendation. Pre -
qualification of Technical Registrants must comply with the requirements of Aluz. REv.
STAT. § 34-101 et seq.
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Town of Fountain Hills Procurement Policy
9.1 Dollar Thresholds for Pre -Qualified List.
A. Anticipated Contract Amount Less than $125,000: The Contractor may be
directly selected from the list. The selected Contractor must submit
updated resumes and current project lists before contract is executed.
B. Anticipated Contract Amount Between $125,000 - $250,000: A Selection
Committee shall be formed, including, at a minimum, the Department
project manager and other individuals with the technical expertise to
evaluate proposals. Staff shall request and evaluate updated resumes,
project lists and proposals based on the scope of services for the project
before entering into negotiation for the final selection. A minimum of
three proposals should be requested, and each proposal ranked. The
selection process may include interviews and discussion from the highest
ranked firm. The Selection Committee shall select the highest qualified
firm based on written and/or oral evaluations. If negotiations with the first
firm do not result in an agreement, negotiations shall be conducted with
the next ranked firm, and so forth.
C. Anticipated Contract Amount Exceeds $250,000: The Prequalified
Consultants List may not be used, and the normal procurement process
must be followed according to the Procurement Code and this
Procurement Policy.
9.2 Equity Standards. Departments utilizing the Prequalified List shall ensure
equitable treatment of all Contractors prequalified for Town projects.
10. Cooperative Procurement.
10.1 Described. Cooperative Purchasing is a method of inter -governmental purchasing
in which a public purchaser has competitively selected and awarded a contract
and allows other public purchasing agencies to purchase from the selected vendor
under the same terms and conditions as the original contracting agency.
10.2 Equally Stringent. The Town is authorized to take advantage of purchasing
contracts initiated, sponsored, conducted or administered by another public
procurement unit, provided: (A) the program has been authorized by the governing
body of the procurement unit; and (B) the procurement has been conducted by a
competitive process at least as stringent as the Town's policy.
10.3 Form of Agreement. In order to utilize a cooperative contract, a Town Cooperative
Purchase Agreement or Professional Services Agreement must first be in place. The
procuring Department is responsible for verifying the existence of a valid underlying
contract to which the Town's Cooperative Purchase Agreement or Professional
Services Agreement may attach. If a cooperative agreement is already in place
between the Town and the vendor in accordance with this Procurement Policy, the
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procuring Department may request an extension of the cooperative agreement so
long as the underlying agreement is extended for at least the same term.
10.4 Legal Requests. Requests to the Town Attorney for use of a cooperative agreement
must include all information necessary for the Town Attorney to draft the
cooperative purchasing agreement including, but not limited to, the underlying
contract, a scope of work and verification that the vendor is authorized to do
business in Arizona.
11. Noncompetitive Procurement. In general, noncompetitive procurement methods should
be avoided. In rare cases a needed purchase may fall into one or more noncompetitive
categories. In these instances, a contract may be awarded or purchase made, provided the
method appropriate to the procurement is properly documented.
11.1 Sole Source Procurement. Sole Source procurement shall be used only under
circumstances where there is clear and convincing evidence that there is only one
source available for the needed commodity or service. Any request by a
Department that procurement be restricted to one potential Contractor shall be
accompanied by an explanation as to why no other would be suitable or
acceptable to meet the need. The Department requesting sole source procurement
shall provide written evidence to support a sole source determination.
A. In all instances the requesting Department must demonstrate that there was
a serious, diligent effort to identify potential sources, test alternatives
available, and provide adequate notice to potential vendors of the Town's
need for a commodity or service.
B. Upon the Department's determination that a sole source is necessary and
appropriate, the Sole Source Justification (Form FHPPl l.1.B) must be
completed for each sole source request. Requests received that do not
include the completed Sole Source Justification form will be returned to
the requesting Department. The justification information must be (1)
submitted with all requests and (2) provided in sufficient detail to allow an
informed decision on the request.
C. All sole source requests must be sent to the Procurement Agent, who will
review the sole source request and decide whether or not the sole source is
adequately justified.
D. The procuring Department shall determine the appropriate public release
period and outreach based upon the nature of the solicitation. In making
the determination, the procuring Department shall ensure compliance with
requirements of applicable law, such as ARiz. REv. STAT. §§ 9-812 and
34-201, as amended, and Section 3-3-17 of the Town Code, as amended.
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Town of Fountain Hills Procurement Policy
E. Sole source requests that have been denied will be returned to the
originating Department with instructions to prepare specifications for
issuance of a competitive solicitation or to provide additional justification.
11.2 Competition Impractical Determination. Competition Impractical Determination
(CID) shall be used only under circumstances where there is clear and convincing
evidence that competitive solicitation is not in the best interests of the Town.
A. In all instances the requesting Department must demonstrate that there was
a serious, diligent effort to identify potential sources, test alternatives
available, and provide adequate notice to potential vendors of the Town's
need for a commodity or service or that costs exceed the benefit of open
competition.
B. Upon the Department's conclusion that a CID is necessary and
appropriate, the CID Form (Form FHPP 11.2.13) must be completed.
Requests received that do not include the completed CID Form will be
returned to the requesting Department. The justification information
submitted must provide in sufficient detail to allow an informed decision
on the request to be made.
C. All CID Forms must be sent to the Procurement Agent, who will review
the CID and decide whether or not it is adequately justified.
D. A CID that has been denied will be returned to the originating Department
with instructions to prepare specifications for issuance of a competitive
solicitation or to provide additional justification.
11.3 Emergency Procurement. Emergency Procurement, as authorized pursuant to
Section 3-3-25 of the Town Code, shall be utilized only under circumstances
when the delay in receiving needed products or services would seriously threaten:
(i) the functioning of government; (ii) the preservation or protection of property;
or (iii) the health or safety of any person. Although typical bidding procedures
can be avoided, competition should be utilized to the extent practical and a
contract, in a form approved by the Town Attorney, shall be executed.
A. An Emergency Procurement exceeding $50,000 shall be supported by a
declaration of an emergency by the Mayor or the Town Council, which
may be, if necessary, in the form of ratification of a prior action of the
Town Manager.
B. Emergency Procurements under $50,000 may be approved by the Town
Manager.
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Town of Fountain Hills Procurement Policy
C. A written determination of the basis for the emergency procurement shall
be forwarded to the Procurement Agent for inclusion with the procurement
and/or payment file.
D. The Town Department seeking an Emergency Procurement shall prepare a
written requisition, which may occur after the emergency procurement, if
necessary, documenting the existence of an Emergency condition and
explaining the Procurement need. The requisition shall be signed by the
Department director.
E. An Emergency Procurement shall be limited to those Materials, Services
or Construction reasonably necessary to satisfy the Emergency need.
12. Amendments to Solicitations — Addenda. Prior to award of a Contract, Addenda may
be issued due to changes in quantity, specifications, scope of work, delivery schedules,
opening dates or plans/drawings. Addenda may also be required for correcting an
ambiguous provisions or resolving conflicting provisions.
12.1 Changes following Pre-bid. A change or correction required as a result of a
discussion during a pre-bid/pre-proposal conference requires an addendum to the
Solicitation. A change to the written terms of the Solicitation must be done
formally in writing through an addendum to the solicitation document.
12.2 Process for Changes. The procuring Department shall notify the Procurement
Agent of the solicitation to be amended, identifying specific areas of the
document that will be changed, deleted, or added.
12.3 Extensions of Time. An important matter to consider when issuing an addendum
is whether or not to extend the time and date for receipt of offers. The impact of
the changes must be carefully considered in light of the time it will take a prudent
offeror to incorporate those changes. This includes the time impact on the work
already done in preparing the bid or proposal.
12.4 Town Attorney Preparation. The Procurement Agent will authorize the procuring
Department to submit the request for an Addendum to the Town Attorney's
Office for drafting.
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Town of Fountain Hills Procurement Policy
13. Receipt and Opening of Bids, Proposals, and Statements of Qualifications.
13.1 Bid Receipt. Sealed Bids received, Proposals and Statements of Qualifications
shall be time -stamped on the envelope or shipping label (not box), recorded on the
solicitation log and kept in a safe place by the Procurement Agent until the
appointed day and time when they are publicly opened and read. It is important to
note that Sealed Bids shall not be submitted only by facsimile or in an electronic
format even though an electronic copy may be required as part of the hard copy
submitted.
13.2 Late Bids. Late Bids shall not be accepted and shall be returned, unopened, to the
bidder.
13.3 Bid Security. Certified checks and bid bonds, if required by the Department as
bid or performance security, shall be received, examined for accuracy and
recorded by the Procurement Agent.
13.4 Public Opening. Responses to Solicitations shall be opened publicly at the time,
date and location as designated in the Solicitation document. Bid/proposal
openings are generally scheduled for Wednesdays at 3:00 p.m. (local time,
Phoenix, Arizona), but may be scheduled at such other time as determined by the
Procurement Agent.
A. Sealed Bids shall be opened at the appointed date and time by an
Employee from the procuring Department. The respondent name, bid
price, and other information deemed appropriate by the Procurement
Agent shall be read aloud. All other bid information terms and conditions
will not be read at this time.
B. Sealed Proposals shall be opened at the appointed date and time by an
Employee from the procuring Department. Only the names of the
proposers submitting information are to be read. Prices, if included as part
of the proposal, shall not be provided or read at that time.
13.5 File Keeping. Envelopes and/or shipping labels from boxes shall be kept in the
procurement file until after the protest period for that solicitation has passed. For
projects using federal funds (i.e. HUD), all competitive Sealed Bids must be date
and time stamped upon receipt. These time and date stamped bid envelopes must be
retained with the project files as required by federal guidelines to document
compliance for audit purposes.
14. Contract Management and Vendor Payment. The procuring Department is
responsible for ensuring commodities or service deliverables are in compliance with the
scope and terms of the contract. The procuring Department director serves as the Town
representative in determining the acceptance/rejection of goods and services and the
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Town of Fountain Hills Procurement Policy
conditions of acceptance or rejection and payment of the deliverables. Responsibilities
include, but are not limited to the following:
14.1 Monitoring. Monitoring contract performance and ensuring compliance with all
contract terms and conditions.
14.2 Renewals/Extensions. Ensuring timely renewal/extension and managing
amendments to the contract through Town Attorney approved amendments signed
by the persons duly authorized to enter into contracts on behalf of the Town and
Contractor.
14.3 Updates. Maintaining current contact information and ensuring that all contract
documents are correctly updated and deposited with the Town Clerk's Office.
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