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HomeMy WebLinkAbout4.3 Management Directive, 306 ProcurementMANAGEMENT DIRECTIVE 306 -Procurement PURPOSE: To set forth specific details on administering the procurement process for Homer Electric Association operations, maintenance, contractors, or goods and services, and to set forth specific details on the qualifications of subcontractors for construction contracts. CONTENT 1. Delegation of Authority The Projects Group Manager and Purchasing Agent have been delegated the responsibility and authority to negotiate and enter into contracts and procure goods and services on behalf of Homer Electric Association using the procedures established herein as follows: a. Procure supplies, services and construction materials required by HEA; b. Sell, trade or otherwise dispose of surplus supplies belonging to HEA; c. Maintain all records pertaining to the procurement of supplies, services and construction, and the disposal of supplies by HEA; d. Join with other cooperatives, subject to the approval of the General Manager, in joint purchasing ventures where the best interests of HEA would be served; e. Compile and maintain, to the extent practicable, a qualified bidder list for maintenance, construction, and professional services utilized by HEA; f. Compile and maintain a log of all contracts awarded for supplies, services, professional services or construction, together with any amendments thereto; and g. Participate in the development and adoption of standard specifications for supplies, services, and construction wherever practicable, which shall be in compliance with RUS and North American Free Trade Agreement (NAFTA) requirements. MD 306, Page 2 of 9 2. Pre-Qualification Lists a. Pre-Qualification Lists may be utilized for procurement via either a formal or informal bid process. The lists are generally used for major equipment/materials acquisition or contracting certain services. Examples of such procurement include annual snow plowing bids, equipment rentals, line materials bids, etc. b. Pre-Qualification Lists will be developed annually by the Projects Group Manager or the Purchasing Agent. Development of such lists will be accomplished by: 1. Publication of the intent to develop a pre-qualification list, specifying the service / materials involved and deadline for submitting appropriate information (publication shall include at least one paper of general circulation located within each service area); or ii. Written notice to businesses on the Kenai Peninsula known to be involved in the requested service or materials. c. Final determination of the businesses on the Pre-Qualification List may include consideration of such matters as: i. The timely availability of the goods/materials; 11. The prior history of the firm/vendor in supplying goods, materials, services, and/or labor to HE A; iii. Possession of an Alaska business license; IV. Maintenance of an office and staff within Alaska; v. Corporate registration within Alaska or corporations authorized to do business in Alaska; vi. Regulatory requirements of the federal or state government; and Vll. Other such qualifications as may be periodically determined necessary. 3. Formal Bid Process A Formal Bid Process, with a minimllm of three bids solicited, is required for purchases exceeding $100,000 in cumulative value (including "blanket" or "annual" purchase orders for supplies and / or materials). A Formal Bid Process will include the following procedures. MD 306, Page 3 of 9 a. Pre-Qualification List If this step is utilized, the list previously developed for the specific procurement will be utilized and the formal bid process shall invite only those names shown on the Pre-Qualification List. Any pre-qualified service area business will be eligible for the bid process. b. Invitation to Bid !. An Invitation to Bid will be developed by the Projects Group Manager, a consultant or staff member assigned for the purpose of administering or managing the specific project. Reference to the Projects Group Manager in this section is intended to indicate that it is his/her direct responsibility, unless a consultant is engaged or staff member assigned for a particular project, in which case the responsibility rests with the consultant or staff member. The responsibility for reviewing the consultant's or staff member's product rests with the Department Director or project sponsor who is responsible for the particular project.) ii. An Invitation to Bid is a general statement, for publication purposes, of the Scope of the Project, and also provides details on the availability and costs of the bid package, the date / time of the pre-bid conference, the date/time of the bid opening, the contact source at HEA, the architect / engineer, and other such information as may be required. c. Bid Package Development The Bid Package Development generally includes a contract and the plans and specifications for the project. The Projects Group Manager is responsible for the Bid Package Development. Development of the bid package shall include, when applicable, specific sections for evaluation of: i. Timeliness in responding to warranties and/or repairs; u. Availability 6f repair facilities located within the service area; iii. Availability of replacement parts within the service area; and iv. Other such matters which may not necessarily involve only the lowest bid but are none-the-less of value to HEA in its operations. MD 306, Page 4 of 9 The contract and other documents will be reviewed by the attorney prior to dissemination, as appropriate. d. Advertise Bid Publication of the Invitation to Bid shall be in at least one paper of general circulation, as defined by Alaska State Statutes, located within the SPSC and CPSC service areas a minimum of once per week for two consecutive weeks, unless otherwise approved by the General Manager. e. Pre-Bid Conference If it is determined that there is a need for a Pre-Bid Conference, the conference shall be held at either the Homer or Kenai office of HEA. The conference shall be conducted by the Projects Group Manager. f. Bid Period 1. The bid period shall be at least 14 calendar days unless otherwise approved by the General Manager. ii. Bids shall be received only at an HEA office, and shall be logged in so as to show the date and time of receipt. Bids shall be turned over to the Projects Group Manager for safekeeping until the date of the bid opening. g. Bid Opening The Projects Group Manager shall conduct the bid opening and is responsible for determining responsiveness to bids by: 1. Opening the bids in the order in which they were received; ii. Reading aloud the name and address of the bidder and the date and time the bid was received; iii. Verifying that all required submittals were received; iv. Setting aside those bids considered not responsive and which do not have the submittals required; v. Reading aloud the bid prices for all responsive bids; vi. Assuring that the bid information is recorded on a Bid Register, for permanent records; MD 306, Page 5 of 9 vii. Reading aloud the Cost Estimate completed by / for HEA, if provided; and viii. Announcing the close of the Bid Opening and stating that an award may be made after reviewing and evaluating all bids. h. Evaluation of Bids The Project Group Manager is responsible for assuring that: 1. All bids are reviewed for correct pricing and unit extensions; 11. All technical requirements of the bid package are met by the apparent low bidder, relying upon the evaluation of consultants and HEA staff as necessary; iii. If deemed necessary by HEA, the apparent low bidder will submit a confidential bidder questionnaire or provide a list of references in order to satisfy HEA that they are responsible and qualified to perform the contract requirements; and iv. When applicable, review vendor evaluation file for matters such as timeliness of warranty work, etc.; and v. The quality of previous work/services performed for the Cooperative shall be a component of the bid evaluation. The Projects Group Manager develops an award recommendation to the General Manager, based upon such evaluation. Where price, quality and quantity are approximately equal, a business maintaining an office in the service area will be given preference in the bid award. 1. Notice of Bid Award The Projects Group Manager or the Purchasing Agent shall notify the successful bidder within ten days of the bid opening date, unless otherwise noted in bid package. 4. Informal Bid Process: All purchases which exceed $25,000, but are less than $100,000, require an informal bid process. The process for Informal Bids is as follows: MD 306, Page 6 of 9 a. Pre-Qualification List If this step is utilized, the list previously developed for the specific procurement will be utilized and the informal bid process shall include only those names shown on the Pre-Qualification List if there is a minimum of three qualified bidders. b. Informal Bid Notice i. The Projects Group Manager shall contact, VIa telecommunications, businesses qualified to provide the goods/materials required. ii. At least three bids shall be solicited. Any pre-qualified service area business shall be eligible for the invited bid process. c. Informal Bid Register The Project Group Manager is responsible for assuring that the bid information received from the contacted business is recorded on a Bid Register, and is kept on permanent record. d. Evaluation of Informal Bids The Project Group Manager and HEA staff, as required, is responsible for assuring that: i. All informal bids are reviewed for correct pricing and unit extensions; ii. All technical requirements are met by the apparent low informal bidder; and 111. Previous work performed for the Cooperative is considered in the bid evaluations. e. Award of Informal Bid 1. The Projects Group Manager and / or Purchasing Agent are authorized to award informal bids which are within the procurement limits set forth in Management Directive #305. Where price, quality and quantity are approximately equal, a business maintaining an office in the service area will be given preference in the award. 11. Informal Bids which exceed the authority of the Purchasing Agent or Department Managers for procurement authorization shall be sent to the MD 306, Page 7 of 9 General Manager for award, with a recommendation of award from the Purchasing Agent or Projects Group Manager. f. Notice of Bid Award The Purchasing Agent or Projects Group Manager shall notify the successful bidder within ten days of the bid opening date. 5. Single or Sole Source Procurement Single or sole source procurement is utilized when: a. A written determination, with supporting documentation, is made that justifies the purchase should only be made from a single or sole source. A completed HEA form 393 "Waiver of Bidding Requirements" with appropriate signatures must be submitted for General Manager authorization. b. All single or sole source procurements will be authorized by the General Manager. 6. Request for Proposal HEA periodically engages consultants in a professional or technical advisory capacity to provide certain expertise, with an end product normally being a report or recommendation, a technical service, or plans, specifications or estimates for construction projects. Such consultants typically include the following services: a. Audit Service c. Legal Services d. Banking Services d. Engineering Services These procurements require a "Request for Proposal" process, which utilizes the steps outlined in the bid process, except that the bid package is substituted with a Scope of Services Section. a. The Scope of Services Section identifies the work or services required by HEA, and methods of evaluation of the responses to the Request for Proposals. MD 306, Page 8 of 8 b. Pre-Qualification Lists for these services may be utilized and, if so, must then conform to the procedures set forth in that section. c. The term of these services may exceed a one year duration. All services with annual costs over $100,000 shall be reviewed at least every three years. d. The General Manager may waive the requirements of this process and the procurement shall then be considered a single or sole source procurement, and will follow the requirements of that section. 7. Standard Procurements Standard or routine procurements for goods or materials under $25,000 shall be accomplished in accordance with the appropriate Management Directives. 8. Exceptions Exceptions to these procedures require the authorization of the General Manager. RESPONSIBILITY It is the responsibility of each employee to adhere to these guidelines. I "'l:L?.. -II DATE DIRECTIVE HISTORY Formerly MD 603 Date Adopted: July 1993 Reviewed Dates: Revision Dates: 01/94,10/01,2/06,07/06 BOARD POLICY REFERENCE(S) #401, Contracting and Purchasing MANAGEMENT DIRECTIVES REFERENCE(S) MD 305, Purchasing Authority and Definitions FORMS REFERENCE(S) # 393, Waiver of Bidding Requirements ~~ BTadJ€YP.Jill1O GENERAL MANAGER