Policy #100: Overview
POLICY #100.100 Introduction
Administrative
policies serve as the guiding principles for the County's administrative
processes. Generally, administrative policies are desirable in order to provide
guidance and controls over various administrative processes. The County's
administrative policies will comply with applicable state statutes.
It is the policy of the Board of County Commissioners (BOCC)
that all administrative processes conducted by or on behalf of Johnson County,
its agencies, departments, officials and authorized agents under the authority
of any budget approved by the Board of County Commissioners shall be made in a
manner and method that efficiently and effectively utilizes available financial
resources, and demonstrates good stewardship in the management of public funds
and resources, and exhibits prudent conduct in conducting the affairs of County
government.
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POLICY # 100.105 Applicability of Administrative Policies
The administrative policies adopted
by the BOCC shall apply to all elected officials, employees, agencies,
departments, boards, commissions, representatives, and authorized agents under
the authority of any budget approved by the BOCC in the performance of their
official duties for or on behalf of Johnson County Government.
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POLICY # 100.110 Process for Amending Administrative Policies
The
BOCC may initiate changes to the existing administrative policies at any time.
In addition, the County
Manager shall review the
County’s existing administrative policies on a periodic basis. If changes to
the existing administrative policies appear to be necessary and appropriate,
the County Manager shall submit a recommendation to
the BOCC for consideration and action.
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POLICY # 100.115 Establishment of Administrative Procedures
The County Manager
is authorized to establish administrative procedures as deemed necessary to
effectively and fairly carry out this policy. Further, the County Manager
is responsible for ensuring that the administrative procedures are applied
uniformly and consistently in all County offices and departments reporting
through or supervised by the County
Manager.
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POLICY # 100.120 Applicability of Administrative Procedures
Administrative
procedures shall apply to all elected officials, employees, agencies,
departments, boards, commissions, representatives and authorized agents under
the authority of any budget approved by the BOCC in the performance of
their official duties for or on behalf of Johnson County Government.
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POLICY # 100.125 Violations of Policies and Procedures
Employees
who knowingly disregard or blatantly violate the provisions of the
administrative policies or the administrative procedures will be subject to
disciplinary action up to and including termination of employment.
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POLICIES #110: Purchasing
POLICY # 110.100 Introduction
The acquisition of all goods and/or
services made by or on behalf of Johnson
County, its agencies,
departments, officials and authorized agents shall be made by the Purchasing
Office in accordance with Board policies and the established Purchasing
Procedures. Such acquisition of goods and/or services will be done in a manner
and method which provides for the most proficient and effective expenditure of
County funds. It shall provide for the maximum protection of the County
taxpayer. It shall also provide for the prevention of waste, and the elimination
of conflict and corruption. It shall provide for accurate accounting by
utilizing applicable accepted accounting practices and generally accepted
auditable documentation. It shall also provide equal access and opportunity, in
an open and competitive market environment, to all suppliers without regard to
factors unrelated to quality, cost and availability of the goods and/or
services. It shall comply fully with all applicable Federal, State and Local
laws, rules and regulations.
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POLICY # 110.105 Statutory Authority
Several state statutes govern purchasing and contracting
in Johnson County. Agency, department and office
directors and employees involved in the purchasing and/or contracting function
are advised to be familiar with the provisions of these statutes. Listed below
are a few, but not all, of the most commonly referenced statutes.
B.1. Bridges ............................................................................ K.S.A.
68-1101 et seq.
K.S.A. 68-1413 et seq.
B.2. Budget Law....................................................................... K.S.A.
79-2925 et seq.
B.5.
Preferential Bidding........................................................... K.S.A.
75-3740a
B.6.
Real Estate Acquisition, Sale............................................. K.S.A.
79-2804 et seq.
B.7. Roads.............................................................................. K.S.A.
68-521
K.S.A. 68-704
B.8. Statutory Bonds................................................................ K.S.A.
60-1110 et seq.
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POLICY #110.110 Goals,
Objectives, Principles
The goal of the County Purchasing
office shall be to obtain needed goods and services at the lowest ultimate cost
consistent with prevailing economic conditions, appropriate standards of
quality and continuity of service, while establishing and maintaining a reputation
for openness, fairness and integrity.
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PROCEDURE # 110.110 – Goal, Objectives and Principles
A. The goal of the
purchasing activity is to obtain needed goods and services at the lowest
ultimate cost consistent with prevailing economic conditions, appropriate
standards of quality and continuity of service, while establishing and
maintaining a reputation for openness, fairness and integrity. Simply stated,
this means "to obtain the right quality, in the right quantity, at the
right time, at the right price, from the right source".
B. Embodied in the
above statement are the three major objectives of the public purchasing
process, which must be weighed and balanced against one another to achieve
value in the procurement:
B.1. EFFECTIVENESS. The quality of the goods and/or
services procured, the units and quantities procured, and the method of
procurement are appropriate to the needs of the organization.
B.2. EFFICIENCY. The time and effort expended, from
definition of need through final delivery, and the costs associated with
acquiring the needed goods and/or services are reasonable in order to achieve
value.
B.3. ECONOMY. The prices paid for goods and/or services
reflect savings in taxpayer dollars or product or service improvements and
represent the best possible prices obtainable at the time of purchase,
consistent with the requirements of the procurement.
C. To achieve balance in the above stated objectives, all
employees of Johnson
County involved in the
procurement process shall subscribe to and work for the following principles:
C.1. To consider the best interests of the County in all
transactions and to carry out the County's policies and procedures.
C.2. To purchase without prejudice, seeking to obtain the
maximum value for each dollar expended in accordance with established County
quality standards.
C.3. To strive consistently for knowledge of materials,
supplies and services required by the County and to establish practical methods
of acquiring them.
C.4. To be receptive to competent counsel from colleagues
and to be guided by such counsel without impairing the responsibility of
elected officials, department heads and staff to perform the assigned duties of
their respective positions.
C.5. To foster honesty and truth in buying and to avoid
conflicts of interest, unethical practices and the appearance of same.
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POLICY # 110.115 Scope of Policy
This
policy shall apply to the purchase of any goods and/or services regardless of
purpose or necessity unless that purchase is specifically made exempt by the
Purchasing Procedures, the Board of County Commissioners, or any applicable
Federal, State or local law.
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POLICY # 110.120 Ethics
All elected officials, employees,
agencies, departments, boards, commissions, representatives, and authorized
agents of the County involved in the procurement process shall perform their
duties impartially so as to assure fair competitive access to the County’s
procurement process by all responsible suppliers, contractors, and providers of
services. Public purchasing is a public trust balancing the objectives of
procuring needed goods and services with protecting the integrity of the
County. Employees shall conduct themselves in such a manner as to foster public
confidence in the integrity of the County’s procurement process. The Code of
Ethics for Johnson County government adopted by the Board of County
Commissioners and the Code of Ethics of the National Institute of Governmental
Purchasing (NIGP) shall be the standards for employee conduct.
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POLICY # 110.125 Preference Policy
Preference will be given to vendors which have an office or
place of business located in Johnson
County when all other
considerations are equal. To the extent permitted by federal law and
regulations whenever the County lets bids for contracts for the erection,
construction, alteration or repair of any public building or structure or any
addition thereto or for any public work or improvement, or for any purchase of
goods, merchandise, materials, supplies or equipment of any kind, the
contractor domiciled outside the state of Kansas, to be successful, shall
submit a bid the same percent less than the lowest bid submitted for a
responsible Kansas contractor as would be required of such Kansas domiciled
contractor to succeed over the bidding contractor domiciled outside Kansas on a
like contract let in such contractor’s domiciliary state in accordance with
K.S.A. 75-3740a.
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POLICY # 110.135 Authority to Purchase, Contract
Purchases of goods, professional services and general services
in an amount of $100,000.00 or more shall require formal, publicly advertised
competition and approval by the Board of County Commissioners or the
appropriate governing board.
Purchases of less than $10,000.00 may be made, without
competition, on the open market upon the authorization of the appropriate
agency, department or office director. Purchases of goods and services with a
cost exceeding $10,000.00 but not over $100,000.00 shall require competitive
procurement practices, and the County
Manager shall establish
Purchasing Procedures consistent with this Policy, to ensure the proper and
effective procurement.
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PROCEDURE # 110.130 RESPONSIBILITY
A. The County Manager is responsible for ensuring that the
purchasing policy is applied uniformly and consistently in all County offices
and departments reporting through or supervised by the County Manager,
his appointees and/or designees. The County
Manager is responsible
for establishing administrative guidelines for the purchase of all commodities,
materials, equipment and services for County agencies, departments and offices.
B. Agency, department and
office directors are responsible for ensuring that employees in their
agency, department or office are fully familiar with federal, state and local
laws, regulations and procedures regarding the purchase of commodities,
materials, equipment and services for use in their agency, department or
office, and that those employees comply fully with the provisions of said laws,
regulations and procedures. It is further the responsibility of the agency,
department and office directors to ensure that the purchasing policy and
procedures are applied uniformly and consistently to all purchases made by
their agency, department or office; to ensure that specifications and
requirements submitted for procurements provide for maximum competition among
the vendors providing the goods or services required; and to plan purchases to
allow sufficient time for compliance with the purchasing policy and procedures.
C. The Purchasing Manager
recommends rules and procedures relative to the purchasing process for
establishment by the Board of County Commissioners and the County Manager,
and provides assistance and advice, as necessary, in the administration of, and
compliance with, the purchasing policy and procedures. The Purchasing Manager
is responsible for the direction and management of the County's procurement
processes and operations.
D. The Purchasing
Division is responsible for the purchase or acquisition of commodities,
materials, equipment and services for County agencies, departments and offices,
in accordance with all applicable federal, state and local laws, regulations
and procedures and modern purchasing principles and techniques. The Purchasing
Division is also responsible for providing training to familiarize County employees
with public purchasing law and concepts in general and Johnson County
policy and procedures in particular.
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PROCEDURE # 110.135 Authority to
Purchase, Contract
A. The splitting of any aggregate purchase requirement to lower
the individual portions of the purchase below the limits where a more
restrictive level of competitive bidding (informal or formal) is required
(e.g., to keep the portions of the requirement below the $10,000 or $50,000
levels of competition) is prohibited.
B. Purchases of less than $10,000.00 may be made, without
competition, on the open market upon the authorization of the appropriate
agency, department or office director.
C. Purchases of professional services in an amount less
than $50,000.00 may be negotiated and contracted for by the appropriate agency,
department or office director. If requested, the Legal Department will assist
user departments in drafting the contracts and will approve the contracts as to
form.
D. Purchases of professional services in an amount of
$50,000 to less than $100,000 may be negotiated and contracted for by the
appropriate agency, department or office director, but will require proposal
solicitations from a minimum of three qualified respondents. The Legal Department
must review and approve contracts as to form and will provide assistance in
drafting contract documents upon request.
E. Purchases of goods and general services in an amount
of $10,000.00 or more, but less than $50,000.00 shall require documentation of
the appropriate method of competition and approval by the Purchasing Manager;
provided, however, that construction, renovation, and road and bridge projects
shall be procured in accordance with the limitations imposed by applicable
state or federal law. If requested, the Legal Department will assist user
departments in drafting the contracts and will approve the contracts as to
form.
F. Purchases of goods, and general services in an amount
of $50,000.00 or more, but less than $100,000.00, shall require formal,
publicly advertised competition and approval by the appropriate department head
and the Purchasing Manager. The Legal Department must review and approve
contracts as to form and will provide assistance in drafting contract documents
upon request.
G. Purchases of goods, professional services and general
services in an amount of $100,000.00 or more shall require formal, publicly
advertised competition and approval by the Board of County Commissioners or the
appropriate governing board.
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POLICY # 110.140 Contract Signature Authority
All contracts originally awarded by the Board of County
Commissioners, with the exception of term and supply contracts, require the
signature of the Chairman of the Board of County Commissioners. All other
contracts properly approved may be executed on behalf of the County, its
agencies or departments by those officials authorized to take such actions by
policies of the Board and/or under procedures established by the County Manager.
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PROCEDURE # 110.140 Contract Signature Authority
A. All contracts originally awarded by the Board of County
Commissioners, with the exception of term and supply contracts, require the
signature of the Chairman of the Board of County Commissioners.
B. All contracts originally awarded by an agency board following
their own administrative procedures may be signed by the chairman of that
board.
C. All term and supply contracts whether awarded by the Board of
County Commissioners or by the Purchasing Division may be signed by the
Purchasing Manager.
D. Any contracts for commodities or services of less than
$50,000.00 originally awarded by a department in accordance with these
purchasing procedures may be signed by the appropriate department or agency
head or designee.
E. Any contracts for commodities or services of $50,000.00 up to
less than $100,000.00 awarded in accordance with these purchasing procedures
may be signed by the Purchasing Manager or Department Head.
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POLICY # 110.145 Contract Renewal Authority
The Purchasing Manager shall have authority to renew term and
supply contracts that were originally awarded by the Board of County
Commissioners, up to 110% of the annual expenditure authority set by the Board.
All renewals estimated to exceed 110% of the annual expenditure authority set
by the Board must be approved for renewal by the Board. The County Manager
may establish Purchasing Procedures for contract renewals.
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PROCEDURE # 110.145 Contract Renewal Authority
A. The Purchasing Manager, upon concurrence of the user
departments, is authorized to approve renewal of term and supply contracts
originally awarded by the Board of County Commissioners, up to one hundred ten
percent (110%) of the annual expenditure authority set by the Board. The same
renewal authority also resides with the Purchasing Manager for maintenance and
service agreements and with department heads for agreements that were originally
less than $50,000.00
B. All renewals of the above noted contracts estimated to exceed
one hundred ten percent (110%) of the annual expenditure authority set by the
Board of County Commissioners must be approved for renewal by the Board.
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POLICY # 110.150 Term and Supply Contracts
County departments and agencies under the scope of this policy
shall be required to make purchases from the County’s term and supply contracts
if an applicable term and supply contract exists for the goods or services
required unless the purchase would otherwise qualify for an exemption under
these Policies and the Purchasing Procedures.
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PROCEDURE # 110.150 Term and Supply Contracts
Term and Supply Contracts for goods and services when issued for
Countywide use and not for specific department related projects do not
authorize expenditures against the contract, but only provide an approved
vendor(s) and a “not to exceed” spending ceiling. The Board of County
Commissioners must authorize expenditures against Countywide Term and Supply
Contracts, which have not been previously approved as part of a project, when
the total of the single purchase exceeds the limits specified in Section
#110.135 paragraph G of the County Purchasing Procedures.
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POLICY # 110.155 Change Orders
Changes related to work performed under a contract are usually
documented through the use of change orders. Change orders may be accepted and
approved when justified and when deemed necessary for the completion of public
business. Except as hereafter provided, the County Manager and/or County
official responsible for the management of the project or administration of the
contract are authorized to approve change orders for that project on that
contract, whenever the change order is justified and the authority is exercised
consistent with these policies and the purchasing procedures established by the
County Manager.
The following categories of change orders must be approved or
expressly authorized by the Board of County Commissioners, or, where
applicable, the appropriate agency board:
1.
Any change order, regardless of the size of the
contract, which itself equals or exceeds the amount of $100,000.00 and any
change order, applicable to a contract having a base contract amount of
$500,000.00 or less, which itself equals or exceeds the amount of $50,000.00. For
the purposes of this part, an individual change order is a single change order
covering a specific work item or category of work items (or goods or services)
and the related or associated costs. It does not include multiple work items
(or goods or services) which are not necessarily related but are grouped
together solely for the purpose of efficiently processing them as a single
change order document and Any change order which individually or in combination
with others causes the project to exceed its project authorization amount or
expands the purpose of the project or contract beyond its approved scope; and
2.
Any change order applicable to a contract having
a base contract amount less than $100,000.00 which individually or in
combination with others exceeds $10,000.00 and causes the total contract
cost to then exceed $100,000.00; and
3.
Any change order applicable to a contract having
a base contract amount of $100,000.00 or more but less than $500,000.00 which
individually or in combination with others exceeds $50,000.00; and
4.
Any change order applicable to a contract having
a base contract amount of $500,000.00 or more but less than $1,000,000.00 which
individually or in combination with others exceeds $100,000.00; and
5.
Any change order applicable to a contract having
a base contract amount of $1,000,000.00 or more which individually or in
combination with others exceeds 10% of the base contract amount.
The splitting of change orders into smaller increments to avoid
the defined approval thresholds is not permitted.
At any time when a change order or group of change orders are
approved or expressly authorized by the Board, the Board may, upon request of
the applicable department or official responsible for managing the contract,
re-establish a newly defined threshold for further change order approvals
applicable to the specific project, contract, or category of change orders and
authorize additional methods for approval.
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Procedure # 110.155 – Change Orders
A. Term and Supply Contract Change Orders
A.1. The Purchasing Manager is authorized to approve all
change orders derived from term and supply contracts initially approved by the
Board of County Commissioners up to the cumulative maximum of 110% of the
initial contract amount.
A.2. This approval authority also extends to term and
supply contracts initially approved by the Purchasing Manager.
B. All other change orders in accordance with the Purchasing
Policy. See Section 110.155.
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Policy # 110.160 Unauthorized Purchases
Any request for the purchase of goods or services, including those
by lease, lease-purchase or rental, which does not conform to the provisions of
any applicable federal, state, or local law, regulation or procedure, or which
is not properly authorized pursuant to Board policy, shall be deemed to be
unauthorized by Johnson County. Unauthorized purchases may be rejected by the
County or other actions may be taken pursuant to Board policies or the
Purchasing Procedures established by the County Manager.
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Procedure # 110.160 Unauthorized Purchases
A. Any request for the purchase of goods or services, including
those by lease, lease-purchase or rental, which does not conform to the
provisions of any applicable federal, state, or local law, regulation or
procedure, shall be deemed to be unauthorized by Johnson County and will be
brought to the attention of the appropriate agency, department or office
director by the Purchasing Office.
B. In bringing the unauthorized request to the attention of the
appropriate director, the Purchasing Office will work with the user department
to bring the request into compliance with applicable laws, regulations or
procedures. If it is not possible to bring the request into compliance, or if
the actions required to bring the request into compliance are unacceptable to
the appropriate director, the Purchasing Office will, upon written
authorization of the County
Manager, process the
request as submitted and issue a purchase order to complete the transaction.
C. The shipment of goods and services to
locations other than County places of business or authorized County work sites
shall be prohibited.
D. Store Accounts
D1. Store accounts are
not permitted unless such accounts have been previously approved by the County
Purchasing Manager. All requests for new store accounts should be sent directly
to the Purchasing Manager for consideration. Store accounts are not to be
opened or used until approval is granted.
D2. Store accounts are
defined as accounts with specific stores that permit County employees to charge
the purchase of goods or services simply by signing their name or in some cases
with only verbal purchase authority. These accounts may or may not include an
actual “store credit card”.
D3. The appropriate
method of acquiring goods and/or services on behalf of the County is through
the use of the County Purchasing Card or a purchase order. These methods are
directed by specific purchasing card guidelines and purchasing policies and
procedures. They also have appropriate safeguards and tracking capabilities built
in for the protection of both the County and the employee.
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Policy # 110.165 Competitive Procurements
The County will obtain goods and services under a system of
competitive procurement. This is a system in which multiple willing and able
firms may compete openly, equally and non-restrictively for the opportunity to
provide goods or services to the County. This system shall provide for maximum
competition to affect maximum cost savings and value for tax dollars spent. Unless
otherwise authorized by the Board of County Commissioners or these policies,
open and competitive procurement is required for all supplies, materials,
equipment and contractual services whose cost is estimated to be $10,000.00 or
more. Open and competitive procurement is required for professional services
whose cost is estimated to be $50,000.00 or more. Competitive procurement
practices shall include quotations, informal bids, formal bids, requests for
proposals or other established methodologies, which shall be utilized pursuant
to the Purchasing Procedures established by the County Manager.
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Procedure # 110.165 Competitive
Procurements
A. Competition is the defined process in which multiple willing
and able firms compete openly, equally and non-restrictively to supply
equivalent goods or services to the County. The County seeks to maximize
competition within the competitive procurement process to effect cost savings
and to provide more value for the tax dollar. When a department reasonably
anticipates that annual aggregate totals for specific goods or services may
exceed the limits defined by these purchasing procedures, Purchasing should be
contacted for the purpose of establishing a Term and Supply contract.
B. Open and competitive procurement is required for all
supplies, materials, equipment and contractual services whose cost is estimated
to be $10,000.00 or more. Open and competitive procurement is required for
professional services whose cost is estimated to be $50,000.00 or more.
B.1. QUOTATIONS are written or verbal statements of
prices, terms of sale and description of goods or services offered to the
County by a prospective contractor. Quotations from multiple firms shall be
used as documentation of purchases with a cost of at least $10,000.00 but less
than $50,000.00. All quotations obtained by user departments for such purchases
from $10,000.00 to $49,999.99 require competitive written quotations.
Quotations from $10,000 to $24,999.99 may be submitted in tabulated form.
B.1.a. While user
departments are authorized to obtain the competition for the above stated
purchases, the validation of the competition is the responsibility of the
Purchasing Division and the authority for awarding the contract resides with
the Purchasing Manager.
B.1.b. The County's
official bidding documents used by the Purchasing Office to solicit informal
and formal bids/RFPs should not be utilized by user departments to obtain
competition for this, or any other category of purchases unless the proposed
bidding documents have been reviewed and approved by the Legal Department. Use
of the County's official bidding documents for quotation purposes would confuse
vendors and could lead to contractual commitments that would violate the
County's purchasing procedures.
B.2. INFORMAL BIDS are written documents
issued by the Purchasing Office similar to formal bids (see below), with the
exceptions that neither public notice nor a stated period of time between bid
invitation and bid opening are required. Informal bids may be used to document
competition for procurements with an estimated cost of less than $50,000.00 or
for other procurement situations requiring expedited or unusual handling at the
discretion of the Purchasing Manager.
B.3. FORMAL BIDS are written documents issued by the
Purchasing Office, inviting potential contractors to submit sealed, written
pricing for specific goods and services in conformance with specifications,
terms, conditions and other requirements described in the bid invitation
documents. Formal bids require public notice (legal publication), public bid
opening at a time and place designated in the bid document, and a minimum of
ten (10) working days between publication of the bid invitation
and bid opening. Formal bids shall be utilized to
document procurements of goods and contractual services with an estimated
project cost of $50,000.00 or more.
B.4.
REQUESTS FOR PROPOSALS (RFPs) are written documents issued by the Purchasing
Office inviting potential contractors to submit sealed proposals for specific
professional and other services in conformance with the scope of services,
terms, conditions and other requirements described in the RFP documents. RFPs
for professional services $100,000.00 and greater will require formal, publicly
advertised competition and the award of any resultant contract will require
approval by the Board of County Commissioners or the appropriate governing
board. RFPs for professional services $50,000.00 and greater up to less than $100,000.00
will not require formal, publicly advertised competition, but will require
informal proposal solicitations from a minimum of three qualified respondents.
Formal RFPs require public notice (legal publication), public proposal opening
at a time and place designated in the proposal document and a minimum of ten
(10) working days between publication and proposal opening. RFPs will not be
required for professional services for (1) an approved vendor under a Term and
Supply contract and (2) with approval of the Purchasing Manager will not be
required for second or later phases of a project for which the original
services were obtained through an RFP.
B.4.a. The County’s RFP process is usually a
two-step process. The first step consists of an Evaluation Committee scoring
all responsive proposals. This scoring is determined by allocating points
totaling 100, which are assigned to evaluation criteria similar to the
following.
Firm
Experience performing similar work
Key
staff or Firm personnel experience
Responsiveness
to the RFP
Applicable
resources
Project
understanding/approach
The
Evaluation Committee or department representative prior to opening of proposals
shall assign the weights given each category. Each Evaluation Committee member
will provide a numerical score. Following the tabulation of numerical scores,
each member’s set of scores will be ordered by the Purchasing Administrator as
to first choice, second choice and so on according to the point scores from
that member. To determine the finalists, one point will be assigned for first
choice, two points for second choice and so on. Choice points of all members
will be added together and the firms receiving the lowest choice point totals
will be short listed for the interview/cost proposal phase of the RFP. In some
circumstances, interviews may be waived with mutual consent of the Purchasing
Administrator and the Evaluation Committee. In the case where interviews are
waived, the Purchasing Administrator will request cost proposals from top
ranked respondents. Cost points will be calculated and then added to the
original proposal points. Using these new totals the Purchasing Administrator
will rank vendors by assigning one point for first choice, two points for
second and so on. The rankings of all members will be added together and the
firm receiving the lowest choice point total after the inclusion of cost points
will be selected to begin negotiations with the County.
B.4.b. The finalist firms invited to
participate in step two shall be the highest scoring respondents on the initial
proposals. Points from the initial proposal do not carry forward to the
interview step. Invited firms shall be interviewed by the Evaluation Committee
and shall provide a sealed fee/cost proposal prior to the interview. The fee/cost
proposals will not be opened until after the committee has completed the
qualifications evaluation of the interviewees.
Finalist
firms shall be independently evaluated by each Evaluation Committee member
based on points totaling 100. Points are assigned to criteria similar to the
initial proposal evaluation. Criteria are to be established by the Evaluation
Committee or Department Representative prior to opening of proposals. Fee
proposals will be weighted from 10 to 30 points (10% to 30% of the total) as
deemed appropriate for the project. The Evaluation Committee will determine the
weight of the fee/cost proposal in advance of proposal opening. Fee/cost
proposals shall not be opened until all of the technical/qualification
evaluations are completed. The Purchasing Administrator coordinating the RFP
will open the fee/cost proposals after all evaluations are turned in, signed
and dated by each Evaluation Committee member. The Purchasing
Administrator
will then compute the cost proposal points for each finalist firm and enter
those points on each firm’s respective interview score sheet. Fee/cost proposal
points shall be determined by awarding maximum points to the lowest fee/cost
proposal. Fee/cost points for firms other than the lowest will be determined by
dividing the lowest proposed cost by other cost proposals being scored, and
then multiplying this result times the maximum cost points. The resultant
points will then be added to the appropriate firms’ total.
Following
the interviews and addition of fee/cost proposal points to each Evaluation
Committee member’s score sheet, each member’s set of scores will be ordered by
the Purchasing Administrator as to first choice, second choice and so on
according to the point scores from that member. To determine the selection, one
point will be assigned for first choice, 2 points for second and so on. Choice
points of all members will be added together and the firm receiving the lowest
choice point total will be selected. In the case of a tie, interview scores without
cost proposal points added will be ranked in the same manner as above and the
firm with the lowest overall ranking without cost will be selected. If after
these rankings are calculated there is still a tie, the firm with the lowest
fee/cost proposal will be selected. If there is still a tie, the selected firm
will be decided by drawing lots. The long straw drawn will be the firm
selected. The Purchasing Manager and the Purchasing Administrator will conduct
a drawing.
The Evaluation
Committee members will be asked to comply with the County Code of Ethics
Standard 1101: An official whether elected or appointed and an employee in
government service should never act upon any matter in which they, their
family, or business has or may have any financial or beneficial interest; and
should always declare and disclose the full nature and extent of any personal,
family or business interests in any matter related to governmental actions or
duties.
B.5.REVERSE AUCTION
ELECTRONIC BIDDING. Unless otherwise prohibited by Kansas statutes or BOCC
policy, the County may utilize reverse auction electronic bidding for the
purchase of selected goods or materials whereby bidders are invited to bid on
specific goods or materials through real-time electronic bidding, with the award
being made to the lowest responsible and responsive bidder. During the bidding
process, bidders’ prices are revealed and bidders shall have the opportunity to
modify their bid prices for the duration of time specified for the electronic
reverse auction event. The reverse auction process will utilize a third party
reverse auction bidding service to facilitate the on-line auction event. Reverse
auctioning shall not be used for the acquisition of any services for
construction projects or for the acquisition of any other services. All bids
submitted under the reverse auction electronic procurement process shall be
subject to the open records act. Reverse auctions may be held at the discretion
of the County Purchasing Manager with concurrence of the department. Reverse
auctions may be used only for purchase of goods or materials with an estimated
cost of $50,000 or more.
B.5.a. Activities
prior to the reverse auction electronic bidding event:
1.
Prior
to the reverse auction event, discussion and agreement would take place between
the Purchasing Division and the department regarding the viability of the use
of the reverse auction procurement process for the transaction in question.
2.
The
Purchasing Division would contact the third party Reverse Auction Contractor to
schedule the reverse auction event.
3.
The
Purchasing Division would issue an Invitation for Bid which would include an
announcement stating that the County will use an electronic reverse auction to
obtain pricing and including pertinent information in the Invitation for Bid
regarding the reverse auction event. The Invitation for Bid will be advertised
in the same manner as the traditional paper bid.
B.5.b. Activities the
day of the reverse auction electronic bidding event:
1.
The
Purchasing Division will set up a conference room as a central viewing station
for all interested parties. Outside communication would not be permitted in the
conference room during the event and attendees would be prohibited from leaving
the room prior to conclusion of the event.
2.
The
Purchasing Administrator managing the event for the County will establish a
telephone link with the third party Reverse Auction Contractor.
3.
Interested
bidders will log onto the computer website hosted by the Reverse Auction
Contractor during the time period specified in the Invitation to Bid.
4.
At
the appointed hour, the reverse auction event will begin.
5.
Bids
are registered on-screen as the bidder submits an opening bid by the appointed
deadline. The bidder must submit an opening bid by such deadline to be
considered, but is under no obligation to modify that opening bid.
6.
Bidding
activity continues until the conclusion of the planned auction event, including
any extended bidding period(s) thereof, as specified in the Invitation to Bid. Extended
period(s) of the bidding activity would be allowed as long as the competitive
bidding continues.
7.
When
the auction reaches the “final minutes” of the bidding period, or any extended
bidding period(s) thereof, as specified in the Invitation to Bid, any bid
received that creates a new lowest bid will extend the auction until such time
as no bids are placed during the final minutes of the specified bidding period,
or any extended bidding period(s) thereof, or if the auction is ended by the
Purchasing Administrator managing the event for the County.
8.
If
technical problems should occur during the event, bidders would be provided a
toll free telephone number to allow for off-site assistance from the Reverse
Auction Contractor. If no immediate technical solution can be found, a
representative from the Reverse Auction Contractor will enter pricing by proxy
from its command center.
9.
If
bidders do not have internet access at their work location, they may access the
event at libraries, schools, home or anywhere internet access is available.
B.5.c. Activities
after the reverse auction electronic bidding event has concluded:
1.
An
auction summary/tabulation would be provided following conclusion of event.
2.
If
the winning bid is both responsive and responsible and within budget, the
department with assistance from the Purchasing Division may proceed to contract
with the winning bidder.
3.
If
no bids submitted are deemed acceptable the Purchasing Division may reject all
bids without penalty
.Return to Top
Policy # 110.170 Exemptions from
Policy
The County will exempt from the competitive procurement process,
purchases and expenditures of County funds that are not readily adaptable to
the competitive procurement and purchase order processes. These purchases are
exempt from the provisions of the Purchasing Policy due to express statutory or
legislative provisions that govern acquisition of those particular goods or
services or due to reasons deemed appropriate by the Board of County
Commissioners. All exemptions from the County purchasing policy must be
approved by the Board of County Commissioners, unless otherwise exempt pursuant
to these policies or by Kansas statute now or hereinfter enacted.. Exemptions
from these Purchasing Policies include the following:
1.
Sale
of temporary notes and bonds, including related fees
2.
Investment of temporarily idle County
funds;
3.
Employee Compensation;
4.
Employee benefits, including but not
limited to, premiums for health, life or disability insurance, including
self-insured plans; payments to pension or deferred compensation plans;
employment or payroll taxes;
5.
Insurance claims, losses and loss
adjustment expenses, including payments for policy deductibles, retained losses
and self-insured workers’ compensation losses. Fees for service paid to agents,
brokers or third party administrators, however, are NOT exempt;
6.
Witness and juror fees;
7.
Interfund transfers and
reimbursements;
8.
Employee reimbursements;
9.
Arbitrage and debt service payments;
10.
Lease payments to the Public Building
Commission;
11.
Payment of local utility services for
County owned or operated facilities, unless desired for the encumbrance of
funds in the County’s accounting system;
12.
Items purchased in accordance with the
Purchasing Card Policy; and
13.
Check requests.
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Procedure # 110.170 – Exemptions
from Policy and Procedures
A. Certain purchases and expenditures of County funds are not
readily adaptable to the competitive procurement and purchase order processes.
These purchases will be exempt from the provisions of the Johnson County
purchasing policy and procedures by virtue of other statutory or legislative
provision for the acquisition thereof. Exceptions for these transactions are
specifically identified in this section so as to preclude possible misinterpretation
of the requirements for exemption.
B. The following are exemptions from the purchasing policy and
procedures and do not require the issuance of a requisition and purchase order:
B.1. Sale of temporary notes and bonds, including related
fees.
B.2. Investment of temporarily idle County funds.
B.3. Employee compensation.
B.4. Employee benefits, including but not limited to;
premiums for health, life or disability insurance, including self-insured
plans; payments to pension or deferred compensation plans; employment or
payroll taxes.
B.5. Insurance claims, losses and loss adjustment
expenses, including payments for policy deductibles, retained losses and
self-insured workers' compensation losses. Fees for service paid to agents,
brokers or third party administrators, however, are NOT exempt.
B.6. Witness and juror fees.
B.7. Interfund transfers and reimbursements.
B.8. Employee reimbursements.
B.9. Arbitrage and debt service payments.
B.10. Lease payments to the Public Building Commission.
B.11.
Payment of local utility services for County owned or operated facilities,
unless desired for the encumbrance of funds in the County’s accounting system.
B.12
Items purchased in accordance with Purchasing Card Policy.
B.13.
Check requests.
C. Any agency, department or office seeking exemption from the
purchasing policy and procedures shall prepare a written request detailing the
specific nature of the transaction to be exempted, the statutory or legislative
basis for the exemption, and the alternative procedure which will be utilized
for the purchase or expenditure. The request will be addressed to the County Manager,
who will review the request and schedule it for action by the Board of County
Commissioners. All exemptions from the County purchasing policy and procedures
will be approved by the Board of County Commissioners.
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Policy #
110.175 Exemptions from Competition
The County may waive the competitive procurement process and
exempt qualified purchases from competition. An exemption from competition is
authorized for specific procurements by statutory citations, including:
1. Sheriff’s
Department covert vehicles and equipment (K.S.A. 45-221(a)(5);
2. Contracts
for mental health services or services for the mentally retarded between a
governing board and a nonprofit corporation providing such services (K.S.A.
19-4007);
3. Acquisition
of library materials for the direct use and benefit of the public (K.S.A.
12-1225(c));
4. Printing
of ballots for all elections under the jurisdiction of the Johnson County
Election Commissioner (K.S.A. 19-3424(d)).
Other categories of purchases are exempt from competition under
this Policy due to the nature of the goods or services being acquired, and
include the following:
1. Seminar
registrations, training classes, professional conferences, subscriptions and
professional membership due and fees;
2. Purchase
of local utility services for County owned or operated facilities;
3. Utility
relocation payments;
4. Postage
expense, when billed by a vendor at the currently prevailing postage rates
established by the U.S. Postal Service;
5. Equipment
maintenance or service agreements when purchased from the original equipment
supplier, if such maintenance may only be obtained from the original supplier
or if obtaining it from another supplier would result in voiding of warranties;
6. Procurement publications used to reach specific
markets.
7. Construction-related
licenses and permits;
8. Construction
and related services that may only be performed by a railroad company;
9. Purchase
of land and land rights, rights of way and easements; and
10. Purchase
of existing real property.
11. Litigation
Expense Services retained through Chief Counsel.
These procurements, although exempt from competition, are still
subject to the purchase order process, and must be processed in accordance with
the applicable Purchasing Procedures.
Return to Top
Procedure # 110.175 – Exemptions
from Competition
A.
The following procurements are exempt from the competitive procurement process
by virtue of specific statutory citation:
A.1. Sheriff's Department covert vehicles and equipment
(K.S.A. 45-221[a][5]).
A.2. Contracts for mental health services or services for
the mentally retarded between a governing board and a nonprofit corporation
providing such services (K.S.A. 19-4007).
A3. Acquisition of library materials for the direct use
and benefit of the public (K.S.A. 12-1225[c]).
A.4. Printing
of ballots for all elections under the jurisdiction of the Johnson County
Election Commissioner (K.S.A. 19-3424[d]).
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Policy # 110.180 Exceptions to Competition
The County may waive the competitive process and authorize an
exception to competition for certain situations and circumstances that do not
lend themselves to the competitive process or where competition may not be
available. Exceptions may be made for:
1. Emergency
procurement situations which are defined as circumstances in which either
critical County operations will be severely affected in an adverse manner
unless immediate action is taken to remediate the situation or in which a
disaster creates a threat to public health, welfare or safety;
2. Sole
source procurements;
3. Procurements
of goods or services which are available from or through other governmental
entities, including joint construction projects authorized by intergovernmental
agreement and when the other governmental party to said agreement is
administering the project;
4. Exact
replacement of a components, parts or sub-assemblies when exact replacement is
necessary to avoid excessive modifications to operating systems; and
5.
Other documented and justified circumstances
approved by the County
Manager.
All exceptions to competition must
be specifically authorized and approved – by the County Manager
if the procurement is less than $100,000.00, or by the Board of County
Commissioners if the procurement is $100,000.00 or more.
Return to Top
Procedure 110.180 Exceptions to
Competition
A. The competitive procurement process may be waived for:
A1. Emergency procurement situations which are defined as
circumstances in which either critical County operations will be severely
affected in an adverse manner unless immediate action is taken to remediate the
situation or in which a disaster creates a threat to public health, welfare or
safety. Emergency procurement situations as defined in this Procedure differ
from County declared emergencies.
a. The Board of County Commissioners, County Manager
or any agency, department or office director may declare an emergency
procurement situation as defined above and make immediate purchases of
materials, equipment or services with or without benefit of the competitive
purchasing process.
b.
Emergency purchases made in accordance with this procedure will be documented
in writing by the person declaring the emergency situation and submitted to the
Purchasing Office with an emergency purchase form which will be reviewed by the
Purchasing Manager and sent to the County
Manager for approval.
c.
Certain purchases not meeting the criteria for an emergency procurement under
this procedure, but which may be deemed as urgent, will be expedited and
approved by the Purchasing Office, upon notification of such circumstance and
submission of a requisition. In such circumstances, the Purchasing Office may
elect to secure informal competition rather than formal bids to respond to any
extenuating circumstances.
A.2. Sole source procurements:
a. A
sole source purchase is an award of contract for goods or services to the only
known source for the required goods or service, occasioned by the unique nature
of the requirement, the vendor, the impracticality of obtaining competition or
market conditions. A sole source cannot be justified on the basis of quality or
price, as quality can be a subjective evaluation based on individual opinion,
and price considerations must be evaluated by competitive bidding. If there is
more than one product or service that will perform essentially the same
functions under essentially the same conditions as the requested product or
service, a sole source is deemed not to exist. Sole source purchases shall be
re-evaluated at least annually.
b. A sole source purchase may be requested by County
agency, department or office directors by forwarding a completed Sole Source
Request Form to the Purchasing Office. It is the responsibility of the
requestor to fully justify the requested sole source purchase.
c. The Purchasing Office will review the sole source
request and provide the County
Manager with a written
opinion as to the validity of the sole source.
d. The County Manager, upon review of the request and the
opinion furnished by the Purchasing Office, is authorized to approve the
purchase if the aggregate cost of the request is less than $100,000.00.
e. If the aggregate cost of the sole source request is
$100,000.00 or greater, the County
Manager will forward the
request to the Board of County Commissioners for approval.
f. The Purchasing Office, in cooperation with legal
counsel and the user department, may elect to negotiate the prices, terms of
sale and other considerations with any approved sole source provider.
A.3. Procurements of goods or services which are
available from or through other governmental entities, including joint
construction projects authorized by intergovernmental agreement and when the
other governmental party to said agreement is administering the project.
A.4. Exact replacement of a components, parts or
sub-assemblies when exact replacement is necessary to avoid excessive
modifications to operating systems, and it is determined by the Purchasing
Manager that the component, part or sub-assembly is only available through a
single, authorized distributor
A.5. Seminar registrations, training classes,
professional conferences, subscriptions and professional membership dues and
fees.
A.6. Purchase of local utility services for County owned
or operated facilities.
A.7. Utility relocation payments.
A.8. Postage expense, when billed by a vendor at the
currently prevailing postage rates established by the U. S. Postal Service.
A.9. Equipment maintenance or service agreements when
purchased from the original equipment supplier, if such maintenance may only be
obtained from the original supplier or if obtaining it from another supplier
would result in voiding of warranties.
A.10. Procurement publications used to reach specific
markets.
A.11.
Construction related licenses and permits.
A.12. Construction and related services that may only be
performed by a railroad company.
A.13. Purchase of land and land rights, rights of way and
easements.
A.14. Purchase/lease/rental of existing real property.
A.15. Insurance Coverage where the competition for, and
acquisition of, is acquired through authorized agents, broker or third party
administrators (TPA).
A.16. Other documented and justified circumstances
approved by the County
Manager, if the
procurement is less than $100,000.00, or by the Board of County Commissioners
if the procurement is $100,000.00 or more.
Return to Top
Policy # 110.185 Negotiations
The Purchasing office, in
cooperation with the affected County departments, may negotiate the specific
terms and conditions for the procurement of goods and services in the
following:
1. Defined
emergency procurement situations;
2. Sole
source purchase, duly documented and approved;
3. Proprietary
items;
4. Extension
of existing contracts;
5. Final
scope of services, compensation and certain contractual elements resulting from
Requests for Proposals (RFPs).
No negotiations are allowed in the
formal bid process prior to contract award.
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Procedure 110.185 Negotiations
A.
The Purchasing Office, in cooperation with the user department, may negotiate
the procurement of goods or services in the following instances:
A.1. Defined emergency procurement situations.
A.2. Sole source purchases, duly documented and approved.
A.3. Proprietary items.
A.4. Extension of existing contracts.
A.5. Final scope of services, compensation and certain
contractual elements resulting from Requests for Proposals (RFPs).
B. No negotiations are allowed in the formal bid process
prior to contract award.
Return to Top
Policy 110.190 Consolidation of
Requirements
The Purchasing Office may consolidate the requirements of
several departments to achieve sufficient volume to acquire the most favorable
pricing for goods and services acquired through the competitive process.
Return to Top
Procedure 110.190 Consolidation of Requirements
A. Term and supply contracts are established by the Purchasing
Office, predominately through the competitive sealed bidding process, for the
provision of goods and services commonly required by one or more County
departments. These contracts, featuring pre-determined vendors, terms and
conditions, and favorable, consolidated pricing, allow departments to utilize
their personnel to accomplish other departmental duties by reducing the
necessity for those personnel to perform separate, redundant and conflicting
procurement activities. Term and supply contracts will be utilized whenever the
contract goods and services are appropriate to the needs of the user
department, unless the purchase qualifies as an exemption as defined in
Purchasing Procedures.
B. Blanket purchase agreements may be established by Purchasing
for departments utilizing term and supply contracts to facilitate order
placement. Blanket purchase agreements (BPA's) should be used when departments
purchase goods or services, from Term and Supply contracts that require numerous
orders/shipments over a period of time.
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Policy 110.195 Cooperative Procurements
The Purchasing Office may elect to participate with other
governmental entities in the cooperative procurement of goods and services. Cooperative contracts are derived
from the combining of the requirements of two or more political entities to
achieve the volume necessary to obtain the most favorable pricing.
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Procedure 110.195 Cooperative Procurements
Cooperative procurements are the combining of the requirements
of two or more political entities to obtain the advantages of volume purchases,
improved specifications, reduced administrative costs, and increased
intergovernmental cooperation. The Purchasing Manager may elect to participate
with other governmental entities in cooperative procurements of goods and
services. The Purchasing Manager may also elect to participate in cooperative
procurements of goods and services with organizations holding tax exempt status
under I.R.S. Section 501 (c)(3).
Return to Top
Policy 110.200 Purchase Orders
The purchase order serves as an official legal document between
the County and a contractor for goods and/or services. The purchase order may
be used separately or in conjunction with other documents and delineates the
responsibilities of both parties in the provision of goods and/or services
required by the County. The purchase order is required for all procurements
except those which are exempt under provisions of these Policies.
Return to Top
Procedure 110.200 Purchase Orders
A.
A purchase order serves as an official legal document between the County and a
contractor for goods and/or services. It may be issued separately or in
conjunction with other documents. The purchase order delineates the
responsibilities of both parties in the provision of and payment for goods and
services required by the County. The purchase order also is the mechanism by
which budgetary and cash balances are encumbered in the County's accounting
system.
B.
Issuance of a purchase order to confirm the legal contract between the County
and a contractor, and to encumber cash and budgetary balances, is required,
unless specifically exempted herein, for all procurements of goods and
services.
C. Issuance of a purchase order is generally not required
for exemptions referenced in Section 110.170.
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Policy 110.205 Vendor Relationships
It is essential to the success of the County to develop and
maintain goodwill with its suppliers of goods and services, and to establish
and maintain relationships based upon fairness and governmental ethics.
Return to Top
Procedure 110.205 Vendor Relationships
A. It is essential to develop and maintain goodwill between the
County and its suppliers. The reputation of the County can be enhanced and
promoted by:
A.1. Giving all salespersons a full, fair, prompt and
courteous hearing
A.2. Keeping competition open and fair
A.3. Keeping specifications fair, accurate and clear
A.4. Maintaining consistent buying policies and
principles
A.5. Observing strict truthfulness in all transactions
and correspondence
A.6. Respecting the confidence of the salesperson or the
company in regard to confidential or proprietary information
A.7.
Keeping free from any obligation to any vendor.
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Policy 110.210 Purchases
from County Employees
Purchases of goods or services from County employees are
prohibited. This includes any business in which a County employee or his/her
family has or may have any financial interest or benefit except when
specifically authorized by resolution by the Board of County Commissioners or during emergency situations.
Return to Top
Policy 110.215 Protests
by Vendors
Vendors or potential vendors who do not agree with the
conditions, specifications or scope of services or other requirements contained
in any procurement, whether by bid or request for proposal shall be afforded
the opportunity to protest the solicitation. Bidders or respondents who do not
agree with the County’s recommendation for bid or RFP award shall be afforded
the opportunity to protest the recommendation. The County Manager
shall establish procedures for vendor protests, including an appeal before the
Board for any protest related to a procurement that would exceed $50,000.00.
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Procedure 110.215 Protests by Vendors
A. Potential bidders
who do not agree with the conditions, specifications or scope of services, or
other requirements contained in any bid or RFP shall be afforded the
opportunity to protest the solicitation.
A.1. Protests of any bid or RFP solicitation must be
submitted to the Purchasing Office within the time frame stated in the bid/RFP
documents in order to be considered.
A.2. The Purchasing Manager, in consultation with the
user department and the Legal Services Office, shall determine the appropriate
method of response to the petitioner.
B. Bidders or respondents who do not agree with the
County's recommendation for bid or RFP award shall be afforded the opportunity
to protest the recommendation by submitting written notice to the Purchasing
Manager.
B.1. Such notice must be given within five working days
of the date the petitioner could reasonably be expected to have known of the
County's recommendation.
B.2. Protests made after formal award of a bid or
proposal shall not be allowed.
B.3. Bids or proposals not meeting the minimum published
requirements (including specifications and/or scope of service) are not subject
to protest.
C. The Purchasing Manager shall prepare and submit
written determination to the County
Manager recommending
either approval or disapproval of the petition. The petitioner shall be
furnished a copy of the written determination and recommendation.
D. The County Manager
shall review and either approve or disapprove the recommendation of the
Purchasing Manager. The petitioner shall be furnished a copy of such action.
D.1. The County Manager may employ any reasonable means
to reach a decision on the petition.
D.2. If the aggregate value of the award under protest is
less than $50,000.00, the decision of the County Manager
shall be final.
E. If the aggregate value of the award under protest is
$50,000.00 or more, and the petitioner desires to protest the decision of the County Manager,
the petitioner shall address written protest of the decision to the County Manager.
E.1. The County Manager shall schedule the protest for
Board of County Commissioners review and decision.
E.2. The decision of the Board of County Commissioners
shall be final.
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Policy 110.220 Suspension or Debarment of
Vendors
Johnson
County may suspend or debar
a vendor or potential vendor from participation in County purchasing
opportunities and practices upon a showing of just cause, and during the period
of suspension or debarment, the County shall reject any bid, proposal or other
offer by the vendor and shall return any submission to the suspended/debarred
vendor.
Just cause for suspension of a
vendor shall include:
1. Failure
to comply with the conditions, specifications or terms of a bid or proposal or
contract with the County including a recent record of unsatisfactory
performance in accordance with the terms of one or more contracts;
2. Commission
of any misrepresentation in connection with a bid or proposal;
3. Charged
by a court or competent jurisdiction with the commission of a criminal offense
as an incident to obtaining or attempting to obtain a public or private
contract or subcontract, or in the performance of such contract or subcontract.
If charges are dropped or the vendor found not guilty, the suspension shall be
lifted automatically upon notification and proof of final court disposition
provided to the County by the vendor;
4. Conviction
under state or federal statutes of embezzlement, theft, forgery, bribery,
falsification or destruction of records, receiving stolen property or any other
offense indicating a lack of business integrity or honesty which currently,
directly and seriously affects that vendor’s responsibility as a County
supplier. If charges are dismissed or the vendor found not guilty, the
suspension shall be automatically lifted upon written notification and proof of
final court disposition provided to the County by the vendor;
5. Conviction
under state or federal antitrust statutes arising out of the submission of bids
or proposals;
6. Vendor
becomes insolvent, has proceedings in bankruptcy instituted against it or
consolidates its debts or assigns over its estate or affects for payment
thereof or has a receiver appointed over its property; and
7. Any
other cause the department, County
Manager or Purchasing
Manager determines to be so serious or compelling as to materially and
adversely affect the responsibility of the business as a government contractor,
including but not limited to suspension by another government entity for
substantial cause.
Just cause for debarment shall include:
1. Failure
to fully comply with conditions, specifications, drawings, schedules or terms
of a bid, proposal or contract with the County;
2. Conviction
by or judgment obtained in a court of competent jurisdiction for commission of
offenses in connection with the vendor’s commercial enterprise. If the
conviction is reversed through the appellate process, the debarment shall be
immediately lifted upon written notification and proof of final court
disposition to the County from the vendor;
3. Conviction
for the commission of any fraud or act of collusion in connection with a bid,
quotation, proposal or other act incident to doing business with the County;
and
4. Inclusion
on Federal debarred vendor list.
The County Manager shall establish Purchasing Procedures,
consistent with this Policy, for the suspension and/or debarment of vendors,
including a procedure for an appeal to the County Manager
of any suspension or debarment action.
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Procedure 110.220 Suspension or Debarment of Vendors
A. The County Purchasing Manager at the direction of the County
Manager may suspend or debar for cause the right of a vendor to be included on
County bid lists and any subsequent bids or proposals during the tenure of the
suspension or debarment from that vendor shall be rejected by the County and
returned to the suspended/debarred vendor unopened.
B. Suspension – A vendor may be suspended for
any of the reasons that follow:
B.1. Failure to comply with the conditions,
specifications or terms of a bid or proposal or contract with the County
including a recent record of unsatisfactory performance in accordance with the
terms of one or more contracts.
B.2. Commission of any misrepresentation in connection
with a bid or proposal.
B.3. Charged by a court of competent jurisdiction with
the commission of a criminal offense as an incident to obtaining or attempting
to obtain a public or private contract or subcontract, or in the performance of
such contract or subcontract. If charges are dropped or the vendor found not
guilty, the suspension shall be lifted automatically upon notification and
proof of final court disposition provided to the County by the vendor.
B.4. Conviction under state or federal statutes of
embezzlement, theft, forgery, bribery, falsification or destruction of records,
receiving stolen property or any other offense indicating a lack of business
integrity or honesty which currently, directly and seriously affects that
vendor’s responsibility as a County supplier. If charges are dismissed or the
vendor found not guilty, the suspension shall be automatically lifted upon
written notification and proof of final court disposition provided to the
County by the vendor.
B.5. Conviction under state or federal antitrust statutes
arising out of the submission of bids or proposals.
B.6. Vendor becomes insolvent, has proceedings in
bankruptcy instituted against it or consolidates its debts or assigns over its
estate or affects for payment thereof or has a receiver appointed over its
property.
B.7. Any other cause the department, County Manager
or Purchasing Manager determines to be so serious or compelling as to
materially and adversely affect the responsibility of the business as a
government contractor, including but not limited to suspension by another
government entity for substantial cause.
C. Debarment
C.1. Failure to fully comply with conditions,
specifications, drawings, schedules or terms of a bid, proposal or contract
with the County.
C.2. Conviction by or judgment obtained in a court of
competent jurisdiction for commission of offenses in connection with the
vendor’s commercial enterprise. If the conviction is reversed through the
appellate process, the debarment shall be immediately lifted upon written
notification and proof of final court disposition to the County from the
vendor.
C.3. Conviction for the commission of any fraud or act of
collusion in connection with a bid, quotation, proposal or other act incident
to doing business with the County.
C.4 Inclusion on Federal debarred vendor list.
D. Purpose of Suspension
or Debarment - The County shall solicit offers from, award contracts to and
consent to subcontracts only with vendors known to be reliable, ethical and
responsible. To that end, the suspension or debarment of vendors from County
work that do not meet these criteria may be undertaken. The serious nature of
suspension or debarment requires that such sanction be imposed only when it is
in the best interest of the public and for the protection of the County and not
for purposes of punishment.
E.
Effects of Suspension and Debarment –- Suspended or debarred vendors are
excluded from contracts and departments or agencies shall not solicit offers
from, award contracts to or consent to subcontracts with these vendors. Such
vendors are also excluded from conducting business with the County as agents,
representatives, subcontractors or partners with other vendors.
F. Continuation of Current Contracts –
F.1. The suspension or debarment shall take effect in
accordance with the notice provided by the Purchasing Manager, except that if a
department continues contracts or subcontracts in existence at the time the
vendor was suspended or debarred, the suspension or debarment period shall
commence upon the conclusion of that contract and in the interim the vendor
shall not enter into any new County contracts.
F.2. Departments may not renew or otherwise extend the
duration of current contracts or consent to subcontracts with suspended or
debarred vendors unless the County determines that an emergency exists
justifying the renewal or extension.
G. Suspension or Debarment Procedures –
G1. Investigation and referral. The department or agency
using a specific vendor shall promptly investigate and prepare a written report
concerning a proposed suspension or debarment. This report shall be forwarded
to the County Manager stating with specificity the
facts supporting the request for suspension or debarment.
G2. Within five (5) days of receipt of the department or
agency request, the County
Manager, after reviewing
the report, may direct the Purchasing Manager to issue a notice of suspension
or debarment. The Purchasing Manager shall immediately advise the vendor by
certified mail with return receipt requested. The letter will contain the
following specific information:
G.2.a. Statement that suspension or debarment has been
imposed by the County effective upon receipt.
G.2.b. Detailed information as to the reason and causes
for the suspension or debarment in terms sufficient that the vendor will
understand the conduct or transaction(s) upon which the action is based.
G.2.c. The vendor may within twenty (20) days of notice,
present a written request for reconsideration including additional information
relating to the reason given in G2a for suspension or debarment. The Purchasing
Manager, in consultation with the Legal Department shall consider such
additional information in deciding whether the decision to suspend or debar
should be delayed or revised. If the original decision to suspend or debar is
determined to be proper and justified, the vendor shall be suspended or
debarred as planned.
G.3 Suspension/Debarment Duration
G.3.a. Suspension – A vendor may be suspended for a
minimum period of six (6) months if they are believed to be involved in any of
the activities listed in Section 110.220.B.
G.3.b. Debarment – A vendor may be debarred for a period
not to exceed five (5) years if after investigation, they are found to be
engaged in any of the activities listed in Section 110.220.C.
H. Appeal of Suspension or Debarment - Because circumstances
that led to a suspension or debarment can change over time, a suspended or
debarred vendor may at any time during the suspension or debarment period,
appeal to the County for reinstatement to the status of active vendor.
H.1. The term of suspension or debarment shall last until
the County reinstates the vendor either due to the suspension or debarment
period having elapsed or due to an accepted appeal of the period of suspension
or debarment.
H.2. A vendor wishing to be reinstated to the status of
active vendor shall submit a written request to the County Manager and shall
include a minimum of two references from other entities with whom they have
successfully conducted business since being suspended or debarred by the
County. The written appeal shall include specifics as to why the vendor
believes they should be reinstated including details as to how circumstances
have changed since the suspension or debarment was imposed by the County.
H.3. If, in the view of the County Manager, there is
reasonable justification for reinstatement, the appeal application will be
forwarded to the County Purchasing Manager to verify references and if
substantiated, to complete the reinstatement process. The Purchasing Manager
may seek advise of the Legal Department in making the final decision regarding
reinstatement.
H.4. The
reinstated vendor will be notified of the change in status to active vendor and
the vendor will be considered for quotes, bids and proposals on goods/services
solicited by the County from the date of reinstatement.
H.5. If, in the view of the County Manager,
the vendor’s appeal is not justified or sufficiently substantiated, the appeal
may be denied and the vendor will be notified immediately. The balance of the
suspension or debarment period will then be completed, unless a subsequent
appeal request prior to the conclusion of the suspension or debarment is deemed
to be acceptable.
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Policy # 110.225 Bonds
Unless otherwise approved by the
Purchasing Manager, the County will require bonds from bidders or contractors
doing business with the County through the competitive procurement process. The
County Manager shall establish Purchasing
Procedures specifying the types of bonds required and the manner in which the
bond requirements are satisfied.
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Procedures # 110.225 Bonds
A. There are three
major types of bonds used by the County in the competitive procurement process.
Those bonds, along with their utilization, are summarized below.
A.1.
Bid Bonds are used when bid security is required to ensure that the firm or
individual awarded a contract will subsequently enter into contract with the
County. A bid bond for projects up to $50,000 are no longer required. This
amendment would make the bid bond requirements consistent with the requirements
for formal procurement and advertising for projects greater than $50,000. NOTE:
This amendment to purchasing procedure WILL NOT affect the requirements of
performance and statutory bonds.
A.2.
Performance Bonds are used when a guarantee is required to ensure that a firm
or individual that has entered into contract with the County will complete the
project within the terms of the agreement.
A.3.
Labor and Material Payment Bonds (Statutory Bond) are used for all contracts
exceeding $40,000.00 entered into by the County for the purpose of making
public improvement, constructing any public building or making repairs on same.
The bonds are required by K.S.A. 60-1111 and insure the payment of all
indebtedness incurred for labor furnished, materials, equipment or supplies
used or consumed in connection with, or in or about, the construction,
improvements or repairs. These bonds are issued in favor of the State of Kansas and are filed
with the Clerk of the District Court.
B.
The above bonds require the appointment of a Kansas
resident agent and must be issued by an acceptable bonding company licensed to
do business in the state of Kansas.
C.
Checks or other security deposits shall not be accepted in lieu of the above
bonds unless specifically approved by the Purchasing Manager, or otherwise
allowed by Kansas
state statute, prior to the publication and distribution of the bidding
documents.
D.
Bid bonds, when required, are generally written in an amount equal to five
percent (5%) of the total amount bid while performance and labor and material
payment bonds are normally written in an amount equal to one hundred percent
(100%) of the awarded contract.
E.
Construction projects established to cost $40,000 or more require performance
and statutory bonds. Requirements for a bid bond are stated above under section
A.1.
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Policy # 110.230 Insurance
Unless otherwise approved by the
Purchasing Manager the County will require that successful bidders, through the
competitive procurement process, provide certificates of insurance to assure
that risks are prudently protected and the County’s insurance program will not
be adversely impacted losses or claims attributed to the contractor’s
operations, products, activities or services for the County. Insurance
requirements for specific bids and proposals will be based on an assessment by
the County Risk Manager. The County
Manager shall establish
Purchasing Procedures for ensuring that vendors, bidders, contractors, and
suppliers provide adequate insurance for all business conducted for the County.
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Procedures # 110.230 Insurance
A. Certificates of insurance shall be provided by the
successful bidder to assure that the County's insurance program will not be
called upon to respond to losses from, and that the contractor is financially
capable of responding to, claims resulting from the contractor's operations,
products, activities or services for the County.
B. Construction and service contractors should provide
evidence of commercial general liability, workers' compensation and automobile
liability coverage.
C. Professional services and environmental contractors
should provide evidence of professional liability, commercial general
liability, workers' compensation and automobile liability coverage.
D. The certificate of insurance shall be issued to:
Board of County Commissioners, Johnson
County, Kansas
c/o Risk Management
Johnson County Administration Building
111 South Cherry, Second Floor
Olathe, KS 66061-3441
E. The certificate should evidence a thirty (30) day
cancellation clause and the inclusion of the Board of County Commissioners, Johnson County, Kansas,
its officers, commissions, agents and employees as additional insureds.
F. Depending on the services requested in the
procurement, additional or specialty coverages or specific limits of coverage
may be required at the discretion of the Purchasing Manager. The amounts and
types of insurance required will be detailed in the bidding or purchase
document.
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Policy # 110.235 Federal/State Funds
When Federal or State grant funds are involved in competitive
purchases by the County, it shall be necessary for all bidders and suppliers to
comply with all applicable and pertinent Federal or State grant rules, statutes
and executive orders and their implementing regulations, or other requirements
as set forth in the Purchasing Procedures.
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Revision Table – Johnson County
Purchasing Procedures
Revision 1, dated Feb. 23, 2006
1.
Section
#110.150 Term and Supply Contract – New section added to procedures outlining a
requirement to submit all purchases on Term and Supply Contracts in excess of
limits specified in Section #110.135, paragraph G of Purchasing Procedures to
BOCC, unless otherwise approved as part of a project.
2.
Section
#110.165 Competitive Procurements – Paragraph B.4.
Revised second sentence to clarify that approval by the
Board of County Commissioners or other appropriate governing board is required
only for contracts resultant from an RFP not for the RFP process itself.
Added sentence at end of paragraph to clarify that RFPs
are not required for professional services for (1) an approved vendor under a
Term and Supply contract or (2) for second or later phases of a project for
which the original services were obtained through an RFP.
3.
Section
#110.165 Competitive Procurements – Paragraph B.4.a – Revision to outline a requirement
to convert Evaluation Committee member numerical scores on proposals to
rankings for selection of short listed firms. Also outlines adding of cost
points to rankings if interviews are waived by mutual consent of Purchasing
Administrator and Evaluation Committee.
4.
Section #110.165 Competitive Procurements –
Paragraph B.4.b – Revision to outline methods for breaking rankings ties
between two or more firms after interview evaluations.
Revision 2,
dated December 6, 2007
1 Section
#110.140 Contract Signature Authority – paragraph D added or designee at
end of sentence. Paragraph E added or department head at end of
sentence.
2 Section
#110-160 Unauthorized Purchases – Added paragraph C regarding Shipment
of goods and services to locations other than County places of business or
authorized County work sites. Added paragraph D regarding the
prohibition of the use of “store accounts” for purchasing of goods or services
for County use.
3 Section
#110.180 Exceptions to Competition – paragraph A.14 for existing real property
added lease/rental as exception options. Previously included purchase of
existing real property as only option.
4 Section
#110-200 Purchase Orders – paragraph C corrected section reference at end of
sentence to #110.170. Reference was previously incorrectly shown as
Section #110.310.
5 Section
#110.215 Protests by Vendors – paragraph B.1 changed “should to “must”
regarding time frame for vendors to protest bid recommendations or awards.
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Revision 3, dated September 19, 2008
Added paragraph B5 to Section 110.165 “Competitive
Procurements” to allow Reverse Auction Electronic Bidding.
Revision 4, dated May 22, 2009
Section #110.180 Exceptions to Competition – changed
paragraph A. 15 to paragraph A. 16 and added new paragraph A. 15 for insurance
coverage where the competition for, and acquisition of, is acquired through
authorized agents, brokers or third party administrators (TPA).
Section $110.220 Correct section references in paragraphs
G3a and G3b.
Revision
Table – Johnson Purchasing Policies
Revision 1, dated August 14, 2008
Added paragraph 11 to Section 110.175 “Exemptions from
Competition” to allow litigations expense through Chief Council to be exempt
from competitive process. Passed by Board of County Commissioner Action in
regular meeting of August 14, 2008.