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HomeMy WebLinkAbout97.Procurements - M Dubois Admin 7-9-14 �O �v � � O s Q � Orange County Sanitation ORANGE COUNTY SANITATION DISTRICT'S PROCUREMENT PROCESS Marc Dubois , C . P. M . Contracts, Purchasing & Materials Management OCSD CONTRACTS & PURCHASING • An effective procurement program reduces government cost r�`I and improves the quality and timeliness of the services provided. • OCSD's Contracts & Purchasing staff are responsible for maintaining processes to ensure integrity is upheld in the expenditure of public funds. MD is the recipient of the National Achievement of Excellence in Procurement Award for 11 consecutive years. JHy S+NII .Oy 2i o Orange Count Sanitation District for you. F_ ETHICS IN PROCUREMENT The District's Ethics policy states that Contracts & Purchasing must : o Strive to obtain maximum value for each dollar of expenditure. o Refuse to accept any form of commercial bribery and prevent any appearance of doing so. o Grant all bidders/proposers equal consideration o Conduct ourselves with fairness and dignity The complete Ethics Policy can be found on our external website : http://ocsd .com/businesses/purchasing JHy S+NII .Oy 2i o Orange County Sanitation District for you. F_ ENE PUBLIC PROCUREMENT Procurement in the public sector is specified, controlled by laws, codes, and policies. The three essential elements are: o Accomplish procurement using the most effective competitive process. o Base selection on lowest price or best value; o Treat bidders equally and fairly. Pay Sa NII . Orange County Sanitation District We're here for you. 0 PROCUREMENT OVERVIEW Three basic types: ■ Professional Design Services ■ Public Works Construction ■ Goods and Services Each is governed by State Law and District policy JHy S+NII .Oy 2i o Orange County Sanitation District for you. F_ ENE PROFESSIONAL DESIGN SERVICES o Follows California Government Code (Mini-Brooks Act) o Request for Proposals are Advertised o Evaluate & Rank Proposals based on qualifications o Negotiate "fair and reasonable fee" with top ranked firm PUBLIC WORKS CONSTRUCTION o Follows California Public Contract Code o Publicly Advertise for bids (twice) o Awarded to lowest bidder ( Responsive & Responsible) GOODS AND SERVICES o Goods and services range from chemicals, information technology, environmental services, trucks, cranes and maintenance equipment. Over 680 different classifications of goods and services. o Follows OCSD policy & procedures per Calif. Govt. Code o Bidding required for purchases > $5,000 Award to lowest bidder ( Responsive & Responsible) JHy S+NII .Oy 2i o Orange County Sanitation District for you. F_ ENE THE TOOLS o Notice Inviting Bids (NIB) ■ Procurement practice of soliciting sealed bids. ■ Awarded to lowest responsive, responsible bidder. o Requests for proposals (RFP) ■ Solicit proposals for sophisticated/complex, non- standard goods and services. ■ Award based on best value (experience, financial stability, delivery, approach, cost) . JHy S+NII .Oy 2i o Orange Count Sanitation District for you. F_ THE TOOLS Cont. o Sole Source ■ Parts or services that may only be obtained from a single source. ■ Sole sources must be justified and verifiable. ■ Not preferred, but used as last resort. o Request for Information ( RFI) ■ Procurement practice in which OCSD contacts the vendor community to seek further information regarding their products, technologies, and services. 0 exit r Orange County Sanitation District We're here for you. Notice Inviting Bids Overview NOTICE INVITING BIDS ( NIB) o A written description that specifies what OCSD wants. o Award is made solely on basis of the lowest cost. (Responsive & Responsible) o Negotiations are not permitted . o Usually for purchase of supplies, equipment and services. Request for Proposals Overview REQUEST FOR PROPOSAL ( RFP) o A written description that solicits various approaches to a complex and sophisticated need. o Negotiations may be necessary and are permitted per policy. o Balances cost with other important factors such as: ■ Project Approach ■ Technical skill, expertise or capability ■ Performance & quality ■ Availability & scheduling ■ Environmental considerations All factors combined result in a Best Value award. JHy S+NII .Oy 2i o Orange County Sanitation District for you. F_ ENE OVERVIEW OF RFP PROCESS 1. Need is identified, scope of work is developed. 2. Evaluation Criteria are developed. Typically includes: ■ Qualifications of Firm ■ Proposed Staffing and Project Organization ■ Work Plan ■ Interviews & Presentations ■ Cost Ei RFP identifies the maximum number of points for cost. Ei Lowest cost proposal receives the maximum points allowed. Ei Formula/ratio method used to objectively score cost for each proposal. cyst is not the sole factor for award. JHy S+NII .Oy 2i o Orange County Sanitation District for you. F_ ENE OVERVIEW OF RFP PROCESS Cont. 3. Evaluation team members chosen . ■ The committee is composed of subject matter experts that may include evaluators outside of the District. ■ Each committee member signs a confidentiality and a non-conflict of interests agreement. ■ Each committee member commits to participation and time commitment. JHy S+NII .Oy 2i o Orange County Sanitation District for you. F_ ENE OVERVIEW OF RFP PROCESS (cont. ) 4. RFP documents posted for advertisement. 5. Pre-proposal conference is held . 6. Proposals are received . 7. Evaluators review proposals and attend interviews. s. Evaluators score proposal and final tabulation submitted for recommended award . OVERVIEW OF RFP PROCESS (cont. ) 9. A Best and Final Offer (BAFO) may be solicited from proposer. lo. If negotiations are successful, a notice of recommendation to award is issued and proposers notified . 11. Board/Committee agenda report containing recommendation for award is submitted. 12. Board/Committee acts on recommendation. APPROVAL THRESHOLDS Per Ordinance No. OCSD-44 Article 7, the following delegations of authority to award contracts applies to the following: ➢ Purchases up to $100k = General Manager ➢ Purchases $100-$200k = Standing Committees ➢ Purchases greater than $200k = Board of Directors JHy S+NII .Oy 2i o Orange Count Sanitation District for you. F_ NE RECAP o Professional Design Services ■ Most Qualified Firm o Public Works Construction ■ Low Bid o Goods and Services ■ Low Bid ( NIB) ■ Best Value ( RFP) �JH�y S+NII .�Oy 2i o Orange County Sanitation District for you. F_ ENE QUESTIONS y• Orange County Sanitation District We're here for oil. y -'a 1-f 1 -o I o ( StIn1llI7 C, 0 s Aw oiz,;f1 a 3O'Yo ) . . . I I Calculation of Points $300,000 (250,000 / 300,000) X 300 • (Lowest Bid /Vendor Price) X 300 $250,000 2501000 / 250,000) X 300 (Lowest Bid /Vendor Price)X 300 $275,000 (250,000 / 275,000) X 300 (Lowest Bid/Vendor Price)X 300