HomeMy WebLinkAbout95.PPP Procurement Process Presentation 2015 �O �v
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Orange County Sanitation
ORANGE COUNTY SANITATION DISTRICT'S
PROCUREMENT PROCESS
Marc Dubois , C . P. M .
Contracts, Purchasing & Materials
Management
OCSD CONTRACTS
& PURCHASING
• OCSD's Contracts & Purchasing
staff are responsible for
maintaining processes to ensure
integrity is upheld in the
expenditure of public funds.
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MD is the recipient of the National
Achievement of Excellence in Procurement
Award for 13 consecutive years.
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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
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Orange County Sanitation
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.
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PROCUREMENT O
Three basic types:
■ Professional Design Services
■ public
Works Construction
. Goods and Services
Each is governed by State Law and District policy
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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
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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 Bidding required for purchases > $5,000
Award to lowest bidder ( Responsive & Responsible)
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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) .
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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.
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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.
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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.
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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.
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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
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RECAP
o Professional Design Services
■ Most Qualified Firm
o Public Works Construction
■ Low Bid
o Goods and Services
■ Low Bid ( NIB)
■ Best Value ( RFP)
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QUESTIONS
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. . . 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