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HomeMy WebLinkAbout96.Item 3 PPP 04-11-18 Administration Committee - Ordinance UpdatePresented by: Marc Dubois, C.P.M. Contracts, Purchasing, and Materials Management PURCHASING ORDINANCE UPDATES HIGHLIGHTS OF THE NEW ORDINANCE •Raises thresholds on master contracts to address the high volume and projected increases in repair and engineering projects •Further defines the roles and responsibilities for procurement processes and contract administration •Allows for smart contracting by extending the life of capital assets through smaller, faster repair projects instead of large capital projects BID/AWARD THRESHOLD CHANGE –GOODS AND SERVICES CURRENT •Less than $5,000 –one quote required •Greater than $5,000 –3 quotes required PROPOSED •Less than $10,000 –one quote required •Greater than $10,000 –3 quotes required BENEFITS TO BID/AWARD THRESHOLD CHANGE •Accelerates the procurement process for all departments. •Supports OCSD’s planned maintenance environment by accelerating procurements for preventive and corrective maintenance work. •Aligns OCSD with other notable agencies. MASTER CONTRACTS AND TASK ORDERS •Request For Proposal (RFP) competitive process is conducted for Master Contracts •Board of Directors approves the Master Contracts •Task Orders originating from the Master Contracts are competitively bid or proposed per policy •The General Manager approves the award of the Task Orders up to the amount authorized in the Purchasing Ordinance BID/AWARD THRESHOLD CHANGE -MAINTENANCE & REPAIR TASK ORDERS CURRENT •Task Order award maximum: $100,000 •Includes base award + any change orders PROPOSED •Task Order award maximum: $300,000 •Includes base award + any change orders •Requesting General Manager authority to approve and award task orders, including change orders up to $300,000 •All new Task Order procurements between $50,000 and $300,000 will be reported to the Board of Directors on a quarterly basis BENEFITS TO BID/AWARD THRESHOLD CHANGE •Assists OCSD’s operating departments by accelerating the completion of planned and future projects, while maintaining competition. •Increases the amount of projects that can be completed using these Task Orders by over 40%. •Allows for bundling of small projects to reduce project costs and maximize staff resources. BID/AWARD THRESHOLD CHANGE -PROFESSIONAL DESIGN SERVICES CURRENT •Master Contract(s) maximum = $400,000 per year •Work < $200,000 = Accelerated Task Order Proposal Process •Work > $200,000 = Extensive Proposal Process PROPOSED •Master Contract(s) maximum = $600,000 per year •Work < $300,000 = Accelerated Task Order Proposal Process •Work > $300,000 = Extensive Proposal Process •General Manager authority to approve and award task orders up to $300,000 •Ability to select 1 firm for work < $25,000 •Assists OCSD’s Engineering department by accelerating the completion of current, planned, and future projects, while maintaining competition. •Will attract additional needed Engineering consultants. •Master Contract threshold increase ensures availability of qualified firms for the streamlined task order award process versus the extensive formal process. BENEFITS TO BID/AWARD THRESHOLD CHANGE QUESTIONS ?