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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
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.
Orange County Sanitation I for 1
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
(07) Orange County Sanitation District We're here for you,
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.
Orange County Sanitation District We're here for you.
PROCUREMENT OVERVIEW
Three basic types:
■ Professional Design Services
■ Public Works Construction
■ Goods and Services
Each is governed by State Law and District policy
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
Vr
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)
Orange County Sanitation District We're here for you.
THE -TOOLS
o Notice Inviting Bids (NIB)
sealed bids.
■ Procurement practice of soliciting responsible bidder.
• Awarded to lowest responsive,
o Requests for proposals (RFP)Solicit prop m
lex, non-
standard goods and services.
(experience, financial
• Award based bapprolue a h� copt) .
stability, delivery,
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.
Orange County Sanitation District We're here for you,
Notice Inviting Bids
Overview
NOTICE INVITING BIDS ( NIB)
o A written description that specifies what MD 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.
Orange County Sanitation District We're here for you.
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.
Orange County Sanitation District We're here for you,
OVERVIEW OF RFP PROCESS
1. Need is identified, scope of work is developed.
z. Evaluation Criteria are developed. Typically includes:
■ Qualifications of Firm
■ Proposed Staffing and Project Organization
■ Work Plan
■ Interviews & Presentations
■ Cost
• RFP identifies the maximum number of points for cost.
• Lowest cost proposal receives the maximum points allowed.
• Formula/ratio method used to objectively score cost for each
proposal.
• Cost is not the sole factor for award.
�.,
Orange CountyDistrict We're here for you,
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.
�.a
Orange County Sanitation District
OVERVIEW OF RFP PROCESS
(cont. )
4. RFP documents posted for advertisement.
s. 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.
so. 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 .
Orange County Sanitation District We're here for you.
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
07 Orange County Sanitation District
RECAP
o Professional Design Services
■ Most Qualified Firm
o Public Works Construction
■ Low Bid
o Goods and Services
■ Low Bid ( NIB)
■ Best Value ( RFP)
JL
QUESTIONS
Orange County Sanitation District We're here for you.
CClll // i
Cost & Rrl , � F orniill
(A-s-s 1 ifing Cost 113 at 30%)
mm
$300,000 (250,000 / 300000) X 300
(Lowest Bid/Vendor Price)X 300
$250,000 250,000 / 250,000) X 300
(Lowest Bid/Vendor Price)X 300
$275,000 (250,000 / 275000) X 300
(Lowest Bid/Vendor Price)X 300