HomeMy WebLinkAboutGM Purchasing Policy v5 Ref. in Ordinance OC SAN-61
Orange County Sanitation
District
General Manager Purchasing
Policy
Version
Number:
5.0
Approved By:
General Manager
Approved
Date:
Subject: Purchasing Policies and
Procedures
Effective Date: 8/25/2023
Contents
Article 1. General Provisions .............................................................................. 5
Section 1.1 Purpose and Scope ............................................................................. 5
Section 1.2 Definitions ............................................................................................ 5
Section 1.3 The Purchasing Manager .................................................................... 5
Section 1.3.1. Duties..................................................................................................... 5
Section 1.3.2. Authority to Reject Requisition Requests ............................................... 6
Section 1.3.3. Authority to Revise Contracts Based on Sales, Transfers,
Reorganization and Name Changes ...................................................... 7
Section 1.3.4. Delegation of the Purchasing Manager’s Authority ................................ 7
Section 1.4 Written Determinations ....................................................................... 7
Section 1.5 Bonds and Contract Security ............................................................. 8
Section 1.6 Public Access to Procurement Documents ...................................... 8
Section 1.7 Disposition of Bids or Proposals ....................................................... 8
Section 1.8 Sole Source Procurement ................................................................... 9
Section 1.8.1. Conditions for Use of Sole Source Procurement ................................... 9
Section 1.8.2. Negotiation in Sole Source Procurement ............................................... 9
Section 1.8.3. Record of Sole Source Procurement ..................................................... 9
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Section 1.9 Emergency Procurements .................................................................. 9
Section 1.9.1. Scope of Emergency Procurements ...................................................... 9
Section 1.10 Employment of Former Employees.................................................. 10
Article 2. Goods and Services .......................................................................... 10
Section 2.1 General ............................................................................................... 10
Section 2.1.1. Selection of Contract Types ................................................................. 10
Section 2.2 Convenience Blanket Purchase Orders........................................... 10
Section 2.3 Multi-Year Contracts.......................................................................... 11
Section 2.3.1. Solicitation ........................................................................................... 11
Section 2.3.2. Cancellation ......................................................................................... 12
Section 2.3.3. Incremental Award ............................................................................... 12
Section 2.4 Competitive Bids ............................................................................... 12
Section 2.4.1. Specifications ....................................................................................... 12
Section 2.4.2. Mistakes............................................................................................... 14
Section 2.4.2.1. Mistakes Discovered After Opening but Before Award ................ 14
Section 2.4.2.2. Mistakes Discovered After Award ................................................ 15
Section 2.4.2.3. Determinations Required ............................................................. 15
Section 2.4.3. Responsibility ....................................................................................... 15
Section 2.4.4. Determination of Lowest Bidder ........................................................... 15
Section 2.4.5. Notice of Award ................................................................................... 16
Section 2.5 Multi-Step Sealed Bidding for Goods and Services ....................... 16
Section 2.5.1. Definition .............................................................................................. 16
Section 2.5.2. Conditions for Use ............................................................................... 17
Section 2.5.3. Pre-Bid Conferences in Multi-Step Sealed Bidding .............................. 17
Section 2.5.4. Step One.............................................................................................. 17
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Section 2.5.5. Mistakes During Multi-Step Sealed Bidding ......................................... 19
Section 2.5.6. Step Two .............................................................................................. 19
Section 2.6 Competitive Proposals ...................................................................... 20
Section 2.6.1. Content of Requests for Proposals ...................................................... 20
Section 2.6.2. Notice................................................................................................... 20
Section 2.6.3. Late Proposals ..................................................................................... 20
Section 2.6.4. Receipt of Proposals ............................................................................ 20
Section 2.6.5. Evaluation of Proposals ....................................................................... 21
Section 2.6.6. Discussions with Individual Proposers ................................................. 21
Section 2.6.7. Mistakes............................................................................................... 21
Section 2.7 Master Contracts for Maintenance and Repair Services ................ 22
Article 3. Professional Services ....................................................................... 23
Section 3.1 General Requirements ...................................................................... 23
Section 3.1.1. Solicitation of Proposals....................................................................... 23
Section 3.1.2. Contents of Request for Proposals and Request for
Qualifications ....................................................................................... 23
Section 3.1.3. Evaluation Committee .......................................................................... 23
Section 3.1.4. Negotiations ......................................................................................... 24
Section 3.1.5. Documentation ..................................................................................... 24
Section 3.1.6. Master Contracts for Professional Services ......................................... 24
Section 3.1.7. Master Contracts: Professional Services Qualified Lists ...................... 24
Article 4. Professional Design and Related Services ..................................... 24
Section 4.1.1. Master Contracts for Professional Design and Related Services ......... 24
Article 5. Public Works, Sewerage Maintenance, and Repair Work .............. 24
Article 6. Protests .............................................................................................. 25
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Section 6.1 Solicitation Phase Protests .............................................................. 25
Section 6.1.1. General Provisions .............................................................................. 25
Section 6.1.2. Evaluation and Determination .............................................................. 25
Section 6.2 Award Protest .................................................................................... 26
Section 6.2.1. General Provisions .............................................................................. 26
Section 6.3 Appeal Process .................................................................................. 26
Section 6.4 Protest Requirements and Timelines............................................... 26
Article 7. Delegation of Authority to Make Purchases ................................... 26
Section 7.1 Original Contracts, Contingencies, and Renewals ......................... 26
Section 7.1.1. Delegation to Purchasing Manager ...................................................... 26
Section 7.1.2. Co-Signatures ...................................................................................... 27
In addition to the signature of the Delegated Authority: ........................................ 27
Section 7.1.3. Delegation of Authority ........................................................................ 27
Section 7.1.4. Contingency Release ........................................................................... 28
Section 7.2 Not Used ............................................................................................. 28
Section 7.3 Amendments, Change Orders, Renewals, Time Extensions and
Assignments ...................................................................................... 28
Section 7.4 Change Orders to Public Works Contracts ..................................... 29
Section 7.5 Procard ............................................................................................... 29
Article 8. Revision History ................................................................................ 29
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Article 1. General Provisions
Section 1.1 Purpose and Scope
Section 1.04 of OC San’s Purchasing Ordinance (OC SAN-61) requires the General
Manager to adopt policies, rules, and guidelines governing the purchase of Goods and
Services, and the award of Contracts for Public Works Projects. The General Manager
hereby adopts these Policies and Procedures pursuant to Section 1.04 of the Purchasing
Ordinance. These Policies and Procedures apply to all OC San Staff.
Section 1.2 Definitions
Words and terms defined herein and in Article 9 of the Purchasing Ordinance have
the same meanings in these Purchasing Policies and Procedures, unless the use of a word
or term clearly requires a different meaning, or a different definition is prescribed for a
particular section or portion thereof.
Section 1.3 The Purchasing Manager
Section 1.3.1. Duties
Under Section 1.06(A) of the Purchasing Ordinance, the Purchasing Manager is
required to procure, or supervise the procurement of, all Goods, Services, and Public
Works Projects purchased by OC San, and supervise and control inventories of supplies
and materials. In addition, the Purchasing Manager will:
(a) Prepare administrative regulations for the internal management and operation
of the Purchasing Division, the warehousing of inventories, and the disposition
of surplus property;
(b) Negotiate Contracts for the purchase of supplies, services, materials, and
equipment, and recommend their approval;
(c) Submit to General Counsel for review or approval, as necessary, Contracts,
purchase orders, and other related documents;
(d) Prepare and adopt forms that are reasonably necessary for the
implementation of OC San’s Purchasing Ordinance and these Policies and
Procedures;
(e) Keep informed of current developments in the field of purchasing and
Contracts, including but not limited to prices, market conditions, and new
products;
(f) Review and recommend changes to specifications to establish minimum
standards for all purchases;
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(g) Supervise the inspection of all supplies, services, materials, and equipment
purchases to ensure conformance with specifications;
(h) Exercise custody and control of all inventories and surplus property;
(i) Maintain records needed for the efficient operation of the Purchasing Division
as required by law and OC San policy;
(j) Retain custody of all executed Contracts other than those approved by the
Board of Directors. The Purchasing Manager will retain all original purchase
orders in accordance with OC San’s record retention policy;
(k) Discourage uniform bidding and endeavor to obtain full and open competition
to the extent possible on all purchases and sales; and
(l) Receive Requisition(s). Requisitions up to $25,000 may be accompanied by
a single quote obtained by OC San staff, which may be used for order
placement, as approved by the Purchasing Manager. Requisitions greater
than $25,000 may be accompanied by a single quote obtained by OC San
staff for estimating purposes, as approved by the Purchasing Manager.
(m) Ensure Clearinghouse approvals have been obtained in accordance with the
Clearinghouse Guidelines.
Section 1.3.2. Authority to Reject Requisition Requests
The Purchasing Manager may return a request for procurement filed by a
Department Director if the Purchasing Manager determines that he or she requires
additional information to process the request.
The Purchasing Manager may reject a request for procurement if the Purchasing
Manager determines that the proposed procurement is clearly not in the best interest of OC
San. A proposed procurement may not be in the best interest of OC San, for example, if:
(a) the request can be satisfied from existing OC San inventory, OC San
Contracts or other procurement options;
(b) the request exceeds OC San’s needs;
(c) the supplies, services, or construction requested could be procured more
economically at a different time without detriment to OC San; or
(d) the quality requested is inconsistent with OC San standards and usage.
The Purchasing Manager will consult with the Department Director before rejecting
any request for procurement. The Purchasing Manager will provide the reasons in support
of any rejection.
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Section 1.3.3. Authority to Revise Contracts Based on Sales, Transfers,
Reorganization and Name Changes
The Purchasing Manager may revise Contracts and related records to reflect the sale,
transfer, or reorganization of a Contractor’s business, or a change in the Contractor’s name
for doing business, as long as all other terms, conditions and scope elements of the original
Contract remain the same. In the event that there are inconsequential changes proposed in
the terms, conditions or scope elements of the Contract, the Purchasing Manager may
elect to approve the proposed changes. For material changes, the new form of Contract will
require the approval of the appropriate awarding authority.
The Purchasing Manager may approve an assignment of a purchase order or
Contract by one Contractor to another if: (1) the Contract does not prohibit assignment; (2)
the Contract assignment does not require approval of the Board of Directors; and (3) the
assignment, in the reasonable determination of the Purchasing Manager, does not conflict
with the best interest of OC San. Any such approval must be in writing. If a purchase order
is being assigned the assignment must be made through a change to the purchase order.
If a Contract is being assigned, the assignment must be made through a Contract
Amendment/Change Order and a change to the purchase order. The form of assignment
must be consistent with OC San recognized purchasing and accounting principles and
practices.
Section 1.3.4. Delegation of the Purchasing Manager’s Authority
The Purchasing Manager may delegate his or her authority to employees within the
Purchasing Division, and/or to employees in other Departments, as he or she deems
appropriate in the interest of efficient administration. Any such delegation will be in writing,
and must describe, at a minimum:
(a) the activity or function authorized;
(b) any limits or restrictions on the exercise of the delegated authority;
(c) whether the authority may be further delegated; and
(d) the duration of the delegation.
Section 1.4 Written Determinations
Each written determination required by the Purchasing Ordinance and/or these
Purchasing Policies and Procedures must set forth the relevant facts and the reasoning
supporting the determination. Each such written determination will be kept in the
appropriate solicitation or Contract file, in accordance with OC San’s records retention
policy.
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Section 1.5 Bonds and Contract Security
Bid bonds, performance bonds, payment bonds (labor and material) and/or other
forms of security may be required for Contracts for Goods and Services as the Purchasing
Manager deems advisable to protect the interest of OC San. Any such requirement must
be set forth in the Notice Inviting Bids or the Request for Proposals. Bid bonds and
performance bonds should be used in addition to, not in lieu of, a determination that a
bidder or proposer is responsible.
Per California Civil Code OC San is required to secure a payment bond (labor and
material) from direct Contractors performing Public Works Projects and Services involving
construction or repair work where the expenditure exceeds $25,000.
Bid bonds, performance bonds and payment bonds are required for all Public Works
Contracts.
Section 1.6 Public Access to Procurement Documents
Documents generated in connection with the procurement process will be made
available to the public to the extent required by the California Public Records Act.
In accordance with applicable law, OC San may keep confidential proposals
received in response to a Request for Proposals until the proposer executes a Contract
with OC San or a Contract is presented to the Board or Standing Committees for approval,
in order to:
(a) protect OC San’s bargaining position in relation to the Contractor(s) ultimately
selected;
(b) insulate the evaluation committee from outside political pressure; and/or
(c) ensure that proposers do not appropriate innovative solutions presented in
one or more competing proposals.
Competitive Sealed Bids let to lowest responsive and responsible bidders are public
once sealed bids are opened.
Section 1.7 Disposition of Bids or Proposals
When OC San rejects bids or proposals or cancels a solicitation after bids or pro-
posals are received, all the bids or proposals which have been opened will be retained in
OC San’s web-based system.
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Section 1.8 Sole Source Procurement
Section 1.8.1. Conditions for Use of Sole Source Procurement
If a Department Director desires to pursue a Sole Source Procurement, the
Requisition must explain how the Goods and/or Services to be acquired are (1) unique
based on their quality, durability, availability, fitness, or qualification for a particular use, or
(2) only available from one source. This section does not apply to Public Works Projects,
which must comply with the limitations of the Public Contracts Code. A Sole Source
Procurement may be appropriate in certain circumstances such as but not limited to the
following:
(a) OC San requires equipment, accessories, or replacement parts that are
compatible with existing equipment;
(b) OC San desires to purchase a proprietary Good or Service;
(c) OC San requires services from a public utility;
(d) emergencies or time sensitive procurements.
Section 1.8.2. Negotiation in Sole Source Procurement
In connection with any Sole Source Procurement, the Purchasing Manager will
negotiate with the Contractor, as appropriate, as to price, delivery, and other Contract
terms.
Section 1.8.3. Record of Sole Source Procurement
The Purchasing Manager will maintain a record of each Sole Source Procurement
setting forth the following information:
(a) the Contractor's name;
(b) the amount and type of each Contract;
(c) a listing of the supplies, services, or construction procured under each
Contract;
(d) the identification number of each Contract file; and
(e) the justification memo submitted by the requesting Department.
Section 1.9 Emergency Procurements
Section 1.9.1. Scope of Emergency Procurements
In the event that OC San pursues an emergency procurement, the procurement will
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be limited to those Goods, Services, or Public Works items necessary to respond to the
emergency.
Section 1.10 Employment of Former Employees
Guidance on the employment of former employees can be found in the OC San Personnel
Policies and Procedures Manual, Policy 1.4 Recruitment and Selection, Section 7.0.
Article 2. Goods and Services
Section 2.1 General
Section 2.1.1. Selection of Contract Types
The selection of an appropriate Contract type depends on factors such as the
nature of the Goods or Services to be procured, the uncertainties which may be involved in
Contract performance, and the extent to which OC San or the Contractor is to assume the
risk of the cost of performance of the Contract. Contract types differ in the degree of
responsibility assumed by the Contractor.
OC San may consider the following factors in selecting the type of Contract:
(a) the type and complexity of the Good or Service being procured:
(b) the difficulty of estimating performance costs such as the inability of OC San
to develop definitive specifications, to identify the risks to the Contractor
inherent in the nature of the work to be performed, or otherwise to establish
clearly the requirements of the Contract;
(c) the administrative costs to both parties;
(d) the degree to which OC San must provide technical coordination during the
performance of the Contract;
(e) the effect of the choice of the type of Contract on the amount of competition to
be expected;
(f) the stability of material or commodity market prices or wage levels;
(g) the urgency of the requirement; and
(h) the length of Contract performance.
Section 2.2 Convenience Blanket Purchase Orders
Purchasing Manager may issue blanket purchase orders for recurring purchases of
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miscellaneous supplies and services that:
(a) have been competitively bid because the Purchasing Manager determines it is
in the best interests of OC San to issue a blanket order;
(b) are for miscellaneous supplies, services, materials and equipment where such
purchase may be procured from a single vendor during the period as specified
by the Purchasing Manager, without observing the procedures prescribed in
Article 2. A blanket order may be utilized if, in the Purchasing Manager’s
discretion, it is determined that such blanket purchase orders are either cost
favorable to OC San or will result in a more expeditious or efficient
procurement of such items; or
(1) Are non-recurring low value items and services where the exact
nature of the requirement cannot be determined at the time of
issuing the blanket order;
(2) Piecemealing is prohibited. Purchases shall not be artificially
divided so as to keep each purchase amount approximately
$25,000 or less
(c) Purchasing Manager has determined the vendor is uniquely qualified to
provide specialized goods or perform specialized services.
Convenience blanket purchase orders shall be in conformity with the spirit and intent
of this policy.
Section 2.3 Multi-Year Contracts
Section 2.3.1. Solicitation
Each solicitation for a multi-year Contract must state:
(a) the amount of Goods or Services required for the proposed contract period;
(b) that a unit price will be given for each Good or Service, and that such unit
price will be the same throughout the contract term (except to the extent price
adjustments may be provided for in the solicitation and resulting Contract);
(c) that the multi-term Contract will be cancelled if funds are not appropriated or
otherwise made available to support continuation of performance in any
contract period succeeding the first; however, this does not affect either OC
San’s or the Contractor's rights under any termination clause in the Contract;
(d) whether bidders or proposers may submit prices for:
(1) the first contract period only;
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(2) the entire time of performance only; or
(3) both the first contract period and the entire time of performance;
(e) that a multi-term Contract may be awarded and how award will be determined
including, if prices for the first contract period and entire time of performance
are submitted, how such prices will be compared; and
(f) the Contractor will be compensated for the Goods delivered/accepted and/or
the amount of work performed to the effective date of cancellation.
Section 2.3.2. Cancellation
"Cancellation," as used in multi-term contracting, means the cancellation for some or
all of the requirements for the remaining portion of the Contract due to factors as identified
by the Purchasing Manager.
Section 2.3.3. Incremental Award
An incremental award is an award of portions of a definite quantity requirement to
more than one Contractor. Each portion is for a definite quantity and the sum of the
portions is the total definite quantity required unless specified. An incremental award may
be used only when awards to more than one bidder or proposer for different amounts of the
same item are necessary to obtain the total quantity or the required delivery.
If an incremental award is anticipated, OC San will reserve the right to make such an
award and the criteria for award will be stated in the solicitation.
The Purchasing Manager will make a written determination setting forth the reasons
for the incremental award, which will be made a part of the procurement file.
Section 2.4 Competitive Bids
Section 2.4.1. Specifications
Specifications must, to the extent practicable, emphasize functional or performance
criteria while limiting specific manufacturers’ design or other detailed physical descriptions
to those necessary to meet the needs of OC San. To facilitate the use of such criteria,
Departments will endeavor to include as a part of each Requisition the principal functional
or performance needs to be met.
It is the general policy of OC San to procure standard commercial products
whenever practicable. In developing specifications, accepted commercial standards will be
used and unique requirements will be avoided, to the extent practicable.
Purchasing Manager may issue Notices Inviting Bids for purchases of goods or
services in accordance with the requirements stated below:
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(a) Notice Inviting Bids. A Notice Inviting Bids shall be published and include a
general description of the articles or services to be purchased or sold, shall
state where bid forms and specifications may be secured, and the time and
place for opening bids.
(b) Published Notice. The Notice Inviting Bids shall set a date for the opening of
bids. The publication or posting of the Notice shall be at least ten (10) days
before the date of opening the bids. Notice may be published in a newspaper
of general circulation, printed and published within the Sanitation District’s
jurisdiction; or by electronic bulletin board procedures designed to reach the
industry or market of supply; OC San’s on-line vendor database; or through
OC San’s internet site.
(c) Contractor’s List. Purchasing Manager may also solicit sealed bids, or
receive bids electronically, from all responsible prospective Contractors
whose names are on the Bidder’s List maintained by OC San, or who have
requested their names to be added thereto.
(d) Bulletin Boards. Purchasing Manager may also advertise pending purchases
or sales by a notice posted on a public bulletin board in the Purchasing Office,
and by electronic bulletin board, as deemed appropriate by the Purchasing
Manager.
(e) Bidder’s Security. When deemed necessary by the Purchasing Manager, a
bidder’s security may be prescribed in the Contract specifications or in the
Notice Inviting Bids. The Purchasing Manager shall maintain said bidders’
security. Bidders shall be entitled to the return of a bid security upon the full
execution of an awarded Contract or issuance of a purchase order by the
successful bidder. A successful bidder shall forfeit its bid security upon
refusal or failure to execute the Contract within the prescribed time after the
Notice of Award of Contract has been delivered to the bidder, unless OC San
is responsible for a delay in the prescribed time. The Purchasing Manager
may, on refusal or failure of the successful bidder to execute the Contract,
award it to the next lowest responsive, responsible bidder. If the Purchasing
Manager awards the Contract to the next lowest bidder, an amount of the
lowest bidder’s security equal to the difference between the low bid and the
awarded bid shall be forfeited to OC San and the surplus, if any, shall be
returned to the lowest bidder.
(f) Bid Opening Procedure. Sealed or electronically received bids shall be
submitted to the Purchasing Manager and shall be identified as a bid on the
envelope or the electronic bulletin board. Bids shall be opened, concurrently,
in public by the Purchasing Manager at the time and place stated in the public
notices. A tabulation of all bids received shall be available for public
inspection during regular business hours for a period of not less than thirty
(30) calendar days after the bid opening.
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(g) Rejection of Bids. Refer to the Purchasing Ordinance
(h) Equal Bids. Refer to the Purchasing Ordinance
(i) Performance Bonds. Refer to Section 1.6
The above procedures do not apply to procurements covered by Section 2.03 Exceptions,
of the Purchasing Ordinance.
Section 2.4.2. Mistakes
Section 2.4.2.1. Mistakes Discovered After Opening but Before Award
(a) Minor Irregularities. Minor irregularities are matters of form rather than
substance evident from the bid document, or insignificant mistakes that can
be waived or corrected without prejudice to other bidders; that is, the effect on
price, quantity, quality, delivery, or contractual conditions is negligible. The
Purchasing Manager will waive such irregularities or allow the bidder to
correct them depending on which is in the best interest of OC San. Examples
include the failure of a bidder to:
(1) return the number of signed bids required by the Notice Inviting
Bids;
(2) sign the bid, but only if the unsigned bid is accompanied by other
material indicating the bidder's intent to be bound; or
(3) acknowledge receipt of an addendum to the Notice Inviting Bids,
but only if:
i. it is clear from the bid that the bidder received the addendum
and intended to be bound by its terms; or
ii. the addendum involved had a negligible effect on price,
quantity, quality, or delivery
(b) Mistakes Where Intended Correct Bid is Evident. If the mistake and the
intended correct bid are clearly evident on the face of the bid document, the
bid will be corrected to the intended correct bid and may not be withdrawn.
Examples of mistakes that may be clearly evident on the face of the bid
document are typographical errors, errors in extending unit prices,
transposition errors, and arithmetical errors.
(c) Mistakes Where Intended Correct Bid is Not Evident. A bidder may be
permitted to withdraw a low bid if:
(1) a mistake is clearly evident on the face of the bid document, but the
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intended correct information is not similarly evident; or
(2) the bidder submits proof of evidentiary value which clearly and
convincingly demonstrates that a mistake was made.
Section 2.4.2.2. Mistakes Discovered After Award
Mistakes will not be corrected after award of the Contract except where the
Purchasing Manager makes a written determination that it would be unconscionable not to
allow the mistake to be corrected.
Section 2.4.2.3. Determinations Required
When a bid is corrected or withdrawn, or correction or withdrawal is denied, the
Purchasing Manager will prepare a written determination showing that the relief was
granted or denied in accordance with these Policies and Procedures.
Section 2.4.3. Responsibility
In a Competitive Sealed Bid procurement, OC San will award the Contract to a
responsive and responsible bidder that submits the lowest bid. OC San will not consider
the relative superiority of the bidders, but only whether the low bidder is responsive and
responsible.
In evaluating a prospective Contractor's responsibility, the Purchasing Manager will
consider the Contractor's past performance, expertise, integrity, and available resources
such as finances, equipment, facilities, and personnel. The prospective Contractor will
supply all information needed for the evaluation. If the Contractor fails to supply requested
information, the Purchasing Manager will either (1) base the determination of responsibility
upon the available information, or (2) find the prospective Contractor to be non-responsible
if the Purchasing Manager determines that the failure to provide information is
unreasonable.
A prospective Contractor may demonstrate the availability of financing, equipment,
facilities, expertise, and personnel by, among other things, submitting acceptable plans to
subcontract for the required resources, or providing a documented commitment form, or
explicit arrangement with, a satisfactory source to provide the necessary items.
If the Purchasing Manager determines that a prospective Contractor is not
responsible, the Purchasing Manager will prepare a written determination setting forth the
basis of the finding. The Purchasing Manager will promptly send a copy of the
determination to the prospective Contractor. The final determination will be included in the
procurement file.
Section 2.4.4. Determination of Lowest Bidder
OC San will determine the lowest bid based on objective criteria set forth in the
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Notice Inviting Bids, such as unit cost, transportation cost, and life cycle costs.
Section 2.4.5. Notice of Award
At the conclusion of each Competitive Sealed Bid process, the Purchasing Manager
will send written notice of award to the successful bidder.
Following award, OC San will retain the relevant documents showing the basis for
the award.
Section 2.5 Multi-Step Sealed Bidding for Goods and Services
Section 2.5.1. Definition
Multi-step sealed bidding is a combination of competitive procedures designed to
obtain the benefits of sealed bidding when adequate specifications are not available, or
when the Purchasing Manager determines that a pre-qualification process is necessary and
desirable for a particular procurement. This will result in a two-step process consisting of a
technical/pre-qualification first step composed of one or more steps in which bidders submit
unpriced technical qualifications to be evaluated by OC San or submit their qualifications
for evaluation against the stated criteria. The second step occurs when those bidders
whose technical qualifications are determined to be acceptable, or who are pre-qualified
during the first step have their price bids considered. The process permits OC San to
develop a sufficiently descriptive statement of OC San’s requirements, including an
adequate technical data package, so that subsequent acquisitions may be made by
conventional sealed bidding. This method is especially useful in acquisitions requiring
technical proposals, particularly those for complex items.
Multi-step sealed bidding is conducted in two steps:
(a) Step one consists of the request for, submission, evaluation, and (if
necessary) discussion of a technical qualifications, or request for
qualifications. No pricing is involved. The objective is to determine the
acceptability of the supplies or services offered. As used in this context, the
word “technical” has a broad connotation and includes, among other things,
the engineering approach, special manufacturing processes, special testing
techniques, financial and other professional services. It is the proper step for
clarification of questions relating to technical requirements. Conformity to the
technical requirements /responsibility is resolved in this step.
(b) Step two involves the submission of sealed priced bids by those who
submitted acceptable technical qualifications. Bids submitted in step two are
evaluated and the awards made to the lowest responsive and responsible
bidder.
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Section 2.5.2. Conditions for Use
Multi-step sealed bidding may be used when it is considered desirable:
(a) To invite and evaluate technical qualifications to determine their acceptability
to fulfill the purchase description requirements;
(b) To conduct discussions for the purposes of facilitating understanding of the
technical qualifications and purchase description requirements and, where
appropriate, obtain supplemental information, permit clarifications of technical
qualifications, or addend the purchase description;
(c) To establish the list of pre-qualified bidders for this procurement;
(d) To accomplish (a) and (b) above prior to soliciting priced bids; and
(e) To award the Contract to the lowest responsive and responsible bidder in
accordance with the competitive sealed bidding procedures.
Section 2.5.3. Pre-Bid Conferences in Multi-Step Sealed Bidding
Prior to the submission of unpriced technical qualifications, a pre-bid conference
may be conducted. The Purchasing Manager may also hold a conference with all or any
prospective bidders at any time during the evaluation of the unpriced technical
qualifications.
Section 2.5.4. Step One
(a) Form. Multi-step sealed bidding will be initiated by the issuance of a notice
inviting bids. In addition to the normal bid requirements, the multi-step notice
inviting bids will state:
(1) That unpriced technical qualifications are requested;
(2) Whether priced bids are to be submitted at the same time as
unpriced technical qualifications; if they are, the priced bids must be
submitted in a separate sealed file;
(3) That it is a multi-step sealed bid procurement, and priced bids will
be considered only in the second step and only from those bidders
whose unpriced technical qualifications are found acceptable, or
are qualified in the first step;
(4) The criteria to be used in the evaluation of the unpriced technical
qualifications;
(5) That OC San, to the extent it finds necessary, may conduct oral or
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written discussions of the unpriced technical qualifications;
(6) That prospective bidders may designate those portions of the
unpriced technical qualifications that contain trade secrets or other
proprietary data which are to remain confidential; and
(b) Addendum to the Notice Inviting Bids. After receipt of unpriced technical
qualifications, addenda to the notice inviting bids will be distributed only to
bidders who submitted unpriced technical qualifications, and they will be
permitted to submit new unpriced technical qualifications or to amend those
submitted. If, in the opinion of the Purchasing Manager, a contemplated
Amendment will significantly change the nature of the procurement, the notice
inviting bids will be canceled, and a new notice inviting bids issued.
(c) Receipt and Handling of Unpriced Technical Qualifications. Unpriced
technical qualifications will not be opened publicly but will be received in
accordance with the requirements of the NIB/RFQ. Technical qualifications
will not be disclosed to unauthorized persons. Bidders may request
nondisclosure of trade secrets and other proprietary data identified in writing.
(d) Evaluation of Unpriced Technical Qualifications. The unpriced technical
qualifications submitted by bidders will be evaluated solely in accordance with
the criteria set forth in the notice inviting bids. The unpriced technical
qualifications will be categorized as:
(1) Acceptable/Qualified;
(2) Unpriced Technical Qualifications - Potentially acceptable, that is,
reasonably susceptible of being made acceptable; or
(3) Unacceptable/Not Qualified. The Purchasing Manager will record in
writing the basis for finding a qualification unacceptable and make it
part of the procurement file.
The Purchasing Manager may initiate step two of the procedure if, in his or
her opinion, there are sufficient acceptable unpriced technical qualifications to
assure effective price competition in the second step without technical
discussions. If the Purchasing Manager finds that such is not the case, the
Purchasing Manager will issue an addendum to the notice inviting
bids/request for qualifications or engage in technical discussions.
(e) Discussion of Unpriced Technical Qualifications. The Purchasing Manager
may conduct discussions with any bidder who submits an acceptable or
potentially acceptable technical qualification. During the course of those
discussions the Purchasing Manager will not disclose any information derived
from one unpriced technical qualification to any other bidder. Once
discussions are begun, any bidder who has not been notified that its
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qualifications have been finally found unacceptable may submit supplemental
information amending its technical qualification at any time until the closing
date established by the Purchasing Manager. Submissions of supplemental
information may be made at the request of the Purchasing Manager.
(f) Notice of Unacceptable Unpriced Technical Qualifications. When the
Purchasing Manager determines a prospective bidder’s unpriced technical
qualifications to be unacceptable, no additional opportunity to supplement its
technical qualifications will be afforded.
Section 2.5.5. Mistakes During Multi-Step Sealed Bidding
Mistakes may be corrected or participation may be withdrawn at any time during
step one. During step two, mistakes may be corrected or withdrawal permitted only
pursuant to Section 2.4.2 above.
Section 2.5.6. Step Two
(a) Initiation. Upon the Completion of step one, the Purchasing Manager must
either:
(1) Open priced bids submitted in step one (if priced bids were required
to be submitted) from bidders whose unpriced technical
qualifications were found to be acceptable; or
(2) If priced bids have not been submitted, technical discussions have
been held, and addenda to the notice inviting bids have been
issued, if necessary, invite each acceptable bidder to submit a
priced bid.
(b) Procedure and Confidentiality. Step two will be conducted as any other
Competitive Sealed Bid procurement except:
(1) As specifically set forth in the Multi-Step Sealed Bidding Process
above;
(2) No public notice need be given of this invitation to submit priced
bids because notice was previously given;
(3) After issuance of Notice of Intent to Award the unpriced technical
qualifications of the successful bidder will be disclosed as follows.
The Purchasing Manager will examine written requests of
confidentiality for trade secrets and proprietary data in the bidder’s
technical qualifications to determine the validity of any requests. If
the parties do not agree as to the disclosure of data, the
Purchasing Manager will inform the bidder in writing what portion of
the unpriced technical qualifications will be disclosed and that,
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unless the bidder timely protests, the qualifications will be so
disclosed. The Purchasing Manager will hear any protests in
accordance with the protest provisions in the procurement. The
technical qualifications will be open to public inspection subject to
any continuing prohibition on the disclosure of confidential data;
and
(4) Unpriced technical qualifications of bidders who are not awarded
the Contract will not be open to public inspection unless the
Purchasing Manager determines in writing that public inspection of
such offers is essential to assure confidence in the integrity of the
procurement process; provided, however, that the provisions of
Subsection (b)(3) above will apply with respect to the possible
disclosure of trade secrets and proprietary data.
Section 2.6 Competitive Proposals
Section 2.6.1. Content of Requests for Proposals
Each Request for Proposals must contain the following information:
(a) a description of the Goods and/or Services required;
(b) a description of the selection process, including the evaluation criteria;
(c) a statement that OC San may discuss offers with select proposers at OC
San’s discretion, but OC San may accept proposals without further
discussions;
(d) a statement of when and how price should be submitted; and
(e) such other provisions, terms, and conditions, consistent with the Purchasing
Ordinance, that the Purchasing Manager determines are necessary,
desirable, and/or advantageous to OC San.
Section 2.6.2. Notice
The Purchasing Manager will give public notice of each Request for Proposals. The
Purchasing Manager will set a response date that allows sufficient time for proposers to
prepare their proposals.
Section 2.6.3. Late Proposals
Any proposal received after the established due date will not be considered.
Section 2.6.4. Receipt of Proposals
The Purchasing Manager will open and secure proposals in the manner identified in
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the Request for Proposal.
Section 2.6.5. Evaluation of Proposals
The evaluation will be based on the evaluation factors set forth in the Request for
Proposals consistent with the Purchasing Ordinance. Numerical rating systems may be
used but are not required.
Proposals will be initially classified as:
(a) acceptable; or
(b) unacceptable.
Proposers whose proposals are unacceptable will be so notified promptly.
Section 2.6.6. Discussions with Individual Proposers
The Purchasing Manager may arrange discussions with proposers that have been
deemed acceptable in order to (a) clarify OC San’s requirements and/or the proposals, and
(b) negotiate terms and conditions of a Contract. If the Purchasing Manager determines
during discussions that the Request for Proposals must be substantially revised, the
Request for Proposals will be amended and re-advertised. Auction techniques (revealing
one proposer's price to another) and disclosure of any information derived from competing
proposals are prohibited. Any substantial oral clarification of a proposal will be reduced to
writing by the proposer.
The Purchasing Manager will establish a common date and time for the submission
of best and final offers. Best and final offers will be submitted only once, unless the
Purchasing Manager determines in writing that it is in OC San’s best interest to conduct
additional discussions and require another round of best and final offers. Otherwise, no
discussion of, or changes in, the best and final offers will be allowed prior to award.
Proposers will also be informed that if they do not submit a notice of withdrawal or another
best and final offer, their immediate previous offer will be construed as their best and final
offer.
Section 2.6.7. Mistakes
When the Purchasing Manager knows or has reason to conclude before award that
a mistake has been made by a proposer, he or she should request the proposer to confirm
the proposal. If the proposer alleges mistake, the proposal may be corrected or withdrawn
during any discussions that are held. The following procedures will be applied when
mistakes in proposals are discovered after receipt of proposals but before award.
(a) During Discussions; Prior to Best and Final Offers. Once OC San commences
discussions with any proposer, or after OC San requests best and final offers,
any proposer may freely correct any mistake by modifying or withdrawing the
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proposal until the time and date set for receipt of best and final offers.
(b) Minor Irregularities. Minor irregularities, unless otherwise corrected by a
proposer as provided in this section, will be treated as they are under
Competitive Sealed Bid procurement.
(c) Correction of Mistakes. If discussions are not held or if the best and final
offers upon which award will be made have been received, mistakes may be
corrected and the intended correct offer considered only if:
(1) the mistake and the intended correct offer are clearly evident on the
face of the proposal, in which event the proposal may not be
withdrawn; or
(2) the mistake is not clearly evident on the face of the proposal, but
the proposer submits proof of evidentiary value which clearly and
convincingly demonstrates both the existence of a mistake and the
intended correct offer, and such correction would not be contrary to
the fair and equal treatment of other proposers.
(d) Withdrawal of Proposals. If discussions are not held, or if the best and final
offers upon which award will be made have been received, the proposer may
be permitted to withdraw the proposal if:
(1) the mistake is clearly evident on the face of the proposal and the
intended correct offer is not;
(2) the proposer submits proof of evidentiary value which clearly and
convincingly demonstrates that a mistake was made but does not
demonstrate the intended correct offer; or
(3) the proposer submits proof of evidentiary value which clearly and
convincingly demonstrates the intended correct offer, but to allow
correction would be contrary to the fair and equal treatment of the
other proposers.
Mistakes Discovered After Award. Mistakes will not be corrected after award of the
Contract except where the Purchasing Manager finds it would be unconscionable not to
allow the mistake to be corrected.
Section 2.7 Master Contracts for Maintenance and Repair Services
Master Contracts for Maintenance and Repair Services will be procured pursuant to
Article 2 of the Purchasing Ordinance.
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Article 3. Professional Services
Section 3.1 General Requirements
The Purchasing Manager will oversee the procurement of Professional Services.
During the procurement process, the Purchasing Manager will be sole point of contact for
all proposers. The Purchasing Manager will comply with the requirements of the
Purchasing Ordinance, the applicable provisions of these Policies and Procedures, and
applicable California law.
Section 3.1.1. Solicitation of Proposals
The Purchasing Manager will solicit Professional Services primarily through OC
San’s electronic system, through either a Request for Qualifications or Request for
Proposals process. Proposals may be submitted in hard copy (sealed proposals) or
securely via OC San’s electronic system. Proposers may be asked to submit rate and/or
price information via separate sealed files as part of their proposal.
Section 3.1.2. Contents of Request for Proposals and Request for
Qualifications
Each Request for Qualifications and Request for Proposals must contain the
following information:
(a) a description of the selection process;
(b) the criteria to be applied by OC San in evaluating the qualifications or
proposals, including whether, and to what extent, OC San will consider price
as a factor;
(c) a summary of OC San’s protest procedures;
(d) all other information required by the Purchasing Ordinance; and
(e) any other information that the Purchasing Manager deems appropriate for the
solicitation.
Section 3.1.3. Evaluation Committee
For each Request for Qualifications/Request for Proposals, the Purchasing Manager
may establish a committee to evaluate the qualifications or proposals. The Purchasing
Manager will serve as chair of each committee. Each committee may request clarifications
and conduct interviews with proposers. At the conclusion of the evaluation process, each
committee will rank the qualifications or proposals from most qualified to least qualified.
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Section 3.1.4. Negotiations
If negotiations are in the best interest of OC San, the Purchasing Manager will
commence negotiations with the top ranked firm and proceed in accordance with Article 3
of the Ordinance.
Section 3.1.5. Documentation
The Purchasing Manager will document the solicitation and receipt of proposals, the
evaluation of proposals, and the negotiation process.
Section 3.1.6. Master Contracts for Professional Services
Master Contracts for Professional Services will be procured pursuant to Article 3 of
the Purchasing Ordinance.
Section 3.1.7. Master Contracts: Professional Services Qualified Lists
Master Contracts for Professional Services Qualified Lists will be procured pursuant
to Article 3 of the Purchasing Ordinance.
Article 4. Professional Design and Related Services
Professional Design and Related Services will be procured pursuant to Article 4 of
the Purchasing Ordinance.
Section 4.1.1. Master Contracts for Professional Design and Related
Services
Master Contracts for Professional Design and Related Services will be procured
pursuant to Article 4 of the Purchasing Ordinance.
Article 5. Public Works, Sewerage Maintenance, and Repair Work
Refer to Article 5 of the Purchasing Ordinance concerning OC San’s award of
Contracts for the construction of Public Works Projects exceeding $35,000 other than
sewerage maintenance or repair projects pursuant to Public Contract Code Section 20783
(Projects estimated at $35,000 or less, and sewerage maintenance or repair projects, may
be processed pursuant to Article 2 or Article 5 of the Purchasing Ordinance.)
"Maintenance" means routine, recurring, and usual work for the preservation,
protection and keeping of any plant, building, structure, component of a sewer system or
appurtenance for its intended purposes in a safe and continually usable condition for which
it was designed, improved, constructed, altered or repaired.
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"Repair" means replacement or restoration of a plant, building, structure, or
component of a sewer system or appurtenance by replacing a part or putting together what
is broken. A repair does not become an improvement or alteration constituting construction
of a Public Work unless the replacement or restoration increases the capacity, or adds new
uses or functions to the plant, building, structure, or component of a sewer system or
appurtenance.
Before finding a low bidder on a Public Works Contract to be not responsible, the
Purchasing Manager will (1) notify that bidder of any evidence reflecting upon the bidder's
responsibility, (2) afford the bidder an opportunity to rebut such adverse evidence, and (3)
permit the bidder to present evidence of qualification.
Article 6. Protests
All procurements will contain protest procedures. Durations contained in Purchasing
Policies and Procedures are a guideline. Deviations from these durations are at the
discretion of the Purchasing Manager.
Section 6.1 Solicitation Phase Protests
Section 6.1.1. General Provisions
(a) Any Interested Party may file a Solicitation Protest Statement with the
Purchasing Manager on the grounds that a free and open competition has not
taken place, or cannot take place, and/or that a particular specification or
requirement is impractical, unduly restrictive, or ambiguous.
(b) Solicitation Protest Statements must be received as prescribed in the
solicitation.
(c) Solicitation Protest Statements are public documents. OC San will provide
copies of the Solicitation Protest Statements to any person upon written
request.
Section 6.1.2. Evaluation and Determination
No hearing will be held on any Solicitation Protest Statement. The Purchasing
Manager will review all material submitted, conduct an investigation of the facts, and may,
but need not, request other bidders or proposers to submit statements or arguments
regarding the protest. The Purchasing Manager may in his or her sole discretion, discuss
the protest with the Protestor.
The Purchasing Manager will issue a final written decision regarding any solicitation
protest to each bidder or proposer before the bids or proposals are opened. The written
decision will describe any actions taken, or to be taken in response to the Solicitation
Protest Statement. The decision of the Purchasing Manager concerning the Solicitation
Protest Statement shall be final.
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Section 6.2 Award Protest
Section 6.2.1. General Provisions
(a) Any Interested Party may file an Award Protest Statement with the
Purchasing Manager on the grounds that a free and open competition has not
taken place in connection with the award recommendation or to appeal a
determination in connection to the Procurement. The Purchasing Manager
will not consider any protest alleging that a bid or proposal is not responsive,
which will be considered by the body that has final authority to let the
Contract.
(b) Any Award Protest Statement must be received by the Purchasing Manager
as prescribed in the solicitation.
(c) Award Protest Statements are public documents. OC San will notify the
affected parties when a protest has been submitted and will provide copies of
the Protest Statements to the affected parties upon written request.
Section 6.3 Appeal Process
If the Protestor intends to appeal the decision by the Purchasing Manager, the
Protestor shall submit a written appeal in accordance with the procedures identified in the
solicitation documents.
Section 6.4 Protest Requirements and Timelines
The Purchasing Manager reserves the right to customize protest requirements and
timelines as deemed necessary.
Article 7. Delegation of Authority to Make Purchases
Article 7 of the Ordinance sets forth the delegated authority of the General Manager,
and Standing Committees to award Contracts.
The General Manager is authorized to approve Requisitions for budgeted purchases
up to $150,000.
General Manager shall approve Requisitions greater than $150,000 in order to
advance the procurement process. This does not constitute award of the resulting Contract.
Section 7.1 Original Contracts, Contingencies, and Renewals
Section 7.1.1. Delegation to Purchasing Manager
(a) The General Manager hereby delegates authority to execute purchase orders
for all Goods and Services to the Purchasing Manager.
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(b) The General Manager hereby delegates authority to award and execute
Contracts for all Goods and Services, excluding Public Works and
Professional Design and Related Services, up to $150,000 to the Purchasing
Manager.
(c) The General Manager hereby delegates authority to execute Contracts for all
Goods and Services, excluding Public Works and Professional Design and
Related Services, to the Purchasing Manager.
(d) The General Manager hereby delegates authority to execute Amendments,
Change Orders, Renewals, Time Extensions, and Assignments for Goods
and Services, excluding Public Works and Professional Design and Related
Services to the Purchasing Manager.
Section 7.1.2. Co-Signatures
In addition to the signature of the Delegated Authority:
(a) To ensure that all policies and procedures governing purchase orders,
Contracts, Amendments, and change orders, including Public Works, are
followed, all such documents will be signed by the Purchasing Manager, or
designee upon approval of the delegated authority specified in the Purchasing
Ordinance and this General Manager’s Purchasing Policy.
(b) All purchases for computer hardware, software, copiers, faxes, and
communication equipment will be pre-approved by the Director responsible
for Information Technology, or his/her designee.
Section 7.1.3. Delegation of Authority
The General Manager may delegate to employees the authority to approve
Requisitions for budgeted purchases within the following limits or as prescribed by the
General Manager:
Employee Delegated Authority
Assistant General
Manager
Authorization to approve Requisitions for budgeted
purchases up to $100,000.
Department Director Authorization to approve Requisitions for budgeted
purchases up to $50,000.
Division Manager Authorization to approve Requisitions for budgeted
purchases up to $25,000.
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Employee Delegated Authority
Superintendent/Chief Authorization to approve Requisitions for budgeted
purchases up to $10,000.
Supervisor/Clerk of
the Board
Authorization to approve Requisitions for budgeted
purchases up to $5,000.
Maintenance
Specialist
Authorization to approve Requisitions for budgeted
purchases up to $4,000.
Maintenance Lead Authorization to approve Requisitions for budgeted
purchases up to $2,000.
Section 7.1.4. Contingency Release
The General Manager shall manage the expenditure of all approved contingency
funds in connection with all Amendments and change orders approved by the Board, the
standing committees, and the General Manager.
Section 7.2 Not Used
Section 7.3 Amendments, Change Orders, Renewals, Time Extensions and
Assignments
The General Manager hereby delegates to each Department Director, not designee,
the authority to approve the Requisitions for specified Amendments, Change Orders, and
Renewals to budgeted purchases provided that the cumulative amount of the original
purchase plus all Amendments or change orders does not exceed $50,000. For Public
Works Change Orders, refer to Section 7.4 of this Policy.
Each Department Director may review and recommend that the General Manager
approve Requisitions for Amendments, Change Orders, Renewals, and Time Extensions
that when combined with the original Contract amount and all prior Amendments, exceeds
$50,000, or are nonetheless within the approved Contract contingency. For Public Works
Change Orders, refer to Section 7.4 of this Policy.
Time Extensions beyond the original, specified and approved period with or without
an increase in contract price may be approved by the General Manager, as long as the
revised contract price is within the approved contingency. Time Extensions beyond the
original, specified and approved period that exceed the approved contingency must go
back to the awarding authority for approval.
The General Manager may approve and execute Change Orders for Public Works
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Project Contract Time Extensions that do not involve any increase in contract price over the
approved Contingency.
Approval of Time Extensions is specifically not delegated below the General
Manager/Assistant General Manager, except as identified in Section 7.1.1. (d).
For delegation of authority for assignments, refer to Section 1.3.3. of this Policy.
Section 7.4 Change Orders to Public Works Contracts
The General Manager hereby delegates the authority to review and recommend
Requisitions and Change Orders for Public Works Contracts to the Director of Engineering
in accordance with the Department Director delegated authority as presented above in
Section 7.1.3.
This delegated authority includes authority for award and authorization of payment of
Change Orders including unilateral credit change orders. The functional authority level
listed above describes the highest level of signature approval needed. Intermediate levels
of approvals as they relate to the review of the Change Orders, shall be further described in
the Public Works Change Management procedures as approved by the pertinent
Department Directors. Extra work, deletions or other revisions will not be fragmented into
multiple changes in order to circumvent established authority thresholds. Contracts
Administration shall review all Change Orders over $35,000.
Section 7.5 Procard
The Director of Finance may delegate or assign any or all of the following duties to
the Purchasing Manager:
Procurement Card (Procard) Program – The Procard Program allows specifically
authorized employees to purchase goods and services without competitive sealed bids
thereby eliminating the purchase Requisition, purchase order, invoice, and check
requirements for these purchases. Approval for use of a Procard must first be obtained
from the OC San’s Procard Administrator, with the concurrence of the Purchasing Manager
and appropriate Manager and Department Director. Any request for an increase
(transactional/monthly) over the amounts specified in the Procard Policy SOP 401-1-06,
must first be obtained from the Purchasing Manager.
Article 8. Revision History
Version Date By Reason
1.0 4/1/16
2.0 7/11/16
3.0 11/29/18 Purchasing Mgmt Updates to reflect new Purchasing Ordinance No.
OCSD-52.
4.0 9/14/21 Purchasing Mgmt Updates to reflect new Purchasing Ordinance No.
OC SAN-56.
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5.0 8/25/23 Purchasing Mgmt Updates to reflect new Purchasing Ordinance No.
OC SAN-61.