712A - Procurement

The purpose of this procurement policy is to ensure that sound business judgement is utilized in all procurement transactions and that supplies, equipment, construction and services are obtained efficiently and economically and in compliance with applicable federal and state law and executive orders and to ensure that all procurement transactions will be conducted in a manner that provides full and open competition. These procedures will ensure that all solicitations incorporate clear and accurate descriptions of the technical requirements for the goods or services being procured. Chapter 26 and Section 331.341 of the Iowa Code will be followed on all applicable purchases. All other appropriate sections of the Iowa Code shall also apply.

Application

This policy applies to the procurement of all supplies, equipment, and construction and services of and for Eddyville-Blakesburg-Fremont CSD that include any federal program funding. In regards to any such federal programs, all procurement will be done in accordance with 2 CFR; Part 200. Chapter 26 and Section 331.341 of the Iowa Code will be followed on all applicable purchases. All other appropriate sections of the Iowa Code shall also apply. When federal requirements conflict with local or state requirements, the federal requirement, or most restrictive requirement will be followed.

Methods of Procurement

Procurement under grants shall be made by one of the following methods, as described herein: (a) small purchase procedures; (b) sealed bids (formal advertising); (c) competitive proposals; (d) noncompetitive proposals.

1. Micro-Purchase Procedures 200.320(a)
   
   1. The acquisition of supplies or serves, the aggregate dollar amount of which does not exceed the micro-purchase threshold - $10,000 (200.67)
   2. To the extent practicable, must distribute micro-purchases equitably among qualified suppliers
   3. May be awarded without soliciting competitive quotations if the non-Federal entity considers the price to be reasonable
2. Small Purchase Procedures 200.320(b)
   
   1. Are those relatively simple and informal procurement methods for securing services, supplies, or other property that does not cost more than the simplified acquisition threshold - $55,000 (200.88)
3. 2. Price or rate quotations are to be obtained from an “adequate number” of qualified sources
4. Sealed Bidding (formal advertising) 200.320(c)
   
   1. Lowest priced, responsive, responsible, bidder WINS
   2. The preferred method for construction when sealed bidding is “feasible”, which is when certain conditions are present
   3. Bids must be solicited from an “adequate number of known suppliers”, providing them sufficient response time before date for the opening of bids
   4. Bids will be opened at the time and place prescribed in the invitation for bids
   5. Must publicly advertise the invitation for bids
   6. Bids must be opened publicly
   7. Other procedural requirements at 200.320(c)(2)
5. Competitive Proposals 200.320(d)
   
   1. Used when conditions are not appropriate for the use of sealed bids
   2. The appropriate method when more than one source is expected to submit an offer and either a fixed-price or cost-reimbursement type contract is awarded
   3. Awards will be made to the responsible firm whose proposal is most advantageous to the program, with price and other factors considered
   4. Requests for proposals must be publicized and identify all evaluation factors and their relative importance
   5. Proposals must be solicited from an adequate number of qualified sources
   6. Must have written method for conducting technical evaluations of the proposals received and for selection of the contract

4. Noncompetitive Proposals 200.320(f)
   
   1. Procurement through solicitation of a proposal from only one source and may be used only when one or more of the following circumstances apply:
      
      1. One Source: the item is available only from a single source
      2. Exigency/Emergency: an exigency or emergency will not permit a delay resulting from competitive solicitation
      3. Awarding Agency Approval: the Federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the non-Federal entity
      4. Inadequate Competition: after the solicitation of a number of sources, competition is determined inadequate

Contracting with Small and Minority Businesses, Women’s Business Enterprises, and Labor Surplus Area Firms (200.321)

1. Assuring that small and minority businesses, and women’s business enterprises are solicited whenever they are potential sources;
2. Placing qualified small and minority businesses and women’s business enterprises on solicitation lists;
3. Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women’s business enterprises;
4. Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women’s business enterprises;
5. Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and
6. Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in paragraphs (a) through (e).

Contract Pricing (200.323)

1. The cost plus a percentage of cost and percentage of construction cost method of contracting shall not be used.
2. Eddyville-Blakesburg-Fremont CSD shall perform some form of cost/price analysis for every procurement action, including contract modifications, amendments, or change orders. Eddyville- Blakesburg-Fremont CSD shall make an independent estimate prior to receiving a bid or proposal.
3. Eddyville-Blakesburg-Fremont CSD shall negotiate profit as a separate element of the price for each contract in which there is no price competition and in all cases where cost analysis is performed. In determining a fair and reasonable profit, Eddyville-Blakesburg-Fremont CSD must consider the complexity of the work to be performed, the risk borne by the contractor, the contractor’s investment, the amount of subcontracting, the quality of its record of past performance and the industry profit rates in the surrounding geographical area.

Procurement Records

Eddyville-Blakesburg-Fremont CSD shall maintain records sufficient to detail the significant history of a procurement, including the rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price.  (200.324)