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HomeMy WebLinkAbout03/21/2017 17B Transit Procurement MannualBUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDASTATEMENT Item No. 17.13. For Meeting of: March 21, 2017 ITEM TITLE: Transit Procurement Manual SUBMITTED BY: Sue Ownby, Procurement Manager SUMMARY EXPLANATION: Yakima Transit underwent their Triennial review with the Federal Transit Authority (FTA) in May of 2016. The FTA found the City/County Procurement Manual did not include all requirements for conducting FTA funded procurements as outlined in their 49 CFR Part 18 and FTA Circular 4220.1 F. As a result, it was determined that Yakima Transit needed its own dedicated purchasing manual specific to FTA grant funded procurements. The attached "Yakima Transit Procurement Manual for FTA Funded Procurements" is that manual. ITEM BUDGETED: STRATEGIC PRIORITY: STAFF RECOMMENDATION: BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description D CM letter i Upload Date Type 31612017 Coxer Nle 3/612017 Co r Memo 129 North 211d Street Yakima, Washington 98901 ncr.-EIVED To: Cliff Moore, City Manager I From: Sue Owntly, Purchasing Manager - �%mCHASING DIV. , r RE: Approving Yakima Transit's New Procurement Manual for FTA Funded Procurements VON MINIMS 11 !1 i 1111111 • M W IN 0 Mml IN Nowl - 0 III I1111011", "I 16.*Ir• FTA fully reviewed and approved the attached manual on February 13, 2017. The manual was reviewed by Jeff Cutter on February 23, 2017. This manual is a tool for Yakima Transit to use to ensure that ETA funded procurements adhere to the stringent requirements that come along with federal grants. Approved: i Manager diff 91ger Date PON) �70.661)i 1,009076.0394 VV M, "AA, . k A itTK1kN-a,1; IV �Wry iCCS,-PUrc11wSi lip V Yakima Transit Procurement Manual for FTA Funded ,jakima Transit W,.- ' �A I 1 Procurements 9 Yakima Transit Procurement Manual for FTA Funded Procurements Table of Contents 1. INTRODUCTION....................................................................................................................................... 6 1.1 Roles & Responsibilities....................................................................................................................... 6 1.2 Purpose of Policies and Procedures..................................................................................................... 6 1.2.1 Third Party Contracting Capacity.................................................................... 7 1. 2.2 Recipient and Oversight of Sub-recipients........................................................ 7 1.3 Files and Record Retention..................................................................................................................8 2. CONTRACT ADMINISTRATION.......................................................................................................... 8 3. PROCUREMENT POLICIES........................................................................................................................... 9 3.1 Solicitation Standards..........................................................................................................................9 3.2 Equal Employment Opportunity Policy...........................................................................................13 3.3 Disadvantaged Business Enterprise Program..................................................................................14 3.5 System for Ensuring the Most Efficient and Economic Purchase..................................................14 3.5. 1 Lease versus Purchase.................................................................................... 15 3.6 Written Record of Procurement History..........................................................................................15 3.7 Independent Cost Estimate................................................................................................................15 3.8 Brand Name or Equal.........................................................................................................................16 3.9 Prequalification System......................................................................................................................16 4. CODE OF CONDUCT.............................................................................................................................17 4.1 Purpose & Applicability.....................................................................................................................17 4.2 Conflict of Interest..............................................................................................................................17 4.3 Gifts, Gratuities and Lobbying..........................................................................................................18 4.4 Contacts with Vendors, Bidders and Proposers...............................................................................19 4.5 RELEASE AND USE OF INFORMATION.................................................................................................19 4.6 PROPRIETARY OR CONFIDENTIAL DESIGN INFORMATION........................................................19 1 5. GENERAL GUIDELINES.......................................................................................................................20 5.1 Supplies, Equipment and Materials.................................................................................................. 20 5.1.1 Less than $3,000 (Informal Purchase).......................................................... 20 5.1.2 $3, 000 to $7, 499........................................................................................... 20 5.1.3 $7,500 to $24,999 ......................................................................................... 20 5.1.4 Exceeds $25,000 ........................................................................................... 21 5.2 Construction Projects......................................................................................................................... 21 5.2.1 $1,999 and under.......................................................................................... 21 5.2.2 $2, 000 to $10, 000......................................................................................... 21 5.2.3 $10, 000.01 to $34,999 (Limited Public Works) ............................................ 21 5.2.4 Exceeds $34,999 to $300, 000 (Small Works Roster) .................................... 21 5.2.5 Buy America.................................................................................................... 22 5.2.6 Design -Bid -Build ............................................................................................ 22 5.2.7 Design-Build.................................................................................................... 22 5.3 Services (includes Professional (non -A&E), Personal and Revenue -Producing Services) ........... 23 5.3.1 Under $2, 000................................................................................................ 24 5.3.2 $2, 000 to $7,499 ........................................................................................... 24 5.3.3 $7,500 to $24,999 ......................................................................................... 24 5.3.4 $25, 000 to $149,999 ..................................................................................... 25 5.3.5 Exceeds $150, 000......................................................................................... 25 5.4 Dividing Procurements Prohibited.................................................................................................... 25 5.5 Capital Purchases................................................................................................................................ 25 5.6 Rolling Stock....................................................................................................................................... 25 5.6.1 Preference for U.S. Property - Buy America................................................................................ 26 6. PROCEDURES FOR INFORMAL PURCHASES ($0-$10,000)......................................................... 27 6.1 Micro-Purchases................................................................................................................................. 27 6.2 The Purchase Order........................................................................................................................... 27 6.3 Receiving/Approval to Pay................................................................................................................. 27 2 6.3.1 Receipt of Goods........................................................................................... 27 6.3.2 Receipt of Services........................................................................................ 27 6.4 Petty Cash............................................................................................................................................28 6.5 Emergency Procurements.................................................................................................................. 28 6.6 Supply, Equipment, Service Contracts and Maintenance Agreements ......................................... 28 7. FORMAL PROCUREMENT PROCEDURES...................................................................................... 29 7.1 Formal procurement procedures....................................................................................................... 29 7.2 Sufficient Time................................................................................................................................... 29 7.3 Rejection of Bids or Proposals.......................................................................................................... 29 7.4 Exercise of Options............................................................................................................................. 29 7.5 When to Use Competitive Bidding.................................................................................................... 30 7.6 When to Use Competitive Proposal................................................................................................... 30 7.7 Procedures for Competitive Bidding................................................................................................. 31 7.8 Determining Reasonableness of Price: Cost Analysis...................................................................... 31 7.9 Basis of Award..................................................................................................................................... 32 7.10 Procurement Selection Procedures.................................................................................................33 7.11 Special Procedures for Architect/Engineering Services............................................................... 33 7.12 Construction Bonding Requirements.............................................................................................. 36 8. NON-COMPETITIVE NEGOTIATIONS............................................................................................. 36 8.1 When to Use Non -Competitive Negotiation...................................................................................... 36 8.2 Procedures for Non-competitive Negotiation................................................................................... 37 8.2.1 When Only One Bid/RFP Received................................................................. 37 9. OUT -OF -SCOPE CHANGES................................................................................................................ 37 10. BID PROTEST PROCEDURES.................................................................................................................. 38 10.1 Filing Protest..................................................................................................................................... 38 10.2 Confidentiality................................................................................................................................... 39 10.3 Withholding of Award...................................................................................................................... 39 10.4 Processing the Protest....................................................................................................................... 39 10.5 Notification........................................................................................................................................ 39 3 10.6 Appeal................................................................................................................................................ 39 11. CONTRACTS................................................................................................................................................. 40 11.1 Compensation Arrangements.......................................................................................................... 40 11.2 Contract Provisions.......................................................................................................................... 41 11.2.1 Basic Contract Provisions........................................................................... 41 11.2.2 Contract Provisions for FTA Grantees....................................................... 45 11.2.3 State and Local Government Purchasing Schedules ................................... 46 11. 2.4 Piggybacking...............................................................................................47 11. 2.5 Required Contract Clauses............................................................................ 47 APPENDIX A: INDEPENDENT COST ESTIMATE........................................................................................ 49 APPENDIX B: PRICE ANALYSIS TEMPLATE.............................................................................................. 50 APPENDIX C: COST ANALYSIS FORM......................................................................................................... 51 ANALYSISGUIDELINES................................................................................................................................... 53 1. DIRECT MATERIAL..................................................................................................................... 53 2. MATERIAL OVERHEAD..............................................................................................................53 3. DIRECT LABOR.............................................................................................................................53 4. LABOR OVERHEAD..................................................................................................................... 53 5. OTHER DIRECT COSTS............................................................................................................... 53 6. GENERAL AND ADMINISTRATIVE EXPENSE...................................................................... 53 7. ROYALTIES.................................................................................................................................... 54 8. SUBTOTAL ESTIMATED COST................................................................................................. 54 9. CONTRACT FACILITIES CAPITAL AND COST OF MONEY .............................................. 54 10. SUBTOTAL ESTIMATED COST.............................................................................................54 11. FEE OR PROFIT......................................................................................................................... 54 12. TOTAL ESTIMATED COST AND FEE OR PROFIT........................................................... 54 13. DISCOUNTS................................................................................................................................ 54 APPENDIX D: APPLICABILITY OF THIRD PARTY CONTRACT PROVISIONS..................................55 APPENDIX E: PIGGYBACKING CHECKLIST..............................................................................................58 0 APPENDIX F: RESPONSIBILITY DETERMINATION FORM....................................................................59 APPENDIX G: DOCUMENTATION REQUIREMENTS BY PROCUREMENT TYPE ............................. 60 APPENDIX H: SAMPLE PROCUREMENT FILE CHECKLIST.................................................................. 62 APPENDIX I: SAMPLE PROCUREMENT CHECKLIST..............................................................................63 5 1. INTRODUCTION Yakima Transit's major responsibility is the operation of public transportation in the City of Yakima. This includes planning, design, and programming of transportation projects. To perform these activities, Yakima Transit must obtain revenues and subsidies in order to procure services, vehicles, buildings, materials and supplies. This Manual defines and guides purchase orders and contract awards in accordance with State of Washington regulations. Yakima Transit receives funding from both the Federal Transit Administration (FTA) and the state of Washington. Therefore, Yakima Transit adopts procurement policies and procedures consistent with federal regulations and the laws of the state of Washington. Additional guidance on specific contractual actions is provided by OMB Circular A-102, Attachment O, and FTA Circular 4220.1F as amended in effect and Best Practices Guidelines. 1.1 Roles & Responsibilities Procurement Manager: Responsible oversight of the overall procurement function, for providing advice on all matters relating to procurement, as well as, those procurement actions necessary to ensure that the awarding of contracts is carried out in a manner consistent with the City of Yakima and Yakima Transit's policies and procedures. The City of Yakima Procurement Manager is in charge of ensuring that procurement personnel are trained and sufficiently updated on FTA procurement guidelines, regulations and changes. Also serves as the Disadvantaged Business Enterprise Liaison Officer (DBELO). The following positions are also involved in the purchasing process: Senior Buyer: Facilitates vehicle and facility purchases. Transit Manager: Participates in identifying vehicles for purchase and siting facilities. Transit Project Planner: Participates in identifying vehicles for purchase and siting facilities. Community Transportation Coordinator: Participates in identifying vehicles to be purchased Fleet and Facility Manager: Participates in identifying and specking out vehicles for purchase and siting facilities. 1.2 Purpose of Policies and Procedures The purpose of these policies and procedures is to set forth the procurement methods and establish standards for obtaining goods and services, including construction, professional, and architect/engineering services necessary for the operation of Yakima Transit's service. These procedures include guidelines for the solicitation, award and administration of formally advertised contracts; as well as, the consultant selection, negotiation, award, and administration of competitively negotiated and architect/engineering contracts. 0 The procurement procedures are designed to: ■ Instill public confidence in the procurement process of Yakima Transit. ■ Ensure fair and equitable treatment for all vendors who seek to deal with Yakima Transit, with particular emphasis toward Disadvantaged Business Enterprise (DBE). ■ Ensure maximum open and free competition in the expenditure of public funds. ■ Provide the safeguards to maintain a procurement system of quality and integrity. The methods by which the foregoing are implemented are described in detail in the remainder of this document. 1.2.1 Third Party Contracting Capacity FTA C4220.1F, 111, 3.a: As part of being an FTA recipient, it is Yakima Transit's obligation to maintain adequate technical capacity to carry out its projects and comply with the Common Grant Rules. Yakima Transit's third party contracting capability must be adequate to undertake its procurements effectively and efficiently in compliance with applicable Federal, State, and local requirements. The Common Grant Rules require Yakima Transit to maintain a contract administration system to ensure that it and its third party contractors comply with the terms, conditions, and specifications of their contracts or purchase orders and applicable Federal, State and local requirements. Within the City of Yakima, the Purchasing Division has been assigned these contracting duties. If Yakima Transit or City Purchasing lacks qualified personnel within its organization to undertake the various procurement tasks, such as drafting specifications, evaluating contracts, or performing internal audits for Yakima Transit, they shall acquire the necessary services from sources outside of their organization. When using outside sources, Yakima Transit should take appropriate steps to prevent or mitigate organizational conflicts of interest that would result in conflicting roles that might bias a contractor's judgment or would result in unfair competitive advantage. 1.2.2 Recipient and Oversight of Sub -recipients Recipient means Yakima Transit. FTA awards Federal assistance through a grant, cooperative agreement, or other agreement. The City of Yakima, specifically Yakima Transit, is the entire legal entity even if only a particular component of the entity is designated in the document through which FTA has awarded the Federal assistance. The term "recipient" includes "grantee," which is a "recipient" of Federal grant assistance. The term "recipient" also includes each member of a consortium, joint venture, team, or partnership awarded FTA assistance through a grant, cooperative agreement, or other agreement. For the purposes of this circular, "recipient" also includes any subrecipient or subgrantee of Yakima Transit. Furthermore, Yakima Transit is responsible for assuring that each of its 7 subrecipients complies with the applicable requirements and standards of this circular, and that each of its subrecipients is aware of the Federal statutory and regulatory requirements that apply to its actions as a subrecipient. Neither a third party contractor nor a third party subcontractor is a "recipient" for purposes of this circular (see FTA C4220.1F, 1, z). 1.3 Files and Record Retention Additionally, the purpose of this policy is to require the establishment of procurement files that contain all relevant records for all procurements processed by the Yakima Transit and the City of Yakima Purchasing Department. This policy applies to all procurements. Purchasing shall retain the originals of all documents associated with procurement actions including the requisition (retained electronically in Cayenta), solicitation documents (Invitation for Bids, Request for Proposals, Request for Quotes, etc.), bids or proposals, any negotiation or meeting notes, insurance certificates, correspondence relevant to the specific procurement action, notices, purchase orders and contract agreements. This requirement extends to all goods and services procured using micro and small dollar procurement procedures, Invitation for Bids, Request for Proposals, as well as, any sole source or non-competitive procurements. A separate procurement file for each procurement action shall be maintained regardless of the dollar value. The procurement file containing the original documentation shall remain with Purchasing through closeout of the contract or purchase order. The Purchasing Manager, or her designee, shall file all original documents in a consistent manner in an active working file during the solicitation phase of the procurement and ensure that all necessary documentation is included in the procurement file. These files shall be retained in accordance with the Washington State Public Disclosure Act (RCW 42.56 et seq.). 2. CONTRACT ADMINISTRATION Reference FTA C 4220.1F, Ch.11l, 3: Grantee's shall maintain a contract administration system that ensures that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders and applicable Federal, State, and Local requirements. Purchasing shall ensure that contract administration is carried out onsite by assigning responsibility for and ensuring that the following is performed on each procurement ensuring: • Suppliers perform the contracted work • Satisfactory quality • Timeliness of performance • Performance within available funds (Performed by Yakima Transit) • That Yakima Transit has a documented history of contracting activity • Receipt, inspection, acceptance and certification for payment (Performed by Yakima Transit and Accounts Payable) 3. PROCUREMENT POLICIES Reference FTA C 4220.1F, Ch. 111, 3.a: Grantee's must have written procurement policies as a condition of self -certification. Note: training must be conducted on the policies and procedures. It also helps to conduct self -assessments to ensure staff are in compliance. Yakima Transit is a Division within City of Yakima Public Works, which reports to the City Manager. The City of Yakima is governed by a seven member City Council. The City of Yakima is classified as a "1St Class City," which establishes its own procurement policies (with the exception of Public Works, which are governed by Chapter 39.04 CW). The City Manager establishes the City of Yakima Procurement Policies through publication of the City/County Procurement Manual. 3.1 Solicitation Standards The following standards apply to solicitations (discussed further in FTA C4220.1f Ch. VI): (a) Clear Descriptions. A clear, accurate and complete description of the technical specification requirements for the material, product, or service to be procured is required to provide for full and open competition (see FTA C4220.1F, 111, 3.b). (b) Nonrestrictive Specifications. In competitive procurements, the description may not contain features that unduly restrict competition. Notably, FTA may not finance procurements that use exclusionary or discriminatory specifications. (c) Quality Requirements. A description may include a statement of the qualitative nature of the material, product, or service to be procured and, when necessary, describe minimum essential characteristics and standards to which the property or services must conform if it is to satisfy Yakima Transit's intended use. (d) Preference for Performance Specifications. The Uniform Guidance advises the recipient that "detailed product specifications should be avoided if at all possible." (e) Brand Name or Equal. When it is impractical or uneconomical to write a clear and accurate description of the technical requirements of the property or services to be acquired, a "brand name or equal" description may be used to 9 define the performance or other salient characteristics of the property or services sought. The specific features or salient characteristics of the named brand which must be met by offerors of "an equal" proposal must be clearly stated. (f) Environmental and Energy Efficiency Preferences. A preference, to the extent practicable and economically feasible, for products and services that conserve natural resources, protect the environment, and are energy efficient (see FTA C4220.1 F, 111, 3. a, FTA C4220.1 F, 2. c (3) & (4)). (g) Environmental Protections. Federal laws and regulations require Yakima Transit to comply with applicable environmental requirements and implement them as necessary through third party contracts. 1 Environmental Mitigation. FTA expects the Yakima Transit to include adequate third party contract provisions to facilitate compliance with environmental mitigation measures it has agreed to implement. (h) Energy Conservation. The Uniform Guidance requires third party contract provisions as necessary for compliance with applicable energy efficiency standards and policies of State energy conservation plans issued under the Energy Policy and Conservation Act, as amended, 42 U.S.C. Sections 6321 et seq. (i) Legal Restrictions. Any Federal, State, or local restrictions on the Yakima Transit's acquisitions (discussed further in FTA C4220.1F Ch. IV). (j) Third Party Contract Provisions. The specific third party contract provisions required for each third party contract including requirements that each third party contractor extend those provisions to its subcontractors to the extent required (see APPENDIX D). (k) Sources. The availability and use of various sources of property and services (discussed further in FTA C4220.1F Ch. V). (1) Resolution of Third Party Contracting Issues. Procedures to resolve third party contracting issues (discussed further in FTA C4220.1F Ch. VII). Contact the City of Yakima Procurement Manager at 509-575-6093 if issues arise. If issue is due to a protest, follow Bid Protest Procedures in Section 10. (m) Prohibitions. The Common Grant Rules prohibits solicitation requirements that contain features that unduly restrict competition. FTA recipients are also prohibited by 49 U.S.C. Section 5325(h) from using FTA assistance to support an exclusionary or discriminatory specification. Some situations considered to be impermissibly restrictive of competition include, but are not limited to, the following, all of which are identified in the Uniform Guidance: 10 1 Excessive Qualifications. Imposing unreasonable business requirements for bidders or offerors. 2 Unnecessary Experience. Imposing unnecessary experience requirements for bidders and offerors. 3 Improper Prequalification. Using prequalification procedures that conflict with the prequalification standards described in subsection 3.9 of this Chapter. 4 Retainer Contracts. Making a noncompetitive award to any person or firm on a retainer contract with Yakima Transit if that award is not for the property or services specified for delivery under the retainer contract. 5 Excessive Bonding. To encourage greater contractor participation in FTA assisted projects, FTA does not require the h to impose bonding requirements on its third party contractors other than construction bonding specified by the Common Grant Rules and this circular for construction. FTA discourages unnecessary bonding because it increases the cost of the contract and restricts competition, particularly by disadvantaged business enterprises. Bond companies exercise their discretion and assure their profits primarily by declining to undertake excessive risks. Consequently many bidders have limited "bonding capacity." Unnecessary performance bonding requirements reduce a prospective bidder's or offeror's capability to bid or offer a proposal on bonded work. Small businesses with short histories may have particular difficulty obtaining bonds as may be specified. Nevertheless, even though bonding can be expensive, FTA recognizes that Yakima Transit might find bid, performance, or payment bonds to be desirable. Because bonding requirements can limit contractor participation, FTA expects the Yakima Transit's bonding requirements to be reasonable and not unduly restrictive. FTA, however, will not challenge State or local bonding requirements as unreasonably restrictive of competition, even though they might exceed Federal requirements. Nevertheless, if Yakima Transit's bonding policies result in such "excessive bonding" that it would violate the Common Grant Rules as restrictive of competition. FTA will not provide Federal assistance for those procurements. Thus if Yakima Transit's bonding policies far exceed those described in this subparagraph or are permissible under State or local law, Yakima Transit should obtain FTA's written concurrence to ensure the availability of Federal assistance for the project. (n) Brand Name Only. Complimentary to 3.1.e, Specifying only a "brand name" product without allowing offers of "an equal" product, or allowing "an equal" 11 product without listing the salient characteristics that the "equal" product must meet to be acceptable for award. (o) In -State or Local Geographic Restrictions. Specifying in -State or local geographical preferences, or evaluating bids or proposals in light of in -State or local geographic preferences, even if those preferences are imposed by State or local laws or regulations. In particular, 49 U.S.C. Section 5325(i) prohibits an FTA recipient from limiting its bus purchases to in -State dealers. Exceptions expressly mandated or encouraged by Federal law include the following (see FTA.c4220.1F, VI, 2.(4)(g): 1 Architectural Engineering (A&E) Services. Geographic location may be a selection criterion if an appropriate number of qualified firms are eligible to compete for the contract in view of the nature and size of the project. 2 Licensing. A State may enforce its licensing requirements, provided that those State requirements do not conflict with Federal law. 3 Major Disaster or Emergency Relief. Federal assistance awarded under the Stafford Act, 42 U.S.C. Section 5150, to support contracts and agreements for debris clearance, distribution of supplies, reconstruction, and other major disaster or emergency assistance activities permits a preference, to the extent feasible and practicable, for organizations, firms, and individuals residing or doing business primarily in the area affected by a major disaster or emergency. (p) Organizational Conflicts of Interest. Engaging in practices that result in organizational conflicts of interest as prohibited by the Common Grant Rules: 1 Occurrence. An organizational conflict of interest occurs when any of the following circumstances arise: a Lack of Impartiality or Impaired Objectivity. When the contractor is unable, or potentially unable, to provide impartial and objective assistance or advice to Yakima Transit due to other activities, relationships, contracts, or circumstances. b Unequal Access to Information. The contractor has an unfair competitive advantage through obtaining access to nonpublic information during the performance of an earlier contract. c Biased Ground Rules. During the conduct of an earlier procurement, the contractor has established the ground rules for a future procurement by developing specifications, evaluation factors, or similar documents. 12 2 Remedies. FTA expects Yakima Transit to analyze each planned acquisition in order to identify and evaluate potential organizational conflicts of interest as early in the acquisition process as possible, and avoid, neutralize, or mitigate potential conflicts before contract award. (q) Restraint of Trade. Supporting or acquiescing in noncompetitive pricing practices between firms or between affiliated companies. Questionable practices would include, but not be limited to submissions of identical bid prices for the same products by the same group of firms, or an unnatural pattern of awards that had the cumulative effect of apportioning work among a fixed group of bidders or offerors. (r) Arbitrary Action. Taking any arbitrary action in the procurement process (see FTA C4220. 1F, VI, 2.a (4)(i)). (s) Term. Third party contracts other than Rolling Stock (such as property, services, leases, construction, revenue, and so forth) are not encumbered by Federal requirements restricting the maximum periods of performance. Nevertheless, the duration of Yakima Transit's other contracts must be reasonable (see FTA C4220.1F, IV, 2.e.(10). (t) Adequate Third Party Contract Provisions. The Uniform Guidance requires that all third party contracts include provisions adequate to form a sound and complete agreement. Compliance with Federal laws and regulations will usually result in the addition of many other contract provisions to ensure compliance with those laws and regulations. See, Chapter IV of this circular for requirements applicable to third party contractors and the property and services those third party contractors agree to provide. Because bid and offers can at times be ambiguous, in its solicitation documents, Yakima Transit reserves the right to request additional information before making an award. Yakima Transit also reserves the right to seek clarification from any bidder or offeror about any statement in its bid or proposal that Yakima Transit finds ambiguous (see FTA C4220.1f, VI, 3.c(1)(b), FTA C4220.1F, VI, 3.d.2(c). 3.2 Equal Employment Opportunity Policy The City of Yakima has adopted an Equal Employment Opportunity (EEO) Policy which applies to both internal hiring and promotion practices, as well as, to vendors who do business with Yakima Transit. All Requests for Proposal and Invitations for Bids issued by Yakima Transit require the Bidder to certify that it: 13 • Does not discriminate against any employee or applicant for employment, due to race, religion, pregnancy, medical condition, ancestry, marital status, gender identity, physical/mental disability, sexual orientation, sex, age, creed, color, or national origin; • Is in compliance with all Executive Orders and federal, state and local laws regarding fair employment practices and non-discrimination in employment; • Agrees to demonstrate positively and aggressively the principle of equal opportunity in employment. 3.3 Disadvantaged Business Enterorise Program The Federal Transit Administration (FTA) requires that recipients of FTA grant assistance take necessary and reasonable steps to ensure that Disadvantaged Business Enterprises (DBE's) are afforded the maximum opportunity to participate in the performance of contracts which are financed in whole or in part with federal funds. As evidence of compliance, Yakima Transit must set goals for DBE participation in such contracts which are expected to be awarded during the following fiscal year and describe efforts from the previous fiscal year. Yakima Transit's DBE goals must be filed every three years with FTA by August 1st. For the purpose of this program, a DBE is defined as: a small business concern, which is both owned and controlled by socially and economically disadvantaged persons. This means that disadvantaged individuals must own at least 51% of the business and control the management and daily operations of the business. Included in the classification of disadvantaged individuals are United States citizens who are: African Americans, Hispanic Americans, Native Americans, Asian -Pacific Americans, Asian -Indian Americans, women or members of other groups or individuals who the Small Business Administration (SBA) has determined are economically and socially disadvantaged under Sec. 8(a) of the Small Business Act. 3.4 Veteran's Employment Yakima Transit and it's subrecipients of Federal financial assistance shall ensure that contractors working on a capital project funded using such assistance give a hiring preference, to the extent practicable, to veterans (as defined in section 2107 of title 5) who have requisite skills and abilities to perform the construction work required under the contract. This subsection shall not be understood, construed or enforced in any manner that would require an employer to give preference to any veteran over any equally qualified applicant who is a member of any racial or ethnic minority, female, an individual with a disability, or former employee (see FTA C4220.1F, IV, 2.c(1)(C). 3.5 System for Ensuring the Most Efficient and Economic Purchase Reference FTA C 4220.1F, Ch. 111, 1b,c,e: Grantees are required to establish procedures to avoid the purchase of unnecessary property and services they do not need. 14 The FTA required procedures are established to avoid the purchase of unnecessary property and services. This manual is intended to ensure that measures are implemented so that no duplicative or unnecessary purchases are made, including duplicative items and quantities or options whose use is unlikely. Additionally, the Purchasing Manager will, in their sole discretion, determine whether to consolidate or break out procurements to obtain a more economical purchase. These processes are included as part of the requisition approval process and the procurement approval process implemented at the City of Yakima. 3.5.1 Lease Versus Purchase Reference FTA C 4220.1F Ch. IV, 1e: To obtain the best value, Yakima Transit should review lease versus purchase alternatives for acquiring property and, if necessary, should obtain an analysis to determine the more economical alternative. Yakima Transit may use FTA capital assistance to finance the costs of leasing eligible property if leasing is more cost effective than full ownership. Before Yakima Transit may lease an asset, FTA regulations, "Capital Leases," 49 CFR Part 639, Subpart C, require Yakima Transit to make a written comparison of the cost of leasing the asset compared with the cost of purchasing or constructing the asset. Costs used in the comparison must be reasonable, based on realistic current market conditions, and based on the expected useful service life of the asset. 3.6 Written Record of Procurement Histo Reference FTA C 4220.1F, Ch. 111, 3.d: Grantee's are required to maintain and make available records detailing the history of each procurement The Purchasing Manager shall ensure a written record of procurement history for all procurement actions, over the competition limit (currently over $7,500). Yakima Transit shall endure a written record of procurement history for all procurement actions under $7,500 regardless of dollar value. At a minimum, records are to include the rationale for the method of procurement, the reason for the selection of the contract type, the reason for contractor selection or resection, and the basis for the contract price. 3.7 Independent Cost Estimate Reference FTA C4220.1F, Ch. VI, 6: In connection with every procurement action, grantees must make independent estimates before receiving bids or proposals. An independent estimate is required for all procurements utilizing FTA funds over $2,000 and for all contract change orders and amendments. Independent does not mean independent of Yakima Transit, it means independent andrip or to bids and proposals being received. Yakima Transit must document the date and the source of the independent cost estimate (ICE) in each procurement file (whether Transit or Purchasing), but it is the responsibility of the Transit Project Planner to prepare the actual estimate. A budget number is not acceptable as an ICE. Additionally, the ICE is the foundation for the later price analysis that is also completed by the Transit Project Planner. 15 3.8 Brand Name or Eaual Reference FTA C 4220.1F, Ch.///, 3a: When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a "brand name or equal" description may be used as a means to define the performance or other salient characteristics of a procurement. The specific features of the named brand which must be met by offerors shall be clearly stated. Chapter VI, Section 2(a)(3) and (a)(4)(f) of FTA C 4220.1F indicates that specifying only a "brand name" product instead of allowing "an equal" product to be offered without listing its salient characteristics is considered to be restrictive of competition. Yakima Transit shall work with requestors to see if brand names can be removed from the specification by substituting design or performance specifications. Whenever brand names are used, the solicitation must include a phrase such as "or equal," "or approved equal," or "similar in design, construction and performance" with the brand name. Many standard equipment and construction documents also contain a clause in the general provisions that states that even if the phrase "or approved equal" is inadvertently omitted, it is implied after any brand name. If "or equal" is specified, the minimum essential characteristics and standards to which the material, product or service must conform if it is to satisfy its intended use must be included. 3.9 Prequalification System Reference FTA C 4220.1F, VI, 1c: Prequalification lists are most commonly used in procurements of property involving lengthy evaluations needed to determine whether it satisfies Yakima Transit's standards. The Common Grant Rule for governmental recipients permits a recipient to prequalify people, firms, and property for procurement purposes under the following standards: (1) Lists. Yakima Transit ensures that all prequalification lists it uses are current. (2) Sources. Yakima Transit ensures that all prequalification lists it uses include enough qualified sources to provide maximum full and open competition. (3) Qualification Periods. Yakima Transit permits potential bidders or offerors to qualify during the solicitation period (from the issuance of the solicitation to its closing date). FTA, however, does not require a recipient to hold a particular solicitation open to accommodate a potential supplier that submits property for approval before or during that solicitation. Nor must a recipient expedite or shorten prequalification evaluations of bidders, offerors, or property presented for review during the solicitation period. Prequalification should not be confused with reviews of technical qualifications that are an essential process in two-step procurements and qualifications -based procurements. 16 4. CODE OF CONDUCT Reference FTA C 4220.1F, Ch. lll, 1: Requires each grantee to maintain written standards of conduct governing the performance of its employees engaged in contract award and administration. 4.1 Purpose & Applicability As a governmental institution Yakima Transit must be vigilant in its protection of the public trust. Toward this end employees, officers, and agents of Yakima Transit must conduct themselves in a manner which will foster public confidence in the integrity of Yakima Transit's procurement system. This section is intended to prescribe standards of conduct designed to ensure honesty and integrity in Yakima Transit procurements. The standards established herein shall apply to all activities associated with the procurement of goods and services, and shall extend to all employees, officers, directors, and agents of Yakima Transit. 4.2 Conflict of Interest Reference FTA C 4220.1F, Ch. VI, 2a: An organizational conflict of interest is considered to be restrictive of competition. Note: ensure there is an OCI clause in the contract terms. No employee, officer, director, or agent of Yakima Transit shall participate in the selection, award, or administration of a contract or purchase order if a conflict of interest, whether real or apparent, would be involved. Such conflict would arise when any of the following has a financial or other interest in the firm(s) considered or selected for award: (a) A Yakima Transit employee, officer, director, or agent; (b) Any member of his/her immediate family; (c) His/her business associate; or, (d) An organization which employs or is about to employ any of the above. Employees, officers, directors, and agents of Yakima Transit shall be subject to the laws of the State of Washington concerning conflicts of interest for public officials. Anyone found to violate standards established by such laws may be subject to the penalties, sanctions, or other disciplinary actions provided for therein or as provided in City of Yakima employment policies. In cases where an employee, officer, director, or agent of Yakima Transit may have a conflict or potential conflict of interest, it is the policy of Yakima Transit that such individual(s) must promptly report the conflict in writing to the Transit Manager and communicated immediately to the Purchasing Manager. Failure to adhere to this requirement shall constitute a violation of Yakima Transit policy and may subject the violator to disciplinary action. 17 Organizational conflicts of interest are considered to be restrictive and are therefore prohibited on all Yakima Transit procurements. An organizational conflict of interest exists when: • A contractor is unable or potentially unable to provide impartial and objective assistance or advice due to other activities, relationships, contracts or circumstances; • A contractor has an unfair competitive advantage through obtaining access to nonpublic information; or, • During the conduct of an earlier procurement, a contractor has established the ground rules for a future procurement by developing specifications, evaluation factors, or similar documents. 4.3 Gifts, Gratuities and Lobbying No employee, officer, director, or agent of Yakima Transit may solicit or accept, either directly or indirectly, any gift, gratuity, loan, or other item or service of value if: (a) The discharge of his/her official duties would be influenced; (b) He/she has been, is presently, or may in the near future be involved in any official act or action affecting the donor or lender; Invitations for business lunches, parties, or similar functions shall be declined if received from bidders or other parties involved during a pending procurement. This policy is intended to avoid any situation which may give an appearance of improper influence in Yakima Transit procurement activities. Notwithstanding the above, this section shall not apply to the following: (a) An occasional non -pecuniary gift of nominal value accepted in the ordinary course of a business meeting; (b) Unsolicited advertising or promotional material of nominal intrinsic value; (c) A gift, gratuity, favor, loan, or other items of value when circumstances make it clear that an obvious long-standing social or family relationship, rather than a business relationship, is the motivating factor. Failure to adhere to the provisions of this section shall constitute a violation of Yakima Transit policy and may subject the violator to disciplinary action to the extent permitted by state or local law or regulations. Additionally, contractors who apply or bid for an award of $150,000 or more, which involves federal funds, shall file the 49 CFR Part 20 certification, "New Restrictions on Lobbying." Each tier certifies to the tier above that it will not and has not used federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any Agency, a member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any federal Contract, grant or any other M award covered by 31 USC § 1352. Each tier shall also disclose the name of any registrant under the Lobbying Disclosure Act of 1995, who has made lobbying contacts on its behalf with non- federal funds with respect to that federal Contract, grant or award covered by 31 USC § 1352. Such disclosures are forwarded from tier to tier up to Yakima Transit. 4.4 Contacts with Vendors, Bidders and Proposers Prior to the issuance of a procurement solicitation, informational and research contacts with prospective vendors may be made for the purpose of gathering needed data. However, in making such contacts, Yakima Transit employees, officers, directors, and agents shall avoid any commitment, or implication thereof, of a possible future contract. Accordingly, requests for substantial complimentary services or supplies which may imply an obligation on the part of Yakima Transit shall be avoided. Whenever a procurement is in process (e.g., during the solicitation, evaluation, negotiation, and award phases) all contacts with potential contractors or vendors shall be made through the Purchasing Manager. 4.5 Release and use of Information Any requested restrictions on the use of data contained within a proposal, must be clearly stated in the proposal itself. Proprietary information submitted in response to a request will be handled in accordance with applicable Owner procurement regulations and the Washington State Public Disclosure Act (RCW Ch. 42.56). Proprietary restrictions normally are not accepted. However, when accepted, it is the Proposer's responsibility to defend the determination in the event of an appeal or litigation. Unless otherwise noted, data contained in a proposal, all documentation provided therein, and innovations developed as a result of the contract cannot be patented or copyrighted. All data, documentation, and innovations become the property of the City. 4.6 Proprietary or Confidential Design Information Washington State Public Disclosure Act (RCW Ch. 42.56) requires public agencies in Washington to promptly make public records available for inspection and copying unless they fall within the specified exemptions contained in the Act, or are otherwise privileged. Documents submitted under this Specification shall be considered public records and, with limited exceptions, will be made available for inspection and copying by the public. It is the intent of the Owner to post all RFP responses online and available to the public after the contract is signed. If the Proposer considers any submittal document to be protected from disclosure under the law, the Proposer shall clearly identify on the page(s) affected such words as "CONFIDENTIAL," "PROPRIETARY" or BUSINESS SECRET." The Proposer shall also submit an index with its submittal identifying the affected page number(s) and location(s) of all such identified material. Marking the entire submittal as "confidential" or "proprietary" is not acceptable and is grounds to reject such submittal. In addition, the required electronic copy shall have any perceived 19 confidential materials segregated into a separate electronic file, as the main RFP response may be automatically released upon contract signing without notification. If a request is made for disclosure of such identified documents or portions thereof, the Owner will determine whether the material is exempt from public disclosure. If, in the Owner opinion, the material is subject to disclosure, the Owner will notify Proposer of the request and impending release and allow the Proposer 10 days to take whatever action it deems necessary to protect its interests. All expense of such action shall be borne solely by the Proposer, including any damages, attorney's fees or costs awarded by reason of having opposed disclosure and Proposer shall indemnify Owner against same. If the Proposer fails or neglects to take such action within said period, the Owner will release all materials deemed subject to disclosure. Submission of materials in response to this solicitation shall constitute assent by the Proposer to the foregoing procedure and the Proposer shall have no claim against the Owner on account of actions taken pursuant to such procedure. No employee, officer, director, or agent of Yakima Transit shall use confidential information for the actual or anticipated benefit of themselves, their relatives, or persons with whom they have a common financial interest. 5. GENERAL GUIDELINES The method which is used to procure an item or a service depends on two factors: First, the item being procured; and second, the cost. The following define the procedures which must be followed for each type of procurement. 5.1 Supplies, Equipment and Materials 5.1.1 Less than $3,000 (Informal Purchase) Purchases less than $3,000 are not subject to bidding requirements as long as whoever authorizes the purchase documents that the price to be fair and reasonable. Prices may be established through phone quotes or other appropriate means. Such purchases are to be made in accordance with the procedures for informal purchases described in Sec. 4. Purchasing involvement is not required and Yakima Transit shall keep their own records. 5.1.2 $3,000 to $7,499 Procurements $3,000 to $7,500 require three written quotes from responsive and responsible suppliers. A deadline for bid submittal shall be established. Purchasing involvement is not required and Yakima Transit shall keep their own records. 5.1.3 $7,500 to $24,999 Procurements $7,500 to $24,999 require three written quotes from responsive and responsible suppliers. A bid submittal deadline shall be established. Purchasing involvement 20 required. Submit requisition and quotes to Purchasing. Purchasing will review, confirm order, and keep records. 5.1.4 Exceeds $25,000 Purchases of supplies, equipment and material exceeding $25,000 require a competitive bidding process which is described in Section 5. Purchases of supplies, materials or equipment over $25,000 require City Manager approval prior to contract award. 5.2 Construction Protects 5.2.1 $1,999 and under Construction projects of $1,999 or less are not subject to bidding requirements, as long as, whoever authorizes the project considers the price to be fair and reasonable. Prices may be established through phone quotes or other appropriate means. Such procurements are to be made in accordance with the procedures for informal purchase described in Section 4. Purchasing involvement is not required and Yakima Transit shall keep their own records. 5.2.2 $2,000 to $10,000 Construction projects in the range of $2,000 to $10,000 require written quotes from at least three vendors (if possible) and are to be made in accordance with the procedures for informal purchases described in Section 4. At the discretion of the Maintenance Manager, a deadline for bid submittal may be established. Federal funded procurements must comply with the Davis -Bacon Act if $2,000 or more. Purchasing involvement is not required and Yakima Transit shall keep their own records. 5.2.3 $10,000.01 to $34,999 (Limited Public Works) Construction projects in the range of $10,000 to $34,999 require a competitive bidding process which is described in Section 5 and in accordance with RCW 39.04.155, utilizing the Small Works Roster. Construction projects over $10,000 require approval by the City Manager prior to contract award. Prevailing wages must be paid in contracts under this category. Purchasing involvement required. Submit requisition and quotes to Purchasing. Purchasing will review, confirm order, and keep records. 5.2.4 Exceeds $34,999 to $300,000 (Small Works Roster) Construction projects in the range of $34,999 to $300,000 require a competitive bidding process which is described in Section 5, utilizing the Small Works Roster. Construction projects over $34,999 require approval by the City Manager prior to contract award. Prevailing wages must be paid in contracts under this category. Engineering involvement required. 21 5.2.5 Buy America FTA Assisted third party Construction Projects exceeding $150,000 require the third party contractor to provide property produced or manufactured in the United States for use in their project. Property that the contractor acquires to perform its construction activities for Yakima Transit, such as tools, machinery, and other equipment or facilities, is not covered by FTA's Buy America requirements unless Yakima Transit intends to take possession of that property upon completion of the project. Thus, if a third party contractor is acquiring property for its general inventory of equipment or facilities to conduct its overall business affairs, Yakima Transit may enter the cost of that acquisition into its calculations of overhead amounts applicable to the FTA assisted project irrespective of whether that property would comply with FTA's Buy America regulations (see FTA C4220.1F, 2.i.(9); 49 CFR 661.6) 5.2.6 Design -Bid -Build The design -bid -build procurement method requires separate contracts for design services and for construction (see FTA C4220.1F, VI, 3.g and City of Yakima Administrative Code 2- 800). (1) Design Services. For design services, Yakima Transit must use qualifications -based procurement procedures, in compliance with applicable Federal, State and local law and regulations. (2) Construction. Because Yakima Transit may not use qualifications -based procurement procedures for the actual construction, alteration or repair of real property, they generally must use competitive procedures for the construction. These may include sealed bidding or competitive negotiation procurement methods, as appropriate. 5.2.7 Design -Build. The design -build procurement method consists of contracting for design and construction simultaneously with contract award to a single contractor, consortium, joint venture, team, or partnership that will be responsible for both the project's design and construction. FTA's enabling legislation expressly authorizes the use of FTA capital assistance to support design - build projects "after the recipient complies with Government requirements," 49 U.S.C. Section 5325(d)(2) (see FTA C4220.1F, VI, 3.g and City of Yakima Administrative Code 2-800). (1) Procurement Method Determined bV Value. First, Yakima Transit must separate the various contract activities to be undertaken and classify them as design or construction, and then calculate the estimated total value of each. Because both design and construction are included in a single procurement, the FTA expects Yakima Transit to use the procurement method appropriate for the services having the greatest cost, even though other necessary services would not typically be procured by that method. 22 (a) Construction Predominant. The construction costs of a design -build project are usually predominant so that Yakima Transit would be expected to use competitive negotiations or sealed bids for the entire procurement rather than the qualification - based "Brooks Act" procurement procedures. Specifically, when construction costs will be predominant, unless FTA determines otherwise in writing, Yakima Transit may not use qualifications -based procurement procedures to acquire architectural engineering, program management, construction management, feasibility studies, preliminary engineering, design, architectural and engineering, surveying, mapping, or related A&E services unless required by State law adopted before August 10, 2005. (b) Design Services Predominant. In the less usual circumstance in which the cost of most work to be performed will consist of costs for architectural and engineering, program management, construction management, feasibility studies, preliminary engineering, design, architectural engineering, surveying, mapping, or related A&E services, FTA expects Yakima Transit to use qualifications -based procurement procedures based on the "Brooks Act,"' 40 U.S.C. Sections 1101 through 1104. (2) Selection Processes. Yakima Transit may structure its design -build procurement using one or more steps as described below: (a) One -Step Method. Yakima Transit may undertake its design -build procurement in a single step. (a) Two -Step Method. Another procurement method Yakima Transit may use for large design -build projects is a two-step selection process as authorized for Federal Government use by 41 U.S.C. Section 253m. This method consists of: 1 Review of Technical Qualifications and Approach. The first step is a review of the prospective contractors' technical qualifications and technical approach to the project. Yakima Transit may then narrow the competitive range to those prospective contractors with satisfactory qualifications that demonstrate a technically satisfactory approach. 2 Review of Complete Proposals. The second step consists of soliciting and reviewing complete proposals, including price, submitted by prospective contractors first determined to be qualified. By using this two-step method, it will not be necessary for Yakima Transit to undertake extensive proposal reviews, nor will prospective offerors need to engage in expensive proposal drafting. This two-step selection procedure is separate and distinct from prequalification and is but one procurement method available to Yakima Transit. 5.3 Services (includes Professional (non -A&E), Personal and Revenue -Producing Services 23 Revenue Contract means a contract in which Yakima Transit or subrecipient provides access to public transportation assets for the primary purpose of either producing revenues in connection with a public transportation related activity, or creating business opportunities involving the use of FTA assisted property (see FTA C4220.1F, 1, 5.z.aa, FTA C4220. 1F, 11, b(4)J. Yakima Transit has broad latitude in determining the extent and type of competition appropriate for a particular revenue contract. Nevertheless, to ensure fair and equal access to FTA assisted property and to maximize revenue derived from such property, Yakima Transit should conduct its revenue contracting as follows: (a) Limited Contract Opportunities. If there are several potential competitors for a limited opportunity (such as advertising space on the side of a bus), then Yakima Transit should use a competitive process to permit interested parties an equal chance to obtain that limited opportunity. (b) Open Contract Opportunities. If, however, one party seeks access to a public transportation asset (such as a utility that might seek cable access in a subway system), and Yakima Transit is willing and able to provide contracts or licenses to other parties similarly situated (since there is room for a substantial number of such cables without interfering with transit operations), then competition would not be necessary because the opportunity to obtain contracts or licenses is open to all similar parties. 5.3.1 Under $2,000 Procurements for services less than $2,000 are not subject to bidding requirements as long as the person authorizing the purchase considers the price to be fair and reasonable. Prices may be established through phone quotes or other appropriate means. Such purchases are to be made in accordance with the procedures for informal purchases described in Section 4. Purchasing involvement is not required and Yakima Transit shall keep their own records. 5.3.2 $2,000 to $7,499 Procurements for services from $2,000 to $7,499 require written or oral quotes from three vendors to ensure a fair and reasonable price and are to be made in accordance with the procedures for informal purchases described in Sec. 4. At the discretion of the Transit Manager, a deadline for bid submittal may be established. A bid submittal deadline shall be established. Purchasing involvement is not required and Yakima Transit shall keep their own records. 5.3.3 $7,500 to $24,999 Procurements $7,500 to $24,999 require three written quotes. A deadline for bid submittal shall be established. Purchasing involvement is not required and Yakima Transit shall keep their own records. Legal must review and City Manager must sign all service contracts. 24 5.3.4 $25,000 to $149,999 Procurements $7,500 to $149,999 require three written quotes. A deadline for bid submittal shall be established. Purchasing involvement required. Submit requisition and quotes to Purchasing. Purchasing will review, confirm order, and keep records. Legal must review and City Manager must sign all service contracts. 5.3.5 Exceeds $150,000 Contracts for service exceeding $150,000will be made in accordance with the procedures for formal purchases described in Section 5. Service contracts exceeding $150,000 require a formal advertised Request for Proposals (RFP), review by Legal and approval by the City Manager prior to contract award. Multiple years or optional year proposals will be valued in their entirety. 5.4 Dividing Procurements Prohibited The requirements outlined in this section apply to the total purchase amount of supplies, equipment, materials, construction or services. Related parts of a procurement are not to be divided for the express purpose of avoiding bidding requirements. 5.5 Capital Purchases For financial purposes, capital purchases are defined as items over $5,000 with a useful life of over a year. Such expenditures must be charged against capital accounts, rather than operating accounts. In addition to all other procurement requirements listed in Section 4 or 5, requisitions for capital purchases must be approved by the Finance Director, who is also responsible for assigning a capital account number after the appropriate approvals. 5.6 Rolling Stock The entire process for procuring rolling stock can be broken into 3 phases: 1) Select the method of procurement, 2) Manage the solicitation process, and 3) Make award and take delivery. There are 3 methods that can be used when buying rolling stock: 1) Invitation for Bid (IFB), 2) Request for Proposal (RFP), and 3) Piggybacking (see Piggybacking requirements in Sec. 11.2.4). Step 1: Selecting the Method of Procurement The decision to piggyback or manage a new solicitation is made once funding has been received and the purchase request has been developed. Procurements of rolling stock and replacement part contracts are limited by law to five (5) or seven (7) years, 25 Step 2: Managing the Solicitation Piggybacking: Verify assignability clause, verify inclusion of FTA clauses and Buy America certifications (include Buy America waivers, if applicable), conduct price analysis, and determine any desired changes to specifications and ensure they are in -scope changes. IFB: Contract must be awarded to the lowest price responsive/responsible bidder, bidders must have the opportunity to submit Requests For Approved Equals (RFA) and RFA responses must be provided to all bidders, and Buy America pre -award review must be conducted for procurements above $150K or a waiver must be obtained. RFP: Evaluation criteria must be developed and listed in order of importance, award is made to the highest rated (best value) offeror, and Buy America pre- award review must be conducted for procurements above $150k or a waiver must be obtained (see FTA C4220.1F, 2.i.(9), 49 CFR 661.6). Step 3: Making the Award and Taking the Delivery • A Buy America post -award audit must be conducted for all procurements above $100K during manufacturing. • After the initial order quantity has been fulfilled, options may need to be released. 5.6.1 Preference for U.S. Property -Buy America Pre -award and post -delivery audits must be conducted for all rolling stock procurements. Transit Project Planner must verify 60% domestic product, review and verify proposed final assembly, and contractor may request a buy America waiver. All information must be documented in the relevant procurement files (see FTA C4220.1F, 2.e (6) and 2.i(9), 49 CFR 661. 6, 49 CFR 663). • Preaward Review and Post Delivery Review. Each third party contract to acquire rolling stock must include provisions for compliance with applicable requirements of 49 U.S.C. Section 5323(m) and those provisions of FTA regulations, "Pre -Award and Post -Delivery Audits of Rolling Stock Purchases," 49 CFR Part 663, that do not conflict with 49 U.S.C. Section 5323(m). Pre -Award requirements. o Review and verify 60% domestic content AND U.S. final assembly location, operations and total cost OR request and receive a Buy America waiver. o Check bid specification compliance with solicitation specifications AND complete a manufacturer capability study. 26 • Post -Award requirements: o Review and verify 60% domestic content AND U.S. final assembly location, operations and total cost OR Request and receive Buy America waiver. o Complete resident inspector's report AND complete visual inspections and performance tests OR Complete visual inspection and road tests for procurements of 10 or more buses. o Verified FMVSS (Federal motor Vehicle Safety Standards) sticker affixed to each bus. 6. PROCEDURES FOR INFORMAL PURCHASES ($0410,000) The guidelines contained in Sec. 5 describe those circumstances under which informal purchase procedures are permitted. This section of Yakima Transit's Procurement Policies & Procedures describes the process in detail. 6.1 Micro -Purchases Micro -Purchases between $200 and $2,000, utilize P -Card whenever possible. When not possible, submit Cayenta Requisition and route for multi -level -approval (MLA). 6.2 The Purchase Order After MLA, Cayenta Requisition may be turned into a Purchase Order (PO) by Yakima Transit's Satellite Buyer. Vendors shall be told to include their Purchase Order number on all correspondence, including packages, invoices, credit memos, etc. 6.3 Receiving/Approval to Pay 6.3.1 Receipt of Goods The Transit Manager (or designee) is responsible for receipt of physical merchandise ordered. Upon receipt, the packing slip shall be compared to the goods received. If correct, the packing slip shall be signed and dated by the department manager (or designee) and then sent to the Yakima Transit Satellite Buyer, who verifies it against the Purchase Order. Yakima Transit shall retain packing slips. 6.3.2 Receipt of Services The Transit Manager (or designee) is responsible for the receipt of services. Upon completion, the manager shall sign all documents that confirm the proper completion of 27 services performed and forward the signed documents to the Yakima Transit Satellite Buyer who verifies receipt to the purchase order and enters into the receiving system. 6.4 Pettv Cash Petty Cash shall be handled through Public Works in accordance with Administrative Code 3- 300 — Petty Cash policy. 6.5 Emergency Procurements For internal control purposes, deviations from the process outlined in this section are permitted only in emergency situations, as determined by the City Manager or his designee. Emergency procurements are those which, due to unusual circumstances beyond the control of the requisitioner, cannot be foreseen or otherwise provided for in the routine manner, but which must be accomplished without delay. Emergencies usually involve urgent repair of revenue vehicles, significant mechanical facilities or utilities, correction of unsafe conditions, and adverse health and safety circumstances. When an emergency arises, the requester may inform the Transit Manager of the requirements, including the vendor's name and the approximate amount of the procurement. If the estimate to remedy the emergency is over $7,500 the Purchasing Manager or her designee must be involved. In instances where a valid emergency exists and material must be obtained after normal working hours, the requester may follow one of several routes: a) Make the purchase from a firm willing to accept an oral Purchase Order or use a P -Card. The requestor must document the need for the emergency purchase, the negotiations with the vendor (if applicable), and justification for the price of the purchase. If using a direct purchase order, the information must be documented in writing the next day, and the Transit Manager should be notified immediately and presented with the supporting documentation. b) P -Card reconciliation would be handled per City of Yakima P -Card policy. 6.6 Supply, Equipment, Service Contracts and Maintenance Agreements Supply Contracts, Service Contracts and Maintenance Agreements are legal binding documents stating that a particular vendor will perform the specified services, maintenance or deliver supplies agreed upon and described. Bids should be solicited in the same manner as for other informal purchases. Repairs of equipment not covered by service contracts or maintenance agreements must have a Direct Purchase Order number issued before the equipment can be sent or taken in for repair. If the equipment is to be shipped or hand carried for repair, a Purchase Requisition should be prepared (including estimates) for proper record keeping prior to shipment. W For all repairs, the following information is required: 1) Make, model and serial number of equipment. 2) Inventory tag number. 3) Department where equipment is located. 4) Hourly or flat rate to be charged. 5) If the item being repaired is an accessory to a major piece of equipment, provide the above information from the equipment to which it is an accessory. 7. FORMAL PROCUREMENT PROCEDURES 7.1 Formal procurement procedures must be followed when the dollar value of the procurement exceeds $25,000, except for services. For procurement of services, these procedures must be applied to all contracts greater than $150,000, or less, if the City Manager requests it. There are three basic methods of conducting formal procurements: a. Competitive bidding; b. Competitive proposal; and, c. Non-competitive negotiation (see FTA C4220.1F, VI, 3.c (1)(b), FTA C4220.1F, VI, 3.d.2(c). 7.2 Sufficient Time All Bids and RFP's shall be advertised for a minimum of twelve (12) days in two issues in the City's legal Newspaper (Yakima Herald Republic) and on Purchasing's webpage at www.yakimawa.gov/services/purchasing. Bidders/Proposers shall be given sufficient time to prepare bids before the date of bid opening, depending upon complexity of the acquisition. Purchasing shall determine how many days is sufficient (see FTA C4220.1F, VI, 3, c (2)(a), (d) and (e). and 3.d. (2)(a)). 7.3 Resection of Bids or Proposals Any or all bids or proposals may be rejected if there is a sound, documented business reason (see FTA C4220.1 f, VI, 3. c. (2)(G). 7.4 Exercise of Options Yakima Transit's contracts may include options to ensure the future availability of property or services, so long as they are able to justify those options as needed for its public transportation 29 or project purposes. An option is a unilateral right in a contract by which, for a specified time, Yakima Transit may acquire additional equipment, supplies, or services than originally procured. An option may also extend the term of the contract. Yakima Transit may also exercise options held by another recipient, as long as terms and conditions of the option it seeks are substantially similar to the original contract, the price is better man market price, or that the option is more advantageous. For awards treated as sole source, options of underlying contract must be evaluated as part of the original contract. Exercising those options after contract award will result in a sole source award. Exercising an option after Yakima Transit has negotiated a lower or higher price will also result in a sole source award unless the price can be reasonably determined from the terms of the original contract, or that price results from Federal actions that can be reliably measured, such as changes in Federal prevailing labor rates, for example (see FTA C4220.1F, V, 7.a.9)1) and FTA C4220.1F, IV, 1.d.). 7.5 When to Use Competitive Bidding Competitive Bidding is the preferred method for procurement when: a. A fair and reasonable price can be established (a fair and reasonable price may be assumed when two or more firms submit independent, competing bids); b. Reasonably definite, design or performance specifications can be written; c. Adequate competition (two or more responsible bidders are willing and able to compete effectively for the business) can be anticipated; and, d. Reasonable estimate of costs can be made. e. The successful bidder can be selected on the basis of price and those price -related factors listed in the solicitation including, but not limited to, transportation costs, life cycle costs, and discounts expected to be taken. Apart from responsibility determinations discussed in later sections of this Chapter, contractor selection may not be determined on the basis of other factors whose costs cannot be measured at the time of award (see FTA C4220.1F, VI, 2.c.(d). 7.6 When to Use Competitive Proposal Competitive Proposal is to be used when: a. The items desired cannot be precisely defined, described or standardized; b. The contract is for research and development with an end product that may be conceptual in nature; c. The technical aspects and price will be negotiated; 30 d. Offerors will have the opportunity to revise the price or technical aspects of their proposals; e. Quantity and contractual factors must be considered along with price; and, f. Artistic and aesthetic value are more important considerations in evaluating the proposal than the price. 7.7 Procedures for Competitive Bidding All Formal Competitive Bidding and RFP solicitations are to be administered by the City of Yakima Purchasing Division. Contact Purchasing for more information. Purchasing will ensure procurements are handled in accordance with FTA requirements. 7.8 Determining Reasonableness of Price: Cost Analysis Price analysis is the process of examining and evaluating a prospective price without evaluation of the separate cost elements or proposed profit of the prospective supplier. Cost analysis is the review and analysis of a contractor's cost or pricing data and of the factors applied in projection from the data to the estimated costs, in order to form an opinion on the degree to which the contractor's proposed costs represent what performance of the contract should cost, assuming reasonable economy and efficiency. As compared to price analysis, cost analysis involves a more detailed review of the offeror's proposal and is used where Yakima Transit has less assurance of a fair and reasonable price. Cost plus percentage of cost and percentage of construction cost methods of contracting are prohibited. Note that in conducting both a cost and price analysis, the comparison should be against the original Independent Cost Estimate that was prepared before the solicitation of bids. The following procedure is to be followed: a. Verify contractor's cost data. b. Evaluate specific elements of costs and project these data to determine the effect on prices of such factors as: (i) The necessity for certain costs; (ii) The reasonableness of amounts estimated for the necessary costs; (iii) Allowances for contingencies; and (iv) The basis used for allocations of particular overhead costs to the proposed contract. c. When the necessary data is available, compare the contractor's estimated cost with: 31 (i) Actual costs previously incurred by the contractor; (ii) The contractor's last prior cost estimate for the same or similar estimates; (iii) Current cost estimates from other possible sources; and (iv) Prior estimates or historical costs of other contractors manufacturing the same or similar items. d. Forecasting future trends in costs from historical experience: (i) In periods of either rising or declining costs, an adequate cost analysis must include some evaluation of the trends. (ii) In cases involving recently developed, complex equipment, even in periods of relative price stability, trend analysis of basic labor and materials costs should be undertaken. Yakima Transit Staff are responsible for determining Cost Analysis. In performing a cost analysis, there are three questions that should be asked in the examination of costs, particularly those in the overhead area: (1) Is the cost allowable in accordance with Federal cost principles? (2) Is the cost allocable to the particular project? (3) Is the cost reasonable? See the Appendix 8 and E of this manual for forms related to cost and price analysis. 7.9 Basis of Award FTA C 4220.1F. Ch. VI. 8b. Grantees shall make awards only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Responsibility is a procurement issue that is determined after receiving bids or proposals and before making contract award. After evaluation of proposals in accordance with the criteria set forth in the RFP, the contract shall be awarded to the offeror of the proposal most advantageous to Yakima Transit, price and other factors considered. Contracts shall be made only with responsible and responsive contractors who possess the potential ability to perform successfully under the terms and conditions of the proposed procurement. As is the case with procurements made by competitive bid, consideration shall be given to such matters as contractor integrity and ethics, debarment and suspension, affirmative action and DBE, record of past performance, financial and technical capacity, or accessibility to other technical resources. Negotiated procurement records or files should provide at least the following pertinent information: justification for the use of negotiation in lieu of competitive bidding by an IFB; independent cost estimate; contractor selection; justification for contract type; determination and findings; record of negotiations; and cost or price analysis. Additionally, the procurement records must include a screenshot or printout of the EPLS/SAM search 32 conducted to ensure that the contractor selected is not on the debarment and suspension list, and that this is documented in the procurement file. 7.10 Procurement Selection Procedures FTA C4220.1F,V1, 3.c(1)(e) Discussions Unnecessary: Discussions with one or more bidders after bids have been submitted are expected to be unnecessary as award of the contract will be made based on price and price -related factors alone. This contrasts with Competitive Proposal procedures in which discussions with individual offerors are expected to be necessary and may take place at any time after receipt of proposals. However, a pre-bid conference with prospective bidders before bids have been received can be useful. FTA C 4220.1F. Ch.3.d. A grantee must state its reasons for contractor selection: During the award process, the Transit Manager must provide a written rationale for contractor selection. All solicitations must incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured and identify all requirements that offerors must fulfill and all other factors to be used in evaluating bids or proposals. 7.11 Special Procedures for Architect/Engineering Services Geographic Preference: FTA C 4220.1F, Ch.V1,2a. For A&E procurements, geographic location may be a selection criterion if an appropriate number of qualified firms are eligible to compete for the contract in view of the nature and size of the project Qualifications Exclude Price: FTA C 4220.1F, Ch.V1,3f. Qualifications -based competitive proposal procedures require that: an offerors qualifications be evaluated for contract award and price be excluded as an evaluation factor Serial Price Negotiations: FTA C4220.1F, Ch.V1,3f. Negotiations are conducted with only the most qualified offeror, failing agreement on price, negotiations with the next most qualified offeror be conducted until a contract award can be made to the most qualified offeror whose price is fair and reasonable to the grantee. Show results of negotiation. The Federal Circular in effect, requires that Yakima Transit use competitive negotiation procedures for qualifications -based procurement of architectural and engineering ("A/E" hereafter) services and related services pertaining to a construction project such as program management, construction management, feasibility studies, preliminary engineering, design, surveying, mapping, or related services. Following this method, competitors' qualifications are evaluated and the most qualified competitor is selected 33 subject to negotiation of fair and reasonable compensation. Under this method, Yakima Transit may not consider price as an evaluation factor in determining the most qualified offeror. Negotiation is conducted with only the most qualified offeror. This method, where price cannot be used as an evaluation factor and negotiations are conducted with only the most qualified offeror, can only be used in procurement of the above services. This method of procurement cannot be used to obtain other types of services even through a firm that provides the above types of services are also potential sources to perform other services. The steps to be used for proposal evaluation and contract negotiation for A/E contracts are as follows: 1. Evaluation team is assigned by the Transit Manager to review eligible firms and all responses to RFP. 2. Team evaluates the firms based on the stated evaluation criteria published in the RFP such as: a. Professional qualifications for performance of the required services. b. Specialized experience and technical competence in the type work required. c. Capacity to accomplish the work in the required time. d. Past performance in terms of cost control, quality of work and compliance with performance schedules. 3. Evaluation team holds discussions with the most highly qualified firms ("short list") 4. Evaluation team prepares a report for the City Manager recommending, in order of preference, those firms that are considered to be the most highly qualified to perform the required services. The report should include a description of the discussions and evaluations by the team to allow the City Manager to review the basis upon which the recommendations were made. The City Manager shall not add firms to the selection report. If recommended firms are deemed to be unqualified or the report is inadequate, the City Manager shall document the reasons therefore and return the report to the evaluation team for appropriate revision. 5. If the final selection isn't final yet, it shall be made by the City Manager from a list of the most highly qualified firms prepared by the Maintenance Manager or evaluation team. 6. After the final selection not final yet has taken place, Yakima Transit may release information identifying only the A/E firm with which an attempt will be made to negotiate a contract. If negotiations are terminated without awarding a contract to the highest rated firm, Yakima Transit may release information that negotiations will take place with the next highest rated firm. 7. The final selection not final yet authorizes negotiations to begin with the most qualified firm, which will be requested to submit a proposal that includes fees and cost estimates. 34 8. The negotiation of compensation to the contractor should represent a fair and equitable payment for the services performed. At this stage, negotiations must take place not only on the amount of compensation, but also the method of payment. 9. In determining the amount of compensation and the method of payment, consideration shall be given to: a. Scope and complexity of designs, surveys and other work and the skills necessary for these services. b. Quality and quantity of data provided to the A/E by Yakima Transit. C. Location of, and conditions under which, the services will be performed. d. Date services to begin and time allowed for performance. 10. Costs should be negotiated taking into consideration: a. Direct Labor. b. Overhead. C. General and administrative expenses. d. Materials. e. Other direct costs. f. Profit, which is further influenced by: 1) Degree of A/E's risk, 2) Level of effort, 3) Level of talent or expertise the A/E must furnish, 4) Amount of subcontracting, 5) Amount of top level A/E management involved, 6) Subcontracts, and 7) Contractors investment. 11. When the contract is negotiated and signed, the negotiations are documented and placed in the file. 12. The contract shall be monitored to ensure that expenditures and payments therefore are commensurate with performance and that both have met all the contract terms. 35 13. The contractor is responsible for the professional quality, technical accuracy and coordination of all services under the contract. The contractor may be liable to the Yakima Transit for costs resulting from errors or deficiencies in design furnished under the terms of the A/E contract. 7.12 Construction Bonding Requirements FTA C 4220.1 F. Ch. VI, 2h. Bonds are required on all construction contracts. The following bonds are required for all construction contracts: • Each bidder must provide a bid guarantee equivalent to 5% of its bid price • Third party contractors must obtain a performance bond for 100% of the contract price • Third party contractors must obtain a payment bond based on the following: o Less than $11VI: 50% of the contract price if the contract price is not more than $1M o More than $1M but less than $51VI: 40% of the contract price if the contract price is more than $1M but not more than $5M o More than $51VI: $2.5M if the contract price is more than $5M 8. NON-COMPETITIVE NEGOTIATIONS 8.1 When to Use Non -Competitive Negotiation Chapter VI, Section 3(i)(1)(b) of FTA C 4220.1F allows for procurements by non-competitive proposal only when the contract award is inadequate under other procurement methods and at least one of the conditions outlined below exists: In case of great public calamity, such as extraordinary fire, flood, storm, epidemic, or other disaster, the Yakima City Council, by resolution passed by a majority vote of all its members declare and determine that the public interest and necessity demand the immediate expenditure of public money to safeguard life, health or property, and thereupon proceed to expend or enter into a contract involving the expenditure of any sum needed in such emergency without observance of the provisions requiring contracts, bids or notice. Additionally, federal regulations require that one or more of the following conditions be met: a. There is a public exigency or emergency that does not allow time for competitive negotiation. b. The Federal Transit Administration (FTA) authorizes a non-competitive negotiation. 36 c. The item(s) is available only from a single source, as a matter of fact and not as a matter of preference or convenience. d. After solicitation of a number of sources, competition is determined to be inadequate. e. The item to be procured is an associated capital maintenance item as defined in 49 U.S.C. Section 5307 (A)(1) that is procured directly from the original manufacturer or supplier of the item to be replaced after written certification to FTA that: 1. The manufacturer or supplier is the only source for the item, and 2. The price of the item is no higher than the price paid by other similar customers. f. A contract amendment or change order is needed that is not within the scope of the original contract. Procedures for non-competitive negotiation are described in Section 8.2 (below). 8.2 Procedures for Non-competitive Negotiation Non-competitive negotiation is procurement through solicitation of a proposal from only one source, or after solicitation of a number of sources, competition is determined inadequate. Previously described procedures for competitive bidding and competitive proposal describe the procedures to be used for non-competitive negotiations. Circumstances under which a contract may be awarded by non-competitive negotiation are limited to those listed in Sec. 8.1. 8.2.1 When Only One Bid/RFP Received Upon receiving a single bid or proposal in response to a solicitation, the Purchasing Manager must determine if competition was adequate. This must be documented and include a review of the specifications for undue restrictiveness and might include a survey of potential sources that chose not to submit a bid or proposal. An analysis must be conducted and documented in the procurement file, including the solicitation information, the solicitation due date, the number of solicitations requested, the number of bids received, the reasons for the lack of competition based on communication with suppliers, the basis for contract award, and the new solicitation release date, if applicable. 9. OUT -OF -SCOPE CHANGES Reference FTA C 4220.1 F CH. VI, 3. i. When a contractor is required to make a change that is outside the original scope of the contract, it will be considered an out of scope change and Yakima Transit must justify and treat as a sole source procurement. This can include additional work that was not envisioned by the parties at the outset of the contract. Any out -of -scope changes must be treated as sole source 37 procurements and must be documented and justified in accordance with Yakima Transit's sole source procurement policies and include the necessary documentation, including cost analysis. Any amount that is an out -of -scope change to an existing contract must be treated as sole source procurement. If the new procurement (contract addition) is under $2,000, it may be treated as a Micropurchase, but in that case it will not be classified as an addition to the existing contract, it must be classified and treated as a whole new procurement. Sole source justification for out -of -scope changes requires the following documentation: • Proper review of competition • Statement of work or specification • Cost/Price Analysis and profit negotiation • Justify why an amendment was the only course of action • Written history of the change and procurement action 10. BID PROTEST PROCEDURES Reference FTA C 4220.1F, Ch. V11, 1: Grantee's are to have written protest procedures as part of their requirement to maintain or acquire adequate technical capacity. Grantees must notify the FTA when they receive a protest and keep the FTA informed about its status. When a grantee denies a bid protest, they are to inform the FTA. Yakima Transit shall make every effort to award contracts in compliance with state, federal and local regulation. Bidders who feel that a contract has been, or may be, awarded improperly shall have the right to protest the specifications and/or contract award in compliance with applicable local, state and federal regulations. 10.1 Filing Protest 1. Protests dealing with restrictive specifications or alleged improprieties in the solicitation must be filed no later than five (5) working days prior to bid opening or closing date for receipt of proposals. Any other protest must be filed no later than five (5) working days after award of contract. 2. Protests shall be in writing and addressed to the Purchasing Manager. 3. The protest shall contain a statement describing the reasons for the protest and any supporting documentation. Additional materials in support of the initial protest will only be considered if filed within the time limit specified in paragraph 1. The protest shall also indicate the ruling or relief desired from Yakima Transit. W 10.2 Confidentiality Materials submitted by a protester will not be withheld from any interested party, except to the extent that the withholding of information is permitted or required by law or regulation and in accordance with in accordance with Washington State Public Disclosure Act (RCW 42.56 et seq.). If the protest contains proprietary material, a statement advising of this fact may be affixed to the front page of the protest document and the alleged proprietary information must be so identified wherever it appears. 10.3 Withholding of Award When a protest is filed before opening of bids, the bids will not be opened prior to resolution of the protest, and when the protest is filed before award, the award will not be made prior to resolution of the protest, unless Yakima Transit determines that: 1. Items to be procured are urgently needed, or delivery or performance will be unduly delayed by failure to make award promptly; or, 2. Failure to make award will cause undue harm to Yakima Transit. In the event an award is to be made while a protest is pending, the Federal Transit Administration shall be notified if federal funding is involved. 10.4 Processing the Protest 1. Yakima Transit shall respond to the contractor within five (5) working days of receiving the protest. A conference on the merits of the protest may be held with the protester. 2. Any additional information required by Yakima Transit from the protester shall be submitted as expeditiously as possible, but no later than three (3) days after the receipt of said request. 10.5 Notification Yakima Transit shall notify the protester of its decision no later than ten (10) days following receipt of all relevant information. 10.6 Appeal If a protester is not satisfied with the decision made by Yakima Transit, and Federal funds are involved, the protester may file a protest with the Federal Transit Administration. Review by FTA will be limited to: 1. Violation of Federal Law or regulations. 2. Violation of Yakima Transit protest procedures described herein, or failure by Yakima Transit to review a protest. 39 Protests must be filed with FTA (with a concurrent copy to Yakima Transit) within five (5) days after the Yakima Transit renders a final decision, or five (5) days after the protester knows, or has reason to know, that Yakima Transit failed to render a final decision. After five days, Yakima Transit will confirm with FTA that FTA has not received a contract protest. The FTA Circular 4220.1 in effect is available for review online at www.FTA.gov. Yakima Transit shall not be responsible for any protests not filed in a timely manner with FTA. 11. CONTRACTS 11.1 Compensation Arrangements Contracts are divided into specific types of compensation arrangements reflecting Yakima Transit's varying responsibility, as the buyer, to pay the allowable cost incurred by the contractor, as the seller. The following list includes the most commonly used compensation arrangements. It is up to Yakima Transit to decide which compensation arrangement is most appropriate for a specific procurement. Yakima Transit's adopted procurement policy prohibits use of a cost -plus -a -percentage -of -cost contract. The following are definitions of allowable compensation arrangements: 1. Firm Fixed -Price: This arrangement is characterized by a lump -sum price not subject to adjustment. The adjustment referred to in these discussions does not include contract modifications or change orders. The risk of performance falls on the contractor. This type of arrangement should be used where competition is present and detailed specifications are available. 2. Fixed -Price with Escalation: This arrangement is characterized by a lump -sum price subject to upward or downward adjustment depending on contract contingencies beyond the parties' control (such as labor rates or market indices). 3. Fixed -Price with Price Redetermination: This is essentially a lump -sum arrangement with adjustments within specified limits negotiated as actual costs become known. As in fixed- price escalation arrangements, Yakima Transit assumes the risk of contingencies. The price re -determination may be made either at specified times during performance or after completion of performance. This arrangement should only be used in limited instances. 4. Cost -Plus a Fixed Fee: The contractor is reimbursed for costs and receives a fixed fee. This type of contract is used for procurements such as facilities contracts, and research and development contracts 5. Time-and-Materials/Labor-Hour: These are contracts provided for supplies or services on the basis of direct -labor hours at specified fixed hourly rates and materials at cost. This type of contract should be used with caution. After determination that no other type of .N contract is suitable; and if the contract specifies a ceiling price that the contractor shall not exceed except at its own risk. 11.2 Contract Provisions FTA C 4220.1F Ch.IV, 2.b. Grantees may not use FTA assistance to make payments to a third party contractor before the contractor has incurred the costs for which the payments would be attributable. The main purpose of a written contract is to capture all the essential information regarding an agreement between two parties so that both sides are clear about their roles and responsibilities. The contract should also describe procedures to be followed in case of a disagreement between the parties or in case one or other of them fails to perform as agreed. The basic elements of a contract are as follows: • Scope of work/goods to be delivered • Contract amount/method of payment • Term of contract/schedule • Provisions for amendment/termination • Legal and administrative obligations • Terms & Conditions The elements of the contract describing the service or goods to be delivered, the contract amount and schedule will normally be unique to the particular circumstances and can be tailored by Yakima Transit to suit particular needs. The other elements of the contract may be governed by Federal, State or City regulations. For example, FTA grantees are regulated in the type of payments they can make since FTA does not allow grantees to make advance payments and requires them to follow specific standards in the use of progress payments (see FTA C4220.1F, IV,2.b,(5),c). Exceptions to making advance payments are permitted for sound business reasons, but the FTA must provide written concurrence before the advance payment is made. Additionally, adequate security must be obtained when using progress payments. Consult allowable advance payments in FTA Circular 4220.1F. To find out which provisions should be included in the contract, refer to the applicable Federal, state and local legislation and policies. At the end of this section and in the appendices is a summary of the contract clauses required by FTA. 11.2.1 Basic Contract Provisions The following provisions are typical examples found in most types of contracts: a) Scope of Work/Specifications: The scope of work included in the contract shall be the same as the scope of work included in the Request for Proposals or Invitation for Bids documents 41 and it should reflect any changes that have been made as a result of negotiation. It is often convenient to attach the scope of work or specifications to the contract as an exhibit and incorporate it into the contract by reference. b) Contract Amount: For fixed price and cost plus fixed fee agreements, the contract shall identify the lump sum and the maximum amount that will be paid (if different) and describe any allowable costs that will be reimbursed. For a fixed unit cost contract, the agreement shall include the amount that will be paid per unit of service and how the units will be measured. Note that cost plus a percentage of cost and cost plus percentage of construction cost methods of contracting are prohibited by the FTA, per FTA Circular 4220.1F. Specific areas to watch for are automatic add-ons above costs, fixed incentive rates, and no upper limits on costs. c) Payment Schedule/Method of Payment: Payment is commonly made after all aspects of the contract are complete, (usually receipt of merchandise, services and construction), lump sum payment. Payment may be related to progress made under the contract and tied to certain milestones or the submission of deliverables. In these cases, a schedule of payments may be attached to the contract and incorporated by reference. The contract shall indicate when the contractor is to submit invoices and what information the invoices shall include. This provision shall also describe any supporting documentation that must be submitted with the invoice, for example, progress reports and invoices. This provision shall also describe any provisions for retaining a portion of the invoice and the procedures for making the last payment under the contract. A small percentage of each progress payment shall be retained where the contractor has to deliver a product, such as a report, to Yakima Transit. Payment of the retained amount shall be made only after Yakima Transit has reviewed and accepted the final product. d) Contract Term: The contract shall include the effective date of the contract, which is usually the date of execution. If contract execution is delayed beyond the required project start date, a written notice to proceed may be issued and incorporated in the contract. The contract shall also indicate when its term expires. The term of the contract may be expressed in years, calendar months or days. Contract term limitation for rolling stock and replacement parts shall not exceed Yakima Transit's needs for rolling stock and replacement parts within five (5) years inclusive of options without prior written FTA approval when FTA funds are involved. In all other cases FTA requires grantees to exercise "sound business judgment," and "to establish contract terms no longer than necessary to accomplish the purpose of the contract." e) Independent Contractor Provision: An independent contractor provision is often included in service contracts. Its purpose is to make it clear that the contractor is an independent contractor and that all the individuals working for or under the direction of the contractor 42 are employees of the contractor and not employees of Yakima Transit. Additional language is sometimes included to indicate that the contractor is responsible for its own acts and those of its subordinates, employees and subcontractors and that the contractor is responsible for all matters relating to the payment of its employees, including social security and unemployment compensation. f) Insurance: Minimum insurance requirements are often set by State, District and local government policies. In most cases, contractors are required to obtain general and automobile liability insurance and workers compensation. Consultants providing professional services are usually required to obtain professional liability insurance. At a minimum, the insurance section of the contract shall specify the following: • The types of insurance required (general/automobile liability, workers compensation, professional liability) • The amount of insurance required (for example, $1,000,000 of professional liability insurance) • The minimum acceptable rating of the insurance carrier • Whether the contractor is required to name Yakima Transit as an additional insured on the policy • That the insurance must remain in effect for the duration of the contract • Whether insurance certificates must be submitted to Yakima Transit before the contract is executed or before work proceeds and, if so, to whom the insurance certificates should be sent. g) Indemnification: This is a common clause under which the contractor agrees to hold Yakima Transit and its governing body, officers and employees harmless from any liability or claims resulting from the contractor's negligence under the contract. h) Non-Assignability/Approval of Subcontractors: This clause states that the Contractor is not permitted to assign or transfer its interests in the contract or to subcontract any part of the work to any other party without prior written approval of Yakima Transit and then only as permitted by law. i) Amendment: This provision describes how the contract can be amended and often specifies whom must approve any changes. As a practical matter, some minor changes not involving compensation may be made upon written permission of Yakima Transit. More significant scope of work changes and all changes involving a change in compensation shall be made by a formal contract amendment. j) Termination Provisions: There are two major types of termination provisions: termination for cause and termination for convenience. 43 Termination for Cause: Yakima Transit can cancel the contract if the contractor fails to perform, if there is evidence of financial mismanagement or if there is continual substandard performance. The termination for cause provision shall make it clear who is responsible for making the final determination of the contractor's default, how much notice will be given to the contractor, whether there is a remedy period and how any final payments will be made. Termination for Convenience: Yakima Transit may terminate the contract if it is in its best interest to do so. While there are some good reasons why Yakima Transit may need to cancel a contract for convenience (for example, because of budget cuts), this clause is often written in such a way that Yakima Transit may cancel for any reason. The termination for convenience clause shall also include an agreement as to how much notice should be given and how any final payment can be made. From the contractor's perspective, the termination for convenience clause can be mitigated by requiring Yakima Transit to pay certain closeout costs. k) Disputes: The Uniform Guidance requires Yakima Transit with responsibility for evaluating and resolving third party contract disputes. FTA shall be notified of all third party contract disputes in contracts with a value exceeding $150,000, involve a controversial or highly publicized matter, irrespective of amount. (see FTA C4220.1F, VII, 3.a.) Dispute Details must be included and provided in its next quarterly Milestone Progress Report and at its next Project Management Oversight review, if any, and notify their FTA Project Manager. Provide adequate documentation in case there is potential litigation. Consider a formal audit conducted in accordance with "Generally Accepted Auditing Standards" as defined by the American Institute of Certified Public Accountants. Dispute Details include: (1) A brief description of the dispute, (2) The basis of disagreement, and (3) If open, how far the dispute has proceeded, or (4) If resolved, the agreement or decision reached, and (5) Whether an appeal has been taken or is likely to be taken. IJ Governing Law / Venue: This provision makes it clear that the agreement is to be interpreted or enforced under the laws of the state of Washington, and any disputes over terms and conditions shall be resolved in a court of competent jurisdiction in Yakima County, Washington. m) Authorized Signatures: The contract should include signature blocks for officials of both Yakima Transit and the contractor authorized to execute the agreement. All contracts over $500 require the signature of the City Manager, or his designee. 01 n) Liquidated Damages: Liquidated damages must be at a specific rate per day for each day of time delay and must be specified in the contract. Any damages recovered must be credited to the project involved unless the FTA permits otherwise. FTA C.4220.1F Ch.IV, 2b. A grantee may use liquidated damages if it may reasonably expect to suffer damages due to: delayed contract completion, weight requirements exceeded and the extent or amount of such damages are uncertain and would be difficult or impossible to determine. o) Other Common Contract Provisions: The following are additional provisions commonly included in contracts for goods and services: (1) The contractor shall keep all business records relevant to the contract for a period of three years and permit Yakima Transit to inspect or audit their records. (2) The contractor is required to comply with all federal, state and municipal laws and to obtain any necessary permits or licenses. (3) The contractor shall comply with Yakima Transit's policy on the participation of disadvantaged businesses in contracts. (4) The contractor must not have used anyone other than a bona fide employee to obtain the contract. (5) The contractor must not have any conflict of interest in providing the service. (6) The contractor must represent and warrant that neither the City Manager, nor any manager, officer, director or employee of Yakima Transit, is in any manner interested, directly or indirectly, in any contract which may be awarded or any profits expected to arise therefrom in violation of the provisions of the Political Reform Act of 1974, as amended (commencing with Government Code 81,000). (7) No member, officer or employee of Yakima Transit or of any local public body during his tenure or for one year thereafter shall have any interest, direct or indirect, in any contractor the proceeds thereof. (8) No member of Congress will benefit from the contract (if contract involves Federal assistance). 11.2.2 Contract Provisions for FTA Grantees A number of general contract provisions are required by the Federal Transit Administration (FTA) for FTA funded contracts. These provisions are intended to establish minimum guidelines to which grantees must adhere when purchasing supplies, equipment and construction and professional services. The provisions and the types of contracts to which they apply are summarized on the next page, followed by a brief description of each provision. 45 Much of this material is taken from FTA Circulars in effect and FTA Best Practices Guidelines. These requirements change from time to time. When drafting a contract, therefore, check the latest materials from FTA. 11.2.3 State and Local Government Purchasing Schedules The use of state or local government purchasing schedules are acceptable. However, the use of intergovernmental purchasing schedules is prohibited. Joint purchase agreements and contracts that are only "intergovernmental" agreement approved for use are permitted (see FTA C4220.1 F, V, 4. a. b. c). FTA uses the term "state or local government purchasing schedule" to mean an arrangement that a State or local government has established with several or many vendors in which those vendors agree to provide essentially an option to the State or local government, and its subordinate government entities, to acquire specific property or services in the future at established prices. These arrangements are somewhat similar to the General Services Administration's (GSA) Cooperative Purchasing Program available for Federal Government use. If the State or local government wishes to permit others to use its schedules, the State or local government might seek the agreement of the vendor to provide the listed property or services to others with access to the schedules, or it may permit the vendor to determine whether or not it wishes to do so. CAUTION: The term "State or local government purchasing schedule" does not include intergovernmental purchasing schedules to be the type of State or local intergovernmental agreements. a. Use. (1) Use Permitted. FTA's policies are as follows: (a) General. The Common Grant Rule for governmental recipients encourages recipients and subrecipients to enter into State and local intergovernmental agreements for procurements of property or services, and. (b) State or Local Government Permission Required. If so permitted by State or local authorities, a non-governmental recipient may also use State and local sources of property and services. This is because 49 C.F.R.§ 18.36(a) permits States to use their own policies and procedures they use for their own purchases, not because those schedules are "State intergovernmental agreements," and b. Use Restricted. Although the Common Grant Rule for government recipients, 49 C.F.R. § 18.36(b)(5), provides that "grantees and subgrantees are encouraged to enter into State and local intergovernmental agreements for procurements of common goods and services": (1) Prohibited. FTA does not authorize grantees to consider intergovernmental purchasing schedules to be the type of State or local intergovernmental agreement to which that Common Grant Rule is referring, but (2) Permitted. FTA recognizes joint purchases to be the only type of intergovernmental agreement suitable for use by its grantees and subgrantees. c. All FTA and Federal Requirements Apply. When obtaining property or services in this manner, Yakima Transit must ensure all Federal requirements, required clauses, and certifications (including Buy America) are properly followed and included, whether in the master intergovernmental contract or in Yakima Transit's purchase document. One way of achieving compliance with FTA requirements is for all parties to agree to append the required Federal clauses in the purchase order or other document that effects Yakima Transit's procurement. When buying from these schedules, Yakima Transit should obtain Buy America certification before entering into the purchase order. If the product to be purchased is Buy America compliant, there is no problem. If the product is not Buy America compliant, Yakima Transit will need to obtain a waiver from FTA before proceeding. 11.2.4 Piggybacking FTA C. 4220.1F Ch.V, 7a. An assignment of existing contract rights to purchase supplies, equipment or services. Special considerations include an assignability clause, and minimum and maximum quantities. Piggyback procurements are permissible when the solicitation contract contains an assignability clause that provides for the assignment of all or a portion of the specified deliverables as originally advertised, competed, evaluated, and awarded. The solicitation must contain a minimum and maximum quantity that represents the parties' reasonably foreseeable needs. Before entering into any piggyback procurement, it is the policy of the FTA and of Yakima Transit that the following are executed and documented: • Price is determined to be fair and reasonable • Contract complies with all federal requirements, including Buy America, and all applicable FTA clauses • The quantities used by others, coupled with the quantities you will use, do not exceed the amounts available under the original contract 11.2.5 Required Contract Clauses (most current clauses available , on FTA's website) Federally Required and Other Model Contract Clauses Applicability Minimum ( FTA Best Practices Procurement Manual) Contract Value Contract Value 47 (all tier levels) Drug and Alcohol Testing All operational service contracts Buy America Certifications Construction, goods, rolling stock $150,000 Charter Bus and School Bus Requirements All operational service contracts Cargo Preference Transported by ocean vessel Seismic Safety New bldg construction Energy Conservation Requirements All Contracts Clean Water All Contracts $150,000 Bus Testing Rolling stock and turnkey Pre -award and Post Delivery Audit Requirements Rolling stock and turnkey Lobbying Certification All Contracts Access to Records and Reports All Contracts Federal Changes All Contracts Bonding Requirements Construction & non -construction $150,000 Clean Air All Contracts $150,000 Recycled Products EPA designated items $10,000 Davis -Bacon Act Construction $2,000 Contract Work Hours and Safety Standards Act Construction/rollingstock, operation $2000/$2500 Copeland Anti -kick Act Construction $2,000 No Government Obligation to Third Parties All Contracts Program Fraud and False or Fraudulent Statements and Related Acts All Contracts Termination All Contracts $10,000 Government -wide Debarment and Suspension Certification All Contracts $150,000 Federal Privacy Act Requirements All Contracts Civil Rights All Contracts Breach of Contract and Dispute Resolution All Contracts $150,000 Patent Rights, Right in Data, and Copyright Research projects Transit Employee Protective Agreements Transit operations Disadvantage Business Enterprises All Contracts State and Local Law Requirements All Contracts Incorporation of Federal Transit Administration (FTA) Terms All Contracts Non-discrimination Certification All formal bid contracts *Contract types are construction, architectural and engineering APPENDIX A: INDEPENDENT COST ESTIMATE Contract Type: Description of Goods I Service: Method of Obtaining the Estimate: ❑ I have obtained the following estimate from.... ❑ Published Price List 1 Past pricing (date) ❑ Engineering or technical estimate ❑ Independent Third Party estimate ❑ Other (specify) Cost Estimate Details: Independent Cost Estimate Date of Estimate: Through the method stated above it has been determined that the total cost of the good slservices is expected to be: $ . Details are shown below. A: Cost of Standard Items Cost ($/ea) Product I Delivered No Freieht Notes I Data Source B: Cost of Services, Repairs, or Non -Standard Items Item /Task: Materials Other Direct Costs Labor (rate, hours) Labor Class Allocated overhead SGEtA Profit Total The preceding cost estimate was prepared by: Signature Date For complex items or tasks, attach detailed spreadsheet(s) explaining rationale. APPENDIX B: PRICE ANALYSIS TEMPLATE PO / Contract: The evidence compiled by a price analysis includes: ■ Developing and examining data from multiple sources whenever possible that prove or strongly suggest the proposed price is fair. ■ Determining when multiple data consistently indicate that a given price represents a good value for the money. ■ Documenting data sufficiently to convince a third party that the analyst's conclusions are valid. DATE: PREPARED BY: The pricing quoted on the attached sheet(s) is deemed to be fair and reasonable based on the following type of analysis: ❑ Comparison with competing suppliers' prices or catalog pricing for the same item. (Complete comparison matrix and attach supporting quotes or catalog pages.) ❑ Comparison of proposed pricing with in-house estimate for the same item. (Attach signed in- house estimate and explain factors influencing any differences found. Complete summary matrix.) ❑ Comparison of proposed pricing with historical pricing from previous purchases of the same item, coupled with market data such as Producer Price Index or Inflation Rate over the corresponding time period. (Attach data and historical price record). ❑ Analysis of price components against current published standards, such as labor rates, dollars per pound etc., to justify the price reasonableness of the whole. (Attach analysis to support conclusions drawn.) SUMMARY MATRIX Item Proposed Pricing Average Market Price Competit or A Competit or B In -House Estimate Other Attachments: 50 APPENDIX C: COST ANALYSIS FORM DETAIL DESCRIPTION OF COST ELEMENTS PAGE OF PGS COST ANALYSIS SUMMARY (For New Contracts Including Letter Contracts) (See Instructions below) SOLICITATION # SUPPLIES AND/OR SERVICES TO BE FURNISHED PREPARER'S NAME, DEPARTMENT, TITLE, PHONE DIVISION (S) AND LOCATION(S) WHERE WORK IS TO BE PERFORMED APPROVAL SIGNATURE DETAIL DESCRIPTION OF COST ELEMENTS 1. DIRECT MATERIAL Vendor A Proposal Vendor B Proposal Independ ent Estimate Analysis A. PURCHASED PARTS B. SUBCONTRACTED ITEMS C. OTHER - (1) RAW MATERIAL (2) STANDARD COMMERCIAL ITEMS TOTAL DIRECT MATERIAL 2. MATERIAL OVERHEAD (RATE % x $ BASE *J 3. DIRECT LABOR ESTIMAT ED HOURS RATE/ HOUR Vendor A ($) Vendor B ($) Independ ent Estimate Variance TOTAL DIRECT LABOR 51 4. LABOR OVERHEAD Vendor A ($) Vendor B ($) Vendor A ($) Vendor B ($) Independ ent Estimate Variance OH Rate TOTAL SPECIAL TOOLING/EQUIPMENT X BASE (labor total above) B. TRAVEL (1) TRANSPORTATION TOTAL LABOR OVERHEAD (2) PER DIEM OR SUBSISTENCE 5. OTHER DIRECT COSTS Vendor A ($) Vendor B ($) Independ ent Estimate Variance A. SPECIAL TOOLING/EQUIPMENT TOTAL SPECIAL TOOLING/EQUIPMENT B. TRAVEL (1) TRANSPORTATION (2) PER DIEM OR SUBSISTENCE TOTAL TRAVEL DETAIL DESCRIPTION OF COST ELEMENTS (continued) Vendor A ($) Vendor B ($) Independ ent Estimate Variance C. INDIVIDUAL CONSULTANT SERVICES TOTAL INDIVIDUAL CONSULTANT SERVICES D. OTHER TOTAL OTHER E. SUBTOTAL DIRECT COST AND OVERHEAD 6. GENERAL AND ADMINISTRATIVE (G&A) RATE % X $ BASE (Use 5.E above) 7. ROYALTIES (if any) 8. SUBTOTAL ESTIMATED COST 9. CONTRACT FACILITIES CAPITAL AND COST OF MONEY 10. SUBTOTAL ESTIMATED COST 11. FEE OR PROFIT 12.TOTAL ESTIMATED COST AND FEE OR PROFIT 13. Discounts 14. Option Costs (specify) 15. ADJUSTED COST 52 ANALYSIS GUIDELINES 1. DIRECT MATERIAL A. Analyze Purchased Parts: Provide a consolidated price analysis of material quantities included in the various tasks, orders, or contract line items being proposed and the basis for pricing (vendor quotes, invoice prices, etc.). B. Subcontracted Items: Analyze the total cost of subcontract effort and supporting written quotations from the prospective subcontractors C. Other: (1) Raw Material: Review any materials in a form or state that requires further processing. Analyze priced quantities of items required for the proposal. Consider alternatives and total cost impact. (2) Standard Commercial Items: Analyze proposed items that the offeror will provide, in whole or in part, and review the basis for pricing. Consider whether these could be provided at lower cost from another source. 2. MATERIAL OVERHEAD Verify that this cost is not computed as part of labor overhead (item 4) or General and Administrative (G&A) (Item 6). 3. DIRECT LABOR Analyze the hourly rate and the total hours for each individual (if known) and discipline of direct labor proposed. Determine whether actual rates or escalated rates are used. If escalation is included, analyze the degree (percent) and rationale used. Compare percentage of total that labor represents for each bid. 4. LABOR OVERHEAD Analyze comparative rates and ensure these costs are not computed as part of G&A. Determine if Government Audited rates are available, 5. OTHER DIRECT COSTS A. Special Tooling/Equipment. Analyze price and necessity of specific equipment and unit prices. B. Travel. Analyze each trip proposed and the persons (or disciplines) designated to make each trip. Compare and check costs. C. Individual Consultant Services. Analyze the proposed contemplated consulting. Compare to independent estimate of the amount of services estimated to be required and match the consultants' quoted daily or hourly rate to known benchmarks. D. Other Costs. Review all other direct charge costs not otherwise included in the categories described above (e.g., services of specialized trades, computer services, preservation, packaging and packing, leasing of equipment and provide bases for pricing. Scan for duplication or omissions. 6. GENERAL AND ADMINISTRATIVE EXPENSE See notes on labor overhead above and check whether the base has been approved by a Government audit agency for use in proposals. 53 7. ROYALTIES If more than $250, analyze the following information for each separate royalty or license fee; name and address of licenser; date of license agreement; patent numbers, patent application serial numbers, or other basis on which the royalty is payable; brief description (including any part of model numbers or each contract item or component on which the royalty is payable); percentage or dollar rate of royalty per unit; unit price of contract item; number of units; and total dollar amount of royalties, 8. SUBTOTAL ESTIMATED COST Compare the total of all direct and indirect costs excluding Cost of Money and Fee or Profit. Note reasons for differences. 9. CONTRACT FACILITIES CAPITAL AND COST OF MONEY Analyze the offerors' supporting calculations and compare to known standards. 10. SUBTOTAL ESTIMATED COST This is the total of all proposed costs excluding Fee or Profit. Determine the competitive range. Question outliers. 11. FEE OR PROFIT Review the total of all proposed Fees or Profit. Remember that the FTA prohibits cost plus percentage of cost contracting. 12. TOTAL ESTIMATED COST AND FEE OR PROFIT Analyze the range of total estimated costs including Fee or Profit, and explain variance to independent estimate. Identify areas for negotiation or areas to be challenged. Explain your conclusions regarding fair and reasonable pricing. 13. DISCOUNTS Review basis for Discounts and range between offers. ATTACH NARRATIVE COST ANALYSIS MEMO ADDRESSING ITEMS AS INSTRUCTED ABOVE. 54 APPENDIX D: APPLICABILITY OF THIRD PARTY CONTRACT PROVISIONS (excluding micro -purchases, except Davis -Bacon requirements apply to contracts exceeding $2,000) 55 No Federal Government Obligations to All All All All All Third Parties (by Use of a Disclaimer) False Statements or Claims All All All All All Civil and Criminal Fraud Access to Third Party Contract All All All All All Records Changes to Federal All All All All All Requirements >$10,000 if 49 >$10,000 if 49 >$10,000 if 49 >$10,000 if 49 >$10,000 if 49 Termination CFR Part 18 CFR Part 18 CFR Part 18 CFR Part 18 CFR Part 18 applies. applies. applies. applies. applies. Civil Rights (Title >$10,000 >$10,000 >$10,000 >$10,000 >$10,000 VI, EEO, ADA) Disadvantaged Business All All All All All Enterprises (DBEs) Incorporation of All All All All All FTA Terms Debarment and >$25,000 >$25,000 >$25,000 >$25,000 >$25,000 Suspension Buy America >$150,000 >$150,000 >$150,000 Resolution of Disputes, Breaches, >$150,000 >$150,000 >$150,000 >$150,0000 >$150,000 or Other Litigation Lobbying >$150,000 >$150,000 >$150,000 >$150,000 >$150,000 Clean Air >$150,000 >$150,000 >$150,000 >$150,000 >$150,000 Clean Water >$150,000 >$150,000 >$150,000 >$150,000 >$150,000 55 56 For property For property For property Cargo Preference transported by transported by transported by ocean vessel. ocean vessel. ocean vessel. For foreign air For foreign air For foreign air For foreign air For foreign air Fly America transport or transport or transport or transport or transport or travel. travel. travel. travel. travel. >$2,000 Davis -Bacon Act (including ferry vessels) >$150,000 Contract Work >$150,000 Hours and Safety (except >$150,000 (including ferry Standards Act transportation vessels) services) Professional •. Rolling Services/A&E Management Purchases Construction Supplies All Copeland Anti- All exceeding Kickback Act $2,000 (including Section 1 Section 2 ferry vessels) Bonding $150,000 A&E for New Seismic Safety Buildings & New Buildings Additions Transit Employee Transit Protective Operations Arrangements Charter Service All Operations School Bus All Operations Drug Use and Transit Testing Operations Alcohol Misuse and Transit Testing Operations Research & Patent Rights Development Rights in Data and Copyright Research & Development Requirements Energy All All All All All Conservation 56 57 Contracts for Contracts for Contracts for items designated items designated items designated by EPA, when by EPA, when by EPA, when Recycled Products procuring procuring procuring $10,000 or more $10,000 or more $10,000 or more per year per year per year Conformance with ITS National ITS Projects ITS Projects ITS Projects ITS Projects ITS Projects Architecture ADA Access A&E All All All All Notification of Federal Limited to States Limited to States Limited to States Limited to States Limited to States Participation for States 57 APPENDIX E: PIGGYBACKING CHECKLIST Grantee: Contractor: Reviewer: PO Number: Date Reviewed: Description: Observations: Award Amount: Piggybacking (1) This contract contains: (a) Assignability provisions (b) Required Federal clauses (c) Minimum and maximum quantities (if FTA C 4220.1F, 50 IDIQ) V, 7. a. (2) (2) The procurement file contains: (a) Price reasonableness determination If this is not a "Piggybacking" contract, check NA. M APPENDIX F: RESPONSIBILITY DETERMINATION FORM Bid/RFP No: Supplier: Date: For each of the areas described below, check that the appropriate research has been accomplished and provide a short description of the research and the results. Evaluated or Reviewed as part of Technical Evaluation Comment/Documentation 1.Appropriate financial, Can review standard ratios on submitted financial equipment, facility, and []Yes 11 No reports or ask for D&B report personnel 2.Ability to meet the delivery Conduct an analysis of the offeror's technical schedule []Yes ❑ No approach 3.Satisfactory period of Tied to reference check; can also use D&B Past performance []Yes 11 No Performance Evaluation service/product 4.Satisfactory record of integrity, Attach the results from checking the Excluded not on declined or suspended []Yes 11 No listings Parties website at www.sam.gov 5.Ability to get bonding and Evaluate insurance certificate and assurances from insurance []Yes ❑ No Bonding company_ 59 APPENDIX G: Documentation Requirements by Procurement Type 1 no brand names, unless "equal" is specified 2 must allow adequate response time 3 must have received responses from at least two responsive and responsible vendors 4 see 3 .E Standard Inclusions Method of Procurement Decision X X X X Matrix Fair and Reasonable Price Determination X Independent Cost Estimate X X X X Clear, Accurate, Complete Specifications (Copy of X X X X Solicitation)' Price Quotations X Cost/Price Analysis X X X X (Cost) Written Selection Procedures (Included X X in Solicitation) Emails to Potential Vendors, Proof of X X Publication Bid Opening Sheet/Record of X X Proposals Submitted Responsiveness X X Determination Bid/Proposal Rejection Explanation (if any) X X Responsibility Determination (Copy X X X of EPLS search) Bid Tabulation / Selection of Lowest X Price (incl. options)3 Evaluation Rating Sheets and Summary° X Sole Source Justification X 1 no brand names, unless "equal" is specified 2 must allow adequate response time 3 must have received responses from at least two responsive and responsible vendors 4 see 3 .E Sound and Complete Agreement (Signed X X X Contract)5 X X X Clauses (In Solicitation X X X and Contract) Written Record of X X (2 sections) X X X Procurement History P Awarded Supplier's X X X X Proposal Special Circumstances Contract Mods (in scope)6 X X X Progress Payments X X X Approval for Advance Payments From FTA X X X X X Documentation of Board Approval X X X Notice of Protests and Resolution X X X X Notice of Contract Claims and Resolutions X X X X Piggybacking' X X X Davis -Bacon (Construction) X >$2000 X X X Copies of Bonds (Construction) X X X Buy America (Bus and Rolling Stock) X X X Evidence of Negotiations with Highest Ranked Suppliers and Ranking Based on Technical Capability Only (A&E) X 5 must establish contract start and end dates; payment terms 6 out -of -scope must re -compete 7 include copy of original contract 61 APPENDIX H: Sample Procurement File Checklist t REQUEST TO PURCHASE contract I L1 > Rationale Method of promormit 0 > Oron Ing RequisMon E. ORIGINAL [FISHER, AD EN S� QUESTIONS A CLARIFICATIONS 13Original IFS Fa' Addsocanor )- Onstim & is , ` rations ADVERTISEMENTINOTICES:. 4. PRE-EMiPROPOSAL CONFERENCE 0 s 13 A AftUrg S. PLANHOLDERS A INTERNAL DISTRIBUTION LISTS` #I _ Intermit ` off Jim C MAJUNG RECEIPTS T. EI SIFROP SINS BIDS INN/Proposals R . Ust of Unsuccessho Offers S. SAFO ff A} BAF 1 ) Evaluation A, EVALUATION COMMITTEE 1 El1b EVALUATION DOCUMENTATION Moving Woreft of Negotiation p Evasuadon Summary 0 > Sid Remor Form 11 EVALUATION REFERENCE CHECKS Coat A Pope Asan ' laa c«n 13 A Dunn A andeskent Reports Ej Reffaremse Cascas IT. EVALUATION DITERVIEMS, DEMONSTRATIONS, ANDIND SITE CENTS Evaluation Int ear . s Site aasita 12. DOE INFORMATION i fto for final Setting DUE Goal evaluation roareas 0 - USE Form 103Ide as 0 to DUE Gommonord Form 13. SOARDfCpMAdTTBE REPORTS 14NOTICES 0 —N -—(NO --5---f A) 0 > Notice to Ff (NTP) El > Courtesy Noticks O F Contestation Notices 13 A fali IS. PROTEST 10 AN MON14ApAd documaebtfirm,i Mast nesooffian Isar 1E, AGREEMENT A AMENDMENTS fCHARGE ORDERS _ ent is Chaver orders 17. INSURANCE Insurance as s I Inwxr--mww Room Astra Risk Managervard M. BONDS d PRELIWWY It STOP NOTICES Payment BondsiGmArdecs, , I " Nofices NoticeskShip CTOS 1 JOE ORMS I EEE ES f Pas 1 Ts Orders 11 s. Ids s t. LABOR COMPLIANCE f. NOTESIMISCELLA14EOUS Vnotes. -rift arta 0 Subcontractor Subafflution AS CLAINSAJOIRDATED DAMAGES L CORRESPONDENCE 0 ) Technical 0 E} penceeduss 74. CORRESPONDENCE d�} mt of orn `' (NOC) B) CompkArd Chriar-out Force; S. AUDITS 0 A) Pan-evand E3 81 Actual Il O} Interim 0 1}} CTOIJOIRefforme ® E) Clove -out 62 APPENDIX I: Sample Procurement Checklist -r o 63 ACTS m