HomeMy WebLinkAbout2010-07-13 - RESOLUTIONS - ADOPT DBA POLICY (2)1
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RESOLUTION NO. RDA 10-9
A RESOLUTION OF THE CITY OF SANTA CLARITA
REDEVELOPMENT AGENCY ADOPTING A DISADVANTAGED
BUSINESS ENTERPRISE POLICY, PROCUREMENT CARD POLICY, FEDERALLY
FUNDED PROCUREMENT POLICY, STANDARDS OF CONDUCT POLICY AND
ENVIRONMENTALLY PREFERABLE PURCHASING PROGRAM POLICY
WHEREAS, the Santa Clarita Redevelopment Agency is a public body, corporate and
politic that exercises governmental functions and has the. powers prescribedin Community
Redevelopment Law found at California Health & Safety Code §§33100 et seq,; and
WHEREAS, in order to ensure compliance with Federal and State law and to .ensure clear
standards of conduct and other important practices, the Agency desires to adopt appropriate
policies.
NOW, THEREFORE, the Redevelopment Agency of the City of Santa Clarita does
hereby resolve as follows:
SECTION 1. The Agency Board finds that the above recitations are true and correct and
are incorporated as a material part of this Resolution. .
SECTION 2. The Agency Board finds and determines the following:
A. That the Agency's Disadvantaged Business Enterprise (DBE) policy shall be as
provided for in Exhibit A.
B. That the Agency's Procurement Card Policy shall be as provided for in Exhibit B.
C. That the Agency's Environmentally Preferable Purchasing Program (EPP) shall be as
provided for in Exhibit C.
D. That the Agency's Standards of Conduct Policy for Procurement Staff shall be as
provided for in Exhibit D.
E. That the Agency's Federally Funded Procurement Policy shall be as provided for in
Exhibit E.
SECTION 3. The Agency Secretary shall certify to the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED this 13th day of July, 2010.
CHAIR
ATTEST:
SO4W__(j__
AGENCY SECRETARY
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Sarah P. Gorman, Agency Secretary of the Redevelopment Agency of the City of Santa
Clarita, do hereby certify that the foregoing Resolution was duly adopted by the Redevelopment
Agency of the City of Santa Clarita at a regular meeting thereof, held on the 13th day of
July 2010, by the following vote:
AYES: AGENCY MEMBERS-. Ender, Kellar, McLean, Ferry, Weste
NOES: AGENCY MEMBERS: None
ABSENT: AGENCY MEMBERS: None
" ?C�
AGENCY SECRETARY
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I-
P_
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES
CITY OF SANTA CLARITA )
CERTIFICATION OF
REDEVELOPMENT AGENCY RESOLUTION
Agency Secretary of the Redevelopment Agency of the
City of Santa Clarita, do hereby certify that this is a true and correct copy of the original
Resolution No. RDA 10-9, adopted by the Redevelopment Agency of the .City of Santa Clarita,
California on July 13, 2010, which is now on file in my office.
Witness my hand and sealof the City of Santa Clarita, California, this _ day of 2010.
Agency Secretary
By
Deputy Secretary
Exhibit A
The Santa Clarita Redevelopment Agency (Agency) is committed to carrying out the
Disadvantaged Business Enterprise (DBE) requirements of 49 CFR Part 26
"Participation by Disadvantaged, Business Enterprises in U.S. Department of
Transportation (DOT) Financial Assistance Programs," which became effective March
4, 1999. The procedures contained in the Agency's DBE Program will assure that all
contracts and procurements will be administered without discrimination .on the basis of
race, color, sex, or national origin. The Agency will ensure that DBEs have an equal
opportunity to compete for, and participate in, the performance of all DOT -funded
contracts and subcontracts awarded by the Agency.
The City of Santa Clarita Director of Administrative Services is responsible for
adherence to this policy. The DBE Officer, in coordination with the Director of
Administrative Services and the Purchasing Agent, will . be responsible for
development, implementation, and monitoring of this program. It is the expectation of
the Agency Board and the Director of Administrative Services that the stipulations and
provisions contained in this DBE Program will be adhered to both in spirit and letter by
Agency personnel.
It is the policy of the Agency to ensure nondiscrimination on the basis or race, color,
sex, or national origin in the award and administration of DOT -assisted contracts. It is
the intention of the Agency to create a level playing field on which DBEs can compete
fairly for contracts and subcontracts relating to the Agency's construction, procurement,
and professional service contracting activities.
This Policy will be circulated to Agency employees and to appropriate community and
business organizations that perform work on DOT -assisted contracts.
Passed and adopted by the Santa Clarita Redevelopment Agency this day of
2010.
Santa Clarita Redevelopment Agency
Sana Clarila Redevelopment Agency DBE Program
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Director of Administrative Services
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The objectives of this Program are to:
1. Ensure nondiscrimination in the award and administration of DOT -
assisted contracts.
2. Create a level playing field on which DBEs can compete fairly for
DOT- assisted contracts.
3. Help remove barriers to DBE participation in the bidding, award, and
administration of Agency contracts;
4. Assist the development of firms that can compete successfully in the
market place outside of the DBE Program;
5. Ensure that only firms that fully meet the eligibility standards of 49
CFR Part 26 are permitted to participate as DBEs;
6. Identify business enterprises that are,qualified as DBEs and are
competent to provide the Agency with required materials, equipment,
supplies, and services; and to develop a good rapport with the owners,
managers, and sales representatives of those enterprises;
7. Develop communications programs and procedures which will acquaint
prospective DBEs with the Agency's contract procedures, activities,
and requirements, and allow DBEs to provide the Agency with
feedback on existing barriers to participation and effective procedures
to eliminate those barriers; and
8. Administer the Program in close coordination with the various
Departments and Divisions within the Agency so as to facilitate the
successful implementation of this Program.
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APPLICABILITY (Sections 26.3; 26.21)
The applicability of this Program is as follows:
Pursuant to 49 CFR § 26.3 and 26.21, the Agency, as a recipient of federal financial
assistance from the Federal Transit Administration (FTA) of the United States
Department of Transportation (DOT), is required to implement a DBE Program in
accordance with 49 CFR Part 26, The Program outlined herein applies to all Agency
contracts that are funded, in whole or in part, by DOT federal financial assistance.
Prohibited Discrimination (Section 26.7)
It is the policy of the Santa Clarita Redevelopment Agency that no person will ever be
excluded from participation in, denied the benefits of, or otherwise be discriminated
against, in connection with the award and performance of any contract covered by 49
CFR Part 26 on the basis of race, color, sex, or national origin.
In the administration of the DBE Program, Santa Clarita Redevelopment Agency will
not directly, nor through contractual or other arrangements, use criteria or methods of
administration that have the effect of defeating, or substantially impairing,
accomplishment of the objectives of this DBE Program with respect to individuals of a
particular race, color, sex, or national origin.
Any terms used in this Program that are defined in 49 CFR § 26.5, or elsewhere in the
Regulations, shall have the meaning set forth in the Regulations. Some of the more
commonly used terms are defined below:
A. Disadvantaged Business Enterprise (DBE)
A DBE is a for-profit, small business concern: 1) that is at least fifty-one
percent (51%) owned by one or more individuals who are both socially and
economically disadvantaged, or, in the case of a corporation, in which fifty-one
percent (51 %) of the stock is owned by one or more socially and economically
disadvantaged individuals; and 2) whose management and daily business
operations are controlled by one or more of the socially and economically
disadvantaged individuals who own it.
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1. Small Business Concern
A small business concern is an existing small business, as defined by section 3
of the Small Business Act and the Small Business Administration regulations
which implemented the Act (13 C.F.R. Part 121), whose average annual gross
receipts for the previous three years do not exceed $16.6 million (or as adjusted
for inflation by the Secretary of DOT), pursuant to 49 CFR § 26.65(b).
2. Socially and Economically Disadvantaged Individuals
There is a rebuttable assumption that an individual is both socially and
economically disadvantaged if s/he is a citizen, or lawfully admitted permanent
resident of the United States, and is:
a. Black American (including persons having origins in any of the Black
racial groups of Africa);
b. Hispanic American (including persons of Central or South American,
Cuban, Dominican, Mexican, Puerto Rican, or other Spanish or
Portuguese culture or origin, regardless of race);
C. Native American (including persons who are Aleuts, American Indians,
Eskimos, or Native Hawaiians),
d. Asian -Pacific American (including persons whose origins are from
Brunei, Burma (Myanmar), Cambodia (Kampuchea), China, the
Commonwealth of the Northern Marianas Islands, the Federated States
of Micronesia, Fiji, Guam, Hong Kong, Indonesia, Japan, Juvalu, .
Kirbati, Korea, Laos, Macao, Malaysia, Nauru, the Philippines, Samoa,
Taiwan, Thailand, Tonga, the U.S. Trust Territories of the Pacific
Islands (Republic of Palau), or Vietnam); .
e. Subcontinent Asian American (including persons whose origins are
from Bangladesh, Bhutan, India, the Maldives Islands, Nepal, Pakistan,
or Sri Lanka);
f. Woman; or
g. A member of any additional group that is designated as socially and
economically disadvantaged by the Small Business Administration.
Additionally, any individual can demonstrate, by a preponderance of evidence, that s/he
is socially and economically disadvantaged on a case-by-case basis. The Agency will
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follow the guidelines in 49 CFR Part 26, Appendix E for determining social and
economic disadvantage.
An individual cannot be presumed or determined on a case-by-case basis to be
economically disadvantaged if s/he has a personal net worth exceeding $750,000
(excluding the individual's ownership interests in the small business concern and his or
her primary residence).
B. Race -Neutral
A procedure or program that is used to assist all small businesses. For the purposes of
this Program, race -neutral includes gender neutrality.
C. Race -Conscious
A measure or program that is specifically focused on assisting only DBEs, including
women -owned DBEs.
D. Personal Net Worth
The net value of the assets of an individual remaining after total liabilities are deducted.
An individual's personal net worth does not include: the individual's ownership
interest in an applicant or participating DBE firm; or the individual's equity in his or
her primary place of residence. An individual's personal net worth includes only his or
her own share of community property with the individual's spouse.
A. The Agency Board ultimately is responsible for ensuring that the DBE
Program has a high priority and is a reality within the Agency organization.
B. The Executive Director is responsible for seeing that the Board's policies are
implemented throughout the Agency.
C. The Director of Administrative Services has been designated DBE Officer
by the Director -of Executive Director as the management staff member
responsible for overseeing the DBE Program and has the full support of the
Executive Director. The DBE Officer, in coordination with the Executive
Director and the Purchasing Agent, is responsible for recommending DBE
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policy, developing a written DBE program, and establishing internal and
external communication procedures.
D. The DBE Officer and the Purchasing Agent are responsible for contract and
procurement of goods and services; for assuring that such processes are carried
out in a non-discriminatory manner; for initiating procedures; and for
developing strategies to ensure non-discrimination in the Agency's purchasing
and contracting activities. The senior management staff and the contract/project
managers are expected to assist in problem identification when DBE goals are
included in a contract; to audit specific contracts and remove obstacles to
achieving DBE goals; and to provide the DBE Officer and other staff the
support to assure that DBE program guidelines are being followed.
E. The Agency Counsel is responsible for advising the Agency Board, the
Director of Administrative Services, and Agency staff on the legal ramifications
of DBE Program implementation.
F. The DBE Officer is responsible for carving out the following day-to-day
activities:
Pursuant to 49 CFR § 26.23, the Program shall be administered by the DBE Officer;
who shall be appointed by and report to the Executive Director. The DBE Officer is
the primary person responsible for all aspects of this Program, and will work closely
with other departments and consultants of the Agency, including legal, purchasing,
engineering, and others who are responsible for making decisions relative to the
Agency's DOT -assisted construction, procurement, and professional service contracts.
The DBE Officer for the Santa Clarita Redevelopment Agency is Darren Hernandez.
In accordance with 49 CFR 26.23, the specific duties and responsibilities of the DBE
Officer shall include, but not be limited to, the following;
1. Gathering and reporting statistical data and other information as required by
FTA;
2. Reviewing third party contracts and purchase requisitions for compliance with
this Program;
Working with appropriate divisions to establish overall annual goals;
4. Ensuring timely notification to the DBE community of bid and contract
opportunities;
Santa Clarita Redevelopment Agency DBE Program
5. Identifying contracts and procurements so that DBE goals are included in
solicitations for both race -neutral and race -conscious DBE participation, and
monitoring the results;
6. Analyzing Agency progress toward DBE goal attainment, and identifying ways
to improve progress;
7. Participating in pre-bid meetings;
Analyzing and assessing the available resources and evidence for the .
establishment and achievement of an annual overall participation goal for
DBEs each fiscal year;
9. Advising the Director of Administrative Services on DBE matters;
10. Maintaining and updating the DBE Directory in accordance with 49 CFR
23.61;*
11. Maintaining and updating the Bidders List in accordance with 49 CFR 26.11;*
12. Identifying race -neutral measures to facilitate DBE participation such as
outreach, communication programs, training and business development
programs, restructuring contracting opportunities, and simplifying bonding,
surety, and insurance requirements;
13. Planning and participating in DBE training and providing technical assistance;
14. Providing outreach to DBEs and community organizations with advice on DBE
Program issues and contract opportunities;
15. Participating in the contract bid and award process including establishing
specific contract goals where appropriate, reviewing contract specifications,
attending pre-bid conferences, and evaluating bids for contractor
responsiveness, responsibility, and good faith efforts;
16. Monitoring specific contract performance and actual DBE participation;*
17. Monitoring overall DBE participation, adjusting overall goals and means of
achievement, assessing areas of over concentration of DBE participation, and
reporting to the Agency and FTA as needed; ,
18. Determining all initial certification actions including certifications,
recertifications, denials, and removals;*
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19. Participating in the development of a sfatewide Unified Certification Program in
accordance with 49 CFR 26.81;*
20. Assisting the Agency's DBE Program Review Committee (DPRC);
21. Participating in the Regional Certification Reciprocity Council of Southern
California (RCRC); and
22. Maintaining all appropriate records and documentation of the DBE Program.
Note: Asterisk (*) indicates new or revised responsibility in 49 C.F.R. Part 26.
G. The Project Manager is responsible for ensuring contractor compliance with
the requirements of 49 C.F.R. Part 26 for each contract under their cognizance.
The Project Manager will assist the DBE Officer in carrying out the day-to-day
responsibilities of the DBE Program. and obtain necessary data from
contractors and subcontractors for reporting to DOT.
DBE Program Review Committee (DPRC)
The DBE Officer, the Transportation Manager, the Project Engineer, and the
Purchasing Agent will comprise the DBE Review Committee. The DBE Officer shall_
serve as a resource to the Committee, attending all meetings and furnishing background
information. The Committee, shall assist the DBE Officer with implementation of this
Program and shall preside over hearings that may be held pursuant to this Program,
including Administrative Reconsideration of the DBE Officer's determination of a
bidder's compliance with "good faith efforts," or of the removal of DBE certification, in
accordance with 49 CFR 26.53(d) and 26.87(d), respectively.
Regional Certification Reciprocity Council of Southern California (RCRC)
The DBE Officer is designated by the Director of Administrative Services to represent
the Agency as a member of the Regional Certification Reciprocity Council of Southern
California (RCRC). The Agency will participate in RCRC programs, activities, and
efforts in the Region to create a level playing field on which DBEs can compete fairly;
to enhance outreach and communication efforts with these firms; to provide appropriate
assistance and information for participation in DOT -assisted contracts; to develop joint
resources among recipients; and to coordinate certification efforts through reciprocity
and the development of a Unified Certification Program. To this end, the DBE Officer
will attend scheduled meetings of the RCRC and will contribute to the achievement of
RCRC projects approved by the Agency's Director of Administrative Services.
Santa Clarita Redevelopment Agency DBE Program
RCRC Appeals Review Panel
The DBE Officer will offer to serve as a member of the RCRC Appeals Review Panel,
as necessary. This panel was established by the RCRC for the purpose of facilitating a
truly impartial hearing, at the local level, of denials on applications for DBE
certification or recertification. It is the policy of RCRC member agencies to provide a
forum in which firms are provided the opportunity to participate in a hearing on their
DBE eligibility denial before a review panel composed of representatives from
agencies that did not make the eligibility decision.
In such proceeding, the Agency bears the burden of proving, by a preponderance of the
evidence, that the firm does not meet certification standards. If, in the opinion of a
majority of the RCRC Appeals Review Panel, the Agency fails to prove the firm's
ineligibility, the panel may override the Agency's decision and such determination by
the Appeals Review Panel will be accepted as final by the Agency. (See page 41 for
further discussion of the hearing process.)
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A. DBE Financial Institutions
Pursuant to 49 CFR §-26.27, the DBE Officer shall investigate the availability
of services offered by financial institutions owned and controlled by socially
and economically disadvantaged individuals in the Los Angeles Area. The
Agency shall also encourage its prime contractors to use the services of DBE
financial institutions.
B. DBE Directory
Pursuant to 49 CFR § 26.3 1, the DBE Officer will maintain and update
annually a DBE directory that identifies all firms deemed to be eligible to
participate as DBEs in this Program. The DBE directory will be made
available, on request, to contractors and the public. The DBE directory shall
include the firm's name, address, telephone number, and types of work for
which the firm is certified as a DBE. The DBE directory shall not in any way
pre -qualify the identified DBE firms with respect to licensing, bondability,
competence, or financial responsibility.
C Over -Concentration
Pursuant to 49 CFR § 26,33, if the DBE Officer determines that DBE
-participation is so over -concentrated in certain types of work or contracting
opportunities that it unduly burdens the participation of non -DBEs in that type
of work, the DBE Officer will develop appropriate measures to address the
over -concentration. The DBE Officer will seek approval from the FTA, and at
that time, the measures will become part of this Program. Currently, the
Agency is unaware of any types of work that have a burdensome over -
concentration of DBE participation.
D. Business Development and Mentor -Protege Programs
One method of providing race -neutral efforts for DBE participation will be
through participating in Area Business Development programs. Instruction may
cover such topics as: teaming and joint ventures, writing a winning proposal or
bid, the bid evaluation process, and addressing various barriers that small
businesses encounter in third party contracting.
If the Agency is directed to develop a mentor/protege program, one will be
written and submitted to FTA's Regional Office for approval, after- which it will
become part of this DBE Program. Guidelines outlined in Appendices C and D
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of 49 CFR Part 26 will be utilized in setting up requisite formal agreements and
programs.
When a company is identified by the Agency as a potential candidate for a
formal business development program, further technical assistance, or a
mentor/protege relationship, the company will be provided with pertinent
information concerning available Area programs.
F. Reconsideration Official
In accordance with 49 CFR 26.53(d)(2) and 26.87(e), all proceedings by the
Agency regarding the reconsideration of compliance with the provisions of the
DBE regulation concerning a contract award, or the DBE status of a firm, shall
be made by a Agency representative who did not take part in the original
determination. Reconsideration procedures are further discussed on page 19.
F. Transit Vehicle Manufacturer Certification (Section 26.49)
The Agency will require that transit vehicle manufacturers shall certify that they
have established an annual overall DBE participation goal that has been
approved by the FTA (or has been submitted, but not disapproved) before they
can bid on any Agency contracts. Expenditures for FTA -assisted transit vehicle
procurements are not included in establishing the overall annual goal for DOT -
assisted contracting opportunities.
A. OVERALL ANNUAL DBE GOAL
Pursuant to 49 CFR § 26.45, the Agency shall establish an annual overall goal
on a fiscal year basis for the participation of DBEs in all budgeted contracts
utilizing DOT federal financial assistance. The annual overall goal shall be
expressed as a percentage of the total amount of DOT funds the Agency
anticipates expending in the fiscal year. The Agency's annual overall goal
represents the amount of ready, willing, and able DBEs that are identified as
available to participate in contracting opportunities, and is reflective of the
amount of DBE participation the Agency would expect absent the effects of
discrimination. The Agency intends to meet this goal to the maximum extent
feasible through the race -neutral measures described below. Where race -neutral
measures are inadequate to meet the annual overall goal, the Agency will
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establish specific contract goals for particular projects with subcontracting
opportunities.
I., Projecting DOT -Assisted Contract Expenditures
In conjunction with the preparation and adoption of the budget for each fiscal
year, the DBE Officer, in consultation with the appropriate Agency divisions
responsible for transportation contracting activities, will conduct a thorough
analysis of the projected number, types of work, and dollar amounts of
contracting opportunities that will be funded, in whole or in part, by DOT
federal financial assistance for that fiscal year. This analysis will exclude
projected contract expenditures with Transit Vehicle Manufacturers, who are
exempt from the Program as described herein.
2. Establishing a Base Figure
Pursuant to 49 CFR § 26.45, the Agency will develop a base figure to express
the availability of DBEs as a percentage of all contractors, subcontractors, -
manufacturers, and suppliers in the relevant contracting markets. The Agency
will follow one of the methodologies provided in the Regulations, or develop
an alternative methodology, and will provide the appropriate documentation in
the Annual Overall Goal Report described in this DBE Program.
a. Analyzing,Available Businesses in,Relevant Contracting Markets
The DBE Officer, in conjunction with the appropriate Agency
divisions, will conduct an analysis of the relevant contracting markets,.- .
in which the Agency will solicit participation from contractors, - '
subcontractors, manufacturers, and suppliers for the fiscal year. This:
analysis will include a description of geographical boundaries of the
solicitations, the relevant standard industry codes (NAICS codes) for
the types of work to be contracted, and any other indicators that the
Agency determines to be relevant in defining its contracting markets for
the fiscal year. The DBE Officer will then determine the available
businesses and will consult a variety of sources such as the Agency's
Bidder's List, Area DBE Directories, the County Business Patterns
Database, and pertinent disparity studies.
Statistics may be utilized from the Census Bureau, the Department of
Commerce, Bidder's lists, and certified DBEs in the categories of
construction, professional services, and materials/supplies.
Consultation may he held with minority, women, and general contractor
groups, as well as other community organizations, in an effort to
establish a level playing field.
Santa Clarila Redevelopment Agency DBE Program
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b. Analyzing Available DBEs in the Relevant Contracting Markets
The DBE Officer will conduct a similar analysis to determine the DBEs
that are available to participate as contractors, subcontractors,
manufacturers, and suppliers in the projected contracts for the fiscal
year. This analysis may include a description of the available DBEs
relative to the geographical boundaries of the solicitations, the SICs for
the types of work to be contractee, and any other factors as described
above. The Agency may consult a variety of sources including, but not
limited to, DBE Directories, Bidder's Lists, the County Business
Patterns Database, and relevant disparity studies.
C. Calculating the Base Figure
The DBE Officer will compare available DBEs in the relevant
contracting markets for the fiscal year to the available businesses in the
relevant contracting markets for the same period. The calculation will
include a weighting factor according to contract expenditure patterns.
3. Adjusting the Base Figure
Pursuant to 49 CFR § 26.45(d), the Agency will examine all available evidence
to determine whether adjustment is needed to the base figure in order to arrive
at the Agency's overall goal. The DBE Officer will analyze the results of its
efforts to contract with DBEs for the past two years, any available and relevant
disparity studies (to the extent that they are not accounted for in the base
figure), any available and relevant results of other DOT recipients' efforts to
contract with DBEs, and any relevant feedback or projections from DBE
professional organizations, the Small Business Administration, or others.
Using the data collected regarding over -concentration, DBE availability of
firms ready, willing and able, and other necessary information (such as how
long each project will span), a goal will be set at the level of DBE participation
anticipated, absent the effects of discrimination.
4. Projection of Percentage of Overall Goal to be Achieved Through Race
Neutral and Race Conscious Measures
Once the annual overall goal is proposed, the DBE Officer will analyze and
project the maximum feasible portion of that goal that can be achieved by using
race neutral methods. Where the projected portion of the goal using race -
neutral methods is less than the annual overall goal, the remaining portion will
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be achieved by establishing contract'goals for particular projects that have
subcontracting opportunities. Any over -concentration of DBEs in a particular
trade will be excluded from race -conscious contract goals.
The Agency will attempt to meet the maximum feasible portion of the overall
goal by using race -neutral measures. Race -neutral participation includes
procurements in which a DBE wins a prime contract through customary
competitive procedures, or is awarded a subcontract on a prime contract that
does not carry a DBE goal, or even if there is a DBE subcontract goal the DBE
wins a subcontract from a prime that did not consider its DBE status in making
the award:
The DBE Officer shall monitor and adjust the use of contract -specific goals in
accordance with 49 CFR 26.51(f). When projecting the percentage of the
overall annual goal to be achieved through establishing contract -specific goals,
the DBE Officer shall analyze the actual achievement of the overall annual goal
through race -neutral methods in the previous two years. When establishing
contract -specific goals during a current fiscal year, the DBE Officer shall
analyze the progress towards achieving the overall annual goal and increase or
reduce the use of contract -specific goals accordingly. DBE race -conscious .
contract goals will be used only on those DOT -assisted contracts that have --
subcontracting opportunities. DBE contract goals will be established so as to
cumulatively result in meeting that portion of the Agency's overall goal that is
not projected to be'met through race-neutral{means.
5.• Publishing and Submitting the Overall Annual DBE Goal
Upon completion of the process described above, the DBE Officer will prepare
an Overall Annual Goal report which documents the analysis and methodology,
as well as the proposed goal and estimate of participation to be achieved
through race -neutral measures.
a. . Submission of Total Overall Annual Goal
The annual overall goal for DBE participation shall be submitted to
FTA for approval by September 1 for Fiscal Year 2000-2001, and by
August 1 in succeeding years.
b. Publication of Proposed Overall Annual Goal
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Pursuant to 49 CFR § 26.45(g), the .Agency will publish its proposed
overall annual goal. The notice shall include a statement that the
methodology and proposed goal are available for inspection by the
public for 30 days from the date of publication. The notice shall also
include a statement that the Agency will accept public comments to the
proposed goal and methodology for aperiod of 45 days from the date of
publication and provide instructions for the submission of comments.
6. Achieving the Overall Annual Goal
The Agency shall achieve the annual overall goal for DBE participation
through a combination of race -neutral measures and contract goals for
particular contracts with subcontracting opportunities.
a. Race -Neutral Methods
The Agency intends to use race neutral methods to the maximum extent
feasible to achieve its annual overall goal. DBE participation that is
obtained on contracts which have no specific DBE goal, or where prime
contractors use a strictly competitive bidding process, or do not
consider the DBE firm's status as a DBE in awarding a subcontract
shall be considered race -neutral DBE participation. In addition, the
Agency will use the following measures, as appropriate:
i. unbundling large contracts;
ii. assisting in overcoming limitations in bonding;
iii, providing technical assistance;
iv, providing assistance with outreach and communications
programs to DBEs;
V. providing assistance with business development activities
including financial ability, technicallbusiness capacity, use of
emerging technology, and start-ups in non-traditional business
areas for DBEs; and
vi. distributing the DBE directory electronically and otherwise, as
requested.
B. CONTRACT SPECIFIC GOALS - Race -Conscious Measures
1. Establishing Contract Specific Goals
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The Agency shall establish contract -specific DBE participation goals on
particular prime contracts with subcontracting opportunities to the extent that
the Agency cannot achieve its annual overall goal with race -neutral measures.
Where a contract -specific DBE goal has been established, the bidder or
proposer must meet the contract -specific goal or demonstrate that it made good
faith efforts to do so. 'A bidder shall be ineligible for award if it does not meet
the goal or demonstrate good faith efforts.
The goal shall be established based on a recommendation and information
furnished by the DBE Officer. The contract -specific goal shall apply to the
percentage participation of DBEs in the total contract work and be set forth in
the contract documents. The Agency is not required to establish a contract -
specific goal for every prime contract with subcontracting opportunities. For
each contract involving subcontracting opportunities, the factors outlined below
will be considered to determine whether a contract -specific goal should be
established for the particular contract and, if so, what the percentage goal shall
be:
a. The projected portion of the overall annual goal that will be met by
establishing contract -specific goals;
b. The progress towards achieving the annual overall goal;
C. The full range of activities in the proposed contract;
d. The availability of DBEs as prime contractors or subcontractors in the
types of work involved in the performance of the proposed contract;
e. The unique conditions of the project that might affect the ability of the
prime contractor to coordinate, utilize, or incorporate subcontractors or
suppliers into the project, (Projects consisting of only one or two sub -
trades may not be appropriate for a contract -specific goal due to the fact
that establishing a goal could result in restrictive bidding).
f. The effect that the contract -specific goal might have on the time of
completion; and
g. Any other relevant criteria.
2. Awarding Contracts with Contract -Specific Goals
Each solicitation for which a DBE contract goal has been established will
require the bidders/offerors to submit the following information either under
sealed bid procedures as a matter of responsiveness, or with initial proposals
Santa Clarita Redevelopment Agency DBE Program
16
under contract negotiation procedures, or at any time before a commitment to
the performance of a contract:
a. The names and addresses of DBE firms that will participate in the contract;
b. A description of the work that each DBE will perform;
c. The dollar amount of the participation of each DBE firm;
d. Written documentation of commitment to use DBE subcontractors whose
participation the prime submits to meet a contract goal;
e. Written confirmation from the DBE that it is participating in the contract as
provided in the prime contractor's commitment; and
If the DBE contract goal is not met, evidence of good faith efforts to meet
the goal
The Agency shall award contracts to the lowest responsible bidder, as required
by the California Public Contracts Code Sections 20914 and 20916. A bidder
who fails to demonstrate that it achieved the contract -specific DBE
participation goal, and fails to demonstrate that it made good faith efforts to do
so, shall not be deemed "responsible" and, therefore, shall be ineligible for
award of the contract.
3. Evaluation of Bids with DBE Goals
After the bid opening, or submission of proposals, the DBE Officer shall
evaluate all bids/proposais with regard to the DBE requirements to determine a
recommendation for award of contract. The responsible bidder with the lowest
apparent bid price, who also meets the contract -specific goal or demonstrates
good faith efforts, shall be recommended for contract award. In the event that
the bidder with the lowest apparent bid price does not meet the contract -specific
goal or demonstrate good faith efforts, the DBE Officer shall evaluate the
bidder with the next lowest bid price. (See Reconsideration Process discussion
on pages 10 (E) and 19 (d).)
a. Evaluation of DBE Certification Status
The Agency shall require that any DBEs listed by bidders for
participation in the contract be certified as eligible DBEs. The DBE
Officer shall review the Bidder's DBE Report to confirm each DBE's
certification status. The Agency will accept current certifications by the
Santa Clarita Redevelopment Agency DBE Program
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Agency, DOT and its agencies, the Small Business Administration, or
other DOT federal financial assistance recipients, as appropriate. The
Agency will require any firm listed, but not currently certified as a
DBE, to submit the proper certification information within five days of
bid opening in order to be included in the bidder's DBE achievement.
b. Determination of Amount of DBE Participation
The DBE Officer shall review the total dollar value of the work and the
percentage of the total contract bid price reported on the Bidder's DBE
Report for accuracy and shall compare it to the contract -specific goal
established for the contract.
C. Determination of Good Faith Efforts
If the amount of DBE participation does not meet the contract -specific -
goal, the DBE Officer shall review the good faith effort report
submitted by the bidder, as required by the contract document. The
DBE Officer shall determine whether the bidder has performed the
quality, quantity, and intensity of efforts that demonstrates a reasonably
active and aggressive attempt to meet the contract -specific goal in p
accordance with 49 CFR Part 26 Appendix A which is incorporated
herein by this reference.
The kinds of effort that will be considered demonstrative of "Good
Faith Efforts" include, but are not limited to, the following:
- Whether the contractor solicited through all reasonable and available
means (e.g. attendance at pre-bid meetings, advertising and/or written
notices) the interest of all certified DBEs who have the capability to
perform the work;
- Whether the contractor solicited interest within sufficient time to
allow the DBEs to respond and, if appropriate steps were taken, to
follow-up with interested DBEs;
- Whether the contractor selected portions of work to be performed by
DBEs and, where appropriate, broke -out contract work items into
economically feasible units to facilitate DBE participation even when
the prime might otherwise prefer to perform these work items with its
own forces;
- Whether the contractor negotiated in good faith with interested DBEs
(evidence includes names, addresses, and phone numbers; description
Santa Clarita Redevelopment Agency DBE Program
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of information provided regarding plans and specifications; and
evidence as to why additional agreeinents could not be reached);
- Whether the contractor made efforts to assist interested DBEs in
obtaining necessary equipment, supplies, materials, or related assistance
or services;
- Whether the contractor made efforts to assist interested DBEs in
obtaining bonding, lines of credit, or insurance;
-Whether the contractor effectively used the services of available
minority/women community organizations, contractors' groups, or other
organizations to provide assistance; and
- Whether other bidders on the procurement met the DBE goal.
Bidder's Right to Administrative Reconsideration
In the event that the DBE Officer determines that the apparent low
bidder has not met the contract -specific goal and has not demonstrated
good faith efforts, the DBE Officer will notify the bidder in writing.
The notification shall explain the basis and include the reasons for the
determination, and shall inform the bidder of its right to submit further
written documentation or appear before the Reconsideration Officer
prior to the time that a recommendation for award of contract is
presented to the Agency Board. After reconsideration, the Agency shall
provide the bidder with a written decision. The result of the
reconsideration process is not appealable by the bidder to the
Department of Transportation.
In the event that the Reconsideration Officer finds that the bidder has
not met the contract goal or demonstrated good faith efforts, the
Agency will deem said bidder not responsible and evaluate the bidder
submitting the next lowest bid.
4. Recommendation for Award of Contract with DBE Goal
Following determination of the lowest responsible bidder, the DBE Officer
shall document the lowest responsible bidder's compliance with the DBE
requirements, which maybe reviewed at the time the contract award is
considered. If the Agency Board disagrees with the recommendation, it shall
Santa Clarita Redevelopment Agency DBE Program
19
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.F�6rr�,•.' .
y I -
reject all bids or refer'the.matter back`to the Director of Administrative Services
for further evaluation and recommendation.
5. DBE Replacement _
A contractor must make a good faith effort to replace a defaulting DBE
subcontractor with another certified DBE. The prime must immediately notify
the DBE Officer of the DBE's inability to perform and provide reasonable
documentation. The contractor must receive prior written approval on the
substitute DBE from the Agency, The contractor will provide copies of new or
amended subcontracts and a completed DBE certification application form for
each new DBE, or must provide sufficient good faith efforts documentation, If
the contractor fails or refuses to comply in the time specified, the Agency will
issue an order stopping all, or part of, payment/work until satisfactory action
has been taken. If the contractor still fails to comply, the Agency may issue a
termination for default proceeding.
C. COUNTING AND TRACKING DBE PARTICIPATION
Only the work actually performed by a DBE will be counted towards the DBE
goal. The cost of supplies and materials obtained by the DBE or equipment
leased (except from the prime contractor or its affiliate) may also be counted.
Work that a DBE subcontracts to a non -DBE firm does not count toward DBE
goals. Expenditures may only be counted if the DBE is performing a
commercially -useful function. A DBE should perform at least 30 percent of the
total cost of its contract with its own work force. Decisions on commercially -
useful function are subject to review by the FTA, but are not administratively
appealable to DOT.
If materials or supplies are obtained from a DBE manufacturer, 100 percent of
the cost will be counted. If the materials and supplies are purchased from a
DBE regular dealer, 60 percent of the cost will be, counted.
DBE achievement will not be counted toward the overall goal until the DBE
has been paid. The DBE Officer will track the participation of DBEs in
contract -specific goal contracts separately from the participation of DBEs that
are considered race -neutral. Additionally, the DBE Officer will not count that
portion of a DBE's participation that is achieved after the certification of the
DBE has been removed during the performance of a contract.
VIv RE UIRED CONTRACT PROVISIONS(Sectcgn 2613)
Qa ,.a... G..,..
Santa Clarita Redevelopment Agency DBE Program
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The Agency agrees to include the following provisions in all DOT -assisted contracts,
where appropriate:
A. Nondiscrimination Assurance
Each financial assistance agreement that the Agency signs with the FTA will
include the following statement:
"The recipient shall not discriminate on the basis ol" race, color, national origin,
or sex in the award and performance of any DOT -assisted contract, or in the
administration of its DBE Program. The recipient shall take all necessary and
reasonable steps under 49 CFR Part 26 to ensure nondiscrimination in the
award and administration of DOT -assisted contracts. The recipient's DBE
Program, as required by 49 CFR Part 26, and as approved by DOT, is
incorporated by reference in this agreement, Implementation of this DBE
Program is a legal obligation and failure to carry out its terms shall be treated as.
a violation of this agreement. Upon notification to the Santa Clarita
Redevelopment Agency of its failure to carry out its approved program, the
Department of Transportation and/or the Federal Transit Administration may
impose sanctions as provided for under Part 26 and may, in appropriate cases,
refer the matter for enforcement under 18 U.S.C. 1001 and/or the Program
Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq)."
2. Each DOT -assisted contract the Agency signs with a contractor, and each
subcontract the prime contractor signs with a subcontractor, will include the
following statement:
"The contractor, subrecipient, or subcontractor shall not discriminate on the
basis of race, color, national origin, or sex in the performance of this contract.
The contractor shall carry out applicable requirements of 49 CFR Part 26 in the
award and administration of DOT -assisted contracts. Failure by the contractor
to carry out these requirements is a material breach of this contract, which may
result in termination of this contract or such other remedy as the Agency deems
appropriate."
B. Prompt Payment Policy and Provisions
The Agency shall include the following provision in each DOT -assisted
contract:
"The prime contractor must pay subcontractors for satisfactory performance of
their contracts no later than 15 days from the receipt of payment made to the
prime by the Agency. Prompt return of retainage payments from the prime
Santa Clnrim Redevelopment Agency DBE Program
21
contractor to the subcontractor will be made within 15 days after the
subcontractor's work is satisfactorily completed. Any delay or,postponement of
payment among the parties may take place only for good cause and with the
Agency's prior written approval. If the prime contractor determines the work of
the subcontractor to be unsatisfactory, it must notify the Agency's DBE Officer
immediately in writing and state the reasons.- Failure by the prime contractor to
comply with this requirement will be construed to be a breach of contract and
subject to contract termination."
C. Legal and Contract Compliance Mechanisms and Remedies
1. Legal Mechanisms and Remedies
The Agency will implement appropriate mechanisms to ensure compliance
with the DBE Program by all program participants under Federal, state, and
local law.
2. Contract Monitoring Mechanisms and Remedies in Contracts Using Race_
Neutral Methods:
a. The DBE Officer will be notified as soon..as it is determined that there will -1
on.as
be a solicitation for bid, proposal; or quotation for a DOT -assisted contract.
If appropriate, notices will then be sent to applicable DBEs and
minority/women organizations.
b. The DBE Officer/Purchasing Agent will obtain a list of companies that
submit bids or proposals and those that did not; and will review to
determine why responses were not submitted and any barriers that may
exist.
c. The DBE Officer/Purchasing Agent will keep records on the companies
ready, willing, and able to do business on any given solicitation.
d. The DBE Officer/Purchasing Agent will keep records on contracts that
have no contract goals and on any DBE primes and subcontractors that
receive awards and contracts.
e. Any possibilities of "unbundling," lowering bond requirements, joint
venture or mentor/protege opportunities will be noted and documented for
file.
3. Contract Monitoring Mechanisms and Remedies in Contracts Using Race -
Conscious Methods:
Sana Clarila Redevelopmen! Agency DBE Program
'22
a. When a DBE goal is set on a contract, the DBE Officer will attend the pre-
bid meeting, and will provide DBE information to contractors prior to bid
opening.
b. Once the contract is awarded, the DBE Officer will monitor the amount
actually paid by the prime to DBE subcontractors, and will require monthly
reports of payinents to DBEs. A letter will be sent to the DBE
subcontractors to verify the dollar amount.
c, The amount awarded to the DBE, the amount paid to the DBE as stated by
the prime, and the amount paid to the DBE as verified by the DBE, will be
tracked. The actual amount paid to DBEs will be reported by the DBE
Officer to FTA.
The DBE Officer will be notified when a contract change or amendment is
made, and the prime contractor and Agency's project manager will submit
a statement to the DBE Officer regarding how the change may. affect DBE
subcontracting,
e. The project manager, in cooperation with the DBE Officer, will ensure that
work is actually being done by DBEs.
4. Other Reporting Requirements
a. The Agency will continue to report DBE participation and annual overall
goal -setting methods to the FTA as directed, and will maintain prescribed
statistical data.
b. Contractors performing work on the Agency's FTA -assisted contracts are
required to report the DBE participation on their contracts on both race -
neutral and race -conscious DBE goal achievement. Contractors are not to
count participation of a DBE subcontractor toward the prime's DBE
achievements or the overall agency DBE goal until the amount being
counted has been paid to the DBE.
VII D$E ¢CERTIFICATION STANDARDS ,
Santa Clarita Redevelopment Agency DBE Program
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The regulation provides guidance from the Small Business Administration regulations
concerning social and economic disadvantage determinations (13 CFR 124.103 and
123.104).
A. Burdens of Proof (Subpart D, Section 26.61)
In determining whether to certify a firm as eligible to participate as a DBE, the
Agency will apply the standards of Subpart D of the regulation. The firm
seeking certification has the burden of demonstrating to the Agency, by a
preponderance of the evidence, that it meets the requirements concerning group
membership or individual disadvantage, business size, ownership, and control.
The Agency will rebuttably presume that members of the designated groups
identified herein are socially and economically disadvantaged. However,
applicants have the obligation to provide the Agency with information
concerning their economic disadvantage (personal net worth statement). The
Agency will make determinations concerning whether individuals and firms
have met the burden of demonstrating group membership, ownership, control,
and social and economic disadvantage by considering all the facts in the record,
viewed as a whole.
B. Group Membership Determinations (Section 26.63)
If the Agency has reason to question whether an individual is a member of a
group presumed to be socially and economically disadvantaged, the Agency
will require an individual to demonstrate, by a preponderance of the evidence,
that he/she is a member of a group presumed to be socially and economically
disadvantaged. In making that determination, the Agency will consider whether
or not the person has held himself/herself to be a member, of the group over a
long period of time prior to application for certification and whether the person
is regarded as a member of the group by the relevant community. The Agency
may require the applicant to produce appropriate documentation of group
membership.
If the Agency determines that an individual claiming to be a member of a group
presumed disadvantaged is not a member of such group, the individual must
demonstrate social and economic disadvantage on an individual basis. The
Agency's decision concerning membership in a designated group will be
subject to certification appeals procedures.
C. Social and Economic Disadvantage Determination (Appendix E)
1. Social Disadvantage
Santa Clarita Redevelopment Ageney DBE Program ^
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Socially disadvantaged individuals are those who have been subjected
to racial or ethnic prejudice or cultural bias within American society
because of their identities as members of groups and without regard to
their individual qualities. Social disadvantage must stem from
circumstances beyond their control.
Evidence of individual social disadvantage must include at least one
objective distinguishing feature that has contributed to social
disadvantage such as race,, ethnic origin, gender, disability, long-term
residence in an isolated environment, or similar causes not common to
individuals not socially disadvantaged; personal experiences of
substantial and chronic social disadvantage in American society, not in
other countries; and negative impact on entry into or advancement in
the business world because of the disadvantage.
The Agency will consider any relevant evidence in its assessment of
this element, and in every case the Agency will consider education,
employment, and business history to see if the totality of circumstances
shows disadvantage in entering into or advancing in the business world.
2. Economic Disadvantage
Economically disadvantaged individuals are socially disadvantaged
individuals whose ability to compete in the free enterprise system has
been impaired due to diminished capital and credit opportunities as
compared to others in the same or similar line of business who are not
socially disadvantaged.
The Agency requires submission of narrative and financial information
from each individual claiming economic disadvantage. Each such
individual must describe in a narrative statement the conditions that are
the basis for the claim, and each must also submit personal financial
information. The Agency will require a married individual to submit
separate financial information for his/her spouse unless they are legally
separated.
In considering diminished capital and credit opportunities, the Agency
will examine all factors relating to personal financial condition,
including personal income for the past two years, personal net worth,
and the fair market value of all assets. The Agency wil also consider
the financial condition of applicants compared to financial profiles of
small businesses in the same primary industry classification(s) or
similar lines of business. The financial profiles to be compared include
total assets, net sales, pre-tax profit, sales/working capital ratio, and net
Santa Clatita Redevelopment Agency DBE Program
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worth.
The Agency will attribute to any individual claiming disadvantaged
status any assets that individual has transferred to an immediate family
member, trust, or beneficiary for less than the fair market value within
the prior two years of the concern's application, unless that individual
demonstrates the transfer is to or on behalf of an immediate family
member for education, medical or, some other form of essential support,
excluding gifts for birthdays, graduations, anniversaries, retirements or
other special occasions. The Agency will consider assets transferred by
anindividual within the previous two-year period that are not
considered in evaluating the individual's assets and net worth, such as
transfers to charities.
Statement of Personal Net Worth (Section 26.67)
The Agency shall rebuttably presume that citizens of the United States.
(or lawfully admitted permanent residents) who are Women, Black
Americans, Hispanic Americans, Native Americans, Asian -Pacific
Americans, Subcontinent Asian Americans, or other minorities found
disadvantaged by the Small Business Administration are socially and
economically disadvantaged individuals. The Agency will require
applicants to submit a signed, notarized certification in a prescribed
format that each presumptively disadvantaged owner is, in fact, socially
and economically disadvantaged. The Agency will also require each
individual owner of a firm to submit a signed, notarized statement of
personal net "worth with appropriate supporting documentation. In
determining net worth, the Agency will exclude an individual's
ownership interest in the applicant firm and the individual's equity in
his/her primary residence.
If the statement of personal net worth that an individual submits shows
the individual's personal net worth to exceed $750,000, the individual's
presumption of economic disadvantage will be rebutted without any
further formal proceedings. If the Agency has a reasonable basis to
believe that an individual who is a member of one of the designated
groups is not, in fact, socially and/or economically disadvantaged, the
Agency may start a proceeding to determine whether the presumption
should be regarded as rebutted with respect to that individual. The
Agency shall. follow the procedures set forth in VIII (E), Removal
Procedures. In this proceeding, the Agency has the burden of
demonstrating, by a preponderance of the evidence, that the individual
is not socially and economically disadvantaged. The Agency may
Santa Clarila Redevebpmern Agency DBE Program
" 26
require the individual to produce additional information relevant to the
determination of his/her disadvantage.
When an individual's presumption of social and/or economic
disadvantage. has been rebutted, his/her ownership and control of the
firm cannot be used for purposes of DBE eligibility unless and until
he/she makes an individual showing of social and/or economic
disadvantage in the future. If the basis for rebutting the presumption is
a determination that the individual's personal net worth exceeds
$750,000, the individual is no longer'eligible for participation in the
program and cannot regain eligibility by making an individual showing
of disadvantage. (See page 36 for discussion of related privacy issues.)
4. U. S Small Business Administration Section 8(a) Firms (Section
26.67(c))
If a firm applying for certification has a current valid Section 8(a)
certification from or is recognized by the U.S. Small Business
Administration under the Section 8(a) Program, the Agency will accept
the firm's 8(a) certification in lieu of conducting its own certification
proceeding.
Individual Determinations of Social and/or Economic Disadvantage
(Section 26.67(d))
Firms owned and controlled by individuals who are not presumed to be
socially and economically disadvantaged (including individuals whose
presumed disadvantage has been rebutted) may be certified by the
Agency on a case-by-case basis. The Agency will determine whether
each individual whose ownership and control are relied upon for DBE
certification is socially and economically disadvantaged. In such a
proceeding, the applicant firm must demonstrate, by a preponderance of
the evidence, that the individuals who own and control it are socially
and economically disadvantaged. An individual whose personal net
worth exceeds $750,000 will not be detennined to be economically
disadvantaged. The Agency will use guidance in Appendix E of 49
CFR Part 26.
D. Business Size Determinations (Section 26.65)
Santa Clarita Redevelopment Agency DQE Program
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To be an eligible DBE;'a firm (inclddino'its affiliates) must be an existing small
business as defined by SBA standards. The Agency will apply current SBA
business size standards found in 23 CFR Part 121 appropriate to the types of
work the firm seeks to perform in U.S. DOT -assisted contracts. Even if the
firm meets the SBA requirements, a firm is not an eligible DBE in any federal
fiscal year if the firm (including its affiliates) has had average annual gross
receipts, as defined by SBA regulations, over the firm's previous three fiscal
years in excess of $16.6 million, as adjusted for inflation from time to time.
E. Ownership Determinations (Section 26.69)
1. In determining whether the socially and economically disadvantaged
participants in a firm own the firm, the Agency will consider all the
facts in the record viewed as a whole. To be an eligible DBE, a firm
must be at least 51 percent owned by socially and economically
disadvantaged individuals. In the case of a corporation, such
individuals must own at least 51 percent of each class of voting stock
outstanding and 51 percent of the aggregate of all stock outstanding, In
the case of a partnership, 51 percent of each class of partnership interest
must be owned by socially and economically disadvantaged individuals
and must be reflected in the firm's partnership agreement. In the case
of a limited liability company, at least 51 percent of each class of
member interest must be owned by socially and economically
disadvantaged individuals.
2. The firm's ownership by socially and economically disadvantaged
individuals must be real, substantial, and continuing, going beyond pro
forma ownership of the firm as reflected in the ownership documents.
The disadvantaged owners must enjoy the customary incidence of -
ownership and share in the risks and profits commensurate with their
ownership interests, as demonstrated by the substance, not merely the
form, of arrangements.
All securities that constitute ownership shall be held directly by
disadvantaged persons. Except as provided in the regulation, no
securities or assets held in trust, or by any guardian for a minor, are
considered as held by disadvantaged persons in determining ownership
of a firm.
4. The contributions of capital or expertise by the socially and
economically disadvantaged owners, to acquire their ownership
interests, must be real and substantial.
Santa Clarita Redevelopment Agency DBE Program
28
5. In a situation in which an individual's expertise is relied upon as part of
a disadvantaged owner's contribution to acquire ownership, the
owner's expertise must be: in a specialized field; of outstanding quality;
in areas critical to the firm's operations; indispensable to the firm's
potential success; specific to the type of work the firm performs; and
documented in the records of the firm. The individual whose expertise
is relied upon must have a significant financial investment in the firm.
For purposes o determining ownel-ship, the Agency will teem as held
by a socially and economically disadvantaged individual all interests in
a business or other assets obtained by the individual:
a. As the result.of a final property settlement or court order in a
divorce or legal separation; and
b. Through inheritance or otherwise because of the death of the
former owner.
6. The Agency will presume as not being held by a socially and
economically disadvantaged individual, for purposes of determining
ownership, all interests in a business or other assets obtained by the
individual as the result of a gift, or transfer without adequate
consideration, from any non -disadvantaged individual or non -DBE firm
which is:
a. Involved in the same firm for which the individual is seeking
certification, or an affiliate of that firm;
b. Involved in the same or a similar line of business; of
C. Engaged in an ongoing business relationship with the firm, or
an affiliate of the firm for which the individual is seeking
certification.
To overcome this presumption and permit the interests or assets to be
counted, the disadvantaged individual must demonstrate by clear and
convincing evidence that:
a. The gift or transfer- was made for reasons other than obtaining
certification as a DBE; and
b. The disadvantaged individual actually controls the
management, policy, and operations of the firm,
notwithstanding the continuing participation of a non -
disadvantaged individual who provided the gift or transfer.
Santa Clarita Redevelopment Agency DBE Program
29
8. The Agency will apply the following rules in situations in which marital
assets form a basis for ownership of a firm:
a. When marital assets (other than the assets of the business in
question), held jointly or as community property by both
spouses, are used to acquire the ownership interests asserted by
one spouse, the Agency will deem ownership interest in the
firm to have been acquired by that spouse with his/her
individual resources, provided that the other spouse irrevocably
renounces and transfers all rights in the ownership interest in
the manner sanctioned by the laws of the state in which either
spouse or the firm is domiciled, The Agency will not count a
greater portion of joint or community property assets toward
ownership than state law would recognize as belonging to the
socially and economically disadvantaged owner of the firm.
b. A copy of the document legally transferring and renouncing the -
other spouse's rights in the jointly owned or community assets
used to acquire an ownership interest in the firm must be _ . .
included as part of the firm's application for DBE certification: wt --
9. The Agency may consider the following factors in determining the
ownership `of a firm, but shall not regard a contribution of capital as
failing to be real and substantial or find a firm ineligible solely because:
a. A socially and economically disadvantaged individual acquired
his/or her ownership interest as the result of a gift or transfer
without adequate consideration;
b. There is a provision for the co -signature of a spouse who is not
a socially and economically disadvantaged individual on
financing agreements, contracts for the purchase or sale of real
or personal property, bank signature cards, or other documents;
or
C. Ownership of the firm in question or its assets is transferred for
adequate consideration from a spouse who is not a socially and
economically disadvantaged individual to a spouse who is such
an individual.
9. The Agency will give particularly close and careful scrutiny to the -
ownership and control of a firm to ensure that it is owned and
Saua Clurita Redevelopment Agency DBE Program
30
controlled, in substance as well as in form, by a socially and
economically disadvantaged individual.
F. Control Determinations (Section 26.71)
In determining whether socially and economically disadvantaged
owners control a firm, the Agency will consider all the facts in the
record, viewed as a whole. Only an independent business may be
certified as a DBE. An independent business is one in which its
viability does not depend on its relationship with another firm or firms.
In determining whether a potential DBE is an independent business,
the Agency will scrutinize relationships with non -DBE firms in such
areas as personnel, facilities, equipment, financial and/or bonding.
support, and other resources. The Agency will consider present or
recent employer/employee relationships, the firm's relationship with
prime contractors, and factors related to the independence of a potential
DBE firm. Further, the Agency will consider the consistency of
relationships between the potential DBE and non -DBE firms with
normal industry practice.
2. A DBE firm must not be subject to any formal or informal restrictions
which limit the customary discretion of the socially and economically
disadvantaged owners. The socially and economically disadvantaged
owners must possess the power to direct or cause the direction of the
management and policies of the firm and to make day-to-day as well as
long-term decisions on matters of management, policy, and operations.
A disadvantaged owner must hold the highest officer position in the
company (Chief Executive Officer or President). In a corporation,
disadvantaged owners must control the Board of Directors.
4. In a partnership, one or more disadvantaged owners must serve as
general partners with control over all partnership decisions.
5. Individuals who are not socially and economically disadvantaged may
be involved in a DBE firm as owners, managers, employees,
stockholders, officers, and/or directors. Such individuals must not
possess or exercise the power to control the firm, or be
disproportionately responsible for the operation of the firm. The
socially and economically disadvantaged owners may delegate various
areas of management, policymaking, or daily operations of the firm to
other participants in the firm, regardless of whether these participants
are socially and economically disadvantaged individuals. Such
delegations of authority must be revocable. and the socially and
Santa Clurita Redevelopment Agency DBE Program
31
1
economically'disadvantaged owners must retain the power to hire and
fire any person to whom such authority is delegated. The managerial
role of the socially and economically disadvantaged owners in the
firm's overall affairs must be such that the Agency can reasonably
conclude that•the socially and economically disadvantaged owners
actually exercise control over the firm's operations, management, and
policy.
•6. The socially and economically disadvantaged owners must have an
overall understanding of, and managerial and technical competence
directly related to, the type of business in which the firm is engaged and
the firm's operations.
7. If the state or local law requires the persons to have a particular license
or other credential in order to own and/or control a certain type of firm,
then the socially and economically disadvantaged persons who own and
control a potential DBE firm of that type must possess the required
license or credential. The Agency will consider differences in
remuneration between socially and economically disadvantaged owners
and other participants in the firm, in the context of the duties involved,
normal industry practices, and the firm's policies and practices. In
order to be viewed as controlling the firm, a socially and economically
disadvantaged owner cannot engage in outside employment or other
business interests which conflict with' the management of the firm or
prevent the individual from devoting sufficient time and attention to the
affairs of the firm.
8. A socially and economically disadvantaged individual may control the
firm even though one or more of the individual's immediate family
members (who themselves are not socially and economically
disadvantaged individuals) participate in the firm. If the Agency cannot
determine that the socially and economically disadvantaged owners, as
distinct from the family as a whole, control the firm, then the socially
and economically disadvantaged owners have failed to carry the burden
of proof concerning control even though they may participate
significantly in the firm's activities. '
9. Where a firm was formerly owned and/or controlled by a non -
disadvantaged individual, whether or not an immediate family member,
ownership and/or control were transferred to a socially and
economically disadvantaged individual, and the non -disadvantaged
individual remains involved with the firm in any capacity, the
disadvantaged individual now owning the firm must demonstrate by
clear and convincing evidence that the transfer of ownership and/or
Santa Clarita Redevelopment Agency DBE Program
32
control to the disadvantaged individual was made for reasons other than
obtaining certification as a DBE; and that the disadvantaged individual
actually controls the management, policy, and operations of the firm,
notwithstanding the continuing particip.aion of a non -disadvantaged
individual why' foi merly owned and/or controlled the firm.
10. In determining whether a firm is controlled by its socially and
economically disadvantaged owners, the Agency will consider whether
the firm owns equipment necessary to perform its work. The Agency
will not determine that a firm is not controlled by socially and
economically disadvantaged individuals solely because the fine leases,
rather than owns, such equipment, where leasing equipment is a normal
industry practice and the lease does not involve a relationship with a
prime contractor or other party that compromises the independence of
the firm.
11. The Agency will grant certification to a firm only for specific types of
work in which the socially and economically disadvantaged owners
have the ability to control the firm. To become certified in an
additional type of work, the firm must demonstrate only that its socially
and economically disadvantaged owners are able to control the firm
with respect to that type of work. The Agency will not require that the
firm be recertified or submit a new application for certification, but will
verify the disadvantaged owner's control of the firm and the additional
type of work.
12. The Agency will certify a business operating under a franchise or
license agreement if it meets the standards in the regulation, and the
franchiser or licenser is not affiliated with the franchisee or licensee. In
determining whether affiliation exists, the Agency will not consider
restraints relating to standardized quality, advertising, accounting
format, and other- provisions imposed by the franchise agreement or
license, provided the franchisee or licensee has the right to profit from
its efforts and bears the risk of loss commensurate with ownership.
13. In order for a partnership to be controlled by socially and economically
disadvantaged individuals, any non -disadvantaged partners must not
have the power, without the specific written concurrence of the socially
and economically disadvantaged partner, to contractually bind the
partnership or subject the partnership to contract or tort liability.
14. The socially and economically disadvantaged individuals controlling a
firm may use an employee leasing company. This does not preclude
such individuals from controlling their firm if they continue to maintain
Santa C'iarita Redeveionntent Agency DBE Prngrain
33
an employer employee relationship with the leased employees,
including responsibility for hiring, firing, training, assigning, and
otherwise controlling on-the-job activities of the employees as well as
ultimate responsibility for wage and tax obligations related to the
employees.
G. Other. Considerations (Section 26.73)
1. Commercially -Useful Function
The Agency will not consider commercially -useful function issues in
any way in making decisions about whether to certify a firm as a DBE.
Consideration of whether a firm performs a commercially -useful
function, or is a regular dealer, pertains solely to counting toward DBE
goals any participation of firms that have already been certified as
DBEs.
2. Pattern of Conduct
In making certification decisions, the Agency will consider whether. a
firm has exhibited a pattern of conduct indicating its involvement in
attempts to evade or subvert the intent. or requirements of the DBE
> ;,0
program. dr:a
3. Present Circumstances
The Agency will evaluate the eligibility of a firm on the basis of present
circumstances and will not refuse to certify a firm based solely on
historical information indicating lack of ownership or control by
socially and economically disadvantaged individuals at some time in
the past, if the firm currently meets ownership and control standards,
The Agency will not refuse to certify a firm solely on the basis that it is
a newly -formed firm.
4. DBE Cooperation
The Agency expects DBE firms and firms seeking DBE certification to
cooperate fully with requests for information relevant to the.
certification process. Failure or refusal to provide such information is a
ground. for denial or removal of certification.
5. For -Profit Firms
Santa Cladta Redevelop...... Agency DBE Program
'34
Only firms organize(: for profit may be eligible DBEs. Not-for-profit
organizations, even though controlled by socially and economically
disadvantaged in61iduals, are not eligible to be certified as DBEs.
Subsidiaries and Affiliates
An eligible DBE firm mus be owned by individuals who are socially
and economically disadvantaged. Except as provided by this policy, a
firm that is not owned by such individuals, but instead is owned by
another firm—even a DBE firm --cannot be an eligible DBE.
If socially and economically disadvantaged individuals own and
control a firm through a parent or holding company, established for
tax, capitalization, or other purposes consistent with industry practice,
and the parent or holding company, in turn, holds and controls an
operating subsidiary, the Agency will certify the subsidiary if it
otherwise meets all requirements of the regulation. In this situation,
the individual owners and controllers of the parent or holding company
are deemed to control the subsidiary through the parent or holding
company. The Agency will certify such subsidiary only if there is
cumulatively 51 percent ownership of the subsidiary by socially and
economically disadvantaged individuals. Recognition as a business as
a separate entity for tax or corporate purposes is not sufficient to
demonstrate that a firm is an independent business.
Prequalification
The Agency will not require a DBE firm to be prequalified as a
condition for certification unless the Agency requires all firms that
participate in its contracts and subcontracts to be prequalified.
Tribal Organizations
The Agency recognizes that a firm owned by an Indian tribe, Alaska
Native Corporation, or Native Hawaiian organization as an entity,
rather than by Indians, Alaska Natives, or Native Hawaiians as
individuals, may be eligible for certification as long as such firm meets
the size standards and is controlled by socially and economically
disadvantaged individuals.
Santa Clnrita Redevelopment Agency DBE. Program
35
1
H. Privacy/Confidentiality (Section 26.67)
The Agency will ensure that any individual's personal financial information
remains confidential. Neither an individual's Personal Net Worth Statement,
nor any documentation supporting it, will be released to a third party without
the written consent of the submitter, or as otherwise required by law or court
order.'
The sole exception to this confidentiality policy is in the event of a certification
appeal to the U.S. DOT in which the economic disadvantage of an individual is
at issue. In such a circumstance, the personal financial information would be
provided by the Agency to the U.S. DOT as part of the administrative record.
The U.S. DOT would treat the information as confidential, in accordance with
64 FR 5117; February 2, 1999.
A. Unified Certification Program (Section 26.81)
The Agency is a participant in a reciprocal -'regional DBE certification program,
It is the intent of the Agency to cooperate fully in the facilitation of a unified
DBE certification program (UCP) to be fully operational by September, 2003.
B. Initial Certification Procedures (Section 26.83)
The Agency will ensure that only firms certified as eligible DBEs participate as
DBEs in the DBE program. The Agency will determine the eligibility of firms
as DBEs consistent with standards of the regulation. The Agency will take the
following steps in determining whether a DBE firm meets the certification
standards of the regulation:
1. The Agency will perform an on-site visit to the offices of the firm and
interview the principal(s) of the firm and review their resumes and/or
work histories. The Agency may also perform visits to job sites if there
are such sites on which the firm is working at the time of the eligibility
investigation. The Agency may rely upon the site visit reports of any
other U.S. DOT grantee with respect to a firm applying for certification;
2. If the firm is a corporation, the Agency will analyze the ownership of
stock in the firm;
Sunt, Clarity Redevelopment Agency DBE Program
36
The Agency will evaluate the bonding and financial capacity of the
firm;
4. The Agency will e raluate the wort: history of the firm, including
contracts it has received, and work it has completed;
5. The Agency will obtain a statement from the firm of the type of work it
prefers to perform as part of the DBE program and its preferred
locations for performing the work, if any.
6. The Agency will obtain or compile a list of equipment owned by or
available to the firm and the licenses the firm and its key personnel
possess to perform the work it seeks to do as part of the DBE program.
7. The Agency will require potential DBEs to complete and submit an
appropriate application form. The Agency will require the applicant to
attest to the accuracy and truthfulness of the information on the
application form. This shall be done either in the form of an affidavit
sworn to by the applicant before a person authorized by state law to
administer oaths, or in the form of a declaration executed under penalty
of perjury of the laws of the United States. The Agency will review all
information on the form prior to making a decision about the DBE
eligibility of the firm.
8. When another grantee, in connection with its consideration of the
eligibility of a firm, requests certification information the Agency has
obtained about that firm, the Agency will promptly make the
information available to the other grantee.
When another U.S. DOT grantee has certified a firm, the Agency has
the discretion to take any of the following actions:
a. Accept another grantee's certification decision;
b. Make an independent certification decision based on
documentation provided by the other grantee augmented by any
additional information the Agency requires the applicant to
provide; or
C. Require the applicant to go through the Agency's certification
process without regard to the action of the other grantee.
Sankt Clarila Redevelopment Agency DBE Program
37
til' Ir).
d. The Agency may choose to or not to, impose an application fee
' --for firms to participate in the•DBE certification process.
e. The Agency will safeguard from disclosure from unauthorized
persons all information gathered as part of the certification
process that may be regarded• as proprietary or other
confidential business information, consistent with applicable
federal, state, and local laws.
f. Once the Agency has certified a firm as a DBE, it shall remain
certified for a period of at least three (3) years unless and until
its certification has been removed. The Agency will not require
DBEs to reapply for certification as a condition of continuing to
participate in the program during this three-year period unless
the factual basis on which the DBE certification was made
undergoes change in circumstance. .
g. Once certified, a DBE firm must inform the Agency in writing..•
of any changes in circumstances affecting the firm's ability to
meet size, disadvantaged status, ownership, or control
requirements, or any material change in the information
provided in the certification application process, and attach
supporting documentation describing in detail the nature of
such changes. Changes in management responsibility among
members of a limited liability company are also covered by this
requirement. Such notice of change from the DBE firm must
take the form of an affidavit sworn to before a person
authorized by state law to administer oaths, or of a declaration
executed under penalty of perjury. The written notification
shall be provided by the DBE within thirty (30) days of
occurrence of the change(s). If the DBE fails to make timely
notification of such change(s), it will be deemed to have failed
to cooperate under the regulation.
h. The Agency will make attempt to make decisions on
applications for DBE certification within ninety (90) days of
receiving from the applicant firm all information required.
B. Recertification Procedures (Section 26:83)
Every firm certified by the Agency as a DBE must provide to the Agency every
year on the anniversary of the date of initial certification, an affidavit sworn to
by the firm's owners before a person who is authorized by state law to
Santa Clarha Redevelopment Agency DBE Program m:a
38
administer oaths or an unsworn declaration executed under penalty of perjury of
the laws of the United States. This affidavit must affirm that there have been
no changes in the firm's circumstances affecting its ability to meet size,
disadvantaged status, ownership, or control requirements of the regulation or
any material changes to the information provided in its original application,
except for changes o.bout'which it has notified the Agency as required in
Paragraph "g" above. The affidavit shall specifically affirm that the DBE
continues to meet SBA b isiness size criteria and the overall gross receipts cap,
documenting this affirmation with supporting documentation of the DBE's size
and gross receipts. If the DBE fails to provide this information in a timely
manner, it will be deemed to have failed to cooperate with the requirements of
the regulation (26.109).
C. Denials and Reapplication Procedures (Section 26.85)
When the Agency denies a request by a firm that is not currently certified, the
Agency will provide the firm a written explanation of the reasons for the denial,
specifically referencing the evidence in the record that supports each reason for
the denial. All documents and other information on which the denial is based
will be made available to the applicant firm upon request. When a firm is
denied certification, it is required to wait at least twelve (12) months before it
may reapply for DBE certification with the Agency. The time period for
reapplication begins on the date the explanation for denial of certification is .
received by the applicant firm.
E. " Removal Procedures (Decertification) (Section 26.87)
Ineligibility Complaints
Any person may file with the Agency a written complaint alleging that
a currently certified firm is ineligible and specify the alleged reasons
why the firm is ineligible. The Agency is not required to accept a
general allegation that a firm is ineligible or an anonymous complaint.
The complaint shall include any information or arguments supporting
the assertion that the firm is ineligible and should not continue to be
certified. Confidentiality of complainants' identities will be protected.
The Agency will review ali records concerning the firm, any material
provided by the firm and the complainant, and other available
information. If the Agency determines, based on this review, that there
is reasonable cause to believe the firm is ineligible, the Agency will
provide written notice to the firm of its intention to find the firm
ineligible with the reasons for the proposed determination. If the
Agency determines such reasonable. cause does not exist, the Agency
"anra Clarila Redevelopinew Agency DBE Program
39
u
will notify'the'complainant in' writing of this finding and the reasons for
it. All statements of reasons for findings on'the issue of reasonable
cause will specifically reference the evidence in the records on which
Bach reason is based.
2. Agency -Initiated Proceedings
Based on notification by the DBE firm of a change in its circumstances
or other information that becomes available to the Agency, if the
Agency determines there is reasonable cause to believe a currently
certified firm is ineligible, the Agency will provide written notice to the
firm of its intention to find the firm ineligible, setting forth the reasons
for the proposed determination. The statement of reasons for the
finding of reasonable cause will specifically reference the evidence in
the record on which each reason is based.
3. U.S. DOT Directive to Initiate Proceedin
If a U.S. DOT agency determines that information in the certification
records, or other available information, establishes reasonable cause.-••
that a firm certified by the Agency does not meet eligibility criteria,.the�-
agency may direct the Agency to initiate a proceeding.to remove the
firm's certification. The agency must provide the.Agency and the firm
a notice setfing forth reasons for iheldirective, including relevant .
documentation. The Agency will immediately commence and prosecute
a proceeding to remove the eligibility of the firm.
4. Hearin
When the Agency notifies a firm that there is cause to remove its
eligibility as defined above, the Agency will provide the firm an
opportunity for an informal hearing at which the firm may respond to
the reasons for the proposal to remove eligibility in person and offer
information and arguments concerning why it should remain certified.
The hearing will be held before an independent RCRC Appeals Review
Panel composed of representatives from agencies that did not make the
eligibility decision. (See page 9 for discussion about the RCRC
Appeals Review Panel.) In such proceeding, the.Agency bears the
burden of proving, by a preponderance, of the evidence, that the firm
does not meet the certification standards: The Agency will maintain a
complete record of the hea<•ing. If there is an appeal to U.S. DOT, the
Agency will provide a transcript of the hearing to U.S. DOT and, upon
Sana Clarita Redevelopment Agency DBE Program ` J.-
40
40
request, to the firm. The Agency will retain the original record of the
hearing.
The DBE firm may elect to present. information and arguments in
writing without a hearing. In such event, the Ag„ncy bears the same
burden of proving, by a preponderance of the evidence that the firm
does not meet the certification standards.
Separation of Functions
The Agency will ensure that the decision in a proceeding to remove a
firm's eligibility is made by an office and personnel that did not take
part in actions leading to or seeking to implement the proposal to
remove the firm's eligibility and are not subject, with respect to the
matter, to direction from the office or personnel who did take part in
these actions.
Grounds for Decision
The Agency will not base a decision to remove eligibility on a re-
interpretation or changed opinion of information available to the
Agency at the time of its certification of the firm. The Agency will base
such decision only on one or more of the following: changes in the
firm's circumstances since the certification, information or evidence not
available at the time of certification, information that was concealed or
misrepresented by the firm in previous certification actions, change in
the certification standards or requirements of U.S. DOT since the firm
was certified, or a documented finding that the Agency's determination
to certify the firm was factually erroneous.
Notice of Decision
The Agency will provide the firm written notice of the decision and the
reasons for it, including specific references to the evidence in the record
that supports each reason for the decision. The notice will inform the
firm of the consequences of the Agency's decision and of the
availability of an appeal to U.S. DOT. The Agency will send copies of
the notice to the complainant in an ineligibility complaint or the
concerned U.S. DOT agency that directed the Agency to initiate the
proceeding.
Santa Clarita Redevelopment Agency DBE Protium
41
1
8. Status of Firm During Proceeding
A firm remains an eligible DBE during the proceeding. The firm does
not become ineligible until the issuance of the notice provided for in
Paragraph 7 above.
9. Effects of Removal of Efi ibility
The Agency will take the following action upon removing a firm's
eligibility:
a. When a prime contractor has made a commitment to use the
ineligible firm, or the Agency has made a commitment to use a
DBE prime contractor (but a subcontract or contract has not
been executed before issuance of the decertification notice), the
ineligible firm does not count toward the contract goal or
overall goal. The Agency will direct the prime contractor to
meet the contract goal with an eligible DBE or to demonstrate
that it has made a good faith effort to do so.
b. If a prime contractor has executed a subcontract with the firm
before notice of ineligibility, ;the prime may continue to use the
firm on the contract and may continue to receive credit toward
its DBE goal for the firm's work. When the Agency has let a
prime contract to the DBE later ruled ineligible, the portion of
the ineligible firm's performance of the contract remaining after
issuance of the notice shall not count toward the overall goal
but may count toward the contract goal.
C. If the DBE's ineligibility is caused solely by its having
exceeded the size standard during the performance of the
contract, the Agency will continue to count its participation on
that contract toward overall and contract goals.
F. Process for Certification Appeals to U.S. DOT (Section 26.89)
A firm that has been denied certification, or whose eligibility is removed, may
make an administrative appeal to the U.S. Department of Transportation. A
complainant in an ineligibility complaint to the Agency may appeal to U.S.
DOT'if the Agency does not find reasonable cause to propose removing the
firm's eligibility. All appeals will be sent to the U.S. Department of
Santa Clarita Redevelopment Agency DBE Program
42
Transportation, Office of Civil Rights, 400 Seventh Street, S.W., Room 2401,
Washington, D.C. 20590.
Pending the U.S. DOT decision, the Agency's decision remains in effect. If a
firm wants to file an appeal, it must send a letter to U.S. DOT within ninety
(90) days of the date of the Agency's final decision, including information
concerning why the Agency's decision should be reversed. An appellant firm
must submit a letter wit i the name and address of- any other U.S. DOT grantee
that currently certifies the firm, any ether grantees that may have rejected an
application for certification from the firm or removed the firm's eligibility
within one year prior to the date of the appeal, and any other grantee with which
an application for certification or action to remove eligibility is pending.
A complainant in a third -party ineligibility complaint that appeals the Agency's
decision to U.S, DOT will be requested by U.S. DOT to promptly provide all
information requested. The Agency agrees to provide to U.S. DOT the
complete, well -organized administrative record within twenty (20) days of its
request. U.S. DOT will make its decision based solely on the entire
administrative record without conducting a hearing. When the Agency
provides information to U.S. DOT, the same information will be made
available to the firm and to any third -party complainant involved. U.S. DOT
will affirm the Agency's decision unless it determines, based on the entire
administrative record, that the decision is not supported by substantial evidence
or is inconsistent with the substantive or procedural provisions concerning
certification.
If U.S. DOT determines that the Agency's decision was unsupported, U.S.
DOT will reverse the Agency's decision and will direct the Agency to certify
the firm or to remove its eligibility. The Agency will take the action directed by
U.S. DOT immediately upon receiving written notice. U.S. DOT is not
required to reverse the Agency's decision if it determines a procedural error did
not result in fundamental unfairness to the appellant or substantially prejudice
the opportunity of the appellant to present its case.
If it appears that the record is incomplete or unclear, U.S. DOT may remand the
record to the Agency with instructions seeking clarification or augmentation of
the record before making a finding. U.S. DOT will not uphold the Agency's
decision based on grounds not specified in the Agency's decision. U.S. DOT's
decision will be based on the status and circumstances of the firm on the date of
the decision which was appealed. U.S. DOT will provide written notice of its
decision to the Agency, the firm, and the complainant in an ineligibility
complaint. The notice will include the reasons for U.S. DOT's decision. It is
U.S. DOT's policy to make a decision within one hundred eighty (180) days of
Santo Clarito Redevelopment Agency DISE Program
43
.L
r"ANIJ;.. ..
receiving the complete administrative record. All decisions by U.S. DOT are
administratively final and are not subject to petitions for reconsideration.
1. Actions Following U.S. DOT Decision (Section 26.91)
The decisions of U.S. DOT are binding on the Agency. Such decisions are not
binding, however, on other U.S. DOT grantees. The Agency will take the
following actions after U.S. DOT decisions:
a. If U.S. DOT determines that the Agency erroneously certified a firm,
the Agency must remove the firm's eligibility on receipt of the
determination without further proceedings.
b. If U.S. DOT determines that the Agency erroneously failed to find
reasonable cause to remove the firm's eligibility, the Agency will
expeditiously commence a proceeding to determine whether the firm's
eligibility should be removed.
C. If U.S. DOT determines that the Agency erroneously declined to certify
or remove eligibility of the firm, the Agency must certify the firm
effective on the date of receipt of the written notice.
d. If U.S. DOT determines that the Agency erroneously determined that
the presumption of social and economic disadvantaged either should or
should not be deemed rebutted, the Agency must take appropriate
corrective action as determined by U.S. DOT.
e.. If U.S. DOT affirms the Agency's determination, no further action is
necessary.
f. Where U.S, DOT has upheld the Agency's denial of certification or
removal of eligibility of a firm, or directed the removal of a firm's
eligibility, other grantees with which the firm is certified may
commence proceeding to remove the firm's eligibility. If the Agency
receives information on a U.S. DOT decision of DBE eligibility or
ineligibility, the Agency will take the U.S. DOT action into account in
any certification action involving the firm.
f
YIVIONITOIZING' AND RECORD KEEPING (Sections 2611, 26 0
. _ .z�.. _ . _ . . _
Santa Ctarim Redevelopment Agency DBE I'rogrcrm
• 44
A. Bidders mist (Section 26.11 ("c))
The Agency will create and maintain a bidders list consisting of all firms
bidding on prime contracts and bidding or quoting subcontracts on U.S. DOT -
assisted projects. For'every,' firm, the following information will be included:
firm name, firm address, firm status as a DBE or non -DBE, the age of the firm,
and the annual gross receipts of the firm.
B. ' Monkoring Payments to DBEs (Section 26.37 (b))
The Agency will implement appropriate mechanisms to ensure that its prime
contractors and subcontractors comply with DBE program regulatory
requirements. The Agency will apply legal and contract remedies available
under federal, state, and local law. .
The Agency will also include a monitoring and enforcement mechanism to
verify that the work committed to DBEs at contract award is actually performed
by the DBEs. This mechanism will provide for a running tally of actual DBE
attainments and include a provision ensuring that DBE participation is credited
toward overall or contract goals only when payments are actually made to DBE
firms.
C. Reporting to U.S. DOT (Section 26.11(b))
The Agency will continue to provide data about the DBE program to U.S..
DOT, as required.
11 a h
X. w;w �PITBI.IC PARTICIPATION _OUTI + ACH (Sectionsa26 45,26 51)
A. Public Participation (Section 26.45 (g))
The Agency will provide for public participation in establishing an overall
annual DBE goal which may include: consultation with minority, women's
and general contractor groups; community organizations; and other officials or
organizations that may have information concerning the availability of DBE
and non -DBE firms; the effects of discrimination on DBE opportunities; and
efforts to establish a level playing field for DBE participation. The Agency will
publish a notice announcing proposed overall DBE goals, informing the public
that the proposed goal and its rationale are available for inspection during
normal business hours at the Agency's principal office for thirty (30) days
following the date of the notice, and that the Agency and U,S. DOT will accept
Sonia Clarita Redevelopment Agency DBE_ Program
45
1
comments. on such .goals -for forty-five (45)'days from the date of the notice.
The notice will include the Agency's address and will be published in general
circulation media.
B. Outreach Efforts (Section 26.51)
The Agency will meet the maximum feasible portion of its overall DBE goal by
using race -neutral efforts to facilitate DBE participation. Race -neutral efforts
may include, but are not limited to, the following: '
1. Arranging solicitations, times for presentation of bids, quantities,
specifications, and delivery schedules in ways that facilitate DBE and
other small businesses;
2. Providing assistance in overcoming limitations such as inability to
obtain bonding or financing;
3. Providing technical assistance and other similar services;
4. Carrying out information and communications programs on contracting .
procedures and specific contract opportunities;
5. Assisting in supportive service programs to develop and improve
immediafe and long-term* busines91nanagement, record keeping, and
financial and accounting capability for DBEs and other small
businesses;
6. Assist DBEs and other small businesses improve long-term
development, increase opportunities to participate in a variety of kinds
of work, handle increasingly significant projects, and achieve eventual
self-sufficiency;
7. Participate in programs to assist new, start-up firms, particularly in
fields in which DBE participation has been historically low;
8. Facilitate distribution of the Agency's DBE data base through print and
electronic means to the widest feasible.universe.of potential prime
contractors; and
9. Assist DBEs and other small businesses to develop their capability to
utilize emerging technology and conduct business through electronic
media..
Santa Ckulta Redevelopment Agency DBE Program
46
END OF PLAN
1
Smit+ Caritn Redevelopment Agency DBE Program
47
Exhibit B
SANTA CLARITA REDEVELOPMENT -AGENCY -
NUMBER
ORIGINAL ISSUE EFFECTIVE
CURRENT ISSUE EFFECTIVE
SUPERSEDES
RESPONSIBLE DEPARTMENT: Executive Director's Office
PURPOSE
POLICY/PROCEDURE.. -
SUBJECT
Procurement Card Policy
CATEGORY
Procurement
STANDARD MANAGEMENT PROCEDURE
To safeguard the Agency's accounts and resources from possible theft or misuse.
POLICY
Appointing cardholders and approving officials
Procurement cards may only be issued to regular employees. Procurement cardholders and approving
officials will be approved by the department director or designee. The approving official will normally be
the cardholder's supervisor. Exceptions to this policy will be approved by the Executive Director or
designee,
Safeguarding the Procurement Card
Your procurement card should always be treated with great care, the same as your own personal credit
card. The only person entitled to use the procurement card is the person whose name appears on the face of
the card.
Lost or Stolen Procurement. Card
It is very important that cardholders secure them properly. Failure to promptly report a lost,
misplaced or stolen Cal Card could result in the Agency being held responsible for any charges incurred.
Commodity Guidelines
o The procurement card is intended only for official Agency business as outlined in this manual,
n The card will not be used to circumvent purchasing procedures and purchases will not be split. to
circumvent the requirements of this manual or purchasing policy.
13 The procurement card may not be used for personal use even if reimbursement is intended.
o The procurement card will not be used for non -travel related meals unless authorized by the Executive
Director or Department Director.
Approving officials/supervisors should carefully scrutinize cardholder purchases of food, electronic items
and any other item that may be easily convertible to personal use,
PROHIBITED ITEMS
The procurement card may not be used to purchase any of the following items unless approved by the
Department Director on the procurement card request form: .
Airline tickets
Alcoholic beverw es
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Ammunition
Art work
Car washes*
Cash Advancements
Computer Hardware/Software or peripheral purchases except IT Manager (or his/her designee)
Contractors, consultants, instructors or speakers
Gift cards
Ground transportation**
Hotels, motels, or other lodging
Medical services, drugs, narcotic drugs or medical supplies
Service agreements
Transit passes
Tuition Reimbursements
UPS registers
*except Vehicle Maintenance
**except Recreation
Placing Orders With Your Procurement Card
When involved in any aspect of purchasing, you are acting as an agent of the Santa Clarita Redevelopment
Agency and you. are responsible to act in the best interest of the Agency. Your actions must not show
personal favoritism to a merchant at the expense of the Agency.
Cardholders are required to properly document all procurement actions. This includes, but is not limited
to, recording all information on the transaction log and obtaining receipts for the items purchased. If a
receipt is not offered you must request one. Repeated failures to obtain and forward receipts may result in
loss of card privileges.
There are three types of transaction limits:
a Dollars per transaction (or single purchase limit) - maximum limit is normally $1000.00 (unless a lower
limit is requested).
a Monthly limit - limit set per card holder, at Department's discretion. This limit may be raised at the
request of the Division Manager and the approval of the Department Director.
o Merchant classification limit. This limit determines the types of merchants at which your card may be
used.
Your merchant restrictions are determined at the time your procurement card request is submitted.
You may contact the procurement card coordinator for further information.
Merchant Shipments
Procurement card orders must be shipped complete. If the merchant does not have all of the items in stock,
order only what is immediately available. You may order the balance on a separate transaction later when
the items are in stock.
Documenting Transactions
Proper documentation is one of your most important responsibilities. You are required to maintain the
following records and documentation:
n Procurement Card Transaction Log
o Receipts from transactions
Reconciling the Monthly Statement
Procurement card holders are required to substantiate all transactions shown on their monthly billing
statements, and edit the account code(s) for accurate cost accounting. Once the statement is received, you
have approximately one (1) week to complete your verification (if you will be unavailable to complete the
required review during this time, you are responsible for designating someone in your area to complete it in
your absence.
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The approving official is responsible for ensuring each purchase transaction is appropriate and approved
for payment. Please forward the completed statement and all of the back up documentation to Accounts
Payable for payment.
Returns and Billing Errors
Merchandise returns and billing errors are the cardholder's responsibility. Cardholders must communicate
with merchants to process returns, correct billing errors, and ensure the proper credit has been issued. In
most cases, returns and errors can be resolved directly between the cardholder and the merchant.
Billing Disputes
A dispute is the action taken by the cardholder to notify U.S. Bank that a specified charge(s) appearing on
the monthly statement is (are) an unauthorized transaction(s).
Extended Absence
If you will be absent from the Agency for an extended period, please seek assistance from the Program
Coordinator to determine the best options to cover your procurement card responsibilities.
Changes
If you change departments, contact the Program Coordinator to notify him/her of changes. Cards must be
returned to the Program Coordinator.
If you will need a card as part of your new responsibility, complete a new application and have it signed by
your approving official. If your approving official changes, contact the program coordinator.
Audits
To ensure the continued success of the procurement card program, your account number will be open to
internal audit requirements. Monthly review of your files may be conducted by the internal procurement
card team.
The procurement card program will also be included in the annual financial audit. Each audit will include
a review of the program and assistant program coordinator's card usage as well as a sample of overall
cardholders.
Enforcement
Statements Not Received — Contact the program coordinator if you do not receive a statement and have
charged items on your card.
Personal use of the Procurement Card - Personal use of the procurement card is NOT authorized under any
circumstances.
Resignation/Termination of Employment
You must return your procurement card to the Program Coordinator when you resign/terminate your
employment with the Santa Clarita Redevelopment Agency. Supervisors will collect the card as part of the
employee check-out process and return the cards to Purchasing.
Reports
There are information reports available to managers and approving officials. You are encouraged to contact
the program coordinator about your specific needs.
Timely Statement Submission
The Agency earns rebates based on the timeliness of our payments. These payments can't be made until
your statements have been reconciled and turned in to Accounts Payable for payment, Lengthy delays in
submitting statements may result in the suspension of all cards under your approving official.
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PROCEDURES
Appointing cardholders and approving officials
To obtain a procurement card, please use the following procedure:
Step
Action
Confirm with your supervisor they support your request for a procurement
1
card.
Obtain a procurement card request form and review with your supervisor. Fill
2
in the transaction and monthly limits. Have the supervisor fill in their name
2
and the office limits if they aren't already an approving official.
3
Submit the form to your department director or designee for approval.
Forward the approved form to the procurement card program coordinator.
4
Upon receipt of your card and training, sign and return your card
5
acknowledgment form (Appendix C.)
Safeguarding the Procurement Card
The following security measures should be taken to safeguard your procurement card:
o Do keep your procurement card in an accessible but secure location
o Do guard your procurement card account number carefully
o Do not post your procurement card account number at your desk or write it in any other place that is
accessible to others
o Do not lend your procurement card to another person
Lost or Stolen Procurement Card
To report a lost or stolen procurement card, please use the following procedure:
Step
Action
Notify U. S. Bank immediately at (800) 344-5696. Representatives are
1
available 24 hrs/day, 7 days/week. Provide the representative with requested
procurement card information and the card will be deactivated immediately
Notify Agency's procurement card Program Coordinator, U. S. Bank will
2
provide the Program Coordinator with a replacement card typically within 5-7
days.
Placing Orders With Your Procurement Card
The procurement card is a Visa card and can be used where Visa is accepted. The procurement card may
be rejected if:
o You have exceeded your individual transaction dollar limit
o You have exceeded your monthly transaction dollar limit
o Your procurement card has been canceled, or reported lost or stolen
o Your procurement card is being used for a purchase at an unauthorized merchant type.
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The procedure for placing orders with your procurement card is as follows:
Step
Action
1
Identify goods and services required to performjob-related task.
2
Determine if purchase is within your procurement card Authorization Limits
3
Ensure the items are not on the exception list (see page 5)
4
Obtain pricing, and record in log book (be sure to include tax and shipping).
5
Immediately record all other pertinent information in your procurement card
log book.
6
Retain all receipts, packing lists and shipping documents in a safe place until
you are ready to reconcile your monthly statement, as you will need to
forward these with your reconciled monthly statement.
Merchant Shipments
Please use the following procedure for merchant shipments:
Step
Action
1
Order item(s) or request service(s) that are immediately available. Do not
allow the merchant to make a partial shipment, backorder the balance, and
charge you for the total quantity.
2
Request the merchant mail you a copy of the sales receipt for each shipment.
3
Give the merchant complete shipping instructions, including your name, and
the shipping address (25650 Rye Canyon Rd, Santa Clarita, CA 91355-1103).
4
Request the merchant note on the outside of the package in bold letters
"ATTN: "Your Name". This will ensure the package gets forwarded
unopened, directly to you, and identified at the warehouse.
5
Inform the merchant they are NOT to write your procurement card
Cal Card number anywhere that will be visible to anyone other than
yourself.
6
Upon receipt of goods and services ordered, file your receipt, packing list and
shipping document in a safe place until you are ready to reconcile your
monthly statement, as you will need to forward these with your reconciled
monthly statement.
Documenting Transactions
The procurement card Transaction Log (see Appendix B) should be updated immediately each time you
make a purchase. The transaction log contains the following fields:
o Transaction/purchase date
o Receipt/Invoice #
o Description of purchase
o Merchant's name
o Account number
o Total Purchase Amount
o Notes
Be sure to save all receipts and packing slips in the log book for statement reconciliation at the end of each
month.
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Reconciling the Monthly Statement
Please use the following procedure to reconcile your procurement card transactions:
Step
Responsible
Required Action
Party
1
Cardholder
Crosscheck statement with transaction log.
Total procurement card transaction log and verify total
matches statement.
Sign and date procurement card transaction log.
2
Cardholder
Attach all original receipts and packing slips to the
statement (if original receipt is not available, a faxed copy
3
Cardholder
of the original is acceptable). If a receipt is not available or
misplaced, you must justify in writing. Repeated missing
receipts may result in a loss of card privileges.
3
Cardholder
Forward original procurement card statement, receipts and
transaction log to your approving official for signature.
4
Approving
Review the cardholder's purchase transactions to make
Official
sure the purchase was appropriate for Agency business and
5
Cardholder
is approved for payment. Verify there is a receipt for each
purchase transaction and sign the statement and
6
Cardholder
transaction log.
5
Approving
Forward signed procurement card statement with attached
Official
documentation to Accounts Payable for payment.
If you've made a purchase for a fund your approving official can't approve, you must get the .correct
approver's initials for that purchase in the margin of the logsheet.
Fraudulent Transactions
If, during your statement reconciliation, you determine there are transactions that appear to be fraudulent,
as opposed to merchant errors, there are additional actions to be taken. Please take the following actions:
Step
Responsible
Required Action
Party
1
Cardholder
Confirm that the information supports a determination of
fraudulent action. This means you have reason to believe
your procurement card information is being used by
another party to place unauthorized orders.
2
Cardholder
Immediately notify Finance and the Program Coordinator
in Purchasing of your findings.
3
Cardholder
DO NOT fill out the Cardholder Statement of Questioned
Item. Immediately call US Bank customer service at 800-
344-5696 to report the suspected fraud.
4
US Bank
The US Bank representative will forward you to the fraud
unit. Please make sure you note the fraud unit
representative's name. The fraud unit will take steps to
clear any fraudulent charges.
5
Cardholder
Circle the fraudulent charge and write "fraud" next to the
amount on your Statement of Account.
6
Cardholder
Deduct the fraud charge from the amount authorized for
7 1 Cardholder I Forward the statement containing any fraudulent
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with notation -.to.deduct the fraudulent charge, note -.the.
date reported to U.S. Bank, the name of the Customer
Service representative, indicate the account has been closed
and a new account was opened.
8 US Bank Upon notification of the suspected fraud, U. S. Bank will
send an affidavit to the Cardholder to certify the
fraudulent charges.
9 Cardholder Upon receipt you must immediately sign and return the
affidavit to U.S. Bank.
10 US Bank If the affidavit is not returned, U.S. Bank will reverse the
credits issued for the fraudulent charges and the charges
become due and navable.
Returns and Billing Errors
Use the following procedure to handle returned items:
Step
Action
1
Contact the merchant that provided the item/service to discuss the
problem and agree to a solution. (For billing errors not involving a
return, skip to Step 5).
2
Request return instructions and/or obtain a Returned Materials
Authorization (RMA) number from your merchant.
3
Package and ship product back to merchant. Put RMA number on
inside and outside of package.
4
Obtain a mailing or shipping receipt for the. package. This will be
4
needed in case the merchant does not process the credit promptly.
5
Verify that credit has been processed on the next monthly statement,
Billing Disputes
Because you, the cardholder, are the closest person to the transaction, you should resolve dispute issues
first with the merchant. Typically, most issues can be handled at this level with the merchant placing a
credit on your procurement card account. If unsuccessful at resolving the issues with the merchant, you
may open a Customer Dispute using the following procedure:
Step
Action
1
When reconciling your monthly statement, dispute the charge in
question on the statement, then complete the disputed item form
(appendix C).
2
Forward one copy of the form with your statement, fax or mail one
copy to the address on the form and retain one copy for your records.
3
Call the merchant and attempt to resolve the problem. If you are
unable to reach an agreement with the merchant contact the program
coordinator.
4
The charge will not be paid by A/P. It is carried on the books until a
credit is received from the merchant. The credit received is not
processed by A/P. The program coordinator matches the credit to the
charge on the overdue report.
U. S. Bank Customer Service
LA #4815-4074-9573 v 1
are available 7
(800) 344-5696
(this number is also located on the back of your Cal Card). When calling U. S. Bank, it is necessary to
identify the program that the Agency uses.
If you have any problems working with U.S. Bank personnel, please contact the program coordinator
Leaving Agency Employment
If you leave Agency employment your procurement card must be returned to Purchasing. Please use the
following procedure:
Step
Responsible
Required Action
Party
1
Cardholder
Turn in your procurement card to your supervisor prior to
our last work day.
2
Supervisor
Obtain employees procurement card prior to completing the
supervisor portion of the employees check out form and
turn card in to Purchasing.
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EXCEPTION
Exceptions to this policy may be authorized by the Executive Director or designee.
AUTHORITY
By order of the Executive Director.
Kenneth R. Pulskamp, Executive Director
Attachments: Appendix A — Who to Call
Appendix B — Procurement Card Logsheet
Appendix C — Receipt of Procurement Card Memo
LA #4815-4074-9573 vl
The Procurement Card Policy
Appendix A
Who To Call
- Santa Clarita Redevelopment Agency
U. S. Bank
LA #4815-4074-9573 vl
Procurement Card Program Coordinator
Jon Bischetsrieder
Tel.: (661) 286-4184
Fax: (661) 286-4186
Email: 'i bischetsriedeaCi�santa-cl�uita.com_
Assistant Procurement Card Program Coordinator
Jennifer Killian
Tel.: (661) 286-4193
Fax: .(661) 286-4186
Email: ikillian(%',s_iTit _clai ita.com
Billing Office Coordinator - Finance
Aruna Patel
Tel.: (661) 255-4377
Fax: (661) 284-1435
Email:
Customer Service: (800) 344-5696
Lost/Stolen Card: (800) 344-5696
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SANTA CLARITA REDEVELOPMENT AGENCY
INTEROFFICE MEMORANDUM
TO: Jon Bischetsrieder, Purchasing Agent
FROM:
DATE:
SUBJECT: RECEIPT OF PROCUREMENT CARD AND
s
EMENT CARD POLICY
By signature below I acknowledge receipt of a Agency prLocuIrement card
reference binder. I have read and understand the Procurement Card Po
be used for non -Agency purchases or cash advances The card is to be
and is not to be used by anyone but myself.:°
SignatL --
LA 04815-4074-9573 v
procurement card
The card is not to
erly safeguarded
Appendix C
Page 12
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1
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Exhibit C
,SANTA CLARITA REDEVELOPMENT. AGENCY I POLICYIPROCEDURE
NUMBER
ORIGINAL ISSUE EFFECTIVE
CURRENT ISSUE EFFECTIVE
SUPERSEDES
RESPONSIBLE DEPARTMENT: ADMINISTRATIVE
SERVICES
PURPOSE
SUBJECT
ENVIRONMENTALLY PREFERABLE
PURCHASING PROGRAM
CATEGORY:
ADMINISTRATION
STANDARD MANAGEMENT PROCEDURE
The.pur-pose is. of this Standard Management Procedure is to establish the procedures to be, followed for the
purchasing of services, supplies, or equipment in the most sustainable manner.
POLICY
SUSTAINABLE SANTA CLARITA REDEVELOPMENT AGENCY
ENVIRONMENTALLY PREFERABLE PURCHASING PROGRAM
SECTION 1.0 STATEMENT OF POLICY
It is the policy of Santa Clarita Redevelopment Agency to:
0 purchase products that minimize environmental impacts, toxins, pollution, and hazards to worker and
community safety to the greatest extent practicable,
0 institute practices that reduce waste and minimize environmental impacts -whenever practicable and cost-
effective by increasing product efficiency and effectiveness, but without reducing safety or workplace quality
while promotingthe fair treatment of all races, cultures and incomes with respect to this policy,
0 purchase products that include recycled content, are durable and long-lasting, conserve energy and water, use
agricultural fibers and residues, reduce greenhouse gas emissions, use unbleached or chlorine free manufacturing
processes, are lead-free and mercury -free, and use wood from sustainably harvested forests,
0 adopt Environmentally Preferable Purchasing (EPP) processes in support of the Agency's Sustainability Plan,
and
0 encourage vendors, contractors and grantees to implement this program for all products and services provided to
Santa Clarita Redevelopment Agency.
SECTION 2.0 - PURPOSE
This Program is adopted in order to:
0 conserve natural resources,
0 minimize environmental impacts such as pollution and use of water and energy,
0 eliminate or reduce toxins that create hazards to workers and our community,
0 support strong recycling markets,
0 reduce materials that are landfilled,
0 identify environmentally preferable products and distribution systems,
0 increase the use and availability of environmentally preferable products that protect the environment,
0 reward manufacturers and vendors that reduce environmental impacts in their production and distribution
systems,
0 create a model for successfully purchasing environmentally preferable products that encourages other purchasers
in our community to adopt similar goals.
SECTION 3.0 - SPECIFICATIONS
3.1 Source Reduction
3. 1.1 Santa Clarita Redevelopment Agency shall institute practices that reduce waste and result in the purchase
of fewer products whenever practicable and cost-effective, but without reducing safety or workplace quality,
including but not limited to:
0 electronic communication instead of printed media,
0 double -sided photocopying and printing,
0 washable and reusable dishes and utensils,
0 rechargeable batteries,
0 streamlining and computerizing forms,
0 electronic and 'online" publishing via CD, Internet and intranet,
0 "on -demand" printing of documents and reports as they are needed and where electronic publishing
would be unsatisfactory,
0 leasing long -life products when service agreements support maintenance and repair rather than new
purchases, such as carpets,
0 sharing equipment and occasional use items such as chippers,
0 choosing durable products rather than disposable,
0 reducing product weight or thickness when effectiveness is not jeopardized in products such as, but not
limited to, paper and plastic liner bags,
0 buying in bulk, when storage and operations exist to support it and balanced with the costs of inventory
management,
0 reusing products such as, but not limited to, file folders, storage boxes, office supplies, and' furnishings.
3.1.2 Santa Clarita Redevelopment Agency shall purchase remanufactured products such as laser toner
cartridges, tires, furniture, equipment and automotive parts and fluids whenever practicable, but without
reducing safety, quality or effectiveness.
3.1.3 Santa Clarita Redevelopment Agency shall require all equipment bought after the adoption of this program
to be compatible with source reduction goals and practices when practicable, including but not limited to:
1
1
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1
copiers and printers capable of duplexing,
0 battery-operated equipment capable of being recharged or using rechargeable batteries,
0 dishwashing equipment, when washable and reusable dishes and utensils are practicable,
0 bulk storage and operation.
3.1.4 All buyers shall evaluate short-term and long-term costs in comparing product alternatives, when feasible.
This includes consideration of total costs expected during the time a product is owned, including, but not limited
to, acquisition, extended warranties, operation, supplies, maintenance, disposal costs and expected lifetime
compared to other alternatives. Examples of products for which such cost comparisons can indicate significant
differences between short- and long-term costs include, but are not limited to, janitorial towels and tissues,
parking stops, park benches and tables, office equipment, software and vehicles.
3.1.5 Products that are durable, long lasting, reusable or refillable are preferred whenever feasible
3.2 Recycled Content Products
3.2.1 A significant element of reducing waste contributions to landfills is recycling. Recognizing the impact of
government spending on stimulating the recycling industry, the State has imposed requirements on the
procurement of recycled products by local agencies. The California Public Contract Code (PCC) Sections 22150-
2215.4:outline:these,requirements. The=Agency,will„give preference;to:buying�the.recycled-content,products as
outlined in the PCC whenever recycled products are available at the same or lesser cost and fitness and quality
are equal. Also in accordance with the PCC, the Agency will require the vendor to certify the recycled content of
the products being provided.
3.2.2 Agency staff shall strive to incorporate the requirements the U.S. EPA has established for various materials,
such as those for construction, landscaping, parks and recreation, transportation, vehicles, miscellaneous, and
non -paper office products. The programs are known as the Comprehensive Procurement Guidelines (CPG) and
Recovered Materials Advisory Notice (RMAN). These programs are updated periodically to identify categories
of material for which there are recycled content alternatives and the recommended recycled contents.
3.2.3 Janitorial paper products shall contain the highest postconsumer content practicable, but no less than the
minimum recycled content standards established by the U.S. EPA Guidelines.
3.2.4 Printing paper, office paper, and paper products shall contain the highest postconsumer content practicable,
but no less than the. minimum recycled content standards established by the United States Environmental
Protection Agency (U.S. EPA) Guidelines (see Definitions).
3.2.5. Copiers and printers bought shall be compatible with the use of recycled content products. When necessary,
suppliers shall train equipment maintenance personnel in the appropriate use of recycled products with their
equipment.
3.2.6 In accordance with California Public Contract Code, Sec. 10409, Santa Clarita Redevelopment Agency
shall purchase recycled lubricating and industrial oil for use in its vehicles and other equipment, as long as it is
certified by the American Petroleum Institute (API) as appropriate for use in such equipment (see h1W-.//api-
gp.a-pi.or /g guality/index.cfm for information about API's Engine Oil Licensing and Certification System).
3.2.7 When specifying asphalt concrete, aggregate base or portland cement concrete for road construction
projects, Santa Clarita Redevelopment Agency shall use recycled, reusable or reground materials when
practicable, including, but not limited to, in-place recycling of asphalt concrete; aggregate base and portland
cement concrete; rubberized asphalt concrete; recycled aggregate base; recycled fly ash content concrete or
recycled asphalt concrete.
3.2.8 Santa Clarita Redevelopment Agency shall specify and purchase recycled -content transportation products,
including signs, cones, parking stops, delineators, and barricades, including recycled products approved by the
California Department of Transportation (Caltrans).
3.2.9 Santa Clarita Redevelopment Agency shall specify and purchase carpet with 100% total recycled PVC
backing, solution dyed nylon face fiber and permanent or durable anti -microbial treatment. In addition, the
Agency should aim for producer responsibility for accepting old carpet for recycling to ensure future needs for
carpet replacement will include the recycling of old carpet.
3.3 Forest Conservation
3.3.1 To the greatest extent practicable, Santa Clarita
shall not procure wood
such as'lumber and paper that originate from forests harvested in an, environmentally unsustainable manner.
When possible, Santa Clarita Redevelopment Agency shall give preference to wood products that are certified to
be sustainably harvested by a comprehensive, performance-based certification system, such as the Forest
Stewardship Council. Further guidance may be found in the Santa Clarita Redevelopment Agency's Hardwood
resolution..
3.4 Toxins and Pollution
3.4.1 When replacing vehicles, regular diesel shall be phased out and replaced with less polluting alternatives
such as low sulfur or bio -diesel, gasoline, compressed natural gas, biobased fuels, hybrids, hydrogen fuel cells
and electric batteries.
3.4.2. To the extent practicable, no cleaning or disinfecting products (i.e. for janitorial or automotive use) shall
contain ingredients that are eye or skin irritants, neurotoxins, carcinogens, mutagens, or teratogens. These
include chemicals listed by the U.S. EPA or the National Institute for Occupational Safety and Health.on the
Toxics Release Inventory and those listed under Proposition 65.by the California Office of Environmental
Health Hazard Assessment. If products must be used that contain these toxic materials, ensure that only the
minimum amounts are used and the product is disposed of properly (see Definitions). To the extent practicable,
cleaning or disinfecting products should include biodegradability, be in concentrated form, be non -aerosol and
have a recyclable container made of plastic numbers 1 or 2.
3.4.3 .The use of chlorofluorocarbon -containing refrigerants, solvents and other products shall be phased out and
new purchases shall not contain them.
3.4:4 All surfactants arid' detergents shall be readily biodegradable and, where practicable, shall not contain
phosphates.
3.4.5 All interior paint shall contain the lowest concentrations practicable of volatile organic compounds
(VOCs), but as a minimum shall not exceed 50 grams VOC per liter (50g/1) for flat paint and 150 grams per liter
(150g/1) for non -flat paints, as determined in accordance with U.S. EPA Test Method 24, CFR Title 40, Part 60,
Appendix A. For exterior paints, preference shall be given to paints containing at least 50 percent recycled
content (post-industrial and postconsumer) and/or VOC concentrations less than 150g/l (U.S. EPA Test Method
24). All adhesives shall meet South Coast Air Quality Management District Rule 1168.
3.4.6 Santa Clarita Redevelopment Agency shall reduce or eliminate its use of products that contribute to the
formation of dioxins and furans. This includes, but is not limited to:
0 Purchasing paper, paper products, and janitorial paper products that are unbleached or that are
processed without chlorine or chlorine derivatives, whenever possible. Processed chlorine free (PCF)
paper is preferred. Elemental chlorine free'(ECF) processes should include enhanced processes such as
extended and oxygen delignification whenever possible. Vendors and successful bidders shall supply
certification of the paper's chlorine free processing status from either a recognized certifying
organization or the pulp and paper manufacturer.
0 Prohibiting purchase of products that use polyvinyl chloride (PVC) such as, but not limited to, binders,
flooring, and medical supplies whenever practicable.
3.4.7 Santa Clarita Redevelopment Agency shall purchase products and equipment with no lead or mercury
whenever possible, including automotive vehicles, equipment and lighting. For products that contain lead or
mercury, Santa Clarita Redevelopment Agency shall give preference to those products with lower quantities of
these metals and to vendors with established lead and mercury recovery programs.
3.4.8 To facilitate the reprocessing of paper waste the Agency shall call for the use of soy/vegetable based inks
for all printing. Graphics will continually monitor industry trends towards more environmentally friendly inks.
3.5 Energy and Water Savings
3.5.1 Where applicable, energy-efficient equipment shall be purchased with the most up-to-date energy efficiency
functions. When necessary, suppliers or manufacturers shall train equipment operators and maintenance
personnel in the proper enabling and use of energy efficient and sleep mode functions on their equipment. New
and replacement equipment/fixtures will incorporate the requirements of this section.
3.5.2 When practicable, Santa Clarita Redevelopment Agency shall replace inefficient lighting with energy
efficient equipment. Incandescent, mercury vapor and T12 fluorescent lamps should be replaced with compact
fluorescent lamps, high-intensity discharge (HID) fixtures and low -mercury T8 or T5 fluorescent lamps. The
magnetic ballasts used in older fluorescent lighting should be replaced with electronic ballasts. New lighting
should be designed to use no more than 85% of the power allowed by Title 24 Energy Code. Purchasers shall
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require vendors to recycle dismrded'lighting fixtures and lamps -appropriately, with an empha§is on lowering
mercury levels in energy efficient lighting.. Staff will continue to investigate technologies that reduce the energy
requirements of existing lighting such as sensors, timers and frequency regulators.
3.5.3 All appliances purchased by Santa Clarita.Redevelopment Agency and for which the U. S. EPA Energy
Star certification is available shall meet Energy Star certification. Typically, this would include motors/pumps,
exhaust fans, water heaters, computers, exit signs, water coolers and appliances such as refrigerators,
dishwashers and microwave ovens.
3.5.4 When Energy Star labels are not available, choose energy efficient products that are in the upper 25% of
energy efficiency as designated by the Federal Energy Management Program.
3.5.5 Wherever Santa Clarita Redevelopment Agency replaces roofs, Energy Star -qualifying roof materials shall
be used.
3.5.6 Santa Clarita Redevelopment Agency shall purchase high efficiency space heating systems that use natural
gas rather than electricity, and have an annual fuel utilization efficiency (AFUE) of 0.86 or greater, whenever
practicable
3.5.7 Santa Clarita Redevelopment Agency shall purchase high efficiency space cooling equipment with an
energy efficiency rating (EER) of 11.5 or greater, whenever practicable.
3.5.8 Santa Clarita Redevelopment Agency shall purchase water -saving products whenever practicable.
3.6 Green Building - Construction and Renovations
3.6.1 Proposals for project design will include fundamental building systems commissioning services (preferably
independent of the design team) for independent review of plans and designs, participation in design charettes, to
ensure building systems function as designed, to review outstanding commissioning issues within one year of
project completion, and provide building operations/maintenance staff training and a building systems manual.
3.6.2 All building and renovations undertaken by Santa Clarita Redevelopment Agency shall follow Green
Building practices for design, construction, and operation, as specified in the appropriate US Green Building
Council Leadership in Energy and Environmental DesignTM (LEED) criteria.
3.6.3 All newly constructed Santa Clarita Redevelopment Agency -sponsored buildings shall incorporate
sufficient green building methods and techniques to qualify for the equivalent of a LEEDTM Rating System Silver
certification (see Definitions).
3.6.4 Renovation of Santa Clarita Redevelopment Agency -sponsored buildings shall achieve as many pre-
requisites and credits as feasible as described in the LEEDTM Rating System for Existing Buildings Pilot Phase
and any subsequent version adopted (see Definitions).
3.6.5 Santa Clarita Redevelopment Agency shall work with residents, businesses, and other members of the
community, including architects, builders and contractors, to encourage private development within the Agency
to use green building methods and practices and to achieve standards set by LEEDTM for commercial buildings
and the in consultation with appropriate Agency departments.
3.7 Waste Minimization
3.7.1 Santa Clarita Redevelopment Agency requires vendors to eliminate packaging or use the minimum amount
necessary for product protection, to the greatest extent practicable.
3.7.2 Packaging that is reusable, recyclable or compostable is preferred, when suitable uses and programs exist.
3.7.3 Vendors shall be encouraged to take back and reuse pallets and packaging materials.
3.7.4 Suppliers of electronic equipment, including but not limited to computers, monitors, printers, and copiers,
shall be required to take back equipment for reuse or environmentally safe recycling when Santa Clarita
Redevelopment Agency discards or replaces such equipment, whenever possible.
3.8 Landscaping
3.8.1 Workers and contractors providing landscaping services for Santa Clarita Redevelopment Agency shall
employ sustainable landscape management practices whenever possible, including:
0 The use of Integrated Pest Management (IPM), including minimal pesticide use is encouraged.
13 Grasscycling (leaving the clippings on the lawn) or mulching mowers is required for at least 50% of all
mowings.
0' Pruning shall be done on an as needed basis.'Thinning is the'preferred method of pruning. Minimal
heading or shearing is encouraged.
0 Fertilizing should be done on an as needed basis, as indicated by a soil analysis. Slow release and/or
organic fertilizers are preferred.
13 Irrigation scheduling based on weather (evapo-transpiration rates) is required whenever possible. Drip
irrigation is preferred whenever practical.
El Turf areas where drip irrigation is not appropriate should be limited to walking and play surfaces. All
other landscaping (such as for views) should be accomplished with low-water plantings.
a Recycling of plant debris by composting and/or maintaining a minimum 2 -inch layer of mulch under all
trees, shrubs and groundcovers and a minimum 3 -inch -layer in all open areas is strongly encouraged.
Allowing leaf drop to become part of the mulch layer in tree, shrub and groundcover areas is preferred.
3.8.2 Plants should be selected to minimize waste by choosing species that are appropriate to the microclimate,
species that can grow to their natural size in the space allotted them and perennials rather than annuals for color.
Native and drought -tolerant plants that require no or minimal watering once established are preferred.
3.8.3 To the greatest extent practicable, Santa Clarita Redevelopment Agency shall not procure mulch products
that originate from'forest products. When -possible; Santa°Clarita'Redevelopment Agency shall give preference to
mulch products that are produced on-site or from regionally generated plant debris.
3.8.4 To the greatest extent practicable, Santa Clarita Redevelopment Agency shall procure compost that is
produced from feedstock that includes at least 50%, by volume, regionally generated plant debris and/or food
waste and less than 0.5% by volume, physical contaminants. The compost shall be processed in accordance with
California Code of Regulations, Title 14, Chapter 3, Article 7, Sections 17868.2-3 to promote pathogen reduction
and weed seed kill and minimize heavy metal concentrations.
3.8.5 Hardscapes and landscape structures constructed of recycled content materials are encouraged. Concrete
substitutes are encouraged for walkways, such as rosin emulsion paving.
3.9 Agricultural Bio -Based Products
3.9.1 Vehicle fuels made from non -wood, plant -based contents such as vegetable oils are encouraged whenever
practicable.
3.9.2 Paper, paper products and construction products made from non -wood, plant -based contents such as
agricultural crops and residues are encouraged whenever practicable.
3.10 Electronics
3. 10.1 As technology advances have brought about an exponential increase in the manufacture of electronic.
items, the impact of obsolescence caused waste -has been significant. Changing technology has brought the life
expectancy of some items down to as little as two years. Additionally, current electronics manufacture is
resource intensive and involves some toxic materials such as heavy metals. A maximum preference of 5% of
price or 5% of the total points possible may be awarded for vendor products meeting any of the criteria specified
in 3.10.2 through 3.10.4.
3.10.2 Electronic equipment procurement policies shall seek to preserve resources by reducing the purchase
frequency and pursuing upgrade opportunities to the extent feasible. Items containing more than 20% recycled
material by content may qualify for a preference.
3.10.3 Acquisitions for electronic equipment should include "take back" provisions. Vendors shall be required
to accept replaced equipment for recycling and proper disposal. Where possible, acquisitions shall require
vendor to accept equipment back for recycling and proper disposal when it has reached the end of its useful life
or is no longer working.
3.10.4 To assist in managing a rapidly changing technology, the Environmental Protection Agency (EPA)
encouraged the development of a certification standard for sustainable electronic equipment, beginning with
personal computers, under a grant to the Green Electronics Council. This program evolved into the Electronic
Product Environmental Assessment Tool (EPEAT). In January of 2007 Executive Order 13423 required all
federal agencies to purchase at 95% of all electronics from the EPEAT list of registered products unless there was
no standard available for the equipment purchased. Recognizing that electronics is one of the fastest growing
sources of hazardous waste, the Agency will purchase at least 95% of all electronic products from the list of
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EPEAT'registered equipment where there exists an EPEAT standard. Further, the' Agency will make atleast
85% of its purchases from the Silver level tier or above.
3.10.5 Specifications for electronic equipment shall give preference to equipment manufactured with less toxic
components or processes.
3.10.6 Upon installation, electronic equipment will have all energy management features activated as the default
setting.
SECTION 4.0 - DEFINITIONS
"Agricultural Bio -Based Products" means commercial or industrial products (other than food or feed) that utilize
agricultural crops or residues but does not include products made from forestry materials.
"Buyer" means anyone authorized to.purchase on behalf of this jurisdiction. or its subdivisions.
"Chlorine free" means.products processed without chlorine or chlorine derivatives.
"Contractor" means any person, group of persons, business, consultant, designing architect, association,
partnership, corporation, supplier, vendor or other entity that has a contract with Santa Clarita Redevelopment
Agency or serves in a subcontracting capacity with an entity having a contract with Santa Clarita Redevelopment
Agency for the provision. of goods or services.
"Dioxins and furans" are a group of chemical compounds that are classified as persistent, bioaccumulative, and
toxic by the..Environmental Protection Agency.
"Elemental Chlorine Free" (ECF) bleaching processes replace elemental chlorine gas with a chlorine derivative
as the bleaching agent. There is a wide range of different bleaching sequences covered under this term. While all
ECF processes significantly reduce.the amount of dioxins created in the bleaching process, those that include
enhanced processes such as extended and oxygen delignification achieve the greatest reduction.
"Energy Star" means the U.S. EPA's energy efficiency product labeling program described at
htti)://www.energystar.gov.
"Energy Efficient Product" means a product that is in the upper 25% of energy efficiency for all similar products,
or that is at least 10% more efficient than the minimum level that meets Federal standards.
The "Forest Stewardship Council" is a global organization that certifies responsible, on -the -ground forest
management according to rigorous standards developed by a broad variety of stakeholder groups
(hqp://fscus.or /h� tml/).
"LEED" Rating System" means the self -assessing system, Leadership in Energy and Environmental Design,
developed by the U.S. Green Building Council designed for rating new and existing commercial, institutional,
and high-rise residential buildings. Credits are earned for satisfying defined criteria and standards. Different
levels of green building certification are awarded based on the total credits earned. The LEEDTM Green Building
Rating System is described at h=://www.us bg c.org.
"Postconsumer Material" means a finished material which would normally be disposed of as a solid waste,
having reached its intended end-use and completed its life cycle as a consumer item, and does not include
manufacturing or converting wastes.
"Practical" and "Practicable" mean whenever possible and compatible with state and federal law, without
reducing safety, quality, or effectiveness.
"Preconsumer Material" means material or by-products generated after manufacture of a product is completed
but before the product reaches the end-use consumer. Preconsumer material does not include mill and
manufacturing trim, scrap, or broke which is generated at a manufacturing site and commonly reused on-site in
the same or another manufacturing process.
"Processed Chlorine Free (PCF)" refers to a recycled product in which the recycled content is produced using no
chlorine or chlorine derivatives. Any virgin content in the product must also be produced in a chlorine free
system.
"Proposition 65" means a list of chemicals that are known to the State of California to cause cancer, birth defects
or other reproductive harm. The list is maintained by the California Office of Environmental Health Hazard
Assessment(http://www.oehha.ca.gov/prop65.html).
"Recovered Material" means fragments of products or finished products of a manufacturing process, which has
converted a resource into a commodity of real economic value, and includes preconsumer and postconsumer
material but does not include excess resources of the manufacturing process.
"Recycled'Content" means-the,percentage of recovered material, including preconsumer and postconsumer
materials, in a product.
"Recycled Content Standard" means the minimum level of recovered material and/or postconsumer material
necessary for products to qualify as "recycled.products."
"Recycled Product" means a product that meets Santa Clarita Redevelopment Agency's recycled content policy
objectives for.postconsumer and recovered material.
"Remanufactured Product" means any.product diverted from the supply of discarded materials by refurbishing
and marketing said product without substantial change to its original form.
"Reused Product" means any product designed to be used many times for the same or other purposes without
additional processing except for specific requirements such as cleaning, painting or minor repairs.
"Source Reduction" refers to products that result in a net reduction in the.generation of waste compared to their
previous or alternate version and includes durable, reusable and remanufactured products; products with no, or
reduced, toxic constituents; and products marketed with no, or reduced, packaging.
"Title 24" means the State of California's energy efficiency standards for residential and nonresidential buildings
(Title 24, Part 6) maintained by the California Energy Commission and described at
hqp://www.energy.ca.izov/title24.
The "Toxics Release Inventory" (TRI) is a publicly available U. S. EPA database that contains information on
toxic chemical releases and other waste management activities reported annually by certain covered industry
groups as well as federal facilities: ttincludes- chemicals that are°classified as carcinogens under the requirements
of the Occupation Safety and Health Administration (OSHA) Lists can be obtained from
http://www.epa.gov/tri/chemical/index.htm.
"U.S. EPA Guidelines" means the Comprehensive Procurement Guidelines established by the U.S.
Environmental Protection Agency for federal agency purchases as of May 2002 and described at
hiip://www.epa.gov/epaoswer/non-hw/procure/12roducts.htm, or as updated.
"Water -Saving Products" are those that are in the upper 25% of water conservation for all similar products, or at
least 10% more water -conserving than the minimum level that meets the Federal standards.
SECTION 5.0 - PRIORITIES
5.1 The health and safety of workers and citizens is of utmost importance and takes precedence overall other
policies.
5.2 The Santa Clarita Redevelopment Agency considers sustainability to be the foundation of lasting quality of
life improvement programs. Environmentally Preferred Purchasing is a key step in leading the business
community and residents towards that goal.
5.2 Santa Clarita Redevelopment Agency has made significant investments in developing a successful recycling
system and recognizes'that recycled content products are essential to the continuing viability of that recycling
system and for the foundation of an environmentally sound production system. Therefore, to the greatest extent
practicable, recycled content shall be included in products that also meet other specifications, such as chlorine
free or bio -based.
5.3 Nothing contained in this program shall be construed as requiring a department or contractor to procure
products that do not perform adequately for their intended use, exclude adequate competition, or are not
available at a reasonable price in a reasonable period of time.
5.4 Nothing contained in this program shall be construed as requiring the Santa Clarita Redevelopment Agency,
department or contractor to take any action that conflicts with state or federal requirements.
SECTION 6.0 - IlOPLEMENTATION
6.1 Environmental Services shall help departments implement this program through development of an advisory
committee consisting of members representing Environmental Services, Purchasing, Information Technology,
and each department. The team's responsibilities shall include, but are not limited to:
0 evaluating opportunities for substituting environmentally preferable products,
0 designing and implementing programs and processes for increasing the purchase of environmentally
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0 educating managers and staff about Santa Clarita Redevelopment Agency's Environmentally Preferable
Purchasing Program,
0 ensuring that purchasing documents, specifications, and contracting procedures do not contradict each
. other and do not deter or inhibit the purchase of environmentally preferable products,
0 providing information to facilitate the evaluation and purchase of environmentally preferable products,
including identifying appropriate products and sources and providing technical assistance,
0 evaluating obstacles to purchasing such products in order to create solutions, and.
0 tracking and recording progress in achieving successful results.
6.2 In compliance with State law, vendors shall be required to specify the minimum or actual percentage of
recovered and postconsumer material in their products, even when such percentages are zero.
6.3 Vendors and successful bidders shall verify and report any environmentally preferable purchasing attributes
in writing. This requirement for certification applies to products for which the vendor or successful bidder claims
such attributes as apply to the product, including, but not limited to, recycled content, chlorine free, non-toxic,
reduced toxicity, sustainable- forestry,and energy-saving features.
6.4 Buyers making the selection shall provide a written explanation for not selecting product choices that meet
the environmentally preferable purchasing criteria in this policy. Such written explanations shall be filed with the
Purchasing Agent within 15 days of making the product choice (see Attachment for sample procurement
determination form).
6.5 All contracts and grants providing services or products to the Santa Clarita Redevelopment Agency shall
adhere to the guidelines stated in this program to the extent possible.
SECTION 7.0 - PROGRAM EVALUATION AND MEASUREMENT
7.1 Environmental Services shall institute a system for tracking the purchases of environmentally preferable
products. Whenever practicable, vendors will be required to provide reports on their sales of environmentally
preferable products to assist Santa Clarita Redevelopment Agency in this tracking.
7.2 Each Department will report EPP procurements to the Environmental Services Manager each quarter. The
reports will identify the type of commodity purchased, the dollar value and the qualifying attributes of the
commodity.
7.3 The Environmental Services Manager shall provide a narrative report annually to the Agency Board on the
success of this policy's implementation. To the extent practicable, such report shall include information on the
annual volume and dollar amount of environmentally preferable products purchased compared to the total
amount of products purchased, within general product categories. When possible, reports shall include a
narrative evaluation of the performance, safety, and environmental benefits achieved through use of the
environmentally preferable products purchased. Reports should relate progress in meeting the objectives of this
Policy as stated in Sections 1.0 and 2.0 and in accordance to the Specifications categories used in this Policy.
This report will become one element of the Agency's Sustainability Program to be shared with the community.
The report will also be included in quality of life evaluations.
7.4 Reports shall include notation of any barriers encountered in procurement of environmentally preferable
products, recommendations for resolution, and/or description of assistance needed for overcoming the obstacles.
SECTION 8.0 - EFFECTIVE DATES
8.1 This policy shall take effect on September 1, 2010.
8.2 The first annual report shall be issued within one year following the effective date of this policy
EXCEPTION
Exceptions to this policy may be authorized by the Agency Board.
EFFECTIVE DATE
This policy will be implemented, effective September 1, 2010.
AUTHORITY
Adopted by the Agency Board on July 13, 2010.
Kenneth R. Pulskamp, Executive Director
Attachment
ATTACHMENT A
Sample Procurement Determination Form
Item:
This item is required to meet Environmentally Preferable Purchasing -guidelines as described in Resolution
XX=XX.
I have considered the Environmentally Preferable Purchasing guidelines and searched for product or service
options that meet them.
Compliance with Resolution XX -XX was not attainable for this purchase because:
Item is not available within a reasonable period of time.
(Need date: Date available: )
Item fails to meet a performance standard in the specifications.
Specifically,
Item is not available, or is not available from 2 or more sources.
Market research was performed by calling (insert number) vendors, but only
(enter name) was able to supply the item.
Item was only available at an unreasonable price (i.e., EPP item cost more than non-compliant item).
Price of EPP item:
Price of non-compliant item:
_ Compliance would conflict with state or federal law requiring that:
Signature of Purchaser
Printed Name of Purchaser
Date
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Exhibit D
SANTA CLARITA REDEVELOPMENT AGENCY
Standards of Conduct for Procurement Staff
In recognition of the special trust inherent in Procurement Staff positions charged with guiding
the expenditure of public funds, the highest standards of conduct are considered essential.
These expectations are reflected in the Standards of Conduct established by this policy and are
applicable to all city employees assigned to Purchasing under the supervision of the Purchasing
Agent.
The California Code of Regulations and State Government Code provide basic guidance
regardind. financial conflicts of interest. The intent of this policy is to supplement the financial
conflict of interest regulations with broader standards of conduct -and cover procurements
involving federal funds.
POLICY
All conflict of interest regulations as stated in the California Code of Regulations and
Government Code are considered an integral part of this policy. No part of this policy will alter
or supersede any portion of the Agency or State guidance on conflict of interest. All
requirements of this policy are additive to the Agency and State guidance.
In order to prevent the perception of favoritism, all administrative processes will be followed
diligently, consistently and openly.
One of the primary responsibilities of public servants is the protection of public confidence and
trust in the integrity of governmental processes. Any conduct which may detract from this. trust
is prohibited. The mere appearance of a conflict of interest may result in the same damage to
public trust in government as actual wrongdoing. Action or inaction that results in the
"appearance" of conduct prohibited by this policy is also prohibited.
DEFINITIONS
Financial interest — Financial interest will be the same as defined in the.Statement of Economic
Interest Form 700.
Immediate family member — Parents, siblings, spouse or partner, parents and siblings of spouse
or partner and children.
Organizational conflict of interest — Organizational conflicts may result in bias or unfair
competitive advantage. An organizational conflict of interest occurs where - because of other
activities, financial interests, relationships, or contracts — an employee 'or contractor is unable, or
potentially unable, to render impartial assistance or advice to the Agency, the employee or
contractor's objectivity in performing work is or might be impaired, or a contractor has an unfair
competitive advantage.1 2
1 - Generally, an organizational conflict arises because a person or entity has -or appears to have loyalties to, or a
financial interest in, two organizations that may have competing or differing interests from each other -- one of them
being the grantee. For example, an organizational conflict would arise if an employee or a consultant serves as a
member of a public or quasi -public body with regulatory authority over a project or has a stake in its outcome. This
Personal conflict of interest - A personal conflict of interest arises when an employee or
immediate family member has a financial interest in a firm selected, or competing, for a contract.
A personal conflict of interest also arises where any employee solicits or accepts gifts,
gratuities, favors, or anything of monetary value from a firm under contract or potentially seeking
a contract. In addition, a personal conflict of interest arises where any such person uses his
position, or non-public information gained during his work for the Agency, for personal gain,
including gain inuring to an immediate family member.
Personal gain — includes gain inuring to immediate family members unless otherwise stated.
Procurement staff — The Purchasing Agent and any employee under the supervision of the
Purchasing Agent.
STANDARDS OF CONDUCT
Procurement staff will:
A. Avoid the intent and appearance of unethical or compromising practice in
relationships, actions, and communications.
B. Avoid any personal business or professional activity that would create a conflict
between personal interests and the interests of the employer.
C. Immediately report any potential conflicts of interest to their supervisor.
D. Avoid soliciting or accepting money, loans, credits, or preferential discounts, and the
acceptance of gifts, entertainment, favors, or services from present or potential
suppliers that might influence, or appear to influence, procurement recommendations
or decisions.
E. Refrain from the use of Agency property or resources for personal advantage.
F. Avoid inequitable treatment of vendors to include, favoritism, unnecessary use of
brand names and organizational conflicts.
G. Handle confidential or proprietary information with due care and proper consideration
of ethical and legal ramifications and governmental regulations.
1. PERCEIVED IMPROPRIETY
Procurement staff will avoid the intent and appearance of unethical or compromising conduct in
relationships, actions, and communications.
The consequences of a perceived impropriety can be the same as consequences of an actual
impropriety. Therefore, it is essential that any activity or involvement between Procurement staff
and active or potential suppliers which in any way diminishes, or even appears to diminish, open
and fair treatment of suppliers shall be strictly avoided. Those who do not understand the
circumstances will judge based on appearances. Procurement staff must consider this and act
accordingly.
arises most often where architects sit on design review or zoning boards.
19 - Federal transit law requires grantees to award contracts through a process of full and open competition.
Organizational conflicts of interest that give any party an unfair competitive advantage impede full and open
competition, and thus are considered "restrictive of competition" under Paragraph 8(a)(5) of FTA Circular 4220.1 E.
The. following are recommended guidelines in dealing with perception:
o Situations may occur in which, through unanticipated circumstances, a business
relationship transpires with a personal friend. The perception (as well as the potential) of
a conflict of interest should be discussed with management, and a reassignment of
procurement responsibility should be considered.
o Business meeting locations should be carefully chosen. Environments other than the
office may be perceived as inappropriate by the business community or by co-workers.
o Displays of personal preference may give an impression of impropriety and should be
avoided. Conversation that delves excessively into personal affairs should be avoided.
o Positive action should be taken by management to alleviate suspicion of impropriety.
This does not mean you or your immediate family can't have friends in the business community
or even ones that do business with the Agency. What it does mean is that when they become
involved with a purchase or contract, you must notify your supervisor.
2. CONFLICT OF INTEREST
Avoid any personal business or professional activity that would create a conflict between
personal interests and the interests of the employer.
Procurement Staff must not use their positions in any way to induce another person to provide
any benefit to themselves, or persons with whom they have family, business, personal, or
financial relationships. Even though a conflict may not technically exist, staff must avoid the
appearance of such a conflict. Whenever a potential conflict of interest arises, the employee
should notify the appropriate supervisor for guidance or resolution.
The following are recommended guidelines to avoid conflicts of interest:
Conduct to be Avoided
o Engaging in outside business, or employment by an outside organization, which may
encroach upon the supply professional's primary responsibility of loyalty to the goals of
the Agency.
a Engaging in improper personal business with, or employment by, an organization which
has or may conduct business with .the Agency. Examples include but are not limited to:
a) Owning or leasing any property with knowledge that the employer has an active
or potential interest therein.
b) Having a direct or indirect interest in or relationship with a non-employee that is
inherently unethical or that might be implied or construed to be unethical, or
make possible personal gain due to the employee's ability to influence dealings;
render the employee partial toward the outsider for personal reasons or
otherwise inhibit the impartiality of the employee's business judgment; place the
employee or the Agency in an ambiguous, embarrassing or ethically
questionable position; or reflect on the integrity of the Agency.
C) Taking personal advantage of an opportunity that properly belongs to the Agency
or using Agency property or resources for personal gain.
d) Using the Agency's name (unless authorized) to lend weight or prestige to
sponsorship of a political party or cause, or endorsing the product or service of
another organization.
a Taking personal advantage of an opportunity that properly belongs to the Agency or
using Agency property or resources for personal gain.
o Willfully or unlawfully concealing, removing, mutilating, falsifying or destroying any
government document or record, nor will he or she make any false or fictitious
statements in connection with any official matter, document or record.
Personal Investment
Ownership of stock in a supplier or potential supplier of goods or services should be reported to
the supervisor for review and guidance to avoid the potential for impropriety. Interests by
members of the professional's immediate family are considered to be of the same significance
as direct ownership.
Outside Activities
Procurement Staff must not use their position with their employer when participating in outside
educational, professional, political, philanthropic, social, or recreational activities, which might
be detrimental to.their employer's business or reputation.
3. ISSUES OF INFLUENCE
Avoid soliciting or accepting money, loans, credits, or preferential discounts, and the
acceptance of gifts, entertainment, favors, or services from present or potential suppliers that
might influence, or appear to influence, supply management decisions.
Those in a position to influence the supply process must be dedicated to the best interests of
the Agency. It is essential, for all in a position to influence a purchasing decision, to avoid any
activity which may diminish, or even appear to diminish, the objectivity of the decision making
process.
In some circumstances, items which could be considered an issue of influence may be a bona
fide business activity. In such cases, extreme care should be taken to evaluate the intent and
the perception of acceptance of such an offer to ensure:
o It is legal.
o It is in the best interests of the Agency.
o It will not influence the purchasing decision.
o It will not be perceived by peers or others to be unethical.
Sources of influence include:
o Management Policies
a Gifts, Gratuities, and Entertainment
o Product Samples
o Business Meals
a Personal Relationships
o Political Considerations
a Advertising
a Specifications and Standards
1
The following are recommended guidelines when dealing with issues of influence:
Gifts, Gratuities, and Entertainment
Gifts, gratuities, and entertainment include material goods, services, or activities offered with the
intent of, or providing the potential for, influencing a buying decision. As such, these may be
offered to a supply professional or to other persons involved in the procurement process (or
members of their immediate families). They may be offered in various forms.
a Extreme caution must be used in evaluating the acceptance of gifts, gratuities, or
entertainment, even if of nominal value, and the frequency of such actions (the collective
impact) to ensure that one is abiding by the letter and the spirit of these guidelines.
a Soliciting gifts, gratuities, or entertainment in any form for yourself, other staff or the
Agency is unacceptable.
o Avoid accepting monies, credits, and prejudicial discounts.
o Comply with the nominal value established by the Executive Director memo to address
supplier offerings of nominal value as a gesture of goodwill, or for public relations
purposes.
o Refuse gifts exceeding nominal value, and return them with a polite explanation, or if
perishable, either return the gifts or donate them to a local charity in the name of the
supplier.
a Seek direction of management if concerned that a business relationship may be
impaired by refusal of a gift, gratuity, or entertainment.
Business Meals
Occasionally, during the course of business, it may be appropriate.to conduct business during
meals.
o Such meals shall be for a specific business purpose.
o Frequent meals with the same supplier should be avoided.
a Procurement Staff must pay for their share of the meal expenses.
Personal Relationships
Personal relationships are an inherent aspect of supply management. Procurement staff interact
extensively with suppliers' representatives. Individuals in many other functional areas in both the
buying and supplying organizations also interact extensively with each other. The development
of personal relationships from such interactions is both expected and desirable as it leads to
relationships based on understanding and trust. It must also be recognized that the purchasing
decision must not be influenced by anything other than what is in the best interest of the
organization, and that personal relationships that develop beyond what is necessary to ensure
understanding and trust may be inappropriate. It is important, therefore, for staff to closely
monitor the nature of relationships with suppliers' representatives to ensure that personal
friendships do not develop that would result in decisions not in the organization's best interest.
1
Political Considerations
All organizations are subject to internal and external forces and pressures. Internal forces and
pressures result from an organization's culture. External forces and pressures consist of
economic conditions, laws, regulations, public opinion, special interest groups, and political
entities. The negative influence of internal and external forces and pressures on supply
management can be minimized when the organization adopts practices based on ethical
principles and standards.
Advertising
Care should be exercised when accepting promotional items or participating in activities which
tend to promote one supplier over another, or could be perceived as favoritism for a supplier by
staff. Procurement Staff will be sensitive to the appearance of numerous promotional items
when meeting with representatives of other suppliers.
Specifications and Standards
Procurement Staff must ensure that specifications and standards are objectively written in a
manner that encourages competition when appropriate, excludes unnecessary restrictive
requirements, and appropriately defines quality.
4. CONFIDENTIAL AND PROPRIETARY INFORMATION
Handle confidential or proprietary information with due care and proper consideration of ethical
and legal ramifications and governmental regulations. Companies must appropriately mark as
confidential only that information meeting the criteria.
Proprietary and confidential information requires protection to the extent permitted by the state's
Public Records Act. Such information may or may not be upheld by patent, copyright, or non-
disclosure agreement. Proprietary and confidential information should be released to other staff
only as necessary in the performance of their duties. It is the responsibility of the individual
sharing confidential or proprietary information to ensure that the recipient understands his or her
obligation to protect such information.
Examples of information which may be considered confidential or proprietary include:
o Pricing
o Bid or quotation information
o Cost sheets
o Formulas and/or process information
a Design information
o Organizational plans, goals, and strategies
o Profit information
n Asset information
o Wage and salary scales
o Personal information about employees, officers, and directors
o Supply sources or supplier information
o Computer software programs
Requests for confidential information will be referred to the Agency Secretary as a Public
Records request. Such requests for confidential information will normally be reviewed by
Agency Counsel.
5. SUPPLIER RELATIONSHIPS
Fairness and impartiality should be extended to all legitimate business concerns. While it may
be desirable to build long-term relationships with selected suppliers, such relationships should
not eliminate opportunities for new suppliers or deter the potential of establishing similar working
relationships with other suppliers.
6. RECIPROCITY
Avoid improper reciprocal agreements.
If Procurement Staff influences a supplier to be a customer, the professional or the organization
is engaging in a practice known as reciprocity. These purchasing actions are illegal if they tend
to restrict competition or trade or if they are coerced, since such acts may be construed as
"restraint of trade" in violation of Sections 1 and 2 of the Sherman Act.
Procurement Staff must be able to recognize reciprocity and its ethical and legal implications.
Reciprocity is both a legal and an ethical issue that may result in legal sanctions against the
Agency, its management, and/or its procurement staff.
The following are recommended guidelines in dealing with reciprocity:
o Procurement strategy must include a positive effort to oppose any corporate or
organizational commitment to, or pursuit of, any form of improper reciprocity.
o Procurement staff should become sufficiently knowledgeable of the provisions in
antitrust laws to recognize a potential legal problem and to know when to seek.legal
counsel.
a If a supply management professional believes the potential for improper reciprocity
exists, or is being encouraged by marketing or management to engage in reciprocity,
legal counsel should be sought.
INFRACTIONS
Failure to comply with the standards of conduct may result in administrative action in
accordance with the City's Human Resource policies and procedures.
Exhibit E
PROCUREMENT PROCEDURES
•
FEDERALLY
FUNDED CONTRACTS
Redevelopment Agency of the City of Santa Clarita
A
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A 1P
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LA #4836-3698-4069 v1
C
' TABLE OF CONTENTS
APPENDIX A Information Resources
APPENDIX B Codification Location
APPENDIX C Procurement Action Review Form
APPENDIX D FTA Procurement Requirements Checklist
LA #4836-3698-4069 V1
SECTION
DESCRIPTION
PAGE
INTRODUCTION
I
SECTION 1
PURPOSE AND SCOPE
2
SECTION 2
PROCUREMENT PLANNING & ORGANIZATION
3
SECTION 3
SPECIFICATIONS
7
SECTION 4
METHODS OF SOLICITATION AND SELECTION
I I
SECTION 5
AWARD OF CONTRACTS
22
SECTION 6
PROCUREMENT OBJECT TYPES: SPECIAL CONSIDERATIONS
26
SECTION 7
DISADVANTAGED BUSINESS ENTERPRISE
27
SECTION 8
CONTRACT CLAUSES
29
SECTION 9
CONTRACT ADMINISTRATION
32
SECTION 10
CLOSE-OUT
37
SECTION I1
DISPUTES
38
SECTION 12
DISPOSITION
40
APPENDIX A Information Resources
APPENDIX B Codification Location
APPENDIX C Procurement Action Review Form
APPENDIX D FTA Procurement Requirements Checklist
LA #4836-3698-4069 V1
Santa Clarita Redevelopment Agency
Procurement Procedures for Federally Funded Contracts
INTRODUCTION
The Santa Clarita Redevelopment Agency has prepared "Procurement Procedures for Federally
Funded Contracts" to ensure compliance with federal regulations. These procedures set forth the
requirements that the Agency must adhere to in the solicitation, award and administration of its third
party contracts which are assisted with federal grant funds.
The requirements are based upon the common grant rules, Federal statutes, Executive orders and
their implementing regulations, and granting agency regulations. As a result of the detailed
requirements for Department of Transportation funded procurements, particularly those of the
Federal Transit Administration, additional direction must be sought from FTA Circular 4220.1F;
FTA Circular 5010.1D; the FTA Master Agreement; and the FTA "Best Practices Procurement
Manual."
On a practical level, these procedures are intended to supplement Agency policies to ensure.
compliance with granting agency requirements. Agency staff will use Agency procurement
procedures for all procurements to the extent they are more stringent than applicable Federal law and
the standards identified in this policy. Where this policy contains guidance not covered in Agency
policy or is stricter, the guidance in this policy will be followed. This policy is also intended to
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 in accordance with
Federal requirements.
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SECTION 1
PURPOSE AND SCOPE
I. SCOPE
This section describes the intent and purpose of the procedures which follow.
II. GENERAL
These procedures set forth the terms and conditions that govern the administration of a
contract or program of projects supported with Federal financial assistance awarded by a
federal department of agency through a Grant Agreement or Cooperative Agreement with the
Agency.
It is understood by the awarding agency and the Agency that not every term and condition in
these procedures will apply to every project for which the awarding agency enters into a
Grant Agreement or Cooperative Agreement. The nature of the project and the section of the
statute under which the project is financed will determine which terms and conditions of
these procedures will apply. Furthermore, these procedures are to be used in conjunction
with the Agency's Purchasing Policy.
Prior to submitting a grant application and/or executing a related contract, Agency staff will
review the procedures covered under Appendix A and any guidance codified in the Code of
Federal Regulations.
III. PROCEDURES
A. Agency staff is encouraged to enter into State and local intergovernmental
agreements for procurement or use of common goods and services to foster greater
economy and efficiency.
B. Agency staff will review proposed procurements to avoid purchase of unnecessary or
duplicative items. Consideration should be given to consolidating or breaking out
procurements to obtain a more economical purchase. Where appropriate, an analysis
will be made of lease versus purchase alternatives, and any other appropriate analysis
to determine the most economical approach.
C. Agency staff is encouraged to use Federal excess and surplus property in lieu of
purchasing new equipment and property whenever such use is feasible and reduces
project costs.
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SECTION 2
PROCUREMENT PLANNING & ORGANIZATION
I. SCOPE
This section covers procedures involving planning and organization of the procurement
function.
II. PROCEDURES
A. The Agency shall maintain file documentation sufficient to ensure compliance with
audit requirements,
B. All procurement transactions will be conducted in a manner providing full and open
competition. Some of the situations considered to be restrictive of competition
include but are not limited to:
(i) Placing unreasonable requirements on firms in order for them to qualify.to do:
business,
(ii) Requiring unnecessary experience and excessive bonding,
(iii) Noncompetitive pricing practices between firms or between affiliated
companies,
(iv) Noncompetitive awards to consultants that are on retainer contracts,
(v) Organizational conflicts of interest,
(vi) Specifying only a "brand name" product instead of allowing "an equal" product
to be offered and describing the performance of other relevant requirements of
the procurement, and
(vii) Any arbitrary action in the procurement process.
C. The Agency will maintain a written code of standards of conduct governing the
performance of their employees engaged in the award and administration of contracts
and the prevention of conflicts of interest.
No employee, officer or agent of the Agency shall participate in selection, or in the
award or administration of a contract supported by Federal funds if a conflict of
interest, real or apparent, would be involved. Such a conflict would arise when:
(i) The employee, officer or agent,
(ii) Any member of his immediate family,
(iii) His or her partner, or
(iv) An organization which employs, or is about to employ, any of the above, has a
financial or other interest in the firm selected for award. The Agency's or
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subgrantee's officers, employees or agents will neither solicit nor accept
gratuities, favors or anything of monetary value from contractors, potential
contractors, or parties to subagreements. Agency and subgrantees may set
minimum rules where the financial interest is not substantial or the gift is an
unsolicited item of nominal intrinsic value. To the extent permitted by State or
local law or regulations, such standards or conduct will provide for penalties,
sanctions, or other disciplinary actions for violations of such standards by the
Agency's and subgrantee's officers, employees, or agents, or by contractors or
their agents. The awarding agency may in regulation provide additional
prohibitions relative to real, apparent, or potential conflicts of interest.
The standards of conduct will also identify and prohibit real or apparent
organizational conflicts of interest. An organizational conflict of interest exists when
the nature of the work to be performed under a proposed third party contract or sub -
agreement may, without some restrictions on future activities, result in an unfair
competitive advantage to the third party contractor or sub -recipient or impair its
objectivity in performing the contract work.
D. The' Agency will conduct procurements in a manner that prohibits the use of
statutorily or administratively imposed in -State or local geographical preferences in
the evaluation of bids or proposals, except in those cases where applicable Federal
statutes expressly mandate or encourage geographic preference. Nothing in this
section preempts State licensing laws. When contracting for architectural and
engineering (A/E) services, geographic location may be a selection criteria provided
its application leaves an appropriate number of qualified firms, given the nature and
size of the project, to compete for the contract.
E. The Agency will ensure that all prequalified lists of persons, firms, or products which
are used in acquiring goods and services are current and include enough qualified
sources to ensure maximum open and free competition. Also, the Agency will not
preclude potential bidders from qualifying during the solicitation period.
F. The Agency will use time and material type contracts only --
(i) After a determination that no other contract is suitable, and
(ii) If the contract includes a ceiling price that the contractor exceeds at its own risk.
G. The cost plus a percentage of cost and percentage of construction cost methods of
contracting shall not be used.
H. Costs or prices based on estimated costs for contracts under grants must be consistent
with Federal cost principles.
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1
I. Payment Provisions. Local agencies may use its own funds to finance its contracts.
However, if local agencies intend to use federal assistance, expects to be reimbursed
with federal assistance, or dedicates its local share funds to support contract costs it
has financed, then they must structure its payment provisions carefully.
(i) Advance Payments. Advance payments are payments made to a contractor
before the contractor incurs contract costs. The Agency may use its local share
funds for advance payments. However, if there is no automatic preaward
authority for its project, then advance payments made with local share funds
before federal assistance has been awarded, or before a letter of no prejudice
has been issued or other preaward authority has been provided, or before
federal approval for the specific advance payment has been obtained, are
ineligible for reimbursement. The following principles and restrictions apply:
(a) Use of Federal Assistance Prohibited. The recipient may not use
federal assistance to make payments to a third party contractor before the
contractor has incurred the costs for which the payments would be
attributable.
(b) Exceptions for Sound Business Reasons. Apart from advance payments that
are customary, as discussed further, awarding agencies do occasionally
make exceptions to its advance payment prohibitions, if local agencies can
provide sound business reasons for doing so and has obtained the awarding
agency's advance written concurrence. A local agency that seeks to use
federal assistance to support advance payments should contact the regional
office administering its project to obtain the awarding agency's
concurrence.
1 Adequate Security for Advance Payments. Awarding agencies
recognize that advance payments may be needed for certain costs
supported by sound business judgment. Adequate security for the
advance payment is an essential pre -condition to the awarding agency's
concurrence in the use of federal or local share funds.
2 Customary Advance Payments. Awarding agencies recognize that
advance payments are typically required for, but are not limited to,
public utility connections and services, rent, tuition, insurance
premiums, subscriptions to publications, software licenses, construction
mobilization costs, transportation, hotel reservations, and conference
and convention registrations. Accordingly, the Agency may use
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federal assistance to support or reimburse the costs of such acquisitions.
Awarding agency concurrence is required only when such advance
payment or payments customarily required in the marketplace exceed
$100,000.
In summary, if there are sound business reasons justifying the advance
payment and adequate security for the payment, awarding agencies will
generally concur in a written request for an exception.
(ii) Progress Payments. Progress payments are payments for contract work that has
not been completed. The Agency may use federal assistance to support
progress payments provided the recipient obtains adequate security for those
payments and has sufficient written documentation to substantiate the work for
which payment is requested.
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LA #4836-3698-4069 v1
(a) Adequate Security for Progress Payments. Adequate payments are
payments for contract work that has not been completed. The Agency may
use federal assistance to support progress payments provided the Agency
obtains adequate security for those payments and has sufficient written .
documentation to substantiate the work for which payment is requested.
(b) Adequate Documentation. Sufficient documentation is required to
demonstrate completion of the amount of work for which progress
payments are made.
N
SECTION 3
SPECIFICATIONS
I. SCOPE
This section describes specific procedures required by federal regulations dealing with
specifications.
II. PROCEDURES
A. The federal regulations require that each solicitation provide the following information:
(i) The solicitation and the contract awarded thereunder must include _a clear and
accurate description of the Agency's technical requirements for the property or
services to be acquired in a manner that provides for full and open competition.
(a) The description may include a statement of the qualitative nature of . the
property or services to be acquired. When practicable, the Agency should
describe its requirements in terms of functions to be performed or level. of
performance required, including the range of acceptable characteristics or
minimum acceptable standards. The federal regulations for governmental
recipients states that "Detailed product specifications should be avoided if at all
possible." Federal grant regulations express a preference for performance or
functional specifications, but do not prohibit the use of detailed technical
specifications when appropriate.
(b) Awarding agencies limit Federal assistance to the amount necessary to support
the quantity of property or extent of services the local agencies actually needs at
the time of acquisition. The Agency may not add quantities or options to
contracts solely to allow them to assign these quantities or options at a later
date. Awarding agencies will not knowingly support the additional cost of
contract rights to property or services excess to the Agency's immediate needs,
even though the Agency may assign its excess contract rights to others.
(c) When it is impractical or uneconomical to provide a clear and accurate
description of the technical requirements of the property to be acquired, a
"brand name or equal" description may be used to define the performance or
other salient characteristics of a specific type of property. Agency staff must
identify the salient characteristics of the named brand that offerors must
provide. When using a "brand name" specification, Agency staff do not need
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LA #4836-3698-4069 v1
1
to reverse -engineer a complicated part to identify precise measurements or
specifications in order to describe its salient characteristics. FTA's "Best
Practices Procurement Manual," (BPPM) contains additional information on
preparation of specifications including examples with specific language.
(d) Federal grant regulations prohibit solicitation requirements that contain features
that unduly restrict competition. Local agencies may also be prohibited by
49 U.S.C. Section 5325(h) from using federal assistance to support an
exclusionary or discriminatory specification. Some situations considered to be
restrictive of competition include, but are not limited to, the following, all of
which are identified in federal grant regulations:
Pwcureniew Procedures
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LA #4836-3698-4069 v1
1 Imposing unreasonable business requirements for bidders or offerors.
2 Imposing unnecessary experience requirements for bidders and offerors.
3 Using prequalification procedures that conflict with the prequalification .
standards described in Section 2RE of this policy.
4 Making a noncompetitive award to any person or firm on a retainer contract
with the Agency if that award is not for the property or services specified
for delivery under the retainer contract.
5 Awarding agencies discourage 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, awarding agencies
recognize that local agencies might find bid, performance, or payment
bonds to be desirable. Because bonding requirements can limit contractor
participation, awarding agencies expect the Agency's bonding requirements
to be reasonable and not unduly restrictive. Awarding agencies, however,
will not challenge State or local bonding requirements as unreasonably
restrictive 'of competition, even though they might exceed Federal
requirements. Nevertheless, if the Agency's bonding policies result in such
"excessive bonding" that it would violate the federal grant regulations as
restrictive of competition; awarding agencies will not provide Federal
assistance for those procurements. Thus if the Agency's bonding policies
far exceed those described in this subparagraph or are permissible under
State or local law, the recipient should obtain the awarding agency's written
concurrence to ensure the availability of Federal assistance for the project.
6 Specifying only a "brand name" product without allowing offers of "an
equal" product, or allowing "an equal" product without listing the salient
characteristics that the "equal" product must meet to be acceptable for
award.
7 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(1) prohibits a FTA recipient from limiting its bus
purchases to in -State dealers. Exceptions expressly mandated or
encouraged by Federal law include the following:
a 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.
b A State may enforce its licensing requirements, provided that those
State requirements do not conflict with Federal law.
c 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.
8 Engaging in practices that result in organizational conflicts of interest as
prohibited by the federal grant regulations. An organizational conflict of
interest occurs when any of the following circumstances arise:
a When the contractor is unable, or potentially unable, to provide
impartial and objective assistance or advice to the Agency due to other
activities, relationships, contracts, or circumstances.
Procurement Procedures
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LA #4836-3698-4069 v1
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b The contractor has an unfair competitive advantage through obtaining
access to nonpublic information during the performance of an earlier
contract.
c 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.
Awarding agencies expect the Agency 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.
9 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.
10 Taking any arbitrary action in the procurement process.
(ii) The solicitation must identify all factors to be used in evaluating bids or proposals.
Pro curernmu Procedures
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LA #4836-3698-4069 v1
SECTION 4
METHODS OF SOLICITATION AND SELECTION
I. SCOPE
This' section describes specific solicitation proce6ures required by federal regulations.
II. GENERAL
The Agency shall conduct federally -assisted procurements in a manner that prohibits the use
of statutorily or administratively imposed in -State or local geographical preferences in the
evaluation of bids or proposals, except in those cases where applicable Federal statutes
expressly mandate or encourage geographic preference, This does not preempt the State
licensing laws. However, geographic location may be a selection criterion in procurements
for architectural and engineering (A&E) services provided its application leaves an
appropriate number of qualified firms, given the nature and size of the project, to compete for
the contract. Please note that references to Buy America deal with DOT funded
requirements. For information on Buy American Act requirements please see Section 8.
A. Micro -Purchases. Consistent with the Federal Acquisition Regulation (FAR), micro -
purchases are those purchases of $3,000 or less.
(i) When Appropriate. If permitted by State and local law, the recipient may acquire
property and services valued at $3,000 or less without obtaining competitive
quotations. These purchases are exempt from Buy America requirements. Davis -
Bacon prevailing wage requirements, however, will apply to construction contracts
exceeding $2,000, even though the recipient uses micro -purchase procurement
procedures.
(ii) Procedures. The following procedures apply to micro -purchases:
(a) Competition. Agency staff should distribute micro -purchases equitably among
qualified suppliers.
(b) Prohibited Divisions, Agency staff may not divide or reduce the size of its
procurement merely to come within the micro -purchase limit.
(c) Documentation. The only documentation requirement for micro -purchases is a
determination that the price is fair and reasonable and a description of how the
recipient made its determination.
Procuremew Procedures
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1
B. Small Purchases. Federal regulations authorizes governmental recipients to use relatively
simple and informal small purchase procedures as follows:
(i) When Appropriate. Small purchase procedures may be used to acquire services,
supplies, or other property valued at more than the micro -purchase threshold
(currently, $3,000) but less than the Federal simplified acquisition threshold at 41
U.S.C. Section 403(l 1) (currently $100,000). These purchases are also exempt
from Buy America requirements.
(ii) Procedures. When using small purchase procedures:
(a) Competition. Agency staff must obtain price or rate quotations from an
. adequate number of qualified sources.
(b) Prohibited Divisions. Agency staff may not divide or reduce the size of its
procurement to avoid the additional procurement requirements applicable to
larger acquisitions.
C. Sealed Bids (Formal Advertising). Federal regulations acknowledge sealed bidding to.be-
a generally accepted procurement method in which bids are publicly solicited, and a firm--'Z._-
fixed
irm.fixed price contract (lump sum or unit price) is awarded to the responsible bidder whose
bid, conforming to all the material terms and conditions of the invitation for bids, is
lowest in price.
(i) When Appropriate. Federal regulations state a preference for the sealed bids
procurement method for acquiring property, construction, and other services.
Procurement using sealed bids is appropriate if:
(a) Precise Specifications. A complete, adequate, precise, and realistic
specification or purchase description is available.
(b) Adequate Sources. Two or more responsible bidders are willing and able to
compete effectively for the business.
(c) Fixed Price Contract. The procurement generally lends itself to a firm fixed
price contract.
(d) Price Determinative. 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
Pmcwv w Pracedurer
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this Chapter, contractor selection may not be determined on the basis of other
factors whose costs cannot be measured at the time of award.
(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.
(ii) Procurement Procedures. The following procedures apply to sealed bid
procurements:
(a) Publicity. The invitation for bids is publicly advertised.
(b) Adequate Sources. Bids are solicited from an adequate number of known
suppliers.
(c) Adequate Specifications. The invitation for bids, including any specifications
and pertinent attachments, describes the property or services sought in
sufficient detail that a prospective bidder will be, able to submit a proper bid.
(d) Sufficient Time. Bidders are allowed sufficient time to prepare bids before the
date of bid opening.
(e) Public Opening. All bids are publicly opened at the time and place prescribed
in the invitation for bids,
(f) Fixed Price Contract. A firm fixed price contract is usually awarded in writing
to the lowest responsive and responsible bidder, but a fixed price incentive
contract or inclusion of an economic price adjustment provision can sometimes
be appropriate. When specified in the bidding documents, factors such as
transportation costs and life cycle costs affect the determination of the lowest
bid; payment discounts are used to determine the low bid only when prior
experience indicates that such discounts are typically taken.
(g) Rejection of Bids. Any or all bids may be rejected if there is a sound,
documented business reason.
D. Competitive Proposals (Request for Proposals). Federal regulations acknowledge the use
of competitive proposals to be a generally accepted procurement method when the nature
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of the procurement does not lend itself to sealed bidding and the recipient expects that
more than one source will be willing and able to submit an offer or proposal.
(i) When Appropriate. Competitive proposals should be .used when any of the
following circumstances are present:
(a) Type of Specifications. The property or services to be acquired are described in
a performance or functional specification; or if described in detailed technical
specifications, other circumstances such as the need for discussions or the
importance of basing contract award on factors other than price alone are
present.
(b) Uncertain Number of Sources. Uncertainty about whether more than one bid
will be submitted in response to an invitation for bids and the recipient lacks
the authority or flexibility under State or local law to negotiate the contract
price if it receives only a single bid.
(c) Price Alone Not Determinative. Due to the nature of the procurement, contract
award need not be based exclusively on price or price -related factors. In
different types of negotiated acquisitions, the relative importance of cost or'�-
price may vary. When the recipient's material requirements are clearly .
definable and thexisk of unsuccessful contract performance is minimal, cost or
price may play a dominant role in source selection. The less definitive the
requirements, the more development work required, or the greater the
performance risk, the more technical or past performance considerations may
play a dominant role in source selection and supersede low price.
(d) Discussions Expected. Separate discussions with individual offeror(s) are
expected to be necessary after they have submitted their proposals. This
contrasts with Formal Advertising procedures in which discussions with
individual bidders are not likely to be necessary, as award of the contract will
be made based on price and price -related factors alone.
(ii) Procurement Procedures. The following procedures apply to procurements by
competitive proposals:
(a) Publicity. The request for proposals is publicly advertised.
(b) Evaluation Factors. All evaluation factors and their relative importance are
specified in the solicitation; but numerical or percentage ratings or weights
need not be disclosed.
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(c) Adequate Sources. Proposals are solicited from an adequate number of
qualified sources.
(d) Evaluation Method. A specific method is established and used to conduct
technical evaluations of the proposals received and to determine the most
qualified offeror.
(e) Price and Other Factors. An award is made to the responsible offeror whose
proposal is most advantageous to the recipient's program with price and other
factors considered.
(f) Best Value. If permitted under its State or local law, the recipient may award
the contract to the offeror whose proposal provides the greatest value to the
recipient. To do so, the recipient's solicitation must inform potential offerors
that the award will be made on a "best value" basis and identify what factors
will form the basis for award. The evaluation factors for a specific
procurement should reflect the subject matter and the elements that are most
important to the recipient. Those evaluation factors may include, but need not
be limiter' to, technical design, technical approach, length of delivery schedules,
quality of proposed personnel, past performance, and management plan. The
recipient should base its determination of which proposal represents the "best
value" on an analysis of the tradeoff of qualitative technical factors and price or
cost factors. Apart from the statutory requirement that the contract must
support the recipient's public transportation project consistent with applicable
Federal laws and regulations.
E. Two -Step Procurement Procedures. If permitted by State and local law, the recipient may
use two-step procurement procedures in both sealed bid and competitively negotiated
procurements, provided the opportunity for full and open competition is retained.
(i) Review of Technical Qualifications and Approach. The first step is a review of the
prospective contractors' technical approach to the recipient's request and technical
qualifications to carry out that approach. The recipient then may narrow the
competitive range to prospective contractors that demonstrate a technically
satisfactory approach and have satisfactory qualifications.
(ii) Review of Bids and Proposals Submitted by Qualified Prospective Contractors. The
second step consists of soliciting and reviewing complete bids (sometimes referred
to as "two-step sealed bidding") or proposals (as in "competitive negotiations"),
including price, submitted by each prospective contractor determined to be
qualified. Absent exceptional circumstances, the recipient should attempt to solicit
bids or proposals from at least three .qualified prospective contractors. Unlike
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qualifications -based procurement procedures required for A&E services, and other
contracts covered by 49 U.S.C. Section 5325(b), federal departments expect the
Agency to consider all bid or proposal prices submitted as well as other technical
factors, rather than limiting reviews to the most qualified bidder or offeror.-
F.
fferor.
F. Architectural Engineering (A&E) Services and Other Services. Federal legislation at 49
U.S.C. Section 5325(b)(1) requires the use of the qualifications -based procurement
procedures. contained in the "Brooks Act," 40 U.S.C; Sections 1101 through 1104, to
acquire A&E services, but also for program management, construction management,
feasibility studies, preliminary engineering, design, architectural, engineering, surveying,
mapping and related services. The nature of the work to be performed and its
relationship to construction, not the nature of the prospective contractor, determine
whether qualifications -based procurement procedures may be used as described below.
(i) Qualifications -Based Procurement Procedures Required. Agency staff must use
qualifications -based procurement procedures not only when contracting for A&E
services, but also for other services listed in 49 U.S.C. Section 5325(b)(1) that are
directly in support of, directly connected to, directly related to, or lead- to
construction, alteration, or repair of real property. For example, a contractor;: -
performing program management, project design, construction management --or—
engineering services in which that contractor would select the finished products to
be acquired for a federally funded constructibri project must be selected tlu•ough
qualifications -based procurement procedures.
(ii) Qualifications -Based Procurement Procedures Prohibited. Unless the awarding
agency determines otherwise in writing, a recipient may not use qualifications -
based procurement procedures to acquire other types of services if those services
are not directly in support of, directly connected to, directly related to, or do not
lead to construction, alteration, or repair of real property. Even if a contractor has
performed services listed herein in support of a construction, alteration, or repair
project involving real property, selection of that contractor to perform similar
services not relating to construction may not be made through the use of
qualifications -based procurement procedures.
A project involving construction does not always require that qualifications -based
procurement procedures be used. Whether or not qualifications -based procurement
procedures may be used depends on the actual services to be performed in connection
with the construction project. For example, the design or fabrication of message
signs, signals, movable barriers, and similar property that will become off-the-shelf
items or will be fabricated and delivered as final end products for installation in a
federally funded construction project are not services for which qualifications -based
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procurement procedures may be used. Nor is actual construction, alteration, or repair
to real property the type of services for which qualifications -based procurement
procedures may be used..
(iii) Qualifications -Based Procurement Procedures. The following procedures apply to
qualifications -based procurements:
(a) Qualifications. Unlike other two-step procurement procedures in which price is
an evaluation factor, an offeror's qualifications are evaluated to determine
contract award.
(b) Price. Price is excluded as an evaluation factor.
(c) Most Qualified. Negotiations are first conducted with only the most qualified
offeror.
(d) Next Most Qualified. Only after failing to agree on a fair and reasonable price
may negotiations be conducted with the next most qualified offeror, Then, if
necessary, negotiations with successive offerors in descending order may be
conducted until contract award can be made to the offeror whose price the
recipient believes is fair and reasonable.
(iv) Effect of State Laws. To the extent that a State has, before August 10, 2005,
adopted by law, an equivalent State qualifications -based procurement requirement
for acquiring architectural, engineering, and design services, Federal "Brooks Act"
procedures, 40 U.S.C. Sections 1101 through 1104, will not apply.
(v) Audits and Indirect Costs. As required by 49 U.S.C. Section 5325(b)(3), the
following requirements apply to a third party contract for program management,
architectural engineering, construction management, feasibility studies, preliminary
engineering, design, architectural, engineering, surveying, mapping, or related
services:
(a) Performance of Audits. The third party contract or subcontract must be
performed and audited in compliance with federal cost principles.
(b) Indirect Cost Rates. The city, its subcontractors and subrecipients, if any, must
accept FAR indirect cost rates for one-year applicable accounting periods
established by a cognizant Federal or State government agency, if those rates
are not currently under dispute.
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(c) Application of Rates. After a firm's indirect cost rates are accepted, those rates
will apply for purposes of contract estimation, negotiation, administration,
reporting, and payments, not limited by administrative or de facto ceilings.
(d) Prenotification; Confidentiality of Data. Before requesting or using cost or rate
data, a recipient must notify the affected firm(s). That data must be kept
confidential and may not be accessible by or provided by the group of agencies
that share cost data under this subparagraph, except by written permission of
the audited firm. If prohibited by law, that cost and rate data may not be
disclosed under any circumstances. Federal departments recognize that many
States have "Open Records" laws that may make it difficult to maintain
confidential cost or rate data. As a result, before requesting or using cost or
rate data, not only should a recipient notify the affected firm, but it must also
obtain permission to provide. that data in response to a valid request under
applicable State law. The confidentiality requirements of 49 U.S.C.
5325(b)(3)(D) cannot be waived, even if they conflict with State law or
regulations.
G. Design -Bid -Build. The design -bid -build procurement method requires separate contracts"
for design services and for construction.
(i) Design Services. For design services, the recipient must use qualifications -based
procurement procedures, in compliance with applicable Federal, State and local law
and regulations.
(ii) Construction. Because the recipient may not use qualifications -based procurement
procedures for the actual construction, alteration or repair of real property, the
recipient generally must use competitive procedures for the construction. These
may include sealed bidding or competitive negotiation procurement methods, as
appropriate.
H. 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. Most awarding agencies authorize the use of grant funds to support
design -build projects "after the recipient complies with Government requirements,"
49 U.S.C. Section 5325(d)(2), Agency staff will confirm such authorization before
proceeding with any project.
(i) Procurement Method Determined by Value. First, the recipient 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
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design and construction are included in a single procurement, the awarding agency
expects the Agency 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.
(a) Construction Predominant. The construction costs of a design -build project are
usually predominant so thai
By using this two-step method, it will not be necessary for the Agency 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 the Agency.
I. Other Than Full and Open Competition. Normally, Agency staff must provide for full
and open competition when soliciting bids or proposals. Federal regulations, however,
acknowledge that,under certain circumstances, the Agency may conduct procurements
without providing for full and open competition.
(i) When Appropriate. Agency staff may use noncompetitive proposals only when the
procurement is inappropriate for small purchase procedures, sealed bids, or
competitive proposals, and at least one of the following circumstances are present:
(a) Competition Adequacy. After soliciting several sources, the awarding agency
expects the Agency to review its specifications to determine if they are unduly
restrictive or if changes can be made to encourage submission of more bids.or
proposals. After Agency staff determines that the specifications are not unduly_,
restrictive and changes cannot be made to� encourage, greater competition,
Agency staff may determine the competition adequate. A cost analysis must be
performed in lieu"of a price analysis when this situation occurs.
(b) Sole Source. When Agency staff requires supplies or services available from
only one responsible source, and no other supplies or services will satisfy its
requirements, Agency staff may make a sole source award. When Agency staff
requires an existing contractor to make a change to its contract that is beyond
the scope of that contract, Agency staff has made a sole source award that must
be justified.
1 Unique Capability or Availability. The property or services are available
from one source if one of the conditions described below is present:
a Unique or Innovative Concept, The offeror- demonstrates a unique or
innovative concept or capability not available from another source.
Unique or innovative concept means a new, novel, or changed concept,
approach, or method that is the product of original thinking, the details
of which are kept confidential or are patented or copyrighted, and is
available to the Agency only from one source and has not in the past
been available to the Agency from another source.
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b Patents or Restricted Data Rights. Patent or data rights restrictions
preclude competition,
c Substantial Duplication Costs. In the case of a follow-on contract for
the continued development or production of highly specialized
equipment and major components thereof, when it is likely that award
to another contractor would result in substantial duplication of costs
that are not expected to be recovered through competition.
d Unacceptable Delay. In the case of a follow-on contract for the
continued development or production of a highly specialized equipment
andmajor components thereof, when it is likely that award to another
contractor would result in unacceptable delays in fulfilling the
Agency's needs.
2 Single Bid or Proposal. Upon receiving a single bid or proposal in response
to a solicitation, Agency staff should determine if competition was
adequate. This should include a review of the specifications for undue
restrictiveness and might include asurvey of potential sources that -chose
not to submit a bid or proposal.
a Adequate Competition. Awarding agencies acknowledge competition to
be adequate when the reasons for few responses were caused by
conditions beyond the Agency's control. Many unrelated factors
beyond the Agency's control might cause potential sources not to
submit a bid or proposal. If the competition can be determined
adequate, the awarding agency's competition requirements will be
fulfilled, and the procurement will qualify as a valid sole source.
b Inadequate Competition. Awarding agencies acknowledge competition
to be inadequate when, caused by conditions within the Agency's
control. For example, if the specifications used were within the
Agency's control and those specifications were unduly restrictive,
competition will be inadequate.
(ii) Unusual and Compelling Urgency. Federal regulations permit the Agency to limit
the number of sources from which it solicits bids or proposals when the Agency has
such an unusual and urgent need for the property or services that the Agency would
be seriously injured unless it were permitted to limit the solicitation. The Agency
may also limit the solicitation when the public exigency or emergency will not
permit a delay resulting from competitive solicitation for the property or services.
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J. Agency staff will negotiate profit as a separate element of the price for each contract in
which there is no price competition and in all cases where cost analysis is performed. To
establish a fair and reasonable profit, consideration will be given to the complexity of the
work to be performed, the risk borne by the contractor, the contractor's investment, the
amount of subcontracting, the quality of its record of past performance, and industry
profit rates in the surrounding geographical area for similar work.
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SECTION 5
AWARD OF CONTRACTS
I. SCOPE
This section describes .specific procedures relating to the award of contracts.
II. GENERAL
A. Agency staff will make awards only to responsible contractors possessing the ability to.
perform successfully under the terms and conditions of a proposed procurement.
Consideration will be given to such matters as contractor integrity, compliance with
public policy, record of past performance, and financial and technical resources.
B. Agency staff will maintain records sufficient to detail the significant history of a
procurement. These records will include, but are not necessarily limited to the following:
rationale for the method of procurement, selection of contract type, contractor selection
or rejection, and the basis for the contract price.
C. Federal grant regulations require the recipient to perform a cost or price analysis in
connection with every procurement action, including contract modifications and sole
source procurements. The method and degree of analysis depends on the facts and
circumstances surrounding each procurement, but as a starting point, the recipient must
make independent estimates before receiving bids or proposals.
(i) Cost Analysis. Agency staff must obtain a cost analysis when a price analysis will
not provide sufficient information to determine the reasonableness of the contract
cost. Agency staff must obtain a cost analysis when the offeror submits elements
(that is, labor hours, overhead, materials, and so forth) of the estimated cost, (such
as professional consulting and A&E contracts, and so forth). Agency staff is also
expected to obtain a cost analysis when price competition is inadequate, when only
a sole source is available, even if the procurement is a contract modification, or in
the event of a change order. Agency staff, however, need not obtain a cost analysis
if they can justify price reasonableness of the proposed contract based on a catalog
or market price of a commercial product sold in substantial quantities to the general
public or based on prices set by law or regulation.
(a) Federal Cost Principles, Federal cost principles contain many requirements
about the allowability and allocability of costs.
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N Establishing Indirect Cost Rates. For contracts other than A&E contracts
discussed in subsection 3.e of this Chapter,: if the third party contractor or
subcontractor does not have an approved Government indirect cost rate
agreement, the contract's dollar value should determine how that rate is
verified.
1 Contracts of $5 Million or Less. The awarding agency may accept the audit
recommendations of the contractor's certified public accountant, or indirect
cost information in the contractor's annual statement to their stockholders,
shareholders, or owners, or examples of acceptance of their rates by other
governmental agencies within the last six months.
2 Contracts Exceeding $5 Million. If the contract exceeds $5 million, then the
Defense Contract Audit Agency, another Federal cognizant audit agency, or
an accounting firmapproved by the'Federal Government to perform audits
for the Federal Government, must verify the contractor's rates.
(c) Profit. The awarding agency expects Agency staff to negotiate profit as a
separate element of the cost for each contract in which there has been no price
competition, and in all acquisitions in which the recipient performs or acquires
a cost analysis. To establish a fair and reasonable profit, Agency staff needs to
consider the complexity of the work to be performed, the risk undertaken by the
contractor, the contractor's investment, the amount of subcontracting, the
quality of the contractor's record of past performance, and industry profit rates
in the surrounding geographical area for similar work.
(ii) Price Analysis. If Agency staff determines that competition was adequate, a price
analysis, rather than a cost analysis, is required to determine the reasonableness of
the proposed contract price. The price analysis for micro -purchases may be
limited. Similarly, Agency staff may use an abbreviated price analysis for small
purchases in most cases. One method to record this price analysis is through the
use of a preprinted form on which a contracting officer (or other responsible
person) can annotate a finding of fair and reasonable pricing and check off the most
common reasons why this would be so, such as catalog or market prices offered in
substantial quantities to the general public, regulated prices (for example, for many
utilities purchases), or a comparison with recent prices for similar goods and
services.
(iii) Guidance on.Cost and Price Analysis. The awarding agencies recognize that some
local agencies may have difficulty obtaining the information necessary to conduct a
proper cost or price analysis. Agency staff may use the following resources as
guidance in preparing cost or price analyses;
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ETA's "Best Practices Procurement Manual," Chapter 5,
The National Transit Institute Course, "Cost or Price Analysis and Risk
Assessment,"
Pricing Guide for FTA Grantees, FTA Web Site:
http://www.fta.dot.gov/documents/Helpline_Price_Guide.doc.,
FAR Part 31, Contract Cost Principles and Procedures, and
Defense Contract Audit Agency Audit Manual. See, the DCAA Web site:
http://www.dcaa.mil/.
Note, however, that the requirements of FAR Part 31 and the Defense Contract
Audit Agency Audit Manual may differ from restrictions applicable to an FTA
recipient. Agency staff must comply with those Federal laws and regulations
directly applicable to it based on the specifics of the grant.
D. Procurement History. Federal grant regulations require Agency staff to maintain and
make available written records detailing the history of each procurement, as follows:
(i) Procurement Method. Agency staff must provide its rationale for the method of
procurement it used for each contract, including a sole source justification for any
acquisition that does not qualify as competitive, while a non-governmental
recipient need only provide a justification for lack of competition when it does not
obtain competitive bids or proposals for contracts exceeding the simplified
acquisition threshold;
(a) Contract Type. Agency staff must state the reasons for selecting the contract
type it used (fixed price, cost reimbursement, and so forth);
(b) Contractor Selection. Agency staff must state its reasons for contractor
selection or rejection. For procurements exceeding the small purchase
threshold, a non-governmental recipient must state its reasons for contractor
selection, but need not state its reasons for contractor rejection. Agency staff
should include a written responsibility determination for the successful
contractor; and
(c) Cost or Price. Agency staff must evaluate and state its justification for the
contract cost or price.
(ii) Reasonable Documentation. The extent of documentation should be reasonable.
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Documents included in a procurement history should be commensurate with the
size and complexity of the procurement itself. Awarding agencies recognize that
these written records will vary greatly for different procurements. For example, a
receipt or bill accompanying a $100 credit card purchase might contain all of the
required information to support that procurement. Procurements that are more
substantial may require extensive documentation.
E. When evaluating solicitation responses the following standards apply:
(i) When evaluating bids or proposals submitted, Agency staff should consider all
evaluation factors specified in its solicitation documents, and evaluate the bids or
offers only on the evaluation factors included in those solicitation documents. The
recipient may not modify its evaluation factors after bids or proposals have been
submitted without re -opening the solicitation.
(ii) In awarding the contract that will include options, the following standards apply:
(a) Evaluation Required. In general, Agency staff should evaluate bids or offers for
any option quantities or periods contained in a solicitation if it intends• to
exercise those options after the contract is awarded.
(b) Evaluation Not Required. Agency staff need ;not evaluate bids or offers for any
option quantities when the recipient determines that evaluation would not be in
its. best interests. An example of a circumstance that may support a
determination not to evaluate bids or offers for option quantities is when the
recipient is reasonably certain that funds will not be available to permit it to
exercise the option.
(iii) In addition to evaluators with experience in technical or public policy matters
related to the procurement, other evaluators may also include auditors and financial
experts to the extent that the recipient determines would be necessary or helpful.
Although many local. agencies assign evaluation duties to their own personnel, a
local agency lacking qualified personnel within its organization may contract for
evaluation services. If it does so, the procurement standards of this circular will
apply to those contracts and to those contractors selected to perform evaluation
functions on behalf of the recipient.
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I.
SECTION 6
PROCUREMENT OBJECT TYPES; SPECIAL CONSIDERATIONS
SCOPE
Occasionally, the Agency may have the need to procure supplies or services that are unique
or involve special circumstances. Such procurements frequently have department specific
requirements, all of which can't be covered within this policy. Agency staff will need to do
additional investigation to determine of there are requirements peculiar to their project.
Some examples of these types of procurements are listed below.
Construction
Design build
Construction management
"turnkey"
Value engineering
Job order contracting
Partnering
Equipment lease/maintenance
Transit rolling stock
Professional services
Architect/engineering services
Insurance
Artwork
For example, local agencies are encouraged to use value engineering clauses in contracts for
construction projects of sufficient size to offer reasonable opportunities for cost reductions.
Value engineering is a systematic and creative analysis of each contract item or task to ensure
that its essential function is provided at the overall lower cost.
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SECTION 7
DISADVANTAGED BUSINESS ENTERPRISE
I. SCOPE
This section describes specific procedures required by federal'regulations for the support of
Disadvantaged Business Enterprises (DBE).
II. DEFINITIONS
A. FTA — The Federal Transit Administration.
B. DBE — Disadvantage Business Enterprise as defined by 49CFR26 and as certified by
CA Unified Certification Program.
C. UDBE — Underutilized DBE as determined by the Caltrans Disparity Study
III. GENERAL
The Agency has established a DBE Policy. This policy and the procedures in place for
monitoring and carrying out the program under Caltrans and the FTA will be used for all
public works projects whether or not the funding is received from the Department of
Transportation (DOT). For non -DOT, non-public works projects, the procedures specified in
this section will be followed.
IV. PROCEDURES
A. The Agency will take all necessary affirmative steps to assure that minority firms,
women's business enterprises, and labor surplus area firms are used when possible.
Affirmative steps shall include:
(i) Placing qualified small and minority businesses and women's business
enterprises on solicitation lists;
(ii) Assuring that small and minority businesses, and women's business enterprises
are solicited whenever they are potential sources;
(iii) Dividing total requirements, when economically feasible, into smaller tasks or
quantities to permit maximum participation by small and minority business, and
women's business enterprises;
(iv) Establishing delivery schedules, where the requirement permits, which
gncourage participation by small and minority business, and women's business
enterprises;
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(v) Using the services and assi.stance of the Small Business Administration, and the
Minority Business Development Agency of the Department of Commerce; and
(vi) Requiring th-- - prime contractor, if s zbcontracts are to be let, to take the
affirmative steps listed in paragraphs (i) through (v) of this section.
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SECTION 8
CONTRACT CLAUSES
I. SCOPE
This section identifies the contractual requirements for federally funded projects.
II. GENERAL
Federal grant requirements require that all third party contracts include provisions adequate
to form a sound and complete agreement. Compliance with Federal laws and regulations will
necessarily result in the addition of many other provisions to ensure compliance with those
laws and regulations. For contracts resulting from DOT funded grants, Appendix D will
identify the appropriate contract clauses. Other federally funded grants will fo ow the
guidance in this section.
III. PROCEDURES
Bids and contracts resulting from federally funded grants will contain clauses covering the
topics listed below. The FTA Best Practices Manual can provide suggested wording.
A. For construction or facility improvement contracts or subcontracts exceeding the
simplified acquisition threshold, the awarding agency will require a bid guarantee
from each bidder equivalent to five percent of the bid price.
B. For construction or facility improvement contracts or subcontracts exceeding the
simplified acquisition threshold, the awarding agency will require a performance
bond on the part of the contractor for 100 percent of the contract price.
C. For construction or facility improvement contracts or subcontracts exceeding the
simplified acquisition threshold, the awarding agency will require a payment bond on
the part of the contractor for 100 percent of the contract price.
D. Administrative, contractual, or legal remedies in instances where contractors violate
or breach contract terms, and provide for such sanctions and penalties as may be
appropriate, including liquidated damages. (Contracts more than the simplified
acquisition threshold)
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E. Termination for cause and for convenience by the Agency including the manner by
which it will be effected and the basis for settlement. (All contracts in excess of
$10,000)
F. Compliance with Executive Order 11246 of September 24, 1965, entitled "Equal
Employmen, Opportunity," as amended by Executive Order 11375 of October" 13,
1967, and as supplemented in Department of Labor regulations (41 CFR chapter 60).
(All construction contracts awarded in excess of $10,000 by Agency and their
contractors)
G. Compliance with the Copeland "Anti -Kickback" Act (18 U.S.C. 874) as
supplemented in Department of Labor regulations (29 CFR Part 3). (All contracts for
construction or repair)
H. Compliance with the Davis -Bacon Act (40 U.S.C. 276a to 276a-7) as supplemented
by Department of Labor regulations (29 CFR Part 5). (Construction contracts in
excess of $2000 awarded by Agency when required by Federal grant program
legislation)
1. Compliance with Sections 103 and 107 of the Contract Work Hours and Safety
Standards Act (40 U.S.C. 327-330) as supplemented by Department of Labor
regulations (29 CFR Part 5). (Construction contracts awarded by Agency in excess of
$2000, and in excess of $2500 for other contracts which involve the employment of
mechanics or laborers)
Notice of awarding agency requirements and regulations pertaining to reporting.
K. Notice of awarding agency requirements and regulations pertaining to patent rights
with respect to any discovery or invention which arises or is developed in the course
of or under such contract.
L. Awarding agency requirements and regulations pertaining to copyrights and rights in
data.
M. Access by the Agency, the Federal grantor agency, the Comptroller General of the
United States, or any of their duly authorized representatives to any books,
documents, papers, and records of the contractor which are directly pertinent to that
specific contract for the purpose of making audit, examination, excerpts, and
transcriptions.
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N. Retention of all required records for three years after the Agency makes final
payments and all other pending matters are closed.
O. Compliance with all applicable standards, orders, or requirements issued under
section 306 of the Clean Air Act (42 U.S.C. 1857(h)), section 508 of the Clean Water
Act (33 U.S.C. 1368), Executive Order 11738, and Environmental Protection Agency
regulations (40 CFR part 15). (Contracts, and subcontracts of amounts in excess of
$100,000)
P. Mandatory standards and policies relating to energy efficiency which are contained in
the state energy conservation plan issued in compliance with the Energy Policy and
Conservation Act (Pub. L. 94-163, 89 Stat. 871). •
Q. The Buy American Act provides guidance on the procurement of manufactured and
unmanufactured" items, material and supplies. Contracts for construction must also
include provisions covering this requirement. Further information on the Act may be
found at 41 U.S.C. 10a - 10d and 48 CFR Part 25.
R. Contract modifications for federally funded procurements as required by 48 CFR
43.205. Further information on this may also be found in Section 9 of this Policy.
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SECTION 9
CONTRACT ADMINISTRATION
SCOPE
This section describes specific procedures required administration of contracts funded by
federal grants including changes thereto.
II. DEFINITIONS
A. Administrative Change- A unilateral contract change, in writing, that does not affect
the substantive rights of the parties (e.g., changes of address for submittals of
documents, reports, etc.).
B. Bilateral Contract Modification - A modification which is signed by the Contractor
and the Contracting Official; also referred to as a supplemental agreement. They are
used to (1) make negotiated equitable adjustments to the contract price, delivery
schedule and other contract terms resulting from the issuance of a change order, (2)
definitize letter contracts, and (3) reflect other agreements of the parties modifying
the terms of the contract.
C. Cardinal Change - A contract change which is "outside the scope" of the original
contract, and thus not within the authority of the Changes clause to order. Such
changes are "sole source" procurements, and must be processed as such.
D. Changes Clause - A clause which permits the Contracting Official to make unilateral
changes, in designated areas, within the general scope of the contract, to be followed
by such equitable adjustments in the price and delivery schedule as the change makes
necessary. Although the Agency has a unilateral right, two general principles are
important: -
The right exists only because it is specifically conferred by the terms of the
contract; and
When such unilateral rights are exercised, the grantee has an obligation to
adjust the price and/or other provisions to compensate for the alteration in the
contractor's obligations.
E. Change Order - A written order, signed by the Contracting Official, directing the
Contractor to make a change that the Changes clause authorizes the Contracting
Procuremem Procedures
For Feder"Ihy Funded Comracis 33
L,4 #4836-3698-4069 v1
i
Official to order without the Contractor's consent.
F. Constructive Contract Change - A change to a contract resulting from the conduct of
the Agency's officials that has the effect of requiring the Contractor to perform
additional work. A constructive change results from the acts, written or oral, or from
the omissions of the Agency's officials, which have the same effect as if the
Contracting Official had issued a formal, written change order. Actions -giving rise to
constructive changes should, of course, be avoided'. Such changes.represent actions
which usually exceed the authority of the individual responsible for them, e.g.,
improper technical direction by the Technical Officer which is actually a change to
the contract. When these actions occur, contractors need to be advised as part of the
terms of their contracts to bring any such actions to the immediate attention of the
Contracting Official so that an official determination can be made by the appropriate
Agency officials and proper directions given in writing under the Changes clause.
Some common examples are:
• Specifications or contract provisions that are "impossible to perform."
• Specifications that are ambiguous.
• Drawings that contain errors, omissions or inconsistencies.
• Grantee -provided information that is late,'defective, etc.
• Technical direction by personnel that modifies the expressed terms of the
contract.
• Acceleration of work, where the grantee insists that the contract delivery
schedule be met despite the Contractor's valid claims of excusable delays.
• An inspector's interpretations of test specifications, procedures, methods,
conditions and results that go beyond a reasonable interpretation of the
specification.
G. Contract Administration - The post -award administration of the contract to ensure
compliance with the terms of the contract by both the contractor and the Agency.
This includes any necessary changes.
H. Contract Administration File Documentation - The documentation contained in the
contract file maintained by, or on behalf of the Contracting Official. It reflects the
actions taken by the contracting parties in accordance with the requirements of the
contract and documents the decisions made, and the rationale therefore, of matters
which may result (or have resulted) in controversy or dispute.
Procuremem Procedares
For Federallv Funded Contracts
LA #4836-3698-4069 v1
34
I. Contract Modification - Any written change in the terms of the contract.
J. Deductive Change - A change resulting in a reduction in the contract price because of
a net reduction in the Contractor's work.
K. Equitable Adjustment - An adjustment in the contract price, delivery schedule or
other terms of the contract arising out of the issuance of a change order.
L. Procurement File Documentation - The documentation contained in a procurement
file which details the history of the procurement through award of the contract. It
includes, at a minimum, the rationale for the method of procurement, the selection of
the contract type, the reasons for selection or rejection of the contractor, and the basis
for the contract price.
M. Unilateral Contract Modification - A contract modification that is signed only by the
Contracting Official. They are used to make administrative changes, issue change
orders, make changes authorized by clauses other than a Changes clause (e.g.,
Options clause), and issue termination notices.
III. GENERAL
Every type of contract will have different contract administration actions and the
documentation required to support that administration will differ as well. Supply contracts
have different specific administrative actions than construction contracts do just as fixed
price contracts are administered differently than cost -reimbursement contracts. The Federal
Acquisition Regulations has an extensive listing of contract administration functions that are
considered "normal" and might be applicable to your particular contract. Additionally, each
department has specific requirements that must be considered. For example, the FTA limits
contract terms for rolling stock and replacement parts to five years.
IV. PROCEDURES
A. Agency staff will maintain a contract administration system which documents and
ensures that contractors perform in accordance with the terms, conditions, and
specifications of their contracts or purchase orders.
For sealed bid procurements and competitive negotiations, consider including as standard
practice in the contract administration file the following:
Procurement Procedures 35
.1 rederu(ly runded Contracts
LA #4836-3698-4069 v1
1
• The executed contract and notice of award;
• Performance and payment bonds, bond -related documentation, and correspondence
with any sureties;
• Contract -required insurance documentation;
• Post -award (pre -performance) correspondence from or to the contractor or other
Governmental agencies;
• Notice to proceed;
• Approvals or disapprovals of contract submittals required by the contract and
requests for waivers or deviations from contractual requirements;
• Modifications/changes to the contracts including the rationale for the change, change
orders issued, and documentation reflecting any time and or increases to or decreases
from the contract price as a result of those modifications;
• Documentation regarding settlement of claims and disputes including, as appropriate,
results of audit and legal reviews of the claims and approval by the proper authority
(i.e., city council, board of directors, executive director) of the settlement amount;
7�,,
• Documentation regarding stop work and suspension of work orders and termination
actions (convenience as well as default); and
• Documentation relating to contract close-out.
B. Agency contracts should contain a Changes clause. The language of the clause may
differ depending upon the nature of the contract and the end -item being procured.
Change clauses limit the authority of the issuer in two ways. First, they stipulate that
changes must be "within the general scope of the contract." Second, they describe the
types of changes that may be made. In order for the change to be binding on the
Contractor, it must meet both tests. It must be within the general scope and be one of
the types of changes described in the clause. The Changes clause has several
purposes:
(i) To give the grantee flexibility to order changes in the -work, which may be
necessary due to advances in technology or changes in the grantee's
requirements.
(ii) To give the Contractor a method of suggesting changes to the work, thus
Procurement Procedures
Far Fed,zV Funded Commas 36 .
LA #4836-3698-4069 v1
improving the quality of the contract end -items. The equitable adjustment
provisions of the Changes clause will encourage the Contractor to suggest
improvements when those suggestions will increase the contract price. When,
however, the situation calls for suggestions regarding dollar savings, the
Changes clause may not incentives the Contractor if it stands to lose the dollar
savings because of a price reduction in the contract. For this reason, value
engineering clauses are included in contracts.
(iii) To give the grantee authority to order additional work which is "within the
general scope of the contract, and thereby avoid having to procure this work as
a "new procurement with all of the time and expense associated with another
solicitation.
(iv) To require the Contractor to proceed with the changed work and resolve the
issue of compensation later. The Federal clauses direct the Contractor to
proceed with the work in accordance with the change order directive and
submit a proposal within 30 days, following which the parties are to negotiate
an equitable adjustment to the price, delivery schedule and other affected terms.
Emergency situations can thus be handled expeditiously without placing the
Contractor in a position of demanding a certain amount of compensation before
the work can proceed. In the event of a failure to agree on price, the issue can
be resolved by a third party in accordance with the dispute procedure in the
Disputes clause of the contract. This provision is important because disputes
over compensation do not delay the work. The Contractor is required to
proceed with the work as changed and settle the issue of compensation later.
The Contractor cannot quit work because of a disagreement over price.
C. Federal grant regulations require local agencies to perform a cost or price analysis, as
appropriate, for every contract action, including change orders.
Pracurenicn! Procedures
F- Federnik Funded C-i.w 37
LA #4836-3698-4069 V1
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n
1
SECTION 10
CLOSE-OUT
I. SCOPE
This section describes close-out and records retention issues.
II. GENERAL
A. The Agency must make available, upon request of the awarding agency, technical
specifications on proposed procurements where the awarding agency believes such
review is needed to ensure that the item. and/or service specified is the one being
proposed for purchase. This review generally will take place prior to the time the
specification is incorporated into a solicitation document. However, if the Agency
desires to have the review accomplished after a solicitation has been developed, the
awarding agency may still review the specifications, with such review usually limited
to the technical aspects of the proposed purchase.
B. The Agency must on request make available for awarding agency pre -award review
procurement documents, such as requests for proposals or invitations for bids,
independent cost estimates, etc. when:
(i) -A Agency's procurement procedures or operation fails to comply with the
procurement standards in this section; or
(ii) The procurement is expected to exceed the simplified acquisition threshold and
is to be awarded without competition or only one bid or offer is received in
response to a solicitation; or
(iii) The procurement, which is expected to exceed the simplified acquisition
threshold, specifies a "brand name" product; or
(iv) The proposed award is more than the simplified acquisition threshold and is to
be awarded to other than the apparent low bidder under a sealed bid
procurement; or
(v) A proposed contract modification changes the scope of a contract or increases
the contract amount by more than the simplified acquisition threshold.
Procurement Procedures
For l'ederulhy Funded Comruas 38
LA #4836-3698-4069 v1
i
}t
i
I
SECTION 11
DISPUTES
I. SCOPE
This section describes specific procedures required by federal regulations. The Agency shall
have written protest procedures to handle and resolve disputes relating to procurements and
shall in all instances disclose information regarding the protest to the awarding agency.
II. GENERAL
A. Because the awarding agency has a vested interest in the settlement of any dispute,
default, or breach involving any federally assisted third party contract, the Agency
agrees to pursue all legal rights available under any third party contract. The
awarding agency reserves the right to concur in any compromise or settlement of any
third party contract claim involving the Agency.
B. The Agency agrees to notify the awarding agency of any current or prospective major
dispute, breach, or litigation pertaining to any third party contract. If the Agency
seeks to name the awarding agency as a party to litigation for any reason, the Agency
agrees to inform the awarding agency before doing so; this requirement applies to any
type of litigation whatsoever, in any forum.
C. The awarding agency retains the right to a proportionate share, based on the
percentage of the Federal share committed to the project, of any proceeds derived
from any third party recovery. If the third party contract at issue contains a liquidated
damages provision, the Agency agrees to credit any liquidated damages recovered to
the project account unless the awarding agency permits otherwise.
D. The awarding agency encourages the Agency to use alternative dispute resolution
procedures, as may be appropriate.
E. Local agencies alone will be responsible, in accordance with good administrative
practice and sound business judgment, for the settlement of all contractual and
administrative issues arising out of procurements. These issues include, but are not
limited to source evaluation, protests, disputes, and claims. These standards do not
relieve the local agencies of any contractual responsibilities under its contracts.
Federal agencies will not substitute their judgment for that of the local agencies
unless the matter is primarily a Federal concern. Violations of law will be referred to
the local, State, or Federal authority having propel- jurisdiction.
Pwcurelnenl Proeedllrex t]!1
For Fedendhv Funded Cour-is - 39
LA #4836-3698-4069 v1
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1
III. PROCEDURES
A. Disputes arising in the performance of a contract which are not resolved by
agreement of the parties shall be decided in writing by the authorized representative
of the Agency.
B. A protester shall have the right to present a formal protest to the Agency, in writing,
within five (5) working days of the date the protester knew or should have known of
the alleged violation or, in the case of .a bid protest, the date solicitation responses
were due.
C. Within ten (10) working days after receipt of the formal protest, the Agency shall
render a written decision regarding its merit. Failure of the Agency to render a
written decision on the protest within ten (10) working days constitutes a decision
denying the merit of the protest.
D. A protester may seek additional administrative remedies subsequent to the Agency's
response to the protest.
E. A protester must exhaust all administrative remedies with the Agency before
pursuing a protest witH•awarding agency. :.
F. Reviews of protests by the awarding agency will be limited to:
,(i) Violations of Federal law or regulations and the standards of this section
(violations of State or local law will be under the jurisdiction of State or local
authorities) and
(ii) Violations of the local agency's protest procedures for failure to review a
complaint or protest. Protests received by the awarding agency other than those
specified above will be referred to the local agency.
Pmcuremenr Procedures
For Federully Funded Commas - .• C 0
LA #4836-3698-4069 V1
SECTION 12
DISPOSITION
I. SCOPE
This section describes specific disposition procedures. When equipment or supplies
acquired under a grant from a federal agency are no longer needed for federally supported
projects or programs, they may be retained by the Agency or disposed of.
II. DEFINITION
A. Federally funded equipment or supplies - any supplies, materials, real property, or
equipment purchased under a federal grant.
B. Surplus - no longer needed for federally supported projects or programs.
III. GENERAL
A. Disposition should follow competitive sales procedures to ensure the highest possible
return. Service life of equipment is determined by acceptable industry standards for
such equipment, and service life of rolling stock such as buses is determined by FTA
Circular 9030.1 C or by contacting the FTA regional office.
(i) Over $5,000 value: After the service life of equipment is reached, equipment
with a current market value exceeding $5,000 per unit, or unused supplies with
a total aggregate fair market value of more than $5,000, may be retained or
sold, with reimbursement to the awarding agency of an amount calculated by
multiplying the total aggregate fair market value at the time of disposition, or
the net sale proceeds, by the percentage of awarding agency's participation in
the original grant. The Agency's transmittal letter should state whether the
equipment was retained or sold.
(ii) Less than $5.000 value: Equipment with a unit market value of $5,000 or less, .
or supplies with a total aggregate market value of $5,000 or less, may be
retained, sold or otherwise disposed of with no obligation to reimburse
awarding agency. Records of this action must be retained.
(iii) Before end of service life: Any disposition of equipment (including revenue
rolling stock) before the end of its service life is subject to prior awarding
agency concurrence in the method of disposition. The reimbursement amount
Prnrureme i Prncerlurer
Far
1e1ey Funder) C.,mm 41
LA #4836-3698-4069 v1
for revenue rolling stock removed from service before the end of its useful life
is the greater of the awarding agency share of the unamortized value of the
remaining service life per unit, based on straight line depreciation of the
original purchase price or the Federal share of the sales price, even though the
unamortized value is $5,000 or less.
(iv) Unused Supplies: Disposition of unused supplies before the end of the industry
standard life expectancy is determined in total aggregate fair market value and
if found to exceed $5,000, the Agency shall compensate the awarding agency
for its share.
(v) Like -Kind Exchange Option: The "like -kind exchange" policy is a disposition
initiative which adds the option of trading a vehicle or selling it and applying
the proceeds to replacement vehicles. The Agency may elect to use the trade-in
value or the sales proceeds from a bus to acquire a replacement vehicle of like -
kind. If the Agency chooses to re -invest the proceeds, 100 percent of the net
proceeds must be applied to acquisition of the replacement vehicles.
(vi) Involuntary Removal: When equipment is involuntarily removed from revenue
service (e.g. loss through fire, accident, earthquake, etc.) prior to the expiration
of its useful life, the, substitution of capital assets purchased with local funds for
those acquired with Federal funds is'permis"sible when:
(a) Substituted equipment is of equal or greater value.
(b) Substituted equipment was procured in accordance with awarding
agency guidance.
(c) Useful life criteria are adjusted to coincide with the original.
(d) Equipment is to be used in the programs or projects that are
consistent with the purpose for which the original equipment was
procured.
(e) The Agency amends its property records to include the equipment, as
appropriate.
(vii) Trade -In: Equipment may be used as a trade-in or be sold and the proceeds
used to offset the cost of replacement property, subject to awarding agency
approval.
Procurement Procedures — -
For Federally Fended Contracts 42
LA #4836-3698-4069 V1
APPENDIX A
INFORMATION RESOURCES
In addition to the Code of Federal Regulations (CFR) for each individual department and agency
(See Appendix B), the following information resources should be reviewed for federally funded
projects.
Office of Management and Budget (OMB) Circular — A-87 Cost Accounting Principles for State,
Local and Indian Tribal Governments
Office of Management and Budget (OMB) Circular — A-102 Grants and Cooperative Agreements
with State and Local Governments
Office of Management and Budget (OMB) Circular — A-133 Audits of States, Local'Governments
and Non -Profit Organizations (Including annual Compliance Supplement)
Federal Transit Administration (FTA) Circular — 4220.1F Third Party Contracting Guidance
Federal Transit Administration (FTA) Circular — 5010.1 D Grant Management Guidelines
Federal Transit Administration (FTA) Master Agreement
Federal Transit Administration (FTA) Best Practices Manual
Redevelopment Agency of the City of Santa Clarita Purchasing Policy
Redevelopment Agency of the City of Santa Clarita DBE Policy
Redevelopment Agency of the City of Santa Clarita Purchasing Standards of Conduct and Ethics
Procurement Procedures
Fnr hedendiy Funded C,"Or"(s APPENDIX A-1
LA #4836-3698-4069 v1
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1
1
APPENDIX B
CODIFICATION LOCATION
Codification of Governmentwide Grants Requirements by Department
Proavernens Yrur.•edures'
For Federalli; Funded contracts APPENDIX 8-1 • .".
LA #4836-3698-4069 v1 .
Grants
OMB Circular
Drug -Free
ByrdAnti-
ManagementWorkplace
A-110
Nonprocurement
Lobbying
Department
Common Rule
(universities &
r
Suspension &
-Act
Amendment
(See Note 1)
(State Local
&
non profit
Debarment(See
common
common
Governments)
organizations)
Note 3)
rule
rule (See
(See Note 2)
Note 4)
—��
_
7 CFR
;Agriculture
7 CFR 3016
��
7 CFR 3019
7 CFR 3017
3021
7 CFR 3018
Commerce
15 CFR 24
15 CFR 14
12 CFR 1326
15 CFR 29 [
15 CFR 28
;Defense
32 CFR 33
32 CFR 32
2 CFR 1125
32 CFR 26
132 CFR 28
Education
34 CFR 80
34 CFR 74
34 CFR 85
34 CFR 84
134 CFR 82 I
--
Energy
10 CFR 600
10 CFR 600
2 CFR 901
10 CFR
607
10 CFR 601
:Health &
:Human
45 CFR 92
45 CFR 74
2 CFR 376
45 CFR 82 145
CFR 93
iServices
!Housing &
=Urban
24 CFR 85
24 CFR 84
24 CFR 24
24 CFR 21
,24 CFR 87
;Development_
£Interior
r43 CFR 12
43 CFR 12
12 CFR 1400 _
43 CFR 43
143 CFR 18 (i
;Justice
28 CFR 66
28 CFR 70
12 CFR 2867
28 CFR 83
=28 CFR 69
.Labor
�29 CFR 97
29 CFR 95�
_.......__._M........... _.... ........._.._..........
�29 CFR 98 _ M129
r....... .._....._......_..I ............... _...
CFR 94
...................... _....... ._.............. ..._......._
129 CFR 93 1
�
'State
22 CFR 135
22 CFR 145
2 CFR 601
122
33 FR
122 CFR 138 {
;Transportation
49 CFR 18
14`99 CFR 19
449 CFR 29
49 CFR 3249
CFR 20
=Treasury
(----�
�31 CFR 19
31 CFR 20
E31 CFR 21
Veterans
38 CFR 43
2 CFR 801
38 CFR 48
j38 CFR 45
'Affairs
I
Proavernens Yrur.•edures'
For Federalli; Funded contracts APPENDIX 8-1 • .".
LA #4836-3698-4069 v1 .
Codification of Governmentwide Grants Requirements by Agency
Procurement Procedures
For Federu!!r Funded contracts APPENDIX B-2
LA #4836-3698-4069 v1
1
1
Grants
O Circular! Byrd Anti -
Agency
Management
A-1 10 'Nonprocurementj : Drug -Free Lobbying
{
(universities &I Suspension & { Workplace Amendment
(See
Common Rule
non-profit ; Debarment (See Act common a common s
Note 1)
(State &Local
�organizations)
z Note 3) rule ; rule (See 3
Governments
Ij
(See Note 2) i._._._, T Note 4)
,ADF
-- �-
- 122 CFR 1508 1122 CFR 1509 --
,AID
--
22 CFR 226 122 CFR 208 122 CFR 210 1i22 CFR 227 ;
8BG
CNCS
--
45 CFR 2541
22 CFR 518 1122 CFR 513 122 CFR 519
45 CFR 2543145 CFR 2200 145 CFR 2545
s 04 CFR 36 40 CFR 34
P 140
CFR 31
40 CFR 30 12 CFR 32
,EX -IM
--
-- 2 CFR 3513^112 CFR 411
:FEMA
44 CFR 13
129 CFR 1471 1,44 CFR 18
'FMCS
X41
29 CFR 1470
CFR 105-+41
--A 129 CFR 1471 _ 9 CFR 1472
CFR 105- 41 CFR 105-
GSA
1171
41 CFR 105-7211,41 CFR 105-68 j69
174 _
:IMS
i45 CFR 1183
~'
-- 145 CFR 1185 1145 CFR 1186^ -
CFR 1008
1 IAF-
-- (22 CFR 1006 122 -
NASA
114 CFR 1273
i 14 CFR 1260 12 CFR 180 14 CFR 1267 14 CFR 1271 i
NARA
36 CFR 1207
36 CFR 1210 12 CFR 2600 136 CFR 1212 3--
'NEA
145 CFR 1157
-- 12 CFR 3254 145 CFR 1155 145 CFR 1158
!NEH
45 CFR 1174
-- 2 CFR 3369 X45 CFR 1173 145 CFR 1168!
;NSF45
CFR 602
-- 12 CFR 2520 145 CFR 630 145 CFR 604
ONDCP121
CFR 1403
-- 1121 CFR 1404 j21 CFR 1404--
OPM
- 15 CFR 919 1---
O IPC
l,- ! 22 CFR 7122
;Peace
122 CFR 3700 122 CFR 312 122 CFR 311
:Corps
:SBA
j 13 CFR 143
113 CFR 145 _ 13 CFR 147 113 CFR 146
;SSA
12 CFR 2336 1120 CFR 439
]TVA
-- ±= ;-- 18 CFR 1315
Procurement Procedures
For Federu!!r Funded contracts APPENDIX B-2
LA #4836-3698-4069 v1
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1
1
i
NOTES: 1
1. Abbreviations used for the following independent agencies:
African Development Foundation (ADF),
Agency for International Development (AID), }
Broadcasting Board:of Governors (BBG), Corporation for National & Community Service
(C,NCS),
Environmental_ Protection Agency (EPA),
Export7lmport Bank of the United`States (EX -IM),
Federal Emergency Agency (FEMA),
Federal Mediation &Conciliation Service (FMCS),
General Service Administration (GSA),
Institute of Museum Services (IMS),
`(nter'A'mencan�Foundatiom`(FAF)"
National Aeronautics & Space Administration (NASA),
National Archives & Records Administration (NARA),
National Endowment for the Arts (NEA),
National Endowment for the Humanities (NEH),
National Science Foundation (NSF), -
Office of National Drug Control Policy (ONDCP),
Office of Personnel Management (OPM),
Overseas Private Investment"C`orporation (OPIC),'°
Small Business Administration (SBA), Tennessee Valley Authority (TVA),.and
2. . Additional agencies are expected to codify OMB Circular A-110 (2 CFR 215); in
the meantime,.the Circular's requirements apply to them and their awards.
3. Executive Order 12549 provided that agencies, including those which have not
yet codified the common rule, are covered by OMB's governmentwide guidelines which
are identical to the common rule (see OMB's memorandum to the agencies at 60 FR
33036 and OMB's notice at 53 FR 34474). For additional information about
implementation of the Drug -Free Workplace Act, see OMB's notices at 54 FR 4946 and
55 FR 21679.
4. The law only required major agencies, as identified by OMB, to codify the
common rule; all other agencies are covered by OMB's governmentwide' guidance (54 FR-
52305 (28 pages, 1,673 kb)) which is identical to the common rule (also see OMB's
clarification notices at 55 FR 24540 (3 pages, 337 kb) and 57 FR 1772 (2 pages, 260.kb)).,_,
Because of a new law on lobbying, OMB issued amendments to its governmentwide
guidance, effective 1/1/96 (61 FR 1412 (2 pages, 34 kb)).
Pros --a Procedures +
For Federedii Funded Conuruns APPENDIX B-3
LA #4836-3698-4069 v1 . . SS" ' :.
solicitation t tie
H. REQUIRED PROCUREMENT ELEMENTS AND SUGGESTED BEST PRACTICES
11.2. INDIVIDUAL PROCUREMENT ELEMENTS
1) Independent Cost Estimate
"Grantees must perform a cost or price analysis in connection with every procurement
action, ...as a starting point, grantees inust make independent estimates before receiving
bids or proposals" [FTA C 4220.1 D, 10.; 8PPM'§ 2.3.2]
The price analysis was made on '62 basrs'of sealed bid- results;
2) A&E Geographic Preference
"Geographic location may be. a selection criterion in procurements for architectural and
engineering (A&E) services provided its application leaves an appropriate number of
qualified firms, given the nature and size of the project, to compete for the contract." [FTA
C 4220.1D, 8.b.; BPPM § 6.5]
�Notgapplrcable oto Ethos=purchase:
3) Unreasonable Qualification Requirements
Example of situation restrictive of competition: "Unreasonable requirements placed on
firms in order for them to qualify to do business" [FTA C 4220.1 D, 8.a.(1); BPPM §
2.4.2.1]
Nogunreasonable qualificatrops.were imposed on'brdders:
4) Unnecessary Experience and Excessive Bonding
Example of situation restrictive of competition: "Unnecessary experience and excessive
bonding requirements" [FTA C 4220.1 D, 8.a.(2); BPPM § 2.4.2.1]
No=liancfswere;requ{red forfhrs purchase:
5) Organizational Conflict of Interest
Example of situation restrictive of competition: "Organizational conflicts of interest" [FTA
C 4220.1D, 8.a.(5); BPPM § 2.4.2.1 and 2.4.2.2.21
No organrzatranal conflicts exist:
6) Arbitrary Action
Example of situation restrictive of competition: "Any arbitrary action in the procurement
process" [FTA C 4220.1 D, 8.a.(7); BPPM § 2.4.2. 1]
Pracuremera Procedures
For Federrlly Funded Contracts APPENDIX V" 1
LA #4836-3698-4069 v1
,
Noarbitrary, actro�n,was4yfaken}dur►ng°procurernen#$process:
7) Brand Name Restrictions
Example of situation restrictive of competition: "The specification of only a'brand name'
producfwithout listing its salient characteristics and not allowing 'an equal' product to be
offered" [FTA C 4220.1 D, 8:a.(6); BPPM § 2.4.2.1 and 2.4.2.2.1]
8) Geographic Preferences
(a) "Grantees shall conduct procurements in a manner that prohibits the use of statutorily
or administratively imposed in -State or local geographical preferences in the evaluation of
bids or proposals, except in those cases where applicable Federal statutes expressly
mandate or encourage "geographic•preference: This does not preempt State, licensing
laws" [FTA C 4220.1 D, 8.b.]
No=geogra—h►cal prefe ence was`<uaed in thesolicifation:for thrspureiiase.
9) Contract Period of Performance Limitation =
(a) Grantees shall not enter into any contract for rolling stock and replacement parts with
a period of performance exceeding five (5) years inclusive of options. [49 USC Section
5326.(b))
Not appl►cable fo thrspurch`ase;
10) Written Procurement Selection Procedures
(a) "Grantees shall have written selection procedures for procurement transactions" [FTA
C 4220.1D, 8.c.; BPPM § 4.3.2, 4.4.1, 4.5.1, and 4.5.2]
(b) All solicitations shall:... (2) Identify all requirements that offerors must fulfill and all
other factors to be used in evaluating bids or proposals."[FTA C 4220.1 D, 8.c.'; BPPM §
4.3.2, 4.4.1, 4.5.1, and 4.5.2]
11) Solicitation Prequalif!cation Criteria
(a) "Grantees shall ensure that all lists of prequalified persons, firms, or products that are
used in acquiring goods and services are current ... " [FTA C 4220.1 D, 8.d.]
(b) "Grantees shall ensure that all lists of prequalified persons, firms, or products that are
used in acquiring goods and services ... include enough qualified sources to ensure
maximum full and open competition." [FTA C 4220.1D, 8.d.] .
(c) "grantees shall not preclude potential bidders from qualifying during the solicitation
period, which is from issuance of the solicitation to its closing date." [FTA C 4220.1 D, 8.d.]
Pronvemen� Procedures . '. ,
For Federally Funded Commas A APPENDIX C=2
LA #4836-3698-4069 0
Solicffatran contained no prequahfication criteria:
12) Award to Responsible Contractors
"Grantees shall make awards only to responsible contractors possessing the ability to
perform successfully under the terms and conditions of a proposed procurement.
Consideration shall -be given to such matters as contractor integrity, compliance with
public policy, record of past performance, and financial and technical resources." [FTA C
4220.1 D, 7.h.]
rt.r
The�contract wasgawarded to=fhe;lowest responsive,�responsrblebrdderc
13) Sound and Complete Agreement
(a) "All contracts shall include provisions to define a sound and complete agreement."
[FTA C 4220.1 D, 15.]
"(b)' "In addition;'contracts and subcontracts shal[contain administrative, contractual, or
legal remedies in instances where contractors violate or breach contract terms, including
sanctions and penalties as may be appropriate. (All contracts in excess of the small
purchase threshold.)" [FTA C 4220.1 D, 15.a.]
(c) "In addition, contracts and subcontracts shall contain ... termination for cause and for
convenience by the grantee or subgrantee including the manner by which it will be
effected and the basis for settlement. (All contracts in excess of $10,000)" [FTA C
4220.1 D, 15.b.]
Purchase Qrder/Contract cantains ,aI required clauses antl requirements:
14) No Splitting [Micro -purchase]
"There should be ... no splitting of procurements to avoid competition." [FTA C 4220.1 D,
9.a.; BPPM § 4.11
Not applicable„not aam�cropurchases
15) Fair and Reasonable Price Determination [Micro -purchase]
"Minimum documentation is required: A determination that the price is fair and reasonable
.....” [FTA C 4220.1D, 9.a; BPPM § 4.11
Not applicable, _nota acro wpurchase.
16) Micro -Purchase Davis Bacon
"The Davis Bacon Act applies to construction contracts between $2,000 and $2,500" [FTA
C 4220,1D, 9.a.; BPPM § 4.1]
rNot applicable:
17) Price Quotations [Small Purchase]
Pro carel/lell Procedures
For Federally Ftu,ded Contrdcn APPENDIX C-3
LA #4836-3698-4069 v1
U
1
"Price or rate quotatibhsshall be obtained from an adequate number of qualified sources"
[FTA C 4220.1 D, 9.b:; BPPM § 4.21
�Purchase;was�conducfed�asya p�ubllcly,�nottcedYsealed?brd)
18) Clear, Accurate, and Complete Specification
(a) "All solicitations -shall: (1) -Incorporate a clear and accurate description of the technical
requirements for the material; product, orservice to be procured" [FTA C. 4220.1 D,
8:c.(1); BPPM §'3]
fSol�crtafion�specrfrcat�ons, were'complete and clear:
19) Adequate Competition - Two or More Competitors
(a) "In order for sealed bidding to be feasible, the following conditions should be present: .
.. Two or more responsible bidders are willing and able to compete effectively for the
business" [FTAC 4220.l D,-9,c.,(l)(b)]• -
(b) "The competitive proposal method of procurement is normally conducted with more
than one source submitting an offer i.e., proposal." [FTA C 4220.1 D, 9.d.]
�Sea`led,brds,were rece�yedfrom 7b riders.
20) Firm Fixed Price [Sealed Bid]
"The procurement lends itself to a firm fixed price contract" [FTA C 4220.1 D, 9.c.(1)(c)1
21) Selection on Price [Sealed Bid]
"The selection of the successful bidder can be made principally on the basis of price"
[FTA C 4220.1D, 9.c.(1)(c)]
Se/ectron was based on priceartd'tte responsrbflty of the company:
22) Discussions Unnecessary [Sealed Bid]
"No discussion with bidders is needed" [FTA C 4220.1 D, 9.c.(1)(d)] - _
23) Advertised/Publicized [Sealed Bid] [RFP]
(a) "If this procurement method is used, the ... the invitation for bids will be publicly
advertised" [FTA C 4220.1 D, 9.c.(2)(a)]
(b) "if this procurement method i3 used the following requirements apply:.... Requests for
proposals will be publicized." [FTA C 4220.1 D, 9.d.(1)]
Sealed proposalwas publrcly advertised on Marc 20, 23;'and, 27,, 2005 as we'!I'as
publrshed onl the Agency s :website.
Procurement Procedures "
Far Federafb• Funded Coruracu. APPENDIX' C-4
LA #4836-3698-4069 v1
24) Adequate Solicitation; [Sealed i3id] [RFP]
(a) "If this procurement method 'is used.... bids shall be solicited from an adequate
number of known suppliers" [FTA C 4220,'D, 9.c,(2)(a)]
(b) "If this procurement method is used the following requirements apply:... Proposals
Will be solicited from an adequate number of qualified sources" [FTA C 4220.1 D, 9.d.(2)]
25)Sufficient Bid Time [Sealed• Bid]
"If this procurement method is used.... sufficient time to prepare bids prior to the date
set for opening the bids" will be provided. [FTA C 4220.1 D, 9.c.(2)(a)]
�Thersol�crtatron :was open from March 20, 2005_to4Apr11 74, 2005:
26)" Bid7Opening'[Sealed `Bid]
"If this procurement method is used, ... [a]II bids will be publicly opened at the time and
place described in the invitation for bids" [FTA C 4220.1 D, 9.c.(2)(c)]
27) Responsiveness [Sealed Bid]
"If this procurement method is used, ... [a] firm fixed-price contract award will be made in
writing to the lowest responsive ... bidder." [FTA C 4220.1D, 9.c.(2)(d)]
28) Lowest Price [Sealed Bid]
"If this procurement method is used.... [a] firm fixed-price contract award will be made in
writing to the lowest responsive and responsible bidder." [FTA C 4220.1 D, 9.c.(2)(d)]
29) Rejecting Bids [Sealed Bid]
"Any or all bids may be rejected if there is a sound documented business reason" [FTA C
4220.1 D, 9.c.(2)(e)]
Nota' Ilcable aealed ro osal RFP ,no bids re ecte0
30) Evaluation [RFP]
Procurement Frocednres
For Federally Funded Contracts APPENDIX C-5
LA #4836-3698-4069 v1
t
(a) ':-If this procurement method is used,the'following requiremehts apply: All
evaluation factors will be identified along with their relative importance." [FTA C 4220.1 D,
9;d:(1)]
(b) "If this procurement method is used the following requirements apply::.. Grantees
will have.a method in place for conducting technical evaluations of the proposals received
'.[FTA C 4220:1 D, 9.d.(3)]
(c) "If this procurement method is used the following requirements apply:... Grantees will
have a method in place ... for selecting awardees." [FTA &4220.1 D, 9.d.(3)].
�Not_,applcable,asohcitatron was absealed brd
31) Price and Other Factors'[RFP]
"If this procurement method is used the following requirements apply:... Awards will be
made to the responsible firm whose proposal is most advantageous to the grantee's
program with price and other factors considered," [FTA C 4220,1D, 9.d.(4)]
iNotrapphcabie,�solfcrtatron�was a�sealed,bid
32) Sole Source if Other Award is Infeasible
(a) "Sole Source procurements are accomplished ... after solicitation of a number of.
sources, competition is determined inadequate." [FTA C.4220.1D, 9.f.]
(b) "Procurement by noncompetitive proposals may be used only when the award of a
contract is infeasible under small purchase procedures, sealed bids, or competitive
proposals and at least one of the following circumstances applies" [FTA C 4220.1 D,
9.f.(1)]
'Nof applcab`le;awardwas not; sole source':
33) Cost Analysis Required [Sole Source]
"A cost analysis, i.e., verifying the proposed cost data, the projections of the data, and the
evaluation of the specific elements of costs and profit, is required." [FTA C 4220.1 D,
9.f.(2)]
?Not applicable, -.award was not sole source:
34) Evaluation of Options
(i) "Grantees may include options in contracts. An option is a unilateral right in a contract
by which, for a specified time, a grantee may elect to purchase additional equipment,
supplies, or services called for by the contract, or may elect to extend the term of the
contract." [FTA C 4220.1 D, 9.g.j
(ii) "If a grantee chooses to use options ... The option quantities or periods contained in
the contractor's bid or offer must be evaluated in order to determine contract award." [FTA
C 4220.1 D,9.g.(1)]
(iii) "When options have not been evaluated as part of the award, the exercise of such
options will be considered a sole source procurement" [FTA C 4220.1 D, 9.g.(1)]
Procurement Procedures
For Federally Funded Contracts APPENDIX C-6
LA #4836-3698-4069 v1
"1Vo;optrons
Co S1 ndrtori`e wlft b'Ei ezecu ed
35) Cost or Price Analysis
(a) Cost. analysis
(i) "Grantees must perform a cost or price analysis in connection with every
procurement action, including contract modifications. The method -and degree of
analysis is dependent on the facts surrounding the particular procurement situation . .
[FTA C-4220.1 D, 10.]
Price analysis wasAccomplrshed through sealedrbfd process
36) Written Record of Procurement History
"Grantee shall maintain records detailing the history of a procurement. At a minimum,
these records shall include; (1) the rationale for the method of procurement, (2) selection
of contract type, (3) reasons for contractor selection or rejection, and (4) the basis for the
contract type" [FT -k C 4220.1 D, 7.iJ
37) Exercise of Options
(i) "Grantees may include options in contracts. An option is a unilateral right in a contract
by which,,for a specified time, a grantee may elect to purchase additional equipment,
supplies, or services called for by the contract, or may elect to extend the term of the
contract." [FTA C 4220.1 D, 9.g.]
No optiaris fwrll be exercised:
38) Out of Scope Changes
(a) "A contract amendment or change order that is not within the scope of the original
contract is considered a sole source procurement" [FTA C 4220.1 D, 9.f.]
No oui ofscope changes weke made]
39) Advance Payments
"FTA does not authorize and will not participate in funding payments to a contractor prior
to the incurrence of costs by the contractor unless prior written concurrence is obtained
from FTA" [FTA C 4220.1 D, 12.a.]
€No acfvanee payments�were made:
40) Progress Payments
"Grantees may use progress payments provided the following requirements are followed"
[FTA C 4220.1 D, 12.b.]
Not applicable, PJgW9gM payments were made
Procuremew Procedures �1
For Federall v Funded Cowrocb APPENDIX VAS
�fX C'7
LA #4835-3698-4069 v1
1
1
41) Time'and Materials Contracts
(i) "Grantees will,use.time and material type contracts only [a]fter a determination that
no other.,type_of contract is suitable; and ... [i]f the contract specifies a ceiling price that
the contractor shall not.exceed.except at its own risk." [FTA C 4220.1 D, 7,j]
�Notapp bie nota frme andamaterrals contract'
42)"Cost Plus^Percentage of Cost
(1) "The cost plus a percentage of cost and percentage of construction cost methods of
contracting shall not be used". [FTA C 4220.1'D, 10.e.]
Notsapphcablenot£a,cost�p/us contract:
43) Liquidated Damages Provisions
"A`grahf6d,i y�bse liquidated damages' if"it'rriayreasoriably expect -to -suffer damages
(increased costs on project involved) from late completion and the extent or amount of
such damages would be difficult or impossible to determine..The assessment for
damages shall be at a specific rate per day for each day of overrun in contract time; and
the rate must be specified in the third party contract. Any liquidated damages recovered
shall be credited to the project account involved unless the FTA permits otherwise." [FTA..-. _ -
C 4220.1 D, 13.]
it, s purchase contarned iOlrqu f6l 0 damages clause,
44) Piggybacking
"Piggybacking" is defined as the post-award.use'of,a contractual document/process that
allows someone whowasnot contemplated in the original procurement to purchase the
same supplies or equipment, through the original document/process.
}Th„e_purchase was nat a_ piggyback purchase: '
45) IDIQ
While the Dear Colleague Letter does not say the words indefinite -delivery, indefinite -
quantity (IDIQ] this is what is referred to by the language that the original solicitation and
contract contain both a minimum and maximum quantity, which represented the
reasonably foreseeable needs of the parties to the solicitation. [Dear Colleague
Letter, 10/1/98, P. 2]
,Not apphcablex the purehase.was_not an IDIQ confract
46) (qualifications Exclude Price [A&E]
(a) "Grantees shall use competitive proposal procedures based on the Brooks Act when
contracting for A&E services as defined in 40 U.S.C. § 541. Other types of services
Prneurenieni Procedures - p'
For Federal;- Fmided Contracts APPENDIX. -C-8.
LA #4836-3698.4069 v1 »• a.: • _ �.- .�
considered A&E services' include program rnanagement, construction management,
feasibility studies, preliminary engineering, design, surveying, mapping, and services
which require performance by a registeredor licensed architect or engineer." [FTA C
4220.1'D, 9.e.]
(b)'"The Brooks Act requires that ... An offeror's qualifications be evaluated" [FTA C
4220:1,D,, 9:e•('i )]
(c) "The;Brooks Act requires that .. Price be excluded as an evaluation factor" [FTA C
4220.,tD, 9:e.(2)]
fNot;applrcable,no# an LI&E purchase
47) Serial Price Negotiations [A&E]
(a) "The Brooks Act requires that ... Negotiations be conducted with only the most
qualified offeror" and [FTA C 4220.1 D, 9.e.(3)]
(b) "The Brooks Act requires that ... 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." [FTA.C=4220:1,D,.
9.e.(4)]
°Notapplcahle;{ nottan A&Epurchase
48) Bid Security [Construction Over $100,000]
"Minimum requirements for construction contracts ... A bid guarantee from each bidder
equivalent to five (5) percent of the bid price. The 'bid guarantee" shall consist of a firm.
commitment such as a bid bond, certified.check, or other negotiable instrument
accompanying a bid as assurance that the bidder will, upon acceptance of his bid,.
execute such contractual documents as may be required within the time specified" [FTA
C 4220.1 D, 11.a.]
Not applicable, this was not a construct�on.purchase.
49) Performance Security [Construction Over $100,0001
"Minimum requirements for construction contracts ... A performance bond on the part of
the contractor for 100 percent of the contract price. A 'performance bond' is one executed
in connection with a contract to secure fulfillment of all the contractor's obligations under
such contract" [FTA C 4220.1 D, 11.b.]
Not applicable, thisrwas not a construction:°purcf?ase
50) Payment Security [Construction Over $100,0001
(a) "Minimum requirements for construction contracts ... A payment bond on the part of
the contractor. A payment bond is one executed in connection with a contract to assure
payment, as required by law, of all persons supplying labor and material in the execution
of the work provided for in the contract." [FTA C 4220.1 D, 1 ,I .c.]
'Notapphcabisxfhis was nota
'r 09n purchase:
Procarement Procedure,
For Federclk Funded Contracts APPENDIX C-9
LA 84836-3696-4069 v1
1
1
Areas highlighted in yellow indicate information needed for each procurement action. The data
should contain.,the details confirming compliance with the stated requirement if. applicable.
Source: Guide fcr Proc•icreniernt Systems Review
Praeuretnenr Procedures ++ ...
For Ferlera4v htnded Contracts APPENDIX -C-10,
LA #4836-3698-4069 v1. ?:a :i • , .
APPENDIX 1D
FTA PROCUREMENT CONTRACT REQUIREMENTS
The FTA Procurement Contract Requirements are to be used by.project managers as a reference
regarding`the applicability of FTA requirements to specific projects.
The FTA Best Practices Manual should be used for suggested bid clause wording.
1
Procurement Frocedura APPENDIX D-1
For Federally Funded Contracts ,
LA #4836-3698-4069 v1
1
FTA -Funded Procurement Contract. Requirements Checklist
.Federal,,.':Requirement
Description
Page
Drug & Alcohol Testing
Applies to Operational Service Contracts,
1
Buy America
Applies to ConstructionContracts.and Acquisition
4
:of Goods of Rolling Stock valued at more than
`$100,000.
Charter..Bus/School Bus
Applies to•,Operaiional Service Contracts.
9
School Bus
Applies to Operational Service Contracts,
10
Cargo Preference
Applies to all Contracts involving equipment,
11
matenals;`or commodities whichmay°be transported
by ocean vessels.
Seismic Safety
Applies to Construction of new buildings or
12
additions to existing buildings.
Energy Conservation
Applies to All Contracts.
13
Clean Water
Applies to every Contract and Subcontract valued at
14
more than $100,000.
Bus Testing
Applies to Acquisition of Rolling Stock, including
15
service contractor.
PreAward/PostDelivery
Applies to Acquisition of Rolling Stock, including
17
Audit
service contractor.
Lobbying
Applies to Construction/Architectural and
20
Engineering/Acquisition of Rolling
Stock/Professional Service/Operational
Service/Turnkey Contracts and SubContracts.
Access to Records/Reports
See Chart with Boilerplate.
22
Federal Changes
Applies to All Contracts.
25
Bonding
Applies to Construction Contracts valued at more
26
than $100,000.
Clean Air
Applies to All Contracts valued at more than
30
Procurement Procedures APPENDIX D-2:
For Fede ,HY Fwided Conin m
LA #4836-3698-4069 v1
;-
Federal `Requirement
_ ..
Description
Page .
$100;000..
Recycled Products
Applies to specific item procurements valued at
31
more`tl an $1.0,0.00. _
'See Resource Conservation and Recovery Act
(RCRA)46r specific items.
:Davis -Bacon Act
Applies`to Construction Contracts valued at more
32
than $2,000.
Contract.Work.Hours and
Applies to Construction Contracts valued at more
39
Safety Standards
than $2,000.
Applies to Turnkey, Rolling Stock, and Operational
,.
rrGontracts-valued,at=more than $2,500.
Copeland Anti -Kickback
Applies to Construction Contracts valued at more
42
than $2,000.
No Government
Applies to All Contracts.
43
Obligation to Third
Parties
Fraud/False Statements
Applies to All Contracts.
44
Termination
Applies to All Contracts valued at more than
45
$10,000.
Applies to All Contracts with Nonprofit
organizations valued at $100,000.
Debarment & Suspension
Applies to All Contracts and SubContracts valued
49
at more than $100,000.
Privacy Act
Applies to Operational Service Contracts.
51
Civil Rights
Applies to All Contracts,
52
Breach/Dispute
Applies to All Contracts valued at more than
54
Resolution
$100,000.
Patent Rights, Copyrights
Applies to Contracts which finance the development
55
of a product or information.
Transit Employee
Applies to Operational Service Contracts.
58
Procurement Procedures
Pur Fedendh' Funded Contracts
LA #?4836-3698-4069 v1
APPENDIX D-3
1
F�
1
I
Protection,
,.Disadv'afitAgd Business Applies,to. .Contracts,
valued at .more than 250,000; 60
40T planning:....
66
�e&Ate46d.`LQc'qd1L" Amiliesio All Coniikts. 63
-1hcor, oratiow'dETA Applies to'All Co: ntracts, 64
n
APPENDIX D-4
Procurement Procedures
For Federally funded Conimcis
iLeA"#483.6-3698-4069W1
n
APPENDIX D-4
1
1
SCANNED cif
MAR -12 2011 ,T
'Irt
SCAN/NE®
DEC 2 9 2010
i