The purpose of this procurement policy is to ensure that sound
business judgment is utilized in all procurement transactions and
that supplies, equipment, construction, and services are obtained
efficiently and economically and in compliance with applicable federal
law and executive orders and to ensure that all procurement transactions
will be conducted in a manner that provides full and open competition.
This policy applies to the procurement of all supplies, equipment,
construction, and services of and for the Village of Coal City ("Village")
related to the implementation and administration of a CDBG award under
federal laws and regulations. All procurement will be done in accordance
with 24 CFR 85.36.
Procurement under grants shall be made by one of the following
methods, as described herein: (a) small purchase procedures; (b) sealed
bids (formal advertising); (c) competitive proposals; (d) noncompetitive
proposals.
A. Small purchase
procedures are relatively simple and informal procurement methods
that are sound and appropriate for the procurement of services, supplies,
or other property, costing in aggregate not more than $100,000. If
small purchase procedures are used for a procurement under a grant,
price or rate quotations shall be obtained from an adequate number
of qualified sources.
B. In sealed
bids (formal advertising), sealed bids are publicly solicited and
a firm-fixed-price contract (lump sum or unit price) is awarded to
the responsible bidder whose bid, conforming with all of the material
terms and conditions of the invitation for bids, is the lowest in
price. The sealed bids method is the preferred method for procuring
construction.
(1) In
order for formal advertising to be feasible, appropriate conditions
must be present, including, at a minimum, the following:
(a) A complete, adequate and realistic specification or purchase description
is available;
(b) Two or more responsible bidders are willing and able to compete effectively
for the Village's business; and
(c) The procurement lends itself to a firm-fixed-price contract, and
the selection of the successful bidder can be made principally on
the basis of price.
(2) When
sealed bids are used for a procurement under a grant, the following
requirements apply:
(a) A sufficient time prior to the date set for opening of bids, bids
shall be solicited (publicly advertised) from an adequate number of
known suppliers.
(b) The invitation for bids, including specifications and pertinent attachments,
shall clearly define the items or services needed in order for the
bidders to properly respond to the invitation for bids.
(c) All bids shall be opened publicly at the time and place stated in
the invitation for bids.
(d) A firm-fixed-price contract award shall be made by written notice
to that responsible bidder whose bid, conforming to the invitation
for bids, is lowest. Where specified in the bidding documents, factors
such as discounts, transportation costs, and life cycle costs shall
be considered in determining which bid is lowest. Payment discounts
may only be used to determine low bid when prior experience of the
Village indicates that such discounts are generally taken.
(e) Any or all bids may be rejected if there are sound documented business
reasons in the best interest of the program.
C. Procurement
by competitive proposals is normally conducted with more than one
source submitting an offer, and either a fixed-price or cost-reimbursable
type contract is awarded, as appropriate. Competitive proposals are
generally used when conditions are not appropriate for the use of
sealed bids. If the competitive proposals method is used for a procurement
under a grant, the following requirements apply:
(1) Requests
for proposals shall be publicized and identify all evaluation factors
and their relative importance. Any response to publicized requests
for proposals shall be honored to the maximum extent practical.
(2) Requests
for proposals shall be solicited from an adequate number of qualified
sources.
(3) The
Village shall have a method for conducting evaluations of the proposals
received and for selecting awardees.
(4) Awards
will be made to the responsible offeror whose proposal will be most
advantageous to the procuring party, with price (other than architectural/engineering)
and other factors considered. Unsuccessful offerors will be promptly
notified in writing.
(5) The
Village may use competitive proposal procedures for qualification-based
procurement of architectural/engineering (A/E) professional services
whereby competitor's qualifications are evaluated and the most qualified
competitor is selected, subject to negotiation of fair and reasonable
compensation. The method, where price is not used as a selection factor,
can only be used in the procurement of A/E professional services.
It cannot be used to procure other types of services (e.g., administration
professional services) even though A/E firms are a potential source
to perform the proposed effort.
D. Noncompetitive
proposals is procurement through solicitation of a proposal from only
one source or, after solicitation from a number of sources, competition
is determined inadequate. Noncompetitive proposals may be used only
when the award of a contract is infeasible under small purchase procedures,
sealed bids (formal advertising), or competitive proposals. Circumstances
under which a contract may be awarded by noncompetitive proposals
are limited to the following:
(1) The
item is available from only a single source;
(2) After
solicitation of a number of sources, competition is determined inadequate;
(3) A public
exigency or emergency exists when the urgency for the requirement
will not permit a delay incident to competitive solicitation; and
(4) The
Department of Commerce and Economic Opportunity (DCEO) authorizes
noncompetitive proposals. (Sole-source procurement for supplies, equipment,
construction, and services valued at $25,000 or more must have prior
approval of DCEO.)
E. The Village
will provide, to the greatest extent possible, that contracts be awarded
to qualified small and minority firms, women business enterprises,
and labor surplus area firms whenever they are potential sources.
F. Any other
method of procurement must have prior approval of the DCEO.
The Village shall maintain records sufficient to detail the
significant history of a procurement, including the rationale for
the method of procurement, selection of contract type, contractor
selection or rejection, and the basis for the contract price.