[HISTORY: Adopted by the Board of County Commissioners of
Charles County as indicated in article histories. Amendments noted
where applicable.]
[Adopted 6-1-1999 by Ord. No. 99-54[1]]
[Amended 2-28-2012 by Bill No. 2012-05; 5-22-2013 by Bill No.
2013-07; 9-19-2023 by Bill No. 2023-06[1]]
A.
Purchasing and procurement.
(1)
Purchasing and procurement authority designated. The Chief of Purchasing
shall be responsible for purchasing or contracting for all supplies
and contractual services required by using departments, except those
specifically exempted in writing by the County Commissioners.
(2)
Unlawful purchases or procurements. It shall be unlawful for any
officer or employee to purchase, contract or order any equipment,
supplies or services except as authorized by the Chief of Purchasing
or through the procedures defined herein, and the County shall not
be responsible for payment for any such unauthorized purchase or procurement.
B.
Formal procurement. Unless otherwise provided by law or by these
policies, all purchases or procurements with an aggregate value exceeding
$50,000 shall be made by formal procurement. All solicitations for
formal procurement shall be advertised and posted pursuant to state
and/or federal law. Full opportunity to participate shall be granted
to all qualified responsive and responsible vendors. Formal procurements
shall be publicly advertised as specified in County purchasing guidelines.
C.
Debarred/suspended.
Vendors may be debarred or suspended from participating in County
procurement by the Chief of Purchasing for any of the following reasons:
(1)
Refusal
or failure to timely execute a contract awarded as a result of a formal
procurement and/or fully comply with all requirements of a formal
procurement solicitation.
(2)
A contractor,
who has executed a contract with the County, may be considered to
have defaulted in the performance of the contract, by: failure to
comply with the requirements of the contract, substandard performance,
failing to complete the contract, and/or by other significant errors
and omissions.
(3)
If
they have been suspended or debarred by any County, state or federal
procurement authority.
(4)
For
other reasons as specified in County purchasing guidelines.
D.
Joint or cooperative purchases and procurements. The Chief of Purchasing
may engage in programs involving joint or cooperative purchases and
procurements with other public jurisdictions, including independent
agencies operating under state law, the State of Maryland, other counties
and municipalities and volunteer fire departments and rescue squads
of these jurisdictions. The Chief of Purchasing may utilize formal
bid contracts established by these jurisdictions when beneficial to
the County. This may be accomplished without specific Board approval
for individual transactions.
E.
Unit cost contracts. Unit cost contracts may be issued covering indeterminate
requirements of specific commodities and services where the unit cost
for the commodities or services is determined through competitive
bidding procedures and agreed upon at the beginning of the contract
period. The exact quantity to be purchased may be unknown. All unit
cost contracts shall include instructions as to release format, item
limitations, dollar limitations per purchase, if applicable, pricing
provisions and billing instructions. The Chief of Purchasing shall
make available to all using agencies information detailing the provisions
and pricing of unit cost contracts.
F.
Emergency and sole source procurement. Emergency or sole source procurement
may be used in the following instances:
(1)
Emergency purchase is necessary. An emergency shall be deemed to
exist when:
(2)
Supplies or services are proprietary in nature.
(3)
When competition is precluded because of secret manufacturing processes
or patent and/or copyrights and control of basic raw materials which
are only available from a single sole source and no equivalent processes,
products, services or materials can reasonably be obtained.
(4)
When competition has been unsuccessfully attempted. In such case,
the Chief of Purchasing shall document the firms and individuals contacted
and the date of such contact.
(5)
In cases where no bids are received, or only a single bid is received,
in response to formal advertising.
(6)
In circumstances when it is impracticable and/or in the best interest
of the County.
G.
Competitive pricing. Whenever practicable, it shall be the policy
of the Purchasing Division to secure adequate competition to assure
that the purchase or procurement is made at the lowest possible cost
consistent with the quality and delivery requirements of the using
agency and the provisions of this section. Competitive pricing shall
be obtained and at least three quotes documented in all transactions
estimated to result in expenditures of $5,000 to $50,000. If three
quotes cannot be obtained, information shall be documented in the
file to that effect. Verbal quotes or written quotes may be utilized.
H.
Small procurement cards. Small procurement cards may be issued covering
indeterminate requirements of commodities and services. This system
is to provide an expeditious means of obtaining incidental items as
needed. Small procurement cards are limited to $2,500 per purchase.
All small procurement cards shall include instructions to the vendor
as to release format, item limitations, if applicable, dollar limitations,
billing instructions and identification of persons expressly authorized
to conduct such orders. Employees authorized to purchase under the
small procurement card procedures are provided with identification
cards, which are issued by and may be rescinded by the Chief of Purchasing.
Small procurement cards must be turned in to Purchasing upon the termination
of employment of the cardholder or employee becomes ineligible for
card.
I.
Requisitions. The purchase requisition or online request shall be
used in all cases as an instrument for requesting contractual services
or commodities. Requisitions shall be approved by the appropriate
authorized department personnel prior to submitting to Purchasing.
Requisitions with incomplete or inaccurate information shall be rejected
by Purchasing.
J.
Purchase orders. Purchase orders shall not be prepared without a
substantiating, approved requisition from the using department. All
purchases greater than $2,500, unless excepted, shall be prepared
on a purchase order form, except for long-term supply contracts and
small dollar purchases, which may be accomplished via other methods
described herein. In the instance of long-term supply contracts or
formal procurement, the vendor shall be notified of County intent
to award.
K.
Verification of funds prior to purchase required. Except for emergency
purchases, no purchase exceeding $2,500 shall be made until the availability
of funds for the designated purpose is verified and purchase order
issued.
L.
Negotiations with vendors. No officer or employee of the County shall
negotiate directly or indirectly with any vendor except with the approval
of the Chief of Purchasing. Contact with employees in using departments
by suppliers' representatives should be through or with the knowledge
of the Chief of Purchasing. The Chief of Purchasing or designee may
enter negotiations with vendors or request clarifications.
M.
Communications with vendors. Insofar as possible or practical, any
communications with vendors should be in writing to avoid misunderstandings
and to provide an historical file.
N.
Purchases considered as possible conflicts of interest. Purchases of supplies, materials or services from a member of the governing body of Charles County or from members of his or her immediate family; or from any other officer or employee of the County or members of his or her immediate family; or from any member or employee of a commission, board or corporation controlled or appointed by the Commissioners or from members of his or her immediate family shall be documented to provide a record for the public establishing that the purchase was made in the best interest of the County, price and other factors considered. All such purchasing activity must comply with the provisions of the Charles County Code of Ethics, Chapter 170 of the Code of Charles County.
O.
Purchases of capital assets. Purchases of capital assets, items with
a useful life exceeding three years and costing $5,000 or more, shall
require capital asset designation in addition to the purchase order.
Trade-ins of assets shall be performed by the Chief of Purchasing
only, and should only be done if the Chief of Purchasing can demonstrate
that it is highly probable that this would provide a better economic
value than if the asset were auctioned. Trade-ins also require the
approval of the Chief of Purchasing or designee. Rental/purchase arrangements
shall be reviewed by the Chief of Purchasing or designee, and approved
in advance, similar to other capital purchases. Purchases of used
assets must be specifically approved by the Chief of Purchasing or
designee.
P.
Public availability of pricing information. Prices obtained through
open competition and quotations are available to the public with written
request to the Chief of Purchasing in accordance with County, state,
and/or federal law, as applicable.
Q.
Purchasing and procurement standards.
(1)
Preferential purchasing and contracts prohibited. Except as approved
by this section, it is not permissible to favor any particular individual
or firm with orders or to give vendors information which will give
anyone advantage over others seeking County business.
(2)
Local purchases and contracts. Unless otherwise provided by this
section or by other applicable law, purchasing of goods or services
from vendors whose principal place of business is physically located
in Charles County is considered in the best interest of the County,
provided that cost, quality, specifications and delivery are deemed
equivalent. In the event that these provisions cannot be met, it then
shall be considered in the County's interest to procure from a vendor
whose principal place of business is located in the State of Maryland.
(3)
Small Local Business Enterprise Program. This section establishes
the Small Local Business Enterprise (SLBE) Program. Under this program,
preference may be given to Charles County Small Businesses which qualify
pursuant to the provisions of this section and become registered in
the program. Preferences utilized shall include, but may not necessarily
be limited to, a percentage preference applied to bids/quotes, preference
points applied to proposal evaluations, and a small local business
reserve. The Small, Local, and Minority Business Enterprise Programs
Division shall administer the SLBE Program and such processes, procedures
and guidelines for using departments and vendors necessary for the
efficient administration of the program.
(a)
The initial preference percentages, evaluation points, reserve
level and caps shall be established by Commissioner resolution and
shall be part of and incorporated into this section by reference.
Future modifications, if any, to these parameters, or the definition
of a local business, shall be by resolution of the County Commissioners.
(b)
BROKER
[1]
[a]
[b]
[c]
[2]
LOCAL BUSINESS
SMALL BUSINESS
SMALL LOCAL BUSINESS
SMALL LOCAL BUSINESS RESERVE
Definitions. In this section, the following words have the meanings
indicated:
A person that conducts business (other than real estate,
investment, or insurance sales) on a pass-through basis and with respect
to:
Supplies:
Does not own, operate, or maintain a place of business in which
supplies of the general character required under the contract are
kept in stock in the regular course of business;
Does not regularly assume physical custody or possession of
supplies of comparable character to those offered to the County; or
Exclusively acts as a middleman in the provision of supplies
offered to the County; or
Services: does not regularly maintain the capability, capacity,
training, experience, and applicable regulatory licensing to directly
perform the principal tasks of a contract with the County, and acquires
the services elsewhere, for the benefit of the County.
A business in Charles County that has:
A business that is certified and maintains its certification
in the State of Maryland Small Business Reserve Program.
A for-profit business, other than a broker, that meets the
definitions and criteria for both a small and local business under
this section.
Those procurements that are limited to responses from local
small businesses as defined herein and which do not exceed informal
bid limits as may be adopted and modified from time to time by the
County Commissioners.
(c)
Small local business eligibility.
[1]
A small local business shall be certified in the State of Maryland
Small Business Reserve (SBR) Program, shall maintain that certification
and shall comply with all provisions of the state program, including
annual recertification.
[2]
In addition to obtaining and maintaining certification in the
state program, a small local business shall meet all additional County
program requirements at the time of the submission in order to be
eligible for any SLBE program preference.
[3]
A small local business is no longer eligible to participate
in the program when:
[a]
The business has received more than $3 million
in awards within any sixty-month period based upon their SLBE status
either as a prime contractor or a subcontractor; or
[b]
The business exceeds the maximum annual gross sales
or maximum number of employees established in the criteria for certification
in the Maryland Small Business Reserve Program; or
[c]
No longer complies with the definition of a local
business.
(4)
Discontinuation of Maryland Small Business Reserve Program. In the
event the State of Maryland discontinues its Small Business Reserve
Program, the County Small Local Business Enterprise Program shall
continue under the last small business reserve gross sales, employee
and other criteria in effect at the time of the termination of the
state program and the Small, Local, and Minority Business Enterprise
Programs Division shall establish procedures to implement and maintain
an equivalent small business certification process to that of the
state program.
(5)
Exclusions. In addition to the exclusions contained in the aforementioned
resolution, the President of the County Commissioners may waive the
application of this section to a specific purchase if it conflicts
with the overall objectives and responsibilities of this chapter or
would be contrary to the best interests of the County.
(6)
Enforceability. This section does not give any person, including
a small local business, any right or status, including standing, to
challenge the award of a contract or subcontract under the County
procurement system.
(7)
Penalties. A person must not willfully make a false statement to
a County employee for the purpose of obtaining eligibility in the
Small Local Business Enterprise Program under this section or fraudulently
obtain, or attempt to obtain, or aid another person in fraudulently
obtaining or attempting to obtain a contract or funds to which the
person is not entitled to under this section. A violation of this
section shall be deemed to constitute a material breach of any contract
awarded by the County and the Purchasing Division may terminate the
contract or exercise any other appropriate remedy available to it.
In addition, any person or firm found to have violated these provisions
may be disqualified by the Purchasing Division from doing business
with the County for up to two years.
R.
Maintenance of files and records. Complete files are to be maintained
in the Purchasing Division consisting of at least the following:
S.
Violations of policies and procedures. The Director of Fiscal and
Administrative Services shall immediately report to the County Administrator
the following for administrative action or referral to the County
Attorney:
(1)
Any violations of purchasing and procurement policies.
(2)
Any situation where a vendor is not responsive or cooperative in
providing requested information or invoices after reasonable attempts
to secure same have been made.
(3)
Any unusual delays in awarding contracts due to nonresponsiveness
of using agencies.
(4)
Abuse of the emergency purchase order system by a particular employee,
division or department/agency.
(5)
Capital purchases, not properly charged to capital outlay or preapproved
by the County Administrator.
[1]
Editor's Note: This bill provided that it shall take effect
7-1-2024.
[Amended 2-28-2012 by Bill No. 2012-05; 5-22-2013 by Bill No.
2013-07; 9-19-2023 by Bill No. 2023-06]
A.
Specifications.
(1)
Preparation; changes or modifications. The preparation of proper
specifications is jointly the responsibility of the using department
and the Purchasing Division. Prior to issuance of the solicitation,
the Chief of Purchasing may modify those specifications submitted
by the using department/agency to permit competitive bidding and provide
for a level of quality commensurate with the intended use of the article.
The Chief of Purchasing shall notify the using department/agency of
their intent and provide the agency with full particulars regarding
the need, reason, extent and nature of the changes. Disputes shall
be referred through the Director of Fiscal and Administrative Services
to the County Administrator for resolution.
(2)
Standards of quality. A primary consideration in the preparation
of specifications shall always be that the proposed expenditures are
derived from public funds and administered by public agencies. Therefore,
luxury or deluxe level of quality may not be in the public interest.
The specifications shall reflect an adequate, standard quality of
merchandise consistent with the end use requirements and shall represent
an optimum relationship between quality and prices.
(3)
Types of specifications.
(a)
Technical or design specifications. These shall describe in
detail the construction of the item desired.
(b)
Performance specifications. These describe the function and
use of the product as the basic definition.
(c)
"Or equivalent" notation. This may be used to identify the level
of quality desired and must always be used when a brand name is noted
on a request.
(4)
In using any of the above types of specifications, it shall be the
responsibility of the Chief of Purchasing to afford a basis for full
and fair competitive bidding.
B.
Bid security and/or bonds. The use of bid surety and/or performance
or payment bonds is at the discretion of the Chief of Purchasing.
Bid security, in the form of a certified check or bonds, shall be
for a specific sum of money. All bid and performance bonds shall be
issued by companies licensed to do business in the State of Maryland.
Bid securities shall be returned to the unsuccessful bidders immediately
after contract execution and to the successful bidder only after receipt
of his performance and payment bonds and proper execution of the contract.
Failure to execute the contract or furnish required bonds within the
specified time may result in forfeiture of the bid security to the
County Commissioners as liquidated damages.
C.
Formal procurement submissions.
(1)
Sealed submissions must be received and opened at the prescribed
time and date. Submissions received after the prescribed time, regardless
of reason, will be returned to the vendor unopened. No submission
may be changed or withdrawn after opening.
(2)
The Chief of Purchasing shall be responsible for setting the amount
of bonding required, if any. If a bid invitation specifies that a
bid surety shall be submitted and such surety is omitted, the bid
will not be read, recorded or considered.
(3)
All bids shall be publicly opened, read aloud and recorded. The tabulation
shall be available for inspection in the Purchasing Division and made
available to vendors in attendance. The Chief of Purchasing shall
not attempt to give interpretations or answer questions until such
time as the Chief has had adequate time to review and study submissions.
Proposals received in response to a request for proposals shall not
be publicly opened or read aloud.
(4)
A representative from the using agency or department is encouraged
to attend the bid opening. At times, when an unusually complex or
extensive bid is to be opened, the Chief of Purchasing may request
the attendance of the County Attorney.
D.
County
review and pre-award activities.
(1)
Submissions
received in response to a formal procurement shall be reviewed for
responsiveness and in accordance with criteria set forth within the
solicitation. Bid and quote submissions shall be reviewed for responsibility.
Proposal submissions shall be evaluated in accordance with the criteria
specified in the solicitation.
(2)
Purchasing
Division may request clarification, revised bids, best and final offers,
or any other information from vendors as determined in the best interest
of the County prior to contract execution by the County.
E.
Cancellation
of formal procurement.
(1)
Notice.
Each solicitation issued by the Purchasing Division shall state that
the solicitation may be cancelled as provided in this provision.
(2)
Cancellation
before opening. The County may cancel any formal procurement before
opening if the Purchasing Division, with approval of the appropriate
using department head or designee, determines that this action is
fiscally advantageous to the County or otherwise in its best interest.
(3)
Cancellation
of solicitation after opening or rejection of all submissions. After
opening of submissions but before contract execution by the County,
the solicitation may be canceled or all submissions may be rejected
in whole or in part when the Purchasing Division, with the approval
of the appropriate using department head or designee, determines that
cancellation is fiscally advantageous or otherwise in the County's
best interest.
(4)
Documentation.
The determination of the reasons for cancellation or rejection of
all submissions in response to a solicitation shall be made a part
of the procurement file.
F.
Contract award.
(1)
All formally advertised contracts shall be awarded by the Board of
County Commissioners through the County Administrator, upon recommendation
of the Director of the Department of Fiscal and Administrative Services,
in accordance with budget policies and delegated authorities and procedures
adopted by the Board as may be modified from time to time. Any extensions
or modifications of existing contracts may be approved based upon
the following delegations. For contract extensions, the delegation
limit is based upon the annual maximum value of the contract extension.
For contract modification, the delegation limit is based upon the
cost of the modification, if any. Modifications and change orders
shall be processed and approved in accordance with delegated authorities.
(2)
The award recommendation shall include the following information:
G.
Notification to vendors.
(1)
Successful contractor. After a formal procurement has been awarded
by the Board of County Commissioners, the Chief of Purchasing shall
notify the successful contractor. Award is contingent upon completion
of the protest period. The successful contractor shall be notified.
(2)
Unsuccessful vendors. The Chief of Purchasing shall be required to
issue notifications to the unsuccessful vendors and return bid bonds
or a certified check if included as a submission requirement.
A.
Methods of disposition. The Chief of Purchasing is responsible for
the disposition of surplus, obsolete and scrap supplies and equipment.
Disposition may be made in any of the following ways:
(1)
Request vendor to substitute for other material.
(2)
Transfer to other County departments or agencies.
(3)
Return to supplier for credit.
(4)
Outright sale via advertised bid or auction.
(5)
Scrapping by disposal in the landfill or by other appropriate means
when the item has no cash value, or when the cash value is less than
the administrative costs to process the item for sale. The Chief of
Purchasing shall make this determination.
[Amended 5-22-2013 by Bill No. 2013-07]
(6)
Trade-in, with the approval of the Chief of Purchasing.
[Amended 5-22-2013 by Bill No. 2013-07]
(7)
Sell for salvage value.
[Added 5-22-2013 by Bill No. 2013-07]
(8)
By donation with the approval of the County Administrator.
[Added 5-22-2013 by Bill No. 2013-07]
B.
Lists of obsolete or scrapped supplies or equipment.
(1)
Submission; contents. All agencies shall periodically submit to the
Chief of Purchasing a listing of any supplies and equipment which
are no longer used or which have become obsolete, worn out or scrapped.
This listing should include a full description, including serial numbers,
condition, estimate of value, suggested disposition and when and where
the item(s) can be inspected.
(2)
Review. The Chief of Purchasing will review all lists to determine
the possible use of any surplus property by another agency.
C.
Sale of property.
(1)
Bids. All bids are to be properly recorded with each transaction
and held available for inspection in the files of the Purchasing Office.
(2)
Notification; transfer of title. Notification of award shall be made
by letter from the Chief of Purchasing. After payment, a receipt issued
by the Chief of Purchasing shall constitute transfer of title to the
property to the buyer.
(3)
Transfer of title of motor vehicles will be conducted by the Fleet
Manager of Department of Public Works-Facilities.
[Added 5-22-2013 by Bill No. 2013-07]
D.
Use of proceeds. Gains on disposal of assets shall be calculated
and reported in a separate general ledger revenue account in the general
fund or an enterprise fund, as applicable. Such gains, if significant,
may be used as a revenue source for purchases of replacement assets,
if specifically approved by the County Commissioners.
A.
The responsibilities and authorities of the Charles County Chief
of Purchasing and the County Commissioners, as defined in this chapter,
shall be delegated to the Sheriff of Charles County for the purchase
of all materials, equipment and services for agencies over which the
Sheriff has expenditure control and responsibility.
B.
The Charles County Sheriff shall otherwise comply with all other
purchasing policies and procedures as defined under this chapter to
the extent applicable.
C.
The Charles County Purchasing Division shall be available to assist
the Sheriff in providing information regarding potential suppliers,
specifications, open supply contracts and other relevant information.
[Amended 9-19-2023 by Bill No. 2023-06]
D.
The Charles County Sheriff shall establish internal controls surrounding
purchasing transactions to ensure that:
(1)
Proper purchasing and accounting records are maintained.
(2)
Proper approvals for purchases are obtained.
(3)
Competitive bidding policies and procedures are followed.
(4)
Sole-source or emergency purchases are documented and approved.
(5)
Receipt of merchandise is properly controlled and documented.
(6)
Inventory records are properly maintained.
(7)
Check requests to the Department of Fiscal and Administrative Services
are adequately documented.
[Amended 9-19-2023 by Bill No. 2023-06]
(8)
Disposition of surplus property is properly controlled and recorded
in the Accounting records.
E.
The internal control policies and procedures established by the Sheriff
shall be documented, in writing, and are subject to the approval of,
modification by or audit ordered by the County Commissioners of Charles
County.
F.
The Director of the Department of Fiscal and Administrative Services
and the internal auditor for the County Commissioners shall be available
to assist in documenting or setting up internal control policies and
procedures for the Charles County Sheriff.
[Added 5-22-2013 by Bill No. 2013-07]
As used in this article, the following terms shall have the
meanings indicated:
A business that is certified and maintains its certification
with the State of Maryland Department of Transportation, Minority
Business Enterprise Program, or other bona fide certification accepted
by the County.
A.
A minority-owned, woman-owned, or disadvantaged business shall be
certified in the State of Maryland Department of Transportation (MDOT)
Minority Business Enterprise Program, or other bona fide certification
accepted by the County. MWBE vendor shall maintain that certification
and shall comply with all provisions of the that program, including
annual recertification.
A.
Policy. The following practices and procedures apply to the minority-
and women-owned business enterprises (MWBE) in County procurement
activities for commodities and services.
B.
Practices/procedures. The program goals, practices, and procedures
shall be established by Commissioner resolution and shall be part
of and incorporated into this section by reference.
C.
Exclusions.
In addition to the exclusions contained in the aforementioned resolution,
the President of the County Commissioners may waive the application
of this article to a specific contract, bid, or proposal if it conflicts
with the overall objectives and responsibilities of this chapter or
would be contrary to the best interests of the County.
D.
Enforceability.
This section does not give any person, including a MWBE business,
any right or status, including standing, to challenge the award of
a contract or subcontract under the County procurement regulations.
E.
Penalties.
A person must not willfully make a false statement to a County employee
for the purpose of obtaining eligibility in the MWBE program under
this section or fraudulently obtain, or attempt to obtain, or aid
another person in fraudulently obtaining or attempting to obtain,
a contract or funds to which the person is not entitled to under this
section. A violation of this section shall be deemed to constitute
a material breach of any contract awarded by the County, and the Purchasing
Division may terminate the contract or exercise any other appropriate
remedy available to it. In addition, any person or firm found to have
violated these provisions may be disqualified by the Purchasing Division
from doing business with the County for up to three years.
