[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]]
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 agencies, except those
specifically exempted in writing by the County Commissioners.
[Amended 5-22-2013 by Bill No. 2013-07]
(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.
Competitive bidding. Unless otherwise provided by law or by these
policies, all purchases or procurements with an aggregate value exceeding
$25,000 shall be made by advertised bid. All solicitations for bids
shall be advertised and posted pursuant to law. Full opportunity to
bid shall be granted to all qualified responsive and responsible bidders.
Vendors may be removed from the bidders' list by the Chief of
Purchasing for any of the following reasons:
[Amended 2-28-2012 by Bill No. 2012-05; 5-22-2013 by Bill No.
2013-07]
C.
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.
D.
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
distribute to all using agencies information detailing the provisions
and pricing of unit cost contracts.
[Amended 5-22-2013 by Bill No. 2013-07]
E.
Emergency and sole source procurement. If the purchase or contract
is over $25,000, the President of the Board of County Commissioners
shall approve it after review by the County Administrator. There are
instances when an emergency or sole source procurement is necessary.
The following is a list of examples:
[Amended 5-22-2013 by Bill No. 2013-07]
(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.
F.
Competitive pricing. Whenever practicable, it shall be the policy
of the Purchasing Office 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 $24,999. If three
quotes cannot be obtained, information shall be documented in the
file to that effect. Phone quotes or written quotes may be utilized.
[Amended 2-28-2012 by Bill No. 2012-05; 5-22-2013 by Bill No.
2013-07]
G.
Small procurements. 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 $1,000 per purchase.
All small procurement cards shall include instructions to the vendor
as to release format, item limitations, 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.
[Amended 5-22-2013 by Bill No. 2013-07]
H.
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
supervisor prior to submitting to Purchasing. Requisitions with incomplete
information shall be rejected by Purchasing.
I.
Purchase orders. Purchase orders shall not be prepared without a
substantiating, approved requisition from the using department. All
purchases greater than $1,000, unless excepted, but less than $25,000
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 advertised procurement, a contract award notice will
be mailed to the vendor.
[Amended 5-22-2013 by Bill No. 2013-07]
J.
Verification of funds prior to purchase required. Except for emergency
purchases, no purchase exceeding $1,000 shall be made until the availability
of funds for the designated purpose is verified.
[Amended 5-22-2013 by Bill No. 2013-07]
K.
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.
L.
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.
M.
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.
N.
Purchases of capital assets. Purchases of capital assets, items with
a useful life exceeding three years and costing $5,000 or more, shall
require a 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. Rental/Purchase
arrangements shall be coordinated only by the Chief of Purchasing,
and approved in advance, similar to other capital purchases. Purchases
of used assets must be specifically approved by the Chief of Purchasing.
[Amended 5-22-2013 by Bill No. 2013-07]
O.
Public availability of pricing information. An open record policy
shall be maintained whereby prices obtained through open competition
and quotations are available to the public after a purchase is made
upon receipt of a written request to the Chief of Purchasing.
P.
Purchasing and procurement standards.
[Amended 2-28-2012 by Bill No. 2012-05]
(1)
Preferential purchasing and contracts prohibited. Except as proved
by this section, it is not permissible to favor any particular individual
or firm with orders or to give those submitting bids or quotations
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, preference
points applied to proposal evaluations, and a small local business
reserve. The Purchasing Division of the Department of Fiscal and Administrative
Services shall implement the SLBE Program and adopt detailed procurement
and purchasing processes, procedures and guidelines for using agencies
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
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 with respect to supplies
and services.
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 Program (SBPR), 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 of a bid or proposal
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 Purchasing 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 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.
(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.
Q.
Maintenance of files and records. Complete files are to be maintained
in the Purchasing Division consisting of at least the following:
[Amended 5-22-2013 by Bill No. 2013-07]
R.
[1]Violations of policies and procedures. The Director of
Fiscal 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 agency.
(5)
Capital purchases, not properly charged to capital outlay or preapproved
by the County Administrator.
[1]
Editor’s Note: Former Subsection R, regarding additional
detailed purchasing and procurement procedures, was repealed 5-22-2013
by Bill No. 2013-07. This bill also redesignated former Subsection
S as Subsection R.
A.
Specifications.
(1)
Preparation; changes or modifications. The preparation of proper
specifications is jointly the responsibility of the requesting department
and the Purchasing Division. Prior to obtaining bids, the Chief of
Purchasing may modify those specifications submitted by the using
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 agency of his 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 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.
[Amended 2-28-2012 by Bill No. 2012-05]
B.
Bid security and/or performance 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 award of the contract 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.
Receipt and opening of bids.
(1)
Sealed bids must be received and opened at the prescribed time and
date. Bids received after the prescribed time, regardless of reason,
will be returned to the bidder unopened, with a letter of explanation.
No bids may be changed or withdrawn after bid opening.
(2)
The Chief of Purchasing shall be responsible for setting the amount
of bid bond 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 Office and made
available to vendors in attendance. The Chief of Purchasing shall
not attempt to give interpretations or answer questions until such
time as he has had adequate time to review and study proposals.
(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.
Contract award.
(1)
All formally advertised contracts shall be awarded by the Board of
County Commissioners through the County Administrator, upon recommendation
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 conract 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 resulting in an increase
of more than 10% of the original contract amount must be submitted
to the County Administrator for approval, regardless of the actual
dollar amount of the modification.
[Amended 5-22-2013 by Bill No. 2013-07]
(2)
The Director of Fiscal and Administrative Services shall submit a
written award recommendation to the President of the Board of County
Commissioners through the County Administrator covering each formally
advertised contract in excess of $25,000. This award recommendation
shall include the following information:
[Amended 5-22-2013 by Bill No. 2013-07]
E.
Notification to bidders.
(1)
Successful bidders. After a bid has been awarded by the Board of
County Commissioners, the Chief of Purchasing shall notify the successful
bidder. The following methods of notification may be used:
(2)
Unsuccessful bidders. The Chief of Purchasing shall be required to
issue notifications to the unsuccessful bidders and return bid bonds
or a certified check if included as a bid 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 Office shall be available to assist
the Sheriff in providing information regarding potential suppliers,
specifications, open supply contracts and other relevant information.
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 Services are adequately
documented.
(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]
[Adopted 5-22-2013 by Bill No. 2013-07[1]]
[1]
Editor’s Note: This article was originally adopted as
Ch. 204, but was redesignated to maintain the organization of the
Code.
As used in this article, the following terms shall have the
meanings indicated:
As defined in the State of Maryland Department of Transportation's
Minority Business Enterprise Program for state contracts, which includes
African Americans, American Indians/Native Americans, Asians, Hispanics,
women and physically or mentally disabled persons and disabled American
veterans.
A.
Minority businesses can be qualified through Federal 8(A) Registration,
the State of Maryland Department of Transportation's Minority
Business Enterprise Program registration or a Charles County government-administered
certification process.
A.
Policy. The following practices and procedures apply to the minority
business enterprises (MBES) in County procurement activities for commodities
and sources.
B.
Practices/procedures. The Charles County Purchasing Office shall:
(1)
Maintain/provide information regarding the state of Maryland Department
of Transportation's certified MBE/business and program. Provide
technical assistance regarding forms to complete, where to submit
certification application form(s), who to contact for technical questions,
and related matters.
(2)
Provide maximum opportunity for MBES to participate in the County's
procurement process through dissemination of bid information and solicitations
in publications which primarily target MBE firms.
(3)
Include a mandatory MBE questionnaire in all bid solicitations which
would identify the MBE status of a given firm and the total percentage
of the overall contract which would be provided by MBE firms.
(4)
Include in every bid solicitation package either a copy of the entire
MBE program or those elements of the program which would apply to
that particular solicitation.
(5)
Include a statement in every bid solicitation that "certified minority
business enterprises are encouraged to respond."
(6)
Encourage the use of MBE subcontractors by contractors which have
been awarded County construction contracts in order to meet the established
15% and 25% short and long-term goals, respectively.
(7)
Identify and seek qualified MBES through participation in business
opportunity fairs/seminars, meetings, trade shows, as well as communication
with procurement personnel in other jurisdictions and through directories
that identify MBE firms.
(8)
Identify and highlight at County pre-bid meetings the County's
MBE program and the specific goals which the County has established
to encourage the participation of MBE firms.
(9)
Provide technical assistance to MBE firms regarding the County's
overall procurement and bidding procedures.
(10)
Establish a local MBE clearinghouse where invitation to bid
packages, including plans and specifications, will be forwarded by
the purchasing office, for all commodity, services, and construction
bids/contracts.
(11)
Maintain statistics and report annually on the number of MBES
awarded contracts/subcontracts, and total dollar value and percentage
of total contracts/subcontracts awarded MBES, by certification type.
(12)
Maintain a list of all minority contractors receiving awards
and applying for County certification.