PROCUREMENT POLICY_12_21_2022.pdf

SPALDING COUNTY WATER AND

SEWERAGE FACILITIES AUTHORITY

PROCUREMENT POLICY

Adopted: December, 21, 2022

119 East Solomon Street, Griffin, Georgia 30223

Table of Contents

PURPOSE

A. Fundamental Principles

B. Procurement Authority

C. Methods of Procurement

D. Procurement Documentation and Consideration of Bids and Proposals

E. Execution of Procurement Contract Documents

F. Contract Administration

G. Excluded from Procurement Policy

H. Sole and Single Source Procurements

I. Discretion to Waive the Competitive Process

J. Emergency Contracts

K. Cooperative Purchasing Agreements

L. Purchasing and Accounts Payable

M. Disposal of Surplus Materials or Equipment

N. Procurement Administrative Guidelines

PURPOSE

This procurement Policy (Policy) provides a broad overview of the standards and methods which will guide the Spalding County Water and Sewerage Facilities Authority (Authority) in obtaining goods, equipment, materials, and professional and technical services. It shall be the Authority's Policy to procure all goods and services in an open manner that permits, wherever possible, the agency to receive the best quality materials at the best price for the Authority's customers.

A. Fundamental Principles The Authority's Procurement Policy is guided by seven fundamental principles outlined below.

1. Foster open competition for Authority contracts;

2. Promote local economy and efficiency in Authority procurement activities;

3. Ensure adherence to proper standards of conduct by Authority Board Members, officers, and employees to guard against corruption, fraud, waste, and abuse;

4. Maintain procurement policies and procedures that ensure compliance with applicable state and federal laws and regulations;

5. Establish and maintain an arm's length relationship with all vendors;

6. Treat all prospective contractors, consultants, and vendors fairly and equitably; and

7. Provide appropriate public access to contracting information.

The following procurement and contracting policies have been developed based on these fundamental principles and the general public sector procurement standards.

B. Procurement Authority

1. Board Authorization is required for all procurements exceeding $50,000.

2. The Board, at its discretion, may authorize the General Manager to approve all procurements, execute agreements, amend agreements, and change orders in an amount greater than $50,000.

3. The General Manager is authorized to approve all procurements and agreements not exceeding

$50,000.

4. The General Manager may approve all contract amendments and change orders as follows:

a. When the original contract amount exceeds $50,000, (and has been approved by the

Board), the General Manager may approve amendments and change orders up to a total cumulative amount not to exceed $50,000.

b. When the Board Approves any contract amendment or change order, the General

Manager may approve subsequent contract amendments or change orders up to a total cumulative amount not to exceed $50,000.

c. The General Manager has $50,000 authorization to approve contract amendments and change orders after each board action on that contract.

5. The General Manager shall establish procedures for procurements less than $50,000.

C. Methods of Procurement

1. All purchases and contracts, whether informal or formal, shall be made on a competitive basis to the greatest extent practicable.

a. The Authority has a significant interest in encouraging the creation of employment opportunities for residents and businesses within Spalding County. Therefore, the

Authority may prefer local bidders when the difference between the lowest out-of-county and in-county bidder does not exceed five percent (5%).

A local bidder is considered a business whose principal place of business is located within

Spalding County or has held a valid business license with Spalding County for at least one

(1) year prior to the award of the purchase contract.

2. The method of procurement, such as informal bids or formal competitive bidding, shall be appropriate for the type of procurement and shall be in the Authority's best interest.

3. Competitive bids should be requested for maintenance repairs greater than $25,000 and awarded to the lowest responsive, responsible bidder. Alternative procurement methods, such as a design-build approach, may be utilized and in full compliance with all applicable requirements.

4. Formal competitive bidding should be used when purchasing goods and related services greater than $25,000 and awarded to the lowest responsive, responsible bidder. A best-value approach as defined in Section D below may be used in evaluating the bids received on a case-by-case basis.

5. Formal competitive proposals that evaluate factors in addition to price shall be used when purchasing professional services greater than $25,000.

6. An informal procurement method may be utilized for the purchase of goods and services when the estimated expenditure is greater than $15,000 but does not exceed $25,000. To the extent reasonable, a minimum of three (3) written quotes shall be obtained that permit prices and other terms to be compared. The Authority will make every effort to undertake adequate outreach to ensure open competition. The Authority's informal bidding procedures using the lowest responsive, responsible bidder standard for bid comparison will serve as the typical standard on which to base the purchase of materials, equipment, or supplies; unless it is determined in writing it is in the best interest of the Authority to apply a "best value" approach.

7. An informal procurement method may be utilized for the purchase of goods and services when the estimated expenditure does not exceed $15,000. To the extent reasonable, a minimum of one written quote shall be obtained.

8. In certain circumstances, a competitive negotiation process utilizing a Request for Proposal (RFP) process may be necessary or appropriate to accomplish the Authority's procurement goals, such as procuring specialized goods and related services.

9. The use of existing cooperative agreements, as defined in Section K below, resulting from cooperative procurement is encouraged in order to reduce duplicative effort and achieve cost economies.

10. The Authority may purchase items or services without further competition under the following conditions:

a. If the Authority rejects bids received in connection with the procurement of materials, supplies, and equipment requiring formal competitive bidding, or

b. When no bids or proposals are received in response to an Invitation to Bid or Request for

Proposals, in which case the General Manager is authorized to procure the required item or services through direct negotiations with a vendor or to resolicit as appropriate.

D. Procurement Documentation and Consideration of Bids and Proposals

1. Formal competitive bidding requires the preparation of bid documents that clearly set forth all requirements which must be fulfilled in order for the bid to be responsive and, once bids are received, an award, if made, to the lowest responsive and responsible bidder.

2. Formal competitive proposals, including the "best value" approach, require the issuance of RFPs, which clearly set forth all the requirements, and state the qualitative factors, in addition to price, which will be used to evaluate and rank the Proposals. If made, an award will be to the proposer receiving the highest consensus ranking based on the evaluation criteria outlined in the RFP, subject to successful negotiations with the Authority as applicable.

3. Authority Board approval is required when rejecting all bids received for any procurement exceeding $50,000.

4. The Authority may only contract with persons, firms, or entities that are qualified and possess the ability to perform successfully under the terms and conditions of the solicitation documents.

5. The General Manager is authorized to establish protest procedures for competitive bidding processes.

E. Execution of Procurement Contract Documents

1. All Authority contracts and amendments will be in writing and executed prior to beginning performance under the contract.

2. The General Manager shall execute all contracts, with an attestation by the Authority's Chairman, on behalf of the Authority that are duly approved by the Authority's Board and delegated to the

General Manager.

3. The General Manager shall determine procedures for executing contracts, amendments, and change orders not subject to Board approval.

F. Contract Administration Currently, the Authority does not have a procurement agent and therefore contracts all procurement activities through Spalding County. The General Manager will work with Spalding County's designee to ensure that contractors conform to the terms, conditions, and specifications of all contracts and ensure all purchases and services are received in a timely manner.

G. Excluded from Procurement Policy A non-exclusive list of examples of non-discretionary services not governed under this Policy includes, but is not limited to:

1. Electrical, water, or other regulated utility services provided by a municipality or vendor

2. Advertisements placed in a newspaper of general circulation

3. Non-discretionary Payments to other governmental agencies

4. Association dues

5. Professional Services

H. Sole and Single Source Procurements Regardless of the estimated cost of the procurement, the Authority is not required to engage in the competitive bidding process when procuring materials, equipment, supplies, or services for which there exists a single or proprietary sole source of supply. The General Manager is authorized to make a single or sole source determination in lieu of following the competitive procurement requirements outlined in

Section C of this Policy for procurement that does not exceed $100,000. When the total cumulative amount exceeds $100,000, the approval of single or sole source procurement shall be made by the

Authority Board.

I. Discretion to Waive the Competitive Process The Authority Board may waive the requirements for formal competitive bidding or other procedures set forth in this Policy when a determination is made that the best interest of the Authority are served thereby, and provided there is adequate documentation of the need for such material, supplies, equipment, or services. These circumstances shall be evaluated on a case-by-case basis, keeping in mind the fundamental principles of procurement set forth in this Policy. The findings justifying the waiver must be documented in the record.

J. Emergency Contracts For procurements requiring competitive bidding and/or Authority Board approval, in case of any sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss of impairment of life, health, property, or essential public services, the Authority Board hereby authorizes the General Manager to take all necessary and proper measures in such emergency conditions to maintain the Authority's system in operation. The Authority Board also grants the General

Manager the power to determine if sufficient time exists for competitive bidding and that public interest and necessity demand the immediate expenditure of public money to safeguard life, health, or property.

Suppose the General Manager makes such a determination. In that case, the General Manager may expend or enter into a contract involving the expenditure of any sum needed in such an emergency without observance of the provisions requiring competition, bids, or notice. The General Manager shall promptly report on the reasons and necessity for proceeding without a competitive solicitation to the

Authority Board at the next available meeting, provided that the General Manager reports to the

Authority Board no later than 30 days after the General Manager takes such emergency action. Upon hearing the General Manager's report, the Authority Board shall determine, by a majority vote, whether or not there is a need to continue the emergency action. The Authority Board shall continue to evaluate the emergency action, determining whether or not the emergency procurement is still required at every regularly scheduled meeting thereafter until the action is terminated.

K. Cooperative Purchasing Agreements To foster greater economy and efficiency, the Authority may avail itself of national, state, and local intergovernmental agreements to procure or use common goods, materials, and services. Joint procurements, state cooperative purchasing programs, and assignments of existing contract rights

("piggyback" procurements) with other public agencies may be used when consistent with applicable regulatory requirements. Such programs may be used in place of following the competitive bidding requirements set forth in this Policy.

L. Purchasing and Accounts Payable Currently, the Authority contracts all Purchasing and Account Payable activities through Spalding County.

The General Manager will work with Spalding County's designee to ensure that the Authority can take advantage of any prompt payment discounts suppliers offer.

M. Disposal of Surplus Materials or Equipment Due to procedural changes, certain supplies, materials or equipment are retired from use; design and specification changes sometimes leave commodities unused; new systems can produce stocks of leftover items; and the installation of more complex hardware can render older equipment obsolete. All of these retired, unused, and leftover items should be declared surplus or obsolete.

Declared surplus and obsolete items will be stored at the direction of the General Manager until requested by another department or until such time as the item(s) can be disposed of. Surplus supplies, materials, or equipment that the Authority cannot effectively utilize must be disposed of in a manner clearly most advantageous to the Authority as established by the General Manager.

N. Procurement Administrative Guidelines This Policy sets forth the standards and methods to be followed by the Authority in obtaining goods and services. Since the Authority does not have a procurement agent, all procurement services and activities are contracted through Spalding County. The Authority assumes Spalding County has implemented administrative guidelines and procedures consistent with applicable law and best procurement practices.