Procurement at Southwestern Community College

1. Procurement at Southwestern Community College Priya Jerome Director of Purchasing Contracting and Central Services John Brown Director of Facilities, Leasing and Planning

2. Overview • The Purchasing Department at SWC adheres and applies the statues as dictated by the Public Contracts Code, Education Code and Government Code wherever applicable. • Absent a statutory requirement (PCC 20111, 20651 see tab 1)all purchases made are subject to primary due diligences: • Purchases are made against department requisitions; • All vendors are bonafide business entities with tax identification numbers and are set up to do business with SWC after credit worthiness is checked; • All purchases are made thru a District issued Purchase Order (PO) against the terms identified in the PO;

3. Overview Contd. • All PO’s are issued against formal quotes/proposals. When undertaking a higher dollar value purchases a minimum of 3 quotes from potential vendors are sought to identify the best value. • Hence where no statutes requires for us to follow competitive bidding procedures, the purchasing office issues Purchase Orders (act as contracts) without bidding.

4. Competitive Bidding PURPOSE The competitive bidding requirement is founded upon public policy declared by the legislature to protect taxpayers from fraud, corruption and carelessness on the part of the public officials and the waste and dissipation of public funds.

5. Competitive Bidding • The purpose of competitive bidding has been summarized as follows: • Invites Competition • Guards against: • Favoritism • Fraud • Improvidence • Extravagance • Corruption • Secures the best work • Supplies the lowest price practicable • Protects property holders and tax payers • Not for the benefit or enrichment of bidders

6. Competitive Bidding • As such, the competitive bidding process that is based on public policy declared by Legislature is designed to (Public Contracts Code (PCC) 20111/20651): • BE SELF REGULATORY • Be with little to no room for modification of the code prescribed process • Applies the same rules of contract law which generally apply to contracts • Bids are irrevocable offers or options • Contracts made without compliance with competitive bidding, where such bidding is required by statue, is void and unenforceable. • No contract is valid or constitutes as an enforceable obligation against the District unless the contract is approved or ratified by the Governing Board, and said approval or ratification is evidenced by a motion that is duly passed and adopted by the Board. (Education Code 81655 see tab 2)

7. Competitive Bidding Public Bidding Thresholds Pursuant to PCC Sections 20111 – 20651, Community College Districts must competitively bid any contract involving expenditure of: • More than $15,000 for construction work/public projects; • More than $81,0001 for materials, equipment or supplies to be furnished, sold or leased to the District. • Repairs including maintenance that are not a public project 1 This Threshold amount is adjusted annually by the Superintendent of PublicInstruction to reflect the percentage change in the annual value of the Implicit Price Deflator for the State and Local Government Purchase of Goods and services for the US, as published by the US department of Commerce for the twelve month period ending in the prior fiscal year.

8. Statutory Exceptions to Competitive Bidding (not limited to) • Purchase through other public agencies “Piggy – Back” (Ed. Code 17595, PCC 20118, 20652, 20653 and Govt. Code 14931) • Acquisitions from California Multiple Award Schedules (CMAS) (PCC 10290-10299 and 12100) (See Tab 3) • Change Orders for Materials and Supplies (PCC 20118.4/20659) • Procurement of Electronic Data Processing Systems (PCC 20118 and Ed. Code 81645) • Educational Material (PCC 20118 and Ed. Code 81651)

9. Statutory Exceptions to Competitive Bidding (not limited to) • Surplus Federal Property (Ed. Code 17620/81653) • Energy Service and Conservation Contracts (Ed. Code 81660) • Emergency Repair Contracts (PCC 20113/20654) • Day Labor (PCC 20655) • Joint Purchasing Agency Purchasing Agreements (Govt. Code6500)

10. Statutory Exceptions to Competitive Bidding • Contracts for Special Services (Govt. Code 53060, 4525 - 4529) (See tab 4) • Special Services include (and are not limited) engineering, architects, land surveyors, attorneys, construction managers, accountants, etc. • Design – Build • Lease/Sublease (Ed. Code 81330) • Design – build Contracts (Ed. Code 81700) • Sole Source

11. Bids Versus Request for Proposal (RFP)

12. Bids Versus Request for Proposal (RFP) contd..

13. Bids Versus Request for Proposal (RFP) contd..

14. Bids Versus Request for Proposal (RFP) contd..

15. Bid Documents for Public Projects • Invitation to Bid (advertisement) • Addendum’s • Instructions /Information to Bidders • Bid Form • Non-collusion Affidavit • Designation of Subcontractors • General Conditions • Special Conditions • Bid Bond • Specifications/Drawings/Plans

16. Bid Documents for Public Projects contd.. • Notice to Proceed • Workers Compensation Certificate • Certificate of Insurance • Agreement • Performance Bond • Payment Bond for Public Works • DSA-13 • Notice of Completion when contract is accepted and completed.

17. Services required for Public Projects • Architecture and Engineering (RFQ) • Professional licensed services • Construction Contracts (IFB) • Support services for construction (RFQ/RFP) • Inspector of Record • Testing services • Construction management • Program management

18. Different Services/Different Procurement (contracting) Requirements • Design Professional services Request for Qualifications (RFQ) • Selection committee makes recommendation • Other services (RFQ/RFP/Firm Bids) • Selection committee makes recommendation • Public works construction (Invitation for Bids) • Public bid opening, sealed bids • POST Award contract administration

19. Governing Board Oversight • Must approve all contracts and contract actions • Staff makes recommendations to Governing Board based on codes, process, and results • Board reviews staff process, analysis, and recommendation (accepts or rejects) • Ratifications – special considerations especially for construction changes

20. Architecture and Engineering A/E services • Architecture and Engineers (A/E) • Request For Qualifications (RFQ) • May provide specific project or criteria (e.g. Theatre design) • “Selection” is qualifications based: for • licensed professional and provides a design • Typically committee reviews qualifications • Typically interviews performed on “short List” • Price is not a factor in selection • Upon selection enter into negotiations on price/fee (similar to personnel hiring process) • Often times A/E provides a sealed proposal • Governing Board sees staff recommendation for firm and contract (scope of services and fees)

21. Support Services • E.g. Inspectors, Testing services, Construction Managers • Advertise for Request for Qualifications/Request for Proposals (RFQ/RFP) • Selection criteria published in Solicitation • Reviewing and ranking process • Similar to public hiring process for personnel • Committee reviews respondents • Short list published • Request proposals from short list • Governing Board sees staff recommendation and contract (contract and pricing) for recommended firm

22. Construction • Public works construction is awarded in accordance with PCC 20111/20651 for Community Colleges. • Formal Invitation for Bid (IFB), • Bid invited on available plans and specifications • May require pre-qualifications • Public bid opening • Award to the lowest, responsive, responsible bidder • Staff can review requests to withdraw from bidder • Staff can recommend to reject bid based on criteria • Governing Board sees staffs analysis of lowest responsive responsible bidder to the IFB and recommendation to award

23. Always Exceptions/Variations to Public Works Construction • CM at Risk (CMR) • CM Multi Prime (CM MP) • Design/Build (A/E with Contractor) • Best Value selection • Lease-Lease Back • Best Value Selection • If Governing Board desires more information schedule a brief training with the San Diego County Office of Education

24. POST Award Contract Administration • There will be changes • Clause in contracts to allow for changes • Design contracts are “Amended” • Support services are “Amended” • Construction contracts receive “Change Orders” from Field direction or Proposed Change Orders • Governing Board will see for approval: • Design amendment with staff recommendation • Support amendment with staff recommendation or ratify field direction • Change orders with staff recommendation or ratify field direction