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Emergency Purchasing: When You Don’t Have Time To Bid

Emergency Purchasing: When You Don’t Have Time To Bid. Norma Houston 2013 NCEMA Fall Conference . Tornado Damage. Recovery Needs. Debris Removal. Roof Repair / Equipment Replacement. Vehicle Replacement. Water Main Repair / Potable Water. Basic Public Contract Requirements.

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Emergency Purchasing: When You Don’t Have Time To Bid

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  1. Emergency Purchasing: When You Don’t Have Time To Bid Norma Houston 2013 NCEMA Fall Conference

  2. Tornado Damage

  3. Recovery Needs Debris Removal Roof Repair / Equipment Replacement Vehicle Replacement Water Main Repair / Potable Water

  4. Basic Public Contract Requirements

  5. What is a Valid Public Contract? Budget / Pre-audit Writing Authority Proper Procurement Methods Valid Contract Offer Acceptance Consideration Other Legal Requirements

  6. Procurement Methods

  7. Which Procurement Method? • Type of Contract • Cost • ProcurementMethod

  8. Type of Contract

  9. Type of Contract Type of Contract Purchase Apparatus, supplies, materials, & equipment Construction or repair – new buildings, renovations, “non-vertical” construction (utility lines, roads, etc.) Design services – architectural, engineering, survey, construction manager at risk Everything else – Service contracts (other than design services) fall into this category • Services

  10. Type of Contract Type of Contract Construction or RepairNew buildings, renovations, “non-vertical” construction (utility lines, roads, etc.)

  11. Type of Contract Type of Contract “Mini-Brooks Act” design services architectural, engineering, survey, CMR, DB, BDD, P3

  12. Type of Contract Type of Contract Everything Else Includes service contracts and land purchases

  13. Cost • Type of Contract • Cost Bidding Thresholds

  14. Procurement Method Type of Contract Cost ProcurementMethod • Informal Bidding • Applies to purchases and construction/repair within a certain cost range • Has minimal requirements to ensure competition with focus on getting the lowest cost

  15. Procurement Method Type of Contract Cost ProcurementMethod • Formal Bidding • Applies to purchases and construction/repair above a certain cost • Has very specific requirements to ensure competition with focus on getting the lowest cost

  16. Procurement Method Type of Contract Cost ProcurementMethod • Qualifications Based Selection (QBS) • Required for selection of “Mini-Brooks Act” services - architect, engineer, survey, CMR, DB, DBB, P3 • Contract award based on qualifications of responder rather than price • Local government can exempt itself in writing if contract is under $50,000.

  17. Procurement Method Type of Contract Cost ProcurementMethod • Requests for Proposals (RFP) • Optional for IT purchases • Can be used (but is not mandated) for other service contracts

  18. Procurement Methods – State Law FormalBidding FormalBidding Qualifications-BasedSelection No Method Required $500,000 Informal Bidding $90,000 Cost of Contract (Bid Thresholds) Informal Bidding $30,000 No Method No Method $0 Construction & Repair Mini-Brooks Act Everything Else* Purchase *Use of RFP optional, but not required Type of Contract

  19. Procurement Methods – GMCR (federal) SealedBidding SealedBidding Competitive Proposals (price not considered) Competitive Proposals $150,000 Cost of Contract Small Purchase Small Purchase $0 Construction* Mini-Brooks Act Everything Else* Purchase* Type of Contract *May use competitive proposals when sealed bidding not appropriate; may use non-competitive proposals under special circumstances.

  20. Procurement Methods – State Law FormalBidding FormalBidding Qualifications-BasedSelection No Method Required $500,000 Informal Bidding $90,000 Cost of Contract (Bid Thresholds) Informal Bidding $30,000 No Method No Method $0 Construction & Repair Mini-Brooks Act Everything Else* Purchase *Use of RFP optional, but not required Type of Contract

  21. Procurement Requirements

  22. Procurement Requirements

  23. Construction Contract Requirements

  24. Exceptions

  25. Competitive Bidding Exceptions • Special Circumstances • Sole Source • Emergencies • Fuel • Force Account Work • Existing Contracts • State and Federal Contracts • Piggybacking • Change Orders • Direct Purchases • Purchases From Other Units of Government • Group Purchasing Programs • Used Items

  26. Competitive Bidding Exceptions Existing Contracts Special Circumstances Direct Purchases • Emergencies GS 143-129(e)(2) • Applies to purchases and construction/repair • Must be special emergency involving public health and safety or property • Emergency must be imminent or existing • Cannot be generally anticipated to occur in the future • Cannot use if competitive bidding requirements can be used without exacerbating harm • Competitive bidding requirements still required for FEMA reimbursement • Board approval not required

  27. Competitive Bidding Exceptions Existing Contracts Special Circumstances Direct Purchases • Force Account Work GS 143-135 • Applies to construction/repair(not purchases) • Construction work performed by unit’s own officers or employees • Total cost of project under $125,000 or • Total cost of labor under $50,000 • Must file owner-builder affidavit • Board approval is required

  28. Competitive Bidding Exceptions Existing Contracts Special Circumstances Direct Purchases • State and Federal Contracts GS 143-129(e)(7),(e)(9),(e)(9a) • Applies to formal and informal purchases (not construction) • Purchasing same itemfrom same vendor • Vendor must agree to sell at the same or more favorable prices, terms, and conditions • Includes state P&C contracts, IT purchases through ITS, and federal agency contracts • Board approval not required • Piggybacking: (GS 143-129(g) • Exception to competitive bidding requirements (formal purchases only) • Purchasing same itemfrom same vendor • Vendor must agree to sell at the same or more favorableprices, terms, and conditions • Contract competitive bid within previous 12 months • Board approval IS required with 10 days public notice

  29. Competitive Bidding Exceptions Existing Contracts Special Circumstances Direct Purchases • Piggybacking GS 143-129(g) • Applies to formal purchases only • Purchasing same item from same vendor • Vendor must agree to sell at the same or more favorable prices, terms, and conditions • Contract competitive bid within previous 12 months • Board approval is required with 10 days public notice

  30. Do You Have To Bid? Debris Removal Roof Repair / Equipment Replacement Vehicle Replacement Water Main Repair / Potable Water

  31. Do You Have To Bid? Roof Repair / Equipment Replacement Equipment Replacement: Probably so, unless necessary for immediate restoration of public safety capabilities Hiring An Architect: Mini-Brooks Act QBS process still applies (can only exempt if fees are under $50,000) NO: Temporary repairs to stabilize structure and prevent further damage YES: Permanent repairs and reconstruction REMEMBER GMCR Bidding Requirements!

  32. Do You Have To Bid? Vehicle Replacement YES: Complying with bidding requirements will not unduly delay purchase, especially in informal bidding range ($30,000-$90,000) REMEMBER GMCR Bidding Requirements! Other Options: • Purchase from another unit of government • Donation from other unit of government • Buy off state/federal contract

  33. Do You Have To Bid? Water Main Repair / Potable Water NO: Potable water and temporary repairs to stabilize system YES: Permanent repairs and reconstruction REMEMBER GMCR Bidding Requirements! Hiring An Engineer: Mini-Brooks Act QBS process still applies (can only exempt if fees are under $50,000)

  34. Do You Have To Bid? Debris Removal NO: Debris removal is a service contract; service contracts not subject to state competitive bidding requirements YES:For FEMA reimbursement REMEMBER GMCR Bidding Requirements! What About Debris Monitoring? Same as for debris removal

  35. Tips for Emergency Purchasing • Preposition contracts using a competitive bidding process • Secure temporary supplies and equipment through mutual aid instead of purchasing • Remember minimal requirements for informal bidding process: • Purchase = $30,000-$90,000 • Construction/Repair = $30,000-$500,000) • No formal advertisement • No sealed bid/public bid opening • No 3-bid minimum • Can get price quotes in any form (phone, fax, email, etc.) • Keep record of bids

  36. Resources

  37. SOG Purchasing Website www.ncpurchasing.unc.edu

  38. SOG Coates’ Canons Blog www.canons.sog.unc.edu

  39. THANK YOU FOR WHAT YOU DO! Norma Houston nhouston@sog.unc.edu (919) 843-8930

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