PROCUREMENT UPDATE. August 17, James Harper, Jr. Director, Office of Acquisition Management

Transcription

1 PROCUREMENT UPDATE August 17, 2017 James Harper, Jr. Director, Office of Acquisition Management

2 Fixing America s Surface Transportation Act (FAST) Fact Sheet Cooperative Procurement State Cooperative Procurement Schedules Pilot Program for Non-Profit Cooperative Procurements Joint Procurement Clearinghouse 2

3 FAST Act Cooperative Procurement o State government or eligible non-profit entity/one or more vendors o Option to purchase o Eligible non-profit Definitions Non-profit cooperative purchasing organization/non-grantee Consortium of entities 3

4 Cooperative Procurement Definitions FAST Act Procurement not Limited to Intrastate Participants Voluntary Participation Contract Terms Duration Administrative Expenses 4

5 Cooperative Procurement Definitions FAST Act State Cooperative Procurement Schedules o Authority o Applicability of policies and procedures 5

6 Cooperative Procurement Definitions FAST Act Pilot Program for Non-profit Cooperative Procurements Designation Notice of Intent to Participate 6

7 Cooperative Procurement Definitions FAST Act Joint Procurement Clearinghouse General Information Non-profit Consultation Information on Procurement Limitations 7

8 Cooperative Procurement Definitions FTA Circular F Joint Procurement Two or more purchasers Fixed quantity (Mins/Maxs) Not for others at a later date Highly encouraged 8

9 BEST PRACTICES PROCUREMENT LESSONS LEARNED MANUAL Revised and issued October 2016 Examples of Procurement Practices Lessons learned from many FTA recipients Divided into four major sections Planning Solicitation Award Contract Administration 9

10 BEST PRACTICES PROCUREMENT LESSONS LEARNED MANUAL Includes requirements: Federal Statutes Regulations FTA Circular F FTA s Master Agreement Super Circular 10

11 COMMON OVERSIGHT DEFICIENCIES TRIENNIAL / PROCUREMENT SYSTEM / STATE MANAGEMENT REVIEWS 1. Lack of Independent Cost Estimate (ICE) 2. Lack of required Cost / Price Analysis 3. No evidence of having or following procurement policies and procedures 4. Failure to include FTA Clauses 5. Failure to Exercise full and Open Competition 6. Improper use of geographical preference 7. Sole Source Awards 8. No Contract Administration System 9. Improper Piggybacking Purchases 10. Improper use of Options 11

12 HOW TO GET BEYOND THEM DOCUMENT DOCUMENT DOCUMENT LACK OF INDEPENDENT COST ESTIMATE (ICE) Independent Cost Estimate Worksheet LACK OF REQUIRED COST / PRICE ANALYSIS Prepopulated Form for Price Analysis Cost Analysis Worksheet NO EVIDENCE OF HAVING OR FOLLOWING PROCUREMENT POLICIES AND PROCEDURES Each recipient and sub recipient may use its own procurement procedures, provided that its procurements conform to applicable Federal law and regulations. [FTA C F, Chapter III, Para 3.a.] 12

13 DOCUMENT DOCUMENT DOCUMENT FAILURE TO EXERCISE FULL AND OPEN COMPETITION Outreach Programs Treat Supplier as Partners Advertisement (Widespread) IMPROPER USE OF GEOGRAPHICAL PREFERENCE Prequalify Bidders Prequalified Product Lists 13

14 DOCUMENT DOCUMENT DOCUMENT Failure to include FTA clauses Review the comprehensive list of statutory and regulatory requirements applicable to recipients procurements Published annually FTA Website : Grant Management 14

15 DOCUMENT DOCUMENT DOCUMENT SOLE SOURCE AWARDS Use when appropriate Unique Capability or Availability Inadequate competition Unusual and Compelling Urgency NO CONTRACT ADMINISTRATION SYSTEMS Have a written system that Ensures that contractors perform in accordance with T&Cs Follow the system Present it to reviewers 15

16 DOCUMENT DOCUMENT DOCUMENT IMPROPER PIGGYBACKING PURCHASES Obtain copy of entire contract from awarding agency Be sure there is an assignability clause in the contract Is there sufficient time on the contract to meet delivery Determine specifications will meet your needs Review T&Cs to determine acceptability Determine scope of existing contract Determine existing contract was awarded competitively 16

17 DOCUMENT DOCUMENT DOCUMENT Piggybacking continued Document your price analysis (Fair & Reasonable) Determine that the contractor has submitted all Federally required certifications IMPROPER USE OF OPTIONS Include requirements for pricing options in solicitation Evaluate the option(s) as part of the total awarded contract price Review price for advantageousness before existing option 17

18 Sample Straight-Line (Simplified) Independent Government Cost Estimate DPW Services Total direct labor $506,515 Labor 30% 151,954 Total direct labor and burden 658,469 Other direct costs 63,000 Subtotal $ 721,469 15% 108,220 Subtotal $ 829,689 15% 82,969 Subtotal $ 912,658 15% of total direct labor and burden, other direct costs & overhead only) 124,453 Total estimated contract price $1,037,111 Applicable Period: From: To: (Submit IGCE for each option period.) Prepared by: John Doe/SFIM-NE-PW Signature: Date prepared: Validated by: Jane Smith/ SFIM-NE-PW Signature: Sample Straight -Line (Simplified) Independent Government Cost Estimate 18

19 MISUSE OF LIQUATED DAMAGES CLAUSE Definition: A specific sum (or a sum readily determinable) of money stipulated by the contracting parties as the amount to be recovered for each day of delay in delivery of the product or completion of the contract. They do not represent actual damages but are established in the initial contract as a substitute for actual damages. They should represent, however, the most realistic forecast possible of what the actual damages are likely to be. The rate of liquidated damages must be a reasonable estimate to compensate for possible damages and not be so large as to be construed as a penalty. If it is construed as a penalty it will be held unenforceable. 19

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