19-2166 Amending Chapter 62 Section 33 and 65, Approving Purchasing Policies and Procedures ManualORDINANCE NO. 19-2166
AN ORDINANCE OF THE CITY OF LONGWOOD, FLORIDA, AMENDING
SECTION 62-33 AND SECTION 62-65 OF CHAPTER 62 (PURCHASING) OF
THE LONGWOOD CITY CODE OF ORDINANCES CONCERNING AUTHORITY
OF CITY MANAGER IN PROCUREMENT AND CONCERNING FIELD
PURCHASE ORDER AND PROCUREMENT CARD PROVISIONS; APPROVING
THE CITY OF LONGWOOD PURCHASING POLICIES AND PROCEDURES
MANUAL, PROVIDING FOR CODIFICATION, CONFLICTS, SEVERABILITY
AND AN EFFECTIVE DATE.
WHEREAS, the City of Longwood is vested with home rule authority pursuant to Article
VII, Section 2 of the Constitution of the State of Florida and Chapter 166, Florida Statutes, to
enact ordinances and address matter of procurement by the City; and
WHEREAS, the City of Longwood City Commission desires amend Sections 62-33 and 62-
65, City Code concerning procurement matters as set forth herein; and
WHEREAS, the City of Longwood City Commission desires to approve the City of
Longwood Purchasing Policies and Procedures Manual as attached hereto; and
WHEREAS, the City of Longwood City Commission finds that this Ordinance is in the best
interest of the City and of the health, safety and welfare of the citizens of the City of Longwood.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF
LONGWOOD, FLORIDA:
Section 1. Legislative Findings and Purposes.
The foregoing recitals are hereby adopted as the legislative findings of the City Commission of
the City of Longwood and incorporated into this Ordinance as if set forth herein.
Section 2. Amendment to Section 62-33.
Section 62-33 of Chapter 62, Article II of the Longwood City Code is hereby amended to read as
follows (underlined language is added; stricken -through language is deleted; provisions not
included are not being amended):
Sec. 62-33. - Authority of the city manager.
(a) Principal contracting officer:
(1) Authority. The city manager or his/her designee shall serve as the central procurement
officer of the city. Upon final budget adoption by the city commission, the city manager
shall have the authority to award bids, purchase orders and contracts, and purchase
Ordinance No. 19-2166
Page 1 of 5
supplies, equipment, services and materials not to exceed $450,000.00. Any purchase
contract or bid where the city would pay compensation in excess of $�50,000.00 shall be
approved by the city commission. Procurement decisions made by the city manager or
his/her designee shall be consistent with this chapter and the purchasing policies and
procedures manual. The city manager shall have the authority to declare and surplus
equipment, supplies, materials or other property consistent with this chapter and the
purchasing policies and procedures manual.
(2) Amendments to contracts by purchasing manager. The purchasing manager, as
designee of the city manager, shall have the authority to approve amendments of
contracts awarded, in which the total amount of the resulting contract does not exceed
$3,000.00. The purchasing manager shall have the authority to approve all changes in
the amount of the original contract, regardless of original total cost, which reduces the
total cost of the purchase, provided such changes do not have a material effect on the
nature or objectives of the project.
(3) Amendments to contracts by city manager. The city manager shall have the authority
to approve amendments of all contracts awarded, provided that the amount of the
contract modification does not exceed 15 percent of the amount of the original contract,
or $10,000.00, whichever is less. All amendments issued which modify a contract, the
revised total cost of which exceeds 15 percent of the amount of the original contract,
shall require the approval of the city commission.
(4) Certification of encumbrance. The director of the department of financial services, as
designee of the city manager, shall be required to certify prior to any award of bid,
contracts or purchase orders, except in case of emergency procurement, that there is,
to the credit of the using the program, department or agency concerned, a sufficient
unencumbered appropriation balance, in excess of all unpaid obligations, in the specific
budget line items to cover all the obligations payable under the bid, contract or purchase
order.
(5) Unauthorized purchases prohibited. Except as provided within this chapter or the city's
purchasing policies and procedures, it shall be prohibited for any city officer or
employee to order the purchase of any supplies, materials or services or make any
contract or purchase order within the purview of this chapter other than through the
purchasing division. Any purchase or contract made contrary to the provisions hereof
shall not be binding on the city, unless approved by the city commission.
(b) Purchasing policies and procedures. A purchasing
policies and procedures manual governing procurement matters shall be adopted by
ordinance or resolution of the city commission and such may be amended from time to time
by ordinance or resolution. GeRsis*^^* with the ^ 9{ the'-; ehapte", tThe purchasing
manager shall adopt operational procedures governing the internal functions of the
purchasing office consistent with the provisions of this chapter and the city's purchasing
policies and procedures manual.
Ordinance No. 19-2166
Page 2 of 5
(c) Procedure. Subject to review and approval by the city manager, the purchasing manager
shall adopt operational procedures outlining forms and procedures to be utilized by the
various using city departments or agencies.
(d) Duties. Except as otherwise specifically provided in this chapter, the purchasing manager
shall, in accordance with y the city's purchasing policies and procedures manual
approved by the city commission:
(1) Procure or supervise the procurement of all supplies, services or other items as needed
by the city, except as otherwise provided in this chapter;
(2) Exercise supervision and control over equipment inventories and supplies belonging to
the city;
(3) Sell, trade, donate, destroy, transfer or otherwise dispose of surplus equipment and
supplies belonging to the city;
(4) Establish and maintain programs for the inspection, testing and acceptance of supplies,
services, etc., in cooperation with the department using these supplies and services;
(5) Establish and maintain a program for the development and usage of standard
specifications for supplies and services, etc.;
(6) Determine the lowest or highest responsible and responsive bidder/proposer, as the
case may be;
(7) Keep informed of current developments in the field of purchasing, price, market
conditions and new procedures;
(8) Prepare and maintain such forms as are reasonably necessary to the effective
operation of the purchasing system;
(9) Prepare and maintain a vendor's catalog file by vendor commodity;
(10) Utilize bulk purchases where possible so as to take advantage of discounts;
(11) Join with other units of government in cooperative purchasing plans, when the best
interest of the city would be served;
(12) Purchase from Florida State Contracts and the U.S. General Services Administration
when the best interest of the city would be served.
(e) Signature authority.
(1) The city manager shall have authority to sign (or execute) contracts, contract amendments
and purchase orders within the city manager's or his/her designee's procurement authority
as authorized by this chapter or by the city's purchasing policies and procedures manual.
Without limiting the foregoing, in recognition of the city manager's duties and need to
operate the city on a day to day basis, the city manager shall have the authority to sign (or
execute) documents, orders, agreements and contracts on behalf of the city for which the
city is not required to expend funds or incur debt not authorized by the city commission and
Ordinance No. 19-2166
Page 3 of 5
which are consistent with the role and duties of the city manager as prescribed by the city
charter or by ordinance, resolution or directive of the city commission.
(2) For procurement matters requiring city commission approval, either the mayor or the city
manager shall have the authority to sign (or execute) contracts, contract amendments and
purchase orders on behalf of the city after receipt of approval by the city commission.
Section 3. Amendment to Section 62-65.
Section 62-65 of Chapter 62, Article III of the Longwood City Code is hereby amended to read as
follows (underlined language is added;-4r;r--^^ thr ^" language is deleted; provisions not
included are not being amended):
Sec. 62-65. - Field purchase order (FPO) or procurement card.
(a) Any procurement not exceeding the amount of 000.00 may be made in accordance with
field purchase order procedures or procurement card procedures by the purchasing manager;
provided, however, that the total amount procured shall not be artificially divided so as to
constitute a greater amount than authorized under this section.
(b) Any purchase exceeding the maximum amount must be made in accordance with
procedures outlined in sections 62-62 through 62-67.
Section 4. Purchasing Policies and Procedures Manual. The City of Longwood Purchasing
Policies and Procedures Manual attached to this Ordinance is hereby approved and such may be
amended from time to time by ordinance or resolution of the City Commission. The City of
Longwood Purchasing Policies and Procedures Manual is not being codified into the Code of
Ordinances.
Section S. Severability. If any section, subsection, sentence, clause, phrase, or portion of this
Ordinance, or application hereof, is for any reason held invalid or unconstitutional by any court
of competent jurisdiction, such portion or application shall be deemed a separate, distinct, and
independent provision of such holding shall not affect the validity of the remaining portions
thereof to the extent practicable.
Section 6. Conflicts. To the extent this Ordinance conflicts with any previously enacted
ordinances of the City, this Ordinance shall control to the extent of such conflict.
Section 7. Codification. Sections 2 and 3 of this Ordinance shall be codified as a part of the
Longwood City Code, such provisions may be renumbered or re -lettered to accomplish such
intention, and the word "Ordinance", or similar words, may be changed to "Section," "Article,"
or other appropriate word. The City Clerk is granted liberal authority to codify the provisions of
this Ordinance as contemplated herein.
Ordinance No. 19-2166
Page 4 of 5
Section 8. Effective Date. This Ordinance shall take effect upon adoption.
FIRST READING: September 4, 2019
SECOND READING AND ADOPTION on this 16' day of September 2019.
TY L NG OD, FLORIDA
att Morgan, Mayor
ATTEST:
ichelle Longo, CIVIC, FCRM, City Clerk
Approved as to form and legality for the use and reliance of the City of Longwood, Florida only.
Daniel W. La a Ci rney
Ordinance No. 19-2166
Page 5 of 5
CITY OF LONGWOOD
FLORIDA
PURCHASING
POLICIES AND PROCEDURES
MANUAL
January 1, 1988
Revised 7/26/96, 5/2000, 11/2011, 11/2012, 8/2019
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FORWARD
On June 1, 1987 the Longwood City Commission adopted the Purchasing Ordinance and thereby
officially created the Purchasing Division. Pursuant to the Purchasing Ordinance, the Purchasing
Manager is delegated the responsibility to establish policies and procedures governing the functions of
the Purchasing Division.
This Purchasing Manual is intended to simplify, clarify, and modernize City procurement, as well as to
increase the confidence of both the persons who deal with the procurement system and the general public
in the procurement activities of the City.
The Purchasing Division is responsible for ensuring that the procurement process is efficient, effective
and fair and that tax dollars are spent wisely. These policies and procedures contained herein provide a
framework for sound and efficient procurement practices by all employees directly or indirectly
associated with the functions of purchasing.
The objectives of the Purchasing Division are as follows:
Provide professional procurement services for all departments and divisions throughout the City.
2. Achieve harmonious, productive working relationships between Purchasing and the departments
served.
Provide an uninterrupted flow of materials, supplies and services to meet operational needs.
4. Purchase of goods and services at the lowest possible price consistent with the quality, delivery,
and service requirements.
Maintain adequate quality and performance standards.
6. Increase the cost effectiveness of procurement and maximize the purchasing power of public
funds.
Ensure the fair and equitable treatment of all suppliers.
Foster effective broad -based competition.
9. Assure adherence to all laws, regulations, and procedures related to Public Purchasing and
Materials Management.
10. Safeguard the integrity of the procurement system, protecting against corruption, waste, fraud
and abuse. Expenditure of public funds require the highest degree of public trust.
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PURCHASING POLICIES AND PROCEDURES
Contents
FORWARD...........................................................................................................................................I
CHAPTER1...................................................................................................................................... 1-1
PURPOSES, AUTHORITY AND APPLICATION...............................................1-1
INTERPRETATION......................................................................................................... 1-1
PURPOSES AND POLICIES................................................................................................ 1-1
APPLICABILITY.................................................................................................................. 1-2
AUTHORIZATION............................................................................................................... 1-2
DEFINITION OF TERMS..................................................................................................... 1-2
INTER -DEPARTMENTAL RELATIONS........................................................................... 1-3
VENDORRELATIONS........................................................................................................ 1-4
ETHICS.................................................................................................................................. 1-5
CONFLICT OF INTEREST.................................................................................................. 1-5
CHAPTER2...................................................................................................................................... 2-1
GENERAL PROCUREMENT POLICIES........................................................................................ 2-1
PURCHASING CYCLE........................................................................................................2-2
PURCHASE REQUISITION................................................................................................. 2-3
PURCHASEORDERS.......................................................................................................... 2-6
CHANGEORDERS.............................................................................................................. 2-9
BLANKET PURCHASE ORDER....................................................................................... 2-11
CHECK REQUEST/DIRECT PAYMENT......................................................................... 2-13
CHAPTER3...................................................................................................................................... 3-1
METHODS OF SOURCE SELECTION AND CONTRACTING.................................................... 3-1
METHODS OF SOURCE SELECTION............................................................................... 3-1
PROCUREMENT THRESHOLD AMOUNTS.................................................................... 3-1
COMPETITIVE SEALED BIDDING................................................................................... 3-3
GENERAL SPECIFICATIONS................................................................................ 3-3
INVITATION FOR BID........................................................................................... 3-3
BID BOND/DEPOSITS............................................................................................ 3-4
PUBLICNOTICE..................................................................................................... 3-5
PREBIDCONFERENCE......................................................................................... 3-5
AMENDMENTS TO A SOLICITATION................................................................ 3-5
RECEIPTOF BIDS.................................................................................................. 3-6
BIDOPENING......................................................................................................... 3-6
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BIDEVALUATION................................................................................................. 3-6
TIEBIDS.................................................................................................................. 3-7
BIDAWARD............................................................................................................ 3-7
REJECTIONOF BIDS............................................................................................. 3-7
COMPETITIVE SEALED PROPOSALS............................................................................. 3-9
PURPOSE................................................................................................................. 3-9
RFPPREPARATION............................................................................................... 3-9
PUBLICNOTICE................................................................................................... 3-11
RECEIPTOF PROPOSALS................................................................................... 3-12
EVALUATIONPROCESS.................................................................................... 3-12
NEGOTIATION WITH RESPONSIBLE OFFERORS .......................................... 3-14
AWARD................................................................................................................. 3-14
FIELDPURCHASE ORDERS............................................................................................ 3-15
EMERGENCY PROCUREMENT...................................................................................... 3-17
EMERGENCY PROCUREMENT DURING WORKING HOURS ...................... 3-17
EMERGENCY PROCUREMENT AT NIGHTS, WEEKENDS, OR HOLIDAYS 3-18
SOLE SOURCE PROCUREMENT.................................................................................... 3-19
UTILIZING STATE OF FLORIDA TERM CONTRACTS ............................................... 3-20
PURCHASES EXEMPT FROM COMPETITION............................................................. 3-21
CHAPTER4...................................................................................................................................... 4-1
CONTRACTADMINISTRATION................................................................................................... 4-1
RECEIVINGAND INSPECTION........................................................................................ 4-3
PAYMENTOF INVOICES................................................................................................... 4-6
VENDORCOMPLAINTS.................................................................................................... 4-7
DEFAULTACTIONS........................................................................................................... 4-8
CHAPTER5...................................................................................................................................... 5-1
PERSONAL PROPERTY CONTROL AND DISPOSAL................................................................ 5-1
PERSONALPROPERTY CONTROL.................................................................................. 5-1
SURPLUSPROPERTY......................................................................................................... 5-2
PROCEDURES FOR DISPOSAL OF RECOVERED PROPERTY .................................... 5-4
PROCEDURE FOR LOST OR ABANDONED PROPERTY ................................. 5-4
UNCLAIMEDEVIDENCE...................................................................................... 5-4
PROPERTYFORFEITED........................................................................................ 5-5
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J
CHAPTER6...................................................................................................................................... 6-1
ACQUISITION OF DESIGN -BUILD PUBLIC CONSTRUCTION PROJECTS ............................
6-1
SELECTION ADVISORY COMMITTEE............................................................................
6-2
DESIGN CRITERIA PACKAGE..........................................................................................
6-3
DESIGN -CRITERIA PROFESSIONAL...............................................................................
6-4
DESIGN -BUILD FIRM.........................................................................................................6-6
CONSTRUCTION AND SUPERVISION............................................................................
6-8
PUBLIC EMERGENCY PROJECTS...................................................................................
6-8
RESERVATION OF AUTHORITY......................................................................................
6-8
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EXHIBITS
ORGANIZATIONALCHART............................................................................................................ A
CODEOF ETHICS(NIGP)................................................................................................................. B
VENDORAPPLICATION.................................................................................................................. C
PURCHASEREQUISITION............................................................................................................... D
PURCHASEORDER.......................................................................................................................... E
CHANGE ORDER REQUEST FORM............................................................................................... F
BLANKET PURCHASE REQUISITION............................................................................................G
BLANKET CHANGE ORDER REQUEST FORM............................................................................H
CHECKREQUEST FORM.................................................................................................................. I
FIELDPURCHASE ORDER............................................................................................................... J
SOLESOURCE PURCHASE FORM.................................................................................................K
NOTICEOF CONTRACT AWARD.................................................................................................. L
VENDOR PERFORMANCE RECORD FORM................................................................................ M
FIXEDASSET TRANSFER FORM................................................................................................... N
PROPERTYSURPLUS FORM.......................................................................................................... O
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CHAPTER I
GENERAL PROVISIONS
1.00 PURPOSE, AUTHORITY, AND APPLICATION
A. Interpretation
This Policy and Procedure Manual shall be construed and applied to promote its
underlying purposes and policies.
B. Purposes and Policies
The underlying purposes and policies of this manual are:
l . To simplify, clarify, and modernize the law governing procurement by the
City;
2. To permit the continued development of procurement policies and practices;
3. To make as consistent as possible the procurement regulations among the
various Departments/Divisions;
4. To provide for increased public confidence in the procedures followed in
public procurement;
5. To ensure the fair and equitable treatment of all persons who deal with the
procurement system in the City;
6. To provide increased economy in procurement activities and to maximize to
the fullest extent practicable the purchasing value of public funds;
7. To foster effective broad -based competition within the free enterprise system;
8. To provide safeguards for the maintenance of a procurement system of quality
and integrity, and
9. To obtain in a cost-effective and responsive manner the materials, services,
and construction required by the City's departments in order for those
departments to better serve this City's businesses and residents
C. Applicability
The procedures and regulations contained herein apply to every expenditure of public
funds irrespective of their source, except as otherwise specified in Florida State Statutes.
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These provisions may not apply to grants or contracts between the City or other
governments. Nothing in this Manual promulgated hereunder shall prevent the City from
complying with the terms and conditions of any grant, gift, bequest, or cooperative
agreement.
D. Authorization
The acquisition of supplies, equipment and services necessary for the daily operations of
the City is the responsibility of the Purchasing Division, operating under the direct
supervision of the City Manager.
The Purchasing Division is responsible for administering the Purchasing Code, as
approved by the City Commission and establishing and administering Purchasing
Policies and Procedures. The Purchasing Manager is the City's Agent for the purpose of
entering into and administering contracts for the procurement of good and services.
Anyone other than the Purchasing Manager or his designee who signs contracts may be
assuming personal liability for the commitment.
1.01 DEFINITIONS OF TERMS USED IN THIS MANUAL
The words defined in this Section shall have the meanings set forth below whenever they
appear in this Policies and Procedures Manual, unless the context in which they are used
clearly requires a different meaning; or a different definition is prescribed for a particular
section or provision.
Bid Bond means a form of bid security, executed by the bidder as principal and by a surety,
to guarantee that the bidder will enter into the contract within a specified time and furnish
any required performance bond.
Bid Deposit means a sum of money or certified/cashier's check deposited by a bidder to
guarantee that the bidder will enter into the contract within a specified time and furnish any
required performance bond.
Business means any corporation, partnership, individual, sole proprietorship, joint stock
company, joint venture, or any other private legal entity.
Change Order means a written order signed by the Purchasing Manager, directing the
contractor or vendor to make changes to the Purchase Order or Contract.
City means the City of Longwood and shall include the city commission, any department,
board, committee, institution, authority, agency or other establishment or official of the
government of this city.
Competitive bidding means the offer, as a price, by vendors competing for a contract to
supply specified goods or services.
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Confidential information means any information which is available to a person only
because of said person's status as any employee of this city and which is not a matter of
public knowledge or available to the public on request.
Construction means the process of building, altering, repairing, improving, or demolishing
any public infrastructure facility, including any public structure, public building, or other
public improvements of any kind to real property. It does not include the routine operation,
routine repair, or routine maintenance of any existing public infrastructure facility, including
structures, buildings, or real property.
Contract means all types of City agreements, regardless of what they may be called, for the
procurement or disposal of supplies, services, or construction.
Contract Modification means any written alteration in specifications, delivery point, rate of
delivery, period of performance, price, quantity, or other provisions of any contract
accomplished by mutual action of the parties to the contract.
Contractor means any person having a contract with a governmental body.
Data means recorded information, regardless of form or characteristic.
Designee means a duly authorized representative of a person holding a superior position.
Electronic means electrical, digital, magnetic, optical, electromagnetic, or any other similar
technology.
Employee means an individual drawing a salary from a governmental body, whether elected
or not, and any non -compensated individual performing personal services for any
governmental body.
Financial interest means:
a. Ownership of any interest or involvement in any relationship from which, or as a
result of which, a person within the last year has received or is presently or in
the future may receive any financial benefit;
b. Ownership of any interest in any business except publicly held stock;
C. Holding a position in a business, such as any officer, director, trustee,
partner, employee or similar position, or holding any position of management.
Governmental Body means any department, commission, council, board, bureau,
committee, institution, legislative body, agency, government corporation, or other
establishment or official of the executive, legislative, or judicial branch of this [State].
Grant means the furnishing by the [State] of assistance, whether financial or otherwise, to
any person to support a program authorized by law. It does not include an award whose
primary purpose is to procure an end product, whether in the form of supplies, services, or
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construction; a contract resulting from such an award is not a grant but a procurement
contract.
Invitation for Bid means all documents, including those attached or incorporated by
reference, utilized for soliciting bids.
May denotes the permissive.
Performance Bond means a bond of a contractor/vendor in which a surety guarantees to the
city that the work/services will be performed in accordance with the contract documents and
may, in the discretion of the city, include a letter of credit issued by a financial institution.
Person means any business, individual, union, committee, club, other organization, or group
of individuals.
Procurement means buying, purchasing, renting, leasing, or otherwise acquiring any
supplies, services or construction. It also includes all functions that pertain to the obtaining of
any supply, service, or construction, including description of requirements, selection and
solicitation of sources, preparation and award of contract, and all phases of contract
administration.
Procurement Officer (generally restricted to the Purchasing Manager) means any person
duly authorized to enter into and administer contracts and make written determinations with
respect thereto. The term also includes an authorized representative acting within the limits of
authority.
Public Notice means the distribution or dissemination of information to interested parties
using methods that are reasonably available. Such methods will often include publication in
newspapers of general circulation, electronic or paper mailing lists, and web site(s)
designated by the City and maintained for that purpose.
Purchasing Agency means any governmental body other than the Purchasing Manager
which is authorized by this Manual or its implementing regulations, or by way of delegation
from the Purchasing Manager or City Manager, to enter into contracts.
Regulation means a governmental body's statement, having general or particular applicability
and future effect, designed to implement, interpret, or prescribe law or policy, or describing
organization, procedure, or practice requirements, which has been promulgated in accordance
with the City Code.
Request for Proposals means all documents, including those attached or incorporated by
reference, utilized for soliciting proposals.
Responsible Bidder means a person who has the capability in all respects to perform fully
the contract requirements and the integrity and reliability which will assure good faith
performance.
Responsive Bidder means a person who has submitted a bid which conforms in all material
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respects to the invitation for bids or proposals.
Services means the furnishing of labor, time, or effort by a contractor, not involving the
delivery of a specific end product other than reports which are merely incidental to the
required performance. This term shall not include employment agreements or collective
bargaining agreements. This definition of "services" includes, but is not limited to,
consulting, personal, professional, technical, and purchase -of -client services.
Shall denotes the imperative.
Signature means a manual or electronic identifier, or the electronic result of an
authentication technique attached to or logically associated with a record that is intended by
the person using it to have the same force and effect as a manual signature. (Digital
signatures may emerge as the equivalent of manual signatures, provided that three key tests
are met: (a) sender authentication (verification of the sender, typically through verification of
a certificate identifying the sender); (b) message integrity (confirmation that the message or
signature was properly received in the original format of the sender); and (c) nonrepudiation
(confirmation that the Sender cannot deny the message or signature was sent). In defining the
term "signature," the intent is to protect the integrity of the procurement process and to
ensure that the transmission and receipt of information concerning public solicitations is
accurate and reliable.
Specifications means a clear, complete and accurate statement of the technical requirements
descriptive of an item and if applicable, the procedures to be followed to determine if the
requirements are met. It may include a description of any requirement for inspecting, testing
or preparing a supply or service item for delivery.
Supplies means all property, including but not limited to equipment, materials, printing, insurance,
and leases of real property, excluding land or a permanent interest in land.
Surety means an organization which, for a consideration, promises in writing to make good
the debt or default of another. The surety must hold a certificate of authority as any
acceptable surety on federal bonds as published in the current 570, U.S. Department of the
Treasury and the Federal register effective July 1 annually, as amended.
Suspension means the disqualification of a person to receive invitations for bids or requests
for proposals or the award of a contract by the city for a given period.
Surplus Equipment means all personal nonexpendable property that is no longer needed or
used by the owning agency, to include desks, chairs, tables, office equipment, scrap metals,
etc. reported to purchasing for disposition either by transfer, scrap or sale.
Using Agency means any governmental body of the City which utilizes any supplies,
services, or construction procured under these regulations.
Written or In Writing means the product of any method of forming characters on paper,
other materials, or viewable screens, which can be read, retrieved, and reproduced, including
information that is electronically transmitted and stored.
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1.02 ACCESS
A. Public Access to Procurement Information
Procurement information shall be a public record to the extent provided in Florida
Statutes Chapter 119 and shall be available to the public as provided in such statute.
B. Authorization for the Use of Electronic Transmissions
The use of electronic media, including acceptance of electronic signatures, is
authorized consistent with Florida's applicable statutory, regulatory or other guidance
for use of such media, so long as such guidance provides for:
1. Appropriate security to prevent unauthorized access to the bidding, approval
and award processes; and
2. Accurate retrieval or conversion of electronic forms of such information into a
medium which permits inspection and copying.
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1.03 PROCUREMENT ORGANIZATION
A. Creation of the Office of Purchasing
Chapter 16.5 of the Longwood City Code establishes the Purchasing Division.
B. Responsibilities and Functions
The primary function of the Purchasing Division is to purchase supplies, materials,
equipment, and services required by the City and to maximize, to the fullest extent
practical, the purchasing value of public funds of the City.
Specific responsibilities, duties, and functions include:
I. Develop purchasing objectives, policies, programs and procedures for the
purchase and contracting of all materials, supplies, equipment and services.
2. Act as the City's representative on all matters pertaining to purchasing and
contracts.
3. Purchase all supplies, materials, equipment and contractual services required by
the City.
4. Insure that all purchases are made in compliance with applicable statutes, rules,
regulations, and policies.
5. Conduct research into existing and new methods of procurement.
6. Establish and maintain programs for the inspection, testing and acceptance of
goods and services in cooperation with the departments.
7. Establish and maintain a program for the development and usage of standard
specifications for materials, supplies, and equipment where practicable.
8. Assist the departments in the preparation of specifications and technical
requirements to be included in Invitations to Bid, Requests for Proposals, and
Request for Quotations.
9. Consolidate purchases of like or common items to obtain the maximum
economical benefits and cost savings, and explore the possibilities of buying in
bulk to take full advantage of quantity discounts. Join with other governmental
agencies in cooperative purchasing agreements, when the best interest of the City
would be served.
11. Purchase from Florida State Contracts, the U.S. General Services Administration
and other governmental contract when the best interest of the City would be
served.
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12. Keep informed of current developments in the field of purchasing, including but
not limited to prices, market conditions and new products, and secure for the City
the benefits of research conducted in the field of purchasing by other
governmental jurisdictions, national technical societies, trade associations, and
private businesses and organizations.
13. Arrange for the disposal, bid, auction, or negotiation for the sale of surplus
materials and equipment.
14. Maintain a vendor commodity listing by vendor and commodity code.
15. Promote good will and public relations between the City of Longwood and its
suppliers. Encourage full and open competition wherever possible.
16. Prequalify prospective suppliers, contractors and consultants as needed for
specific projects, supplies or services.
17. Administer the City's Procurement Card Program.
18. Prepare and submit annual operating budget for the Purchasing Division.
1.04 INTER -DEPARTMENTAL RELATIONS
Cooperation and understanding between departments is essential in the effective operation of the
Purchasing Division. The Purchasing Division will establish and maintain close liaison with the
departments in order to meet their purchasing needs and requirements. Every effort is made to purchase
commodities in timely manner and in accordance with the department's requirements.
To achieve these goals and to help clarify the requirements of a successful purchasing program, specific
responsibilities are identified below:
A. Purchasing Divisions' Responsibilities:
Become acquainted with the needs of all departments and divisions.
2. Provide training in purchasing policies and procedures.
3. Provide assistance in the preparation of specifications.
4. Research new sources of supplies and services.
5. Process all requisitions and purchase orders in a timely manner.
6. Review specifications to assure they are not proprietary in nature and allow for
open competition.
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7. Expedite the delivery of purchases as needed.
8. Work with the Departments in resolving problems with defective merchandise or
the return of goods; and to negotiate the return of merchandise and/or settlement.
9. Explore the markets for new sources, products and materials.
B. User Department's Responsibilities
1. Write clear and accurate descriptions of materials and equipment to be purchased.
2. Verify that funds have been allocated and are available in the proper lines. If
funds are not available, prepare appropriate Budget Transfer Forms to cover
expenditures.
3. Prepare technical specifications for goods and services requiring formal bidding.
4. Advise Purchasing of special projects or of special requirements in advance to
avoid delays and to allow the Purchasing Division adequate time to schedule.
5. Allow sufficient time for the Purchasing Division to process the requisition and
for the supplier to deliver.
6. Provide the Purchasing Division written documentation of any delivery or
supplier problems or complaints.
7. Assist in the technical evaluation of bid and proposal responses.
8. Advise the Purchasing Division of qualified suppliers.
1.03 VENDOR RELATIONS
The City strives to develop effective relationships with vendors and encourages full and open
competition wherever possible. All vendors are afforded equal opportunity to participate in public
bidding. To accomplish this intent, all contacts between the City and the vendor should be coordinated
through the Purchasing Division.
In addition, to avoid any perception of unethical behavior, the following guidelines should be followed:
1. Interviews with suppliers shall be coordinated through the Purchasing Division by
appointment only.
2. Discussions with salesmen should be open and general and shall not commit to
preferences for any product or service, which might in any way compromise the City.
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3. All correspondence with suppliers is to be through the Purchasing Division, except in
special cases where the technical details involved make it advisable to delegate authority
to others. In such cases, the Purchasing Division must receive copies of all
correspondence.
4. Any prices, proposals, quotations, or specific information received from vendors must
not be disclosed until after the award of a contract or issuance of a purchase order.
Sealed bids or proposals are exempt from disclosure pursuant to Florida State Statutes
Chapter 119.07(o).
To ensure full and open competition, continuity of supply, and availability of materials,
new sources of supply are given due consideration. The City will buy from suppliers
who exhibit adequate financial strength, high ethical standards, a record of adhering to
specifications, maintains shipping promises, and gives a full measure of service.
6. Acceptance of gifts at any time, other than advertising novelties of nominal value, is
prohibited. Employees must not become obligated to any supplier and shall not conclude
any City transaction from which they may personally benefit.
7. The offer of any gratuity to an official or employee of the City by any vendor or
contractor shall be cause for declaring such individual or firm to be an irresponsible
bidder and may be grounds for suspension form bidding.
8. No employee shall obligate the City whereby said employee may derive income or
benefits other than those provided as compensation from the City for their employment.
9. No City employee may have any financial interest in any purchase order or contract
issued by the City of Longwood.
1.04 CODE OF ETHICS AND CONDUCT
It is the policy of the Purchasing Division to promote the City's reputation for courtesy, fairness and
impartiality. The responsibility for achieving this goal rests with each individual who participates in the
procurement process. This includes the using agencies, the vendors, as well as the purchasing personnel.
The Purchasing Division adheres to a high standard of ethics and conduct as set forth by the National
Association of Purchasing Management and the National Institute of Governmental Purchasing.
Public purchasing officials are required to maintain complete independence and impartiality in
dealings with vendors, both in fact and in appearance, in order to preserve the integrity of the
competitive process and to ensure there is public confidence that contracts are awarded equitably and
economically.
The following are excerpts from Chapter 112, Part I1I, Florida Statutes, Code of Ethics for Public
Officers and Employees:
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A. Section 112.31(2), Florida Statutes, states:
SOLICITATION OR ACCEPTANCE OF GIFTS
No public officer, employee of an agency, or candidate for nomination or election shall solicit
or accept anything of value to the recipient, including a gift, loan, reward, promise of future
employment, favor, or service, based upon any understanding that the vote, official action, or
judgment of the public officer, employee or candidate would be influenced thereby.
B. Section 112.313(2), Florida Statutes, states:
DOING BUSINESS WITH ONE'S AGENCY
No employee of an agency acting in his official capacity as a purchasing agency, or public
officer acting in his official capacity, shall either directly or indirectly purchase, rent, or lease
any realty, goods, or services for his own agency from any business entity of which he or his
spouse or child is an officer, partner, director, or proprietor or in which such officer or
employee or his spouse or child, or any combination of them, has a material interest. or shall
a public officer or employee, acting in a private capacity, rent, lease, or sell any realty, goods,
or services to his own agency, if he is a state officer or employee, or to any political
subdivision or any agency thereof, if he is serving as an officer or employee of that political
subdivision. The foregoing shall not apply to district offices maintained by legislators when
such offices are located in the legislator's place of business. This subsection shall not affect
or be construed to prohibit contracts entered into prior to:
(a) October 1, 1975
(b) Qualification for elective office
(c) Appointment to public office
(d) Beginning public employment
C. Section 112.313(4), Florida Statutes, states:
UNAUTHORIZED COMPENSATION
No public officer or employee of an agency or his spouse or minor child shall, at any time,
accept any compensation, payment, or thing of value when such public officer or employee
knows, or with the exercise of reasonable care, should know, that it was given to influence a
vote or other action in which the officer or employee was expected to participate in his
official capacity.
D. Section 112.313(7), Florida Statutes, states:
CONFLICTING EMPLOYMENT OR CONTRACTUAL RELATIONSHIP
No public officer or employee of an agency shall have or hold any employment or contractual
relationship with any business entity or any agency which is subject to the regulation of, or is
doing business with, an agency of which he is an officer or employee, excluding those
organizations and their officers who, when acting in their official capacity, enter into or
negotiate a collective bargaining contract with the state or any municipality, county, or other
political subdivision of the state; nor shall an officer or employee of an agency have or hold
any employment or contractual relationship that will create a continuing or frequently
recurring conflict between his private interests and the performance of his public duties or
that would impede the full and faithful discharge of his public duties.
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In order to avoid the possibility of any misunderstandings regarding compliance with the law and
regarding any appearance of impropriety relative to the competitive process for awarding contracts, it
is respectfully requested that purchasing staff not accept anything of value offered from vendors.
1.05 CONFLICT OF INTEREST:
A. State Statutes defines conflict of interest as follows:
Chapter 38-503. Conflict of interest; exemption; school board member.
Any public officer or employee of a public agency who has, or whose relative has, a substantial
interest in any contract, sale, purchase or service to such public agency shall make known that
interest in the official records of such public agency and shall refrain from voting upon or
otherwise participating in any manner as an officer or employee in such contract, sale or
purchase.
The mere employment of an individual simultaneously by the City and an outside company that
has a direct or indirect business relationship with the City, in itself established no conflict of
interest. A conflict of interest would arise if actions by such an individual as a City employee
conferred a direct or indirect benefit on the private business by which he was also employed or in
which the employee has a financial interest.
The law provides that when a potential for a conflict of interest arises, the City employee with
the potential conflict make his interest known to the City and refrain from taking any actions on
the matter creating the potential for a conflict of interest.
When a potential for a conflict of interest arises, the City employee must either (a) provide
written notification to the City Clerk identifying what relationship exists that could be classified
as a potential for a conflict of interest; or (b) provide the same information during a City
Commission meeting so it can be recorded in the official minutes of the meeting.
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CHAPTER 2
GENERAL PROCUREMENT POLICIES
2.00 GENERAL
A. The following policies shall govern the procurement of goods and services for the City in
accordance with the existing Purchasing Ordinance:
1. All contracts and all purchases will be made through and by the Purchasing Division
except as otherwise exempted by the City Manager or the City Commission.
2. No contract, purchase, field purchase orders, or group of requisitions shall be subdivided
to avoid the bid solicitation or quotation process.
3. It is unlawful for a City officer or employee to order the purchase of any materials,
supplies, equipment, or contractual services, or make any contract other than through the
City Manager or the Purchasing Manager. Any purchase, order or contract made contrary
to the provisions thereof shall be deemed an unauthorized purchase.
4. In cases of extreme emergency, and only in such cases, the Purchasing Manager or
designee may make or authorize others to make emergency procurement when there
exists a threat to public health, welfare, or safety, provided that such emergency
procurement shall be made with such competition as is practicable under the
circumstances. A full written justification of the basis of the emergency shall be included
with the requisition and documented on the emergency purchase order form.
5. Award for purchases shall be made on the basis of the most responsible and responsive
bidder, considering such other factors as price, quality, delivery, and service.
6. Deviations from the policies and procedures prescribed herein shall not be made without
prior approval of the Purchasing Manager.
2.01 PURCHASING CYCLE
A. Definition:
The scope of the purchasing activity may be defined as providing all of the materials support
efforts that are required by the City. These efforts begin with the determination of the materials
and service requirements and usually end with the disposition function. The cycle is called the
Purchasing Cycle or the Procurement Cycle.
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B. General:
The Purchasing Cycle begins with budget adoption. Each departmental budget specifies
approved capital equipment, routine operating supplies, and services to be procured. This
information is utilized by the Purchasing Division to verify expenditures, anticipate departmental
needs and to recommend bulk purchase or term contracts for repetitive procurement.
C. Procedure:
The following outlines the basic Purchasing Cycle:
1. The Department's needs are recognized, perceived, or indicated.
2. Specifications or scope of services are developed.
3. Requisition is prepared, pre -encumbered and forwarded to Purchasing for processing.
5. Purchasing reviews the requisition and specifications for accuracy and completeness.
6. Purchasing determines the appropriate source selection or method of purchase, i.e. Sealed
bidding, sealed proposals, sole source, emergency, or small purchase.
7. Purchasing prepares the solicitation package.
8. Purchasing prepares the bid tabulations.
9. Bids are reviewed and evaluated for compliance with specifications or scope of service.
10. Recommendation for award is prepared.
11. Based on award value, award is made by City Manager or City Commission.
12. Purchase Order or formal contract is prepared.
14. Purchasing administers the contract.
15. Surplus, salvage, or scrap is either re -allocated or disposed of.
2.02 PURCHASE REQUISITION
A. Purpose:
The Purchase Requisition serves as a tool to inform the Purchasing Division of the needs of the
user departments and to correctly define the service or product. In addition, the requisition
signifies authority to charge a specific account number and to certify that sufficient funds are
available in the account specified.
B. Authority:
Each purchasing user is assigned a password and is given a specific level of access to
applications and approval levels by cost center and account number through the AS/400
Purchasing/Inventory Program (PI) security system. Requisitions are approved by the
department director through the Purchasing Requisition Approval option from the
Purchasing/Receiving Menu. All requisitions must be reviewed and approved by the Department
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Manager or Director. The system interfaces with the Government Management and Budgetary
Accounting System (GMBA) and will verify that funds are available for the requisition.
Approval overrides are not authorized.
C. Preparation:
Requisitions are initiated by the user department from the Requisition Entry option on the
Purchasing/Receiving Menu. (Detailed instructions for the automated Purchasing Program are
available from the Purchasing Division.)
D. Lead time:
Lead time is critical; therefore, requisitions should be prepared in advance to allow sufficient
time for the solicitation process to take place and adequate time for delivery of the product or
services required.
1. Lead time must be considered for each project to allow adequate time for the following:
a. Time required for the user department to prepare and approve the requisition.
b. Time required for Purchasing to obtain quotes; or
C. Adequate time for Purchasing to solicit bids and to provide public notice, allow a
minimum of 15 calendar days prior to bid opening.
d. Time required for Purchasing and the user department to evaluate the responses.
e. Time required in the preparation of the agenda item for award of bid or proposal
by the City Commission. See section on Invitation to Bid for additional
information.
f. Time required for the contractor to place the order and to deliver the goods or
services.
g. Time required for the vendor to manufacture any specialized products or
equipment.
2. The following schedule may be used as a guide for determining the minimum time
required for processing requisitions after receipt of the requisition and applicable
specifications or scope of services:
a. Two to three days for commodities which require only (3) verbal quotes.
C. Five to seven days for items which require written or fax quotations.
d. Six to eight weeks for items requiring formal bid solicitation.
E. Required Information:
The following instructions are provided as a guide when completing the automated purchase
requisition:
DATE: The date the requisition was established.
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2. REQUISITION NUMBER: The system automatically assigns consecutive requisition
numbers.
3. REQUISITION BY: Enter the name of the person requesting the item or service and the
department or division.
4. REASON: A brief explanation as to why the item or service is needed. Example:
Replacement of obsolete computer; pipe required for Church Ave. drainage project; or
use this field to indicate that the requisition is a request for a Blanket Purchase Order for
a specified item, or an Emergency Purchase Order for a specified service.
5. SUGGESTED VENDOR: Enter the recommended vendor, address, telephone and fax
number.
6. DELIVER BY DATE: It is important to enter a delivery date for the item, service, or
project, particularly if there is a need for delivery within a specified period of time. The
date must be realistic and should take in consideration the lead time required for
processing.
DESCRIPTION: The description of the item or service should be clear and precise.
Provide a detailed description of each item. Include suggested manufacturer and product
number whenever possible. Indicate color, size, or other pertinent information.
Additional information relating to the item may be entered under the LINE ITEM
COMMENTS option.
COMMODITY CODE: The system will search for the three digit commodity code and a
three digit sub -commodity code to categorize each line item.
QUANTITY: Enter the number of units of the specific item required.
10. UOM (Unit of Measure): State how the item will be measured or packaged, such as each,
dozen, LS (lump sum) etc.
11. UNIT COST: Enter the estimated price for each item. The actual price may vary after
solicitation.
12. ACCOUNT NUMBER: Enter the General Ledger expenditure account to be charged for
the items on the requisition. The system will provide a list of accounts upon request.
13. PROJECT NUMBER: Enter the project number, if applicable. Finance maintains the
records for all project numbers.
14. REQUISITION QUOTES: Provide vendor name, address, telephone number and price
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quotes, if applicable.
15. REQUISITION COMMENTS: Provide general information about the request, such as
the project title, contact person or other internal comments that will not be printed on the
Purchase Order form.
F. General Information:
Provide original technical specifications or other information via inter -office mail.
Specifications must be clear and precise and should define the level of performance or
desired quality rather than specific brand name. The Purchasing Division will review the
specifications to insure they are non-restrictive and do not prohibit competition.
2. Requisitions should be carefully reviewed during the Requisition Approval process.
Incomplete or restrictive requests may be returned to the requestor for correction or
revision.
Forward any relevant product information which has been provided by the vendor. In
addition, all original written quotes should be forwarded to the Purchasing Division to
avoid duplication of effort or misquoting.
4. If there are insufficient funds for the purchase, the requisition will not be encumbered by
the system and will be returned.
5. It is recommended that specifications for the purchase of vehicles, motorized equipment,
roadway equipment, and other related purchases should be reviewed by the Fleet
Division before processing. Also, computer related equipment should be reviewed by the
Computer Services Manager prior to entering the requisition.
2.03 PURCHASE ORDERS:
A. Purpose:
A Purchase Order is a legally binding contract which authorizes the vendor to ship and invoice for
materials and/or services as specified. Purchase Orders that are clear, concise, and complete will
help prevent any unnecessary misunderstandings and contract disputes with suppliers.
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B. Authority:
Only the Purchasing Division shall issue Purchase Orders and contracts. The user department is
only authorized to order small purchases via credit card or Field Purchase Order. All Purchase
Orders and contracts shall be transmitted to the supplier by the Purchasing Division.
C. Procedure:
The Purchase Order system is fully automated and produces a consecutively numbered Purchase
Order after the requisition is processed. Purchase Orders are issued to a vendor after award of a
quotation or bid solicitation.
D. Preparation:
Purchase Orders are contracts which combine the essential product or service information with
legal terms and conditions of the purchase and instructions to the vendor. The information
provided on a Purchase Order is as follows:
1. The Purchase Order Form contains a pre -assigned number and preprinted general terms
and conditions and billing information.
2. Requisition number and date are automatically transferred from the requisition to the
Purchase Order.
3. Vendor Number, name, and address.
4. Ship to address.
5. Requisitioner's Name and requesting department.
6. Account number.
7. Commodity number, project number and contract number.
8. Terms of Payment.
9. Delivery date.
10. Item description, including color, size, and catalog or part number, make, and model etc.
The description may also reference a particular service to be performed and may include
other relevant information such as the Bid number, award date, warranty information, bid
specifications or bid form which may be attached.
11. Quantity and unit of measure; Unit price, extended price, and total price.
13. Special delivery instructions; Shipping terms; F.O.B. Point: Every effort will be made to
obtain Pre -paid FOB Destination terms. The FOB point is the place at which ownership
changes from the vendor to the City.
14. Specific terms and conditions, when applicable.
15. Signature of the Purchasing Manager, City Manager, or Mayor, as required.
E. Purchase Order Distribution:
1. White original Purchase Order is mailed to the vendor (with appropriate attachments).
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2. Green copy (Property Records) is forwarded to Finance for fixed asset use.
3. Goldenrod copy is retained in Purchasing for numeric filing.
4. Blue copy is forwarded to the requesting department as a file copy and the canary copy
(Receiving Report) is forwarded to the requesting department as a receiving report
pending receipt of items. Upon receipt of the product or service, approval signature, date
and amount authorized for payment are entered on the Receiving Copy and forwarded to
the Finance Division for processing.
Pink copy to Finance for information and fling with Receiving Report.
F. Acknowledgments:
A supplier may send their own form for acknowledgment of order. Acknowledgment forms
originating from suppliers should not be signed because the signature of acceptance will signify
that we have accepted all of the supplier's terms and conditions as printed on his
acknowledgment form, thereby creating a new contract which would supersede the conditions of
the Purchase Order. The new conditions may not be to the best interest of the City. Contact the
Purchasing Division should the vendor refuse to ship without such a signed document.
G. Follow-up and Expediting:
After the Purchase Order has been issued to the vendor, the Purchasing Division may
follow-up or expedite the order.
a. Follow-up is the routine tracking of an order to assure that the vendor will be able
to meet the delivery date. Follow-up is usually made on large -dollar, long lead-
time, or critical purchases.
b. Expediting is performed when the item or service is not delivered according to
the Purchase Order delivery date or when it is necessary to request delivery ahead
of schedule.
2. The Purchasing Division will perform the follow-up and expediting activities; however,
depending upon the urgency of the order, the requesting department may contact the vendor
to inquire as to the reason(s) for the delay or to obtain the expected delivery date. The
Purchasing Division should be notified prior to making delivery inquiries.
2.04 CHANGE ORDERS
A. Purpose:
Change orders provide a method for amending existing purchase orders, blanket purchase orders,
or contracts.
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B. Definition:
A change order is a written modification to a contract or purchase order, which normally
establishes a change in the work, the cost impact on the contract, if any, and the extent of the
adjustment in the contract time, if any.
C. Form:
Change Order Request forms for regular purchase orders and blanket purchase orders are
available in the Purchasing Division.
D. Authorization:
Generally, the level of authority for approval of a Change Order Request is the same level of
authority required to approve the original purchase requisition.
E. Procedure:
1. Change Orders are initiated for purposes of adjusting quantities, price changes, addition
or deletion of items, account number corrections, cancellations, or changes relating to
shipping.
2. Change order requests must be processed for all changes that affect the original Purchase
Order by an increase of $50.00 or 10% or more of the original dollar amount, whichever
is less. If the increase is less than $50.00 or 10% of the original Purchase Order dollar
amount, the department shall make the appropriate change on the receiving report and
forward it to Finance marked "approved for Payment as submitted".
3. Change orders need not be processed for decreases in the original Purchase Order amount
of less than 10% or $50.00, whichever is less. In such a case, the department shall make
the appropriate change on the receiving report and forward it to Finance marked
"approved for Payment as submitted.
4. The department requesting the Change Order shall complete a change order request form
and submit the form to the Purchasing Division. The change order request must include
the vendor name, purchase order number, requisition number, monetary dollar
breakdown per account number, and a clear and concise explanation for the changes; i.e.
increase in quantity required for..., addition of freight charges, addition of item necessary
for..., etc.
Change order requests for cancellation of the Purchase Order may be processed providing
there has been no usage of the item(s).
Change order requests that indicate a price increase for specific items must include
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proper justification.
F. Amendments to Contracts
Any changes to a contract shall be in writing in the form of a Contract Amendment Form
prior to proceeding with the change in work. The requesting department or division shall
initiate and forward the proposed Contract Amendment Form to the Purchasing Division
for review.
2. Contract changes must be substantiated in writing and must include any proposed
adjustment in the contract sum or contract time.
If the change provides for an adjustment to the contract sum, the adjustment shall be
based on one of the following methods:
a. Mutual acceptance of a lump sum for the work properly itemized and supported
by sufficient substantiating data to permit evaluation;
b. Unit prices stated in the contract documents or subsequently agreed upon;
C. Cost to be determined in a manner agreed upon by the parties and a mutually
acceptable fixed or percentage fee.
4. The Contract Amendment Form and supporting documents shall be submitted for
approval to the appropriate authority, i.e., Purchasing Manager, City Manager, or the City
Commission prior to proceeding with the change in work.
5. The Purchasing Manager or Division Manager will prepare the agenda item to request
approval of the contract amendment, as applicable based on the signature authority level.
6. The Purchasing Manager or designee will process and issue the approved amendment or
change order. Copies of the Change order and amendment are provided to the requesting
department, Finance Division and City Clerk.
2.05 BLANKET PURCHASE ORDER
A. Purpose
The purpose of a Blanket Purchase Order (BPO) is to consolidate repetitive purchases from the
same vendor. A Blanket Purchase Order is a contract under which a vendor agrees to provide
goods or services on a demand basis over a specific period of time (usually one fiscal year). The
contract generally establishes a maximum dollar limit, the period covered, and any pertinent
terms and conditions with no definite quantities. Shipments are to be made as required by the
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requesting Department or Division.
B. Authority
Requests for Blanket Purchase Orders are approved by the Department Director or Division
Manager through the Purchasing Requisition Approval option from the Purchasing/Receiving
Menu. All requisitions must be reviewed and approved by the appropriate authority to assure
that budgeted funds are available to cover the purchase.
C. Procedure
Requests for Blanket Purchase Orders are initiated by the Department or Division using the
Purchase Requisition Entry option on the Purchasing/Receiving Menu. A requisition for a
Blanket Purchase Order contains the same information as a regular requisition with the following
exceptions:
Reason: State purpose, example: Blanket Purchase Order for Automotive Parts &
Supplies.
Item Description: Enter only one line item describing the items or service.
Quantity/Unit of Measure: Enter one (1) lump sum for the quantity and unit of
measure. (No definite quantities are specified).
4. Line Item Comments:
a. Type: Blanket Purchase Order
b. The period of time the BPO will remain valid (usually through the end of the
fiscal year or through the term of the contract).
C. The maximum dollar limit of the Blanket Order requested, e.g., "Not to
Exceed $4,000.00".
d. The account number(s) to be charged with corresponding dollar amounts, if
multiple accounts are charged).
e. Contract or Bid Number and date approved by the City Commission.
f. Any other pertinent information.
D. Use of Blanket Purchase Orders:
After a Blanket Purchase Order (BPO) is issued, the using agency is authorized to place
orders directly with the vendor via telephone, fax, or E-mail. The using agency shall
verify that the prices quoted by the vendor match the contract prices on the Bid Form.
Verification is necessary to avoid incorrect invoicing and charges by the vendor. If the
prices match, the vendor is provided with the BPO number and delivery schedule.
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E. Payment:
Partial payments are made against the BPO as items are purchased until the maximum
dollar amount encumbered for that BPO is reached. The using agency must promptly
acknowledge receipt of the items by signing, dating and approving the amount of
payment on the Receiving Report (Blue copy of BPO). For partial payment requests, a
copy of the receiving report is stamped and signed and the original is kept until all work
is complete or all items are received and final payment is requested. The Receiving
Report and invoice for payment are forwarded to the Finance Division for payment
processing.
F. Monitoring:
Blanket Purchase Order expenditures shall be monitored very closely by the using agency
to avoid exceeding the limits of the BPO. In addition, the expiration date should be
monitored to allow adequate time for bid solicitation or to request renewal of the existing
contract. The Purchasing Division may randomly monitor Blanket Order purchases to
ensure adherence to Contract prices and procedures.
2.06 CHECK REQUEST/DIRECT PAYMENT
A. Purpose:
Direct Line Payments, or Check Requests, are defined as payments made to vendors by Finance
without the issuance of a Purchase Order.
B. Form:
Check Request Forms are used to make direct line payment. Forms are available from the
Finance Division.
C. General:
Conditions may occur that require a payment in advance or a refund. In those instances, a Check
Request is issued in lieu of processing a Purchase Order. The most common examples of direct
line payment items are:
1. Travel and Per Diem Allowance, including accommodations.
2. Dues/Memberships
3. Subscription Fees
4. Tuition Refunds
5. Utility Payments
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D. Procedure:
The department/division completes a Check Request Form to include the following information:
l . Date and Check Request Number
2. Vendor name and address
3. Account number
4. Amount of check requested
5. Description or purpose of the check
6. Authorized Signature
The completed Check Request Form and corresponding receipts and invoices are forwarded to
the Finance Division for processing.
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Chapter 3
METHODS OF SOURCE SELECTION
3.01 METHODS OF SOURCE SELECTION
Unless otherwise authorized by law, all contracts shall be awarded by one of the following methods:
(a)
Section
Competitive Sealed Bidding
(b)
Section
Competitive Sealed Proposals
(c)
Section
Small Purchases
(d)
Section
Sole Source Procurement
(e)
Section
Emergency Procurements
(f)
Section
Special Procurements
NOTE: The procurement of professional services, e.g. Engineers, Architects, Landscape Architects,
Surveying and Mapping are governed by the Consultant's Competitive Negotiation Act, (CCNA) F.S.
287.055.
3.02 PROCUREMENT THRESHOLD AMOUNTS:
The purpose of competition is a basic tenet of public procurement. The method for obtaining
competitive prices for purchases of supplies, materials, equipment and contractual services is based on
the budgeted amount or estimated price of the product or service to be purchased.
A. The following methods of procurement shall be utilized:
l . Single Quotation (Purchases Less than $2000):
Repetitive type items where the estimated price of the materials, equipment or
supplies is less than $2000.00 may be purchased based on one verbal quote,
provided the price is deemed to be fair and reasonable. Additional competition
may be obtained whenever there is a reason to believe a quotation is not a fair and
reasonable price.
2. Written Quotes (Purchases Over $2,000 and Less Than $50,000):
Written request for quotations are solicited for purchases estimated to cost more than
$2,000.00 and less than $50,000.00, unless there is an emergency in which case
justification must be properly documented.
4. Formal Bids (Purchases Over $50,000)
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Competitive sealed bidding or competitive sealed proposals shall be utilized for
purchases of supplies, materials, equipment and contractual services over $50,000.00.
See Chapter 3.02 titled "Competitive Sealed Bidding" for procedures relating to
Invitations to Bid.
3.02 COMPETITIVE SEALED BIDDING
A. General:
Competitive sealed bidding is the preferred method of source selection and is used for the
acquisition of commodities which exceed the stipulated dollar amount, as provided in F.S.
287.017, unless the Purchasing Manager determines that it is not practicable or advantageous.
Competitive sealed bidding requires issuing an Invitation for Bid, giving public notice, receiving
sealed responses, holding a public bid opening, preparing the Bid Tabulation, evaluating bids,
recommending award.
Upon receipt of a requisition and specifications to purchase equipment, supplies, or services
which exceed the bid threshold amount, the Purchasing Division shall initiate an Invitation to
Bid. NOTE: To determine if a purchase meets the competitive sealed bid requirement, the
following approach shall be considered: The total cumulative amount of similar equipment,
supplies or services, to be purchased over the duration of the contract term or fiscal year shall
be the amount used to determine the requirement for requesting formal sealed bids.
B. Specifications:
1. The specification is the section of the bid solicitation document that describes the
technical or functional requirements for the equipment, goods, services, or construction
being purchased. It also includes the criteria for determining whether these requirements
are met.
The preparation of specifications is the responsibility of the user department/division
with review by the Purchasing Division. The department shall follow a standard format
for specification development or may consider using a committee to develop the
specification.
3. Specifications shall be clear and precise, promote competition, avoid favoritism, and not
be unduly restrictive.
4. The item or service should be described in detail as to fully identify all needed technical
and functional requirements and characteristics. The stated requirements must be capable
of being checked with reproducible test methods. Numerical requirements may include
tolerances.
5. There are generally five types of specifications: brand name specifications, design
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specifications, performance specification, qualified products lists, engineering drawings,
blueprints, or any combination of these.
a. Brand name specifications limit competition and, therefore, usage should be
avoided. Brand name specifications may include a brand name or approved equal
and are used as a reference only to identify the desired quality and performance
characteristics. To avoid the appearance of being too restrictive, the department
should list more than one brand name and the essential design and performance
characteristics.
b. Design or technical specifications list in detail how a product is to be made or a
service carried out, by prescribing the materials to be used and the method of
manufacturing in producing the desired end item.
C. Performance or functional specifications focus on the result expected or required
of a product or service, rather than how it is to be made or accomplished. The
responsibility for the technical capability and capacity to achieve a workable
product is left to the supplier.
d. Qualified products, or approved brands, lists are compilations of manufacturers ❑
and brand names developed on the basis of a written specification. The qualified
products list (QPLs) are used for items that require lengthy testing or examination
procedures. This avoids having the test period fall between the receipt of bids and
contract award dates.
e. Engineering drawings typically are used when precise contours and dimensions
are required and are the most accurate method of describing needs. They may be
used with other physical descriptions or may be used alone. The most common
use for engineering drawings is for construction projects, foundry or machine
shop work and special mechanical parts.
f. Blueprints are architect -engineering drawings used for construction projects.
Like engineering drawings, they may be used in conjunction with other physical
descriptions to describe exact requirements.
C. Invitation for Bid:
Upon receipt of the complete specification from the department, the Purchasing Division shall
prepare the Invitation for Bid. The Invitation for Bid document shall contain a cover sheet, a
pricing section (proposal form), standard terms and conditions, special provisions such as
warranty, bonding and security requirements, required bid forms, and specifications.
The Purchasing Division shall solicit bids from responsible, prospective suppliers as provided
from the vendor/commodity reference list, publications and catalogues, previous suppliers, and
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suggestions by the requisitioner.
D. Bid Bond/Deposits:
When the Purchasing Division deems it necessary, bid bonds as bid security shall be required by
the Invitation for Bid. Unsuccessful bidders shall be entitled to the return of security upon
request to the Purchasing Manager. A successful bidder shall forfeit any surety required by the
Purchasing Manager in the Invitation for Bid upon failure on the bidder's part to enter into a
contract within the specified time after the award, usually 10 days after notification of award.
Bid security may be in the form of bid bonds, cashier's check, or cash. Bid bonds and
performance/payment bonds are generally required for construction projects which exceed
$25,000.00.
E. Public Notice:
Public notice of the Invitations for Bid is required and includes posting an announcement of the
bid in a public place, notification of suppliers from the bidders list, and formal advertisement in a
newspaper of general circulation or other publications, as determined by the Purchasing
Manager. Public notice shall be provided a minimum of fifteen (15) calendar days prior to the
date set forth for the opening of bids.
The public notice shall, at a minimum, contain the following instructions and information: Bid
number and title, due date and time of bid opening; location and address for delivery of bids;
place for opening of bids; any other information as deemed appropriate by the Purchasing
Manager.
F. Pre -bid Conference:
A pre -bid conference shall be held whenever deemed appropriate by the Purchasing Manager.
Generally, a pre -bid conference is conducted with bidders when the solicitation is complex,
large, or contains critical requirements.
The purpose of a pre -bid conference is to promote competition through enhanced understanding
of the specifications and terms and conditions of the bid solicitation. Conferences also provide
an opportunity to clarify critical aspects of the solicitation, eliminate potential ambiguities or
misunderstandings, and permits vendor input. Site visits may be required as part of the
solicitation and combined with the pre -bid conference.
The pre -bid conference is usually held after issuance of a solicitation and before submission and
opening of bids. Attendance at the conference by the vendor may be optional or mandatory and
shall be stated as a bid condition. When mandatory attendance is required, only bids from those
firms represented at the conference or site visit will be accepted. If changes to the solicitation
result from the pre -bid conference, the Purchasing Division shall issue a written addendum. The
addendum shall be sent to all prospective bidders known to have received the solicitation.
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G. Amendments to a Solicitation:
Notification of a cancellation or an amendment to a solicitation shall be made in the form of a
bid addendum and will be mailed to all potential bidders who received a copy of the solicitation.
The signed acknowledgment of addenda must be returned to the Purchasing Division prior to the
time and date of the bid opening or with the bid or proposal. When an addendum is issued which
requires additional time for the vendor to prepare a solicitation response, the opening date should
be extended.
H. Receipt of Bids:
All bids received prior to the time of opening shall be kept in a secure location. Bid responses
shall remain unopened until the specified date and time. If an invitation forbid is canceled, the
bid shall be returned to the vendor.
Bid samples, when submitted, shall be safe -guarded to prevent disclosure of contents before bid
opening.
Unidentified bids may be opened solely for the purpose of identification. Documentation of the
name of the person opening the bid, the date and time opened, and the invitation for bid number
shall be marked on the bid envelope.
Facsimile or telegraphic bids are not acceptable due to confidentiality of information and lack of
original signature. Facsimiles may be accepted for written quotes and confirming telephone
quotations.
I. Bid Opening:
At the specified time and date of the bid opening, the Purchasing Manager, or designee,
shall publicly open and read aloud all bids received.
2. A representative from the department submitting a bid request should be present to
witness the bid opening.
3. Questions concerning the bids shall not be answered until after the bid evaluation is
complete or an award is made.
4. A tabulation of all bids received shall be made available for public inspection in the
Purchasing Division during regular business hours.
J. Bid Evaluation:
As soon as practical after the opening, the bids will be evaluated and award made to the most
responsive and responsible bidder who submits a bid that is deemed to be in the best interest of
the City.
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A responsive bidder shall be a regular dealer or supplier of the goods or services offered;
have the ability to comply with the required delivery or performance schedule; have a
satisfactory record of performance and integrity; and have the necessary facilities,
organization, experience, technical skills, and financial resources to fulfill the terms of
the bid or contract.
2. A responsible bidder must comply with the provisions of the solicitation, including
specifications and terms and conditions. A bidder may be declared as non -responsive for
failure to sign the bid, substitution of vendor's terms, deletion of terms and conditions
stated in the solicitation, failure to offer a product or service that meets the requirements
of the invitation for bids, etc.
In addition to the requirements of being responsive and responsible, the bids shall be
evaluated based on the following: quality of the product or service, price, delivery, ability
to provide maintenance and service, and discount terms and conditions.
K. Tie Bids:
In the event two (2) or more vendors submit identical tie bids, with respect to price,
quality, and service, or should two (2) or more firms be deemed equal during the request
for proposal selection process, the following criteria, in order of importance, shall be
used to break said tie:
a. Drug Free Workplace - (Certification form to be signed and submitted with bid as
per Florida State Statutes Section 287.087 to certify that a business has
implemented a drug -free workplace program.)
b. Delivery time.
C. Prompt payment discounts.
d. Location of vendor's place of business (award to vendor whose place of business
is within the City limits.
e. All conditions, equal, draw lots or flip coin. (Coin toss must be witnessed and
the results recorded).
L. Bid Award:
After the bids have been tabulated and evaluated by the user department and the
Purchasing Manager, a recommendation for award is prepared and placed on the agenda
for City Commission approval.
2. Vendors filing protest of an award or a solicitation must do so within seven (7) calendar
days after such aggrieved person knows or should have known the facts pertaining to the
bid award or solicitation.
M. Rejection of Bids:
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A bid response which fails to provide the required forms or which does not comply to the terms
and conditions of the invitation for bid may be considered as non -responsive and rejected. Bid
submittals which contain an alternate bid(s) shall not be considered responsive and may be
disqualified, unless the solicitation specifically authorizes the submission of alternate bids.
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3.03 COMPETITIVE SEALED PROPOSALS
A. Purpose:
Competitive sealed proposals (Request for Proposals) are generally used as a method of source
selection when competitive sealed bidding is not practicable or advantageous for the City. The
procurement of new technology, non-standard items, specialized services or professional services
are a few examples of circumstances when the use of sealed bidding would not be practicable.
The primary distinction between sealed bidding and sealed proposals is that competitive sealed
bidding requires evaluation of the bid responses and award of the contract to be based solely on
the information submitted. It does not permit discussions or change after bid opening. Sealed
proposals permit negotiation and allow the proposer to make modifications to both contents and
price during the proposal evaluation process.
Sealed proposals are used for acquisitions where price is not the only consideration and other
criteria such as quality control and performance should receive an equal or higher rating during
the evaluation process.
B. RFP Preparation:
The user department shall develop the scope of work for the Request for Proposal (RFP). The
Purchasing Division shall prepare the proposal documents and draft agreement for inclusion in
the RFP package. The Purchasing Division in conjunction with the using agency shall develop
the RFP to include the following elements:
Project Description: The Project Description is a general introduction which states the
purpose of the acquisition and defines what the City expects to accomplish from the
contract. It may include historical or background information about City or the project.
It gives a brief overview of the project requirements and defines the contract term.
2. Statement of Work: The Statement of Work of Scope of Services should describe the
essential and technical requirements of the acquisition. It usually includes a definition of
the desired results and the standards by which they will be measured. The major sections
of the statement of work include: introduction, tasks and performance, contractor
requirements, contractor responsibilities and purchaser responsibilities.
a. The introduction may include a section of definitions to special words, terms or
phrases. The SOW defines a logical flow of activities, specifies the expected results,
and delineates how this will be measured.
b. Specific tasks should be defined with deliverable products for each task and
performance measurements.
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c. Qualifications define any professional certifications, abilities or experience standards
the contractor must meet. Requirements for management, administrative, technical
and staffing capabilities and capacity are identified.
d. Responsibilities of the contractor include work schedules, quality control, and repair
service response.
e. The City's responsibilities include contractual duties and obligations.
Special Terms and Conditions: The special terms and conditions of the request for
proposal may be similar to the provisions in an invitation for bid. Special terms and
conditions section should include, but not limited to, the following information:
preproposal conference; site inspection; payment procedures; certificates and licenses;
bonds, insurance and liability; liquidated damages; contract extension and renewal;
patent copyright infringement; indemnification agreement; guarantees and warrantees;
contents and format of proposal.
4. Evaluation Criteria: The Purchasing Division with the assistance of the using
department should develop detailed evaluation criteria concurrently with the statement of
work. The criteria should be assigned a relative weight or be listed in order of
importance.
The general categories of the evaluation criteria may include technical and management
capability, approach to work, previous contracting experience with the City, past
performance, evidence of insurance capacity, financial resources and total price.
5. Instructions for Submittal: The request for proposal shall include specific instructions
to the vendor for the preparation and submittal of the proposal.
Generally, the proposal preparation section will be divided into four (4) segments with
instructions for providing specific information pertaining to the project:
a. Qualifications and Experience lists the contractor or consultant's general experience,
experience on similar projects, requested resumes, list of personnel assigned to the
project with specific functions or responsibilities, chart of each task showing staff
commitment, and financial information and bank references.
b. Methodology provides a brief summary or explanation of how the proposer plans to
approach the task and the specific steps to accomplish each task. The vendor must
demonstrate their understanding of the services required and identify any problems
anticipated and propose solutions to these problems.
c. Proposal Price Schedule contains the price for the entire project. If required by the
RFP, it may also contain the itemized costs for the project by activity as identified on
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the project schedule including hours, hourly rates, total labor by professional
category, purchased materials, travel, per diem charges, subcontractor costs, and
other expenses. The proposer should include a proposed billing schedule based on
the cost of each deliverable item.
d. Other information is generally specific to the project. It may contain special forms
required by the Purchasing Division, such as Drug Free Work Place Form or other
specific information.
Specific instructions for the submittal of the proposal should include:
a. Where and how to direct technical or contractual inquiries pertaining to the RFP.
b. How RFP addenda, if any, will be communicated to the proposers.
RFP due date, time, and address for submittal of response.
d. Security requirements, if any.
e. Performance bond and insurance requirements.
f. Applicable forms required.
g. Term of contract.
6. Sample Contract: The proposal package should also contain the contract document
for the specific project which contains additional terms and conditions pertaining to the
responsibilities of the contractor after award and during the performance of the contract.
C. Public Notice:
Public notice of the request for proposal shall be given at a reasonable time prior to the date set
forth therein for the receipt of the proposals, in accordance with the Purchasing Code. Notice
shall be sent to all prospective vendors on the City's vendor file which are listed under the
corresponding commodity code. Inclusion on this list does not infer that the vendors are
qualified to perform. The user department shall notify the Purchasing Division of any additional
prospective vendors to include in the proposer list.
The RFP shall also be advertised in a newspaper of general circulation or other publications, as
determined by the Purchasing Manager. Public notice shall be provided a minimum of fifteen
(15) calendar days prior to the date set forth for the opening of the proposal.
D. Receipt of Proposals:
Proposals shall be opened publicly at the time and place designated in the request for proposal.
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Only the names of the proposers responding to the RFP shall be disclosed at the proposal
opening. Proposals shall be open for public inspection after contract award. Proprietary
information in the proposal that is clearly marked ❑proprietary❑ by the offeror shall not be
disclosed without written consent of the offeror.
E. Evaluation Process:
1. The Purchasing Division shall perform the initial review of the proposals to identify
those responses which are non -responsive or incomplete. Generally, non -responsive or
incomplete responses will be eliminated from further consideration.
2. Purchasing shall provide the Department with a copy of each proposal, the proposal
summary form, and, if applicable, an evaluation rating form. The letter of transmittal to
the department shall identify those proposers which are non -responsive or incomplete.
3. Highly technical or complex proposals may require review by an evaluation team or
committee. The members of the evaluation committee shall include representatives from
the user department, any other individual with specialized expertise, the City Manager or
his designee, and a representative from the Purchasing Division. The representative of
the Purchasing Division may serve on the committee as non -voting chairman.
Generally, the members of the evaluation committee are identified and a list of
committee members is provided to the Purchasing Division prior to the RFP
advertisement.
4. There are several methods for evaluating and scoring proposals. The Evaluation
Committee shall select the most effective method relative to the scope of work. The
three most common methods utilized are:
a. Each team member scores the proposal evaluation criteria separately and
individually. If the criteria in the RFP were not previously weighted, the
committee members should assign a weight to each criterion by its relative
importance, with the total weight equaling 100.
Scores shall be assigned for each criterion on the basis of 1 to 5 and should
represent the evaluator's best objective judgment. See Item #5 for scoring
explanations. The score of the criterion is multiplied by the weight of the
criterion to obtain the total score. Totals are added downward to gain a
cumulative grand total for each proposal.
The team then meets to tabulate and average the individual scoring results for
each proposal. The proposals are ranked in descending order corresponding to
the composite score of each proposal. Generally, the proposer with the highest
score of all evaluations is recommended for award.
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b. The individual committee members evaluate and score each proposal
independently. The members then meet to negotiate differences and agree on an
overall team score for each proposal rather than averaging scores to develop the
proposal rating.
The third method of proposal evaluation requires team effort throughout the
entire process. The team reviews each proposal and agrees on its evaluation.
The team also reviews prices and, if applicable, costs to correlate them to the
ranking to determine the cost -benefits of each proposal. Once all proposals are
evaluated, the team recommends award to the firm representing the best value to
the City.
5. Scoring Definitions:
Score of 1 = Poor
Proposal content is deficient or inadequate in most basic requirements, specifications, or
provisions for the specific criteria.
Score of 2 = Below Average
Proposal meets many of the basic requirements, specifications or provisions of the
specific item, but is lacking in some essential aspects of the specific criteria.
Score of 3 = Average
Proposal adequately meets the minimum requirements, specifications or provisions of the
specific item, and is generally capable of meeting the City's needs for the specific
criteria.
Score of 4 = Above Average
Proposal more than adequately meets the minimum requirements, specifications, or
provisions of the specific criteria, and exceeds those requirements in some aspects for the
specific criteria.
Score of 5 = Excellent
Proposal exceeds minimum requirements, specifications, and provisions in most aspects
of the specific criteria.
If price is included as one of the evaluation criterion, the lowest priced proposal should
receive the maximum weighted score for the price criterion. The other proposals should
receive a percentage of the weighted score based on the percentage differential between
the lowest proposal and the other proposals.
During the evaluation process, the evaluation committee may require additional
information or clarification. The Purchasing Division may schedule individual
presentations and interviews with the consultants as required.
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F. Negotiation with Responsible Offerors:
If it is determined that negotiation will result in a more advantageous contract for the
City, Purchasing may conduct negotiations with offerors for the purpose of clarification
to assure full understanding of and responsiveness to the requirements of the request for
proposal. Generally, negotiations are conducted with the highest ranked firms.
2. Each offeror shall be accorded fair and equal treatment with respect to opportunity for
discussion and revision of proposals. Discussions must be made with offerors
individually and information obtained from one competing offeror shall not be disclosed
to another offeror.
G. Award:
Refer to Florida Statutes, Chapter 287.055 for specific procedures governing the
acquisition and negotiation of Professional Services.
Award shall be made to the responsive offeror whose proposal is determined to be the
most advantageous to the City, taking into consideration price and the other evaluation
factors set forth in the request for proposals.
2. If the Purchasing Manager or City Commission determines that none of the proposals is
advantageous to the City, the City shall have the right to reject any and all proposals.
3. The contract file shall contain the supporting documents for which the award is made or
rejected.
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3.04 FIELD PURCHASE ORDERS
A. Purpose:
Field Purchase Orders (FPO) are used to provide immediate acquisition for small purchases of
items under $2000.00 not available through Petty Cash or other sources.
B. Forms:
Pre -numbered Field Purchase Order Forms are available in the Purchasing Division.
C. General Information:
Field Purchase Order Forms are to be used for purchases of commodities of $2,000.00 or less.
To protect the City's interest against liability exposure with service agreements, contractors are
required to furnish insurance, licenses, and permits; therefore, Field Purchase Orders are not
recommended for use to procure such services. Should a department head determine it necessary
to call for service, contact the Purchasing Division to obtain the proper indemnity guidelines.
Field Purchase Orders may be awarded without competition; however, it is recommended that
the using departments monitor market trends to assure cost effective buying and to diversify City
business to vendors that are competitive and able to meet the quality and delivery requirements.
Purchasing will provide commodity and supplier information upon request.
D. Procedure:
1. Prior to the purchase of an item(s), the using department shall type or print the complete
vendor name, address, date of purchase, department and account number to be charged
on the FPO Form.
2. The quantity, unit of measure, item description, unit price and total amount of the
purchase must also be typed or neatly printed on the FPO form. Do not attach itemized
lists of supplies to the FPO form.
3. The Department Director or authorized designee must sign the FPO form. Signature
stamps are not acceptable.
4. Instructions for disbursement of the Field Purchase Order Form are imprinted on the
lower portion of the form. Part #1- White to Vendor; #2 Yellow to Finance; #3 Pink to
Purchasing; and #4 Gold retained by Department for file.
It is the responsibility of each Department Director to see that Field Purchase Orders are
not misused by pyramiding or stacking orders, i.e. using two or more FPO's to buy items
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which in total exceed the $2000.00 limit. NOTE: To eliminate the potential for misuse,
F.P.O.s are limited to $2000.00 per day per vendor. For example: A Field Purchase
Order is issued to Safety Products on Monday morning; therefore, a second FPO cannot
be issued to Safety Products on Monday afternoon or on the same day.
6. Accounts should be monitored to avoid over expenditures.
7. Field Purchase Orders should not be used for:
a. Item(s) over $2,000.00 each.
b. Capital outlay equipment.
C. Membership Dues
d. Tuition Reimbursement
e. Subscriptions
f. Annual Requirement Contracts
g. Hazardous Chemicals (Material Safety Data Sheets (MSDs) required)
h. High risk services.
I. Recurring purchases from same supplier*
*Consider Annual Requirements Contract for repetitive purchases.
3.05 EMERGENCY PROCUREMENT:
A. Purpose:
To enable the City of Longwood to respond quickly in procuring the required materials, supplies,
equipment and/or services when an emergency condition exists.
B. Definition:
An emergency occurs when there exists an immediate threat to the life, health, welfare, or safety
of City employees or its citizens; when it is necessary to maintain or restore vital machinery,
equipment or services; when it is necessary to address regulatory laws and permits; or situations
which may cause major financial impact to the City should immediate action not be taken.
C. Authorization:
The Purchasing Manager, or designee, is authorized to make or authorize others to make
emergency procurement, provided that such emergency procurement shall be made with as much
competition as is practicable under the circumstances.
D. Emergency Procurement During Working Hours:
The Department Director, or designee, of the ordering department shall contact the Purchasing
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Manager or designee to explain the nature of the emergency and to request an Emergency
Purchase Order number.
1. The following information will be required from the department prior to the issuance of
an emergency purchase order number:
a. Item Description
b. Detailed explanation for request of emergency procurement
C. Type of equipment and asset number of equipment to be repaired, if applicable.
d. Vendor's name, addresses, telephone number, and contact person
e. Purchase price, or estimate total
2. The Purchasing Division shall maintain a log of emergency purchases.
3. Upon approval of the emergency procurement, the Purchasing Manager, or designee, shall
either make the purchase or authorize the ordering department to do so.
4. If the Purchasing Manager, or designee, is not available, the ordering Department Director
shall notify the City Manager before making the purchase.
5. The ordering department shall immediately initiate a requisition to cover the emergency
expenditure. The requisition must reference the emergency purchase order number;
competitive prices received, and include a detailed explanation of the circumstances of the
emergency purchase. The Department shall forward the requisition and all related
documentation to the Purchasing Division for final processing.
6. Frequently, an emergency occurs as a result of parts and labor required for repairs to vehicles
or equipment. Blanket Purchase Orders may be set up in advance with vendors who are
usually contacted for such repairs, in anticipation of minor repairs.
NOTE: Departments shall not use the emergency procurement procedures to abuse or otherwise
purposely circumvent established Purchasing Procedures. Failure to anticipate normal needs or
project deadline dates or a desire to expend excess or remaining budgeted funds prior to year end
does not constitute an emergency.
E. Emergency Procurement at Nights, Weekends, or Holidays:
Should an emergency occur other than during normal working hours, the user Department
Director or designee shall act to secure the necessary materials or service, and shall have the
authority to authorize purchases not to exceed $1,000. In the event the estimated cost of the
emergency purchase exceeds $1,000, the Department Director or designee shall obtain approval
from the Purchasing Manager, the Financial Services Director, City Manager or the Mayor.
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3.06 SOLE SOURCE PROCUREMENT
A. Definition:
Single or sole source procurement is a contract for the purchase of goods and services entered
into after soliciting and/or negotiating with only one source, usually because of the technology or
uniqueness required.
Sole Source purchases will be considered based on meeting the following criteria:
There is a lack of competition for a product or service and available from only one source
of supply.
2. It is a unique, one -of -a -kind service or product and the only item that will produce the
desired results or fulfill the specific need.
3. The product has certain essential patents, proprietary rights, or processes and there is no
satisfactory substitute item available.
4. The purchase of the item involves a die, tool, mold charge, or costly setup and the
expense of duplicating the item or setup is likely to be substantial.
B. General:
Purchases of supplies, equipment, and contractual services from a sole source may be exempt
from competitive requirements upon written documentation that there is only one source for the
required commodity and upon approval of the Purchasing Manager or City Manager.
The request for sole source purchase shall include the purpose and need, and an
explanation as to why the item is the only one that will produce the desired results or
fulfill the specific need.
2. The user department/division or Purchasing shall attempt to locate competition or an
alternate source of supply.
3. The Purchasing Division shall maintain a sole source file which includes letters and other
written documentation for sole source purchase.
C. Procedure:
The user department shall submit a written letter or a Request for Sole Source Purchase to the
Purchasing Division for review and approval by the Purchasing Manager or City Manager. The
sole source request will be approved or disapproved based on the criteria set forth in this section
and after a good faith effort is made to find other available sources.
The user department shall be informed as to any requests which are disapproved, and the
procurement shall be made in accordance with standard procedures.
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3.07 UTILIZING STATE OF FLORIDA TERM CONTRACTS
A. General:
The City has the option to utilize State Contracts when purchasing equipment, supplies, and
services.
The Department of Management Services, Division of Purchasing in Tallahassee establishes
contracts that are common to state agencies, local governments, and other public entities. These
contracts for goods and services are consolidated and standard specifications are prepared and
developed. State contracts are awarded for specified time periods and are available for use by
governmental entities.
B. Procedure:
The requirement for solicitation of bids or quotes shall not apply to purchases established under
Florida Statutes regarding State of Florida Term Contracts or Federal GSA schedules, when use
is authorized by the General Services Administration.
C. Authority
The Purchasing Manager may make purchases utilizing State Contracts regardless of dollar
value, provided they are budgeted items and are made in the best interest of the City. Purchases
shall be made in accordance with the approval limits as set forth in the Purchasing Ordinance.
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3.08 PURCHASES EXEMPT FROM COMPETITION:
A. Certain purchases due to their very nature are exempt from the competitive bid requirements.
The Department shall use the Direct Line Payment or Check Request Procedures to approve
payment of the following items:
1. Advertising: radio, newspaper, television or other media that can be classified as sole
source.
2. Utilities
3. Postage
4. Membership Dues
5. Subscriptions
6. Publications from publishers or exclusive distributors of such publications
7. Licenses, Permits and Fees
8. Travel expenses
9. Copyright materials
10. Patented Materials
11. Seminar and Conference Fees
12. Tuition Refunds
B. Requirements for bidding are waived for the purchase of the commodities listed below; however,
Purchase Orders shall be issued to provide payment for:
1. Educational tests, text books, printed instructional materials
2. Films, Filmstrips, video-tapes, disc or tape recordings or similar audio-visual materials
3. Books, reference books, and periodicals
4. Purchases from other governmental agencies or educational institutions
5. Purchases from cooperative purchasing agreements, County Contracts, State of Florida
Term Contracts, and GSA Contracts.
6. Emergency Purchases, when justified and properly documented
7. Sole Source Procurement
8. Maintenance Agreements
9. Purchases over $2000.00
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Chapter 4
CONTRACT ADMINISTRATION
4.01 GENERAL
A. Contract Administration is managing the contract to ensure it is fully executed. Administration
of the contract begins with the signing or execution of a contract or purchase order. The purpose
of contract administration is to assure that the contractor or supplier has fulfilled its contractual
obligations in accordance with the terms and conditions of the agreement.
Other responsibilities include reviewing request for changes or modifications, monitoring
performance, and resolving disputes, discrepancies and deficiencies.
B. Notice to Proceed:
Issuance of a Notice -to -Proceed will be provided to the contractor at a scheduled pre -
construction meeting or will be mailed within ten working days following acceptance of the
contract by both parties, provided the contractor has furnished the required insurance forms and
payment and performance bond forms, if applicable.
C. Documentation and Planning:
1. The Purchasing Division is responsible for maintaining all records and documentation
relating to a contract. The contract file shall be in chronological order and will contain at
a minimum, the purchase request, sources solicited, evaluation and award, contract or
purchase order, applicable insurance and bond forms, expediting and follow up reports,
and any other actions relating to the procurement transaction.
2. The more complex the project, the more planning is required to administer the contract.
An implementation plan or contract list should be developed for each contract that
requires multiple or scheduled actions by the contractor during the contract period. The
plan should be based on the contract and list the specific contract requirements. The
implementation plan will help to ensure the contractor fulfills the obligations of the
contract.
D. Change Orders:
Revisions, delays or disputes may cause changes in a contract. The modification of a purchase
order or contract shall only be authorized by the Purchasing Manager or designee. All changes to
a contract must be in writing. See Chapter 2, "Change Orders" for more detail.
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E. Contract Completion and Final Payment for Major Projects
l . The using agency shall provide the Purchasing Division with a written certification of
contract completion for major capital improvement projects and professional service
contracts. Contract Completion Forms are available in the Purchasing Division.
2. The contractor or consultant shall complete the appropriate affidavits upon completion of
the project. The following affidavit forms along with the original invoice must be
submitted with the vendor's payment request:
a. Certificate of Contract Completion;
b. Satisfaction of Lien from all sub -contractors and material suppliers;
C. Sub -contractor's Affidavit Form, if applicable;
d. Request for Final Payment Form.
3. The using agency shall review and approve the request for final payment upon
verification that the required affidavits have been received by the Purchasing Division.
4. The Purchasing Division shall review all required closing documents for completeness..
5. The requesting department shall provide the following documentation to the Finance
Division for final payment of all major projects:
a. Original final invoice;
b. Receiving Report Form, signed and dated;
C. Payment Transmittal Form signed by the using agency, Public Works Director,
City Engineer or Project Engineer, Purchasing Manager and Finance Director.
6. The Finance Division will process the invoice for final payment and close-out the
Purchase Order.
F. Cancellations of Purchase Orders and Contracts:
Purchase Orders and contracts may be canceled if the vendor fails to fulfill his contractual
obligations. Cancellations of purchase orders and contracts shall be requested by the using
Department in writing to the Purchasing Manager with complete justification. Upon review and
approval of the request, the Purchasing Division shall issue a Change Order to cancel the
Purchase Order in its entirety.
Cancellations to major contracts may require special action through an administrative process;
see Chapter 4.05, Default Actions, for additional information.
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4.02 RECEIVING AND INSPECTION:
A. Responsibility:
It is the responsibility of the department head or designee to insure that all goods and services are
carefully examined to determine conformance with the contract requirements or specifications.
The department shall insure that the appropriate Receiving Report copy of the purchase order is
promptly signed, dated and forwarded to the Finance Division for processing. In the event of a
rejection of goods or services, the Department shall promptly notify the Purchasing Division.
B. General:
Inspection is the close and critical examination and testing of delivered goods or services to
determine conformance to contract requirements. It is imperative that shipments are inspected for
damage, shortages, overages, and unauthorized substitutions immediately upon receipt. Delays in
inspection and acceptance may result in loss of cash discounts, slow payment of invoices, and
potential damage to vendor relationships.
C. Delivery:
In accordance with the Interstate Commerce Commission Regulations, delivery drivers are
responsible for tailgate delivery only, unless an extra charge has been paid for off-loading and
setting in place or inside delivery. Generally, goods and materials procured through the bid
process include delivery and set-up. Contact the Purchasing Division in the event of a dispute.
Most deliveries are FOB (Free -on Board) destination, freight prepaid, therefore, collect deliveries
should not occur. In the event of a collect delivery, contact the Purchasing Division for
assistance.
D. Inspection Procedure:
The Departments shall adhere to the following inspection procedures immediately upon receipt
of a shipment:
Delivery tickets should be marked "Received by , subject to inspection and
acceptance."
Check for external damage to the package as well as concealed damage. Take pictures of
obvious damage.
3. Verify the number of pieces, packages, or boxes delivered. Check the contents of each
carton against the packing list and receiving copy of the purchase order. All shortages or
damage must be noted on the delivery receipt or shipping ticket prior to signing for
receipt of shipment. Failure to report damages and shortages may result in null or void
claims.
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4. Verify that the goods or services conform to the quality, grade, or standard specified in
the purchase order or contract.
Inspect to insure that the design, construction, size, type, make, model, color, style, etc.
of the commodity conforms to the specifications, purchase order or contract.
E. Freight Damage:
Freight damage and claims against common or commercial carriers, (trucking services other than
the vendor's own truck and driver), must be carefully handled to avoid claim disputes.
Verify the number of cartons listed on the delivery receipt. If any shortage is discovered,
document the shortage on the carrier's delivery receipt. The driver should also sign as
confirmation of shortage. The Department should retain a copy of the delivery ticket.
2. Carefully examine each carton for damage. If damage if visible, document the damage on
the delivery receipt, have the driver sign the delivery ticket, and retain a copy.
If concealed damage is suspected, insist that the driver open the carton for inspection of
the contents. Do not allow the driver or carrier to retain the damaged item. Damages
should be noted on the delivery receipt and a copy must be retained by the Department.
4. Should the driver refuse to open the carton, write a statement on all delivery tickets:
"Concealed damage evident"; "Received subject to inspection and acceptance".
Retain damaged items and inner packing materials at the point where received until an
inspection is made by a carrier inspector.
6. Notify the Purchasing Division at once.
7. Call the carrier to report the damage and to request inspection. The call should be placed
immediately upon discovery of the damage. Failure to report concealed damage within
10 days after delivery may result in the carrier denying the claim.
Confirm the request for inspection call in writing as a protection measure to verify that
the carrier was notified within the 10 day period.
9. Insure that damaged cartons are not removed from the receiving area prior to inspection
of the packing materials and freight bill.
10. Carefully read the inspection report prior to signing. If you do not agree with the facts or
conclusions made by the inspector on the report, do not sign it. If repair of the item
would not be satisfactory, the inspector must request replacement on the inspection
report. The inspection report must specify replace for a new item to be ordered.
11. Forward a copy of the inspection report and delivery receipt to the Purchasing Division.
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The Purchasing Division will forward all necessary documentation to the vendor to
request repair, replacement, or return of damaged goods.
F. Rejection:
If a shipment is incorrect, damaged or unacceptable, do not use it and do not sign the receiving
report. The Department shall immediately notify the Purchasing Division of any discrepancies in
shipment, i.e. incorrect quantity, poor quality, etc. The Purchasing Division will advise the
vendor of the rejection and mutually agree on a replacement date.
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4.03 PAYMENT OF INVOICES
A. Purpose:
To provide for prompt payment of all invoices received by the City of Longwood and to comply
with the "Florida Prompt Payment Act" (Chapter 89-27, Laws of Florida).
B. Acceptance:
If the Department determines that the goods or services are in good condition and they comply
with the specifications and delivery requirements, the Department shall sign and date the
Receiving Report. A special Merchandise Received Stamp should be utilized. The signed
Receiving Report along with the packing slip and invoice, if available, shall be forwarded to the
Finance Division in a timely manner, as acceptance of the order and authorization to make
payment.
C. Partial Receipt:
As a general rule, partial payments are not recommended. However, if a large purchase requires
performance over an extended period of time, partial payments may be approved. The
Department shall forward a signed copy of the Receiving Report to Finance, indicating the actual
quantity received and amount approved for payment.
D. Cancel Outstanding Order:
When a partial shipment is received and the Department decides to consider the shipment
complete by canceling the remaining items, the Department must advise the Purchasing Division
and initiate a Change Order Request indicating the changes to the original Purchase Order.
Purchasing shall follow-up with the supplier to cancel the remaining items. It is important to note
that the vendor may impose a restocking charge for those items shipped and in route to the City.
E. Cancel Entire Order:
If, under extreme circumstances, the Department is compelled to cancel an order or the contract
before the supplier is obligated to deliver to item or service, the City may be considered in breach
of the contract, (anticipatory breach). The City could then be liable for any resulting injury to the
supplier.
F. Final Payment: Upon the complete receipt of all items of a back ordered shipment, the
Department shall forward the signed and dated original Receiving Report to the Finance
Division for payment.
4.04 VENDOR COMPLAINTS:
Complaints relating to vendor performance or delivery discrepancies must be reported in writing
to the Purchasing Division. Vendor Compliant Forms are available in the Office of Purchasing
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and should be completed as soon as possible after the problem is observed. Reporting is
necessary in order to monitor and evaluate vendor performance, and, if required, to take
appropriate and timely action.
4.05 DEFAULT ACTIONS:
A. If a supplier or contractor fails to deliver an order by the delivery date agreed on in the contract
or purchase order or to perform according to contractual provisions, legally the supplier has
breached the contract and is considered in default. Prior to taking any default action, the
following factors should carefully be considered:
a. The specific reasons for such failure;
b. The time period required to obtain the goods or services from other sources compared to
the delivery time specified by the delinquent supplier.
B. If it is determined that the contractor is in default, a written notice to cure letter shall be issued
advising the supplier of the following:
a. List the non -delivery or other non-conformance issues;
b. Advise the contractor that they are in breach of the contract;
C. State the number of days or a date for correction of the default;
d. Advise that default of the contract will cause the City to cancel the order or terminate the
contract and hold the contractor liable for any excess costs.
C. Most disputes are resolved through negotiation and compromise; however, in the event that a
satisfactory solution can not be reached with the contractor and upon expiration of the time
period stated in the letter(s), the City may resolve differences through an administrative process,
using mediation or arbitration or through formal judicial (litigation) procedures.
D. The contractor or supplier may be suspended from doing business with the City until a settlement
has been reached.
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Chapter 5
PERSONAL PROPERTY CONTROL AND DISPOSAL
5.01 PERSONAL PROPERTY CONTROL:
A. Definition:
Property control entails maintaining the records and performing annual inventories of all tangible
personal property owned by the City. Personal Property is described as non -tangible (of a non-
consumable nature), valued at $750.00 or more, and has a life expectancy of one year or more.
B. Responsibility:
The Financial Services Department is responsible for the maintenance and control of the property
records, including assigning property identification numbers, inputting data into the Fixed Assets
computer program, reconciliation of property records and facilitating the annual inventory.
The Purchasing Division shall provide the Financial Services Department with a copy of the purchase
order form marked Property Records❑ for all purchases from the capital improvements, 6200, and
Capital Equipment, 6400 line.
5.02 SURPLUS PROPERTY
A. Purpose:
To regulate the disposal of obsolete or excess tangible personal property.
B. Form:
Surplus Property Forms are available from the Purchasing Division.
C. Definition:
Personal property is defined as property that is obsolete, excess, or the continued use of which is
uneconomical or inefficient, or which serves no useful function.
D. General:
All personal property that is no longer needed or used by a department, to include vehicles, heavy
equipment, desks, chairs, tables, office equipment, etc. are to be reported to the Purchasing
Division for disposition by either transfer, scrap, or sale in accordance with Florida State Statutes
and City Ordinance.
E. Procedure:
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It is the responsibility of each department to notify the Purchasing Division of any equipment or
other tangible personal property is surplus to that department's need.
1. Transfer of Property:
The department shall complete a Request to Transfer Form and shall acquire signatures
of both the transferor (owning department director) and the transferee (receiving
department director). The completed form shall be forwarded to the Financial Services
Department for updating the Fixed Assets Records and finalizing the transfer.
2. Surplus Items:
a. Items which are surplus to the needs of the department are to be listed on a
Surplus Property Form. The department head must sign and forward the form to
the Purchasing Division.
b. Transfer to other City Departments should be considered first. The Purchasing
Division may survey the other departments and divisions to determine if the
property is needed or can be used in another area.
Prior to final disposition, all property shall first be declared surplus to City needs
by the City Commission, as required by Florida State Statutes, Chapter 274 and
City Ordinance.
d. Upon approval by the City Commission, the Purchasing Division shall dispose of
surplus property by one of the following methods:
1. Trade-in on new equipment.
2. Donation to another governmental agency.
4. Sale of item(s) utilizing the most appropriate method, i.e. auction, sealed
bid. In an effort to obtain the highest revenues for surplus automobiles
and heavy equipment, sealed bids should be considered prior to sending
to auction.
4. Dispose of as scrap.
e. Notice of auction shall be publicly advertised in the newspaper at least one (1)
week prior to the scheduled date of sale.
f. The check for the proceeds from the auction is forwarded to the Finance Division
for deposit into the appropriate account(s).
g. The final surplus property auction list indicating the proceeds received shall be
provided to the Finance Division for updating the Fixed Assets Records.
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h. The Police Department is responsible for the disposition of all confiscated and
recovered property pursuant to applicable state laws. Upon request from the
Police Chief, the Purchasing Manager may sell such confiscated property during
the scheduled City auction. (Refer to Procedures for Disposal of Recovered
Property.)
5.03 PROCEDURES FOR DISPOSAL OF RECOVERED PROPERTY
A. Purpose:
The purpose of this policy is to provide uniform procedures for the disposal of unclaimed
evidence, lost or abandoned property by the City of Longwood Police Department in compliance
with Florida State Statutes Chapter 705.
B. General:
This policy was adopted by Resolution #681, on September 9, 1991.
C. Procedure for Lost or Abandoned Property:
l . Abandoned property may be retained for use by the Police Department or by the City. It
may also be traded, sold, disposed of as refuse or donated to a charitable organization. No
formal advertising is required for abandoned property.
2. Lost property with intrinsic value is retained by the Police Department for a minimum of
90 days and requires public notice of intended disposition of the property.
3. The Police Department will notify the Purchasing Division in writing when subject
property is available for donation to a non-profit, charitable organization. A separate list
will be furnished which classifies the property as lost. A description of the items should
include make, model, serial number, (when applicable), or other pertinent information.
4. The charitable organization should be selected from a rotating list of such organizations.
5. Notice of such donation shall be advertised in the local newspaper of general circulation
in the County where the property was found. The publication is to be run once a week
for two (2) consecutive weeks. The advertisement must include the description of the
item and the intended disposition.
6. If, after providing adequate notice of the intended disposition of subject property, no
claim has been made by the rightful owner, the City may donate the items to the
designated non-profit organization.
7. The President or authorized agent of the non-profit organization must sign for the receipt
of the property.
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D. Unclaimed Evidence:
I. If the property is classified as evidence, it is held a minimum of 60 days, (plus 30
additional days for appeals), for total of 90 days after final disposition of the proceeding.
2. If the property is of intrinsic value, the Department may elect to retain the property for
use within the City or department, or donate the property to a charitable organization.
3. Public Notice is not required for unclaimed evidence.
4. If the Police Department determines that the property is not of intrinsic value, the Police
Department may elect to destroy the property.
It is the responsibility of the Police Department to keep correct account of the disposition
of all property in the evidence records.
It is the City's policy, after the property has been cleared by the Police Department, to
donate all lost, abandoned (with no intrinsic value), and unclaimed evidence, to a non-
profit organization. The non-profit organization may make the determination whether to
use or salvage the property at their discretion.
E. Property Forfeited:
The Police Department received the final order of forfeiture by the court which grants the
Department the right, title and interest to the property.
2. The Police Chief determines the disposition of the property. The forfeited property may
be retained for use by the Department. If the Police Chief deems it necessary, he may
dispose of the property in the following manner:
a. Salvage the property;
b. Transfer the property to any public or non-profit organization;
C. Sell the property at public auction to the highest bidder.
3. Public notice of the sale is required as provided by law.
4. The proceeds of the sale shall be applied to any liens, court costs, or for payment of any
storage, maintenance, and security of such property. The remaining proceeds shall be
deposited in the City's Law Enforcement Trust Funds as per Florida State Statutes
932.704.
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CHAPTER 6
ACQUISITION OF DESIGN -BUILD
PUBLIC CONSTRUCTION PROJECTS
6.01 Purpose
In order to comply fully with the requirements of Section 287.055 (c), Florida Statutes, the
following procedures shall be followed in selecting design -build firms to provide combined
design and construction services.
A. Authority:
The City Manager is authorized to determine that a City project shall be constructed under a
design -build contract and shall authorize the preparation of a design criteria Package.
B. General:
This procedure applies to the acquisition of all design -build public construction projects. The
scope of the procedure is:
1. To implement procedures for acquiring design criteria professionals for the proper
preparation of design criteria packages.
2. To assign criteria, procedures and standards for the preparation and evaluation of design -
build proposals.
3. To assign responsibilities for design -build public construction project in the case of
public emergencies.
C. References:
1. Florida State Statutes 287.055, Consultants Competitive Negotiation Act;
2. Purchasing Ordinance #16.5.
D. Definitions:
I . "Department" - The City of Longwood Purchasing Division.
2. "Design -build" - Providing responsibility within a single contract for design and
construction where services within the scope of practice of professional engineering or
architecture, as defined by the laws of the State of Florida, are performed by an engineer
or architect duly registered in the State of Florida; and where services within the scope of
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construction contracting, as defined by the laws of the State of Florida, are performed by
a contractor qualified and licensed under the applicable Florida Statutes.
"Design -Build Firm" - A partnership, corporation, or other legal entity which is certified
under Florida ss. 489.119 to engage in contracting through a certified or registered
general contractor or a certified or registered building contractor as the qualifying agent;
and is certified under ss 471.023 to practice or to offer to practice engineering; certified
under ss 481.219 to practice or to offer to practice architecture; or certified under ss.
481.319 to practice or to offer to practice landscape architecture.
4. "Design -Build Contract" - A single contract with a design -build firm for the design and
construction of a public construction project.
5. "Design Criteria Package" - Concise, performance -oriented drawings or specifications of
the public construction project. The purpose of the design criteria package is to furnish
sufficient information so as to permit design -build firms to prepare a bid or a response to
a Request for Proposal, or to permit the City to enter into a negotiated design -build
contract. See Section 6.03, Design Criteria Package Requirements.
"Design Criteria Professional" - A firms who holds a current certificate of registration
under Florida ss. Chapter 481 to practice architecture or landscape architecture or a firm
who holds a current certificate as a registered engineer under Chapter 471 to practice
engineering and who is employed by or under contract to the City for the providing of
professional architect services, landscape services, or engineering services in connection
with the preparation of the design criteria package.
7. "Firm" - Any individual, firm, partnership, corporation, association, joint venture, or
other legal entity permitted by law to practice engineering, architecture, and/or
construction contracting in the State of Florida.
6.02 SELECTION ADVISORY COMMITTEE:
A. For each design -build project there shall be a Selection Advisory Committee composed of the
following persons:
1. Public Works Director or designee
2. Purchasing Manager, or designee
3. A representative from the department for which the project will be constructed
4. Other person(s) appointed by the City Manager
5. The design -build criteria professional may assist the Selection Committee as a Technical
Advisor
6. The Project Manager, if applicable.
B. The Selection Advisory Committee shall serve in an advisory capacity to the City Manager and
City Commissioners through completion of the design -build project.
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C. The Selection Advisory Committee shall interview and recommend the design criteria
professional and the design -build firm.
6.03 DESIGN CRITERIA PACKAGE:
A General:
All design -build projects require a design criteria package to define the project parameters which
are to be used to assist the Selection Advisory Committee in evaluating the proposals.
1. The design criteria package consists of performance oriented drawings or specifications,
or both, of the project.
2. The design criteria package shall be prepared and sealed by a design criteria professional
employed by or retained by the City. If the City elects to enter into a professional services
contract for the preparation of the design criteria package, the design criteria professional
shall be selected and contracted in accordance with the requirements of Florida State
Statutes Chapter 287.055, Subsections (4) and (5).
3. The design criteria services of a firm under continuing contract may also be utilized if the
project is estimated to be less than $2,000,000 and provisions for design criteria services
are in the contract.
4. The City may also elect to utilize the services of a City employee if that employee is
certified under Chapters 481 or Chapters 471 to practice architecture, landscape
architecture, or engineering.
4. A project estimated to be less than $150,000 does not require formal advertising for a
professional services consultant in accordance with Florida State Chapters 287.055
(3)(a).
B. Preparation of the Design Criteria Package:
The Design Criteria Package for a public construction project should include, but not be
limited to:
a. full scope of work
b. legal description of site
C. survey information/soil test reports
d. interior space requirements
e. value engineering (material quality and standards)
f. life cycle requirements (maintenance/energy)
g. concept geometry for minimum staffing
h. schematic layouts, if applicable
I. conceptual design criteria
j. cost or budget estimates
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k. design and construction schedules
1. site development requirements
M. provisions for utilities, storm water retention and disposal
n. parking requirements
o. permit/zoning information
P. other criteria necessary to provide sufficient information upon which firms may
prepare technical proposals and price proposals.
6.04. DESIGN -CRITERIA PROFESSIONAL:
A. General:
Acceptable, minimum requirements to act as the design criteria professional include, but
are not limited to:
a. Florida licensed professional engineers and architects employed by the City.
b. A Florida licensed engineering or architectural firm providing management
services to the City.
C. Engineering and architectural firms selected by the City pursuant to Section
287.055, Florida Statutes, to be the design criteria professional and licensed to
practice in the State of Florida.
2 A design criteria professional who has been selected to prepare the design criteria
package shall not be eligible to render services under a design -build contract executed in
accordance with the design criteria package.
3. In addition to the preparation and sealing of the design criteria package, the design
criteria professional may also be contracted to provide services concerning the following:
a. Assist and advise in the evaluation of the responses or proposals submitted by the
design -build firms;
b. Assist and advise in the review and approval process by the City of the detailed
working drawings and plans submitted for the project; or
C. Evaluation of the compliance of project construction with the design criteria
package prepared by the design criteria professional.
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B. Public Announcement:
Except in emergency situations, the Department shall publish an announcement in a
newspaper having a general circulation in the area where the proposed work is located
setting forth a general description of the project requiring design -build services and
defining procedures for interested firms to apply for consideration.
2. The notice shall contain time frames for submittal of letters of interest, statement of
qualifications and performance, a general description of the project and any other
requirements for the submittal of letters of interest.
C. Selection and Pre -qualifications of Design Criteria Professional:
1. Firms desiring to submit proposals on the design -build project must submit a letter of
interest and statement of qualifications setting forth the abilities of the entities involved
in the firm and providing any other information required by the announcement of the
project.
2. The Selection Advisory Committee shall review the proposals to determine the relative
ability of each firm to perform the services required for each project. Determination of
ability shall be based upon, but not limited to, the following criteria:
a Professional Personnel qualifications;
b. Past performance in the preparation and evaluation of design criteria packages,
including knowledge of benefits in using the design -build process.
C. Ability to meet time and budget requirements;
d. Office location and ability to respond to the City's needs;
e. Recent, current and projected workload;
The volume of work previously awarded to each qualified firm, with the object of
effecting an equitable distribution of contracts among qualified firms, provided
the distribution does not violate the principle selection of the most highly
qualified design criteria professional; and
g. Other factors appropriate to the specific project.
The Selection Advisory Committee shall select not less than three firms deemed to be
most highly qualified to perform the required services, after considering the selection
criteria factors.
4. The Selection Advisory Committee may request, accept, and consider proposals for the
compensation to be paid to the design criteria professional only during negotiations as
per Florida State Statutes Chapter 287.055 (5).
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5. The final negotiated fee and contract of the design criteria professional shall be approved
by the City Commission.
6.05 DESIGN -BUILD FIRM
A. Procedure for Short Listing Firms:
1. Except in emergency circumstances, the Purchasing Manager shall publish in a
newspaper of general circulation, a public announcement providing a general description
of the design -build project. The public announcement shall include a brief statement of
the qualifications required for the design -build firm and request qualification statements.
2. The Selection Advisory Committee, with the assistance and advise of the design -build
criteria professional, shall establish the qualifications required for the design -build firm.
The qualifications required may include the following factors:
a. Prior work experience and performance of each firm and previous experience of
the firm's team as it relates to working and project coordination as a team;
b. The proposed key personnel to be engaged in the design -build project;
C. Proof of compliance with all certifications and license requirements;
d. The financial capacity of the firm; and
e. Other factors appropriate to the specific project.
3. The Selection Advisory Committee shall evaluate the qualification statements and
establish a short list of at least three (3) qualified design -build firms to whom a Request
for Proposal and design criteria package shall be issued.
B. Request for Proposals:
Technical Proposals: The technical proposal shall include but not limited to the
preliminary design plans, preliminary specifications, technical reports, calculations,
permit requirements, and other data as requested in response to the design criteria
package.
3. Price Proposals: The price proposal shall include one lump sum cost for all design,
construction management, and construction of the proposed project, preliminary design
submittal reports and other data requested in response to the design criteria package.
a. The price proposals may be required to be submitted in a separate sealed
envelope with the face of the envelope clearly marked and identified as a price
proposal, including the firms name, project description, and any other
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information required by submission of proposals.
b. The price proposal shall be secured by the Purchasing Division until such time as
the Selection Committee meets to select the design -build proposal.
4. Selection Criteria: The selection criteria for evaluating Request for Proposals may
include:
a. The ability, capacity, and skills of the firm to perform the contract or provide the
services required.
b. Whether the firm can perform the contract or provide the service promptly,
within the time specified, without delay or interference.
C. The character, integrity, reputation, judgments, experience, and efficiency of the
firm.
d. The quality of performance of previous contracts or services.
e. The previous and existing compliance by the firm with laws and ordinances
relating to the contract.
f. The sufficiency of the financial resources and ability of the firm to perform the
contract.
g. The quality, availability, and adaptability of the supplies or contractual services to
the particular use required.
h. The ability of the firm to provide future maintenance and warranty services.
1. The number and scope of non -compliant conditions attached to the proposal.
5. Pre -Proposal Conference: A pre -proposal conference may be held to discuss the project
and answer any questions regarding the design criteria package prior to the due date of
the design -build proposals.
C. Evaluation and Award:
The Committee may consider recommendations of the design criteria professional in the
evaluation of the Request for Proposals to assure compliance with the design criteria
package.
2. The Selection Advisory Committee shall review the design concepts or preliminary
designs proposed by each firm and shall establish a rating system for evaluation of each
proposal based on the weighing factors stated in the package; i.e. price, technical and
design aspects.
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The Selection Advisory Committee will evaluate and score each proposal. The
Committee shall submit their recommendation for award to the City Commission for
final approval of the contract.
4. The firm to whom the design -build contract is awarded will be responsible for creation of
the project design based on the criteria in the design criteria package and the construction
of the facility in compliance with the approved plans and specifications.
5. The Department shall provide written notification by mail to each firm that submitted a
proposal of the award or rejection of the proposals within 30 days of final selection or
determination to reject all proposals.
6.06 CONSTRUCTION AND SUPERVISION:
After award of the contract to a design -build firm, the City Manager may retain the design
criteria professional to supervise or assist in the approval of the detailed working drawings of the
project and evaluate compliance with the design criteria package during the construction of the
project.
6.07 PUBLIC EMERGENCY PROJECTS:
As stated in Florida State Statutes, 287.055, 10(c) 6, in the case of public emergencies, the City
Commission may declare that an emergency exists and authorize negotiations with the best
qualified design -build firms available at that time.
6.08 RESERVATION OF AUTHORITY:
The authority to issue or revise this Department Operating Procedure is reserved to the City
Manager.
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CHAPTER 7
PROCUREMENT CARD PROGRAM
7.01 PURPOSE
To establish policies for the use and control of procurement cards which will be assigned to and
utilized by designated City employees to purchase goods and services, on behalf of the City of
Longwood or when authorized per this policy. This policy is intended to accomplish the
following:
• To ensure that procurement card purchases are accomplished in accordance with the
City's established ordinances, policies and procedures.
• To ensure appropriate internal controls are established within each department utilizing
the procurement cards so that they are used only for authorized purposes.
• To ensure that the City bears no legal liability from inappropriate use of procurement
cards.
• To provide for disciplinary action if the purchasing cards are misused.
• To provide minimum standards for the use of procurement cards, thus authorizing other
departments to establish additional controls beyond those suggested by these policies.
A. Authority:
The department head, with final approval by the City Manager, determines which employees will
be selected to use the procurement card.
B. Definition:
1. Procurement Card Manager - The Purchasing Manager, also referred to as Program
Manager, is responsible for the implementation of the Procurement Card Program,
training, and management of the program. Policies and Procedures and applicable forms
are maintained and updated by the Purchasing Manager as needed.
C. General Scope of Program:
The City of Longwood's Procurement Card Program is designed to improve efficiency in
processing low dollar purchases from vendors that accept the Visa credit card. This program will
allow the cardholder to purchase approved commodities directly from authorized vendors. The
scope of the program is to accomplish the following:
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a. To provide an efficient method of purchasing and for the payment of goods and
services not to exceed $2,000.00 per purchase transaction.
b. Reduce the use of Field Purchase Orders.
C. Reduce the time spent by Accounts Payable processing low dollar transactions.
D. The Procurement Card:
Each procurement card will be issued to a named individual. The card will be imprinted with the
individual's name, the name City of Longwood and the City Logo as the Government buyer of
the goods and services, the Florida State Sales Tax Number, account number and expiration date.
The Purchasing Division and the Financial Services Department will monitor the
performance of the program. All questions or concerns should be directed to:
Procurement related: Purchasing Manager 260-3480, or
Accounting related: Financial Services Director 260-3475
E. Procurement Card Process:
The procurement card system simplifies the procurement and payment disbursement process.
Procurement responsibility is delegated to the ordering department enabling an authorized
cardholder to place an order directly with the vendor.
When a purchase authorization is requested by the supplier at the point -of -sale, the Visa
procurement card system validates the transaction against preset limits established by the
employees Department. All transactions are approved or declined electronically based on the
procurement card authorization criteria established. The authorization criteria may be adjusted
periodically as needed and may include, but is not limited to, the following:
* Single purchase limit (not to exceed $2000.00)
* Monthly spending limit
* Approved merchant category codes
The authorization process occurs through the electronic system that supports the procurement
card processing services under the City of Longwood's agreement with Bank of America.
F. Responsibility:
The following is a summation of the responsibilities of the individuals and organizations
involved in the procurement card system.
1. Department Head:
* Request procurement cards for designated employees;
* Set departmental spending limits within established guidelines;
* Designate representatives responsible for authorizing charges;
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* Collect cards from cardholder at the end of employment;
* Evaluate the need to cancel or reissue cards when employees transfer;
* Notify the Procurement Card Manager of terminated cards;
* Comply with all purchasing and procurement card policies and procedures;
2. Cardholder:
* Hold and secure procurement card;
* Ensure availability of funds and proper account codes;
* Order/receive materials and services;
* Recheck each transaction: No sales tax and no back -orders;
* Collect and save sales receipts. Maintain in safe location;
* Match receipts with monthly card statement;
* Review monthly statements for validity of all transactions;
* Process all billing statements in a timely manner;
* Identify disputed charges;
* Review monthly charges with supervisor;
* Comply with all purchasing and procurement card policies and procedures;
3. Department Representative: (As designated by Department Head)
* Review monthly statement with cardholder;
* Verify there are no sales tax charges and no back -orders;
* Ensure availability of funds in proper account codes;
* Verify the appropriateness of account codes;
(i.e., Department/Division/Function/Object Code)
* Research, report, and follow-up on disputed items;
* Sign the monthly statement authorizing charges;
* Process all billing statements in a timely manner;
* Forward statement and supporting receipts to Accounts Payable;
* Comply with all purchasing and procurement card policies and procedures.
4. Finance Division:
* Monitor changes for proper account codes and fund availability;
* Receive approved monthly statements from all card holders;
* Receive consolidated statements from procurement card issuer;
* Confirm that all charges are authorized by department representatives;
* Notify departments when approved monthly statements are not received;
* Pay all non -disputed monthly charges from consolidated statement;
* Process accounting data;
* File and store statements, receipts, etc.
* Administer 1099 reporting;
* Monitor missing documentation and notify the Procurement Card Manager;
* Notify the Procurement Card Manager of any violations or discrepancies.
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5. Procurement Card Manager: (Purchasing Manager)
* Coordinate program policy issues;
* Issue list of commodity codes to department heads;
* Block commodity codes for procurement card program;
* Initiate training program for all cardholder;
* Coordinate issuance and cancellation of cards;
* Target new cardholder and expanded use of card;
* Maintain policy and cardholder guides/manuals;
* Evaluate procurement card feedback from suppliers and from departments;
* Coordinate and maintain internal controls;
* Assist in resolving billing disputes;
* Participate in ongoing program reviews;
* Pursue supplier discount opportunities;
* Establish and monitor bench marking objectives;
* Conduct semi - annual inventory of procurement cards;
6. External Auditor:
* Conduct periodic operational and compliance audits and reporting
7.02 ASSIGNMENT AND CONTROL OF THE PROCUREMENT CARD
A. Request For and Issuance of Procurement Card:
1. Procurement cards may be issued to individual employees who frequently
purchase goods and services in single purchase amounts of $2000.00 or less.
2. The Department head or designee shall complete the Visa Purchasing Account
Structure Form to indicate the authorized cardholders, billing and reporting
structure for the Department.
Each employee requesting issuance of a procurement card shall complete the
Purchasing Cardholder Information Form. The form is available through the
Purchasing Card Manager. Cardholder information includes name, social security
number, telephone number, monthly reconciliation statement address and
employee signature. The Department head shall recommend an authorized
monthly credit limit. (The single transaction limit is $2000.00). Upon
completion of the Cardholder information form, the Department shall forward the
information to the Purchasing Card Manager for final execution and processing.
2. The procurement card will have the employee's name, the City's name, card
number, City tax exemption number, and the expiration date embossed on the
face of the card. The Bank which issues the procurement card will not have
access to the individual cardholder's personal information other than the
information supplied on the Cardholder Information form.
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3. All requests for new card holders, changes to current cardholder, or changes to
credit or transaction limits must be made by the department head. The
department head shall complete and forward the Purchasing Card Maintenance
Form to the Procurement Card Manager for processing.
4. The Procurement Card Manager will notify the requesting department upon
receipt of the procurement card from the Bank. The cardholder will be required
to personally take receipt of the card. Prior to receiving the card, the cardholder
will be given a copy of the Procurement Card Policies and Procedures and an oral
review of the program. The cardholder will be required to sign a Certification
and Receipt Form.
The Procurement Card Manager will advise the Finance Division upon the
issuance of all procurement cards.
B. Lost or Stolen Procurement Cards:
If a procurement card is lost or stolen, it is the responsibility of the cardholder or
department representative to immediately notify the procurement card company
and the Procurement Card Manager of the loss. To report a lost or stolen card to
the procurement card Company Monday thru Friday, between 8:00 a.m. and 6:00
p.m., call Customer Service 1-800-300-3084 call VISA anytime at 800-449-2273.
2. The cardholder will be responsible for reporting all information necessary to
reduce the liability to the City for a lost or stolen card.
3. The department is responsible for all costs associated with a lost or stolen card.
4. Disciplinary action will be taken in the event that the Procurement Card Manager
or bank is not notified within 24 hours of the loss.
C. Termination or Transfer of Cardholder
When an employee ends his or her employment or is transferred to another
department, the Department Head must collect the procurement card and destroy
it. The department must then submit the destroyed card to the Procurement Card
Manager, who will notify the financial institution to cancel the card.
2. If the department is unable to collect the procurement card when an employee
terminates, the Department Head must immediately notify the financial institute
and the Procurement Card Manager. The Procurement Card Manager will ensure
that the card is canceled.
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Should a cardholder be transferred to another department, it will be the new
Department Head's responsibility to determine if the employee should be issued a
new procurement card in their new position.
D. Inventory of Procurement Cards:
Periodically, the Procurement Card Manager will provide a current list of procurement
cards to each department. Departments will conduct a physical inventory of all cards and
will provide a report to the Purchasing Office of the results of the inventory.
7.03 LIMITATIONS ON USE OF PROCUREMENT CARD
A. Cardholder Use Only
The procurement card may be used only by the employee whose name is embossed on the
card. No other person is authorized to use the card.
B. City Purchases Only
The procurement card is to be used for City authorized purchases only. The procurement
card cannot be used for any personal use and any such use will require immediate
reimbursement and will result in disciplinary action which may include dismissal.
C. Dollar limitations
The Department Head approving the assignment of a procurement card will set
two (2) limits for each cardholder: A single purchase limit and a 30-day limit.
The maximum limit shall be $2000.00 for a single purchase and $5,000.00 during
the 30-day billing cycle, or as authorized by the City Manager. Requests for
spending limit changes must be initiated and authorized by the Department Head,
and approved by the City Manager or Procurement Card Manager.
2. A purchase may consist of multiple items, but the invoice total must not exceed
$2000.00 or the cardholder's limit if less than $2000.00. Payment for purchases
shall not be split to stay within the single purchase limit. Purchases will be
denied if the authorized single purchase limit is attempted.
3. No purchases will be allowed for capital outlay items.
D. Other Conditions
1. All items purchased over-the-counter must be immediately available. No back
ordering is allowed.
2. All items purchased during one telephone transaction must be delivered in a
single delivery. If an item is not immediately available, no back ordering is
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allowed.
3. All items purchased by telephone must be delivered by the vendor within the 30-
day billing cycle. The order should not be placed without this assurance.
E. Prohibited Uses of Procurement Cards
The following types of items may not be purchased with a procurement card, regardless
of the dollar amount:
1. Gasoline or oil, unless there exists an emergency
2. Vehicle repairs unless authorized by Public Works
3. Travel expenses relating to food
4. Cash advances
5. Inventory items
6. Items available on a blanket purchase order
Prohibited uses continued:
7. Capital outlay and expenditures related to capital projects
8. Personal items
9. Telephone calls
10. Any additional goods or services specifically restricted by the Department Head
or the Division of Purchasing.
7.04 VIOLATIONS:
A. Personal Use:
It is a direct violation of City Policies and Procedures to use the procurement card for personal
use. Any abuse or misuse of the procurement card or this procedure shall result in this privilege
being suspended or revoked. The Procurement Card Manager will refer violations and
discrepancies to the City Manager for disciplinary or other appropriate action. Personal use of the
procurement card will require immediate reimbursement to the City and will result in
disciplinary action which may include dismissal.
B. Other Misuses:
It is the responsibility of the ordering department to ensure all "extra" charges such as
freight handling, set up, etc. are considered before a procurement card transaction is
made. A vendor's willingness to honor a procurement card transaction exceeding
$2000.00 does not authorize departments to make such purchases.
2. Purchases from vendors that create conflicts of interest, i.e.: companies owned by the city
employee or their relatives, etc.
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3. Multiple procurement card transactions to circumvent the $2000.00 limit.
4. Procurement card transactions referenced in Section 7.03 - Prohibited Uses of
Procurement Cards.
5. Failure to produce proper documentation, receipts, invoices, monthly statements, etc. to
Finance for prompt payment.
6. Failure to report lost or stolen procurement card as per with Section 7.02.
Charging to accounts when funds are not available.
7.05 CHARGING AND PAYMENT OF INVOICES:
A. General Information
l . When using the procurement card, the department will make the purchase at the
best possible price.
2. Since the procurement card purchase is initiated at the department level, there is
no automatic encumbrance of budget funds until the transaction is entered into
the Field Purchase Order Menu. Therefore, the department must check and insure
that the account being charged has funds readily available for any procurement
card transaction at any given time.
B. Documentation of Over the Counter Purchases
When a purchase is made with the procurement card, the cardholder must obtain
the customer's copy of the charge slip in addition to the detailed invoice/receipt.
The charge slip or related cash register slip/receipt must show in sufficient detail
the type and number of items purchased with the unit cost.
2. The charge slip and detailed invoice/receipt will be retained by the cardholder or
by the department representative in a secure location. All charge slips and
invoice will be verified against the monthly bank statement and forwarded to
Accounts Payable with the monthly statement.
3. The City is exempt from sales tax. The cardholder must ensure that the vendor is
aware of this and that the sales tax is not added to the charge transaction.
C. Telephone Orders
When placing a telephone order, the cardholder must confirm that the vendor will
not charge the procurement card transaction until the item is shipped. This will
ensure that the receipt of the item occurs during the same billing cycle as the
charge.
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2. Inform the vendor that the City is tax exempt and will not pay tax. The tax
exemption number is imprinted on each card.
3. It is important to inform the vendor that no back -orders are permitted.
4. A telephone log form will be used to document or record all telephone
procurement transactions. This form will be held at the department and forwarded
with the monthly billing statement.
D. Missing Documentation:
In the event the cardholder does not have the original documentation of the
transaction to forward with the monthly statement, the cardholder shall
immediately obtain a copy. If a copy can not be obtained, the department head
must explain the reason for the lack of supporting documentation and provide a
detailed description of the purchase. The documentation shall include the
description of each item, the quantity purchased, the unit cost per item, the date
of purchase, the vendor name, and address and the explanation.
2. Continued incidents of missing documentation may result in the cancellation of
the employee's procurement card.
E. Payment and Invoice Procedures:
The procurement card company will mail an individual billing statement to each
cardholder's office. In addition, one consolidated statement for all cardholders
will be mailed to the Finance Division. The statement of account will list all
transactions processed during the previous 30 day billing cycle. If no purchases
were made on the procurement card during the billing cycle, no statement of
account will be generated unless adjustments for previously billed transactions
have been processed during that cycle.
2. The cardholder must review the statement and note any errors or discrepancies.
Procurement card slips/receipts for all items listed on the statement should be
attached to the statement. Account numbers for each item (or account numbers
and total dollar amounts for groups of items) will be written on a designated
payment authorization form to be attached to the statement. The statement will
then be reviewed and the form signed by the department representative
designated by the Department Head. By signing the form, the designated
department representative is certifying that all charges are appropriate, funds are
available, and payment is authorized based on the attached receipts. Once the
department representative has reviewed all statements for which they are
responsible, the statements and forms are forwarded to the Accounts Payable
section of the Finance Division. All statements will be forwarded to the Finance
Division within five (5) working days after receipt.
3. The Finance Division will ensure that the procurement card charges are paid on a
timely basis and that the consolidated statement received is reconciled against the
individual cardholder statements forwarded from the departments. Department
Heads will be notified when individual statements are not received in the allotted
time. Continued failure to meet the five (5) working day deadlines may result in
the revocation of procurement cards at the discretion of the Procurement Card
Manager.
7.06 DISPUTES:
A. If items purchased with the procurement card are defective, the cardholder must return
the items(s) to the vendor for replacement or credit. If a service which is paid with a
procurement card is found to be unsatisfactory, the vendor must be notified and asked to
correct the situation or to provide a credit. If the vendor refuses to replace or correct the
faulty item or service, the purchase will be considered in dispute.
B. It is essential that the time frames and documentation requirements established by the
procurement card issuer be followed to protect the cardholder's rights in dispute. (See
Dispute Procedures).
7.07 DISPUTE PROCEDURES:
A. A disputed item must be identified and explained on the cardholder's memo statement
before the statement is forwarded to the Finance Division for payment.
B. The cardholder contacts the Merchant about the transaction and supplies the necessary
information to begin the resolution process. In addition, the cardholder will complete the
Visa Dispute Form, explaining the reason(s) for the dispute and will turn in the
completed form along with a copy of the statement to the Department Head and/or
Program Manager.
C. If the problem between the Merchant and the cardholder is satisfactorily resolved, the
cardholder must write the details of the resolution on the bottom of the Dispute Form.
The revised form shall be forwarded to the Department Head and/or Program Manager as
soon as possible.
D. In the event that a satisfactory agreement cannot be reached with the Merchant, the
following steps will occur:
Forward the completed Visa Dispute Form and a copy of the sales draft form to
the Bank of America Representative. Bank of America will then place the
transaction into a dispute status.
2. After the item has been registered as a dispute, Bank of America must determine
who is responsible by researching the transaction. When responsibility for the
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transaction is determined, the dispute will be settled on-line and will be reflected
on the next monthly memo statement.
3. When an account is in dispute status, the disputed amount is still included in
calculating the available money for authorization (monthly limit). At the time the
item is placed in dispute, it is removed from all finance charges, late charges,
over limit fees, past due amounts, and calculations. Finance charges, which
accrue from the date of posting until the item is placed in dispute, must be
handled according to City policy. Any cardholder statements generated while the
account is in dispute will display the following message:
YOUR ACCOUNT IS IN DISPUTE FOR $XXX.XX THIS AMOUNT HAS
NOT BEEN INCLUDED IN THE FINANCE CHARGE OR PAYMENT
CALCULATIONS.
4. Upon determination by Bank of America of disputed charge(s), If the cardholder
is found responsible for the transaction, payment is required by the City and no
further action is required. If the cardholder is not responsible for the transaction,
the dispute is settled in favor of the cardholder and the charge back process may
be initiated against the Merchant.
5. If there continues to be a problem with a particular merchant, the cardholder
should notify the Purchasing Manager of the problems.
7.08 REVIEW OF PURCHASES BY DEPARTMENTS
A. Because of their knowledge of the job responsibilities and requirements, department
representatives are required to review each procurement card expenditure (item
purchased, amount, and vendor) to ensure the goods or services were necessary, and for
official use.
B. When purchases are questioned, the Department Head or designated department
representative will be responsible for resolving the issue with the cardholder. If the
Department Head cannot be satisfied that the purchase was necessary and for official use,
the cardholder must provide a credit voucher proving the item(s) were returned for credit.
C. All misuse must be recorded on the 'Procurement Card Misuse Form" by the Department
Head, Finance Division, or Purchasing Office and sent to the Procurement Card
Manager. The Procurement Card Manager will document the misuse and send the
document to the Department Head or the City Manager based on the severity of the
abuse.
D. To help the Department with the reviews, management reports will be available from the
procurement card company.
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CITY OF LONGWOOD
PURCHASING DIVISION
CITY COMMISSION
CITY MANAGER
FINANCIAL SERVICES DIRECTOR
PURCHASING MANAGER
i