Headwaters RC&D Non-Profit Procurement Policy

(in compliance with 24 CFR 84.40 - 84.48)

 

The policy set forth in this document establishes standards and guidelines for the procurement

of supplies, equipment, construction, and services to ensure that they are obtained as

economically as possible through an open and competitive process, and that contracts are

managed with good administrative practices and sound business judgment.

 

Code of Conduct

A Code of Conduct shall govern the performance, behavior and actions of the Organization,

including Board members, employees, directors, volunteers, or agents who are engaged in any

aspect of procurement, including – but not limited to – purchasing goods and services;

awarding contracts and grants; or the administration and supervision of contracts.

 

1. Employees, officers, directors, volunteers or agents of the Organization shall participate in the selection, award or administration of a bid or contract supported by Federal funds if a

conflict of interest is real or apparent to a reasonable person. if they declare the conflict beforehand and abstain from the vote.

 

2. Conflicts of interest may arise when any employee, officer, director, volunteer or agent of

the Organization has a financial, family or any other beneficial interest in the vendor firm

selected or considered for an award.

 

3. No employee, officer, director, volunteer or agent of the Organization shall do business

with, award contracts to, or show favoritism toward a member of his/her immediate family,

spouse’s family or to any company, vendor or concern who either employs or has any

relationship to a family member; or award a contract or bid which violates the spirit or

intent of Federal, State and local procurement laws and policies established to maximize

free and open competition among qualified vendors.

4. The Organization’s employees, officers, directors, volunteers or agents shall neither solicit

nor accept gratuities, gifts, consulting fees, trips, favors or anything having a monetary

value in excess of __50___ dollars ($50__) from a vendor, potential vendor, or from the family

or employees of a vendor, potential vendor or bidder; or from any party to a sub-agreement

or ancillary contract.

 

5. As permitted by law, rule, policy or regulation, the Organization shall pursue appropriate

legal, administrative or disciplinary action against an employee, officer, director, volunteer,

vendor or vendor’s agent who is alleged to have committed, has been convicted of or pled

no contest to a procurement related infraction. If said person has been convicted,

disciplined or pled no contest to a procurement violation, said person shall be removed

from any further responsibility or involvement with grants management, procurement

actions or bids, consistent with State or Federal policy.

 

 

 

 

Solicitation and Competition

All procurement transactions will be conducted to provide – to the maximum extent possible – free and open competition among suppliers. The Organization must begin with an analysis of the need for the procurement, to avoid the purchase of unnecessary items (this may include an examination of lease versus purchase alternatives). The purchaser must then identify and clearly specify standards for the goods or services desired, and seek competitive offers where possible to obtain the best possible quality at the best possible price.

 

In general:

 

• Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action.  All procurement or just purchases in excess of the amount of $500. Price analysis may be accomplished in various ways, including the comparison of price quotations submitted and market prices, together with discounts.

• Bids must be sought for goods and services exceeding $_5000_.

• For procurements that exceed the Federal “small purchase” threshold (the

federal threshold is $100,000, but the locality or State may set a lower threshold), competitive bids will be utilized and requests for these bids will be written in a way that does not restrict competition. (A clear and accurate description of the technical requirements for the material, product or service to be procured; all requirements which offerors must fulfill; and all other factors to be used in evaluating bids or proposals.) Procurement files must include the following:

• Basis for contractor selection.

• Justification for lack of competition when competitive bids or offers were not obtained.

  • Basis of award cost or price.

• Whenever possible, the Organization must engage in affirmative efforts to utilize small businesses, minority owned firms, and women's business enterprises.

 

Selection

Price should be one of the factors in the evaluation of responses, but the Organization is not

required to take the lowest price if other factors are important to the decision.

• There should be an objective method for selection, and any factors for evaluation and selection should be listed in the procurement documents.

• Awards shall be made to the bidder or offeror whose bid is responsive to the solicitation and clearly meets the needs of the organization (price, quality and other factors considered).

• A bid may be rejected when it is in the Organization’s interest to do so.

 

Documentation

At a minimum, procurement records must clearly show how the Organization:

• Executed price sampling for small purchases;

• Selected the method of procurement and the type of contract to be used;

• Determined which bids or proposals to accept and which to reject; and

• Determined the basis for the contract cost or price.

 

 

Contract Administration

The Organization has an overall system of contract administration to ensure proper oversight

and management of procurement actions. The Organization is responsible for evaluating

contractor performance and documenting, as appropriate, whether contractors have met the

terms, conditions and specifications of the contract. This may include progress inspections,

interim products, inspection of goods delivered, and other such methods that provide assurance

that the goods or services purchased are being delivered within the scope of the contract.

The Organization’s contract administration system must ensure that:

• The method of procurement is documented and records maintained for five years after final payment is made;

• All activities are carried out and costs are incurred in compliance with applicable requirements; and

• Before payment is made, services performed are adequate and consistent with the contract scope of services.

• Contract execution is performed by the Executive Director and the Board of Directors President.  Two signatures required to execute the contract.

• Sole source contracts are allowed based on the following criteria being met:

The Federal Acquisition Regulation (FAR 6.302, Circumstances permitting other than full and open competition) describes the seven exceptions that can be invoked as sole source justification:

1. Competition Requirements (FAR Part 6)

   1. Other Than Full and Open Competition (FAR Subpart 6.3)

      1. Circumstances permitting other than full and open competition (FAR 6.302):

         1. Only one responsible source and no other supplies or services will satisfy agency requirements.

         2. Unusual and compelling urgency.

         3. Industrial mobilization; engineering, developmental, or research capability; or expert services.

         4. International agreement.

         5. Authorized or required by statute.

         6. National security.

         7. Public interest.

The most frequently invoked justification for adopting a sole source procurement process is the first exception (FAR 6.302-1), i.e. when there is only one responsible source and no other supplies or services satisfy requirements usually defined in the statement of work (SOW).

 

Under this exception, sole source purchase must meet one of the following criteria:

• unicity, i.e. the item is only available from one single supplier (one-of-a-kind, parts maintenance, compatibility, standard compliance); or

• immediacy, i.e. delivery date or delays resulting from competitive solicitation are not acceptable; or

• emergency, i.e. delays resulting from other methods of solicitation are not bearable; or

• legitimacy, i.e. specific contexts (geographic, contractual, political, legal, military, security, etc.) may allow such a non-competition of sources; or

• inadequacy, all sources are qualified as inadequate (compatibility, compliance, price, quality, service, support, etc.); or

• exigency, i.e. any other specific reason dictating the choice of a given provider.