Demolition/Abatement Constracts (Folders 1-2)

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Chapler 4: Me[hods of Selection http:i;wu~v.fta.dot.eo~,'fta~9ibran•/admin/BPPman!scct 40.htm procedures to allow oral descriptions, (particularly if the procurement is decentralized or the buyer has expertise in the item), up to one estimated dollar level and then require written descriptions above that ievel. Remember, that for construction using federal dollars, the Davis-Bacon Act requirements apply to all procurements (including small purchases) over $2,000.18 The level of documentation may also be tied to whether or not an off-the-shelf item is being bought or whether the item or service being bought is as per an agency specification. Oral solicitations and quotations may be allowed at a higher dollar level for off-the-shelf products than for products built to agency specifications. Is there a requirement that you include a certain number of DBE firms in the firms you contact? This is a fairly common requirement transit properties use for DBE participation. Compliance with your policies can be systematically documented. How do vendors indicate their price(s) to you in response to your request? Do you accept oral prices? Do you require written quotations? If so, do you allow faxes? You could do any of these. You must, however, determine what complies with the laws governing your property and then develop and follow appropriate procedures. The format and level of detail in these procedures should be commensurate with the size of your agency and they can be well enough promulgated so that they are well known to members of your procurement staff and your internal customers. Award - What happens if the quotations are all higher than your smal! purchase threshold? Can you still issue a purchase order or do you have to change methods and perform a competitive procurement? In many states, you will not be able to award an order that is in excess of your state's small purchase threshold. This is why it is a good idea to try to develop an estimate prior to initiating the quotation process. If it is "close", it will probably be better to commence a fortnal competitive procurement to begin with. How do I award a small purchase? The most common contractual instrument used to accomplish a small purchase is a purchase order. Typically, after you determine who will provide the best price for the widget, you will prepare a purchase order with the price and other terms and conditions required by your agency and send it to the vendor. In most instances, this document transmission does not ereate a binding contract -- it is your offer to the vendor to do the work or provide the widget at the price quoted. A contract comes into existence when the vendor demonstrates some ievel of acceptance of the offer -- usually when accepted in writing, performance commences, or delivery is made.l9 Documentation - How much documeatation of the procurement process da I need to keep? One standard you may find usefut is to how much would sxtisfy a third party (an auditor), that you have complied with your agency's policies and procedures and that the price you are paying is "reasonable." This will typically include the requisition (or purchase request), wl~~t specifieation was used (if any}, who were quotations requested from, when and what quotatians were received and from whom (a simple abstract of quotes received), and a copy of the purchase order. Much of the documentation for small purchases can be accomplished on pre-printed forrns ar eampleted on~line if your computer system will allow for that type of input. Remember, it is supposed to be simple but never forget that we must make an audit trail that can be followed -- the clearer and more complete the trail is, the better. Procurement documentation is discussed in Section 2 4 1"File Documentation " 4.3 COMPETITIVE PROCUREMENT METHODS 4.3.1 Overview -- Sealed bids v Cqmqetitive Prooosa ~ REQUIREMENT s ofas 0l/10/97 13:0923