WORKFORCE INVESTMENT NETWORK
LOCAL WORKFORCE INVESTMENT AREA (LWIA) 13
DATE:
July 15, 2013
POLICY NUMBER
2013:06
SUBJECT:
WIN PROCUREMENT POLICY (up to $5,000)
PURPOSE:
To provide procedures for the procurement of goods and services,
pursuant to the Workforce Investment Act, that cost up to five
thousand dollars ($5,000).
REPLACES:
N/A
REVISION NUMBER:
N/A
I. PURPOSE AND APPLICABILITY
This Policy provides standards for the procurement of items, costing up to $5,000,
needed to carry out activities pursuant to the Workforce Investment Act for Local
Workforce Investment Area 13. Procurements costing more than $5,000 will be
procured by the Contracts Manager pursuant to the then City of Memphis Purchasing
Policies and Procedures Manual. In addition, this Policy is inapplicable when
ordering office supplies, because the memorandum regarding office supplies specifies
the process for such matter.
II. REFERENCE/ BACKGROUND
All procurement transactions shall be conducted in a manner providing “full and open
competition” consistent with the standards specified in Title 29 CFR Section 97.36.
All purchases must be reasonably necessary for WIN operations.
III. CODE OF CONDUCT
No member, employee, officer, or agent of the Workforce Investment Network or
Board shall participate in the award or administration of a contract if a conflict of
interest, real or apparent, would be involved. Such a conflict would arise when the
member, employee, officer or agent, any member of his or her immediate family, his
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Procurement Policy (up to $5,000)
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or her partner, or an organization which employs, or is about to employ, any of these,
has a financial or other interest in the firm selected for award.
A member, employee, officer, or agent of the Workforce Investment Network or
Board shall not cast a vote on, nor participate in any decision-making capacity on the
provision of services by such member (or any organization that member represents),
nor on any matter which would provide any direct financial benefit to that member.
A member, employee, officer, or agent of the Workforce Investment Network or
Board will neither solicit nor accept gratuities, favors, or anything of monetary value
from contractors, potential contractors, or parties to subcontracts. Unsolicited gifts of
nominal intrinsic value are not considered in violation of this prohibition.
IV. PROCUREMENT METHODS
Small purchase means the acquisition of goods or services that cost up to $5,000 in
the aggregate (Title 29 CFR Section 97.36(d)) within a twelve month period. Such
purchases cannot be broken down to change the dollar range and avoid competition.
The Department Manager shall review and approve proposed procurements to avoid
the purchase of unnecessary or duplicative items. In addition, the Department
Manager shall consult the Fiscal Officer to ensure that sufficient funding is available
for the proposed procurement. The Department Manager shall ensure that a
procurement for the same or similar items or services was not awarded to the same
vendor, without undergoing the competitive process, during the prior 12-month
period.
The acceptable methods for procuring small purchases are specified below in sections
A - C. Both the Procurement Request Form for Less Than $5,000 and the Informal
Bid Sheet for Less Than $5,000 shall be used to procure and document small
purchases. If the lowest bid received for a procurement exceeds $5,000, the purchase
must be procured by the Contracts Manager pursuant to the City of Memphis
Purchasing Policies and Procedures.
When possible, all necessary affirmative steps shall be taken to assure that certified
minority firms, women-owned business and small businesses are used.
A. Price Comparisons/Informal Quotes
This is a relatively informal method used when price is the overriding factor and may
be easily quoted and compared, and performance outcomes are not dependent upon
the contents of goods or services being procured.
1. Procurement Process
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Procurement Policy (up to $5,000)
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a. At minimum, three price comparisons should be obtained from qualified
sources. Documentation may be current catalogs with price lists or informal
quotes.
b. When soliciting informal quotes, the solicitation must:
i.
be provided to vendors that can reasonably be expected to provide the
goods or services needed via electronic mail or facsimile.
ii.
include detailed specifications and any pertinent attachments that
specifically define the items or services to be procured (indicating
quantity, time frames and all other requirements of the product or
service sought in sufficient detail for vendors to bid); and
iii. be transmitted to qualified vendors as uniformly as possible.
c. The vendor’s response must be signed and dated by the vendor’s authorized
representative.
d. Any or all bids may be rejected if there is a sound documented reason.
2. Procurement Award
a. The procurement shall be awarded to the responsible bidder whose bid is the
lowest in price and confirms with all the material terms and conditions of the
request.
b. If the lowest bidder is not selected, a written explanation must be provided
explaining the rationale for the selection.
c. Vendor must agree to provide the goods or services on a credit basis and
invoice WIN for payment.
B.
Competitive Proposals/Request for Proposal (RFP)
If the nature of the purchase is more complex and factors other than price are most
important in the selection process, the RFP method is typically used, e.g., when WIN
seeks a variety of methods that may be employed to achieve the results sought. The
RFP method should be utilized even if the purchase price is less than five thousand
dollars ($5,000). The Contracts Manager will assist with competitive proposal
procurements pursuant to the then City of Memphis Purchasing Policies and
Procedures manual. Since the RFP process is very time consuming, staff must
anticipate their needs to allow sufficient time for the RFP process, which includes
advertising, response submission, evaluation, etc.
C.
Noncompetitive Procurements (e.g., sole source)
WIN and its subrecipients may use this form of procurement as part of its competitive
bidding process, when the procurement is infeasible under one of the methods
discussed above and one of the following conditions apply:
a. The item or service is available from only one source;
b. Public emergency precludes delay;
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Procurement Policy (up to $5,000)
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c. The State of Tennessee Department of Labor and Workforce
authorizes the specific noncompetitive procurement (after formal
request);
d. Attempts at securing more than one responsive quote from a number
of sources have failed.
Noncompetitive procurements are a “last resort” and shall be documented on the
Informal Bid Sheet for Less Than $5,000.
D.
Cost/Price Analysis
WIN and its subrecipients will perform a cost or price analysis in connection with
every procurement action, including contract modifications. Price analysis may be
accomplished in various ways, including the comparison of price quotations
submitted, market prices and similar indicia, together with any applicable discounts.
Cost analysis is the review and evaluation of each element of cost to determine
reasonableness, allocability and allowability.
V. FISCAL RESPONSIBILITIES
Upon processing payment requests for small purchases, the Fiscal Department shall
ensure that payment is consistent with the order and maintain the records and
information regarding such small purchases. At minimum, the Fiscal Department
shall maintain the vendor’s name and contact information, description of goods or
services purchased; amount of purchase; and date of purchase.
VI.
SPECIAL PROCUREMENTS
Notwithstanding Section IV above, the procurement of the following items shall be
procured via cooperation with the applicable City of Memphis department:
1.
2.
3.
4.
5.
VII.
Fleet purchases;
Print services;
IT-related goods or services;
Real Estate leases;
Other purchases required by the City of Memphis Purchasing Policies and
Procedures
INQUIRIES: Please contact WIN’s Contracts Manager with any questions or
concerns regarding this Policy.
VIII. EFFECTIVE DATE: This Policy shall be effective on the date specified above and
remain in effect until further notice.
Attachment: Procurement Forms (which may be modified from time to time)
LOCAL WORKFORCE INVESTMENT AREA 13
POLICY RECEIPT ACKNOWLEDGEMENT FORM
SUBJECT:
WIN PROCUREMENT POLICY (up to $5,000)
POLICY NUMBER: 2013:06
IN EFFECT:
July 15, 2013 until further notice
It is the policy of the Workforce Investment Network that all employees receive a copy of the
various Local Workforce Investment Act 13 (“LWIA 13”) policies and procedures and
acknowledge receipt of each policy.
I hereby acknowledge that I have been informed about the content, requirements, and
expectations of the LWIA 13 above referenced subject policy (“Policy”). I further acknowledge
that I have received a copy of the Policy and agree to abide by the Policy guidelines in fulfilling
my applicable job duties. I understand that a copy of the Policy can be accessed in the LWIA 13
Policies and Procedures Manual maintained at the Memphis Area Career Center and
electronically at www.workforceinvestmentnetwork.com.
Note: Please read the Policy carefully to ensure that you understand the contents of the Policy
before signing this Policy Receipt Acknowledgement Form.
Employee Signature: _______________________________________
Employee Printed Name: ____________________________________
Date: _________________________
WIN PROCUREMENT REQUEST
(for purchases up to $5,000)
Routing
1.
Initiating Department
2.
Fiscal to verify funds
3.
Deputy Director for Approval
4.
Initiating Department procures product / service (use Informal Bid Sheet to document process)
5.
Receipt of Invoice to Initiating Department
6.
All Procurement Documents to Fiscal for Payment (including Invoice & Informal Bid Sheet)
Goods or services to be purchased:
_____________________________________________________________________________________
_____________________________________________________________________________________
Qty: __________________
Estimated Amount: _______________________
(Must be less than $5,000)
How soon do you need the goods or services? _______________________________________________
Explain why the goods or services are needed (include the benefit to WIN):
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
Submitted by: _________________________________________________________________________
Print Name and Title / Signature
Date
Approved by: __________________________________________________________________________
Manager Signature
Date
Fiscal Dept. Use Only:
Funds are available – [ ] YES
[ ] NO
_____________________________________________
Chief Fiscal Officer
Approved for Purchase _______________________________________________________________
Deputy Director Signature
Date
INFORMAL BID SHEET
(for purchase up to $5,000)
Instructions:
Call potential respondents to inform them that you are emailing them the bid specifications then email the bid specifications.
Attempt to contact a minimum of (3) three sources. Attach copy of your email correspondence disseminating the bid
specifications and the bid responses to this Informal Bid Sheet.
NAME OF POTENTIAL RESPONDENT
CONTACT PERSON
CONTACT #
CONTACT E-MAIL
BID AMOUNT
1. ___________________________________________________________________________________________________________________
2. ___________________________________________________________________________________________________________________
3. ___________________________________________________________________________________________________________________
If (3) three sources are not contacted please explain.
If lowest bid is not selected please provide rationale for the selection.
Submitted by: ____________________________________________________________________________________
Print Name and Title
/
Signature
Date
Approved by: ____________________________________________________________________________________
Manager/Deputy Director Signature
Date