Buying & Maintaining Interest Assets
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Procurement Guidance
• Grant Partner Manual
– Chapter 12
– Section taken to become Procurement
Guidebook (Stand alone)
• FTA Guidance – Circular 4220.1E
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Federal Interest
• That 80% comes with strings
• Federal requirements
– Thresholds
• $3,500 – Documented quotes, including federal clauses
• $150,000 – full procurement (RFP or IFB)
– Records Access, DBE, Bus Testing, Debarment &
Suspension, Buy America, Lobbying, Clean Air,
Clean Water, Fly America, and Davis-Bacon
– Extends beyond contract term (Some forever)
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State Interest
• Mirrors much of federal requirements
– No Buy America, etc.
– Does include debarment and suspension,
lobbying, bus testing, etc.
• Streamlines process
• Makes process almost equal
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Starting the process
• Independent Cost Estimate
– How much is this going to cost?
• What kind of procurement?
– Under $3,500; does not require competition;
should be spread out where possible though
– $3,500 to $150,000; can do documented
quotes; less formal process; need to make
sure cost is reasonable
– >$150,000; requires formal process, RFP or
IFB; ensure required clauses
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Price Agreements/Consortia
• CDOT/Consortium maintains relationship
with vendor
• Only requires purchase order, no complex
solicitation processes
• The headache is taken care of for you
• Consortia have process vetted by CDOT
in advance
– Usually are closed agreements among
specific group for specific goods
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Procurement Concurrence Request - PCR
• CDOT Oversight to ensure required
clauses are included
• Price agreement/Consortia – Already
done, concurrence is pro forma
• Piggybacking – make sure to get approval
before any agreements; all requirements
still apply
• Submit full solicitation to grant coordinator
– Reference clauses AND certifications
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Moving Forward
• With approved PCR, issue solicitation/request
quotes
• Price Agreement/Consortia/Piggyback
– Move ahead with Purchase Authorization
– Submit Purchase order
• Keep grant coordinator apprised
• Evaluate submissions; select proposed award
recipient
• If protest, follow written protest procedures
• DO NOT ORDER OR ANNOUNCE UNTIL
PROCUREMENT AUTHORIZATION APPROVED
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Procurement Authorization - PA
• For Price Agreement/Consortia/Piggyback
– Submit PA to grant coordinator
– No justification needed (inherent in process)
• DQ, RFP, IFB
– Submit selected vendor and cost with
justification
– If not low bid, justify selection criteria
– For vehicle, include vendor and
manufacturer
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TVM Certification
• FTA managed DBE process for transit
vehicles (No minivan, sedan, SUV, etc. –
Yes for ADA minivan)
• PA requires vendor (dealer) and vehicle
manufacturer along with cost
• DTR submits TVM
certification to FTA on
your behalf
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The Wait
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Upon approval of PA, order the asset
For non-vehicle, order as appropriate
For vehicle, submit Purchase Order
Make sure to get an approximate delivery
date; make modification to milestone!
• Be patient
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Delivery
• Non-Vehicle asset
– Make sure you got what you ordered/were
promised
– Over $5,000 or fixed, add to COTRAMS
inventory
• Rolling Stock
– Follow funding source requirements
• Federal certifications: Buy America (If applicable),
FMVSS (Bus Testing)
• State requirements: FMVSS (Bus Testing)
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Notice of Acceptance (NA)
• Have a trusted mechanic perform
inspection at time of delivery
• Check for all options/add-ons ordered
– Fire extinguishers
– Additional keys
– Safety triangles/flares/First Aid kits, etc.
• DO NOT ACCEPT A VEHICLE IF IT IS NOT 100%!
• Complete an NA form (One each vehicle)
– Retain NA for your files, no need to submit
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Security Agreement (SA)
• Required to establish lien on title
• Establishes actual purchase price and split
– Federal Interest
– State Interest
– Local Interest
• Critical information for future
• Submit SA to grant coordinator
• SA forms basis for new inventory record
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Placing into Service
• For equipment/facility begin using the
asset
– Make sure there is a maintenance plan in
place for large equipment or facilities
• For rolling stock
– Bring vehicle up to operational readiness
– Paint, wrap, interior installations, etc.
– Celebrate with passengers
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COTRAMS Inventory
• Basis for statewide transit asset
management plan
• Required for application to replace
• Maintains information on status
– Annual requirement to update: miles, status,
condition, etc.
• Used in final step: Disposition
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Asset Disposition
• Federal regulation, CDOT has adopted for
state funded vehicles only
• Requirements:
– Sale must be through best option for best
price
• Usually auction, Ebay motors, etc.
– Donation requires determination of fair market
value
– Parting out requires certification
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Process
• Submit Asset Disposition form for approval
• Sell asset
• If over $5,000:
– Determine original state and/or federal interest
• Usually 80%, 96% if FASTER used as match, less if
you used overmatch – include ALL state/federal funds
including DOLA, DHHS, etc.
• Take interest percentage of proceeds and
submit check to CDOT with documentation
• Documentation: Bill of sale, copy of check
received, Asset Disposition form
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Next Steps
• Keep copy of Asset Disposition form on file
with all other documents required by FTA
for 3 years after disposition
• Funds will be deposited to appropriate
CDOT account
• When funds reach appropriate level, they
will be transferred to available funds for
next capital call
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Donating Assets
• Federal & State interest do not vacate with
donation
– Donation must be for appropriate use
• Senior center, disability group, nursing home, etc.
• Should not be a for-profit
– Requires determination of fair market value
• Disposition interest must be maintained
– New owner must agree to report when they
dispose of the asset, just like grant partner
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Parting Out
• Complete Asset Disposition form
• Sign and submit Asset Parting Certification
• Keep copy of certification with asset files
for 3 years past the date of Parting