POLICY AND PROCEDURES

Richland-Lexington Riverbanks Park District

Procurement Manual

Mission Statement

The mission of the Riverbanks Zoo and Garden Procurement Services Department is to foster a transparent and competitive environment for procurement opportunities and to strive to provide opportunities for the participation of all businesses offering goods and services. Procurement Services has the responsibility of ensuring that all goods and services are of the highest quality possible and that they are acquired at fair and competitive prices. The Procurement Services Department is committed to taking an instructive, supportive and interactive role in the daily expenditures of Riverbanks Zoo and Garden.

Revised September 8, 2015

INDEX

Article 1 Purpose and General Matters

Sec. 101Purpose

Sec. 102Application

Sec. 103 Ethics

Sec. 104Exclusive Remedy

Sec. 105Repealer

Sec. 106Non-Competitive Negotiations

Sec. 107Flexibility Options

Sec. 108Obligation of Good Faith

Sec. 109Finality of Determinations

Sec. 110Kickback Provision

Sec. 111Non-Discrimination

Sec. 112Disadvantaged Business Enterprises

Article 2 Definitions

Article 3 Public Procurement Administration

Sec. 101Delegation of Authority by the Commission

Sec. 102Delegation of Authority by the President/CEO

Sec. 103Procurement Manager

Sec. 105Purchase Orders

Sec. 106Purchasing Cards

Article 4 Methods of Source Selection

Sec. 101Methods of Source Selection Listed

Sec. 102Competitive Sealed Bidding

Sec. 103Competitive Fixed Price Bidding

Sec. 104Competitive Best Value Bidding

Sec. 105Competitive Sealed Proposals

Sec. 106Design/Build Proposals

Sec. 107Small Purchases

Sec. 108Sole Source Procurement

Sec. 109Emergency Procurement

Sec. 110 Competitive On-Line Bidding (Reverse Auction)

Sec. 111Rejection of Responses

Sec. 112Public Access to Procurement Information and Confidentiality

Sec. 113Qualified Products List (QPL)

Article 5 Qualifications and Duties

Sec. 101Prequalification of Vendors

Sec. 102Responsibility of Vendors

Sec. 103Cost or Price Data

Article 6 Types of Contracts

Sec. 101Types of Contracts

Sec. 102Multi-Term Contracts

Sec. 103Blanket Purchase Contracts

Article 7 Audit of Records

Sec. 101Right to Audit Records

Article 8 Reports and Records

Sec. 101Reporting of Anti-Competitive Practices

Sec. 102Procurement Records

Article 9 Specifications

Article 10 Construction Contracting

Sec. 101Selection of Method of Construction Contract

Administration

Sec. 102Construction Contract Procurement

Sec. 103Pre-Qualification of Construction Bidders

Definitions

Sec. 201Security and Bonds

Sec. 202Contract Performance and Payment Bonds

Sec. 301Construction Contract Forms

Sec. 302Modifications

Sec. 401Architect-Engineer and Land Surveying Services

Sec. 501Indefinite Delivery Contracts for Construction Items,

Architectural-Engineering and Land Surveying Services

Article 11 Consultant Services

Article 12 Supply Management

Sec. 101Sale of Surplus Property

Sec. 201Proceeds and General Fund

Sec. 401Real Property

Article 13 Legal and Contractual Remedies

Sec. 101Exclusive Remedies, Waiver, and Exhaustion

Sec. 201Authority to Resolve Protested Solicitations and Awards

Sec. 202Authority to Debar or Suspend

Sec. 203Authority to Resolve Contract and Breach of Contract

Controversies

Sec. 301Appeals

Sec. 302Procedures

Sec. 401Creation and Jurisdiction of Procurement Review Panel

Sec. 402Membership

Sec. 403Chair and Meetings

Sec. 404Jurisdiction

Sec. 405Procedure

Sec. 406Finality

Sec. 501Frivolous Protests

Sec. 601Remedies

Sec. 602Remedies Prior to Award

Sec. 603Remedies After an Award

Sec. 604Remedies Arising From an Action Pursuant to 13-203

Article 14 Intergovernmental Relations

Sec. 101Cooperative Purchasing Authorized

Sec. 102Sales, Acquisition, or Use of Supplies

Sec. 103Cooperative Use of Supplies and Services

Sec. 104Joint Use of Facilities

Sec. 105Joint Auctions and Sales of Surplus Property

ARTICLE 1

PURPOSE AND GENERAL MATTERS

§1-101 PURPOSE:

The purpose of this Procurement Manual is to:

(1) ensure the fair and equitable treatment of all persons who conduct business with the District’s Procurement Services subject to the interest of the District and its taxpayers in obtaining the best quality goods and services for reasonable prices;

(2) foster public confidence in the procurement procedures followed by the District;

(3) comply with applicable state and federal laws;

(4) secure the advantages and economies derived from a centralized and standardized expenditure control system;

(5) promote the use of modern, professional, and ethical business methods when using public funds to secure supplies, materials, equipment and services, or to dispose of surplus goods and equipment;

(6) consolidate existing procurement policies and practices; and

(7) develop a comprehensive set of procedures applicable to the many different needs of the District.

§1-102 APPLICATION:

Unless otherwise exempt herein, this policy applies to all contracts for the private sector procurement of supplies, services, information technology, and construction entered into by the District or any of its departments or other divisions (collectively referred to as the District) after the effective date of this policy. The District maintains, at its sole discretion, the prerogative to provide all such items internally or, alternatively, by and through arrangements with other public entities as herein elsewhere provided. It shall apply to every expenditure of public funds irrespective of the source of those funds. Nothing in this policy shall prevent any District department or division from complying with the terms and conditions of any grant, gift or bequest, which are otherwise consistent with law.

§1-103 ETHICS

1-103.1 General Statement of Ethics

The mere appearance of a conflict of interest can be as serious and damaging as

an actual conflict of interest. Reports of conflicts based on appearances can

undermine public trust in ways that may not be adequately restored even when the

mitigating facts of a situation are brought to light. Apparent conflicts, therefore,

should be evaluated and managed with the same vigor as known conflicts. All

employees who affect the award of business must do so objectively and without

influence, gratuities, and gifts from vendors seeking to do business with the District

could be seen as influencing objectivity and should be refused.

1-103.2 Code of Ethics

By participating in the procurement process, employees of Riverbanks Zoo and Garden

agree to:

1) Avoid the intent and appearance of unethical or compromising practice in relationships, actions, and communications.

2) Demonstrate loyalty to the District by diligently following the lawful instructions of the employer, using reasonable care and purchasing within the authority granted.

3) Refrain from any private business or professional activity that would create a conflict between personal interests and the interests of the District.

4) Refrain from soliciting or accepting money, loans, credits, or prejudicial discounts, and the acceptance of gifts, entertainment, favors, or services from present or potential suppliers that might influence, or appear to influence purchasing decisions.

5) Never discriminate unfairly by the dispensing of special favors or privileges to anyone, whether as payment for services or not; and never accept for himself or herself or for family members, favors or benefits under circumstances which might be construed by reasonable persons as influencing the performance of Governmental duties.

6) Handle confidential or proprietary information belonging to employer or suppliers with due care and proper consideration of ethical and legal ramifications, and governmental regulations.

7) Never use any information gained confidentially in the performance of Governmental duties as a means of making private profit.

8) Promote positive supplier relationships through courtesy and impartiality in all phases of the purchasing cycle.

9) Know and obey the letter and spirit of laws governing the purchasing function and remain alert to the legal ramifications of purchasing decisions.

10) Uphold these principles, ever conscious that public office is a public trust.

§1-104 EXCLUSIVE REMEDY:

No lack of conformity to the policies and procedures set forth in this policy by the District shall create a right of action in any person beyond those remedies expressly set forth in this policy, which remedies to a disappointed bidder, offeror, contractor or subcontractor shall be to the exclusion of all other rights or remedies against the District, at common law or otherwise, for loss or potential loss of a contract or any resultant claims or damages.

If this code applies to procurement, the provisions of this code supersede all laws or parts of laws in conflict with it to the extent of the conflict including, but not limited to, the principles of law and equity, the common law, and the Uniform Commercial Code of this State.

§1-105 REPEALER:

This policy repeals all previously issued policies, rules and regulations pertaining to procurement for the District.

§1-106 NON-COMPETITIVE NEGOTIATIONS:

Procurement Services may conduct noncompetitive (i.e. less than full and open competition) negotiations when one or all of the following circumstances exist as determined by the Procurement Manager. In such circumstances, the Procurement Manager shall make efforts to maximize opportunities for as much competition as is practicable under the circumstances of the particular acquisition and shall prepare a written justification and explanation for any restrictions to full and open competition. The following circumstances may justify less than full and open competition:

1) Only (sole) source of supply available;

2) Emergency purchase when “time is of the essence”, impractical to compete;

3) Changes within the scope of an existing contract;

4) Purchases from State-wide Contracts or other cooperative purchasing;

except where otherwise prohibited by law;

5) Perishable commodities including fresh fruits, vegetables, meats, fish, milk, eggs and other commissary dietary needs;

6) Animals, feed and veterinarian supplies;

7) Shipping of items, plants or animals by common carrier or by private conveyance

8) Artifacts, artistic sculptures, murals and theme painting along with museum pieces;

9) Items purchased for resale;

10) Copyrighted material such as publications, music and films;

11) Professional Services such as Attorneys at law (and experts they hire), accountants/auditors, veterinarians, physicians and dentists;

12) Used specialty vehicles/equipment without competitive comparison;

13) Specialty blended items that have no comparable equals;

14) Nursery stock items including but not limited to trees, flowers, aquatic, bulbs, seeds, annuals and perennials;

15) Dues and fees for professional memberships of organizations;

16) Performances, including but not limited to entertainment, cultural and artistic;

17) Advertisements such as in newspapers, magazines, journals, radio or television;

18) Public utilities, such as electric, gas, water and sewer;

19) Expenses and repairs needed to maintain an accreditation.

The Procurement Manager is authorized, upon recommendation from the President/CEO and/or Commission, to promulgate, with written justification, further non-competitive negotiations from time to time as may be in the best interest of the District.

§ 1-107 FLEXIBILITY PROVISIONS:

It is the intention of this policy that the purchasing procedures of the District be as flexible as possible, so long as sound principles of competitive procurement are adhered to in light of the circumstances of any given procurement. To this end, the following is provided:

(1) procedures applicable to construction may also be adapted to purchasing, and vice versa, where they are reasonably adaptable and applicable to the needs of the District;

(2) if any provision of this policy is unclear as to the procedures to be followed, or the standards to be observed, the District may, but is not required to, apply the procedures and guidelines provided in the Consolidated Procurement Code and Regulations and related manuals and bulletins;

(3) the District may interview providers in order to define its needs for a proposed procurement, and may prequalify vendors for that procurement, without public advertisement, provided that: (a) an adequate number of vendors are included in the process, so as to ensure reasonable competition for the proposed contract, and (b) scheduling issues or other exigencies reasonably justify an expedited process.

§1-108 OBLIGATION OF GOOD FAITH:

All offerors, bidders, contractors or subcontractors engaged in public contract activities with the District arising under this policy or otherwise are required to perform all obligations, duties and acts in good faith. This includes submittals, negotiations, performance and dispute resolution matters. "Good faith" means honesty in fact and adherence to reasonable commercial standards of fair dealing in the conduct of all relationships with the District. Failure to comply with this requirement will entitle the District to an appropriate remedy. By way of example only, if an award is made from a submittal in violation of this provision, the District may rescind and terminate the contract and the offending party shall be responsible for making the District whole.

§1-109 FINALITY OF DETERMINATIONS:

The determinations required herein, such as those required by Sections 4-102(7) (Competitive Sealed Bidding: Correction or Withdrawal of Bids, Cancellation of Awards); 4-102(11) (Competitive Sealed Bidding: Minor Informalities of Irregularities in Bids); 4-103(1) (Competitive Fixed Price Bidding: Conditions for Use); 4-104(1) (Competitive Best Value Bidding: Conditions of Use); 4-104(8) (Competitive Best Value Bidding: Award); 4-105(1) (Competitive Sealed Proposals: Conditions for Use); 4-105(8) (Competitive Sealed proposals: Award if Price is an Initial Evaluation Factor); 4-106(1) (Design Build Proposals: Conditions for Use); 4-108(1) (Sole Source Procurement: Conditions for Use); 4-108(2) (Sole Source Procurement: Award); 4-109 (Emergency Procurement); 4-110 Competitive On-Line Bidding (Reverse Auction) 4-111 (Rejection of Responses: Rejection of All Responses); 5-101 (Responsibility of Vendors); 5-102(1)(c) (Cost or Price Data: Required Submission Relative to the Award of Contracts); 5-102(2)(b) (Cost of Price Data: Required Submissions Relating to Change Orders or Contract Modifications); 6-101 (Types of Contracts); 6-102(2) Multi-Year Contracts: Determination Prior to Use); 10-101 (Selection of Method of Construction Contract); 10-202(2) (Contract Performance and Payment Bonds: Reduction of Bond Amounts); 12-101(1) (Sale); 12-302 (Selection Methods and Procedures); or any like decisions authorized hereunder shall be final and conclusive unless clearly erroneous, arbitrary, capricious, or contrary to law.

§1-110 KICKBACK PROVISION:

Other than compensation provided by the District for work performed, members of the Commission and District employees shall be prohibited from receiving payment, provision of contingency fees or any other consideration for obtaining Goods, Contractual Services, Professional Services, Consultant Services, and Construction Services; for purchasing or selling real property; for selecting concessionaires, or for disposing of Surplus Goods for the District or financed with District funds.

All persons or entities dealing with the District are also prohibited from offering or providing any payment or other consideration to any member of the Commission and/or District employee for the purpose of influencing or obtaining a business relationship with the District. In the event any such conduct comes to the attention of the District, the District will make known that information to appropriate officials.

§1-111 NON-DISCRIMINATION:

No person shall be discriminated against, denied the benefits of, or excluded from participating in the District's procurement process on the grounds of race, color, national origin, religious beliefs or sex.

§1-112 DISADVANTAGED BUSINESS ENTERPRISES (DBE):

t is the policy of the District to encourage and assist disadvantaged business entities in their growth by attempting to foster opportunities for them to enter into contracts with the District and subcontract with those with whom the District contracts.

The District believes that it is in the District’s best interest to assist DBEs to develop as a part of the District’s policies and programs which are designed to promote balanced economic and community growth. The District wishes to ensure that DBEs are afforded the opportunity to fully participate in the overall procurement process of the District.

To assist in the implementation of this policy, the Procurement Manager shall:

(a) assist DBEs, if requested, with the procurement procedures developed in this manual;

(b) issue supplementary instructions, if requested, to assist DBEs with the procurement process;

(c) maintain for a reasonable time information submitted by DBEs detailing the products and services they provide;

(d) attempt to ensure that equally qualified firms are solicited on an equal basis with non-DBEs; and

(e) work with DBE groups, if requested, in conducting seminars to assist DBE owners in learning how to do business with the District.

ARTICLE 2

GOODS AND SERVICES DEFINITIONS

§2-101 DEFINITIONS

(1) “Business” means any corporation, partnership, joint stock company, joint venture, or any other private legal entity.

(2) “Change Directive” ” or “Unilateral Change” means a written document authorized by the Procurement Manager or President/CEO which directs the contractor to make changes without consent of the contractor as to all terms and conditions of the change. “Change Order” or “Bilateral Change” or “Contract Amendment” means a written document by mutual agreement between the Procurement Manager or President/CEO and contractor which modifies the terms and conditions of the contract.

(3) "Commission" means the Richland Lexington Riverbanks Park Commission, its successors and assigns, which is the governing body of the District, or any duly appointed committee thereof.

(4) “Construction” means the process of building, altering, repairing, improving or demolishing any public infrastructure facility, including public structure, public building, or other public improvements of any kind to real property. Construction does not include the routine maintenance of an existing infrastructure facility, including structures, building or real property.

(5) "Construction Services" means the service of a licensed contractor engaged in the business of building, altering, repairing, remodeling, improving or demolishing structures, buildings or improvements of any kind to real property; provided, however, that it shall not include the routine operation, repair or maintenance of structures, buildings or other improvements to real property.

(6) “Consultant Services” means the furnishing of labor, time, or effort by a contractor not required to deliver a specific product, other than reports which are merely incidental to required performance. The term includes consultant assistance for any aspect of information technology, systems, and networks. The term shall not include “Construction Services” or “Professional Services” as herein defined.

(7) "Contract" or "Contract Documents" mean all types of District agreements, regardless of what they are called, for the procurement of materials, services, or construction or the disposal of materials. Such documents as may contain or clarify any of the obligations of the District or a contractor or vendor in connection with acquiring goods or services or disposing of surplus property including, but not limited to, the advertisement/announcement, solicitation document, submissions, amendments, change orders, intent to award, notice to proceed, or the like. In the absence of an order of precedence, the requirements of the District as set forth in the invitation for bids or requests for proposals or other source selection document shall prevail.

(8) “Contractor" means any person having a contract with the District.

(9) “Days” means calendar days. In computing any period of time prescribed by this manual, the day of the event from which the designated period of time begins to run is not included. If the final day of the designated period falls on Saturday, Sunday, or a legal holiday for the state or federal government, then the period shall run to the end of the next business day.

(10) "Debar" means to disqualify a person to receive invitations for bids, or requests for proposals, or the award of a contract by the District, for a specified period of time commensurate with the seriousness of the offense or the failure or inadequacy of performance.

(11) “Designee” means a duly authorized representative of a person holding a primary responsibility or power.

(12) “Disadvantaged Business Enterprises” (DBE) means any business entity which is at least 51 percent owned, operated, managed and controlled by one or more citizens of the United States who are determined to be socially and economically disadvantaged. Socially disadvantaged individuals are those individuals who have been subject to racial or ethnic prejudice or cultural bias because of their identification as members of a certain group, without regard to their individual qualities. Economically disadvantaged individuals are those individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same business area who are not economically disadvantaged. The rules and regulations of the United States Small Business Administration with respect to determinations of social and economic disadvantage, ownership, management and control, and commercially useful functions may provide guidance to the District in making any determinations as to eligibility this status.

(13) "District" means the Richland-Lexington Riverbanks Park District, its successors and assigns, a political subdivision of the State of South Carolina whose territory falls within the counties of Richland and Lexington.

(14) “Electronic” means electrical, digital, magnetic, optical, electromagnetic, or any other similar technology.

(15) "Goods" means all personal property, including but not limited to supplies, materials and equipment, including all things which are movable at the time of identification to the contract for sale, but excluding supplies, materials and equipment furnished "in kind."

(16) “Information Technology” means any combination of hardware, software, licensing, maintenance and training, essential to a technology-based solicitation, set of specifications, or contract.

(17) "Invitation for Bids" or "IFB" means a written, electronic or published, whether attached or incorporated by reference, which are used for solicitation of bids to contract for the procurement or disposal of goods and/or services, where the award is made to the lowest responsive and responsible bidder.

(18) "May" means could possibly be required or allowed.

(19) “May” also means receiving permission to.

(20) “Minor Informality” means mistakes, or non-judgmental errors, that have negligible effect on price, quantity, quality, delivery or other contractual terms and the waiver or correction of such mistakes does not prejudice other bidders, offeror or respondents.

(21) “Negotiations” means an exchange of information or any form of cooperation during which the Offeror and the District may alter or otherwise change the conditions, terms, and price, unless prohibited, of the proposed contract.

(22) "President/CEO" means President/CEO of the District.

(23) "Procurement" means buying, purchasing, renting, leasing or otherwise acquiring any goods and/or services including Consultant Services and Professional Services. It also includes all functions that pertain to the obtaining of goods and services, including description of requirements, selection and solicitation of sources, preparation and award of contracts, and all phases of contract administration.

(24) “Procurement Manager” means the person duly authorized by the President/CEO to facilitate the source selection process, including but not limited to, preparing solicitations and written determinations, conducting negotiations, making award recommendations and administering contracts. Signature authority threshold shall be expressively authorized by the President/CEO.

(25) "Procurement Manual" (or “this Manual”) means the "Policy and Procedures of the Richland-Lexington Riverbanks Park District Concerning Public Procurement Activities,” and as may from time to time be amended.

(26) "Professional Services" means the service of architects, engineers, or other individuals or organizations possessing a high degree of technical skill in a particular field and regulated by a licensing board or agency.

(27) “Proposal Revision” means a change to a proposal made after the solicitation closing date, at the request of or as allowed by the Procurement Manager, as a result of negotiation or in the event of value engineering.

(28) “Public Notice” means the distribution of dissemination of information to interested parties using methods that are readily available. Such methods may include electronic mailing lists and a website maintained for that purpose.

(29) "Request for Proposals" or "RFP" means a written or published solicitation for proposals to furnish goods and/or services, the award of which will be to the offeror submitting the most advantageous proposal to the District taking into consideration the evaluation factors set forth in the RFP.

(30) "Responsive Bid," "Responsive Offer," or "Responsive Proposal" means a bid, offer or proposal which meets all material and essential requirements of the solicitation.

(31) "Responsible Bidder" or "Responsible Offeror" means a person or entity which: (1) has the capability in all respects to perform fully the contract requirements; (2) has the integrity and reliability which will assure good faith performance which may be substantiated by past performance; and (3) has not given the District good cause to believe that such person or entity has knowingly violated, or attempted to violate, any provision of this policy.

(32) "Responsive Bidder" or "Responsive Offeror" means a person who has submitted a bid or proposal, which meets all material and essential requirements of the solicitation.

(33) "Shall" or "Must" means will have to.

(34) “Services” means the furnishing of labor, time or effort by a contractor, consultant, subcontractor or sub-consultant which does not involve the delivery of specific end product other than required design documents of reports and performance. Services do not include employment agencies or collective bargaining agreements. The definition of service includes but is not limited to, consulting, personal, professional, legal counsel, auditing, technical, professional design and construction services.

(35) “Solicitation” means an invitation for bids, a request for technical proposals, a request for proposals, a request for qualifications, a request for quotations, an invitation for reverse auction bids or any other invitation or request by which the District invites a person to participate in a procurement.

(36) "Specification(s)" means a technical or specific description of physical or functional characteristics, or of the nature of a supply, service or construction item, issued to inform a prospective bidder or offeror of the specific requirement of the District with regard to the item to be bid or proposed upon. It may also include a description of any requirement for inspecting, testing or preparing a supply, service or construction item for delivery. Specification(s) waive or do not replace any warranty, written or implied.

(37) “Standard or Standardization” means the process of defining and applying the conditions necessary to ensure that a given range of requirements can normally be met, with a minimum of variety, in a reproducible and economic manner based on the best current techniques.

(38) “Subcontractor or Sub-consultant” means a person who contracts to perform work or render services to a contractor or consultant as a part of a contract with the District.

(39) "Surplus Goods/Property" means obsolete or unused goods or property in which the District has an ownership interest and for which the District has no immediate or foreseeable future use.

(40) "Vendor" means a person or entity that sells, leases or otherwise furnishes goods, services and/or supplies.

ARTICLE 3

PUBLIC PROCUREMENT ADMINISTRATION

§3-101 DELEGATION OF AUTHORITY BY THE COMMISSION:

Subject to the specific delegation of authority as provided in the provisions of this Procurement Manual, the Commission is empowered with all rights, powers, duties and authority relating to the buying, purchasing, renting, leasing, or otherwise acquiring any goods and services, including but not limited to, construction services, consultant services, professional services, concessions, and the management, control, sale, and disposal of goods and services. Authority to execute contracts on behalf of the District is delegated to the President/CEO, or his designee.

§3-102 DELEGATION OF AUTHORITY BY THE PRESIDENT/CEO:

Subject to the provisions of this Procurement Manual, the President/CEO is hereby authorized to delegate such authority, as he or she deems appropriate to his or her designee.

§3-103 PROCUREMENT MANAGER:

The Procurement Manager will work under the direct supervision of the Chief Financial Officer and/or the President/CEO. The Procurement Manager will be responsible for the following:

1) Responsible for the implementation of all of the procedures outlined in this policy.

2) Serves as the chairperson for the Procurement Evaluation Committee.

3) Except as otherwise provided in this manual, the Procurement Manager may adopt operational procedures, consistent with the procurement manual, governing the procurement and management of all materials, services and construction to be procured by the District.

4) The Procurement Manager shall serve as the central procurement and contracting authority for the District.

5) Except as otherwise provided in this manual, the Procurement Manager shall:

a. Procure or supervise the procurement of materials, services and construction needed by the District.

b. Sell, trade or otherwise dispose of surplus material belonging to the District.

c. Prepare, issue, revise, maintain and monitor the use of specifications for materials, services and construction required by the District.

d. Manage compliance with the Districts procurement card (pCard) program.

e. May delegate procurement authority to designees or to departments within the District as deemed necessary.

§3-104 PURCHASE ORDERS:

Unless otherwise determined by this manual or by the President/CEO, the District's purchasing shall be conducted pursuant to its internal purchase order and budgetary control system, as it may be modified from time to time.

§3-105 PURCHASING CARDS:

The District authorizes the use of purchasing cards by District employees on a very limited basis, where the use of such cards are determined by the Finance Department to be the most advantageous manner to effect a smaller purchase.

ARTICLE 4

METHODS OF SOURCE SELECTION

§4-101 METHODS OF SOURCE SELECTION:

Unless otherwise allowed by law or others provisions of this policy, or exempt from this policy under §1-105, all District contracts shall be awarded by competitive sealed bidding, pursuant to Section 4-102, except as provided in:

(1) Section 4-103 (Competitive Fixed Price Bidding)

(2) Section 4-104 (Competitive Best Value Bidding)

(3) Section 4-105 (Competitive Sealed Proposals)

(4) Section 4-106 (Design Build Proposals)

(5) Section 4-107 (Small Purchases)

(6) Section 4-108 (Sole Source Procurement)

(7) Section 4-109 (Emergency Procurement)

(8) Section 4-111 (Competitive On-Line Bidding -Reverse Auction)

(9) Section 4-112 (Architect Engineer and Surveying Services)

(10) Section 4-113 (Purchasing Pursuant to Intergovernmental Relations)

(11) Section 4-114 (Qualified Products List-QPL)

§4-102 COMPETITIVE SEALED BIDDING:

(1) Conditions for Use. The preferred procurement technique, competitive sealed bidding should not be used in all instances. This is a price determinative method of procurement and is best applied where the needs of the District are precise and certain and may be secured from any number of potential suppliers.

(2) Invitation for Bids. Once a procurement has been approved, the Invitation for Bids ("IFB") shall be the document used to initiate a competitive sealed bid procurement, and shall include the following:

(a) instructions and information to bidders concerning the bid submission requirements, including the time and date set for receipt of bids, the individual to whom the bid is to be submitted, the address of the office to which bids are to be delivered, bid bond requirements and any other special information;

(b) the purchase description, specifications, delivery and performance schedule and requirements, and such inspection and acceptance requirements as are not included in the purchase descriptions;

(c) all contract terms and conditions, including warranty and bonding or other security requirements as applicable; and

(d) instructions to bidders to visibly mark as confidential each part of their bid which they consider to be proprietary information.

(3) Amendments. Amendments, addendum and corrections to the IFB may be issued by the Procurement Manager as warranted.

(4) Public Notice. Public notice of the IFB shall be given. Such notice may include the South Carolina Business Opportunities publication (SCBO), or some similar publication within a reasonable time prior to bid opening. Bidding time will be set to provide bidders a reasonable time to prepare their bids. A minimum of ten (10) days shall be provided unless a shorter time is deemed necessary for a particular procurement as determined by the District. If the procurement involves grant monies from the federal or state government, the bidding time shall be a minimum of thirty (30) days.

(5) Bid Opening. Bids shall be opened publicly in the presence of one or more witnesses at the time and place designated in the IFB, or in the event of electronic bidding, the bids shall be published and available for public inspection for all participants through the means of the electronic portal or media through a virtual public opening. In the event no attendees are present for bid opening, the sealed bids shall be opened by Officer and a bid or no bid shall be recorded on the tabulated sheet. The dollar amount of each bid, and such other relevant information, together with the name of each bidder, shall be recorded; the record and each bid shall be open to public inspection after award and expiration of protest. Only the information disclosed at bid opening is considered to be public information until an award is actually made. An amendment postponing bid openings may be issued by the Procurement Manager.

(6) Bid Acceptance and Bid Evaluation. Bids shall be accepted unconditionally without alteration or correction, except as authorized in this policy. When necessary, for the best interest of the District, the IFB may include criteria to determine acceptability such as inspection, testing, quality, workmanship, delivery, and suitability for a particular purpose. Those criteria that will be used to adjust the bid price to be considered in evaluation for award shall be measurable, such as discounts, transportation costs, and total or life cycle costs. The IFB shall set forth the cost criteria to be used. No cost criteria may be used in bid evaluation which are not set forth in the IFB.

(7) Correction or Withdrawal of Bids; Cancellation of Awards. Corrections or withdrawal of inadvertently erroneous bids before or after award, or cancellation of awards or contracts based on such bid mistakes, may be permitted where appropriate. After bid openings, no change in bid prices or other provisions of bids prejudicial to the interest of the District or fair competition shall be permitted. A bidder must submit a written request to either correct or withdraw a bid to the District. Each written request must document the fact that the bidder's mistake is clearly an error that will cause substantial loss to the bidder. In order to maintain the integrity of the competitive sealed bidding process, a bidder shall not be permitted to correct a bid mistake after bid opening that would cause such bidder to have the low bid unless the mistake, in the judgment of the District, is clearly evident from examining the bid document; for example, the incorrect extension of unit prices or errors in addition. All decisions to permit the correction or withdrawal of bids, or to cancel awards or contracts based on bid mistakes, shall be supported by a determination made by the Procurement Manager. This Section 4-102 (7) also shall apply to the other source selection methods provided for herein.

(8) Tie Bids. If two or more bidders are tied in price while otherwise meeting all of the required conditions, awards are determined in the following order:

(a) if there is a South Carolina DBE firm tied with another firm, the award shall be made automatically to the DBE firm;

(b) if there is a South Carolina firm tied with an out-of-state firm, the award shall be made automatically to the South Carolina firm;

(c) if there is a tie bid involving South Carolina produced or manufactured products, when known, and items produced or manufactured out of state, the award shall be resolved in favor of the South Carolina commodity;

(d) if there is a tie bid involving South Carolina firms, the award shall be resolved in favor of the South Carolina firm located in the closest proximity to the District;

(e) in all other situations where bids are tied, the award shall be made by coin toss.

(9) Award. The Procurement Manager shall award the Contract with reasonable promptness by written notice to the lowest responsive and responsible bidder whose bid meets the specifications and any other requirements set forth in the IFB. In the event all bids exceed available funds as certified by the District, the District is authorized, in situations where time or economic considerations preclude re-solicitation of work of a reduced scope, to negotiate an adjustment in the bid price, including changes in the bid requirements, with the lowest responsive and responsible bidder, in order to bring the bid within the amount of available funds, and, in the event of impasse, with the next lowest bidder to the point of impasse or contract. Notification of the award shall be made by posting on the District’s Procurement website. When the award exceeds Fifty-Thousand Dollars ($50,000.00), notice must be given to all bidders by email as well as posting on the Procurement website.

(10) Minor Informalities or Irregularities in Bids. A minor informality or irregularity is one (i) which is merely a matter of form or is some immaterial variation from the exact requirements of the solicitation, having no effect or merely a trivial or negligible effect on price, quality, quantity, or delivery of the supplies or performance of the services being procured, and (ii) the correction or waiver of which would not affect the relative standing of, or be otherwise prejudicial to other bidders. The District shall either give the vendor an opportunity to cure any deficiency resulting from a minor informality or irregularity or waive any such deficiency where it is to the advantage of the District. Such communication or determination shall be in writing. Examples of minor informalities or irregularities include, but are not limited to:

(a) failure of a bidder to return the number of copies of signed responses required by the IFB;

(b) failure of a bidder to furnish the required information concerning the number of the bidder’s employees or failure to make a representation concerning its size status;

(c) failure of a bidder to sign its bid, but only if (i) the firm submitting the response has formally adopted or authorized the execution of documents by typewritten, printed or rubber-stamped signature and submits evidence of such authorization and the response carries such a signature; or (ii) the unsigned response is accompanied by other material indicating the bidder's intention to be bound by the unsigned response such as the submission of the price guarantee with the response or a letter signed by the bidder with the response referring to and clearly identifying the response itself.

(d) failure of a bidder to acknowledge receipt of an amendment to an IFB, but only if (i) the response received clearly indicates in some way that the bidder received the amendment, such as where the amendment added another item to the invitation for bids and the bidder submitted a response thereon, or (ii) the amendment would have no effect or merely a trivial or negligible effect on price, quality, quantity, delivery or the relative standing of bidders, such as an amendment correcting a typographical mistake in the name of the District.

(e) failure of bidder to furnish an affidavit concerning affiliates;

(f) failure of a bidder to execute certificates with respect to Equal Employment Opportunity and Affirmative Action programs;

(g) failure of a bidder to furnish cut-sheet or product literature;

(h) failure of a bidder to furnish certificates of insurance;

(i) failure of a bidder to furnish financial statements;

(j) failure of a bidder to furnish references;

(k) failure of a bidder to furnish his bidder number; or

(l) failure of a bidder to indicate his contractor’s license number or other evidence of licensure, provided that no contract shall be awarded to the bidder unless the bidder was properly licensed under the laws of the State of South Carolina when the bid was submitted.

(m) Exceeding Available Funds. In the event the low responsive and responsible bid for a project exceeds available funds, the Officer is authorized, when time or economic considerations preclude re-solicitation of work of a reduced scope, to negotiate an adjustment of the bid price in order to bring bid within available funds and, in the event of impasse, with the next lowest bidder to the point of impasse or contract.

§4-103 COMPETITIVE FIXED PRICE BIDDING:

(1) Conditions for Use. Once a procurement has been approved, if the President/CEO or Procurement Manager determines that the use of competitive sealed bidding is either not practicable or not advantageous to the District, a contract may be entered into by a competitive fixed price bidding.

(2) Fixed Price Bidding. The purpose of fixed price bidding is to provide a source or multiple sources of supply for specific goods or services based on a preset maximum price which the District will pay for such goods or services.

(3) Public Notice. Adequate public notice of the solicitation shall be given in the same manner as provided in Section 4-102(4).

(4) Pricing. The Procurement Manager shall establish, prior to issuance of the fixed price bidding, a maximum amount the District will pay for the goods or services desired.

(5) Evaluation. Responsible Vendors' responses to the fixed price bid will be reviewed by the Procurement Manager to determine if they are responsive.

(6) Discussion with Responsive Bidders. Discussions may be conducted by the Procurement Manager with apparent responsive bidders to assure understanding of the requirements of the fixed price bid. Any bidder whose bid, in the Procurement Manager’s sole judgment, needs clarification shall be accorded such an opportunity.

(7) Award. The Procurement Manager shall make an award to all responsive and responsible bidders to the District's request for competitive fixed price bidding. The contract file shall contain the basis on which the award is made and must be sufficient to satisfy external audit; but failure to comply with this subsection shall not be the basis for invalidating an award.

(8) Bids Received After Award. Bidders not responding to the initial fixed price bid may be added to the awarded vendor's list provided the bidder furnishes evidence of responsibility and responsiveness to the District's original fixed price bid as authorized by the solicitation.

(9) Remedies. The failure of a specific offeror to receive business, once it has been added to the awarded vendor's list, shall not constitute a contract controversy under Article 13.

§4-104 COMPETITIVE BEST VALUE BIDDING:

(1) Conditions for Use. Once a procurement has been approved, if the President/CEO or Procurement Manager determines that the use of a competitive sealed bid is either not practicable or not advantageous to the District, a contract may be entered into by competitive best value bidding.

(2) Best Value Bidding. The purpose of best value bidding is to allow factors other than price to be considered in the determination of award for specific goods and services based on predetermined criteria identified by the District.

(3) Public Notice. Adequate public notice of the solicitation shall be given in the same manner as provided in Section 4-102(4).

(4) Bid Opening. At bid opening, the only information that will be released is the names of the participating bidders. Cost information will be provided after the ranking of bidders and the issuance of award.

(5) Evaluation Factors. The best value bid invitation shall state the factors to be used in determination of award and the numerical weightings for each factor. Cost must be a factor in determining the award and cannot be weighted at less than 60 percent. Best value bid evaluation factors may be defined to include, but are not limited to any of the following, as determined by the District in its sole discretion; and such factors are not subject to protest:

(a) operational costs that the District will incur if the bid is accepted;

(b) quality of the product of service, or its technical competency;

(c) reliability of delivery and implementation schedules;

(d) facilitation of data exchange and systems integration;

(e) warranties, guarantees and return policy;

(f) vendor financial stability;

(g) industry and program experience;

(h) prior record of vendor performance;

(i) vendor expertise with engagements of similar scope and complexity;

(6) Discussion with Responsive Bidders. The Procurement Manager may conduct discussions with apparent responsive bidders to assure understanding of the best value bid. Each bidder, whose bid in the Procurement Manager’s judgment need clarification, shall be accorded such an opportunity.

(7) Selection and Ranking. Bids shall be evaluated by using only the criteria stated in the best value bid invitation and by adhering to the weightings as assigned. All evaluation factors, other than cost, will be considered prior to determining the effect of cost on the score for each participating bidder. Once the evaluation is complete, all responsive bidders shall be ranked from most advantageous to least advantageous to the District, considering only the evaluation factors listed.

(8)Award. Award by the Procurement Manager must be made to the responsive and responsible bidder whose bid is determined to be the most advantageous to the District taking into consideration all evaluation factors set forth in the best value bid. The contract file shall contain the basis upon which the award is made and must be sufficient to satisfy external audit, but failure to comply with this subsection shall not be the basis for invalidating an award. Procedures and requirements for notification shall be the same as those stated in Section 4-102(8).

§4-105 COMPETITIVE SEALED PROPOSALS:

(1) Conditions for Use. Once a procurement has been approved, if the President/CEO or Procurement Manager determines that the use of competitive sealed bidding is either not practicable or not advantageous to the District, a contract may be awarded by competitive sealed proposals. Competitive sealed proposals should be used when both the needs of the District and the costs to satisfy those needs are important, but the methods, or items to satisfy those needs are not clear and precise. While price is an important factor, it is considered less significant than fully meeting the District's needs. The ultimate purpose of this method of procurement is to maximize the District’s purchasing power by allowing it to use the expertise of the competing vendors in designing and presenting their respective approaches to meeting the District’s needs, and then to choose the approach which best suits the District’s purposes, with price being only one factor in such selection. It is therefore ordinarily used for the purchase of systems and services, as opposed to commodities. . Proposals shall be solicited through a Request for Proposals (RFP).

(2) Request for Qualifications. Prior to soliciting proposals, the District may issue a Request for Qualifications (RFQ) from prospective offerors. Such request shall contain at a minimum a description of the goods or services to be solicited in the RFPs, the general scope of the work, the deadline for the submission of information and how prospective offerors may apply for consideration. The request shall require information only on their qualifications, experience, and ability to perform the requirements of the contract. After receipt of the responses to the RFQ, the prospective offerors shall be ranked from most qualified to least qualified on the basis of the information provided. Proposals shall then be solicited from at least the top two prospective offerors by means of a RFP. RFP’s for design-build services shall conform to the requirements of Section §4-106. The failure of a prospective offeror to be selected to receive an RFP shall not be grounds for protest under Article 13.

(3) Request for Proposal. The RFP shall be the document used to initiate a competitive sealed proposal procurement and shall include the following:

(a) instructions and information to proposers concerning the proposal submission requirements, including the time and date of receipt of proposal, the individual to whom the proposal is to be submitted, the address of the office to which proposals are to be delivered, proposal bond requirements and any other special information;

(b) the project description, applicable specifications, delivery and performance schedules and any inspection and acceptance requirements that are not included in the project description;

(c) all contracts terms and conditions, including warranty and bonding or other security requirements as applicable; and

(d) instructions to proposers to visibly mark as confidential each part of their proposals which they consider to be proprietary information.

(4) Public Notice. Public Notice of the Request for Proposals or the Request for Qualifications shall be given in the same manner as provided in Section 4-102(6).

(5) Proposal Opening, Confidential Information to be Marked. Proposals shall be publicly opened or in the event of electronic submission through the means of the electronic portal or media through a virtual public opening but only the names of the offerors shall be disclosed at the proposal opening. Contents of competing proposals shall not be disclosed during the process of opening or negotiation. All proposals shall be opened for public inspection after contract award. ,

(6) Evaluation Factors and Ranking. The RFPs shall state the evaluation factors in relative order of importance but may not require disclosure of the weight of the factors. If the District needs to restrict the number of oral presentations, it may do so by restricting the number of proposals to be received through the use of an RFQ under Section 4-105(2), or through shortlisting at least three (3) of the most qualified as provided for in the RFP. Specific or individual numerical weighting is not required.

(7) Negotiations with the Highest Ranked Responsive Offeror and Revisions to Proposals. As provided in the RFP’s, the Procurement Manager may conduct negotiations with the highest-ranking offeror. In conducting negotiations, there shall be no disclosure of any information derived from proposals submitted by competing offerors. Discussions may be conducted with offerors who submit proposals determined to be reasonably susceptible of being selected for award for the purpose of clarification to assure full understanding of, and responsiveness to, the solicitation requirements. All offerors whose proposals, in the Procurement Manager's sole judgment, need clarification must be accorded that opportunity.

(8) Proposal Evaluation. For the purpose of evaluating the proposals for any given solicitation, additional or substitute members may be assigned to the Procurement Evaluation Committee as deemed appropriate by the President/CEO or Procurement Manager.

(9) Negotiations. After ranking, the District may, in its sole discretion and not subject to challenge through a protest filed under Article 13, proceed in any of the manners indicated below:

(a) Negotiate price or other terms with the highest scoring offeror. If a satisfactory price and terms cannot be agreed upon, negotiations may be conducted in the sole discretion of the District with the second, and then the third, and so on, ranked offerors to such level of ranking as determined by the District in its sole discretion; or

(b) Negotiate with the highest-ranking offeror on matters affecting the scope of the contract so long as the overall nature and intent of the contract is not changed. If a satisfactory contract cannot be negotiated with the highest ranking offeror, negotiations may be conducted in the sole discretion of the District with the second, and then the third, and so on, ranked offerors to such level of ranking as determined by the District in its sole discretion; or

(c) Change the scope of the RFP and give all responsive offerors an opportunity to submit best and final offers; or

(d) If the District chooses any one of the above three options and is still unable to award a contract, it may repeat any of the procedures outlined herein until a proposed contract is successfully achieved.

(10) Award. Award shall be made to the responsive offeror whose proposal is determined by the Procurement Evaluation Committee to be the most advantageous to the District taking into consideration the evaluation factors set forth in the RFP, unless the District determines that the price is beyond budget or is unreasonable. Upon such determination, the District may opt to utilize one of the options provided in Section 4-105(10).

The provisions of §4-102(3), (4), (7), and (11) may apply to competitive sealed proposals.

§4-106 DESIGN/BUILD PROPOSALS:

(1) Conditions for Use. A design/build contract shall be a contract between the District and a design builder to furnish the architecture, engineering, and related services as required, for a given project, and to furnish the labor, materials and other construction services for the same project. Prior to undertaking a design/ build contract, the President/CEO or Procurement Manager shall make a determination that it is in the best interest of the District to enter into a design/build contract to complete the project. Any design/build contract awarded by the District will be based upon an approved AIA 191 or a written contract through the District’s legal counsel.

(2) Requirements for Design Builders. A design/builder can be any entity (whether natural person, partnership, joint venture, corporation, professional corporation, business association, or other legal entity) which proposes to design and construct any project designated as design/build by the District and governed by this Section. Each design/builder shall be duly licensed and registered to do business in the State of South Carolina as either an architect, an engineer, or a general contractor. For purposes of satisfying the RFP and undertaking the design/build contract, each design/builder may delegate responsibility for those design or construction services for which the design/builder is not licensed, to duly licensed employees, joint venture partners, or subcontractors, if and to the extent permitted by South Carolina law, and with no diminishment of responsibility to the District and the public.

(3) Design Build Proposals. Design build proposals shall follow the procedure set forth for competitive sealed proposals, Section 4-105, modified as follows:

(4) Request for Qualifications:

(a) The Procurement Manager may qualify all prospective design builders through the use of an RFQ. In the RFQ, the District shall state the scope, the budget limits, and the anticipated duration of the project. The scope and the anticipated duration should provide design builders with sufficient guidance concerning the required technical and professional resources for the project. The RFQ should require design builders to state their qualifications, such as technical proficiency, professionally licensed experience, and the form of the legal entity under which the design builder will submit proposals on the project. In addition, the RFQ shall require the design builders to enumerate the assignment of professionally licensed responsibilities as part of the design builder’s team. Along with their qualifications, the District may require each prospective design/builder to submit a brief statement: (1) characterizing the proposed project in terms of its adaptability to the design-build concept; (2) listing any special characteristics of the proposed project which might have a positive or negative impact upon the design-build process; (3) characterizing the design/builder’s general approach to the project if selected; and (4) discussing any experience the design/builder may have had with similar projects or projects which would otherwise assist the design/builder with approaching the project in question.

(b) Development of Design/Build Short-List. Based on its review and analysis of the qualifications submitted, the Selection Committee will create a short-list of no more than three (3) prospective design/builders, who will be issued RFPs for the design/build project.

(c) Content of Requests for Proposals. Each RFP for a design/ build project shall:

(1) include design requirements;

(2) solicit proposal development documents including single-line schematics and a budget;

(3) State that the design/build contract will be awarded on an approved written contract through the District’s legal counsel and that the prospective design/builder, by submitting a proposal, agrees, if selected, to enter into that contract and abide by all material provisions thereof.

(d) Evaluation Factors. Each RFP for design/build shall state the relative importance of such factors as (a) demonstrated compliance with the design requirements, (b) offeror’s qualifications, (c) financial capacity, (d) project schedule, (e) estimated construction costs, and (f) the quality of the offeror’s oral presentation, if any.

§4-107 SMALL PURCHASES:

Any single procurement, not exceeding Twenty Five Thousand Dollars ($25,000.00), may be made by the District in accordance with this paragraph; providing, however, that such procurement shall not be artificially divided so as to constitute a small purchase. Related items (such as small hardware items or spare parts for vehicles) may be included in one solicitation, and the award made on an "all or none" basis. In such cases, suppliers shall be advised of this award procedure at the time quotations are requested.

(1) Small purchases not exceeding Two Thousand Five Hundred Dollars ($2,500.00), including freight and all other related expenses of the purchase except sales tax, may be accomplished without competitive quotations if the prices do not appear to be unreasonable. The ordering department shall annotate the purchase requisition as follows: "Price appears to be fair and reasonable." When practical, such purchases shall be distributed equitably among qualified suppliers. Action to verify the reasonableness of the price need be taken only when the Procurement Manager suspects that the price may not be reasonable, e.g., by comparison to previous price paid or personal knowledge of the item involved, or by other means. Continual and repetitive purchases of the same or similar items throughout a period of time do not qualify for inclusion in this category of small purchases, even though each individual purchase is Two Thousand Five Hundred Dollars or less. In such situations, the Procurement Manager will solicit and award one or more blanket purchase or term contracts pursuant to §6-103 and communicate the existence of such to each department.

(2) Small purchases from Two Thousand Five Hundred Dollars and One Cent ($2,500.01) to Five Thousand Dollars ($5,000.00), including freight and all other related expenses of the purchase except sales tax, may be accomplished if verbal or written quotations from three (3) qualified suppliers are obtained and it is documented that the procurement is to the advantage of the District, price and other factors considered, including the administrative costs of the purchase. Such documentation shall be attached to the purchase requisition. The procurement shall be awarded to the lowest responsive and responsible source unless a written justification is received and approved by the Procurement Manager. The purchasing department must include written or verbal quote information with the purchase order to keep with invoice.

(3) Small purchases from Five Thousand Dollars and One Cent ($5,000.01) to Twenty Five Thousand Dollars ($25,000.00), including freight and all other related expenses of the purchase except sales tax, may be accomplished if written quotations, bids or proposals are obtained from a minimum of three qualified suppliers. The procurement shall be made to the lowest responsive and responsible source unless a written justification is received and approved by the Procurement Manager. The purchasing department must include written quote information with the purchase order to keep with invoice.

(4) Purchases from Twenty Five Thousand Dollars and One Cent

($25,000.01) and up must follow the competitive bid process and be advertised at least once in South Carolina Business Opportunities. The Procurement must be solicited by the Procurement Manager. A copy of the Statement of Award and Bid Tabulation must be attached to the purchase requisition.

(5) The provisions of Article 6 shall not apply to contracts awarded under this Section 4-107.

§4-108 SOLE SOURCE PROCUREMENT:

(1) Conditions for Use. This method of procurement is the least competitive and therefore should have limited use. In those instances, however, where a procurement has been approved, and the District's needs can only be met by a method, means or item, which is reasonably available through only one source, sole source is an appropriate, and necessary, method of procurement. Price is not an operative factor, inasmuch as the cost is not pertinent where the needs are unique and can only be satisfied through a unique one-of-a-kind acquisition.

(2) Award. The Procurement Manager may award a contract for goods or services without competition when the Department Head/Director determines, in writing using the Sole Source/Single Source/Emergency Procurement Form, that there is only one source for the required goods or services and is approved by the President/CEO. The following are examples of circumstances which could necessitate sole source procurement:

(a) where the compatibility of equipment, accessories or replacement parts is the paramount consideration;

(b) where a unique item is needed for trial use or testing;

(c) where a unique item is to be procured for resale;

(d) where public utility services are to be procured;

(e) where the item is one of a kind;

(f) where the item itself is not generally unique, but where upon reasonable investigation, it appears most likely that only one product or system includes a particular feature or combination of features, which are of high importance to the District’s needs, and scheduling problems or other exigencies reasonably justify an expedited process.

(g) Where animal safety and welfare could be jeopardized.

§4-109 EMERGENCY PROCUREMENT:

Notwithstanding any other provision of this Procurement Manual, the Procurement Manager may make or authorize others to make an emergency procurement when there exists a threat to public health, welfare, or safety under emergency conditions, or such similar reason as may be proclaimed by the President/CEO, or where normal daily operations are threatened; provided that such emergency procurement shall be made with such competition as is practicable under the circumstances. If emergency considerations exist after an unsuccessful attempt to use competitive sealed bidding, an emergency procurement may also be made. In the discretion of the President/CEO with concurrence of the Procurement Manager, an emergency situation may be deemed to include one where the essential operational or financial interests of the District and its taxpayers would be directly threatened by delay. The Department Head or Director shall make a written determination using the Sole Source/Emergency Procurement Form with the signatory approval of the Procurement Manager and the President/CEO for the contract file stating the basis for an emergency procurement and for the selection of the particular vendor within 3 calendar days of purchase.

Emergency procurement shall be limited to that of supplies, services, and information technology or construction items necessary to meet the emergency.

§4-110 COMPETITIVE ON-LINE BIDDING (REVERSE AUCTION):

(1) Conditions for Use. When the District determines that online bidding is more advantageous than other procurement methods provided by this code, a contract may be entered into by competitive online bidding.

(2) Bidding Process. The solicitation must designate both an Opening Date and Time and a Closing Date and Time. The Closing Date and Time need not be a fixed point in time, but may remain dependent on a variable specified in the solicitation. At the Opening Date and Time, the District must begin accepting realtime electronic bids. The solicitation must remain open until the Closing Date and Time. The District may require bidders to register before the Opening Date and Time and, as a part of that registration, to agree to any terms, conditions, or other requirements of the solicitation. Following receipt of the first bid after the Opening Date and Time, the lowest bid price must be posted electronically to the Internet and updated on a real time basis. At any time before the Closing Date and Time, a bidder may lower the price of its bid, except that after Opening Date and Time, a bidder may not lower its price unless that price is below the then lowest bid. Bid prices may not be increased after Opening Date and Time. Except for bid prices, bids may be modified only as otherwise allowed by this code. A bid may be withdrawn only in compliance with Section 1520. If a bid is withdrawn, a later bid submitted by the same bidder may not be for a higher price. If the lowest responsive bid is withdrawn after the Closing Date and Time, the District may cancel the solicitation in accordance with this code or reopen electronic bidding to all preexisting bidders by giving notice to all preexisting bidders of both the new Opening Date and Time and the new Closing Date and Time. Notice that electronic bidding will be reopened must be given as specified in the solicitation.

(3) Receipt and Safeguarding of Bids. Other than price, any information provided to the District by a bidder must be safeguarded as required by Section 1520(4).

(4) Provisions Not to Apply. (Bid Opening) of Section 1520 (Competitive Sealed Bidding) do not apply to solicitations issued pursuant to this section.

§4-111 REJECTION OF RESPONSES:

(1) Rejection of All Responses. A compelling reason should exist to reject all responses. Every effort shall be made to anticipate changes in a requirement prior to the date of opening and to notify all prospective vendors of any resulting modifications or cancellation, thereby permitting vendors to change their responses and preventing the unnecessary exposure of responses. As a general rule, a solicitation should not be canceled and re-advertised after opening due solely to increased requirements for the items being procured. Award should be made on the initial solicitation and the additional quantity required should be treated as a new procurement.

When it is determined prior to an award, but after opening, that the requirements which were envisioned in the specifications have not been met, the solicitation shall be canceled. The solicitation may be canceled after opening, but prior to an award, when the Procurement Manager determines in writing that:

(a) inadequate or ambiguous specifications were cited in the solicitation;

(b) specifications should have been revised;

(c) supplies or services being procured are no longer required;

(d) the solicitation did not provide for consideration of all factors of costs to the District, such as cost of transportation;

(e) responses received indicate that the needs of the District can be satisfied by a less expensive article differing from that on which the responses were invited;

(f) all otherwise acceptable responses received are at unreasonable prices vis-à-vis the District’s expectations;

(g) the responses were not independently arrived at in open competition, were collusive or were submitted in bad faith;

(h) insufficient funds are available; or

(i) for other reasons, when cancellation is clearly in the best interest of the District.

(2) Rejection of Individual Responses as Non-Responsive. Any response which fails to conform to the material aspects or essential requirements of the solicitation shall be rejected as being non-responsive. Any submittal which does not conform to the specifications contained or referenced in the IFB or RFP may be rejected unless the IFB or RFP authorized the submission of alternate bids or proposals and said alternates meet the requirements specified in the IFB or RFP. For example, responses should be rejected in which the vendor:

(a) fails to conform to the delivery schedule or permissible alternates thereto stated in the solicitation;

(b) attempts to impose conditions or qualify which would limit the vendor's liability to the District, since to allow the vendor to impose such conditions would be prejudicial to other vendors;

(c) attempts to protect against future changes in conditions, such as increased costs, if total possible costs to the District cannot be determined;

(d) fails to state a price or states a price but qualifies such price and states that the price shall be subject to a "price in effect at time of delivery";

(e) when not authorized by the solicitation, conditions or qualifies a response by stipulating that the response is to be considered only if, prior to the date of award, vendor receives (or does not receive) an award under a separate procurement;

(f) requires the District to determine that the vendor's product meets the District's specifications; or

(g) limits the rights of the District under any contract clause.

(3) Any response received after the District has declared that the time set for opening has arrived shall be rejected unless the response was in the possession of the District and was misplaced. In such an event, the Procurement Manager shall annotate the tabulation and consider the misplaced response along with the other previously received responses.

§4-112 PUBLIC ACCESS TO PROCUREMENT INFORMATION AND CONFIDENTIALITY:

Information submitted to the District as part of any bid, proposal, or submission shall be a public record to the extent required by Chapter 4 of Title 30 of the S.C. Code of Laws (the South Carolina Freedom of Information Act) or § 11-35-410(c) of the SC Consolidated Procurement Code, with the exception that commercial or financial information obtained in response to any type of solicitation which is privileged and confidential may be withheld if permitted by state law. Privileged and confidential information is information in specific detail and not customarily released to the general public, the release of which might cause harm to the competitive position of the party supplying the information. Examples of this type of information would include:

(1) Customer lists;

(2) Design recommendations and identification of prospective problem areas;

(3) Design concepts, including the method and procedure; and

(4) Biographical data on key employees.

At the time of submitting a proposal or bid, the party supplying a bid or proposal must identify any portions of the proposal or bid considered by the party to be a trade secret and thus eligible to be withheld from public inspection and copying. If the information identified by the party is a trade secret, as defined in S.C. Code Section 30-4-40(a)(5)(c) (Pocket Supp.), it may be withheld from public inspection and copying. If the party fails to identify information as a trade secret, the entire bid or proposal may be made available for public inspection and copying. With the exception of Request for Proposals, competitive sealed bid pricing is subject to release through a bid tabulation and Freedom of Information Act and is not considered confidential and proprietary.

Where the nature of the request or the number of documents requested is reasonably anticipated to require the expenditure of time or other resources, the District shall charge an additional fee for the cost of labor incurred in duplication and mailing as well as the cost of search, examination, review, and the deletion and separation of exempt from non-exempt information.  The District shall require payment in full before the search is begun.

§4-113 QUALIFIED PRODUCTS LIST (QPL)

It is sometimes necessary to prequalify products or suppliers and only solicit those who have been prequalified. In such cases, a list is maintained of specific Products (QPL) or contractors (QCL) which have been evaluated and determined to be acceptable in meeting predetermined minimum acceptable levels of quality or performance. This qualification is performed in advance of any particular purchase program. By having such a prequalification procedure, the time involved in the purchase cycle can be reduced. The qualification requirements must be established and potential

Contractors advised by letter and/or public posting sufficiently in advance of the anticipated procurement to allow for evaluation and qualification of potential contractors and/or products. At least thirty days (30) prior to the date established for submission of bids or proposals under the procurement of the contract for what the prequalification applies, the District shall advise in writing, each contractor who submitted an application whether that contractor has been prequalified. In the event that a Contractor is denied prequalification, the written notification to the Contractor shall state the reasons for the denial of the prequalification and the factual basis of such reasons. Solicitations are only sent to those contractors determined to be qualified.

ARTICLE 5

QUALIFICATIONS AND DUTIES

§5-101 PREQUALIFICATION OF VENDORS:

The Procurement Manager with the advice of the President/CEO may prequalify vendors for the purchase of products and systems which are unusually complex, demanding, or exacting or which will probably exceed five hundred thousand dollars in costs. If the interviewing of multiple vendors is necessary in order to determine what product specifications best suit the needs of Riverbanks for a particular purchase, and the Procurement Manager determines that some but not all of the vendors are able to meet Riverbanks’s most critical needs, they may be prequalified to submit pricing or additional information.

The prequalification process must allow for as much competition as is practical under the circumstances.

§5-102 RESPONSIBILITY OF VENDORS:

A written determination concerning the responsibility of a vendor shall be made by the Procurement Manager or President/CEO. The unreasonable failure of a vendor to promptly supply information in connection with an inquiry with respect to responsibility may be grounds for a determination of non-responsibility with respect to such vendor. Factors to be considered in determining the responsibility of a vendor include whether the prospective vendor has:

(1) the appropriate financial, material, equipment, facilities and personnel resources and expertise available, or the ability to attain them, necessary to indicate its capability to meet all contractual requirements;

(2) a satisfactory record of past performance;

(3) a satisfactory record of integrity;

(4) qualified legally to contract with the District; and

(5) supplied all necessary information in connection with an inquiry concerning responsibility as may be generally applicable or upon such further requirements as may be imposed by the District in a particular procurement. The final determination shall be made a part of the contract file.

The determination can be waived where the vendor is already known to the District through reputation, prior dealings, or otherwise.

§5-103 COST OR PRICE DATA:

(1) Required Submission Relative to the Award of Contracts. A prospective contractor shall submit cost or pricing data when the contract is expected to exceed One Hundred Thousand Dollars ($100,000.00) or upon request. The submission of such cost or pricing data relating to the award of a contract is not required where:

(a) the contract price is based on adequate price competition;

(b) the contract price is set by law or regulation; or

(c) it is determined by the Procurement Manager that such requirement may be waived.

(2) Required Submissions Relating to Change Orders or Contract Modifications. A contractor shall submit cost or pricing data prior to the pricing of any change order or contract modification, including adjustments to contracts awarded by Competitive Sealed Bidding. The submission of such cost or pricing data relating to the pricing of a change order or contract modification is not required where:

(a) unrelated and separately priced adjustments for which cost or pricing data would not be required are consolidated for administrative convenience; or

(b) it is determined by the Procurement Manager that such requirement may be waived.

(3) Notwithstanding subsections (1) & (2), above, the District may request and require access to all Contractor’s books and financial data for purposes of review, audit or verification of the reasonableness and allocation of costs incurred on District Contracts within three (3) years of the performance of the contract. In the event such review, audit or verification establishes that the price to the District, including profit or fee, was excessive based upon errors, omissions, fraud or misrepresentations as to costs or pricing in the pricing or negotiations over changes, claims, or disputes concerning the scope of work or the quality of the work, Contractor shall be liable to the District for restitution for any such excessive payments.

(4) Certificate Required. A contractor, actual or prospective, required to submit cost or pricing data in accordance with this Section, shall certify that, to the best of contractor’s knowledge and belief, the cost or pricing data submitted was accurate, complete, and current as of a mutually specified date prior to the award of the contract or the pricing of the change order or contract modification.

(5) Price Adjustment Provision Required. Any contract awarded, change order, or contract modification under which submission and certification of cost or pricing data are required shall contain a provision stating that the price to the District, including profit or fee, shall be adjusted to exclude any significant sums by which the Procurement Manager finds that such price was increased because the contractor-furnished cost or pricing data was inaccurate, incomplete, or not current as of the date agreed upon between the District and the contractor.

ARTICLE 6

TYPES OF CONTRACTS

§6-101 TYPES OF CONTRACTS:

Subject to the limitations of this Section, any type of contract which will promote the best interest of the District may be used; provided that the use of cost-reimbursement or a cost-plus-a-percentage-of-cost contract shall not be used unless it contains a guaranteed maximum contract amount. Such a contract may be used only when a determination is made by the Procurement Manager and President/CEO that such contract is likely to be less costly to the District than any other type or that it is impracticable to obtain the supplies, services, or construction required except under such a contract.

Form and other vendor-provided contracts typically contain clauses that are not allowed in South Carolina (such as indemnification) or are not in the District’s best interest (continuous, evergreen/automatic renewals or subject to the laws of another state). Due to the potentially severe negative impact of signing contracts containing inappropriate clauses, departments are only authorized to sign purchase orders, not separate contracts, including maintenance agreements, service agreement, rental agreements, etc. The Procurement Manager in conjunction with the President/CEO shall review and sign any contracts.

The District has multi-term contracts for several goods and services and has access to hundreds of State and purchasing cooperative contracts. These contracts result in volume purchases and lower prices. The value of these contracts to the District must be maintained. Use of existing District contracts is mandatory. A master list of contracts with pricing is available at www.riverbanks.org/procurement.

§6-102 MULTI-TERM CONTRACTS:

(1) Specified Period. A contract for supplies or services may be entered into for a period of time not to exceed an initial term of five (5) years (unless directed by the President/CEO in cases where the set-up or investment may be advantageous to the District), provided the term of the contract and the conditions of renewals or extensions, if any, are included in the solicitation, and funds are available for the first fiscal period at the time of contracting.

Contract obligations for succeeding fiscal periods shall be subject to the availability and appropriation of funds therefore.

(2) Determination Prior to Use. Prior to the utilization of a multi-term contract, it shall be determined:

(a) that the estimated requirements cover the period of the contract and are reasonably firm and continuing; and

(b) that such a contract will serve the best interest of the District;

(c) with the following factors among those relevant to such a determination:

i. vendors not otherwise willing or able to compete because of high start-up costs or capital investment;

ii. lower production costs because of larger quantity or service requirements, or substantial continuity of production or performance over a longer period of time that can be expected to result in lower unit prices;

iii. stabilization of the vendor’s workforce over a longer period of time that may promote economy and consistent qualities; and

iv. significant reduction of the cost and burden of contract solicitation, award and administration of the contract.

(3) Evaluation. Care should be taken when evaluating multi-term prices against prices for the first fiscal period, which a determination on the basis of prices for the first period does not permit the successful bidder or offeror to “buy in” so as to give such bidder or offeror an undue competitive advantage in a subsequent period.

(4) Solicitation Document. The solicitation document shall state the following:

(a) the estimated amount of supplies or service required for the proposed contract;

(b) that a unit price shall be given for each supply or service, or fiscal period and that such unit prices shall be the same throughout the contract term (except to the extent price adjustments are authorized in the solicitation or the resulting contract);

(c) that the multi-term contract will be terminated if funds are not appropriated or otherwise made available to support continuation of performance in any fiscal period succeeding the first fiscal period; provided, however, this does not affect either the District's rights or the contractor's rights under any other termination clause in the contract;

(d) that the District must notify the contractor on a timely basis that the funds are not available for the continuation of the contract for a subsequent fiscal period;

(e) that a multi-term contract may be awarded and how such an award will be determined including, if prices for the first fiscal period and the entire time of performance are submitted, how such prices will be compared.

(5) Termination Due to Unavailability of Funds in Succeeding Fiscal Period. All multi-term contracts shall contain a clause stating that when funds are not appropriated, or otherwise made available, to support continuation of performance in a subsequent fiscal period the contract shall be terminated, together with no limitation on the ability of the District to substitute other services for those terminated hereunder, where, in the sole discretion of the District, it is regarded as appropriate.

§6-103 BLANKET PURCHASE CONTRACTS:

(1) Conditions for Use. A blanket purchase contract is a simplified method of filling anticipated repetitive needs for supplies or services by establishing "charge accounts" with qualified sources of supply. Blanket purchase contracts are designed to reduce administrative costs in accomplishing small purchases of $2,500.00 and under. Blanket purchase contracts shall be awarded in accordance with the provisions of Section 4-103. To the extent practicable, blanket purchase contracts for items of