GREAT BASIN UNIFIED AIR POLLUTION CONTROL DISTRICT

RULE 1101 - PURCHASING, BIDDING AND CONTRACTING
(Adopted 1/12/94)

A. Purpose.

This policy sets forth the District's requirements and guidelines for the purchase of materials and equipment, the retention of consultants and the award of public construction work.

B. Definitions.

  1. APCO - Air Pollution Control Officer of the Great Basin Unified Air Pollution Control District or an employee of the District designated by the APCO to act in these matters. The APCO shall have all the authority of a Purchasing Agent.
  2. Bid - Any proposal submitted to the District in competition for supplying materials, equipment or public construction services. Bids are not submitted for the provision of consultant services.
  3. Consultant - Individual, firm, partnership, corporation, association or other legal entity that provides a special service or expertise required by the District.
  4. Contract or agreement - One of the District's standard personal service or independent contractor agreements (Standard contracts No. 101 through No. 119) or any agreement approved by the District's legal counsel.
  5. Contractor - Individual, firm, partnership, corporation, association or other legal entity that enters into an agreement with the District to supply materials or equipment or to perform certain studies, investigations, services or work.
  6. District - The Great Basin Unified Air Pollution Control District.
  7. Equipment - Tools, supplies, parts, machinery, devices, computers and motor vehicles.
  8. Materials - Building resources, such as, lumber, steel, pipe, hose, fasteners and fittings.
  9. Public construction - The improvement, erection, installation and repair of buildings or works, as described in the California Public Contracting Code, Section 20150.2.
  10. Total cost - The total and complete cost of the item or work including purchase or contract price, applicable sales tax, shipping cost and handling cost.

C. General.

  1. Separation Into Smaller Projects: Equipment, materials, consultant services and public construction shall not be split or separated into smaller contracts, projects or quantities for the purpose of evading the requirements of this policy.
  2. Sole Source Determination: On occasion, due to availability, experience or overall cost (including operating and maintenance costs), certain materials, equipment, consultant services or public construction services are available from only one source. In the case of the purchase of budgeted materials or equipment valued between $2,500.00 and $10,000.00, if the APCO makes a determination that the budgeted materials or equipment are available from only one source, those materials or equipment may be purchased without first conducting a formal or informal bid procedure. The APCO must make the sole source determination in writing and must present the determination to the District Board at their next regularly scheduled meeting. In the case of unbudgeted materials and equipment, or materials and equipment valued at greater than $10,000.00, the Board shall make all sole source determinations.

In the case of contracting for consultant or public construction services for which a request for proposals, informal bids or formal bids are normally required, the District Board may make a determination that based on availability or experience, certain services could best be performed by a sole source. If the Board makes such a determination, it may enter into a contract with the sole source to perform the desired services without first conducting a request for proposals, informal or formal bid procedure. A record of the Board's sole source determination shall appear in the meeting minutes.

D. Materials and Equipment.

The purchase of all materials and equipment falls into one of three categories:

  1. Total cost is less than or equal to $2500.00 - There is no requirement for formal or informal bid procedures and no requirement for the preparation of specifications. The materials or equipment purchase shall be authorized by the APCO and shall be purchased by means of petty cash (total cost less than $100.00), a District purchase order or charged to a District account.
  2. Total cost is greater than $2500.00 and less than or equal to $10,000.00 - The materials or equipment shall be secured via an informal bid procedure. Upon completion of the informal bid procedure, the materials or equipment purchase shall be authorized by the APCO and shall be purchased by means of a District purchase order, a District contract in a form approved by District Counsel or charged to a District account.
  3. Total cost is greater than $10,000.00 - The materials or equipment shall be secured via a formal bid procedure. Upon completion of the formal bid procedure, a contract for the materials or equipment purchased shall be authorized and executed by the District Board.
    1. Informal Bid Procedure: Procedures for purchases of equipment and materials subject to an informal bid shall be as follows:
      1. A description or specifications for the item(s) shall be prepared. The specifications shall be detailed enough to thoroughly characterize the item(s), but should not contain so much detail as to purposefully allow only one item, one supplier or one manufacturer to meet the specifications. If only one item could meet the specifications, it may be appropriate to make a sole source determination (see Section C.2).

        The specifications may contain minimum warranty requirements. The specifications may also contain minimum requirements for product reliability. Specifically, if the type of materials or equipment being purchased have been evaluated by an independent testing and product evaluation organization (e.g. Consumers' Union), the specifications may require that the product have a frequency of repair rating or overall product rating of "average" or better. An example of specifications for an informal bid is contained in Appendix A.

      2. The specifications shall be distributed to at least three (3) suppliers of the item(s) specified and shall be posted in the public office of the District. The invitation to submit bids should designate the time and place that bids are to be received.
      3. After a period of not less than forty eight (48) hours after distribution of the invitations to submit bids, the APCO shall evaluate all bids received. All bids received must be signed by an agent of the supplier authorized to submit binding bids. Bids submitted by FAX or verbal bids followed up within 24 hours by a District purchase order are acceptable. The materials or equipment shall be purchased from the lowest bidder that meets all the requirements set forth in the specifications.
    2. Formal Bid Procedure: Procedures for purchases of equipment and materials subject to a formal bid shall be as follows:
      1. a. A description or specifications for the item(s) shall be prepared. The specifications shall be detailed enough to thoroughly characterize the item(s), but should not contain so much detail as to purposefully allow only one item, one supplier or one manufacturer to meet the specifications. If only one item could meet the specifications, it may be appropriate to make a sole source determination (see Section C.2).

        The specifications shall also contain instructions to bidders and bid, delivery and payment conditions. These additional instructions and conditions are to be considered part of the specifications. In order for bids submitted to be acceptable, all instructions and conditions must be adhered to by the bidders.

        The specifications may contain minimum warranty and service requirements. The specifications may also contain minimum requirements for product and vendor reliability. Specifically, if the type of materials or equipment being purchased have been evaluated by an independent testing and product evaluation organization (e.g. Consumers' Union), the specifications may require that the product have a frequency of repair rating or overall product rating of "average" or better. An example of specifications for a formal bid is contained in Appendix B.

      2. The APCO shall cause an advertisement inviting formal bids to be published as a legal notice stating the materials or equipment to be purchased and the time and place of opening of sealed bids. The notice shall be published at least twice a week for two consecutive weeks with the first notice being published a minimum of fourteen (14) days prior to bid opening. An example of such an advertisement is contained in Appendix C.
      3. At the time and place designated in the notice inviting bids, the APCO shall open all bids received. All bids received must be signed by an agent of the supplier authorized to submit binding bids. Bids submitted by FAX are not acceptable. The District, at its discretion, may reject all bids. The materials or equipment shall be purchased from the lowest bidder that meets all the requirements set forth in the specifications. If two or more bids meet all the requirements and are the lowest, the District will select the successful bidder by lot.
      4. In the event that all bids are rejected after the second invitation for bids, the District Board may pass a resolution by four-fifths vote declaring that the materials or equipment may be purchased at a lower price on the open market. In the event that the District Board fails to pass the aforementioned resolution, the project shall be readvertised for bids or abandoned.
    3. Disposal of Surplus Equipment: The disposal of all District materials, equipment and assets, deemed to be surplus, shall take place as follows:
      1. No more than once per year, District staff may review the condition and usefulness to the District of all materials, equipment and assets and prepare a list of surplus materials for disposal via public auction. The list of items to be disposed of, along with a disposal justification for each item, shall be submitted to the District Board for their review and approval.
      2. A bid form for all approved items shall be prepared and made available to the public. The APCO shall cause an advertisement inviting sealed bids to be published as a legal notice stating the materials or equipment to be disposed of and the time and place of opening of sealed bids. The notice shall be published at least twice a week for two consecutive weeks with the first notice being published a minimum of fourteen (14) days prior to bid opening.
      3. At the time and place designated in the notice inviting bids, the APCO shall open all bids received. All bids received must be signed. Bids submitted by FAX are not acceptable. The District, at its discretion, may reject all bids. Each surplus item shall be sold to the highest bidder submitting a bid on that item. If two or more bids are the highest, the District will select the successful bidder by lot.
      4. The high bidder for each item(s) shall deliver to the District, within 10 days of the bid opening, a certified or cashiers check made out to the District for the total amount bid on the item(s). At that time, the high bidder shall take possession of the item(s) from the District's Bishop office. All items will be sold in an "as is" condition. The District will not bear any shipping or delivery costs.
      5. All proceeds from the public auction shall be credited to the budget originally used for the purchase of each item auctioned. If the original budget is unknown, the proceeds shall be credited to the general District budget.

E. Retention of Consultants

Consultants providing special services or expertise as defined in Government Code Section 31000 shall be retained via a contract with the District. An exception to this requirement is made for consultants providing a specific commodity or skilled labor service, such as laboratory analytical services, which may be secured with a District purchase order. The retention of a consultant to provide a special service or expertise required by the District falls into one of two categories:

  1. Total cost of services is less than or equal to $10,000.00 - There is no requirement for conducting a request for proposals process. The APCO will execute a contract (or if appropriate, a purchase order) in a form approved by District Counsel on behalf of the District with the consultant to perform the required services. The APCO must inform the District Board of the contract at the Board's next regularly scheduled meeting. The ten thousand dollar ($10,000.00) ceiling includes any amendments to the contract approved by the APCO (see Section E.3).
  2. Total cost of services is greater than $10,000.00 - The consultant's services are to be secured by means of a request for proposals process. The contract (or if appropriate, the purchase order) to provide the required services shall be authorized and executed by the District Board.

    Consultant services costing greater than $10,000.00 may be secured with one of two types of request for proposals procedures. The first is a request for specific type of proposals to perform work identified and budgeted for by the District. The District identifies the scope of services to be performed and issues requests for proposals. This procedure is addressed below (Section E.1) and may be carried out at any time.

    The second procedure for securing consultant services costing greater than $10,000.00 is a general call for proposals from interested consultants for assistance in the development of air quality management plans to control fugitive dust emissions from Owens and Mono Lakes. This procedure shall take place in conjunction with meetings of the Owens and Mono Lakes Advisory Group. This procedure is addressed below (Section E.2).

  1. Retention of Consultants to Perform Work Identified by the District: Consultant services for work identified by the District shall be secured as follows:
    1. A request for proposals is prepared. The request should contain project background information, project objectives, a scope of work, a project schedule and conditions and instructions to proposers regarding submittal of proposals. The request should also have a sample contract attached. An example of a request for proposals is contained in Appendix D.
    2. A list of consultant firms appropriate to the project is compiled and requests for proposals are sent to those firms.
    3. Proposals are received and evaluated by the APCO.
    4. If appropriate, a "short list" of not less than three consultants most qualified to perform the work is established.
    5. If appropriate, interviews are conducted with the short listed firms.
    6. The short listed firms are ranked on the basis of their qualifications to perform the work. The District shall solely determine the criteria upon which qualifications are evaluated. Evaluation criteria may include, but are not limited to:
      1. Responsiveness to the requirements set forth in the request for proposals;
      2. A demonstrated understanding of the scope of work;
      3. Recent similar experience;
      4. The quality and quantity of personnel assigned to the project;
      5. The financial stability of the consultant;
      6. References from previous clients;
      7. The proposed project schedule;
      8. The cost to perform the work.
    7. A contract is negotiated with the most qualified short listed consultant. If a contract cannot be satisfactorily negotiated with the most qualified consultant, negotiations are terminated and the District enters into negotiations with the next ranked consultant and repeats the process until a contract is successfully negotiated.
    8. The contract (or if appropriate, a purchase order) is presented to the District Board for their approval and execution.
  2. Retention of Consultants Through the Owens and Mono Lakes Advisory Group: Due to the scientific research nature of much of the work to develop solutions to the fugitive dust problems on Owens and Mono Lakes, it is not always possible for the District to specify in detail the type of work that is appropriate in the development of solutions. Therefore, once a year, and in conjunction with the Owens and Mono Lakes Advisory Group, the District may issue a general request for proposals for work that will contribute to the solution to the fugitive dust problems on Owens and Mono Lakes. The procedure is as follows:
    1. The District prepares and distributes a call for proposals to all members of the Advisory Group as well as any other interested parties. An example of a such a call for proposals is contained in Appendix E.
    2. The proposals must be submitted in writing and must be presented to the Owens and Mono Lakes Advisory Group. The proposals should clearly specify how the proposed work will aid in the development of solutions to the fugitive dust problems.
    3. District staff will evaluate the proposals and any comments on the proposals received from members of the Advisory Group and will prepare a proposed final list of projects. This list will be submitted to the District Board for consideration and approval.
    4. The District Board will approve a final list of projects based on:
      1. A demonstrated understanding of the fugitive dust problems;
      2. Applicability of the proposed work to the development of a solution to the problems;
      3. Applicability of the proposed work to the District's current mitigation efforts;
      4. Scientific soundness of the proposed work;
      5. Environmental impacts of the proposed work;
      6. Available funding.
    5. Project funding is secured.
    6. A contract or purchase order is negotiated with the consultant.
    7. The contract or purchase order, if over $10,000 is presented to the District Board for their approval and execution.
  3. Contract Amendments: Contracts for consultant services may be changed or altered by the mutual consent of both parties, if the change or alteration is in writing in a format approved by the District's legal counsel and is executed by both parties. The APCO is authorized to approve and execute consultant contract amendments if the total cost associated with all amendments for the contract does not exceed:
    1. Five thousand dollars ($5,000.00) when the original amount of the contract does not exceed fifty thousand dollars ($50,000.00);
    2. Ten percent (10%) of the original amount of any contract exceeding fifty thousand dollars ($50,000.00).

    In no case shall the APCO execute consultant contract amendments totaling more than twenty five thousand dollars ($25,000.00) on any one contract. All other contract amendments shall be approved and executed by the District Board.



F. Public Construction Contracting: Contractors providing public construction services to the District shall be retained via a contract with the District. The retention of a contractor to provide public construction services falls into one of two categories:

  1. Total cost of construction is less than or equal to $10,000.00 - There is no requirement for formally requesting bids to perform the work. An informal process (see Section F.1) will be used and the APCO will execute a contract in a form approved by District Counsel on behalf of the District. The APCO must inform the District Board of the contract at the Board's next regularly scheduled meeting. The ten thousand dollar ($10,000.00) ceiling includes any amendments to the contract approved by the APCO (see Section F.3).
  2. Total cost of services is greater than $10,000.00 - The contractor's services are to be secured by means of a formal bid process (see Section F.2). The contract to provide the required services shall be authorized and executed by the District Board.
    1. Informal Bid Process: The informal bid process for securing a contractor to provide public construction services shall be as follows:
      1. Plans and specifications for the work to be performed shall be prepared. The plans and specifications should clearly show the location and extent of the work, they should specify the type of materials and equipment to be used and they should set forth working requirements and contractual terms. Examples of plans and specifications can be obtained from the District Projects Manager.
      2. The APCO shall approve the plans and specifications.
      3. The APCO shall cause a notice inviting informal bids to be published as a legal notice stating the type of work to be performed and the time and place of opening of sealed bids. The notice shall be published at least once, a minimum of forty eight (48) hours prior to the time scheduled for bid opening. An example of such an advertisement is contained in Appendix F.
      4. Bidders shall fill out the bid forms provided by the District and submit them in a sealed envelope, plainly marked as required by the notice inviting bids. Bids not adequately marked, filled-in or delivered on time shall be rejected.
      5. At the time and place designated in the notice inviting informal bids, the APCO shall publicly open and read all bids received. All bids received must be signed by an agent of the bidder authorized to submit binding bids. Bids submitted by FAX are not acceptable. The District, at its discretion, may reject all bids.
      6. All bids shall be accompanied by a bidder's security in the amount equal to at least ten percent (10%) of the bid. The security shall be in the form of a cashier's check made payable to the District, a certified check made payable to the District, or a bidder's bond, executed by an admitted surety insurer, made payable to the District. If the successful bidder fails to execute the contract within thirty days after award by the District, the bidder's security shall be forfeit to the District.
      7. All bidders shall be required to have a current California contractor's license of the class appropriate for the work to be performed.
      8. The work shall be awarded to the lowest bidder that meets all the requirements set forth in the plans and specifications. If two or more bids meet all the requirements, and are the lowest, the District will select the successful bidder by lot.
      9. The contractor awarded the contract shall execute a bond for the faithful performance of the contract in the amount of one hundred percent (100%) of the contract amount and a payment bond for labor and materials in the amount of one hundred percent (100%) of the contract amount.
      10. The APCO may award and execute a contract for the work in a form approved by District Counsel on behalf of the District. The APCO must inform the District Board of the contract award at the Board's next regularly scheduled meeting.
    2. Formal Bid Process: The formal bid process for securing a contractor to provide public construction services shall be as follows:
      1. Plans and specifications for the work to be performed shall be prepared. The plans and specifications should clearly show the location and extent of the work, they should specify the type of materials and equipment to be used and they should set forth working requirements and contractual terms. Examples of plans and specifications can be obtained from the District Projects Manager.
      2. The District Board shall approve the plans and specifications.
      3. The APCO shall cause a notice inviting formal bids to be published as a legal notice stating the type of work to be performed and the time and place of opening of sealed bids. The notice shall be published at least twice a week for least two (2) consecutive weeks with the first notice being published a minimum of ten (10) days prior to the bid opening. An example of such an advertisement is contained in Appendix F.
      4. Bidders shall fill out the bid forms provided by the District and submit them in a sealed envelope, plainly marked as required by the notice inviting bids. Bids not adequately marked, filled-in or delivered on time will be rejected.
      5. At the time and place designated in the notice inviting informal bids, the APCO shall publicly open and read all bids received. All bids received must be signed by an agent of the bidder authorized to submit binding bids. Bids submitted by FAX are not acceptable. The District, at its discretion, may reject all bids.
      6. All bids shall be accompanied by a bidder's security in the amount equal to at least ten percent (10%) of the bid. The security shall be in the form of a cashier's check made payable to the District, a certified check made payable to the District, or a bidder's bond, executed by an admitted surety insurer, made payable to the District. If the successful bidder fails to execute the contract within thirty days after award by the District, the bidder's security shall be forfeit to the District.
      7. All bidders shall be required to have a current California contractor's license of the class appropriate for the work to be performed.
      8. The work shall be awarded to the lowest bidder that meets all the requirements set forth in the plans and specifications. If two or more bids meet all the requirements and are the lowest, the District will select the successful bidder by lot.
      9. The contractor awarded the contract shall execute a bond for the faithful performance of the contract in the amount of one hundred percent (100%) of the contract amount and a payment bond for labor and materials in the amount of one hundred percent (100%) of the contract amount.
      10. The District Board shall award and execute the contract.
      11. In the event that all bids are rejected after the second invitation for bids, the District Board may pass a resolution by four-fifths vote declaring that the project can be performed more economically by District personnel or that a contract can be negotiated for a lower price than that submitted by the lowest qualified bidder. In the event that the District Board fails to pass the aforementioned resolution, the project shall be readvertised for bids or abandoned. If, after readvertising, the District rejects all bids, the District may proceed with the project using District personnel or it may readvertise.
    3. Contract Amendments: Contracts for public construction services may be changed or altered by the mutual consent of both parties, if the change or alteration is in writing in a format approved by the District's legal counsel and is executed by both parties.

      The APCO is authorized to approve and execute public construction contract amendments if the total cost associated with all amendments for the contract does not exceed:

      1. Five thousand dollars ($5,000.00) when the original amount of the contract does not exceed fifty thousand dollars ($50,000.00);
      2. Ten percent (10%) of the original amount of any contract exceeding fifty thousand dollars ($50,000.00).
    In no case shall the APCO execute consultant contract amendments totaling more than twenty five thousand dollars ($25,000.00) on any one contract.

    All other contract amendments shall be approved and executed by the District Board.