SECTION 1 Section 31-7-13, Mississippi Code of …

1 LTWH procurement , procurement procurement policy for programs administered by DRD, Mississippi Development Authority is governed by 24 CFR Part 85 (Common Rule) and applicable state laws and regulations. The following procurement standards are based upon current state law, 24 CFR Part 85, and DRD policies that are currently in effect. All for-profit entities shall adhere to the procurement policies set forth in the Mississippi Department of Finance and Administration s (DFA) procurement Manual which can be found at the following web address: Methods of procurement SECTION 1 SECTION 31-7-13, Mississippi Code of 1972, is amended as follows: SMALL PURCHASES 1.

2 Nonprofessional services or supplies, which do not involve an expenditure of more than $5,000, may be purchased without advertising. This method of procurement lends itself best to simple, informal purchases in which price quotations are obtained from an adequate number of qualified sources. Documentation of procurement would include a description of supplies or services needed,, aa lliisstt ooff vveennddoorrss oorr ssuupppplliieerrss ccaalllleedd,, aanndd pprriiccee qquuootteess oobbttaaiinneedd. Selection would be based on the lowest and best supplier.

3 2. If the aggregate cost is at least $5,000, but not more than $25,000, supplies or nonprofessional services may be obtained from the lowest and best bidder without advertising for bids provided at least two (2) competitive written bidss have been obtained. Documentation of procurement would include description of supplies or service needed, list of vendors or suppliers called or notified, and written individual quotes from each contacted vendor or supplier. Selection would be based on lowest and best supplier. two (2)competitivewritten bi d3. If the aggregate cost exceeds $25,000, the local government must use one of the next three methods of procurement .

4 SEALED BIDS (IFB) In order for sealed bidding to be feasible, the following conditions should be present: Clearly defined, adequate specifications, Two or more responsible bidders who are willing and able to compete, and The procurement lends itself to a firm fixed-price contract and the selection of the successful bidder can be made principally on the basis of price. This type of procurement is most commonly utilized for construction contracts. Documentation of procurement will include the following: Written detailed specifications and pertinent attachments; Proof of advertising, minutes showing Invitation for Bids (IFB) opened on date/time and location specified in publication, and; LTWH procurement , Technical evaluation tabulations; Selection should be based on the responsible bidder whose bid, conforming with all material terms and conditions of the Invitation for Bids, is the lowest in price.

5 Advertising: Bid requirements must be published in a newspaper of general circulation once each week for two (2) consecutive weeks and bid opening time requirements must be adhered to (see APPLICABLE TO ALL PROCUREMENTS SECTION ). COMPETITIVE PROPOSALS (RFP'S) procurement by competitive proposals is generally used when conditions are not appropriate for the use of sealed bids. If this method is used, the following requirements apply: Requests for proposals will be publicized and identify all evaluation factors and their relative importance; Proposals will be solicited from an adequate number of qualified sources; A method for conducting technical evaluations of the proposals received and for selecting awardees shall be maintained; and Awards will be made to the responsible firm whose proposal is most advantageous with price and other factors considered.

6 This method of procurement is commonly utilized for the contracting of professional service providers ( , consultants, attorneys, appraisers, etc.). Advertising: Requests for Proposals (RFP'S) must be published at least once in a newspaper of general circulation and actively solicited by certified, return receipt mail. Documentation: Written technical requirements for services required, proof of publication of RFP, proof of solicitations, written technical evaluations of proposals to include cost analysis, minutes showing observation of date/time opening requirements, and proof of Mississippi Contract procurement Center (MCPC) notification.

7 Architectural/Engineering Procurements Sub-recipients may use competitive proposal procedures for qualifications-based procurement of architectural/engineering services whereby competitors' qualifications are evaluated and the most qualified competitor is selected (24 CFR (4)(B)(v). The same basic requirements utilized in competitive proposals apply with the following exceptions: PRICE may not be utilized as a factor in the Request for Proposal for Land Surveyors or Engineering Services. Once a responsible offerer has been determined, the sub-recipient may then negotiate fair and reasonable compensation.)

8 If unable to reach an agreement with the most qualified, negotiate with the second ranked offerer. "Cost plus a percentage of cost" or "percentage of construction cost" (estimated or actual), contracts are prohibited. NON-COMPETITIVE PROPOSALS LTWH procurement , Non-competitive proposals (specifically the use of sole source providers) is not allowed in the KCDBG program. However, non-competitive proposals may be utilized when the sub-recipient does not receive adequate response to proposals for service. For example, if no response is received after the initial advertising attempt in a newspaper of general circulation, the sub-recipient should document its administrative file that no response was received and include a copy of the proof of publication.

9 At this point, the sub-recipient may contact prospective bidders, encourage them to submit a proposal for service, document the administrative file, and advertise a second time in a newspaper of general circulation. If no response, the sub-recipient may then enter into negotiations with prospective service providers. The administrative file should adequately document all actions taken to secure a service provider. LTWH procurement , APPLICABLE TO ALL PROCUREMENTS A. Mississippi Contract procurement Center -- State law requires state agencies and sub-recipients to send to the Mississippi Contract Technical Assistance Program a written notice of procurements in excess of $15,000, simultaneously with sending "Request for Proposals" or "Invitations for Bid" to the newspaper.

10 The address is as follows: Mississippi CONTRACT TECHNICAL ASSISTANCE PROGRAM 501 N. West Street JACKSON, Mississippi 39201 (601) 359-3448 B. State Bid Time Requirements -- The following bid time requirements are applicable in regard to publishing and opening bids according to state law: a. In advertising for competitive sealed bids, the date as published for bid opening shall not be less than seven (7) WORKING days after the last published notice for contracts of $25,000. b. If the purchase involves a construction project with an estimated cost in excess of $25,000, such bids shall not be opened less than fifteen (15) WORKING days after the last notice is published.