CONTRACTS PROCUREMENT MANUAL - New York …

1 CONTRACTSPROCUREMENTMANUALCNTR-1314 ContractsProcurementCover:13/23/11 10:32 AM Page 1 NYCEDC PROCUREMENT MANUAL TABLE OF CONTENTS CHAPTER 1 General Provisions 1. Purpose 2. Ethics 3. Contract Files and Record Keeping 4. Ethics CHAPTER 2 Procu rement Process 1. Speci fications 2. Bid Splitt ing 3. Price/Cost Analysis 4. Responsiveness 5. Vendor Resp onsibility CHAPTER 3 Methods of Selecti on (from use to award) 1. Bids 2. RFPs 3. Sole Source 4. Emergency Procu rements 5. Micro and Small Purch ases 6. RFQ 7. CM 8. Competiti ve Sealed Proposals 1. Purpose 2. Ethics CHAPTER 1 General Provisions 3. Contract Files and Record Keeping 1.

2 Purpose The purpose of this MANUAL is to simplify and clarify the guidelines by which NYCEDC is permitt ed to procure goods and services. The policies and proce dures related to NYCEDC s procu rements of goods and se rvices is governed by Article 4 ( CONTRACTS by the Corporation ), Section ( Procu rement ) of NYCEDC s Master and Mariti me CONTRACTS (the Master CONTRACTS ) with the City. The se ction indicates that, unless otherwise authorized by law, NYCEDC shall award all CONTRACTS for goods or services using one of the se ven enumerated procu rement methods. Where federal or State law, rules or regulations applicable to funds prescribe procu rement requirements that differ from those set out in the Master CONTRACTS , the requirements of those laws, rules or regulations shall govern with respect to CONTRACTS funded with su ch funds.

3 2. Ethics NYCEDC employees resp onsible for the expenditure of taxpayer dolla rs have a responsibility to ensu re that their co nduct will not violate the public trust placed in them. They must make ce rtain that their conduct does not raise susp icion or give the appearance that they are in violation of their public trust. To this end, NYCEDC employees having responsibility for contracti ng at all levels shall: encourage co mpetition, prevent favoritism, and obtain the best value in the interest of the City and the taxpayers; place professional responsibilities above personal interests; ensure fair co mpetiti ve access to NYCEDC procu rement opportunities to a broad cr oss-se cti on of responsible vendors; deal with the public and with vendors with courtesy , consideration, and even-handedness; use information gained co nfidentially in the performance of NYCEDC duties solely in the City and NYCEDC s interests.

4 And report co rruption and unethical practices, wherever and whenever discovered, to the appropriate official and/or take su ch other acti on as is warranted by the situation. In addition, pursuant to subsecti on (c) of Article 8 ( Representations, Warranties and Covenants ), Secti on ( Conflict of Interest ), all NYCEDC sa laried officers and employees must agree to in writing to be subject to the restrictions se t forth in Chapter 68 ( Conflict of Interest Board ) of the City Charter. 3. Contract Files and Record Keeping NYCEDC shall ensure that co pies of its co ntracts and other standard information regarding its CONTRACTS and vendors are reasonably available for inspection as provided by law, with adequate protecti on for co nfidential information.

5 NYCEDC shall maintain file s that co ntain all documentation pertaining to the so licitation, award, and management of each of its CONTRACTS , purch ase orders, amendments, renewals and change orders. All contract file s shall be retained by NYCEDC for a minimum of se ven years beyond the expiration date of the co ntract before final disposition. 1. Specifications 2. Bid Splitting CHAPTER 2 PROCUREMENT Process 3. Price/Cost Analysis 4. Responsiveness 5. Vendor Responsibility 1. Specifications Speci fications are used to obtain goods, services, and constructi on to fulfill NYCEDC s needs in a co st-effecti ve manner, taking into account, to the extent practicable, the co sts of ownersh ip and operation, as well as co sts of acq uisition.

6 Therefore, sp eci fications shall: permit maximum practicable competition; describe clearly NYCEDC s requirements without favoritism toward a vendor or a vendor s good, se rvices, or constructi on; to the extent practicable, be generic in nature and emphasize functi onal or performance cr iteria, while limiting design or other detaile d physical descriptions to those nece ssary to meet NYCEDC s needs; and to the extent practic able, utilize accepted co mmercial standards, and limit unique requirements that would tend to a favor a vendor or a vendor s good, se rvice, or constructi on Any vendor participating in the drafting of specifications shall not participate, in any manner, in a response to any subsequent so licitation utilizing su ch specifications, in whole or in part, a vendor or such vendor s good, services, or co nst ructi on, unless it is NYCEDC s interest to allo w such participation.

7 In that case, NYCEDC s contract file must contain the basis thereof to permit the vendor to participation in the co mpetiti on. Such prohibited participation shall include, but not be limited to, participating as a co ntractor or a subcontractor, or as a consultant to any contractor or subcontractor, responding to the solicitation usi ng the specifications. These guidelines apply to any vendor that has drafted any portion of the specifications use d in a procu rement regardless of whether such vendor s se rvices were procu red specifically for the drafting of those speci fic ations were procu red as a general consulting se rvice, or were donated.

8 2. Bid Splitting A PROCUREMENT shall not be artificially divided in order to meet the requirements of the micro or small purchase methods of PROCUREMENT . 3. Price/Cost Analysis Prior to vendor se lection, NYCEDC shall determine that the co ntract price is fair and reasonable by using price/cost analysis. The price/cost analysis must be maintained in the co ntract file s. Examples of price/cost analysis techniques that may be appropriate to use to determine whether a proposed price is fair and reasonable incl ude, but are not limited to: co mparing propose d prices rece ived in resp onse to a solicitation; co mparing cu rrent proposed prices to prior proposed prices and contract prices; applying rough yardsticks, rough order of magnitude ( , dollars/l b.)

9 , price/horse power), to a propose d price to highlig ht inconsistencies that would warrant further review; co mparing propose d prices with co mpetitive price lists, published marke t prices of commodities; or co mparing propose d prices with co st esti mates prepared by NYCEDC employees, or outsi de vendors charged with co st estimating 4. Responsiveness A responsive bid or proposal is one that co mplie s with all material terms and conditions of the so licitation and all material requirements of the specifications. Factors affecti ng the responsiveness of bids or proposals may include: Complia nce with all material requirements of the specification; Complia nce with all material terms and conditions of the so licitation; Submission of bids or proposals in the form specified in the solicitation including all required signatures, in ink, and including all required pricing information; If bid or proposal price has been materially altered, alterations must be initialed in ink by the bidder or proposer.

10 If the alternation has not been initialed in ink, and ca n be se vered from the other items in the bid or proposal, then that partic ular it em only may be co nsidered non-resp onsive; Submission of bids or proposals by the time and date and at the place specified in the so licitation except that a late proposal may be accepted so long as all late proposals are allo wed; Submission of bid, performance or payments se cu rity, if required by the so licitation. Submission of samples, literature, or other information, if required by the so licitation; Submission of all required disclosu re statements; and Attendance at a mandatory pre-bid or pre-proposal conference or site visit Bids or proposals that fail to confirm with the standards se t forth above may be rejected, at NYCEDC s sole discretion.