Item 13: Procurement Overview — original pdf

Backup

Procurement Overview Presented by City of Austin Purchasing Office For Electric Utility Commission January 13, 2020 Item 13 I t e m 1 3 1 City of Austin Purchasing Office Corporate internal services organization supporting all City departments, including Austin Energy Responsible for procurement of non- construction goods and services “Government That Works for All” strategic outcome Procurement staff dedicated specifically to Austin Energy’s needs = 15 2 Procurement Purchasing, renting, leasing, or otherwise acquiring any supplies, services, or construction; and all functions that pertain to the acquisition, including description of requirements, selection, and solicitation of sources, preparation and award of contract, and all phases of contract administration. (National Institute of Government Procurement) * * Department responsibility * 3 Procurement Guidance Texas Local Government Code, Ch 252 City Charter Administrative Bulletins 03-01 and 84-07 Council Resolution 040610-02 Policies enacted by City Council Purchasing Office Policies and Procedures Other – industry best practices 4 Formal Solicitation Open Market Competition Invitation for Bid (IFB) Specific, price only Request For Proposal (RFP) City seeks a solution, evaluation based on price and other criteria Request For Qualification Statement (RFQS) Experience, credentials, work history 5 From Scope of Work to Contract* Month 1 Develop solicitation docs, advertise, Q&A, close Months 4-5 Negotiate contract Months 7-9 Dept submits draft SOW and requisition to Purchasing Office Months 2-3 Evaluation, recommendation Month 6 RCA review, Commission recommendation, Council approval, and contract definitized *General timeline for goods/services acquired through Request for Proposal. Current Solicitations Solicitation Packet Vendor Notification (Formal Solicitations) Posted to City of Austin website https://www.austintexas.gov/financeonlin e/account_services/solicitation/solicitatio ns.cfm Email notification • Vendor registered under applicable commodity codes • Vendor requested by user department Advertised in Austin American Statesman (statutory requirement) 7 Evaluation Based on contents of response Evaluation described in solicitation documents IFB – lowest responsive, responsible RFP – highest evaluated responsive, responsible RFQS – most qualified responsive, responsible 8 Evaluation (IFB) Single Award Award by line item Award by category 9 Evaluation (RFP, RFQS) Evaluation Rules Evaluators with expertise, no conflict of interest, power dynamics Briefing on rules and NDAs signed No discussion outside of meetings facilitated by procurement specialist Meeting & Documentation Notes of discussion recorded – includes strengths and weaknesses in each evaluation category with page numbers in proposal and reference to solicitation documents Evaluation Tool Formula – points allocated based on major, moderate, minor strengths and weaknesses in each evaluation category and points available 10 Local Preference Address verified using GIS search tool Austin Corporate City Limits (not city limits) Headquarters or branch (5 year minimum requirement for branch location) Based on information provided on Local Business Presence Identification Form 11 Local Preference IFB Award to local business if within 3% of lowest bid RFP Up to 10 points • Based on combination of prime and sub location • Points calculated based on dollar amount of work performed by local business 12 Competition Price (RFP) Lowest price receives 100% of points in price category Other respondents receive points based on relative distance from lowest price 13 Recommended Vendor Announced Online* Evaluation Matrix (RFP/RFQS) *Formal solicitations only 14 Bid Tabulation (IFB) Opportunity to Protest Before or after solicitation close Protest must be submitted within allowable time period Solicitation process is on hold Opportunity to Debrief After contract execution Contents of proposals and evaluation remain confidential until contract execution 15 Anti-Lobbying Ordinance City Code Chapter 2-7, Article 6 • Why? Maintain fair, equitable, competitive process • Applies to formal solicitations anticipated for City Council approval • Authorized Contact is identified in solicitation documents • Violation may result in disqualification, cancellation of solicitation, debarment PROHIBITED ACTIVITIES INCLUDE… Contact by City official or employee with respondent regarding response Provide substantive info about respondent or response to City official or employee Ask City official or employee to favor/oppose, recommend/not recommend, take action/refrain from taking action 16 No-Lobbying Report Online https://www.austintexas.gov/financeonline/account_services/solicitation/nolobby.cfm 17 Exemptions Allowable exemption categories include: • Sole Source • Professional Service • Protect Public Health and Safety of Residents Exemptions can be competitive • Formal Solicitation (Full Competition) – Request for Qualifications Statement Informal (Limited Competition) – short list • User department files a Certificate of Exemption. Purchasing Office reviews and affirms that the exemption falls under allowable category. Critical Business Need to protect the competitive interests of Austin Energy Critical Business Need declaration made by GM/DGM. 18 Cooperative Purchasing Leverage volume buying power of other governmental entities Use of cooperative approved by City Council EXAMPLE: State of Texas Department of Information Resources (DIR) for technology purchases 19 Recommendation for Council Action (RCA) • Posting Language execution…” • “Authorize award…” or “Authorize negotiation and • Amend or ratify • Vendor name, dollar amount, general purpose, # of contracts • “Or other qualified offerors” • Time period • Subcontracting opportunities – reviewed by SMBR Lead Department • Purchasing Office Client Department(s) • User department • Single department, multiple departments • All City departments 20 Recommendation for Council Action (RCA) Fiscal Note • Capital or Operating Budget Purchasing Language • Procurement method • If formal solicitation, link to solicitation documents • Exemption type (sole source, professional service, etc.) • Amendment • Cooperative o “Multiple vendors” or “multiple cooperative purchase programs” were reviewed. • Critical Business Need Prior Council Action For More Information —For amendments: date, item number, vote count —Agenda Office facilitates communications —If formal solicitation, name of Authorized Contact 21 Recommendation for Council Action (RCA) Council Committee, Boards and Commission Action • Date and summary of recommendation Additional Backup Information • Details of purchase – usually 2-3 paragraphs • If cooperative purchase, name of the cooperative Contract detail M/WBE Summary • Estimated spend for multi-term contracts • Breakdown of subcontracting provided if subcontractors proposed/if subcontracting goals identified by SMBR 22 Questions? 23