Document 215220

4/16/2012
MRSC PRESENTS
A Play in Four Acts
How to Outwit Your
Auditor!
Or: Buying Materials, Supplies,
d Equipment
E i
t in
i Compliance
C
li
and
with RCWs and WACs
1
Playwright
John W.
Carpita PE
Carpita,
Public Works
Consultant
MRSC
(206) 625-1300
[email protected]
2
Starring
Toni Nelson
Director of
Professional Services
Vision PS
(509) 315-8845 , Ext.210
[email protected]
2
1
4/16/2012
It was a Dark and Stormy Day …
(So what else is there in a Western Washington winter?)
A sudden screech of tires on the wet
pavement outside her tiny office startled
Fran out of her reverie? Could this be …
the Auditor?
The door creaked open.
Sam Jones,, her old
p
nemesis, handed her his card, cackled
evilly and said; “Well, shall we see how you
did this year in buying shop supplies?”
3
A Disclaimer
Before we get any deeper into the plot,
please understand that MRSC has an
excellent working relationship with the
State Auditor Office (SAO) and that
this presentation is theatrical and not
intended to criticize the SAO in any
way.
(MRSC), the SAO
SAO, and you,
way We (MRSC)
you as
a local government agency, have a
common goal of spending public funds
properly.
4
2
4/16/2012
Act One
Playbill
Scene 1: Purchasing and Bidding Goals
 Scene 2: Categories
 Scene 3: Purchasing Bid Limits
 Scene 4: Advertising and Bidding Requirements

Act Two
Scene 1: Vendor Lists (Informal Competition)
 Scene 2: Uniform Exemptions
 Scene 3: Technology
Purchases
y Equipment
p

Act Three
Scene 1: Piggybacking
 Scene 2: Equipment Purchases

5
Act 1, Scene 1
Purchasing and Bidding Goals
6
3
4/16/2012
Paralyzed by fear, Fran
gasped. It had taken her
forever to recover from
the audit findings last
year. “I don’t think
there are any skeletons
in the closet this year,
but ….
What if he finds some
more things!”
She quickly ran through
her mental list of
excuses and looked
longingly at the back
door: her escape route.
7
Setting Your Agency up
for a Audit Finding
Public Policy

Public
P
bl funds
f d must b
be
spent





carefully
with propriety
in accordance with the
law
Fair and Open
competition
Accounting Principles

BARS Manuals
Expediency
VS.






Need
N
d it
i now!!
Short staffed
Buy only from local
businesses
We know that ABC Co. has
the best price, so why
bid?
Do we really have to bid
this? It’s time consuming!
Buy now, document later!
8
4
4/16/2012
Purchasing and Bidding Goals





Procurement system established by
policy and/or ordinance.
ordinance
Uniform throughout the local agency
Concern for ethical appearance
Public advertising requirements met
P bli bid opening
p nin requirements
i m nts m
Public
mett
9
PURCHASING, BIDDING, AND
CONTRACT MANAGEMENT
SOURCEBOOK
http://mrsc.org/subjects/pubworks/sourcebook/sourcebookto
c.aspx



10
5
4/16/2012
More Purchasing and Bidding
Goals

Public works bid law compliance



all departments,
departments not just public works
Recognition of “bid limits” for your
agency’s type/size.
Acknowledge general principles of



minimal competition
for small purchases/contracts
p
p
informal competition for larger
purchases/contracts
formal competition for purchases/contracts over
“bid limits”
11
Rock and Roll Moment
Finally, your facility manager is installing your agency’s new
telephone system. He gave you the impression that all he needed
to do was “buy the equipment and plug it in”. However, you notice
holes cut in the walls and a sign on the only restroom on your
fl
floor
th
thatt it will
ill b
be closed
l s d and
nd converted
n
t d tto a ttelephone
l ph n
equipment room. Do you take early retirement or ask questions?
If you opt to ask questions, what
are some of those that come to
mind?
12
6
4/16/2012
It was only after the Daily
Bugle ran a story on last
year’ss audit findings that
year
Fran had convinced the
Mayor and Council that the
city needed a set of
uniform purchasing policies.
Even then, it seems,
getting the shop guys and
parks department to follow
the policies is a thankless
task.
13
Act 1, Scene 2
Categories
14
7
4/16/2012
Basic Definitions

Local government purchases are
generally categorized as:
 Equipment,
Materials and Supplies (goods)
 Public Works
 Services
 Purchased
Services
Services
 Non A/E Professional Services
 A/E Professional Services Under Chapter 39.80
RCW
 Personal
15
Basic Definitions

Equipment, Material and Supply Purchases

Supplies, materials, and equipment that are for
general government purposes and will not be used to
accomplish a specific public works project.

Equipment rentals and leases with or without option
to purchase.

Equipment rentals with operator included may
require prevailing wages.
16
8
4/16/2012
RFQs and RFBs

Request for Quotes (RFQ)



Informal request for prices of purchased
services,
equipment,
i
i
t materials,
t i l and
d supplies
li or of
f
a public works project
Contract normally awarded to firm with lowest
responsible quote
Request for Bids


Formal (openly advertised) request for prices of
services equipment
purchased services,
equipment, materials
materials, and
supplies or of a public works project
Contract normally awarded to lowest responsible
bidder
17
Act 1, Scene 3
Purchasing Bid Limits
18
9
4/16/2012
How does he do that? Sam zeroed in on
the backhoe purchase file! I told those
PW guys, and the Mayor too that we
needed to bid that out . So what if the
Mayor’s brother-in-law gave us a $4,000
discount.
19
To Bid …
or Not to Bid.
That
h is the
h Q
Question.
20
10
4/16/2012
Why Bid Laws?

Bid laws were established to
 prevent
fraud, collusion
collusion, favoritism
favoritism, or
fraud
improvidence in the awarding of public
contracts
 enable local governments to obtain the best
work or supplies at the most reasonable
prices
 provide a fair forum for bidders
21
Equipment, Material and Supply
Purchases - Bid Limits
Below a certain minimum dollar amount
((“bid
bid limit”
limit or threshold)
threshold), purchases of
supplies, materials, and equipment are
subject only to agency policies.
 Above this bid limits, agencies must either
use a “vendor list” (informal competition)
procedure under RCW 39.04.190 or seek
open, competitive bids.
 Bid limits/thresholds are set by statutes
for each type and class of municipal
government (most of them, anyway)

22
11
4/16/2012
Purchase of Equipment, Supplies, Services, or Materials Unrelated to a Public
Works Project
Quotes
Allowed
Cities and Towns
First Class City Over 150,000
First Class City Under 150,000
Code City Over 20,000
Vendor List
Allowed (Note A)
Competitive
Bids Req'd
Purchasing policies are set by City Council.
Purchasing policies are set by City Council.
Purchasing policies are set by City Council.
Code City Under 20,000
2nd Class
C
C
City & Towns
< $7,500
< $7,500
$
< $15,000
< $15,000
$
> $15,000
> $15,000
$
Over 400 K w/ Purchasing Department
< $5,000
< $25,000
> $25,000
Under 400 Kw/ Purchasing Department
< $5,000
< $25,000
> $25,000
< $5,000
< $40,000
< $10,000
< $25,000
< $50,000
< $50,000
No bid limits.
> $25,000
> $50,000
> $50,000
Counties
Under 400 K w/o Purchasing Department
Water & Sewer Districts (Title 57 RCW)
Fire Districts (Title 52 RCW)
Port Districts (Title 53 RCW)
Public Utility Districts (Title 54 RCW)
Public Hospital Districts (Ch. 70.44 RCW)
Housing Authorities (Ch. 35.82 RCW)
School Districts (Title 28A.335.190 RCW)
Metropolitan Park Districts [Ch. 35.61 RCW]
See RCW 54.04.070
& 54.04.082
N/A
< $15,000
> $15,000
??
??
??
< $40,000
< $75,000
> $75,000
Except for book purchases.
< $40,000
< $50,000
> $50,000
Note A: See RCW 39.04.190.
23
Rock and Roll Moment
In Hoedown, a code city of 18,000, the Parks Superintendent wants to
buy a new Ford pickup for $14,500, not including sales tax or delivery
costs. Do you need to go out for bids or can you call your brother-in-law
who is the sales manager at the local dealership and get a quote? What
f this were a theodolite f
y Engineer?
g
for the City
would the answer be if
Need to call for bids in either
instance, as total cost (which
should include sales tax and
delivery costs) is over $7,500
limit for this class and size of
city. (Unless the city uses RCW
39.04.190 to set up a “vendor
vendor
list”.) It’s also not good form to
call your in-laws and the auditor
may question why you wanted a
Ford or Zeiss specifically.
24
12
4/16/2012
“Hey, you did it,” Sam
said. “You managed to
convince the shop guys
to bid out their water
meter boxes and lids
together in one bid.
And I like the way you
structured the quotes
for miscellaneous water
and sewer fittings.
g Now
we need to work on
those parks department
folks.”
25
Practical Tips for
Applying Purchasing Bid Limits
•Anticipated
Ant c pated Annual Total
otal Cost
•Multi Department Requirements
•Like Items
•meter boxes with lids
•Do not consider trade in value when applying
bid limits
26
13
4/16/2012
Anticipated Annual Total Cost
The parks department bought 300 sprinkler
heads, 250 in May, 50 in June and another 100
in July and August,
favorite
August all from their ‘favorite’
supplier.
At $15 apiece, each purchase is under the city’s
bid limit of $7,500 but the total is $10,500 for
the year
Possible Audit Finding?
Yes?
No?
27
Multi Department Requirements
Your county has seven departments, all of which do
their own purchasing, presumably in accordance with the
adopted purchasing polices. Over the course of a year,
purchases of a given widget by all departments exceed
$25,000, with no department exceeding the agency’s
bid limit of $5,000 for single purchases
Possible Audit Finding?
Yes?
No?
Mitigating Factors?
28
14
4/16/2012
Multi Department Requirements
The city parks and public works departments
both need chlorine. Singly, each department
buys $12,000
$12 000 each,
each which they do by soliciting
quotes from suppliers on the city’s vendor list.
The city’s bid limit is $15,000.
Possible Audit Finding?
Yes?
No?
Mitigating Factors?
29
Act 1, Scene 4
Advertisement and Bidding
Requirements
30
15
4/16/2012
Advertisement and Bidding
Requirements
Advertisement and bidding
requirements
by th
the ttype and
i
t vary b
d size
i
of agency.
 And also by type of procurement:

 Purchase
of goods, materials, etc.
 Public works contract
 Services
31
Bid Advertisements
Purchases and public works contracts
over an agency’s
’ bid limits
li it (whether
( h th
statutory or self-imposed) require that
requests for bids (RFBs) be
“advertised”, with a bid due date.
se, for how
 So, where do you advert
advertise,
long, and do you have to have a public
bid opening?

32
16
4/16/2012
Bid Advertisements - Purchases


Each type of agency has its own statutory
requirements for advertising and bid
openings for purchases.
EXAMPLES
First class and code cities over 20,000 have no
advertising requirement for purchases.
 Code cities under 20,000 must call for sealed
bids using
advertisement
g a formal
f
 Counties must advertise in the official
newspaper at least 13days before the bid
opening and publicly open and read the bids.

33
Bid Advertisements
Regardless of their statutory
requirements,
i
t all
ll agencies
i can (and
( d
should) should post RFQs and RFBs on
their websites and/or websites
considered as purchasing “portals”
ng ahead to Act 3, Scene 1,,
 Look
Looking
agencies should include language allowing
and encouraging piggybacking

34
17
4/16/2012
Act 2, Scene 1
Vendor Lists for Purchases
(Informal Competition)
35
Vendor List
 RCW
39.04.190 allows authorized local
governments to use a “vendor
vendor list
list” process
to purchase equipment, materials and
supplies that are not to be used in
connection with any public work or
improvement
 Municipalities are to establish vendor list
procedures by resolution that are uniform
for all departments
36
18
4/16/2012
Vendor List
A vendor list is an informal competitive
p
p
process used to secure telephone
or written
quotes (RFQs) instead of bids (RFBs).
 Agency must advertise at least twice a year in
a newspaper of general circulation that a
vendor list (or lists, if you want to keep
different vendor lists for different products)
p
exists.
 Most often, a single list, with categories is
used.

37
Vendor List
Whenever possible, at least three
quotations should be secured to ensure
a competitive process, with the contract
being awarded to the lowest responsible
bidder as defined in RCW 43.19.1911.
 Immediately after the award, all bid
quotations that you obtain must be
recorded and made open for public
inspection and be available to those who
inquire by telephone.

38
19
4/16/2012
RCW 43.19.1911 (9)
39
Vendor List
At least every two months, an agency
using
i vendor
d li
lists
t mustt h
have available
il bl tto
the public, a list of contracts awarded.
 The list must contain the name of the
vendor, the amount of the contract, a
br
ef description
descr pt on of items
tems purchased,
brief
and the date of the award.

40
20
4/16/2012
Vendor List

Can you add vendors to the list at any
g at the time of quotes?
q
time, including


YES, if the purpose is to increase competition.
What happens if you only have one vendor
for a given widget?
Find at least two more and add them the list!
 Don’t be afraid to use the yellow pages (paper
l
i )
or electronic).
 Or use a sole source procedure under RCW
39.04.280 if the purchase is truly unique.

41
Vendor List

What happens if you only get one quote
out of the five RFQs you sent out.
out
Find out why, if possible.
 If vendors did not have enough time,
extend the time (and don’t open existing
quote).
 If there are no other quotes to be had for
love or money, evaluate the single quote to
see if it is reasonable.
 Accept the single quote.

42
21
4/16/2012
Vendor List

Purchases below bid limit.
 Since
you have a vendor list already,
already you
can use the same process for purchases
under the bid limit also.
 But wait a minute, I’m supposed to get
three quotes to buy $200 of various office
supplies or a $30 shovel?? That’s asinine!!
 Yes, there is a lower limit below which it is
impractical to use a vendor list procedure.
 What that limit becomes is up to the
agency’s legislative body.
43
Act 2, Scene 2
Uniform Exemptions
44
22
4/16/2012
Uniform Exemptions




RCW 39.04.280 provides uniform exemptions to
p competitive
p
g requirements
q
municipal
bidding
when
awarding contracts for equipment, supplies and
material purchases and for public works projects.
Since 1998, exemptions have been uniform.
Statutes governing a specific type of municipality may
also include other exemptions from competitive
bidding requirements.
Thi RCW supplements
l
t and
dd
it other
th
This
does nott li
limit
powers of any municipality that provide exemptions
from competitive bidding requirements.
45
Uniform Exemptions

Competitive bidding procedures may be
waived by resolution of the governing body of
the municipality for:





Purchases that are clearly and legitimately limited
to a single (sole) source of supply
Purchases involving special facilities or market
conditions
Purchases in the event of emergency
Purchases of insurance or bonds
Public works contracts in the event of an
emergency
46
23
4/16/2012
Uniform Exemptions

Competitive bidding procedures may be
waived
the preceding
i d under
d th
di
circumstances by adopting either:
a
resolution at the time of contracting; or
 by written policies beforehand.

A resolution at the time of contracting
must state the factual basis for the
exception.
47
Uniform Exemptions

If written policies are used to waive
competitive
titi biddi
bidding requirements,
i
t th
the
contract and a factual basis for the
exception must be recorded and open to
public inspection immediately after a
contract is awarded under those
policies.
48
24
4/16/2012
Possible Sole Source
Purchase Rationales

Licenses, copyrighted, or patented product
p
or service that no other vendor provides.


Why is it mandatory to use this licensed or
patented product
Were efforts made to find other vendors
Existing City equipment, inventory, custombuilt information system, custom-built data
inventory system, or similar product or
programs
programs.
 Compatibility with existing goods, equipment
or services and there are no reasonable
alternatives or substitutes.

49
Sole Source Examples
Installation of water system security
equipment.
 Proprietary,
Proprietary customized software.
software
 Maintenance/repair of radio equipment
and repeater site.
 Official newspaper where there is only
one that meets statutory requirements.
 Water meters if only one dealer.
dealer
 Stun guns (tasers) where certification
is needed on a given brand.

50
25
4/16/2012
51
52
26
4/16/2012
Sam pulled out another
file and said; “Oh, I see
that your parks
maintenance supervisor
bought a mower at auction.
I bet there
there’ss a finding
lurking in this file.”
Then, he smiled. “Aha,
great documentation on
the need for the mower
and comparative prices. I
s you
u even
v n have
h v a memo
m m
see
from the Mayor
authorizing Joe to bid on
the mower and a not to
exceed limit for his
bidding. No finding here.”
53
Auctions

RCW 39.30.045:
 Any
y
municipality:
p
y
 May purchase any supplies, equipment, or
materials at auctions by:
 Any
federal, state, or local government
 Any private party
without public bidding if the items can be
obtained at a competitive price
 Preapproval of an upper bidding limit by the
Manager/Council/Commission is advisable

54
27
4/16/2012
Special Facilities or Market Conditions
Rationales/Samples
Really, really, really good deal that is
only
for a very short
l available
il bl f
h t time.
ti
 Very good price on an exceptional piece
of used equipment.

55
Emergencies

An emergency is defined, uniformly for
all classes and types of municipalities,
municipalities
as unforeseen circumstances beyond the
control of the municipality that either:
present a real, immediate threat to the
proper performance of essential functions
or
 will likely result in material loss or damage
to property, bodily injury, or loss of life if
immediate action is not taken

56
28
4/16/2012
Emergency Contracts

Council/Commission Action:
 If
the governing
vernin body
b dy elects tto waive
competitive bidding requirements in the
event of an emergency by the terms of
written policies adopted by the
municipality, immediately after the award
of any contract, the contract and the
f t lb
sis for
f the
th exception
ti must
st be
b
factual
basis
recorded and open to public inspection.
57
Emergency Contracts


When an emergency happens, the designated
emergency response person:
 may declare
d l
an emergency situation
it ti exists
i t
 waive competitive bidding requirements
 and award all necessary contracts on behalf of the
municipality to address the emergency situation
If a contract is awarded without competitive bidding
due to an emergency, a written finding of the
existence of an emergency must be made by the
governing body or its designee and duly entered of
record no later than two weeks following the award of
the contract.
58
29
4/16/2012
Act 2, Scene 3
Technology Purchases
59
Technology Equipment Purchases
RCW 39.04.270 authorizes local
governments to use a “competitive
g
p
negotiation” process as an alternative to
the competitive bid process when
purchasing telecommunications, data
processing (computer) equipment or
software.
 This process requires, at a minimum the
following steps:

60
30
4/16/2012
Technology Equipment Purchases
The agency must provide reasonable
procedures for technical evaluation of the
proposals, identification of qualified sources,
and the selection process for awarding the
contract.
 The award must be made to the qualified
bidder whose proposal is “most
most advantageous”
advantageous
to the agency and the agency may reject all
proposals for good cause and request new
proposals

61
62
31
4/16/2012
Act 3, Scene 1
Piggybacking
63
64
32
4/16/2012
Rock and Roll Moment
Your Facilities Manager just found this really great
deal on widgets
g
on the Bakersfield, California
purchasing Web site that will save the city $80,000
if they can ‘piggyback’ on the contract. What is this
guy thinking? We can’t do that! Or can we?
RCW 39.34.010
authorizes interlocal
agreements with public
agencies in any other
state. There are a few
hoops to jump through,
though.
65
Piggybacking Basics A
Under 39.34.030: Interlocal Cooperation Act,
public agencies
g
may
y exercise
two or more p
powers cooperatively, including purchasing.
 Each participating agency must have power to
do individually what they agree to do
cooperatively.
 Does not relieve any agency of other
statutory obligations with respect to bidding.
 A contract must be in compliance with the bid
limit parameters of each agency.

66
33
4/16/2012
Piggybacking Basics B
While desirable, an interlocal agreement does
not have to be in place prior to contract
award.
 A contract should be awarded with language
about probable use of an interlocal.
 Except that advertising/notice requirements
39 34 030 (5).
(5)
are met by RCW 39.34.030
 No statutes should prohibit the purchase

67
Statutory Piggybacking
RCW 39.34.030 (5) (adopted in 2004)

With respectt to
t one or more public
bli
agencies purchasing or otherwise
contracting through a bid, proposal, or
contract awarded by another public agency
or by a group of public agencies,

any statutory obligation to provide notice for
bids
bid or proposals
l that
h applies
li to the
h public
bli
agencies involved is satisfied if the public
agency or group of public agencies that
awarded the bid, proposal, or contract complied
with its own statutory requirements and either
68
34
4/16/2012
Statutory Piggybacking
 ((i))
p
posted the bid or solicitation notice
on a web site established and maintained
by a public agency, purchasing
cooperative, or similar service provider,
for purposes of posting public notice of
bid or proposal solicitations,
 or ii) provided an access link on the
state's web portal to the notice.
69
If You are the Host






Advertise in your official or legal newspaper, like you are
always required to do per your codes.
Be mindful of features that might limit shared use (local
preferences, WMBE, FTA, etc)
Document the advertising and posting in the Solicitation
and in the Contract to make it easy for others to find.
Perhaps include a signed certification.
Add language to allow ILA purchasing. There is standard
language, although many variations work.
Be thoughtful of documenting the purpose of multiple
award.
d
Someone wants to piggyback? Provide the RFP/ITB, Ad,
Website “certification,” Bid Tab and contract all in a
package.
70
35
4/16/2012
If You are the Host



If you want to make it possible for others to
piggyback,
piggyback it must be posted on a website.
website
Does it have to be on my website?
 No, many websites qualify.
 Ask any friendly local agency, school district,
city, county, DIS or cooperative website to
post.
 The law requires it be posted on a website
purpose
designed for that purpose.
 Keep a record of where it was posted.
Does simply advertising in the Daily Journal of
Commerce satisfy all advertising?

No
71
72
36
4/16/2012
When you are the piggybacker






Office of State Procurement (OSP) ILA just covers
OSP.
US Communities – register on-line. Sign US Communities
Participation Certificate
provided
f
d d by the
h vendor
d on
behalf of the host for each contract (or sign ILA with
the agency that hosts the bid/contract).
Evaluate each bid piggyback uniquely – use your checklist.
Obtain the ITB/RFP, Ad, Bid Tab, Web Site
“Certification,” Contract and keep for your files.
Evaluate for competitive bid rules (if you have sealed bid
requirements), WMBE, other legal prohibitions.
Terms and conditions can vary, as long as they don’t
violate a legal prohibition.
73
The Piggybacking Checklist
1.
2.
3.
4.
5.
6.
Do you each have authority to bid/contract?
Is it sponsored by a public or non-profit agency? City,
count, state, school district, port, non-profit (such as
p established for this
US Communities)) or Co-Op
purpose. Do your rules require a sealed bid process
for this purchase?
Was the bid conducted and awarded using consistent
to your codes and bid statutes?
Was the bid awarded consistent with the ITB
instructions? Proper award?
Do you have statutory restrictions do you have (do
you prohibit in law…..WMBE,
Preference, Equal
law WMBE Local Preference
Benefits, multiple awards?)
Advertising – does this bid comply with the new
approach – posted on web and host advertisement?
74
37
4/16/2012
Piggybacking - Advertising
Requirements
Host advertises according to host
requirements.
requirements
 Host posts on Web Site. Any website
sponsored by any public agency,
purchasing cooperative; or similar
service provider (E-bid, Builders
etc )
Exchange etc.)
 Brings bid compliant for Interlocal
Sharing.

75
Purchases through Interlocal Agreements
City Contract #: [Click here and type number]
Interlocal Agreement with (government agency or Purchasing Co-Op name): [Click here and type name]
Item Description: [Click here and type description]
 Do you have an Interlocal agreement signed with the Contract Agency?
If yes, where is it filed: ______

If no, get a mutually signed Agreement in place before you continue.

State
t OSP contract
t t you may skip
ki the
th remainder
i d off thi
this ttestt because
b
the
th OSP contracts
t t comply
l
 State OSP Contract #: ______ If a St
with remaining requirements and retain the documentation on hand for SAO to review in the OSP offices.
 Is this a technology contract?
If yes, do your own rules allow for technology contracts to be negotiated?

If your own rules allow for negotiated IT contracts, you can skip the test.

 Is this a services contract?
If yes, do your own rules allow services to be negotiated?

If your own rules allow for negotiated services, you can skip the remainder of the test.

 Are you using this as only one of multiple quotes, for a small purchase?
If yes, you can skip the remainder of the test. Your purchase will not mandate the sealed bid rules.

Ch kli t ffor R
Checklist
Required
i dC
Compliance
li
Does the host agency have a
requirement to run a newspaper
ad in their local paper and did
they comply
Did they list on a website? If
so, state when and the address.
Attach proof if possible.
Did the bid & award comply
with your codes?
Did bid avoid any preference
 Yes
 No
Federal and State contract rules usually don’t require a newspaper
ad. For others, attach the ad or place into the file
 Yes
 No
Always required. Indicate date, address and/or attach or place into
the file.
 Yes
 No
If the bid and award violate your own sealed bid laws, stop.
You can not use the bid.
 Yes
 No
76
38
4/16/2012
Who can we piggyback with?
Can my agency use Federal Contracts?
(GSA) [Only certain schedules]
Can my agency use State Contracts?
(OSP) [Yes]
Can my agency buy from US Communities
and similar purchasing co-ops?
[Yes, but remember that the co-op
must have bid in compliance with your
agency’s bidding parameters]
77
US Communities







Non-profit agency
All lead bid agencies
g
signed
g
a Master Agreement.
g
This is on the website.
All participating agencies then register which adds
your signature to the Master Agreement.
This forms the ILA.
All bids are posted on the US Communities website,
which is compliant to the new RCW. Lead agency also
p
y
y website.
posts on their own city/county
Individual bids are reviewed for competition,
advertising, web posting, award.
The Bid, results, ad and web posting should all be on
the US Communities website.
78
39
4/16/2012
Act 3, Scene 2
Innovative Ways to Buy “Stuff”
79
Equipment Purchases
Sometimes, an agency can’t afford new
vehicles
hi l and
d equipment.
i
t
 But most often, even the price of a used
vehicle or piece of equipment will
exceed the agency's bid limits.
 A special market condition may exist or
an item may be available at an auction.

80
40
4/16/2012
Used
Equipment
Matrix
Criteria
Model Year
Points
2005 or earlier
2006
2007
2008
2009
2010
2011
10
30
40
50
60
70
80
Over 1600
1200 ‐ 1600
800‐1200
0‐400
0
20
50
75
Open
Enclosed
25
50
0‐6000 #
6000 plus
25
50
0‐2 years
2‐4 years
4 plus year
20
50
75
Other Bids 3rd Low Bid 2nd Low bid
Lowest Bid
0
25
50
75
Hours
Cab
Capacity
Warranty
Price
81
The End!
There is a light at the end of
every tunnel.
Just hope it’s not a purchasing or
contracting “train wreck” coming at you!
82
41