SECTION 1: PURPOSE AND POLICY

Purpose.

The purpose of this purchasing policy is to provide a process to procure goods and services that insures fairness and accountability while affording the flexibility necessary to efficiently conduct the business affairs of FIRST 5 Santa Clara County.

Policy.

Pursuant to Health and Safety Code sections 130100 et. seq., FIRST 5 Santa Clara County Commission (“Commission”) has the power to employ personnel, contract for personnel, and enter into contracts necessary or appropriate to carry out the provisions of the California Children and Families Act (“Act”). No individual may contract on behalf of FIRST 5 unless he or she has been specifically delegated authority by this policy, state law, or other act of the Commission.

Grants and contracts must be consistent with the Commission’s Strategic Plan. All contracts will include this requirement and will be monitored to assure consistency with the Commission’s Strategic Plan.

SECTION 2: PURCHASE OF GOODS

The Executive Director, or the Chief Program Officer or Chief Financial Officer if designated, has the authority to purchase supplies, materials, equipment or other personal property (“Goods”) in support of the Commission’s goals and objectives, if the total amount for the same or similar Goods is less than $100,000 from the same vendor in the same fiscal year.

The purchase of Goods for $50,000 or less may be procured using an informal competitive selection process as described in Section 5.

The purchase of Goods over $50,000 requires an Invitation to Bid (ITB) as described in Section 8 or a similar process. Incremental contracting with the same vendor cannot be used to avoid the requirements of this policy.

SECTION 3: PURCHASE OF SERVICES

The Executive Director, or the Chief Program Officer or Chief Financial Officer if designated, has the authority to negotiate, execute and amend contracts in support of the Commission’s goals and objectives, if the total contract amount for the same or similar services is equal to or less than $100,000 from the same provider in the same fiscal year. The Executive Director submits a report to the Personnel and Finance Committee on a quarterly basis outlining all contracts signed under this delegation.

The purchase of services for $50,000 or less may be procured by using an informal competitive selection process as described in Section 5.

The purchase of services over $50,000 requires a Request for Proposals (RFP) or Request for Qualifications (RFQ) as described in Sections 6 and 7, unless the Selection Process Exceptions in Section 9 apply. Incremental contracting with the same provider cannot be used to avoid the requirements of this policy.

SECTION 4: INFORMAL SELECTION PROCESS

An Informal Selection Process involves documenting a price request from two or more vendors by phone, fax or e-mail and selecting the vendor that best fits FIRST 5’s needs, considering quality and price. An Informal Selection Process may be used only if the goods or services are clearly defined and a potential vendor can give an accurate price quotation.

An Informal Selection Process can be used to procure the same or similar Goods or services if the total purchase price does not exceed $50,000.

SECTION 5: REQUEST FOR PROPOSAL (RFP)

A Request for Proposal (RFP) is used to acquire services when FIRST 5’s requirements are not well defined. The applicant must submit a written proposal explaining how the applicant plans to meet FIRST 5’s requirements. Innovative ideas and techniques are encouraged. An RFP award is not based on the lowest price, but upon technical superiority of the proposal within a reasonable proximity to the other proposed prices. The initial contract term and provisions for allowable extensions will be specified in the RFP. After the initial term, FIRST 5 may extend or enter into a new contract with the same contractor for the same or similar services without conducting a new selection process, if the service delivery goals are being met. After the second term of the contract, FIRST 5 will evaluate the service delivery and determine whether to conduct a new selection process or if it is in FIRST 5’s best interest to continue the contract.

An RFP contains the following:

1. A clear and concise requirements statement describing the problem to be solved and what the applicant is expected to accomplish. The statement must include standards for quality and quantity, expected performance and time lines, eligibility requirements, staffing requirements, or financial requirements. The specifications statement shall provide an open competitive process to attract an optimum number of applicants.
2. An applicant’s responsibility criteria that may include references, financial statements, licenses, bonding and insurance.
3. Submission criteria that may include a calendar of key timeframes, instructions as to where and to whom proposals are submitted, price limitations and formatting requirements.
4. A review process and review criteria related to the specifications of the requirements statement. The RFP shall set forth the criteria and may include the weight each is given. There shall be a two-step process to evaluate proposals. The first step is to determine whether a proposal is responsive and from a responsible provider. The second step is to evaluate those responsive and responsible proposals based on criteria related to the requirements statement. Selection shall be based on the proposal most advantageous to FIRST 5 based on the findings from the two-step process.
5. Terms and conditions of the RFP process including, but not limited to FIRST 5’s right to reject all proposals, amend, or cancel the RFP at any time for any reason before the contract is executed, to accept all or a portion of any proposal, and to waive any minor irregularities or informalities in any proposal and to request clarification from any applicant. The terms and conditions may also include standard conditions of the proposed contract.
6. An Appeals process shall state that all appeals are final, specify the legal basis for the appeal (citing a violation of local, state or federal law, policy or procedure) and set forth the time, place and person with whom an appeal must be filed.

Proposals must be received as specified in the RFP. Late proposals cannot be accepted unless it is determined by the Executive Director that it is in the best interest of FIRST 5 or there are extenuating circumstances. Proposals are confidential until a contract is executed.

Members of the review panel are selected based on their qualifications and expertise and appointed by the Executive Director or his or her designee. All members of a review panel must sign a conflict of interest form. Review panel findings are confidential.

An applicant may not be involved in drafting the RFP. While specifications can be obtained from applicants, FIRST 5 is responsible for ensuring that those specifications are nonrestrictive to provide an equal basis for competition and participation for an optimum number of applicants.

An RFP may be amended if the change is in writing in the form of an Addendum to all applicants who received the original RFP and is advertised in a manner consistent with the original RFP.

SECTION 6: REQUEST FOR QUALIFICATIONS (RFQ)

A Request for Qualifications (RFQ) is used when FIRST 5 requires a consultant, contractor or service provider, and the service requirements are well defined. An RFQ does not require a review panel. The responses are not sealed. The Executive Director or his or her designee may evaluate the responses to the RFQ based on the paper submission and/or may conduct interviews. An RFQ award is not made based on the lowest cost, but upon the consultant, contractor or service provider who best fits the service requirements within a reasonable proximity to the other proposed costs. The initial contract term and provisions for allowable extensions will be specified in the RFQ. After the initial term, FIRST 5 may extend or enter into a new contract with the same consultant, contractor or service provider for the same or similar services without conducting a new selection process, if the consultant, contractor or service provider meets the service delivery goals. After the second term of the contract, FIRST 5 will evaluate the service delivery and determine whether to conduct a new selection process or if it is in FIRST 5’s best interest to continue the contract relationship.

SECTION 7: INVITATION TO BID (ITB)

An Invitation to Bid (ITB) is used to obtain clearly specified Goods in excess of $50,000.00 from a single vendor in the same fiscal year. The initial term and provisions for allowable extensions will be specified in the ITB. After the initial term, FIRST 5 may extend or enter into a new contract with the same vendor for the same or similar Goods without conducting a new selection process if the vendor is meeting the service delivery goals. After the second term of the contract, FIRST 5 will evaluate the service delivery and determine whether to conduct a new selection process or if it is in FIRST 5’s best interest to continue the contract.

An ITB contains the following:

1. Clear and concise specifications of the Goods sought, that are not too restrictive. For instance, if the specification requires “brand name or equal” the bidder offering “equal” must submit complete specifications and/or samplers with their bids. Determination of equity is in the sole discretion of FIRST 5.
2. The vendor’s responsibility criteria that may include references, plan capacity, credit data, financial statements, licenses, bonding and insurance.
3. Submission criteria that includes a calendar of key timeframes, instructions as to where and to whom bids are submitted, the number of bids to be submitted, cost/pricing instructions, signature requirements and contact information.
4. Terms and conditions that will be incorporated into the purchase order or contract including, but not limited to, FIRST 5’s right to reject all bids, amend, or cancel the ITB at any time for any reason before the contract is executed, to accept all or a portion of any bid, and to waive any minor irregularities or informalities in any bid and to request clarification from any bidder.

Bids are opened and evaluated in a two-step process by a selection panel appointed by the Executive Director or his or her designee.

First, the panel determines whether or not the bidder is responsible and responsive by considering factors regarding the applicant and the Goods described.

Those bids that are responsible and responsive evaluated based on the face value of the bid and related cost factors.

The panel awards the bid to the lowest responsible, responsive bidder that meets the ITB requirements.

SECTION 8: SELECTION PROCESS EXCEPTIONS

All Goods or services for more than $50,000 shall be procured by a competitive selection process unless the Commission or Executive Director determines one of the circumstances below is satisfied or when the Commission or the Executive Director determines that waiving the competitive selection process is in the best interest of FIRST 5. The selection process, exception, or waiver must be documented.

1. Sole Source. If the Goods or services are a sole source, a written justification is required. To determine whether or not the Goods or services are a sole source, the following factors must be considered:
• the uniqueness of a applicant/contractor’s capabilities of Goods offered to meet the needs of FIRST 5 as compared to other contractors,
• the prior experience of the proposed applicant/contractor is vital to the Goods or services,
• the facilities, staff or equipment the proposed applicant/contractor has that are specialized and vital to the services required,
• whether or not the contractor has a substantial investment that would be duplicated at the expense of FIRST 5 if another applicant/contractor provided services,
• the contractor’s ability to provide Goods or services in the required time frame,
• patent rights or copyrights or secret processes the contractor possesses, including compatibility with existing FIRST 5 Goods, and
• existing equipment maintenance programs or contracts,
• after solicitation of a number of sources, competition is determined to be inadequate,
• all local providers of a particular service will receive funding,
• the Commission is contemplating an effort that has not previously been done in the community and is therefore unable to either develop an RFP with sufficient specificity or to identify potential providers.
2. Emergency. When Goods or services are necessary to further the purpose of the Act or for the protection of FIRST 5 personnel or property and time is of the essence. The situation must meet the criteria specified in FIRST 5’s Emergency Fund Policy or have a direct impact on health and safety of children, prenatal through 5 years of age.
3. State or County Vendor. FIRST 5 may use a vendor under contract with the State or County without a competitive selection process if the State or County contract was procured by a competitive selection and the vendor accepts the same terms of the contract.
4. State or County Contract. FIRST 5 may contract with the State or County when the Commission or the Executive Director determines that it is in the best interest of FIRST 5.

SECTION 9: REAL ESTATE CONTRACTS/LEASES

The Commission, unless specifically delegated to a Committee or the Executive Director, has the authority to negotiate, execute and amend real estate contracts, leases or real estate license agreements on behalf of FIRST 5.