Wake County Procurement Policy X Countywide or Department: Division: Supersedes: Wake County Procurement Manual Effective Date: 12/1/2010 Authority: North Carolina General Statutes and the Wake County Board of Commissioners Originating Department: Finance I. Purpose: The purpose of this policy is to establish guidelines for all departments of Wake County when purchasing supplies, materials, apparatuses, equipment, services and entering into contractual agreements. II. Policy Statement: Wake County’s procurement practices are based on the principle of fair and open competition. The practice of favoritism, whether to the user, department, or a vendor, is not permissible. All persons involved in the procurement process have a responsibility to provide fiscal stewardship when expending County funds. The taxpayers entrust county government to expend money in an efficient and effective manner. The integrity of the procurement process must be maintained. Any request to deviate from the provisions of the policy must be submitted to the Purchasing Director and the Finance Director in writing for approval. Any approved exceptions will be documented in writing. Wake County’s procurement operations are governed by N.C.G.S. Chapter 143 (State Departments, Institutions and Commissions), N.C.G.S. Chapter 153A (Counties), N.C.G.S. Chapter 159 (Local Government Finance), cited authority, ordinances and/or resolutions approved by the Wake County Board of Commissioners and any other applicable local, state or federal law. In accordance with the County’s Ethics Policy, purchasing from or through employees of county government or through companies in which county employees have a financial interest, either directly or indirectly, are not permitted. The purchasing power of the County shall not be used for private advantage or gain. Public officials or employees are prohibited from obtaining a direct benefit from any contract in which they are involved on behalf of the public agency they serve. They are prohibited from influencing or attempting to influence award of contracts, soliciting or receiving gifts or rewards for recommending, and influencing or attempting to influence contract awards. A. Competition Public bidding promotes competition, reduces the risks of fraud, promotes fair play, and lowers costs; therefore competition should be attempted and obtained for any purchase where competition is available. North Carolina General Statutes requires bidding for materials, supplies, equipment; construction, renovation and repair contracts; and certain types of services (architectural, engineering, surveying, construction manager at risk and data processing/information technology related services). Wake County Policy requires competition beyond the requirements of NC General Statutes for other services. It is the 600-1
Transcript
Wake County Procurement Policy
X Countywide or Department: Division:
Supersedes: Wake County Procurement Manual Effective Date: 12/1/2010
Authority: North Carolina General Statutes and the Wake County Board of Commissioners
Originating Department: Finance
I. Purpose: The purpose of this policy is to establish guidelines for all departments of Wake
County when purchasing supplies, materials, apparatuses, equipment, services and entering into contractual agreements.
II. Policy Statement: Wake County’s procurement practices are based on the principle of fair
and open competition. The practice of favoritism, whether to the user, department, or a vendor, is not permissible. All persons involved in the procurement process have a responsibility to provide fiscal stewardship when expending County funds. The taxpayers entrust county government to expend money in an efficient and effective manner. The integrity of the procurement process must be maintained. Any request to deviate from the provisions of the policy must be submitted to the Purchasing Director and the Finance Director in writing for approval. Any approved exceptions will be documented in writing.
Wake County’s procurement operations are governed by N.C.G.S. Chapter 143 (State Departments, Institutions and Commissions), N.C.G.S. Chapter 153A (Counties), N.C.G.S. Chapter 159 (Local Government Finance), cited authority, ordinances and/or resolutions approved by the Wake County Board of Commissioners and any other applicable local, state or federal law.
In accordance with the County’s Ethics Policy, purchasing from or through employees of county government or through companies in which county employees have a financial interest, either directly or indirectly, are not permitted. The purchasing power of the County shall not be used for private advantage or gain.
Public officials or employees are prohibited from obtaining a direct benefit from any contract in which they are involved on behalf of the public agency they serve. They are prohibited from influencing or attempting to influence award of contracts, soliciting or receiving gifts or rewards for recommending, and influencing or attempting to influence contract awards.
A. Competition
Public bidding promotes competition, reduces the risks of fraud, promotes fair play, and lowers costs; therefore competition should be attempted and obtained for any purchase where competition is available. North Carolina General Statutes requires bidding for materials, supplies, equipment; construction, renovation and repair contracts; and certain types of services (architectural, engineering, surveying, construction manager at risk and data processing/information technology related services). Wake County Policy requires competition beyond the requirements of NC General Statutes for other services. It is the
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practice of Wake County to seek and obtain competitive proposals and offers from as many sources as practical, where such competition is available.
It is illegal to divide contracts for the purpose of evading the competitive bidding requirements (N.C.G.S. §143-133).
A waiver of competition may be granted for purchases between $5,000 and $30,000 in special situations, but must be approved by both the Purchasing Director and Finance Director.
A.1 Bidding
Bidding promotes competition. There are two types of bidding that the County regularly uses, formal and informal. The term “bid” usually implies a competitive situation to acquire commodities (goods, supplies, materials, equipment, etc) where the award decision is primarily based on cost. A “bid” may also be known or identified as a Request for Bid (RFB), Invitation to Bid (ITB) or Request for Quote (RFQ). Request for Information (RFI) documents are used as an information gathering process that may later serve as the basis for either an RFB or Request for Proposal (RFP) process. RFIs do not, as a rule, result in an award to a vendor.
Informal bidding is required when the estimated cost is $5,000 (County policy) or more, but less than $90,000 for materials, supplies and equipment; and $30,000 or more, but less than $500,000 for construction, renovation and repair contracts (N.C.G.S.§143-131). NC General Statutes and County policy require the following for informal bids:
o Written documentation to support the competitive process by contacting more than one vendor. Any verbal pricing or quotes from a vendor must be documented in writing.
o Subjected to competition every year
Formal bidding is required where the estimated cost for materials, supplies and equipment is $90,000 or more; and when the estimated cost for construction, renovation and repairs contracts is $500,000 or more (N.C.G.S. §143-129). NC General Statutes and County policy require the following for formal bids:
o Solicitation of sealed bids and legal advertisements. o Electronic advertisements authorized by the Wake County Board of
Commissioners (Board of Commissioners Meeting 11/21/2005). o All formal bids must be opened in public. Bids must be sealed and opening a
bid or package with knowledge that it contained a bid or disclosing the contents without the permission of the bidder prior to the time set for opening constitutes a Class 1 misdemeanor (N.C.G.S. §143-129(b)).
o A bidder may request permission to withdraw their bid after the bids are opened, without forfeiting their bid deposit, if they can produce credible evidence that the bid was based on a mistake containing a substantial, unintentional arithmetic error or unintentional omission of work. Withdrawal
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is not allowed due to errors in judgment. The request to withdraw must be made no later than 72 hours (excluding weekends & holidays) after the bid opening. A bidder that requests that their bid be withdrawn cannot participate in the contract, even if the project is rebid.
o Awards are to be made to the “lowest responsible, responsive bidder or bidders taking into consideration quality, performance and the time specified in the proposals for the performance of the contract” (N.C.G.S. §143-129(b)). In the event the lowest responsible bid exceeds the funds available for the project or purchase, negotiations may be held with the low bidder to make reasonable changes in the plans and specifications to bring the price within the funds available.
Construction, renovation and repair contracts are (1) A vertically constructed or erected building or facility for public use or for conducting the business of the citizenry; or (2) horizontal (surface or sub-surface) construction that are part of or done to support the construction of buildings or facilities; or (3) renovation and repair projects are those that affect or change either the (a) building structure or support, exterior or interior or (b) the building’s systems that make the building useful. o Three bids are required for formal construction, renovation and repair bids. If at
least three are not received, a second bidding process must be made. Bids may be opened on the second process regardless of the number of bids received (N.C.G.S. §143-132(a)).
o Formal construction, renovation and repair contracts must contain a bid deposit equal to, not less than, five percent of the bid amount. The deposit may only be in the following forms: cash, cashier’s check, certified check, or bid bond executed by a surety licensed in North Carolina (N.C.G.S. §143-129(b)).
o For contracts exceeding $30,000, a licensed contractor must be used. o Contracts resulting from formal bids for construction, renovation and repair
require the Board of Commissioners approval. o Minority & Women Owned Business Enterprises (MWBE) must be solicited for all
construction, renovation and repair contracts $30,000 and above (N.C.G.S. §143-131(b)).
o At the completion of a construction, renovation and repair project that has MWBE requirements, the department must submit a MWBE Reporting form to Procurement Services and Procurement Services will report MWBE information for each project to the North Carolina Office of Historically Underutilized Business (G.S. 143-128.3). o The information reported shall consist of: The verifiable percentage goal The type and total dollar value of the project Minority business utilization by minority business category Trade (the type of contractor, i.e., general contractor, plumbing, etc.) Total dollar value of contracts awarded to each minority group for each
project
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The applicable good faith effort guidelines or rules used to recruit minority business participation
Good faith documentation accepted by the county from the successful bidder
A.2 Services
The competition process may be informal or formal based on the dollar amount and project. It may be an RFP, simple written quotes, or other methods that accurately reflect the competition process. Award should be based on the best overall, justifiable solution, which may include cost and other factors. For contracts estimated to be $50,000 or more, Procurement Services should be contacted prior to initiation of the competition process to either manage the process or provide guidance.
o Departments are responsible for documenting the competition process for contracts less than $50,000. A bid summary, quotes, or summary of the competition process should be included with the contract when submitted to Procurement for processing.
According to general County policy, contracts for services will be subjected to competition every three years unless a business case justifies otherwise. Verbal quotes do not meet the competition requirement unless they are obtained every year.
A.3 Design/Consultant Selection Services
In certain cases, the County employs the services of an architect, engineer, surveyor, or construction manager at-risk to provide services on certain projects. Firms and/or individuals are to be selected based on “best qualified” criteria. The procurement of these services is defined by N.C.G.S. §143-64.31. Projects in which the estimated fees are less than $30,000, or other projects on a case-by-case basis, may be exempt from this requirement (N.C.G.S. §143-64.32). Resolution R-88-1 by the Board of Commissioners exempts the County from this selection process for projects where the estimated fees are less than $30,000, or on other particular projects as individually approved by the Board.
A.4 Request for Proposals (RFP)
The County uses RFPs as a competitive process or as an alternative to the standard bidding process. Typically, RFPs are used in situations where (1) detailed specifications cannot be or are difficult to develop; or (2) when obtaining a goal or providing a solution to a problem/issue is the main objective.
RFPs can be used in either a formal or informal process. N.C.G.S. §143-129.8 provides authority to use the RFP process as opposed to standard bidding for information technology goods and services. RFPs are advertised in the same manner as standard bids and the award approval is the same as standard bids, with the exception of RFPs
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for architectural services, engineering surveying and construction managers at-risk. These require additional advertisement, MWBE, and approval requirements. Departments should contact Procurement Services for assistance in determining if the RFP method is the appropriate vehicle for the given situation. Refer to the RFP Procedures Manual for more detailed information.
A.5 Exceptions to the bidding requirements There are exceptions to the bidding requirements that apply to purchase contracts. Contact Procurement services to determine whether or not your situation is applicable. The following are considered exceptions:
o Purchases from other governmental agencies (G.S. 143-129(e)(1)) o Competitive group purchasing (G.S. 143-129(e)(3)) o Gasoline, diesel fuel, alcohol fuel, motor oil, fuel oil or natural gas – informal
bids are required (G.S. 143-129(e)(6)) o Sole sources; requires Board of Commissioners approval and specific criteria
must be met (G.S. 143-129(e)(6)). o Information technology goods and services purchased through the state Office
of Information Technology (G.S. 143-129(e)(7)) or using RFPs (G.S. 143-129.8). o Purchase from State contracts o Used apparatus, supplies, materials or equipment; does not apply to
remanufactured, prefabricated or demo items (G.S. 143-129(e)(10)). o Piggybacking previously bid contracts; requires Board of Commissioners
approval and 10-day prior notice (G.S. 143-129(g)). o Purchases from nonprofit work centers for the blind and severely disabled
(G.S. 143-129.5). The following exceptions to the bidding requirements apply to purchase or construction, renovation and repair contracts:
o Special emergencies involving the health and safety of the people or their property (G.S. 143-129 (e)(2).
o Guaranteed energy savings contracts; requirements of G.S. 143-64.17 through 143-64.17G apply to these projects (G.S. 143-129(e)(8)).
o Solid Waste Management Facilities (G.S. 143-129.2). o Change order work (G.S. 143-129(e)(4)). o Construction management at risk projects; requirements of G.S. 143-128.1
apply to these projects (G.S. 143-129(e)(11)). o Force account work; where work must be performed by labor on the
permanent payroll, and does not exceed $125,000 for the total project cost including all direct and indirect costs of labor, materials, supplies, equipment; or the labor on the project does not exceed $50,000 (G.S. 143-135).
o Projects using unemployment-relief labor paid for in whole or part with state or federal funds (G.S. 143-129(d)).
o Contracts with NC Department of Transportation for street construction and repair (G.S. 136-41.3).
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B. Contracts
Contracts are to be used when the services or labor portion is the greater amount of the transaction and the amount paid to the vendor will exceed $5,000 with a business entity, corporation or governmental entity and $1,000 with an individual, including an individual engaging in a business or under an assumed name or Doing Business As. Services shall not begin until a fully-executed contract is in place. Any department not utilizing a County-approved template will need to have the contract reviewed and approved by the Procurement Office before agreeing, signing or processing it.
All written contracts authorized and executed on behalf of the County are required to be processed through the County contract control process.
Refer to the Wake County Contract Control Procedure for specific information related to contracts. Multi-year Contracts Multi-year contracts, as defined by this policy, require Board of Commissioners approval when the contract is more than 12 months in length and crosses county fiscal years requiring funding from subsequent county budgets. See examples listed below.
A contract runs from June – May (12 months) and the total for the entire contract is $60,000 ($5,000 per month). The current fiscal year funds $5,000 and the subsequent fiscal year funds $55,000. This contract does not require BOC approval because the term is not more than 12 months.
A contract runs from June – September (16 months) and the total for the entire contract is $80,000 ($5,000 per month). The current fiscal year funds $5,000 and the subsequent fiscal year funds $75,000. This contract requires BOC approval because the contract requires funding from more than one fiscal year and the term is more than 12 months.
A contract runs from April – June (15 months) and the total for the entire contract is $75,000 ($5,000 per month). The current fiscal year funds all of the $75,000. This contract does not require BOC approval because all of the funding comes from the current fiscal year, not requiring funding in subsequent fiscal years.
B.1 Required Contract Elements Contracts should define who, what, where, when, why, how much, and what happens if either party defaults. All County contracts are required, at a minimum, to address the following: Scope of Services This section provides a detailed description of the services that will be provided by the vendor.
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Term (length of time)
This section specifies both beginning and ending dates or a project start and completion schedule.
Maximum Amount Payable
This section specifies the amount that the contract payments cannot exceed. Uncertainty as to the amount of the final obligation under a contract does not excuse the contract from containing a maximum amount payable. The only exceptions to this requirement are:
(1) Purchase of Service contracts processed by the Local Management Entity (2) Shelter Plus Care Program contracts, and (3) Construction in Progress (CIP) related projects that include construction, renovation, repair, architectural and engineering services. Relationship of Parties
This clause clarifies the nature of the relationship between Wake County and the vendor. This clause confirms that the contract does not and should not be deemed to create a partnership or joint venture.
Cancellation This clause gives both parties the right to terminate the contract upon the occurrence of specified conditions or events.
Indemnification
This clause protects the County from any legal issues related to the vendor performing the contract.
Non-assignment
This clause prohibits the assignment of specific rights or of the entire contract to another party without the consent of the County.
Governing Law
This clause specifies that any dispute resulting from the contract shall be determined in accordance with the laws of North Carolina.
Insurance
In order to controls risks arising from the activities resulting from a business contract, the County requires all contractors have the following insurance (exceptions may be granted on a case-by-case basis):
Professional Liability Insurance - $1,000,000 per occurrence and $2,000,000 aggregate.
Workers’ Compensation Insurance with limits for Coverage A Statutory – State of North Carolina and Coverage B Employers Liability
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$5,000,000 each accident and policy limit and disease each employee. (Waived if vendor employs less than three employees).
Commercial General Liability – combined single limits of $1,000,000 per occurrence and $2,000,000 aggregate.
Commercial Automobile Liability with limits of no less than $250,000 per person, $500,000 per occurrence bodily injury and $100,000 property damage.
Personal Automobile Liability – proof of insurance is required
Insurance requirements for landlords housing Wake County clients in the Shelter Plus Care Program are waived.
Contractors show proof of these forms of insurance by providing a Certificate of Insurance. All certificates of Insurance shall be signed by a licensed North Carolina agent and list Wake County as a certificate holder. Pre-audit Certification Contracts and purchases of goods and services create obligations of the County. North Carolina General Statutes require that if an obligation is evidenced by a contract or agreement requiring the payment of money or by purchase order for supplies and materials, the contract, agreement or purchase order shall include on its face a certificate stating that the instrument has been pre-audited to ensure compliance (N.C.G.S. §159-28(a)).
There are some types of contract provisions that are prohibited or disfavored. Please consult with Procurement Services if there is a question.
B.2 Signature Authority The authority to enter into contracts is assigned to the Board of Commissioners consistent with N.C.G.S. §153A-13. In certain cases, the Board of Commissioners has delegated this authority to the County Manager or Designee. Contracts not included below must be approved by the Board of Commissioners prior to routing through the contract control process. Refer to Appendix D for specific information related to signature authority.
County Manager: The County Manager has the authority to sign the following types of contracts as authorized by Section 11 of the Wake County Budget Ordinance:
o Construction or repair projects that do not require formal competitive bid procedures.
o Purchases of apparatus, supplies and materials or equipment which are within budgeted appropriations.
o Leases of personal property for duration of one year or less and within departmental appropriations.
o Lease of personal property for more than 12 months if the annual expense is less than $50,000.
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o Service contracts within appropriations or contracts for 12 months or less. o Grant agreements to or from governmental units and other public, private
or non-profit organizations that are within budgeted appropriations, unless a grantor requires approval and execution by the Board of Commissioners.
o Contracts as the lessor or lessee of buildings, land, equipment, vehicles, heavy equipment and other property provided that such leases are one year in duration or less and that funds are within budgeted appropriations.
o Approve all change orders and amendments to contract previously approved by the Board of Commissioners, within appropriations.
Department Head: Department Heads must sign all contracts, regardless of the amount, duration or type of service. If the contract amount exceeds $50,000, a second signature line for the County Manager or Designee must be on the contract. Department Heads are also authorized to approve amendments to contracts previously approved by the County Manager or Board of Commissioners. Department Heads cannot delegate their signature authority.
B.3 Other Contract Types and Requirements
Interlocal Agreements
Interlocal agreements are joint efforts with other governmental units that are intended to address only complicated or lasting joint relationships or joint endeavors, such as joint funding, development and/or operation of a program of facility (N.C.G.S. §160A-461). They require Board of Commissioners approval prior to execution.
These agreements must contain the following elements as set forth in N.C.G.S §160A-464:
o The purpose or purposed of the contract or agreement; o The duration of the agreement; o If a joint agency is established, its composition, organization, and
nature, together with the powers conferred on it; o The manner of appointing the personnel necessary to the execution
of the undertaking; o The method of financing the undertaking, including the
apportionment of costs and revenues; o The formula for ownership of real property involved in the
undertaking, and procedures for the disposition of such property when the contract or agreement expires or is terminated;
o Methods for amending the contract or agreement; o Methods for terminating the contract or agreement; o Any other necessary or proper matter.
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Leases Real Property
Lease agreements or formal contracts are not required for rental of space when the duration is brief (e.g. fourteen days or less) and no property rights are conveyed.
The County enters into leases of real property under two circumstances: (1) As Lessee (tenant), when the County occupies leased space in order to
conduct County programs or to deliver County services, and a. Leases with duration of one year or less: GSA must develop and
process the lease. The GSA Director can approve these leases which have a term of one year or less, and involve annual lease costs of less than $50,000 (if annual cost is $50,000 or more, the County Manager must approve).
b. Leases with duration of more than one year: FD&C must develop and process the lease. The Board of Commissioners must approve all leases for a term greater than one year.
(2) As Lessor (landlord), to authorize a third party to occupy County-owned property, such as when leasing space in County office buildings.
a. Leases with duration of one year or less: GSA must develop and process the lease. Annual lease costs of less than $50,000 may be authorized by GSA Director; if annual cost is greater than $50,000, it requires County Manager approval.
b. Leases with duration of more than one year: FD&C must develop and process the lease. The Board of Commissioners must approve these leases with the exception of leases in the Wake County Office Building, these may be approved by the County Manager (1979 Session Laws, Chapter 275).
Personal Property Lease agreements or formal contracts are not required for rental of equipment when the duration is brief and no property rights are conveyed.
When an equipment lease agreement is necessary, then the following signature authority applies: o Department Heads can approve equipment leases that are less than one year
and not more than $50,000. o The County Manager must approve equipment leases, including lease
purchase agreements that are 1) more than $50,000 and 2) more than one year’s duration and involving less than $50,000 per fiscal year.
o The Board of Commissioners must approve equipment leases, including lease purchase agreements that are more than one year’s duration and more than $50,000 per fiscal year.
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Capital Leases A capital lease is required when substantially all of the risk and benefits of ownership are assumed by the lessee. A lease must be capitalized if any one of the following four criteria exists:
(1) The lease transfers ownership of the property to the lessee by the end of the lease term;
(2) The lease contains a (bargain) purchase option; (3) The lease term is equal to 75 percent or more of the estimated
economic life of the lease property; or (4) The present value of the minimum lease payments at the inception of
the lease, excluding executor costs, equals at least 90 percent of the fair value of the leased property.
A purchase option exists when the lessee can exercise the option to purchase the property sometime during the term of the lease at an amount substantially less than the estimated fair value of the property. A “lease-purchase” transaction must follow the same bidding process as a straight purchase, if the purchase option may be exercised during the first sixty (60) months.
Memorandum of Understanding A Memorandum of Understanding (MOU) can be used to set forth the basic principles and guidelines under which the parties will work together to accomplish their mutual goals. It is considered a preliminary document to a contract; a contract should follow detailing the responsibilities of each party. MOUs must (1) identify the contracting parties, (2) spell out the subject matter of the agreement and its objectives (the contract should provide more detail) (3) establish the terms of the agreement and (4) must be signed by the contracting parties. All MOUs must be processed through contract control, with a few exceptions that will be documented in writing by the Procurement Office.
Real Estate Approval by the Board of Commissioners is required for all real estate transactions except re-combinations of County-owned land. These transactions must be presented to the Board at a public meeting for approval. The County Manager or designee has the authority to approve all NC Department of Transportation encroachment agreements for construction projects (Board of Commissioners resolution 5/7/2001).
C. Purchasing Methods
Wake County has three preferred methods of performing transactions with vendors. C.1 Purchase Orders
Purchase orders should be used to obtain equipment, materials and supplies when the cost of the product is the greater amount of the transaction and the total expenditure will exceed $2,500. Refer to the Wake County Purchase Orders Procedure for specific information related to purchase orders.
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C.2 Procurement Card Purchases Refer to the Wake County Procurement Card Policy and Procedures for specific information related to procurement card purchases.
C.3 Contracts Contracts are required when services or labor is the greater amount of the transaction and the total expenditure will exceed $5,000 with a business entity, corporation or governmental entity and $1,000 with an individual, including an individual engaging in a business or under an assumed name or Doing Business As. Refer to the Wake County Contract Control Procedures for specific information related to contracts.
Open accounts (charge accounts) are discouraged and may be closed at the discretion of Procurement Services or the Finance Director. No vendor-specific or vendor-issued charge cards are authorized.
D. Types of Purchases
The following types of purchases have specific criteria that should be applied before purchasing. D.1 Corporate Commodity Purchasing Procurement decisions may be based on corporate philosophy. In those cases, purchase requests may be referred to departments/divisions outside of Procurement for review and approval. The final decision may be based on existing infrastructure and the entity’s capability to support certain product lines. For these reasons, certain equipment requests must be reviewed and approved by other departments/divisions to ensure these goals and strategies are met.
The following departments/divisions review and approve, and, in certain cases, initiate the request for the commodities listed below. The list also applies to purchases, leases, and / or rentals obtained through purchase orders or contracts.
Commodity Department
Computer Equipment & Software Information Services
Vehicles GSA Fleet Operations
Copiers GSA Central Services/ Reprographics
Operator Driven Equipment GSA Safety Officer (i.e. Backhoe, forklift, bulldozer, etc. - not regular vehicles/trucks)
D.2 Food Purchases Refer to the Wake County Food Policy and Food Procedure for specific information related to food purchases.
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D.3 Uniforms and Clothing Purchases Refer to the Wake County Uniform and Clothing Policy for specific information related to these purchases. D.4 Vehicle Purchases The purchase of vehicles will be handled by Procurement Services in conjunction with Wake County General Services Fleet Operations. Vehicles will be purchased from North Carolina State Contracts, Wake County-established contracts, or by bid. Fleet Operations will be responsible for title work on all vehicles. Replacement vehicles will be purchased in accordance with Fleet Operations replacement policy.
E. Sale or Disposal of Wake County Property
E.1 Surplus Property Surplus property covers any property, real or personal, that the County no longer has a use or intended purpose for or has passed its useful life. Wake County must dispose of surplus property in accordance with the rules of the State Surplus Property agency, Wake County Surplus Property procedure, and North Carolina General Statutes (G.S. 160A) set therein. The donation of real and personal property requires the approval of the Board of Commissioners. Refer to the Wake County Surplus Property Procedure for related instructions.
E.2 Real Property
Real property valued at any dollar amount must be approved by the Board of Commissioners and disposed of via a competitive process.
E.3 Personal Property (Equipment, Vehicles, etc.)
Personal property the County no longer needs may be disposed of through the North Carolina Department of Administration (NCDOA), Division of Surplus Property. For items not disposed of through the NCDOA, the disposal process must follow the approvals outlined below. The NCDOA disposal method is coordinated through the Wake County General Services Central Services Division. The following guidelines specify signature authority for personal property purchases:
Salvage Value Approval Required
Vehicles valued at $4,999 or less Department Head, Fleet Director and Finance Director
Vehicles valued at $5,000 and greater Department Head, Fleet Director, Finance Director and County Manager
All other assets valued at $4,999 or less Department Head and Finance Director
Assets valued at $5,000 to $29,999 Department Head, Finance Director and County Manager
Assets valued at $30,000 and greater Department Head, Finance Director, County Manager and Board of Commissioners
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Personal property valued at greater than $30,000 must be disposed of by a competitive process (i.e., public auction, sealed bid, or upset bid).
The declaration of vehicles and personal property as surplus and its subsequent disposal is defined by N.C.G.S.§160A-233, 160A-271, 160A-277, and 160A-279 and Wake County Capital Assets Policy.
III. Definitions:
Construction, renovation and repair – a vertically constructed or erected building or facility for public use or for conducting the business of the citizenry; or horizontal (surface or subsurface) construction that is part of or done to support the construction of a public building or facility.
o Renovation and repair projects are those that affect or change either the building structure or support, exterior or interior, or building systems that render the building useful such as HVAC, electrical, plumbing, life safety and are an integral part of the building.
Contract (CT) – document used to obtain services when the obligation is greater than $5,000 with a business and $1,000 with an individual or DBA. The contract encumbers departmental funds to pay for the services.
Contract Control Process – the routing of a contract through the Finance department for review, approval and signatures.
Corporate Philosophy – the County standardization of purchasing to ensure a level of uniformity among commodities and services.
Design/Consultant – any individual, firm, partnership, corporation, association, or other legal entity permitted by law to practice architecture, engineering, surveying or general contracting and licensed by the State of North Carolina
DBA – Doing Business As
MWBE – Minority and Women Owned Business Enterprise
Personal Property – Equipment, materials, commodities, etc.
Purchase Order (PO) – a document that serves as a purchase contract between the county and a vendor to obtain goods when the aggregate amount is equal to or greater than $2,500. The purchase order encumbers departmental funds to pay for the purchase.
Real Property – Land and/or the buildings sitting thereon
Request for Proposal (RFP) – Soliciting solutions to a defined operational or functional need when objective bid specifications cannot be used, and/or to evaluate several solutions to remedy a problem and cost is not the only selection criteria to be used.
Signature Authority – Authority to execute or sign contracts
Upset Bid – a competitive situation where the highest bid is publicly known and others are allowed the opportunity to increase the bid at pre-determined increments within a given time frame.
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IV. Applicability: This policy applies to all persons transacting business on behalf of Wake County, its departments and employees.
V. Policy Responsibility and Management:
The Procurement Services Division within the Finance Department is responsible for policy development and implementation.
The Procurement Policy will be reviewed and updated by the Purchasing Director at the end of every fiscal year or other intervals as required.
New employees assigned purchasing responsibilities for their departments should review this policy and the applicable related procedures listed below, and training will be provided as needed by contacting Procurement Services.
Contact: Purchasing Director (919) 856-6153
Contact: Contracts Manager (919) 856-6327
VI. Related Policies, Procedures, and Publications: Wake County Bidding Procedures Wake County Capital Assets Policy Wake County Contract Control Procedures Wake County Architectural, Engineering, Surveying & Construction Manager at Risk
Selection Procedures Wake County Food Purchasing Policy
Wake County Food Purchasing Procedures Wake County Procurement Card Program Policy
Wake County Procurement Card Program Procedures Wake County Purchase Order Procedures
Wake County Request for Proposals Procedures Wake County Surplus Property Procedures
Wake County Uniform and Clothing Policy Wake County Year-End Financial Procedures
VII. Appendices: Appendix A - Dollar Thresholds Appendix B - Insurance
Appendix C – Contract approval Requirements VIII. History:
Effective Date Version Section(s) Revised Author
12/1/2010 1.1 New Format Melissa England
Appendix A
Dollar Thresholds in North Carolina Public Contracting Statues
Requirement Threshold Statute
Formal Bids Construction or repair contracts $500,000 and above
(estimated cost of contract) N.C.G.S §143-129
Purchase of apparatus, supplies, materials and equipment
$90,000 and above (estimated cost of contract)
N.C.G.S §143-129
Informal Bids Construction or repair contracts $30,000 to formal limit N.C.G.S §143-131
Purchase of apparatus, supplies, materials and equipment
$5,000 to formal limit N.C.G.S §143-131
Construction methods authorized for building projects Separate Prime Single Prime Dual Bidding Construction Management at Risk
Over $300,000 (estimated cost of project)
N.C.G.S §143-128
Minority-business enterprise requirements – Building Projects
Projects with state funding $100,000 or more N.C.G.S §143-128.2(a)
Locally funded projects $300,000 or more N.C.G.S §143-128.2(a)
Projects in the informal range $30,000 to $500,000 N.C.G.S §143-131(b)
Limit on us of own forces
Construction or repair projects Not to exceed $125,000 (total project) or $50,000 (labor only)
N.C.G.S §143-135
Bid bond or deposit
Construction or repair projects Formal bids (see above) N.C.G.S §143-129(c)
Purchase contracts Not Required
Performance/payment bonds
Construction or repair projects Projects over $300,000 for each contract over $50,000
N.C.G.S §143-129(c); N.C.G.S §44A-26
Purchase contracts Not Required
General Contractor’s License $30,000 and above N.C.G.S. §87-1
Use of registered architect or engineer required
Nonstructural work $300,000 and above N.C.G.S. §133-1.1(a)
Structural repair or new construction
$135,000 and above
Repair work affecting life safety systems
$100,000 and above
Selection of architect, engineer, surveyor, or construction manager at risk
“Best qualified” selection procedure
All contracts unless exempted N.C.G.S. §143-64.31
Exemption authorized Projects where estimated fee is less than $30,000 or other projects in sole discretion of BOC
(0) Limits = contract amt X 25 (not to exceed $500k)
NC. State Limits $500,000 Employers Liability
$100/300/100
OTHER SERVICE PROVIDERS
MAINTNANCE / REPAIR / AND CONSTRUCTIONS SERVICES
600-18
APPENDIX B
Contract Type Professional
Liability
General Liability Workers'
Compensation
Automobile
LiabilityTransportation Service ProvidersTowing Companies, Haulers (0) $1m/1m (8) NC. State Limits
$500,000 Employers Liability
$500/1m/500
Landlords (0) $1m/1m NC. State Limits $500,000 Employers Liability
(0)
Employment Agencies (9) (0) NC. State Limits $500,000 Employers Liability
(0)
Grant Recipients (0) (9) NC. State Limits $500,000 Employers Liability
$100/300/100 (7)
All Other Service Providers (0) (9) NC. State Limits $500,000 Employers Liability
$100/300/100 (7)
Contracts Under $5,000 (0) (9) NC. State Limits $500,000 Employers Liability
$100/300/100 (7)
* These Providers will require crime policies if their services include managing a client's personal funds.
(6) Not Required, $100,000 Recommended (7) These limits only required if vehicle is necessary to provide service
Any vendor employing 3 or more persons is subject to North Carolina Workers' Compensation laws. Vendors claiming exemption under this law may be asked to certify number of employees. Vendors located outside of North Carolina must show evidence that Workers' Compensation coverage will extend to any work performed in Noth Carolina.
All Contracts are examined by Risk Manager and are subject to requirement changes based on exposure as determined by the Risk Manager
(8) Higher Limits may be required based on exposure as determined by RM (9) Coverage based on exposure as determined by RM
SUPPLEMENTAL INFORMATION
Insurance policies, except Workers' Compensation and Professional Liability, shall be endorsed to show Wake County as additional insured as their interests may appear.
(5) In-Home Care and Individual not Subject to Worker's Compensation
FOOTNOTES FOR INSURANCE REQUIREMENTS (1) Supplemental Information Below (2) Maximum of $2,000,000 unless otherwise required by RM (3) Per Person/ Per Accident/ Property Damage (4) Per Occurrence / Aggregate
600-19
APPENDIX C CONTRACT APPROVAL REQUIREMENTS SUMMARY
CONTRACT TYPE CONTRACT AMOUNT APPROVAL REQUIRED SIGNATURE REQUIRED
Services <$50,000 Department Head Department Head
Services >$50,000+ Department Head County Attorney County Manager
Department Head County Manager
Construction <$50,000 Department Head Department Head
Construction $50,000 to the Formal Bid Limit
Department Head County Attorney County Manager
Department Head County Manager
Construction Requiring Formal Bids Department Head County Attorney County Manager Board of Commissioners
Department Head
Board of Commissioners
Intergovernmental ALL Department Head County Attorney County Manager Board of Commissioners
Department Head
Board of Commissioners
Real & Personal Property Leases
1
12 Months or less
<$50,000 Department Head GSA & FD&C
Department Head (GSA)
Real & Personal Property Leases
1
12 Months or less
>$50,000+ Department Head GSA & FD&C County Attorney County Manager Board of Commissioners
Department Head (GSA)
Board of Commissioners
Real & Personal Property Leases Multi-Year
ALL Department Head GSA & FD&C County Attorney County Manager Board of Commissioners
Department Head
Board of Commissioners
Grants 2 <$50,000 Department Head Department Head
Grants2 >$50,000+
Department Head County Attorney County Manager
Department Head County Manager
Real Estate Transactions ALL Department Head FD&C County Attorney County Manager Board of Commissioners
Department Head
Board of Commissioners
Roadway Encroachment Agreements
ALL Department Head FD&C County Attorney County Manager
Department Head County Manager
Amendments/Change Orders ALL Department Head Department Head
County Manager may sign the contract if the agenda item requests authority to execute the contract documents and the BOC approves the request. 1 For leases of one year or less, GSA must be contacted prior and will assist in obtaining needed space. GSA will
initiate the contract and has review/approval authority. For leases of greater than one year, FD&C must review and approve, along with GSA. 2 All Grants to the County (County as grantee) must be approved by the Board of Commissioners when received, in
the form of a budget amendment, unless approved in a department’s initial budget. Grant applications, however, need not have prior BOC approval unless the application requires the County to take some act or refrain from taking some act. 600-20
