DISTRICT OF COLUMBIA
OFFICE OF THE CHIEF FINANCIAL OFFICER
OFFICE OF MANAGEMENT AND ADMINISTRATION
OFFICE OF CONTRACTS
POLICY AND PROCEDURES
MANUAL
EXECUTIVE SUMMARY
The Manual is divided into six sections as follows:
Section I - General Information
Section II - Procurement Principles and Requirements Section III - Authorities and Responsibilities
Section IV - Acquisition Planning
Section V - Contract Types and Procurement Methods Section VI - Contract Administration
Section I describes the statutory foundation of the OCFO and its overall mission. Section II describes the core principles applicable to OCFO acquisitions, including competition
requirements, LSDBE preferences, avoidance of conflicts of interest and special approval and documentation requirements. Section III explains the roles and responsibilities of the key participants in the acquisition process. Section IV describes how to effectively conduct
EXECUTIVE SUMMARY ... II
SECTION I ... 9
GENERAL INFORMATION ... 9
A. INTRODUCTION... 9
B. OCFO PROCUREMENT AUTHORITY ... 9
C. THE MISSION STATEMENT. ... 9
SECTION II………...………10
ACQUISITION PRINCIPLES AND REQUIREMENTS ... 10
A. CATEGORIES OF OCFO PROCUREMENT……….10
B. PURCHASING POLICY. ... 10
C. RATIFICATION OF UNAUTHORIZED COMMITMENTS……….11
D. THE PROCUREMENT AUTOMATED SUPPORT SYSTEM (PASS). ... 11
Overview ... 11
Acknowledgement by the Program Office/COTR ... 11
E. SPECIAL APPROVAL REQUIREMENTS ... 12
1. Information Technology. ... 12
2. Purchases Requiring City Council Approval. ... 12
F. BUSINESS RELATIONSHIP WITH CONTRACTORS ... 14
G. PREFERRED SOURCES. ... 14
H. CONFLICTS OF INTEREST AND ETHICS. ... 15
Personal Financial Conflicts of Interest. ... 15
Contracts With OCFO Personnel. ... 15
Gratuities ... 15
I. DETERMINATION AND FINDINGS ARE GOVERNED BY THE PPRA AND
EXECUTED IN ACCORDANCE WITH THE 27 DCMR § 1205. ... 16
J. SALES TAX. ... 16
K. PUBLIC ACCESS – FREEDOM OF INFORMATION ACT (FOIA). ... 16
L. CONTRACT FILE MANAGEMENT. 27 DCMR § 1204. ... 16
SECTION III ... 18
AUTHORITIES AND RESPONSIBILITIES ... 18
A. THE CHIEF FINANCIAL OFFICER (CFO). ... 18
1. THE CONTRACTING AUTHORITY OF THE CFO WAS ESTABLISHED BY CONGRESS IN THE 2005 DISTRICT OF COLUMBIA OMNIBUS AUTHORIZATION ACT (ACT), CODIFIED AT §1-204.26 OF THE DC CODE. ... 18
2. WITHIN THE OCFO, THE CFO DELEGATES CONTRACTING OFFICER AUTHORITY IN ACCORDANCE WITH 27 DCMR §§ 1003AND 1004. ... 18
B. PROFESSIONAL STAFF ROLES AND RESPONSIBILITIES ... 18
SECTION IV ... 20
ACQUISITION PLANNING ... 20
A. INITIATION OF AN ACQUISITION... 20
Initial Project Planning ... 20
Procurement Action Submission Form ... 21
Preparation of Attachments to the Procurement Action Submission Form ... 21
PREPARING REQUIREMENTS DOCUMENTS ... 21
1. General Guidelines... 22
2. Types of Work Statements. ... 22
B. MARKET RESEARCH AND IDENTIFICATION OF VENDORS ... 23
C. NON-COMPETITIVE PURCHASES. ... 24
D. ESTABLISH THE GOVERNMENT ESTIMATE. ... 24
When Required ... 24
How Prepared... 24
E. OBTAIN CERTIFICATION OF FUNDING...24
F. SOLICITATION DEVELOPMENT ... 25
G. PUBLICIZING THE OCFO'S REQUIREMENTS ... 26
SECTION V………...………25
CONTRACT TYPES AND PROCUREMENT METHODS ... 26
A. TYPES OF CONTRACTS ... 26
Fixed-Price Contracts ... 27
Firm Fixed-Price (FFP) Contract. ... 27
Fixed-Price Incentive (FPI)... 27
Fixed-Price With Price Re-determination ... 28
Cost Reimbursement Contracts... 28
Time And Materials Contracts (T&M)... 28
Labor Hour Contracts ... 29
Letter Contracts. ... 29
Indefinite Delivery Contracts... 29
Definite Quantity Contracts ... 30
Requirements Contracts. ... 30
Indefinite Delivery/Indefinite Quantity (ID/IQ) Contracts ... 30
a. Multi-Year Contracts. ... 30
b. Option Contracts. ... 31
SMALL PURCHASE PROCEDURES………..31
Step 1 – Initiation and Issuance of a Request for Quotations (RFQ)... 32
Step 2 - Selecting the Awardee ... 33
Step 3 – Preparation of the Award Recommendation ... 33
Step 4 – Requisitions and Purchase Orders ... 33
Step 5 – Blanket Purchase Agreements (BPA) ... 33
D. COMPETITIVE SEALED BIDDING. ... 34
1. Overview. ... 34
2. Step 1: The Program Office Prepares the Specifications. ... 35
Step 2: The Contract Specialist Prepares the IFB. ... 35
Step 4: Issuance of Public Notice and Distribution of the IFB ... 36
Step 5 (optional): Pre-bid Conference... 36
Step 6 (optional): Amendment of IFBs. ... 36
Step 7: Receipt of Bids ... 37
Step 8 (optional): Modification or Revision of Proposals ... 37
Step 9 (optional): Withdrawal or Modification of Bids ... 38
Step 11: Bid Opening. ... 38
Step 12: Determination of Bidder’s Responsiveness and Responsibility. ... 38
Step 13 (optional): Cancellation or Rejection of Bids... 38
Step 14: Contract Award... 39
Step 15 (optional): Mistakes in Bids After Award ... 39
E. THE COMPETITIVE SEALED PROPOSALS PROCESS (BEST VALUE). ... 40
F. REQUESTS FOR INFORMATION (RFI). ... 55
G. EXPERT AND CONSULTANT SERVICES. ... 55
H. EMERGENCY PROCUREMENTS. ... 56
1. IN ACCORDANCE WITH §312 OF THE PROCUREMENT PROCEDURES ACT (PPA), THE DIRECTOR OR HIS OR HER DESIGNEE MAY APPROVE A PROCUREMENT ON AN EMERGENCY BASIS WHICH DOES NOT OTHERWISE COMPLY WITH THE REQUIREMENTS OF THE PPA OR THE DCMR IF THE PROCUREMENT IS ESSENTIAL TO AN OCFO REQUIREMENT TO DEAL WITH AN EXISTING EMERGENCY CONDITION, AS DEFINED BELOW. ... 56
2. DEFINITION AN "EMERGENCY CONDITION" IS A SITUATION (SUCH AS A FLOOD, EPIDEMIC, RIOT, EQUIPMENT FAILURE, OR OTHER REASON SET FORTH IN A PROCLAMATION ISSUED BY THE MAYOR) WHICH CREATES AN IMMEDIATE THREAT TO ONE OR MORE OF THE FOLLOWING WHICH CANNOT BE MET THROUGH NORMAL PROCUREMENT METHODS (27 DCMR § 1710.2): ... 56
A. THE HEALTH OR SAFETY OF ANY PERSON; ... 56
B. THE PRESERVATION OR PROTECTION OF PROPERTY; OR ... 56
C. THE CONTINUATION OF NECESSARY GOVERNMENTAL FUNCTIONS. ... 56
4. DETERMINATION AND FINDINGS (D&F). 27 DCMR § 1711. THE CONTRACT MUST PREPARE A WRITTEN D&F FOR THE EMERGENCY
PROCUREMENT. EMERGENCY PROCUREMENTS INITIATED BASED ON AN ORAL APPROVAL MUST BE FOLLOWED BY A WRITTEN D&F APPROVED BY THE DIRECTOR OF THE OFFICE OF CONTRACTS WITHIN TWO (2) BUSINESS DAYS.. THE FACTUAL BASIS FOR THE D&F WILL BE PROVIDED BY THE PROGRAM OFFICE WHO IDENTIFIED THE EMERGENCY. THE CONTRACT
SPECIALIST MUST INCLUDE THE FOLLOWING INFORMATION IN THE D&F: .. 57
A. IDENTIFICATION OF THE AGENCY AND THAT THE DOCUMENT IS AN EMERGENCY PROCUREMENT D&F; ... 57
B. THE NATURE OR DESCRIPTION OF THE PROPOSED PROCUREMENT;... 57
C. A DESCRIPTION OF THE REQUIREMENT, INCLUDING THE ESTIMATED VALUE OR COST; ... 57
I. ISSUING TASK ORDERS UNDER MULTIPLE AWARD ID/IQ CONTRACTS. ... 58
J. PROTEST PROCEDURE... 60
SECTION VI ... 62
CONTRACT ADMINISTRATION ... 62
A. OVERVIEW OF CONTRACT ADMINISTRATION. ... 62
B. CONTRACT ADMINISTRATION RESPONSIBILITIES……….61
C. POST-AWARD ORIENTATION. 27 DCMR § 1211 ... 63
2. Roles and Responsibilities. ... 63
D. INVOICING AND PAYMENT. ... 64
1. Invoicing Procedures. ... 64
E. CONTRACT CHANGES. ... 66
1. Definitions:... 66
a. Bilateral Contract Modification: A contract modification that is signed by the contractor and the contracting officer. 27 DCMR § 3699.1. ... 66
b. Unilateral Modification: A contract modification that is signed only by the contracting officer. ... 66
4. Exercise Option Year Clause in Contracts. ... 68
4. Inspections of Supplies. ... 70
a. The Government’s Inspection Rights. ... 70
a. The Government’s Inspection Rights. ... 71
b. The Contractor’s Obligations. ... 72
Acceptance of Alternative Performance ... 72
Acceptance ... 72
G. CONTRACTOR PAST PERFORMANCE EVALUATION. ... 73
2. Roles and Responsibilities. ... 73
3. Contractor Suspension and Debarment... 74
H. CONTRACT TERMINATION. ... 79
1. Overview. ... 79
2. Terminations for Convenience... 79
3. Termination for Default. ... 80
J. CONTRACT CLOSEOUT. ... 85
Section I
GENERAL INFORMATION
A. INTRODUCTION.
The purpose of this manual is to describe and set forth the policies, procedures and objectives of the District of Columbia Office of the Chief Financial Officer (OCFO) pertaining to the acquisition of goods and services and to establish OCFO-wide standard acquisition principles. The Office of the Chief Financial Officer (OCFO) Office of Contracts may from time to time issue operational directives that will be consistent with the intent of this Manual and provide periodic updates.
B. OCFO PROCUREMENT AUTHORITY.
1. This manual is governed by District and Federal procurement and contract laws and regulations, specifically DC Code §§2-351.01, et seq. (the Procurement Practices Reform Act of 2010 (PPRA)) and the D.C. Municipal Regulations Chapter 27 (27 DCMR).
2. The District of Columbia Financial Responsibility and Management Assistance Act (“CFO Act”) of 1985 (Pub. L. 104-8) has independent procurement authority pursuant to the authority granted to the Chief Financial Officer by Section 424 of the District of Columbia Self –Government and
Governmental Reorganization Act of 1973 (Pub. L. 83-198), as amended by Section 302 of the CFO Act, and the Procurement Reform Act of 1996 (D.C. Law 11-259).
C. THE MISSION STATEMENT.
1. The Office of Contracts has established the following as its Mission Statement:
“TO PROMOTE THE TIMELY PURCHASE OF QUALITY GOODS AND SERVICES AT OPTIMUM VALUE WHILE MAINTAINING THE HIGHEST ETHICAL AND PROFESSIONAL STANDARDS.”
Section II
ACQUISITION PRINCIPLES AND REQUIREMENTS
A. CATEGORIES OF OCFO PROCUREMENTS
The OCFO’s procurement will generally fall into one of the following categories:
1. Professional Services. The OCFO may contract for accounting, legal, financial, management, economic, and other professional, expert, and/or consulting services to support the OCFO’s statutory mission. The OCFO may also from time to time contract for such services on behalf of District agencies when time or other circumstances make a procurement by an agency infeasible or a procurement by the OCFO preferable.
2. Other Services. The OCFO may contract for services in support of its day-to-day operational needs, such as facility maintenance services, IT support services, library and printing services, mail and messenger services, education and training services, temporary staff services, investigative services, banking services, data processing services, personnel services and administration, insurance, and other services needed to support the OCFO’s mission as needed.
3. Supplies. The OCFO may contract for supplies in support of its day-to-day operational needs, such as office supplies and equipment, motor vehicles, uniforms, books and references and security equipment.
B. PURCHASING POLICY.
1. General Policy on Competition.
a. The preferred method for awarding District contracts is by competitive sealed bidding (DC Code §2-354.02). The OCFO prefers competition among potential venders to ensure fair and reasonable prices and the best value for the OCFO. To obtain adequate competition, and to treat vendors fairly and consistently, the OCFO shall solicit and consider a sufficient number of offerors appropriate for the type and value of the particular procurement. As noted in the sections that follow, the competition requirements for small purchases differ from those required for large purchases.
2. Pursuant to the DC Code Section 2-359.07, the District of Columbia may debar or suspend contractors from consideration for award of contracts or subcontracts. This Excluded Parties List categorizes vendors that have been suspended or debarred by the Chief Procurement Officer. While they are debarred or suspended, the OCFO will not, award contracts to, renew, or otherwise extend contracts with, or consent to subcontracts with entities or individuals that appear on the Excluded Parties List. The List is available for review at:
http://ocp.dc.gov/DC/OCP/e-Library/e-Library+Documents/Excluded+Parties+List. OCFO contracting personnel should also consult the federal Excluded Parties List at: https://www.sam.gov/portal/public/SAM/.
practical for the Director of the Office of Contracts to delegate specific procurement responsibility to other OCFO employees.
4. This delegation shall be made in accordance with the PPRA, DCMR and other grants of procurement authority.
5. All OCFO employees are strictly prohibited from making any unauthorized obligation to procure goods or services. See Attachment 1, Procurement Authority in OCFO.
6. Employees who make commitments that do not comply with the Agency’s purchasing policies and procedures may be held personally liable for resolving any unauthorized commitments they make.
C. RATIFICATION OF UNAUTHORIZED COMMITMENTS: An unauthorized commitment is an agreement that is not binding solely because the Government representative who made it lacked the authority to enter into that agreement on behalf of the Government.
1. The CCO may approve the OCFO to make a payment for a value received under an unauthorized commitment upon receipt of written determination from the employee that obligated the OCFO without authorization. See Attachment 2 for ratification package templates and instructions.
2. In order for the CCO to approve payment, the written determination shall state that:
a. The OCFO has obtained a benefit from another party’s performance pursuant to the unauthorized obligation;
b. The price to be obligated for performance is fair and reasonable; and
c. Sufficient funds were available at the time of the unauthorized obligation and remain available.
D. THE PROCUREMENT AUTOMATED SUPPORT SYSTEM (PASS).
1. Overview. PASS is the District-wide Procurement System. PASS tracks a requisition from the moment the Requisition is entered into the system through award . Authorized users request goods or services directly in the system and may access the system at any time to obtain the status of their request. After the requisition is entered into PASS, they are then electronically routed for proper approvals.
2. Acknowledgement by the Program Office/COTR. PASS requires acknowledgement of the receipt
and acceptance of all goods and services purchased through the system. This function is performed by the Program Office/COTR that initiated the procurement. After the Program Office/COTR acknowledges receipt and acceptance, PASS routes the information electronically to Financial Operations so that the vendor can be paid. Vendors cannot be paid until the appropriate information is entered into PASS by the Program Office/COTR. Therefore, it is critical that acknowledgement of receipt and acceptance be made within 2 days of receipt of the goods or services, unless
3. OCFO Financial management and control order No.08-008 requires that certain documents be attached to the requisition and/or purchase order as it makes its way through the PASS and prior to final approval and transmission to the vendor for execution. See Attachment 3 for a copy of the order.
E. SPECIAL APPROVAL REQUIREMENTS. Some purchases have specific approval requirements that must be met due to District or OCFO policy. This section describes the types of purchases that require special approvals and the procedures for obtaining those approvals.
1. Information Technology.
a. All information technology procurements must comply with requirements set forth by the District’s Office of the Chief Technology Officer (OCTO).
b. Requisitions to procure information technology purchases must be sent to the OCFO’s Chief Information Officer (CIO) to ensure that the procurement complies with Agency and OCTO requirements for the procurement of information technology.
c. Requisitions to purchase information technology goods or services are automatically routed to the CIO and OCTO in PASS.
d. The CIO will review the requisition to ensure that it complies with Agency and OCTO requirements.
e. For procurements requiring OCTO approval, the CIO will forward the requisition to OCTO for review and approval.
f. The Designated Approving Official is responsible for obtaining CIO and OCTO approval for information technology procurements. All approvals must be obtained prior to submitting the requisition to the CPA for processing.
2. Purchases Requiring City Council Approval.
a. Prior to contract award, the DC City Council must review and approve any contract that exceeds $1 million dollars in the base year , or any multi-year contract funded with annual funds. (DC Code §1-204.51; §§2-352.02)
b. If City Council Approval is required, the Contract Specialist must forward the following information to the OCFO Office of the General Counsel for review:
i Transmittal Sheet (Attachment 4);
ii A copy of the contract;
iii Price Reasonableness D&F;
iv Contractor Responsibility D&F;
vi Contracting Officer Memorandum;
vii Certification Availability of Funds;
viii DOES Tax Document;
ix OTR Tax Document; and
x Results of review of Excluded Parties List; and
xi Subcontracting plan, if applicable.
c. Legal review of the contract package generally takes two (2) weeks.
d. Once the contract package has been approved by the Office of General Counsel, the Contract Specialist prepares the following documents, as appropriate, to be forwarded to the Front Office for review by the OCFO Legislative Council and OCFO Chief of Staff prior to transmittal to the Council:
i A copy of the contract;
ii Price Reasonableness D&F;
iii Contractor Responsibility D&F;
iv Any other relevant D&Fs;
v Modifications;
vi Council Summary;
vii Legal Sufficiency Memorandum;
viii Certification Availability of Funds;
ix DOES Tax Document;
x OTR Tax Document;
xi Results of review of Excluded Parties List; and
xii First Source Employment Agreement, if applicable.
e. It is important for OCFO customers to note that DC City Council approval will add a minimum of 30-45 days to the length of time required to procure the requirement.
F. BUSINESS RELATIONSHIP WITH CONTRACTORS. It is essential to develop and maintain open lines of communication between the OCFO and its vendors/contractors by:
1. Keeping competition open and fair;
2. Keeping specifications fair, accurate and clear;
3. Having consistent buying policies and procedures;
4. Observing truthfulness in all transactions and correspondence;
5. Respecting the confidence of the salesperson or the company as to confidential information; and
6. Keeping free from any obligation to any vendor outside of the requirements of the purchase orders and/or contracts.
The relationship between the District and the vendor is intended to be one of mutual obligation, understanding, and trust. Fundamentally, no contract that proves unsatisfactory to the vendor can be satisfactory to the buyer.
G. PREFERRED SOURCES.
1. In selecting sources for OCFO contracts, the OCFO may, when consistent with obtaining the best value, give preferences to entities that are based in or employ residents of the District of Columbia and qualify as disadvantaged businesses. When preferences are employed, any such preferences shall be clearly defined in the solicitation. 27 DCMR § 605.1;
2. An important goal of the OCFO is to ensure maximum participation with Local, Small, and
Disadvantaged Business Enterprises relative to all acquisitions. In establishing its annual program, the OCFO shall allocate its contracting and procurement to meet the following goals (27 DCMR § 602.3):
a. Placement of thirty-five per cent (35%) of the total dollar amount of construction contracts in the sheltered market; and
b. Placement of thirty-five per cent (35%) of procurement of goods and services in the sheltered market.
3. To facilitate accomplishment of this goal, quarterly and annual reports will be submitted to the Department of Small and Local Business Development (DSLBD) documenting the OCFO’s
H. CONFLICTS OF INTEREST AND ETHICS.
1. Personal Financial Conflicts of Interest. All OCFO employees must conduct themselves in a manner that fosters public confidence in the integrity of the Agency’s acquisition process. Any attempt to realize personal gain by improper discharge of purchasing duties or responsibilities by an employee is a breach of public trust and of the ethical standards of the OCFO. It shall be a breach of ethical standards for any OCFO employee to participate directly or indirectly in a procurement when the employee has knowledge that:
a. The employee or any member of the employee’s immediate family has a financial interest pertaining to the procurement;
b. A business or organization in which the employee, or any member of the employee’s immediate family, has a financial interest pertaining to the procurement;
c. Any other person, business, or organization with which the employee or any member of the employee’s immediate family is negotiating or has an arrangement concerning prospective employment is involved in the procurement; or,
d. Any other person, business, or organization with which the employee, any friend of the employee or any known friend of the employee’s immediate family is negotiating or has an arrangement concerning prospective employment is involved in the procurement.
2. Contracts With OCFO Personnel. OCFO will not enter into any contract for the purchase of
products or services with its officials or employees or their relatives, or with any entity in which the OCFO or District employee may have an interest or association, direct or indirect.
3. Organizational Conflicts of Interest. See27 DCMR §§ 2220 et seq.
4. Gratuities. All employees of OCFO are prohibited from soliciting, demanding, accepting, or agreeing to an offer of employment or gifts, samples, entertainment, special personal price considerations, fees, or other gratuities from vendors/contractors doing business with OCFO, including as subcontractors, or in connection with any solicitation, or proposal.
5. Avoidance of Conflicts or Impropriety and the Appearance of Conflicts or Impropriety. All personnel must comply with the following direction regarding reporting and remedying actual and apparent conflicts of interest:
OCFO’s Code of Conduct1, but also includes such relationships with extended family, close friends, former clients, former employers or employees and others as could create the appearance of conflicts of interest or impropriety.
b. In determining whether a relationship or connection is “significant” for this purpose and should be reported, a Member, Officer, or other employee should resolve any uncertainty or ambiguity in favor of disclosure.
c. When any such significant connection is reported, the OCFO shall take appropriate steps to ensure that the connection cannot and does not taint the procurement process. These may include resoliciting a proposed procurement to add additional offerors, recusing the individual OCFO-related person from any role in the procurement process, or disqualifying the
contractor or potential contractor.
6. Prohibition Against Contingent Fees. See 27 DCMR § 1008.
I. DETERMINATION AND FINDINGS are governed by the PPRA and executed in accordance with the 27 DCMR § 1205.
A determination and findings (D & F) shall be used for an individual or class contract action, and shall be retained in the contract file.
The Director shall determine the information to be included in an individual or class D & F.
J. SALES TAX.
The OCFO is exempt from paying all local and state sales taxes or Federal Excise taxes. The OCFO maintains documents to substantiate this status and can provide it to any vendor upon request.
K. PUBLIC ACCESS – FREEDOM OF INFORMATION ACT (FOIA).
All specifications, solicitation documents, purchase orders and supporting documents are public records. FOIA requests shall be routed in accordance with procedures established by the OCFO General Council.
L. CONTRACT FILE MANAGEMENT. 27 DCMR § 1204.
1. Office of Contracts shall manage and maintain all of the OCFO’s contract files in a secured location within the Office of Contracts.
2. Office of Contracts shall appoint COTRs for all contracts. Each COTR is responsible for reading and understanding the requirements of each contract assigned to them and complying with all requirements of the COTR appointment memorandum. .
3. Each contract file shall contain a contract documents checklist and contract award summary sheet. See Attachment 5 for Contract File Checklists and sample summary sheet.
Section III
AUTHORITIES AND RESPONSIBILITIES
A. THE CHIEF FINANCIAL OFFICER (CFO).
1. The Contracting Authority of the CFO was established by Congress in the 2005 District of Columbia Omnibus Authorization Act (Act), codified at §1-204.26 of the DC Code.
2. Within the OCFO, the CFO delegates Contracting Officer authority in accordance with 27 DCMR §§ 1003and 1004.
B. PROFESSIONAL STAFF ROLES AND RESPONSIBILITIES
1. Contracting Officer (CO). See 27 DCMR § 1004.
a. A Contracting Officer shall be authorized to enter into, administer, and terminate contracts. However, a Contracting Officer may bind the District only to the extent of the contracting authority set forth in the OCFO Delegation order.
b. The Contracting Officer shall not make any purchase or enter into any contract for an amount in excess of his or her specifically delegated contracting authority.
c. A Contracting Officer shall have wide latitude to exercise business judgment.
d. A Contracting Officer shall ensure that contractors receive impartial, fair, and equitable treatment in accordance with the Act and this title.
2. Program Office or Contracting Officer’s Technical Representative (COTR):
a. The Program Office is any office or department within the OCFO that requests or uses goods or services procured through the Office of Contracts.
b. The COTR, in partnership with the Office of Contracts, is ultimately responsible for a project throughout the entire procurement process, except for those functions which must be
performed by a Contracting Officer. The COTR’s Director will assign a COTR. The COTR will be responsible for providing technical oversight of a contract performance effort. The designated individual and the Office of Contracts will ensure that the contractor performs in accordance with the requirements of the contract or agreement. See COTR Delegation Letter at Attachment 6.
3. Contract Specialist.
Performs those duties and responsibilities as outlined in the Contract Specialist position description and or as directed by the supervisor.
4. Purchasing Agent.
Section IV
ACQUISITION PLANNING
A. INITIATION OF AN ACQUISITION.
1. Initial Project Planning: Planning a procurement is the most important stage in the overall acquisition process. Proper acquisition planning allows for enough time to develop a clear
Statement of Work (SOW) that accurately captures the needs of the Program Office. The planning process also provides the Program Office/COTR and the OCFO budget office the opportunity to plan for financial commitments and obligations per the Program Office spending plan. The OCFO recommends an acquisition plan for complex procurements and procurements that have high visibility.
a. Prepare an Acquisition Plan. To facilitate attainment of the acquisition objectives, the Acquisition Plan should identify the milestones at which key decisions will be made. The plan should address all the technical, business, management, and other significant
considerations that will affect the acquisition. The specific content of plans will vary, depending on the nature, circumstances, and stage of the acquisition.
b. Contents of the Acquisition Plan. As appropriate to the particular acquisition, the Plan should address the following topics:
i Statement of need. Summarize the technical and contractual history of the acquisition. Describe the product or service being acquired.
ii Applicable conditions. State all significant conditions affecting the acquisition, such as
any known cost, schedule, and capability or performance constraints.
iii Cost. Set forth the established cost goals for the acquisition and the rationale supporting them.
iv Capability or performance. Specify the required capabilities or performance characteristics of the supplies or the performance standards of the services being acquired and state how they are related to the need.
v Delivery or performance-period requirements. Describe the basis for establishing
delivery or performance-period requirements.
vi Risks. Discuss technical, cost, and schedule risks and describe what efforts are planned or underway to reduce risk and the consequences of failure to achieve goals.
viii Competition. Describe how competition will be sought, promoted, and sustained throughout the course of the acquisition. If a sole source award is contemplated, provide the justification.
ix Procurement Method to be Used. Identify the procurement method to be used and how
the determination was made.
x Contract Type. Identify the contract type selected and explain the basis for the determination. If multiyear contracting, options, or other special contracting methods will be used, explain the basis for those decisions.
xi Government-furnished property. Indicate any OCFO or District property to be furnished to contractors, and discuss any associated considerations, such as its availability or the schedule for its acquisition.
xii Contract administration. Describe how the contract will be administered. In contracts for services, include how inspection and acceptance corresponding to the work statement’s performance criteria will be enforced.
xiii Identification of participants in acquisition plan preparation. List the individuals who participated in preparing the acquisition plan, giving contact information for each.
2. Procurement Action Submission Form (PASF): When the Program Office/COTR determines that there is a need for a contractor to provide goods or services, the Program Manager or COTR will prepare a PASF (Attachment 7) justifying the need for goods and/or services and explaining why such goods and/or services cannot be provided in-house. To ensure proper file documentation, the Program Office/COTR shall submit this Form to the Office of Contracts, in writing, by email or in PASS. The PASF is made a part of the contract file and must be signed by the Agency Director and must include an Independent Government Estimate (IGE) prepared by the Program Manager or COTR.
3. Preparation of Attachments to the PASF. Prior to submission of the Procurement Action
Submission Form, the Program Office/COTR must prepare several documents that must be attached to the Form before the Office of Contracts will be required to initiate a procurement action. The Office of Contracts may assist the Program Office/COTR by providing guidance in the preparation of these documents. Guidance on the documents that the Program Office/COTR must prepare and how to prepare them is provide in the following paragraphs.
A. PREPARING REQUIREMENTS DOCUMENTS.
The Program Office/COTR must prepare specifications (for goods) and a SOW (for services). These are the requirements documents that will form the basis for competition or justify a non-competitive
1. General Guidelines.
a. When goods and services are requested by the Program Office/COTR, the specifications or work statement must clearly communicate the OCFO’s requirement(s). Specifications or work statements should accomplish five major objectives:
i Identify a minimum requirement;
ii Allow for maximum competition;
iii Provide for an equitable award;
iv Identify methods to be used to verify compliance with the requirement; and,
v Provide sufficient details for prospective bidders/offerors to estimate price/costs.
b. Specifications and work statements should be written in a clear and concise manner, free of vague terms and ambiguity, and should be reasonable in the level of performance specified.
c. The specifications and the scope of work shall be written to maximize competition and promote the conduct of a cost effective procurement. Unnecessarily restrictive specifications and work statements often lead to limited competition and higher prices.
d. Although the Office of Contracts maintains central control and oversight over Specifications and Scope of Work, the COTR is responsible for initiating and developing the specifications or scope of work. The Office of Contracts will assist the COTR in the development of the requirements documents at the request of the COTR/Program Office.
2. Types of Work Statements.
a. The SOW establishes the scope of services that a contractor shall provide, and also provides a basis for the contractor's preparation of technical and cost proposals where written
proposals are required. In the awarded contract, the SOW also operates as the standard for measuring the contractor's performance and effectiveness.
b. The SOW shall include a thorough description of the required services and expected results, including the minimum standards that shall be met, company and individual qualification necessary to perform the work, deliverable times and a schedule for delivery, and standards by which the contractor's performance shall be measured.
c. Choosing a SOW. When contracting for services, the Program Office/COTR must prepare a work statement that identifies the contractor’s areas of responsibilities and the tasks that it must perform.
1. A SOW is used when the Program Office/COTR must specify how the contractor is to perform the contract. A SOW may also be used in a Time-and-Materials (T&M) contract or a Level of Effort (LOE) contract (see descriptions below), to broadly state the
B. MARKET RESEARCH AND IDENTIFICATION OF VENDORS.
The Program Office/COTR must conduct market research to identify potential vendors, prepare the government cost/price estimate and assess industry capability to satisfy the Government’s requirements.
1. General. To achieve the benefits of competition, the OCFO shall endeavor to identify private sector firms with the qualifications needed by the OCFO that are or may be interested in contracting with the OCFO.
2. The quality of goods and services procured are significant considerations and must be considered along with cost or price. Therefore, the COTR and the Office of Contracts should seek to secure the best quality for the purpose intended. Quality buying is the purchase of goods and services that will meet the needs of the department but not exceed the requirements for which they are intended. It is the responsibility of the COTR and Office of Contracts to become familiar with the available goods and services in order to determine the appropriate quality required for the specification and scope of work development.
3. Techniques for conducting market research may include any or all of the following:
a. Contacting knowledgeable individuals in Government and industry regarding market capabilities of vendors.
b. Reviewing the results of recent market research undertaken to meet similar or identical requirements.
c. Publishing formal requests for information in appropriate technical or scientific journals or business publications.
d. Querying the Government wide database of contracts and other procurement instruments intended for use by multiple agencies available at www.contractdirectory.gov and other Government and commercial databases that provide information relevant to agency acquisitions.
e. Participating in interactive, on-line communication among industry, acquisition personnel, and customers, such as: http://www.acqnet.gov/buyers_market_research.cfm .
f. Reviewing catalogs and other generally available product literature published by manufacturers, distributors, and dealers or available on-line.
g. Conducting interchange meetings or holding presolicitation conferences to involve potential offerors early in the acquisition process.
a. The Department of Small and Local Business Development maintains a database of all certified local, small, and disadvantaged business enterprises. The database is updated on a monthly basis, and includes LSDBE contact information, business description, and NIGP code. The database can be searched alphabetically by typing the first letter of the business name, or an advanced search can be done by entering the desired search criteria in the appropriate box, then selecting the "Search" button.
C. NON-COMPETITIVE PURCHASES.
Sole Source Procurement. Contracting Officers must take reasonable steps, such as market research and publicizing requirements, to avoid using sole source procurement except in circumstances where it is both necessary and in the best interests of the District. See 27 DCMR § 1700 et seq.
D. ESTABLISH THE GOVERNMENT ESTIMATE.
1. Overview. The Program Office must prepare an Independent Government Estimate (IGE) of cost for the proposed acquisition. The purposes of the IGE are:
a. To determine if simplified acquisition procedures are applicable.
b. To serve as the basis for reserving funds for the contract as part of acquisition planning;
c. To serve as a basis for comparing costs or prices proposed by offerors; and
d. To serve as an objective basis for determining price reasonableness in cases in which one bidder or offeror responds to a solicitation.
2. When Required. An IGE is a required element of a proper contract file for all supplies or services.
a. For standard materials and commercial services readily available in the commercial market, catalog or market prices may suffice for the estimate. The remaining discussion will consider the estimate when the requirement is for services, or for materials for which catalog or market prices are not available.
b. An IGE will generally be required in all negotiated procurements, small purchases, most contract changes, sealed bids where price competition was not sufficient, and non-competitive awards. An IGE prepared before receipt of offers is invaluable in these circumstances. The estimate alone may, if prepared with sufficient detail and reliability, be sufficient to determine whether the cost or price is reasonable. It will at least
supplement other data in making the determination of reasonableness. Because cost analysis can be time consuming, adequate must be allotted during the acquisition planning phase so the estimate can be properly prepared.
3. How Prepared.
b. The key to a good cost estimate is for the Program Office to analyze the requirement from the point of view of the prospective vendor. From the vendor’s perspective, the price of a particular item or service consists of:
i. The direct costs of the service or item;
ii. The contractor's indirect or overhead costs; and
iii. An amount for profit.
c. In developing the estimate, the Program Office must estimate the reasonable costs that a contractor may bear in performing the required services or providing the supplies. A cost is considered "reasonable" if it reflects the action that a prudent business person would have taken at the time the cost was incurred.
d. Direct Costs. Direct costs are costs that can be identified with the production of a particular item, process, or service. Typical examples of direct costs include salaries, equipment, materials, travel, and subcontracts.
e. Indirect Costs. Indirect costs (or overhead costs, as they are often referred to) are costs which are not directly identified with a single, final cost objective but identified with two or more final cost objectives. A final cost objective may be a single contract, production item, process, or service. Contractors sometimes simplify these by calling the sum of all indirect costs "total overhead" or an "administrative fee". They are usually expressed as a percentage of some base which distributes them equitably among the contractor's projects.
f. Profit or fee is an amount that contractors receive for contract performance over and above allowable costs.
E. OBTAIN CERTIFICATION OF FUNDING
1. COTRs are responsible for ensuring that funds are available prior to the Contracting Officer’s final signature on the award documents. The COTR obtains the CFO’s signature on the Request for Approval Memorandum or the Funds Availability Statement before forwarding either of the documents to Office of Contracts.
2. If a contract provides for expenditures in a future fiscal year, the contract must contain an “availability of funds” provision approved by the Director of the Office of Contracts. This
provision must expressly provide that the portion of the contract requiring expenditures in the future fiscal year be conditioned upon the appropriation of budget authority for that fiscal year. A
contractor may not perform services or deliver supplies under a contract conditioned upon the availability of funds until the Contracting Officer has given written notice to the contractor that funds are available. Such notice may not be given until the appropriate amount of budget authority has been encumbered. (27 DCMR §3240.5 and §3240.10)
F. SOLICITATION DEVELOPMENT: Upon receipt of the SOW, the Source List, and a Funds
Availability Statement, the Office of Contracts must determine the appropriate procurement method and prepare a draft solicitation based on the procurement method chosen.
G. PUBLICIZING THE OCFO'S REQUIREMENTS. See 27 DCMR § 1301.
Section V
CONTRACT TYPES AND PROCUREMENT METHODS
A. TYPES OF CONTRACTS
General. The selection of an appropriate contract type depends on factors such as the nature of the supplies, services, or construction to be procured, the uncertainties which may be involved in contract performance, and the extent to which the OCFO or the supplier is to assume the risk of the cost of
performance of the contract. Contract types differ in the degree of responsibility assumed by the supplier.
The objective when selecting a contract type is to obtain the best value in needed supplies or services in the time required and at the lowest cost or price to the OCFO. In order to achieve this objective, the COTR and Office of Contracts shall review the elements of the procurement that directly affect the cost, time, risk, and profit incentives bearing on the performance. The Contracting Officer must include a written explanation of the basis for the contract type selected (except for purchases historically made on a fixed price basis and when using small purchase procedures on other than a cost-reimbursement basis.
Subject to the limitations of this section, any type of contract that will promote the best interest of the OCFO may be used; except a cost-plus-a-percentage of cost contract is prohibited. D.C. Code §1-1183.9. A cost reimbursement contract may be used only when a determination is made in writing that such contract is likely to be less costly to the OCFO than any other type or that it is impracticable to obtain the supplies, services, or construction required except under such a contract.
1. General Limitations. The procurement method selected will affect the range of contract types that may be used. The following limitations must be observed:
a. When procurement is by competitive sealed bids, the Contracting Officer shall use either a firm-fixed-price contract or a fixed-price contract with economic price adjustment. The type of contract to be used shall be determined prior to solicitation, and the solicitation shall inform bidders of the type of contract that will be used.
b. When using any other procurement method, the Contracting Officer may use any of the contract types discussed below or combination of types, that will promote the best interests of the OCFO. 27 DCMR § 2401.2.
2. When deciding which contract type (or combination of types) to use, the Contracting Officer shall give preference to contract types in the following order (27 DCMR § 2401.4):
a. Fixed-price;
b. Fixed-price incentive;
c. Cost-plus-incentive fee;
d. Cost-plus-fixed fee;
f. Other types (e.g., Time-and-Materials, labor-hour)
3. Fixed-Price Contracts. Under fixed price contracts, all of the risk (except for impossibility or excusable non-performance) is on the contractor. The contractor is legally obligated to deliver the services and/or supplies as described in the contract, for the price set forth in the contract, unless the contract is modified to increase or decrease the work. The pricing arrangement is not changed because the contractor incurs more (or less) cost than expected. Fixed-price contracts refer to a variety of pricing arrangements or contract types whose commonality is a threshold beyond which the organization bears no responsibility for payment.
4. Firm Fixed-Price (FFP) Contract. FFP contracts provide a firm price that is not subject to
adjustment because of circumstances arising during the performance of the contract. Maximum risk is borne by the supplier who has full responsibility for costs and any resultant profit or loss. See 27 DCMR § 2402 et seq.
Best Practices. (1) The basis for price adjustment should be a variable that is beyond the control of the contractor, e.g., a consumer price index or the market price of a commodity. (2) The
Contracting Officer should establish a ceiling on the amount of upward adjustments to ensure the contractor’s entitlement to an adjustment does not create a liability that exceeds available funding.
5. Fixed-Price Incentive (FPI).
i. Provides for adjusting profit and the final contract price by a formula based on the relationship of final negotiated cost to total target cost. This contract type should encourage the supplier to effectively manage contract costs to the mutual benefit of the contracting parties. A fixed-price incentive contract shall be used only when the contracting officer determines that this type of contract would be less costly than any other type or that it is impractical to obtain goods or services of the kind or quality required without the use of this contract type. See 27 DCMR § 2408.2.
ii. When predetermined formula-type incentives on technical performance or delivery are included, increases in profit or fee shall be provided only for achievement that surpasses the targets, and decreases shall be provided for to the extent that targets are not met.
iii. A fixed-price incentive contract may be used when the following factors apply (27 DCMR § 2408.1):
A. The Contracting Officer determines that a firm-fixed-price contract is not suitable;
B. The nature of the supplies or services being procured and other circumstances of the procurement are such that the contractor's assumption of a degree of cost responsibility will provide a positive profit incentive for effective cost control and performance;
D. The contractor's accounting system is adequate for providing data for negotiating firm targets and a realistic profit adjustment formula, as well as later negotiation of final costs; and
E. Adequate cost or pricing information for establishing a reasonable firm target is reasonably expected to be available at the time of initial contract negotiations.
6. Fixed-Price With Price Re-determination. Provides for a firm fixed price for an initial period of contract deliveries or performance and either prospective or retroactive redetermination of the price, at stated time(s) during performance. The Contracting Officer shall not use a fixed-price contract with prospective price redetermination unless all of the following apply (27 DCMR § 2404.2):
i. The Contracting Officer has determined that the conditions for use of a firm-fixed-price contract are not present and a fixed-price incentive contract would not be more
appropriate;
ii. The contractor's accounting system is adequate for price redetermination;
iii. The prospective pricing periods can be made to conform with the operation of the contractor's accounting system; and
iv. There is reasonable assurance that price redetermination actions will take place promptly at the specified times.
7. Cost Reimbursement Contracts. Cost reimbursement contracts provide for payment of allowable, allocable and reasonable costs incurred in the performance of a contract, up to a stated ceiling. Under cost-reimbursement contracts, all of the risk is on the government. The contractor is obligated only to exercise its best efforts to complete the contract for the amount of funding set forth in the contract, and the government is obligated to reimburse the contractor’s allowable costs up to the ceiling amount, plus any fee. See 27 DCMR 2405 et seq.
8. Time And Materials Contracts (T&M). T&M contracts typically provide for the payment of a fixed-price hourly rate for specifically defined categories of direct labor, and for the reimbursement of the cost incurred for materials, required to perform the work. The contracting officer shall avoid continued use of a cost-reimbursement or time-and-materials contract after experience provides a basis for firmer pricing. See 27 DCMR 2401.5.
a. Direct labor rates include wages, overhead, general and administrative expenses and profit. Material costs may include, if appropriate, a small amount (not to exceed 6% of the cost of materials) for material handling costs.
b. Because the fixed labor rate includes indirect costs (overhead) and profit, the contractor’s profit increases with each labor hour employed in performing the work, and wasted hours result in higher profits. Thus, inefficiency is rewarded and efficiency is penalized. Consequently, this type of contract can be used only if:
ii. It is not possible at the time of awarding the contract to estimate reasonably and accurately either the extent or cost of the work required;
iii. Surveillance and accounting capabilities, similar to those required for cost-reimbursement contracts, are available; and
iv. A price ceiling, similar to the cost ceiling used in cost-reimbursement contracts, is provided.
9. Labor Hour Contracts. Labor-hour contracts are identical to T&M contracts, except that no materials are required. Therefore, the same restrictions apply to their use as those for time-and-material type contracts.
10. Letter Contracts.
a. A letter contract is appropriate when the OCFO's interests demand that the contractor be given a binding commitment so that work can start immediately and executing a definitive contract is not possible-in sufficient time to meet the requirement. Each letter contract shall be as complete and definite as possible under the circumstances and shall include clauses
approved and required by the Contracting Officer.
b. The Contracting Officer must execute a definitive contract within one hundred and twenty (120) days after the date of execution of the lettercontract or before completion of fifty percent (50%) of the work to be performed, whichever occurs first. 27 DCMR § 2425.9. The Contracting Officer may authorize an additional period if the additional period is approved in writing by the head of the contracting agency.
c. A letter contract must specify a monetary ceiling for the definitized contract and state that the OCFO’s liability under the letter contract shall not exceed 50% of the specified ceiling.
11. Indefinite Delivery Contracts. In addition to the contract types discussed above (e.g., fixed price, cost-reimbursement, etc.), the use of indefinite delivery contracts should be considered during development of the acquisition strategy.
a. When Appropriate. The use of an indefinite delivery contract reduces processing lead time when meeting future repetitive OCFO requirements. It is appropriate to use an indefinite delivery contract when the OCFO anticipates repetitive needs within a general service or goods category, and the number of occasions, and the exact period of time, the service will be required is not known. As requirements arise, task orders (for services) or delivery orders (for supplies) may be issued.
b. Contracting Procedures. Task order agreements may be established by either simplified or formal contracting procedures.
12. Definite Quantity Contracts. A definite-quantity contract provides for delivery of a definite quantity of specific supplies or services for a fixed period, with deliveries or performance to be scheduled at designated locations upon order. A definite-quantity contract may be used when it can be determined in advance that:
A. A definite quantity of supplies or services will be required during the contract period; and
B. The supplies or services are regularly available or will be available after a short lead time.
13. Requirements Contracts. A requirements contract provides for filling all actual purchase requirements of designated Government activities for supplies or services during a specified contract period, with deliveries or performance to be scheduled by placing orders with the contractor. See 27 DCMR 2416 et seq.
A. The Contracting Officer must state a realistic estimated total quantity in the solicitation and the resulting contract. This estimate is not a guarantee to an offeror or contractor that the estimated quantity will be required or ordered, or that conditions affecting requirements will be stable or normal. The Contracting Officer may obtain the estimate from records of previous requirements and
consumption, or by other means, and should base the estimate on the most current information available.
14. Indefinite Delivery/Indefinite Quantity (ID/IQ) Contracts. An ID/IQ contract provides for an indefinite quantity, within stated limits, of supplies or services during a fixed period. The
Government places orders for individual requirements. An ID/IQ contract is appropriate when the Government cannot predetermine, above a specified minimum, the precise quantities of supplies or services that it will require during the contract period. 27 DCMR § 2416.9. The Contracting Officer should use an indefinite-quantity contract only when a recurring need is anticipated. See 27 DCMR 2416 et seq.
15. Multiyear Contracts and Option Contracts.
a. Multi-Year Contracts.
i A multi-year contract is a contract for the purchase of supplies or services for more than 1 year. A multi-year contract may provide that performance under the contract during the second and subsequent years of the contract is contingent upon the appropriation of funds, and may provide for a cancellation payment to be made to the contractor if appropriations are not made.
ii Unless prohibited by the provisions of an appropriations act, a Contracting Officer may issue the following types of contracts on a multiyear basis (27 DCMR § 2000.1):
B. Fixed-price contracts with economic adjustments;
C. Fixed-priced incentive contracts; and
D. Cost-reimbursement contracts.
iii Before issuing a multiyear contract, the Contracting Officer must determine the fol-lowing in writing (27 DCMR § 2000.6):
A. That the contract requires the special production of definite quantities or the furnishing of long-term services to meet the District's needs;
B. That there is a reasonable expectation that, throughout the contemplated con-tract period, the requesting agency will request sufficient budget authority to fund the contract at the level required to avoid contract cancellation;
C. That any technical risks associated with the item or service are not excessive;
D. That a multiyear contract will serve the best interests of the District by encour-aging competition or otherwise promoting economies in procurement; and
E. That estimated requirements cover the period of the contract and are reasonably firm and continuing.
iv Prior to contract award, the DC City Council must review the Contracting Officer’s determination and approve any contract to exceed $1 million dollars in twelve months, or any multi-year contract exceeding $1 million funded with annual funds. (DC Code §1-204.51; §§2-301.05 (a) and (d)).
b. Option Contracts.
i An option contract has a base period, followed by option periods that are exercised if determined to be in the best interest of the Government. Because option contracts have the potential to extend beyond one year, they are referred to as “multiple-year
contracts.” The key distinguishing difference between multi-year contracts and
multiple year contracts is that multi-year contracts buy more than 1 year’s requirement (of a product or service) without establishing and having to exercise an option for each program year after the first.
ii A Contracting Officer shall not use an option in any of the following circumstances (27 DCMR § 2005.3):
A. If the contractor would incur undue risks, such as when the price or availability of necessary materials or labor is not reasonably foreseeable;
C. If market prices for the supplies or services involved are likely to change sub-stantially; or
D. If the option represents known firm requirements for which funds are available, unless the basic quantity is a learning or testing quantity and competition for the option would be impractical after the initial contract is awarded.
iii If the Contracting Officer determines that options are appropriate, the solicitations must include the applicable option provisions and clauses and must also state if the award decision will include evaluation of the option prices. 27 DCMR § 2006.2.
iv Exercising Options. When exercising an option, the Contracting Officer must provide written notice to the contractor within the time period specified in the contract (30 days is standard). 27 DCMR § 2008.1. When the contract provides for economic price adjustment and the contractor requests a revision of the price, the Contracting Officer shall determine the effect of the adjustment on prices under the option before the option is exercised. The Contracting Officer may exercise options only after determining that 27 DCMR § 2008.4):
(A) funds are available;
(B) the requirement covered by the option fulfills an existing Government need; and
(C) the exercise of the option is the most advantageous method of fulfilling the Government’s need, price and other factors.
1. SMALL PURCHASE PROCEDURES. This section applies to purchases costing $100,000 and below, as codified in 27 DCMR 1800.1, amended 6/28/13). The OCFO does not require documented competition for small dollar purchases of less than $10,000; however, OCFO Purchasing Agents are encouraged to solicit vendor quotes to the extent practicable. Informal Bids or Quotations are required for purchases that are estimated to exceed $10,000, but are less than the formal purchase threshold of $100,000. Any of the competitive sealed bid procedures (see below) may be incorporated into this method of purchase at the discretion of the Contracting Officer .
1. Step 1 – Initiation and Issuance of a Request for Quotations (RFQ).2 Upon identification of a requirement, the COTR or other customer must describe the requirement, identify potential vendors and coordinate issuance of the RFQ with the Office of Contracts. Additional guidance on how to complete these steps is available in Section IV, Acquisition Planning, above. See the Small Purchase Checklist at Attachment 8.
a. Initiation of the RFQ Process. A Request for Quotation (RFQ) is a solicitation of a quotation not expected to exceed $100,000. The RFQ may incorporate documents by reference provided that
2
the RFQ specifies where such documents may be obtained. See the RFQ Template at Attachment 9.
b. Solicitation of Vendors. To promote competition to the maximum extent practicable, and to ensure that the purchase is in the best interest of the OCFO, the Contracting Officer shall solicit quotations as outlined in 27 DCMR § 1800, amended 6/28/13):
c. Quotations may be modified. Modifications, Termination and Cancellation of Purchase Orders issued under small purchasing are governed by 27 DCMR 1804, amended 6/28/13.
2. Selecting the Awardee. Generally, when using small purchase procedures, a Purchase Order will be issued to the lowest priced responsive, responsible vendor whose quotation meets the
requirements and criteria set forth in the RFQ. However, the Purchasing Agent may consider factors other than price or price-related factors when significant qualify variances are expected and the RFQ informed vendors that award may be made on other than a low price basis.
The contracting officer shall determine that the price to be paid for small purchases made pursuant to this chapter to the successful offeror is fair and reasonable Price. 27 DCMR § 1801, amended 6/28/13.
i When more than one quote has been received, the determination that a proposed price is fair and reasonable may be based on the following:
(A) Competitive quotations;
(B) Comparison of the proposed price with (i) prices found reasonable on previous purchases, (ii) current price lists, (iii) catalogs, (iv) advertisements, or (iv) similar items;
(C) Value analysis; Purchasing Agent’s personal knowledge of the item being purchased, or
(D) Any other reasonable basis.
3. Preparation of the Award Recommendation. The evaluation team shall document the basis for its initial recommendation for award, including a brief description or how the selected proposal fulfilled the evaluation criteria stated in the solicitation, the reasonableness of the proposed price. When the RFQ advised vendors that award may be made based on other than the lowest price, the documentation must explain why the recommended proposal offers the best value of all proposals received. The Contracting Officer reviews the recommendation and makes the final determination for award.
4. Requisitions and Purchases Orders shall be prepared in accordance with the provisions of the PASS and the Small Purchase provisions of the PPRA/DCMR.
5. Blanket Purchase Agreements (BPA) are a simplified acquisition method for filling anticipated repetitive needs for goods or services by establishing a purchase order with qualified sources of supplies or services. See 27 DCMR 1802, amended 6/28/13. BPAs are designed to reduce
the need for issuing individual purchase documents. The administrative cost of writing numerous purchase orders can be avoided through the use of this procedure.
a. The following are circumstances under which BPAs may be established:
i If there is a wide variety of items in a broad class of goods or services that are generally purchased, but the exact items, quantities, and/or delivery requirements are not known in advance and may vary considerably.
6. There are instances when the contracting officer shall use an unpriced purchase order only under the following circumstances (See 27 DCMR 1803, amended 6/28/13):
(a) When the transaction will not exceed the small purchase limit;
(b) When it is impractical to obtain pricing in advance of issuance of the purchase order; and (c) When the purchase is for repairs to equipment requiring disassembly to determine the nature and extent of repairs, material is available from only one (1) source, and for which cost cannot be readily established, or goods or services for which prices are known to be competitive but exact prices known.
(d) The contracting officer shall issue each unpriced purchase order by using a purchase order form and shall set a realistic dollar ceiling, either for each line item or for the total order. The dollar limitation shall be an obligation subject to adjustment when the firm price is established.
D. COMPETITIVE SEALED BIDDING.
1. Overview.
a. A competitive sealed bid is an offer submitted in response to an Invitation for Bids (IFB). An IFB is used to request prices for goods or services through public notice in procurements where the goods or services can be precisely described. Competitive sealed bids are used when award will be based only on price and the estimated price is above the Simplified Procedure threshold of $100,000 (27 DCMR § 15).
b. The Competitive Sealed Bid process must be used for all contracts expected to exceed $100,000, unless the Director of the Office of Contracts determines in writing that one or more of the following conditions exist (D.C. Code §2-303.03):
i. Specifications cannot be prepared that permit an award on the basis of either the lowest bid price or lowest evaluated bid price;
ii. There is only one available source;
iii. There is an unanticipated emergency which leaves insufficient time to use this method; or
2. Step 1: The Program Office Prepares the Specifications.
a. The Program Office should contact the OCFO Contracting Office as soon as the need is identified. The Program Office submits, to the OCFO Contracting Office, a Procurement Action Submission Form (PASF) justifying the need for goods and/or services The PASF should note any suggested vendors and additional vendor outreach suggestions, if applicable. For additional information on completion of the PASF, see Attachment 7 and Section IV.A., above.
b. The Program Office is responsible for the drafting of specifications to be submitted to the Contracting Office. Specifications may be submitted to the Contracting Office electronically.
3. Step 2: The Contract Specialist Prepares the IFB. Upon receipt of a complete PASF from the Program Office, the Contract Specialist will prepare the IFB, special terms and conditions, necessary and the specifications provided by the Program Office.
a. In general, the Contracting Officer will prepare the IFB using a uniform contract format containing the following information in the order specified (27 DCMR 1501.2):
i. Section A: The solicitation and contract form prescribed by the Director;
ii. Section B: A description of the supplies, services, or other items; quantities; and prices;
iii. Section C: Any description or specifications needed in addition to §1501.2(b) that are necessary to permit maximum practical competition;
iv. Section D: Packaging, packing, preservation, and marking requirements;
v. Section E: Inspection, acceptance, quality assurance, and reliability requirements;
vi. Section F: Requirements for time, place, and method of delivery or performance;
vii. Section G: Requirements for accounting and appropriation data and any required contract administration information;
viii. Section H: Special contract requirements;
ix. Section I: Contract clauses or provisions required by law or 27 DCMR;
x. Section J: A list of documents, exhibits, and other attachments;
xi. Section K: Representations, certifications, and other statements of bidders;
xii. Section L: Instructions, conditions, and notices to bidders; and
