PROCUREMENT POLICY
PURPOSE:
The purpose of this policy is to establish guidelines relating to the purchase or sale of
real and personal property, the granting of concessions, and the making of certain
contracts by Mecosta Osceola Transit Authority (MOTA), in accordance with United
States Department of Transportation (USDOT) Federal Transit Administration (FTA)
requirements and Michigan Department of Transportation (MDOT) requirements, as
published in FTA Circular 4220.1F, 49 CFR Part 18, the FTA Master Agreement for the
current fiscal year, the FTA Best Practices Procurement Manual, and the MDOT
Procurement Guidelines, including all updates to each document.
DEFINITIONS:
Board and/or Board of Directors – The Board of Directors of MOTA
Board Member – A member of the Board of Directors of MOTA
Competitive Bid Procurement – A procurement method by which bids are publicly
solicited and a firm-fixed-price contract (lump sum or unit price) is awarded to the
responsible bidder whose bid, conforming to all the material terms and conditions of the
invitation for bids, is the lowest in price.
Competitive Negotiation Procurement – A procurement method by which proposals are
solicited from a number of qualified sources and the award is made to the responsible
bidder or proposer whose proposal is most advantageous to MOTA with price and other
factors considered.
DBE Plan – MOTA’s Disadvantaged Business Enterprise plan, in accordance with 49
CFR Part 26, including all updates.
Executive Director – The Executive Director of MOTA or authorized designee.
Fair Market Value – The value of an item as determined by the amount offered by the
highest bidder.
Independent Cost Estimate – A process whereby the estimated cost of a good or
service to be procured is established by MOTA staff or MOTA representatives prior to
the procurement; and the resulting estimate is used to assess the fairness and
reasonableness of an offered price.
Non-Competitive Procurement – A procurement method
procurement of goods or services from a single proposer.
which
involves
the
Responsible – A bidder or proposer who has all financial and technical capabilities to
deliver materials or perform the work, i.e. adequate finances, capable of complying with
required delivery, and has a satisfactory past performance.
Responsive – A bidder or proposer whose bid/proposal complies in all material aspects
with the Invitation for Bids or Request for Proposal by the bid/proposal opening or
closing date.
GENERAL POLICY:
It is the policy of MOTA to procure all needed goods and services (exclusive of real
property) at the lowest total end-use cost, maintaining the highest quality standards, and
in accordance with MOTA’s DBE Plan. All procurement methods and processes shall be
conducted in a manner that ensures fair and open competition among all qualified
interested parties.
Contract administration methods shall be maintained to assure that goods and services
received by MOTA meet the terms and conditions of the contract.
Procurement practices shall comply with laws, regulations and guidelines of the Federal
government, state governments and other political subdivisions or agencies and the
provisions of grant or funding agreements, if applicable.
The Executive Director shall administer the procurement of all goods and services on
behalf of MOTA as provided by Board policy.
PROCUREMENT METHODS:
Generally, MOTA procurement methods are dictated by provisions of Federal law or
grant or funding agreements entered into with public entities in connection with funding
of particular procurements, projects or activities of MOTA. The Executive Director shall
conduct procurements in accordance with procedures required by applicable law, if any,
and the provisions of applicable grant or funding agreements, if any. Where no
procurement procedure is required by provisions of applicable law or grant or funding
agreements, the Executive Director shall establish procedures for such procurements
which are designed to meet the policies of MOTA as set forth in this policy.
AWARD CRITERIA:
The following factors shall be considered in awarding procurement contracts:
1. Conformance to solicitation requirements.
2. Bidder’s or proposer’s previous record of performance and quality.
3. Technical and financial capability of bidder or proposer to render satisfactory
service.
4. Value, price or cost as determined by MOTA’s Independent Cost Estimate and
price or cost analysis.
Prior to award, bids and proposals must be determined to be responsive and
responsible to all MOTA requirements. Cost or price must be determined to be fair and
reasonable and there must be an Independent Cost Estimate and analysis to support
such a determination. MOTA reserves the right to reject any and all bids, waive minor
informalities and contract in the best interest of MOTA.
Competitive Bid Procurement awards must be made to the lowest responsive,
responsible bidder.
AWARD AUTHORITY:
The Board of Directors shall approve the following procurements:
1.
2.
3.
4.
Competitive Bid Procurements.
Competitive Negotiation Procurements.
Non-Competitive Procurements.
Procurements for a contract term, including options, which exceeds five (5)
years.
5. Procurements which exceed the amounts budgeted or otherwise approved by the
Board of Directors for such project, function, or service.
CONTRACT OPTIONS:
The Executive Director may exercise contract options if they have been evaluated and
determined to be in the best interest of MOTA. The following factors shall be considered
in making such evaluation and determination:
1.
2.
3.
4.
The continued need for the goods or services.
The performance of the contractor.
The fairness and reasonableness of the cost.
The availability of sufficient funds to cover the option cost.
The option price may not exceed the option price set forth under the initial contract and
cannot exceed the amount budgeted by or otherwise approved by the Board of
Directors for such project, function or service.
UNSOLICITED PROPOSALS:
It is the policy of MOTA to encourage the submission of new and innovative ideas.
Where such submissions are not in response to MOTA solicitations, they shall be
considered unsolicited proposals.
Unsolicited proposals may be accepted if:
1. They have been thoroughly evaluated and determined to be in the best interest
of MOTA.
2. Their cost has been determined to be realistic.
3. There are sufficient funds to cover the cost.
4. The award of such procurement complies with this policy.
SALE AND DISPOSITION OF ASSETS AND PROPERTY:
It is the policy of MOTA to sell and dispose of assets and property no longer needed for
MOTA purposes. Such sale and disposition shall be for fair market value or appraised
value, unless otherwise approved by the Board of Directors.
The Board of Directors shall approve all sales and dispositions in excess of $250.00 fair
market or appraised value and all sales and dispositions of real property.
ETHICS AND STANDARDS OF CONDUCT:
Any officer, Board Member, employee or agent of MOTA involved in procurement
matters shall adhere to the Conflict of Interest Policy / Code of Ethics as adopted by the
Board of Directors.
No employee, officer, agent, or Board Member of MOTA, or his or her immediate family
member, partner, or organization that employs or is about to employ any of the
foregoing may participate in the selection, award, or administration of a contract
supported with FTA assistance if a conflict of interest, real or apparent, would be
involved. Such a conflict would arise when any of those previously listed has a financial
or other interest in the firm selected for award.
No employee, officer, agent, or Board Member of MOTA shall at any time prior to award
of a procurement contract reveal technical and price information, other than information
resulting from a public opening or a public meeting of the Board of Directors or its
Committees.
As permitted by State or local law or regulations, violation of these standards by an
employee, officer, agent, or Board Member of MOTA, or by subcontractors or subrecipients or their agents shall result in penalties, sanctions, or other disciplinary
actions, up to and including discharge.
CONFLICTS IN POLICY:
In the event of any conflicts between this policy and the provisions of applicable grant or
funding agreements, the Executive Director shall resolve such conflicts in such a
manner that is in the best interests of MOTA, consistent with this policy. If such
resolution would violate the provisions of this policy or other Board policies, approval by
the Board of Directors is required.
MANAGEMENT PROCEDURES:
All actions taken by the Executive Director shall be consistent with this policy.
The Executive Director shall establish procedures to ensure compliance with all aspects
of this policy.
The Executive Director shall provide monthly reports to the Board relating to
procurement activities, including contract modifications and award of options.
Any employee who deviates from this policy is subject to appropriate disciplinary action,
up to and including discharge.
PROCUREMENT RECORDS:
The Executive Director shall maintain records relating to procurements which shall
include:
1.
2.
3.
4.
The rationale for the method of procurement.
The basis of and authority for the award.
The basis for the contract price.
Any other documentation required by law, regulation or funding or grant
agreement, if applicable.
PROTEST PROCEDURES:
Protests concerning MOTA’s procurement policies, the contract requirements, the
specifications, the bidding procedures, or the contract award, or any other request for
explanation or clarification must be submitted in writing to the Executive Director and
must include the following:
1. The name and address of the protester.
2. The name and telephone number of the protester’s contact person having
responsibility.
3. A complete statement of the grounds of the protest with full documentation of the
protester’s claim.
PRE-AWARD PROTESTS:
Pre-award protests must be received by MOTA no less than ten (10) working days
before the scheduled bid opening. MOTA will respond to the protest in writing and
render its final decision at least five (5) working days before the scheduled bid opening.
MOTA will report such protests to MDOT and/or the FTA regional office.
POST-AWARD PROTESTS:
Post-award protests must be received by MOTA no less than five (5) working days after
notification of the award bid. MOTA will have ten (10) working days after receipt of the
formal protest package to evaluate and issue a response, except in cases where the
original bid has been awarded by the Board of Directors. In such cases, the response
will be handled at the next regularly scheduled Board Meeting following completion of
the protest evaluation by MOTA staff. MOTA will report such protests to MDOT and/or
the FTA regional office.
APPEALS OF PROTEST DECISIONS TO MDOT:
It is the responsibility of MOTA to settle contract issues and disputes. MOTA is
committed to using sound administrative practices and business judgments, as well as
professional ethics. Reviews of protests by MDOT will be limited to alleged failure by
MOTA to have followed proper protest procedures or its failure to review a protest.
Protesters dissatisfied with MOTA’s final decision may appeal to MDOT and/or the FTA
regional or headquarters office within five (5) working days of the date the protester
knew or should have known of the violation.