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Agenda Item
ASR
Control 23-000787 |
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MEETING
DATE: |
10/31/23 |
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legal entity taking action: |
Board
of Supervisors |
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board of supervisors district(s): |
All
Districts |
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SUBMITTING Agency/Department: |
County
Executive Office (Approved) |
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Department contact person(s): |
Michelle
Aguirre (714) 834-4304 |
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Maria
Agrusa (714) 834-6889 |
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Subject: Approve 2024 Contract Policy Manual
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ceo CONCUR |
County Counsel Review |
Clerk of the Board |
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Concur |
Approved
Resolution to Form |
Discussion |
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3
Votes Board Majority |
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Budgeted: N/A |
Current Year
Cost: N/A |
Annual Cost: N/A |
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Staffing Impact: |
No |
# of Positions: |
Sole Source: N/A |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 5/11/2021 #41, 4/27/2021 #53,
10/6/2020 #S16B, 8/13/2019 #19 |
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RECOMMENDED
ACTION(S):
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1. |
Approve 2024
Contract Policy Manual, effective January 1, 2024. |
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2. |
Adopt amended
Resolution authorizing the Director of OC Public Works, Sheriff-Coroner or
those qualified County officials or department designees identified by the
Director of OC Public Works or Sheriff-Coroner to advertise bids in the
manner set forth in Public Contract Code Section 22037 for the performance of
public projects described in Public Contract Code Section 22032(c) on behalf
of the County of Orange. |
SUMMARY:
Approval of the 2024 Contract
Policy Manual and Resolution will update procurement policies, enhance the
County of Orange Procurement Preference Policy and consolidate
procurement-related policies into one comprehensive manual for consistency and
efficiency.
BACKGROUND
INFORMATION:
The County's Contract Policy Manual
(CPM) was previously updated and approved by the Board of Supervisors (Board)
on June 26, 2018, August 13, 2019, and May 11, 2021. On October 6, 2020, the
Board approved the Disabled Veteran Business Enterprise (DVBE) Preference
Policy and directed CPO to implement the DVBE Preference Policy, effective
January 1, 2021, and to update the CPM to reflect implementation of the Policy.
On April 27, 2021, the Board approved the adoption of an ordinance to update
procurement policies related to competitive bidding and disposition of County
surplus property.
On November 2, 2021, then Chairman Do,
established the Procurement Ad Hoc Committee to review and discuss updates to
the CPM. The Board designated then Vice Chairman Chaffee and Chairman Do to the
Ad Hoc Committee. Following a series of meetings and input from key County
stakeholders, including the County Executive Office (CEO), County Counsel, OC
Public Works, CEO Real Estate Services and the Procurement Council, the 2024
revision of the CPM is presented for Board consideration and approval. The CPM
updates consisted of substantive changes, including various enhancements to the
Preference Policy, review and consolidation of the County’s Design and
Construction Procurement Policy Manual and incorporation of various Real Estate
procurement-related policies; thus, additional time was necessary to conduct
research associated with the revisions and to ensure appropriate review and
input was obtained from key stakeholders.
Key elements of the revisions
recommended by the Procurement Ad Hoc Committee are identified below. All
revisions are shown in the redlined 2024 CPM (Attachment B).
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Incorporate into
the CPM and consolidate the policies of the Design and Construction
Procurement Policy Manual and Real Estate Procurement related policies to
ensure one comprehensive procurement manual and further enhance
standardization of procurement contracts. [Section 1.6.1, Sections 3.4–3.7] |
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Consolidate
Human Services Contracts and Service Contracts sections to properly align
policies and ensure consistency. [Section 3.3-101(1)(i)] |
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Reorganize as
its own section and enhance the County of Orange Procurement Preference
Policy to incorporate [Section 1.8]: - Eligibility
for contractors to qualify for the preference using Orange County Local Small
Business (OCLSB) and Disabled Veteran Business Enterprise (DVBE)
subcontractors [Section 1.8-102(3)] - A (3) three
percent award requirement to OCLSB/DVBE subcontractors for public works projects
over $5,000,000, except as otherwise required or prohibited by Federal or
State funding requirements [Section 3.6-107] |
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Increase the
solicitation thresholds for Commodity, Capital Asset and Service Contracts.
[Sections 3.1-106(1), 3.2-106(1), 3.3-109(1)] |
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Contract
Type |
Solicitation
Method |
Previous
Threshold |
Revised
Threshold |
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Commodity |
Minimum of one written
quote Minimum of two written
quotes Written solicitation
issued on County’s bidding system |
$10,000 or less over
the life of the contract $10,001 to $25,000 over
the life of the contract Above $25,000 over the life of the
contract |
$25,000 or less over
the life of the contract $25,001 to $50,000 over
the life of the contract Above $50,000 over the life of the
contract |
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Capital Asset |
Minimum of two written
quotes Written solicitation
issued on County’s bidding system |
$5,000 to $25,000 over
the life of the contract Above $25,000 over the
life of the contract |
$5,000 to $50,000 over
the life of the contract Above $50,000 over the
life of the contract |
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Service |
Minimum of one written
quote Written solicitation
issued on County’s bidding system |
$50,000 or less over
the life of the contract Above $50,000 over the
life of the contract |
$100,000 or less over
the life of the contract Above $100,000 over the
life of the contract |
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Revise the Sole
Source monetary and term thresholds for Board approval for Service Contracts,
including Architect-Engineering Services. [Section 3.3-102(b), Section
3.4-105(2)] |
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Service
Contract and Architect-Engineering Services |
Previous
Thresholds |
Revised
Thresholds |
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Monetary |
$75,000 |
$100,000 |
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Term |
Two (2) year
consecutive term |
Five (5) year term |
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Allow extensions
of Commodities and Services contracts up to one year beyond the fifth year
provided there are no monetary increases. For example, additional time may be
needed to conduct a solicitation. [Section 3.1-104; Section 3.3-106] |
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Update retroactive
contract approval thresholds. [Section 3.1-108(1)(b), Section 3.2-108(1)(b),
Section 3.3-111(1)(b)] |
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Approval
Level |
Previous
Thresholds |
Revised
Thresholds |
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Department Head |
$500 or less |
No Change |
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Chief Financial Officer
and County Procurement Officer |
Between $500 and $9,999 |
Exceeds $500 but
$25,000 or less |
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Board of Supervisors |
$10,000 and above |
Exceeds $25,000 |
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Incorporate Memorandum
of Understanding (MOU) section, which establishes definitions and policies
for the use of MOUs. [Section 3.8] |
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Update the
Discussion Calendar contract threshold for ASRs to align with the recently
updated and Board approved Board Rules as shown below. [Section
3.3-107(1)(b)] |
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Calendar |
Previous |
Revised |
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Consent |
Contracts $750,000 or
less |
Contracts $1,000,000 or
less Straight contract
renewals (no monetary or scope of work revisions) |
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Discussion |
Contracts exceeding
$750,000 |
Contracts exceeding
$1,000,000 |
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To align with
current industry standards, update the Two-Step Solicitation Process to
require an evaluation-based solicitation for both steps (Step 1 – Request for
Qualifications, Step 2 – Request for Proposals). [Section 4.4] |
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Incorporate
authority for the procurement of cash alternatives (e.g., gift cards), food,
travel and court-ordered commodities/services. [Section 1.1-107(1),
3.1-101(1)(f), 3.1-122] |
The recommended implementation date
following Board approval of the 2024 CPM is January 1, 2024, to allow time for
development and revision of documentation and procedures, and to educate
department Deputy Purchasing Agents on the revisions.
Resolution
of Delegation
As the Design and Construction
Procurement Policy Manual will be consolidated into the 2024 CPM, approval of
the amended Resolution will continue to authorize the Director of OC Public
Works, Sheriff-Coroner or those qualified County officials or department
designees identified by the Director of OC Public Works or Sheriff-Coroner to
advertise for bids, which includes the adoption of plans, specifications, and
working details, in accordance with the Public Contract Code for public works
projects on behalf of the County and the Orange County Flood Control District.
FINANCIAL
IMPACT:
N/A
STAFFING
IMPACT:
N/A
ATTACHMENT(S):
Attachment
A – 2024 Contract Policy Manual
Attachment B – Redline - Contract Policy Manual
Attachment C – Resolution