9000-030 – Procurement Process – Queen’s Harbour Rules, Regulations & Policies

QHRRP 9000-030

Procurement Process

Review/update responsibility

Finance

Revision

14 Oct 2024

Process

Follow the below steps to procure goods and services…

Step	Action
1	Determination of Needs – Defining Specifications… Responsibility for specifications. Procurement participants will have primary responsibility for the initial development and revision of specifications, Statements of Work (SOW) and/or Terms of Reference. To ensure proper quality control and to avoid the proliferation of conflicting specifications, the Property Manager shall review and approve specifications for clarity, completeness, and adherence to Association policy. Maximum Practicable Competition. All specifications shall seek to promote overall economy and to encourage competition in satisfying the Association’s needs, without being unduly restrictive. The Property Manager shall review specifications written by the procurement participants to assure that the specifications allow for free and open competition, and that those specifications that eliminate some brands or vendors do so to reasonably meet the needs of the Association. The requirements of this Section shall also apply to all specifications prepared by non-Association personnel, including but not limited to those prepared by architects, engineers, designers, and consultants.
2	Vendor Evaluation… Selection Criteria. Vendor selection criteria (the basis for making the determination of the award of the bid) should be established and documented prior to the solicitation of bids/proposals. The criteria shall be prioritized using a relative rating (e.g., 1-10). Criteria may be assigned the same weighting if deemed to be equivalent in importance. Bids/proposals should be rated based on the criteria and the ratings used to support the award decision. See Contractor Selection Decision Matrix, also available from the Property Manager or Finance Committee. Identification of potential bidders. The Property Manager shall establish and monitor procedures to verify and document for the Association the qualifications of potential suppliers. As part of these procedures, for procurements likely to exceed $10,000 during the term of the agreement, the Property Manager should notify the Treasurer that proposals are going to be solicited, to enable their designee to effectively assess the financial impact of bid awards if and when they are later made. Procedures for screening the qualifications of possible new suppliers should be based on clear criteria available to the supplier such as business results, reliability, technological and technical capabilities, vendor relationship with QHYCC Lot owners/tenants, and so on. The Association requires that any supplier participating in the Association’s procurement process… adheres to the highest ethical standards. reports to the Association all suspected acts of fraud or corruption related to Association-financed activities of which it has knowledge or of which it becomes aware. provides references to the Association pertinent to the work being bid. Verifies that its organization… has the financial capacity to perform if awarded a contract by the Association; either has or can obtain insurance providing the coverage limits required by the Association; has been in business for a period of time sufficient to have the qualifications and experience required to provide the goods or services it proposes to provide and that it has verifiable references of other users for which it has provided similar goods and/or services; is licensed to do business in Florida; and complies with requirements – Any supplier that has falsely represented itself or that has knowingly violated any matter with which it must certify its compliance to the Association shall be deemed to have committed a fraudulent act, and the case shall be immediately referred to the Board by the Property Manager. Recommended suppliers. The Property Manager may recommend new suppliers. However, the Board maintains the right of final selection of any supplier based on documented information supporting the recommendation that includes, but is not limited to, supplier performance record, percent of business with the Association, pricing and/or quality of services offered, applicable benchmarks, master agreements, potential to consolidate requirements and spending, and fairness/transparency of award. Information related to potentially qualified suppliers. Only relevant information required for the procurement should be obtained as stipulated in the contracts. Any knowledge acquired about outside parties through business operations not known to the general public should be strictly controlled within the Association and should not be revealed without the written consent of the vendor.
3	Selection of potential bidders… The Property Manager, working with the Executive Committee or the Board, will select the vendors to whom the Requests for Proposal (RFP) will be sent. The number of vendors solicited will be determined based on the following… Small Purchases – RFP’s are not required. Availability and pricing should be researched, as appropriate, to ensure Best Value. All other… In most cases, RFPs shall normally be solicited from a minimum of five (5) potentially viable vendors. Where the number of viable vendors is limited to less than five, a minimum of three bids or proposals shall be solicited. In those cases where there are fewer than three viable vendors identified, and with the approval of the Executive Committee, RFP’s will be utilized, and the terms of the contract will be negotiated.
4	Release of proposals… Requests for Proposals (RFP) for Bids or Proposal An RFP shall be issued and shall include specifications and contractual terms and conditions applicable to the procurement. All RFP’s will be released at the same time to provide each potential bidder the same amount of time to res Whenever possible, a bidders’ conference shall be held to inform bidders of the intent of the RFP and to answer questions that allow the bidders to fully understand the requirements of the Ass Proposal response. All formal RFP’s shall stipulate the due dates that the responses are due. Responses shall be sealed except RFP’s with an expected cost of… less than $10,000: Sealed bids/proposals are not require $10,000 up to $50,000: upon a determination made in advance by the Property Manager and documented that sealed bidding is either not practicable or not fiscally advantageous to the Asso $50,000 or greater: upon authorization in advance by the Executive Committee and documented that sealed bidding is either not practicable or not fiscally advantageous to the Association. When a determination is made to accept unsealed bids or proposals, the responses must be controlled to ensure the confidentiality of the bids or proposals so that the process is not compromised (e.g., the bid/proposal information is not made available to other vendors). Association information concerning specifications, quantity, and transaction conditions for products to be procured should be strictly controlled and made available to potential suppliers on a fair and timely basis. In cases that involve bidding or competitive estimates, conditions of the contract should not be developed, changed, or negotiated to favor a specific bidder. Specifications for a bid proposal must be communicated to all bidder Therefore, substantive changes to specifications previously communicated must be communicated to all bidders to enable them to respond to the altered specifications. The Property Manager may request additional detailed cost or pricing data from any Bidder or Offeror to substantiate that the price or cost offered, or some portion of it, is reasonable if the price is not… based on adequate price competition. based on verifiable established catalog or market price. set by law or regulation. Bid or Proposal Security – Bid or proposal security may be required on solicitations, as the Property Manager deems necessary to protect the Association’s interests. Any such security requirement shall be set forth in the solicitation. Performance and Payment Bonds. – Performance and/or payment bonds may be required, as the Property Manager deems necessary to protect the Association’s interest. Insurance Requirements – Requirements. – The Property Manager shall specify standard supplier insurance requirements and shall establish any specialized insurance coverage in amounts that may be applicable to a given procurement.
5	Awarding the Bid/Contract… Receipt of Proposals and Opening of Bids. Responses to unsealed RFP’s and bids will be stamped to validate date received to ensure compliance with bid requirements. All sealed bids and proposals will remain unopened until after the final date for submission to prevent the sharing of bid information prior to the submission date. The contents of unsealed bids must be closely controlled to ensure the bid information is not shared with other vendors or unauthorized individuals employed by or affiliated with the Association. The name of each offeror responding and the date of the receipt of each proposal shall be recorded and filed in the contract file. Bids and Proposals shall be opened in the presence of two or more Association staff or Board Directors on the date and time designated in the solicitation, if so designated, or as soon as practicable after the final submission date. Evaluating the proposals. Bids and Proposals shall be evaluated based on the requirements set forth in the RFP, which may include criteria to determine acceptability such as inspection, testing, quality, workmanship, delivery, and suitability for a particular purpose. Those criteria that will affect the bid price and will be considered in evaluation for award shall be objectively measurable, such as discounts, transportation costs, and total or life cycle costs. It is recommended that the Treasurer or their designee participate in this evaluation process, for bid awards expected to exceed a cost of $10,000 during the term of the agreement, so they may ascertain the impact of such award on the Association’s operating budget and future homeowner assessments. The RFP may set forth the evaluation criteria to be used. Correction or Withdrawal of Bids; Cancellation of Awards. When the Property Manager determines that it is in the best interest of the Association, an RFP, or other solicitation may be cancelled, or any or all bids or proposals may be rejected in whole or in part. Written documentation of reasons for cancellation or rejection shall be retained in the project file. Except as otherwise provided by the procedures, all decisions to cancel awards or contracts prior to contract execution based on bid mistakes shall be supported by written justification and retained in the contract file.
6	Selection of Vendor… The supplier for each business transaction should be determined in accordance with procurement policies and rational economic criteria such as the character of the goods or services in question (specifications, quality, performance, etc.), the conditions for supplying (delivery date, price, etc.), or the reliability and technical capacity of the supplier. The award will be made to the “Best Value” proposal that meets the minimum requirements of the Request For Proposal (RFP) and that best meets the prioritized criteria for selection. For contracts greater than $1000 (or $1000/year), reasons for any variation in the final selection decision from low cost, or other Selection Criteria when established, shall be documented, and retained in the contract file.
7	Award Notice… The contract shall be awarded promptly by written notice to the bidder whose proposal represents the best value to the Association. In the event of bidding or competitive estimates, or in similar circumstances, potential suppliers who are not selected, should, if they desire, be apprised of the reasons they were not selected.
8	Contract Preparation… Types of Contracts: Any type of contract that will promote the best interests of the Association may be used. Contracts may be issued in the form of a purchase order or as a written contract in accordance with procedures established by the Association. Multi-Year Contracts: A contract may be let for any period of time deemed to be in the best interests of the Association, provided the term of the contract and conditions of renewal or extension, if any, are included in the solicitation, that funds are available for the first fiscal period at the time of contracting, and that the contract term, including renewals and extensions, if any, shall not exceed five (5) years. The above notwithstanding, it is expected that the initial term of goods and services procurement contracts will be for a period of three years or less unless there is a compelling justification for a longer term due to the diminished ability to foresee business and economic conditions for a period longer than three years. Performance terms and conditions must be specified and identified as a condition of continuing the contract through the full term of the agreement. Maintenance and support of licensed software and/or systems containing supplier proprietary intellectual property that must be supported by its owner may be contracted for the planned lifetime of the licensed software or system, regardless of length of term, with the prior authorization of the Board. When evaluating service contract needs and terms, the benefits and risks of a multi-year contract vs. a single year contract should be evaluated. No contracts shall include terms that provide for “automatic renewal” (a.k.a. “rollover” or “evergreen” contracts) without a compelling justification and requires the authorization of the Board. Contract Clauses: All Association contracts shall include provisions to define the responsibilities and rights of the parties to the contract. The Association, in consultation with Legal Counsel, shall establish Standard Terms and Conditions of Agreement for use in Association contracts. The Standard Terms and Conditions of Agreement may be varied as necessary by the Property Manager in consultation with the Association’s Legal Counsel. All written contracts for services and those contracts for goods where the terms and conditions specified are negotiated or complex in nature should be reviewed prior to signing the contract to ensure completeness and accuracy to minimize the Association’s exposure to risk. All Association Agreements should be reviewed by the designee of the Board for the applicability and inclusion of the following clauses. (See example clauses in EXAMPLE CONTRACT TERMS AND CONDITIONS).
9	Commencement of Work… Unless otherwise authorized by the Property Manager, no work shall be commenced nor any goods delivered under any Association contract until all precedent conditions specified in the contract documents have been met, including, but not limited to… the contract has been duly executed by the Association; and the contract has been duly executed by the supplier and, where required, the supplier has furnished certificates of Insurance, performance bonds, payment bonds, and any other contract requirement. Change Orders and Contract Modifications. Contract Renewal. A contract may be renewed provided… the Property Manager makes a written determination that the supplier has performed satisfactorily; the initial contract provided for the renewal; and the contract term, including the renewal period, does not exceed the authority of the Property Manager specified in the Authority to Commit Funds; the Executive Committee concurs that competitive bidding or competitive negotiations is not in the best interests of the Association. Approval of Change Order or Contract Modification. The Property Manager or his or her Designee may approve change orders or contract modifications… to any contract with an original commitment of $5000 or less, provided that the change order or contract modification does not increase the total value of the contract to an amount greater than $5,000, and to any contract with an original commitment of $10,000 or less, provided that the value of the change order or contract modification does not exceed 20% of the original contract amount, or provided that the change order or contract modification does not increase the total value of the contract to an amount greater than $10,000. The Board shall review any change orders and contract modifications in excess of the above amounts prior to execution by the Property Manager.
10	Legal and Contractual Remedies… Dispute Resolution. It is in the best interest of the Association to minimize the costs associated with Dispute Resolution, including legal fees and awards against the Association. Therefore, dispute resolution procedures should be included in competitive bidding negotiations and, where reasonable and practical, Association contract terms should specify that disputes with Vendors that are not resolvable by the parties are to be resolved only through Arbitration. Protests. Right to Protest. Where Competitive Bidding is employed, any actual or prospective supplier who is aggrieved in connection with the solicitation or award of a contract (the “Protestor”), or any party the Protestor has formally designated to the Association to intervene on its behalf, may protest to the Property Manager. In such cases, the Protestor must submit the protest in writing. If the protest alleges any fraud and/or corruption on the part of a supplier, potential supplier or the Association, the Property Manager shall immediately refer the matter to the Executive Committee for review and further action. Stay of Procurements during Protests. In the event of a timely protest under Right to Protest above, i.e., timely is defined as before actions have been taken by the Association or other vendors that would negatively impact the cost of the project or result in delays unacceptable to the Association, the Association shall not proceed further with the solicitation or with the award of the contract unless the Property Manager, after consultation with the User and the Executive Committee, makes a written determination that the award of the contract without delay is necessary to protect substantial interests of the Association. Authority to Settle Protests. The Executive Committee shall have the authority to resolve and settle a protest of an aggrieved supplier, actual or prospective, concerning the solicitation or award of a contract unless the settlement includes a financial settlement, or the protest presents a significant risk of a lawsuit. The Executive Committee’s decision shall be documented, and written notification of the decision shall be: mailed or otherwise furnished immediately to the Protestor or to any party the Protestor has formally designated to the Association to intervene on its behalf and reviewed with the Board for its information. Should the Executive Committee fail to resolve the issue with the Vendor or the Vendor’s designee, or the proposed settlement involves a financial settlement or significant risk of a lawsuit, the Executive Committee shall refer the matter to the Board of Directors for final decision. Board Decision. If the protest is referred to the Board, the Board’s decision shall be final and documented in the contract file. Written notification of the decision shall be mailed or otherwise furnished immediately to the Protestor or to any party the Protestor has formally designated to the Association to intervene on its behalf and a copy placed in the contract file. The notification shall include the basis for the Board’s decision.
11	Contract Execution – Monitoring Performance and Delivery… Contract Administration – The Property Manager shall monitor and evaluate performance to ensure that a supplier is performing in accordance with the terms and conditions of the contract including… Roles and responsibilities of Association Procurement Administrators, End Users, and suppliers from contract award through completion and final payment shall be established to ensure appropriate understanding among all parties. Compliance, Reporting, and determining that contract progress milestones are met, that any disputes or matters of contract interpretation are properly addressed, and that contract files and correspondence are developed, documented, and maintained. Contract Disputes. All contract disputes, including but not limited to claims of breach of contract by a supplier against the Association, shall be resolved by the Board or its designee in accordance with the dispute resolution procedures set forth in the Agreement governing the relationship between the parties and consistent with the Policy detailed in Step 10 above (Legal and Contractual Remedies). The Property Manager will review all disputes. Should the Property Manager fail to resolve contractual issues with the Vendor or the Vendor’s designee or the remedy for the dispute is outside of the authority of the Property Manager, then the Property Manager shall refer the matter to the Executive Committee for further action. If the Executive Committee is unable to resolve the issue or if the dispute resolution requires 3rd party intervention (e.g., arbitration, court proceedings, etc.), the Board must approve the course of action to be pursued.
12	Billing and Payment… Invoice verification. Invoices shall be verified to confirm that receipt quantities, quality, and timing of billings are consistent with the terms of the contract. Payment terms shall be validated to ensure consistency with contract terms. Invoice and payment records shall be maintained to ensure auditability of contract payments and compliance with contract terms. Final payment – shall be made only after confirmation of compliance with terms and conditions related to product or service “deliverables” (e.g., completion of work, quantity and quality that are consistent with contract commitments, etc.) and compliance with payment terms (e.g., consistent invoicing, prepayment reconciliations, etc.). Issues that result in withholding final payment should be communicated promptly to the vendor and every effort made to resolve the issues in a timely manner.
13	Contract Completion… All open issues are resolved with the vendor. Contractor responsibilities for “post-start-up” support are fulfilled Contract files are reviewed for completeness. Association and contractor books and records are audited as appropriate to ensure compliance with the terms and conditions of the contract and in a timely manner. Association inspections/auditing should be carried out at least once per two years to ensure proper implementation of the purchasing policies.