HomeMy WebLinkAboutRES 24-173RESOLUTION NO.24-173
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF BEAUMONT:
WHEREAS, on April 16, 2024, Council approved Resolution 24-097 authorizing the City
Manager to submit a grant application and execute a grant agreement with the General Land
Office in the amount of $300,000,00 for the TX-GLO Resilient Communities Program finding;
and,
WHEREAS, if awarded, this grant will support an updated Comprehensive Plan that is
integrated with our existing Hazard Mitigation Plan; and,
WHEREAS, the GLO requires that the City's Procurement Policies and Procedures 7.3 to
be formally adopted by Council;
NOW, THEREFORE, BE IT RESOLVED BY THE
CITY COUNCIL OF THE CIITY OF BEAUMONT:
THAT the statements and findings set out in the preamble to this resolution are hereby, in
all things, approved and adopted; and,
THAT the City Manager be and he is Hereby authorized to allow the formal adoption of
the City Procurement Policies and Procedures 73.
The meeting at which this resolution was approved was in all things conducted in strict
compliance with the Texas Open Meetings Act, Texas Goverm- ent Code, Chapter 551.
PASSED BY THE
2024,
of the City of Be umont this the 30th day of July,
- Mayor Roy West -
CITY OF BEAUMONT
POLICIES AND PROCEDURES MANUAL
Policy Number. 7.3
Subject: Purchasing Procedures
Approved by: Kenneth R. Williams /
City Manager / Date
1. PURPOSE
Effective Date:
Cheryl Ray /
Chief Financial Officer / Date
The purpose of this policy is to define the functions, responsibilities, and inter -departmental
relations to the City's procurement practices.
A. The policy of the City of Beaumont is to assure good control and coordination of City-
wide procurement, reporting capabilities for management, equitable treatment of
vendors and service providers, and adherence to Federal, State, and local law
applicable to municipal procurement. This policy will be achieved through a
centralized purchasing system realizing that there are circumstances where certain
procurement activities are better handled within a project organization or a project
site, while remaining under appropriate centralized management control through the
establishment of agreed upon policies and procedures.
B. There are also other circumstances when certain specialized procurement activities
may be handled separately by departments other than Purchasing. However, these
activities should be under the general policy guidance of this directive unless
otherwise exempted. References to Purchasing apply equally as well to special
purchasing activities unless otherwise stated.
II. OBJECTIVES
The policies and procedures are to assist City personnel by defining general and specific
management decisions as included in, but not limited to the following:
1. to define procurement authority, activities, and procedures;
2. to clarify inter -departmental responsibilities and relations;
3. to develop improved policies and procedures through ongoing review and update;
4. to assist in supervision;
S. to standardize and communicate approved practices;
b, to promote understanding, cooperation, and a sense of equitable treatment among
suppliers;
7.3 Purchasing Procedures Page 1 of 23
7. to assist in training and personnel development;
S. to maintain efficient management practices.
III. DEFINITIONS
A. Activity Statement - The monthly activity statement is provided to the procurement
card user to reconcile transactions.
B. Blanket Purchase Order - Refers to an unspecified request for supplies, usually for
contracted services and supplies.
C. Budmet Authorization - The budget is the document through which appropriations for
various expenditures are authorized to departments by the City Council.
D. City Council Authorization - Any purchase in excess of $50,000 must have Council
approval before the goods or services are ordered, except in cases of emergency, ha
cases of an emergency, (threat to public health on in cases where the Mayor declares
a state of emergency) the Council will be advised of the purchase as quickly as
possible.
E. Commitment Authorization - Refers to those individuals who have been delegated the
authority from the City Manager to commit the City for materials, equipment,
supplies, and services.
F. Competitive Sealed Bids and Proposals - As authorized by the State Purchasing Law,
Ch. 252 of the Local Government Code.
Competitive Sealed Bids are used in the procurement of goods and services
required by the City. Quotations are solicited by issuing notice by mail,
facsimile, newspaper advertisement or internet posting. Public notice
requirement shall remain consistent with current guidelines listed in Section
252.041 of the Local Government Code.
2. Competitive Sealed Proposals - The competitive sealed proposal procedure,
also called a Request for Proposal (RFP), is used in the procurement of high
technology acquisitions and other purchases that will obtain the best value.
Competitive Sealed Proposals shall specify relative importance of price and
other factors, with the award of contract being made to the responsible bidder
whose proposal is determined to be most advantageous to the City, taking into
consideration all evaluation factors set forth in the Competitive Sealed
Proposal. All quotations shall be solicited through the Competitive Sealed
Proposal. Public notice for Competitive Sealed Proposals shall be made in the
same manner as applicable formal bidding requirements. This section shall not
apply to procurement exempted from competitive bidding as defined by State
law,
G. Contractual Agreement - Refers to any contract for purchase of goods or services.
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H. Federally Debarred and Excluded Parties -Before expending federal and state funds,
the debarment status of the vendor Must be verified -using the Excluded Parties List
System (EPLS) itttl)s.-Hsain,goy/content/exeltisions. (Refer to Federal Debarred and
Excluded Parties Policy, Policy 7.12.)
I. Formal bids - Written bids are solicited for expenditures of more than $50,000
requiring public notice for a minimum of fourteen (14) days prior to bid opening.
J. Informal bids - Written bids for expenditures less than $50,000. Informal bids may
be received by facsimile or mail.
K. Insurance Requirements - Before any individual or company can enter into a contract
for performance of a specified service for the City of Beaumont, proof of commercial
general liability insurance and workers' compensation insurance, in the amount
specified, must be provided prior to commencement of the work. There shall be no
exceptions to this requirement except in a state of emergency.
L. Local Bidder Preferences — Under Local Government Code, Sections 271905(a) and
271.9051, the City may consider a vendor's place of business in awarding certain
contracts competitively bid. (Refer to Local Bidder Preference Policy, Policy 7.14.)
M. Procurement Card - The procurement card is used to purchase items needed in the
work environment with a value of $500 or less.
N. Purchasing - The process through which materials, supplies, and services are
obtained for the operation of the organization.
O. Purchase Order - The document used to initiate and control purchases.
P. Receipt - No Invoice - The receipt of goods or services electronically. Receipt of
goods and services is by item only.
Q. Requisition Entry - Purchase Requisitions are entered directly into the computer
system by an authorized departnient/division representative.
R. Vendor Favoritism - Favorable treatment toward a vendor can mean, for example,
improper advance notice of a request for bids, obtaining normally unavailable
information, and obtaining normally unavailable information, being allowed to subunit
bids after a deadline, and obtaining acceptance for substandard goods.
IV. RESPONSIBILITIES
A. City Council must authorize all purchase of supplies, materials, and goods in excess
of $50,000 except in an emergency.
B. The Purchasing Manager has responsibility for the procurement of all goods and
services, and to either provide the service for such procurement and processing or give
functional directions to others delegated the authority to perform such services.
7.3 Purchasing Procedures Page 3 of 23
C. Purchasing has the responsibility for obligating the City and for making the final
determination of sources of supply, quantities purchased, delivery schedule, and price
negotiations, except where others are so authorized. The decisions will be made in
conjunction with operational and staff departments, as appropriate.
D. Purchasing is to serve as the exclusive channel through which all requests regarding
Prices and products are handled. Purchasing will conduct all correspondence with
suppliers involving prices or quotations. In cases where technical details are
necessary, the using department ruay correspond with suppliers. In such cases, the
Purchasing Staff should be provided with copies of all such correspondence. Close
communication and coordination between Purchasing and the using departments is
essential in obtaining the best product or service at the lowest cost to the City.
E. All negotiations are to be handled by the appropriate Purchasing division personnel
within their delegated authority. -
P. When supplier representatives make personal sales calls to a department without
special invitation, they are to be directed to the appropriate Buyer in the Purchasing
Division.
G. No employee engaging in the purchasing activities shall accept anything of material
value from any vendor or potential vendor. Discretion shall be practiced to avoid any
perception of the possibility of vendor favoritism or competitive advantage.
H. No officer or employee of the City shall have a financial interest, direct or indirect, or
by reason of ownership of stock in any corporation, in any contract with the City, or
be financially interested directly or indirectly in the sale to the City of any land,
materials, supplies, or services except on behalf of the City as an officer or employee,
provided, however, that the provisions of this Section shall only be applicable when
the stock owned by the officer or employee exceeds one percent (1%) of the total
capital stock of the corporation. Any willful violation of this section shall constitute
malfeasance in office and any officer or employee guilty thereof shall thereby forfeit
the office or position. Any violation of this section with the knowledge expressed or
implied of the person or corporation contracting with the governing body of the City
shall render the contract voidable by the City Council. (City Charter, Article XVII,
Section 9)
I. Purchasing is responsible for ensuring competition whenever possible by soliciting
at least three (3) price quotations for both informal ($5,000 to $50,000) and formal
bids (over $50,000). These quotes must be documented and available to Management
unless an exception as defined by Local Government Code, Chapter 252.022 exists.
7. Historically Underutilized Business (HUB) - Before an expenditure of more than
$3,000 and less than $50,000 can be made, at least two (2) disadvantaged businesses
shall be contacted. Businesses must be registered with the City of Beaumont as a
Minority Business Enterprise.
Page 4 of 23
7.3 Purchasing Procedures
K. The department director or his/her designee must originate all purchases of goods and
services with a computer -generated requisition, approved electronically by a
designated division manager or department director.
L. The Purchasing Manager has responsibility for maintaining a uniform set of
procedures and forms to expedite the bidding process. This shall include mechanisms
for vendor notification, bid analysis and summary, bidder mailing list applications,
competitive invitations, instructions to bidders, policy statement of bid award, sealed
bid envelopes, and advertising procedures consistent with Federal, State, and local
requirements.
M. The City Council or their designee shall have power to reject all bids and advertise
again.
N. The City Manager- or his/her designee shall assure that City improvement contracts
exceeding $25,000 be awarded to the lowest, responsible bidder meeting
specifications after such public notice and competition as prescribed by State law.
Alterations or change orders may be made and approved by the City Manager,
provided such alterations or change orders do not increase the cost to the City more
than ten percent (10%) of the original amounts. Any single change in excess of
$10,000 shall be approved by the City Council.
O. The City Manager or his/her designee is responsible to assure that all commitments to
a vendor or service provider are stated in writing by purchase order, contract, or letter
with appropriate terms, and signed by one of the following:
I. City Manager;
2. Chief Financial Officer;
3. Purchasing Manager or his/her designee.
P. Any employee of the City of Beaumont who makes a written or verbal commitment
to purchase material, equipment, or services for the City and is not authorized under
one of the above categories is subject to disciplinary action, legal action, and personal
liability.
V. PROCEDURES/RULES
A. Requisition Entry - All requisitions are entered directly into the computer system for
all goods and services. Sufficient information relative to items, quantity, and price
are required. Required fields for completion of requisition are delivery date, name of
the requisition entry cleric, reason for purchase, and ship to location.
B, First Level Approval - Once the requisition order has been entered, it is forwarded
electronically to first level approval for review and authorization. The individual
approving this level should be a Department Director or his/her designee, i.e.
Division Manager, Supervisor, etc.
After approval at first level, the requisition is forwarded to buyer processing unless
the expenditure is over $5,000; funding is not available in the account designated
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(there is no budget or account is over budget); the expenditure is in excess of
$10,000; or the expenditure will be posted to an account in one of the various
grant funds. Should any of these occur, the requisition is forwarded to second level,
third level or fourth level approval for review and authorization.
C. Second Level Approval — fn the System, this level is called "REQ 2ND LEVEL OP
FUNDS". This level is for requisitions that are over $5,000. This level should be
approved by a Departnnent Director or his/her designee. At NO TIME should the
salve person, other than a Department Director, approve first and second level.
D. Third Level Approval — In the System, this level is called "APP OVR
BUDGT/OVR $10,000". This level is for expenditures that are in excess of
$10,000 or being posted to an account that is over budget at that time or does not
have a budget. Only the Chief Financial Officer and other designated Finance staff
can approve at this level. Upon approval at first or second level, if a requisition
meets this criteria, the Finance Staff will be sent an email notification by the System
to alert them that a requisition needs approval.
E. Fourth Level Approval — hi the System, this level is called "GRANT # (with the
grant fund number designated)". This level is for expenditures that will be posted
to account numbers within funds that account for the City's federal and state
grants, such as Fund 231 Miscellaneous Grants, Fund 241 Police Grants, Fund
258 Health Grants, Fund 264 CDBG Grants, etc. Only Chief Financial Officer and
other designated Finance staff can approve at this level. Upon approval at first,
second, or third level, if a requisition meets the criteria of each, the Grants Staff will
be sent an email notification by the System to alert then that a requisition needs
approval.
F. Buyer Processing - After first level and/or second level, third level, and fourth level
approval, as described above, the requisition is sent to Buyer Processing for bid
solicitation.
G. Purchase Order - The Purchasing Division generates a Purchase Order from the
entered requisition. The vendor, after receiving the Purchase Order, ships the goods
with a packing or delivery slip. The invoice will be sent directly to the City's
Accounts Payable office.
H. Blanket Purchase Order A type of purchase order used by departments that
purchase a variety of items on a frequent basis from the same vendor. Blanket
orders are to be used primarily for goods or services that are under contract.
Received -No Invoice - The receiving department acknowledges the receipt of goods
electronically by indicating the number of items received. This acknowledgment
authorizes the Accounts Payable Division to pay for the items received at the price
7.3 Purehasing Procedures Page 6 of 23
stated on the purchase order. Users must be authorized to the account number stated
on the purchase order.
J. Procurement Card - The procurement card may be used by departments to purchase
items with a value of $500 or less. The procurement card is for business purposes
only and may not be used for personal or travel transactions. Cards are issued to
individuals for purchases needed in the field. (Refer to specific Procurement Card
Procedures, Policy 7.4.)
K. Sam's Club Card- The Sam's Club card may be used by departments to purchase
items with a value of $500 or less. The Sam's Club card is for business purposes only
and may not be used for personal transactions. Cards are issued to individuals for
purchases needed in the field. (Refer to specific Sam's Card Procedures, Policy 7.11.)
VI. PROC
In order for the City to be in compliance with Federal Procurement Standards under
2 C.F.R. 200, the following subsections apply to the City's purchases and procurements
using Federal Awards and/or Funds:
A. §200.318 General Procurement Standards
1. The City shall use its own doeumented procurement procedures which
reflect applicable state and local laws and regulations, provided that the
procurements conform to applicable Federal law and the standards identified
in this section.
2. The City shall maintain oversight to ensure that contractors perform in
accordance with the terms, conditions, and specifications of their contracts
or purchase orders.
3. The City shall maintain written standards of conduct covering conflicts of
interest and governing the performance of its employees engaged in the
selection, awards and administration of contracts. No employee, officer, or
agent of the City must participate in the selection or award if he or she has a
real or apparent conflict of interest. Such a conflict of interest would arise
when the employee, officer or agent, any member of his or her immediate
family, his or her partner, or an organization which employees or is about to
employ any of the parties indicated herein, has a financial or other interest in
or a tangible personal benefit from a firm considered for a contract. The
officers, employees, and agents of the City must neither solicit nor accept
7.3 Purchasing Procedures Page 7 of 23
gratuities, favors or anything of monetary value from contractors or parties
to subcontracts. However, the City may set standards for situations in which
the financial interest is not substantial, or the gift is an unsolicited item of
nominal value. The standards of conduct must provide for disciplinary
actions to be applied for violations of such standards by officers, employees,
or agents of the non -Federal entity.
a. If the City has a parent, affiliate or subsidiary organization that is not a
State, local government or Indian tribe, the non -Federal entity must
also maintain written standards of conduct covering organizational
conflicts of interest. — "Organizational conflicts of interest means that
because of relationships with a parent company, affiliate, or subsidiary
organization, the City is unable or appears to be unable to be impartial
in conducting a procurement action involving a related organization."
4. The City's procedures must avoid acquisition of unnecessary or duplicative
items. Consideration should be given to consolidating or breaking out
procurements to obtain a more economical purchase. Where appropriate, an
analysis will be make of lease versus purchase alternatives, and any other
appropriate analysis to determine the most economical approach.
5. To foster greater economy and efficiency, and in accordance with efforts to
promote cost-effective use of shared services across the Federal
government, the City shall consider entering into state and local
intergovernmental agreements or inter -entity agreements where appropriate
for procurement or use of common or shared goods and services.
6. The City shall consider using Federal excess and surplus property in lieu of
purchasing new equipment and property wherever such use is feasible and
reduces project costs.
7. The City shall consider using value engineering clauses in contracts for
construction projects of sufficient size to offer reasonable opportunities for
cost reductions. Value engineering is a systematic and creative analysis of
each contract item or task to ensure that its essential function is provided at
the overall lower cost.
S. The City shall award contract only to responsible contractors possessing the
ability to perform successfully under the terms and conditions of a proposed
procurement. Consideration will be given to such matters as contractor
integrity, compliance with public policy, record of past performance, and
financial and technical resources.
7.3 Purchasing Procedures Page 8 of 23
9. The City shall maintain record sufficient to detail the history of
procurement. These records will include but are not necessarily limited to
the following: rationale for the method of procurement, selection of
contract type, contractor selection or rejection, and the basis for the
contract price.
10. The City may use a time and material type contract only after a
determination that no other contract is suitable and if the contract includes
a ceiling price that the contractor exceeds at its own risk. Time and
material type contract means a contract whose cost to the City is the sum
of:
a. The actual cost of materials; and
b. Direct labor hours charged at fixed hourly rate that reflect wages,
general and administrative expenses, and profit.
c. Since the formula generates an open-ended contract price, a time and
materials contract provides no positive profit incentive to the
contractor for cost control or labor efficiency. Therefore, each contact
must set a ceiling price that the contractor exceeds at its own risk.
Further, the City awarding such a contract must assert a high degree of
oversight in order to obtain reasonable assurance that the contractor is
using efficient methods and effective cost controls.
11. The City alone shall be responsible, in accordance with good
administrative practice and sound business judgement, for the settlement
of all contractual and administrative issues arising out of procurements.
These issues include, but are not limited to, source evaluation, protests,
disputes and claims. These standards do not relieve the City of any
contractual responsibilities under its contracts. The federal awarding
agency will not substitute its judgement for that of the City unless the
matter is primarily a federal concern. Violations of law will be referred to
the local, state, or federal authority having proper jurisdiction.
�200.31.9 COMPETITION
1. All procurement transactions shall be conducted in a manner providing fuull and open
competition consistent with the standards of this section. In order to ensure objective
contractor performance and eliminate unfair competitive advantage, contractors that
develop or draft specifications, requirements, statements of work, and invitations for
bids or requests for proposals must be excluded from competing for such procurements.
Some of the situations considered to be restrictive of competition include but are not
limited to:
73 Purchasing Procedures Page 9 of 23
Placing unreasonable requirements on firms in order for them to qualify to do
business;
b. Requiring unnecessary experience and excessive bonding;
c. Noncompetitive pricing practices between firms or between affiliated companies;
d. Noncompetitive contracts to consultants that are on retainer contracts;
e. Organizational conflicts of interest;
f. Specifying only a "brand name" product instead of allowing "an equal" product
to be offered and describing the performance or other relevant requirements of the
procurements, and;
g. Any arbitrary action in the procurement process.
2. The City shall conduct procurements in a manner that prohibits the use of statutorily or
administratively imposed state, local or tribal geographical preferences in the
evaluation of bids or proposals, except in those cases where applicable Federal statutes
expressly mandate or encourage geographic preference. Nothing in this section
preempts state licensing laws. When contracting for architectural and engineering
(A/E) services, geographic location may be a selection criterion provided its application
leaves an appropriate number of qualified firms, given the nature and size of the project,
to compete for the contract.
3. The City shall adhere to the following procedures for procurement transactions. All
solicitations shall:
Incorporate a clear and accurate description of the technical requirements for the
material, product, or service to be procured. Such description must not, in
competitive procurements, contain features which unduly restrict competition. The
description may include a statement of the qualitative nature of the material,
product or service to, be procured and, when necessary, must set forth those
minimum essential characteristics and standards to which it must conform if it is to
satisfy its intended use; and
b. Detailed product specifications should be avoided if at all possible. When it is
impractical or uneconomical to make a clear and accurate description of the
technical requirements, a "brand name or equivalent" description may be used as a
means to define the performance or other salient requirements of procurement. The
specific features of the named brand which must be met by offers must be clearly
stated; and
7.3 Purchasing Procedures Page 10 of 23
c. The City shall identify all requirements which the offerors must fulfill and all other
factors to be sued in evaluating bids or proposals.
4. The City shall ensure that all prequalified lists of persons, firms, or products which are
used in acquiring goods and services are current and include enough qualified sources
to ensure niaximunr open and free competition. Also, the City shall not preclude
potential bidders from qualifying during the solicitation period.
C. §200.320 METHODS OF PROCUREMENT TO BE FOLLOWED
The City shall use one of the following methods of procurement:
Procurement by micro -purchases. Procurement by micro -purchase is the acquisition
of supplies or services, the aggregate dollar amount of which does not exceed $5,000",
except as otherwise discussed in the Federal Acquisition Regulations subpart 2.1. To
the extent practicable, the City shall distribute micro -purchases equitably among
qualified suppliers. Micro -purchases may be awarded without soliciting quotations if
the City considers the price to be reasonable.
2. Procurement by small purchase procedures. Small purchase procedures are those
relatively simple and informal procurement methods for securing services, supplies, or
other property that do not cost more than the Simplified Acquisition Threshold
(currently $150,000.00). If small purchase procedures are used, price or rate quotations
must be obtained from an adequate number of qualifies sources.
3. Procurement by sealed bids (formal advertising). Bids are publicly solicited, and a firm
fixed price contract (lump sum or unit price) is awarded to the responsible bidder whose
bid, conforming with all the material terms and conditions of the invitation forbids, is
the lowest in price. The sealed bid method is the preferred method for procuring
construction, if the conditions in paragraph (3) (a) of this section apply.
a. In order for sealed bidding to be feasible, the following conditions should be
present:
(1) A complete, adequate, and realistic specification or purchase description is
available;
(2) Two or more responsible bidders are willing and able to conhpete
effectively for the business; and
a Under 2 C.F.R. § 200.320(A), the aggregate dollar amount threshold for micro -purchases for acquisition of supplies
or services is $10,000,00. However, the City's standard threshold for these purchases is $5,000.00, so the more
restrictive amount is referenced for consistency in the purchasing policy.
7.3 Putcliasing Procedures Page l l of 23
(3) The procurement lends itself to a firm fixed price contract and the
selection of the successful bidder can be made principally on the basis of
price.
b. If sealed bids are used, the following requirements apply:
(1) Bids must be solicited from an adequate number of known suppliers,
providing them sufficient response time prior to the date set for opening
the bids, for local, and tribal governments, the invitation for bids must be
publicly advertised;
(2) The invitation for bids, which will include any specifications and pertinent
attachments, must define the items or services in order for the bidder to
properly respond;
(3) All bids will be opened at the time and place described in the invitation for
bids, and for local and tribal governments, the bids must be opened
publicly;
(4) A firm fixed price contract award will be made in writing to the lowest
responsive and responsible bidder. Where specified in bidding
documents, factors such as discounts, transportation cost, and life cycle
costs must be considered in determining which bid is lowest. Payment
discounts will only be used to determine the low bid when prior
experience indicates that such discounts are usually taken advantage of,
and
(5) Any or all bids may be rejected if there is a sound documented reason.
4. Procurement by competitive proposals. The technique of competitive proposals is
normally conducted with more than one source submitting an offer, and either a fixed
price or cost reimbursement type contract is awarded. It is generally used when
conditions are not appropriate for the use of sealed bids. If this method is used, the
following requirements apply:
a. Requests for proposals shall be publicized and identify all evaluation factors and
their relative importance. Any response to publicized requests for proposals must
be considered to the maximum extent practical;
b. Proposals shall be solicited from an adequate number of qualified sources;
7.3 Purchasing Procedures Page 12 of 23
c. The city shall have a written method for conducting technical evaluations of the
proposals received and for selecting recipients.
d. Contracts shall be awarded to the responsible firm whose proposal is most
advantageous to the program, with price and other factors considered; and
e. The City may use competitive proposal procedures for qualifications -based
procurement of architectural/engineering (AIE) professional services whereby
competitors' qualifications are evaluated and the most qualified competitor is
selected, subject to negotiation of fair and reasonable compensation. The method,
where price is not used as a selection factor, can only be used in procurement of
AB professional services. It cannot be used to purchase other typed of services
though A/E firms are a potential source to perform the proposed effort.
S. Procurement by noncompetitive proposals. Procurement by noncompetitive
proposals is procurement through solicitation of a proposal from only one source
and may be used only when one or more of the following circumstances apply:
a. The item is available only from a single source;
b. The public exigency (not an emergency but requires immediate action) or
emergency (threats to health, life or safety) for the requirement will not permit
a delay resulting from competitive solicitation. Once the documented
exigency or emergency period ends, the City must transition to a full and
openly awarded contract;
c. The Federal awarding agency or pass -through entity expressly authorizes
noncompetitive proposals in response to a written request from the City; or
d. After solicitation of a number of sources, competition is determined inadequate.
D. V00.321 CONTRACTING WITH SMALL AND MINORITY BUSINESSES,
WOMEN'S BUSINESS ENTERPRISES, AND LABOR SURPLUS AREA FIRMS
1. The City shall take all necessary affirmative steps to assure that minority businesses,
women's business enterprises, and labor surplus area firms are used when possible.
2. Affirmative steps must include:
a. Placing qualified small and minority businesses and women's business
enterprises on solicitation lists;
7.3 Purchasing Procedures Page 13 of 23
E.
F.
b. Assuring that small and minority businesses, and women's business
enterprises are solicited whenever they are potential sources;
c. Dividing total requirements, when economically feasible, into smaller tasks or
quantities to permit maximum participation by small and minority businesses,
and women's business enterprises;
d. Establishing delivery schedules, where the requirement permits, which
encourage participation by small and minority businesses, and women's
business enterprises;
e. Using the services and assistance, as appropriate, of such organizations as the
Small Business Administration (SBA) and the Minority Business
Development Agency of the Department of Commerce (DOC); and
f. Requiring the prime contractor, if subcontracts are to be let, to take the
affirmative steps listed in paragraphs (a) through (e) of this section.
&200.323 PROCUREMENT OF RECOVERED MATERIALS
1. A non -Federal entity that is a state agency or agency of a political subdivision of a
state and its contractors mush comply with section 6002 of the Solid Waste
Disposal Act, as amended by the Resource Conservation and Recovery Act. The
requirements of Section 6002 include procuring only items designated in
guidelines of the Environmental Protection Agency (EPA) at 40 CFR part 247
that contain the highest percentage of recovered materials practicable, consistent
with maintaining a satisfactory level of competition, where the purchase price of
the item exceeds $10,000 or the value of the quantity acquired during the
preceding fiscal year exceeded $10,000; procuring solid waste management
services in a manner that maxitnizes energy and resource recovery; and
establishing an affirmative procurement program for procurement of recovered
materials identified in the EPA guidelines.
�200.324 CONTRACT COST AND PRICE
1. The City shall perform a cost or price analysis in connection with every
procurement action in excess of the Simplified Acquisition Threshold including
contract modifications. The method and degree of analysis is dependent on the facts
surrounding the particular procurement situation, but as a starting point, the City must
make independent estimates before receiving bids or proposals.
7.3 Purchasing Procedures Page 14 of 23
2. The City shall negotiate a profit as a separate element of the price for each contract in
which there is no price competition and in all cases where cost analysis is performed.
To establish a fair and reasonable profit, consideration must be given to the
complexity of the work to be performed, the risk borne by the contractor, the
contractor's investment, the amount of subcontracting, the duality of its record of past
performance, and industry profit rates in the surrounding geographical area for
similar work.
3. Costs or priced based on estimated costs for contract under the Federal award are
allowable only to the extent that costs incurred, or cost estimates included in negotiated
prices would be allowable for the lion -Federal entity under Subpart E — Cost Principles
of this part. The lion -Federal entity may reference its own cost principles that comply
with the Federal cost principles.
4. The cost plus a percentage of cost and percentage of construction cost methods of
contracting shall not be used.
G. 200.325 FEDERAL AWARDING AGENCY OR PASS -THROUGH ENTITY
REVIEW
f . The City shall make available, upon request of the Federal awarding agency or pass -
through entity, technical specifications on proposed procurements where the Federal
awarding agency or pass -through entity believes such review is needed to ensure that
the item or service specified is the one being proposed for acquisition. This review
generally will take place prior to the tine the specification is incorporated into a
solicitation document.
2. The City shall make available upon request, for the Federal awarding agency or pass -
through entity pre -procurement review, procurement documents, such as requests for
proposals or invitations for bid, or independent cost estimates when:
a. The City's procurement procedures or operation fails to comply with the
procurement standards in this part;
b. The procurement is expected to exceed the Simplified Acquisition Threshold and
is to be awarded without competition or only one bid or offer is received in response
to a solicitation;
c. The procurement, which is expected to exceed the Simplified Acquisition
Threshold, specifies a "brand name" product;
7.3 Purchasing Procedures Page 15 of 23
d. The proposed contract is more than the Simplified Acquisition Threshold and is to
be awarded to other than the apparent low bidder under a sealed bid procurement;
or
e. A proposed contract modification changes the scope of a contract or increases the
contract amount by more than the Simplified Acquisition Threshold.
3. The City is exempt from the pre -procurement review in paragraph 2 of this section if
the Federal awarding agency or pass -through entity determines that its procurement
systems comply with the standards under 2 C.F.R. pt. 200 and this part.
a. The City may request that its procurement system be reviewed by the Federal
awarding agency or pass -through entity to determine whether its system meets these
standards for its system to be certified. Generally, these reviews must occur where
there is continuous high -dollar funding, and third -party contracts are awarded on a
regular basis.
b. The City may self -certify its procurement system. Such self -certification must not
limit the Federal awarding agency's right to survey the system. Under a self -
certification procedure, the Federal awarding agency may rely on written
assurances from the City that it is complying with these standards. The City must
cite specific policies, procedures, regulations, or standards as being in compliance
with these requirements and have its system available for review.
H. §200.326 BONDING REQUIREMENTS
1. For construction or facility improvement projects, contracts or subcontracts beneath
the Simplified Acquisition Threshold, the City must follow its own bonding policy
and requirements.
2. For construction or facility improvement projects, contracts or subcontracts exceeding
the Simplified Acquisition Threshold, the Federal awarding agency or pass -through
entity may accept the bonding policy and requirements of the City provided that the
Federal awarding agency or pass -through entity has made a determination that the
Federal interest is adequately protected. If such a determination had not been made,
the minimum requirements must be as follows:
a. A bid guarantee from each bidder equivalent to five percent (5%) of the bid price.
The "bid guarantee" must consist of a firm commitment such as a bid bond, certified
check, or other negotiable instrument accompanying a bid as assurance that the
7.3 Purchasing Procedures Page 16 of 23
bidder will, upon acceptance of the bid, execute such contractual documents as may
be required within the time specified.
b. A performance bond on the part of the contractor for one hundred percent (100%)
of the contract price. A "performance bond" is one executed in connection with a
contract to secure fulfillment of all the contractor's obligations under such contract.
c. A payment bond on the part of the contractor for one hundred percent (100%) of
the contract price. A "payment bond" is one executed in connection with a contract
to assure payment as required by law of all persons supplying labor and material in
the execution of the work provided for in the contract.
I. 200.327 CONTRACT PROVISIONS
1. The City's contracts must contain the applicable provisions described in Appendix II
to Part 200 -- Contract Provisions for non -Federal Contracts Under Federal Awards,
found at 2 C.F.R. 326.
J. M0.328 FINANCIAL REPORTING
Unless otherwise approved by OMB, the Federal awarding agency must solicit only the
OMB -approved governmentwide data elements for collection of financial information (at
time of publication the Federal Financial Report or such future, OMB -approved,
govemmentwide data elements available from the OMB -designated standards lead. This
information must be collected with the frequency required by the terms and conditions of
the Federal award, but no less frequently than annually nor more frequently than quarterly
except in unusual circumstances, for example where more frequent reporting is necessary
for the effective monitoring of the Federal award or could significantly affect program
outcomes, and preferably in coordination with performance reporting. The Federal
awarding agency must use OMB approved common information collections, as applicable,
when providing financial and performance reporting information.
K. SUSPENSION AND DEBARMENT
1. The City and its contractors are subject to the debarment and suspension regulations
implementing Executive Order 12549, Debarment and Suspension (1986) and
Executive Order 12689, Debarment and Suspension (1989) at 2 C.F.R. Part 180 and
the Department of Homeland Security's (DHS's) regulations at 2 C.F.R. Part 3000
(Nonprocurement Debarment and Suspension).
73 Purchasing Procedures Page 17 of 23
2. These regulations restrict awards, subawards and contract with certain parties that are
debarred, suspended or otherwise excluded from or ineligible for participation in
Federal assistance programs and activities. See 2 C.F.R. Part 200, Appendix II, ¶ 1;
and Chapter IV, � 6.d and Appendix C, T 2. A contract award must not be made to
parties listed in the System for Award Management (SAM) Exclusions. SAM
Exclusions is the list maintained by the General Services Administration that contains
the names of parties debarred, suspended or otherwise excluded by agencies, as well as
parties declared ineligible under statutory or regulatory authority other than Executive
Order 12549. SAM Exclusions can be accessed at www,saiu.gov. See 2 C.F.R. §
180.530; Chapter IV, ¶ 6A and Appendix C, ¶ 2. It is the City's responsibility to check
that list prior to the award of a contract. The City's policy will be to check this list
before issuing any payment on a contract.
3. In general, an excluded party cannot receive a Federal grant award or a contract
within the meaning of a "covered transaction," to include subawards and
subcontracts. This includes parties that receive Federal funding indirectly, such as
contractors to recipients and subrecipients. The key to the exclusion is whether there
is a covered transaction, which is any non -procurement transaction (unless excepted)
at either a primary or secondary tier. Although covered transactions do not include
contracts awarded by the Federal Government for purposes of the non -procurement
common rule and DHS's implementing regulations, it does include some contracts
awarded by recipients and subrecipients. Specifically, a covered transaction includes
the following contracts for goods or services:
a. The contract is awarded by a recipient or subrecipient in the amount of at least
$25,000;
b. The contract requires the approval of the Federal awarding agency, regardless of
the amount;
c. The contract is for Federally -required audit services; or
d. A subcontract is also a covered transaction if it is awarded by the contractor of a
recipient or subrecipient and requires either• the approval of the Federal awarding
agency or is in excess of $25,000.
7.3 Purchasing Procedures Page 19 of 23
Appendix I1 to Part 200 - Contract Provisions for Non -Federal Entity Contracts Under
Federal Awards
In addition to other provisions required by the Federal agency or non -Federal entity, all contracts
made by the non -Federal entity under the Federal award must contain provisions covering the
following, as applicable.
(A) Contracts for more than the simplified acquisition threshold, which is the inflation adjusted
amount determined by the Civilian Agency Acquisition Council and the Defense Acquisition
Regulations Council (Councils) as authorized by 41 U.S.C. 1908, must address administrative,
contractual, or legal remedies in instances where contractors violate or breach contract terms,
and provide for such sanctions and penalties as appropriate.
(B) All contracts in excess of $10,000 must address termination for cause and for convenience
by the non -Federal entity including the manner by which it will be effected and the basis for
settlement.
(C) Equal Employmeart Opportunity. Except as otherwise provided under 41 CFR Part 60, all
contracts that meet the definition of "federally assisted construction contract" in 41 CFR Part
60-1.3 must include the equal opportunity clause provided under 41 CFR 60-1_.4(6), in
accordance with Executive Order 11246, "Equal Employment Opportunity" (30 FR 12319,
12935, 3 CFR Part, 1964-1965 Comp., p. 339), as amended by Executive Order 11375,
"Amending Executive Order 11246 Relating to Equal Employment Opportunity," and
implementing regulations at 41 CFR part 60, "Office of Federal Contract Compliance
Programs, Equal Employment Opportunity, Department of Labor."
(D) Davis -Bacon Act, as amended (40 U.S.C. 3141-3148). when required by Federal program
legislation, all prime constriction contracts in excess of $2,000 awarded by non -Federal entities
must include a provision for compliance with the Davis -Bacon Act (40 U.S.C. 3141-3144, and
3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, "Labor
7.3 Purchasing Procedures Page 19 of 23
Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted
Construction"). In accordance with the statute, contractors must be required to pay wages to
laborers and mechanics at a rate not less than the prevailing wages specified in a wage
determination made by the Secretary of Labor. In addition, contractors must be required to pay
wages not less than once a week. The non -Federal entity must place a copy of the current
prevailing wage determination issued by the Department of Labor in each solicitation. The
decision to award a contract or subcontract must be conditioned upon the acceptance of the wage
determination. The non -Federal entity must report all suspected or reported violations to the
Federal awarding agency. The contracts must also include a provision for compliance with the
Copeland "Anti -Kickback" Act (40 U.S.C. 3145), as supplemented by Department of Labor
regulations (29 CFR Part 3, "Contractors and Subcontractors on Public Building or Public Work
Financed in Whole or in Part by Loans or Grants from the United States"), The Act provides that
each contractor or subrccipietrt must be prohibited from inducing, by any nleans, any person
employed in the construction, completion, or repair of public work, to give up any part of the
compensation to which he or she is otherwise entitled. The non -Federal entity must report all
suspected or reported violations to the Federal awarding agency.
(E) Contract Work Hours and Safety Standards Act (40 U.S.C. 3701-3708). Where applicable,
all contracts awarded by the non -Federal entity in excess of $100,000 that involve the
employment of mechanics or laborers must include a provision for compliance with 40 U.S.C.
3702 and 3704, as supplemented by Department of Labor regulations (29 CFR Part 5). Under
40 U.S.C. 3702 of the Act, each contractor must be required to compute the wages of every
mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the
standard work week is permissible provided that the worker is compensated at a rate of not less
than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the
work week. The requirements of 40 U.S.C. 3704 are applicable to construction work and
provide that no laborer or mechanic must be required to work in surroundings or under
working conditions which are unsanitary, hazardous or dangerous. These requirements do not
apply to the purchases of supplies or materials or articles ordinarily available on the open
market, or contracts for transportation or transmission of intelligence.
(F) Rights to Inventions Made Under a Contract or Agreement. If the Federal award meets the
definition of "funding agreement" under 37 CFR § 401.2 (a) and the recipient or subrecipient
wishes to enter into a contract with a small business firm or nonprofit organization regarding
the substitution of parties, assignment or performance of experimental, developmental, or
research work under that "funding agreement," the recipient or subrecipient must comply with
the requirements of 37 CFR Part 401, "Rights to Inventions Made by Nonprofit Organizations
and Small Business Firms Under Government Grants, Contracts and Cooperative
Agreements," and any implementing regulations issued by the awarding agency.
(G) Clean Air Act (42 U.S.C. 7401-7671u.) and the Federal Water Pollution Control Act 33
U.S.C. 1251-1387), as amended - Contracts and subgrants of amounts in excess of $150,000
must contain a provision that requires the non -Federal award to agree to comply with all
applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C.
7.3 Purchasing Procedures Page 20 of 23
7401-7671g) and the Federal Water Pollution Control Act as amended (33 U.S.C. 1251-1387).
Violations must be reported to the Federal awarding agency and the Regional Office of the
Environmental Protection Agency (EPA).
(H) Debarment and Suspension (Executive Orders 12549 and 12689) - A contract award (see 2
CFR 180.220) must not be made to parties listed on the governmentwide exclusions in the
System for Award Management (SAM), in accordance with the OMB guidelines at 2 CFR 180
that implement Executive Orders 12549 (3 CFR part 1986 Comp., p. 189) and 12689 (3 CFR
part 1989 Camp., p. 235), "Debarment and Suspension." SAM Exclusions contains the names
of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared
ineligible under statutory or regulatory authority other than Executive Order 12549.
(I) Byrd Anti -Lobbying Ariiendnrent (31 U.S.C. 1352) -Contractors that apply or bid for an
award exceeding $100,000 must file the required certification. Each tier certifies to the tier
above that it will not and has not used Federal appropriated funds to pay any person or
organization for influencing or attempting to influence an officer or employee of any agency, a
member of Congress, officer or employee of Congress, or an employee of a member of
Congress in connection with obtaining any Federal contract, grant or any other award covered
by 31 U.S.C. 1352. Each tier must also disclose any lobbying with non -Federal funds that takes
place in connection with obtaining any Federal award. Such disclosures are forwarded from
tier to tier up to the non -Federal award.
(7) See § 200.323.
(K) See § 200.216.
(L) See § 200.322,
200.323 Procurement of recovered materials.
A non -Federal entity that is a state agency or agency of a political subdivision of a state and its
contractors must comply with section 6002 of the Solid 'Waste Disposal Act, as amended by the
Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring
only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR
part 247 that contain the highest percentage of recovered materials practicable, consistent with
maintaining a satisfactory level of competition, where the purchase price of the item exceeds
$10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000;
procuring solid waste management services in a manner that maximizes energy and resource
recovery; and establishing an affirmative procurement program for procurement of recovered
materials identified in the EPA guidelines.
7.3 Purchasing Procedures Page 21 of 23
200.216 Prohibition on certain telecommunications and video surveillance services or
equipment.
(a) Recipients and subrecipierrts are prohibited from obligating or expending loan or grant
funds to:
(1) Procure or obtain;
(2) Extend or renew a contract to procure or obtain; or
(3) Enter into a contract (or extend or renew a contract) to procure or obtain equipment,
services, or systems that uses covered telecommunications equipment or services as a
substantial or essential component of any system, or as critical technology as part of any
systeru. As described in Public Law 115-232, section 889, covered telecommunications
equipment is teleconlnlunications equipment produced by Huawei Technologies Company or
ZTE Corporation (or any subsidiary or affiliate of such entities).
(i) For the purpose of public safety, security of government facilities, physical security
surveillance of critical infrastructure, and other national security purposes, video
surveillance and telecommunications equipment produced by Hytera Communications
Corporation, Hangzhou Hilcvision Digital Technology Company, or Dahua Technology
Company (or any subsidiary or affiliate of such entities).
(ii) Tel ecommmunications or video surveillance services provided by such entities or using
such equipment.
(iii) Telecommunications or video surveillance equipment or services produced or provided
by an entity that the Secretary of Defense, in consultation with the Director of the National
Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to
be an entity owned or controlled by, or otherwise connected to, the government of a
covered foreign country.
(b) In implementing the prohibition under Public Law 115-232, section 889, subsection (f),
paragraph (1), heads of executive agencies administering loan, grant, or subsidy programs shall
prioritize available funding and technical support to assist affected businesses, institutions and
organizations as is reasonably necessary for those affected entities to transition from covered
communications equipment and services, to procure replacement equipment and services, and
to ensure that communications service to users and customers is sustained.
(c) See Public Law 115-232, section 889 for additional information.
(d) See also 200.471.
200.471 Telecommunication costs and video surveillance costs.
7.3 Purchasing Procedures Page 22 of 23
(a) Costs incurred for telecommunications and video surveillance services or equipment such
as phones, internet, video surveillance, cloud servers are allowable except for the following
circumstances:
(b) Obligating or expending covered telecommunications and video surveillance services or
equipment or services as described in ` 200.216 to:
(1) Procure or obtain, extend or renew a contract to procure or obtain;
(2) Enter into a contract (or extend or renew a contract) to procure; or
(3) Obtain the equipment, services, or systems.
[85 FR 49570, Aug. 13, 2020]
200.322 ]domestic preferences for procurements.
(a) As appropriate and to the extent consistent with law, the non -Federal entity should, to the
greatest extent practicable under a Federal award, provide a preference for the purchase,
acquisition, or use of goods, products, or materials produced in the United States (including but
not limited to iron, aluminum, steel, cement, and other manufactured products). The
requirements of this section must be included in all subawards including all contracts and
purchase orders for work or products under this award.
(b) For purposes of this section:
(1) "Produced in the United States" means, for iron and steel products, that all manufacturing
processes, from the initial melting stage through the application of coatings, occurred in the
United States.
(2) "Manufactured products" means items and construction materials composed in whole or
in part of non-ferrous metals such as aluminum; plastics and polymer -based products such as
polyvinyl chloride pipe; aggregates such as concrete; glass, including optical fiber; and
lumber.
73 Purchasing Procedures Page 23 of 23
RESOLUTSON NO, 24-097
BE IT RESOLVED BY THE, CITY COUNCIL
OF THE CITY OF BEAUMONT:
THAT the City Manager be and lie is hereby authoximl to submit a grant application. and
execute a contract with the Texas General Land OI'[icc: to receive futids to develop tlae
Comprebeiisive Plan of Beaumont in the amount of $300,000,00,
The n-iceting at which this resolution was. approved was in all things conducted in strict
con-ipliauoe with the Texas open Meetings Act, Texas Goveriuuent Cade, Chapter 551.
2024,
PASSED BYTHE CITY COUNCIL of the City of BeauaVxit this (lie 16t1i clay of April,
1(s
Mayor Roy West
The Texas General Land office (GLO) allocated up to $100 mittion In Community Development Block Grant Mitigation (CDf3G-
MIT) funds for the Resilient; Communities Program (RCP), Tlie RCP wit/ fund the development, adoption, and Implementation
of modern and resilient budding codes and ftood da€Tage prevention ordinances to ensure that structures built within the
community can withstand future hazards.
Communities are encouraged to also learn about RGP's companion program, the Locat Hazard Mitigation Plans Program (LHMPP), which Is
actively accepting applications, visit LHMPP s web page atrecovorvtexas.gov/mltlggllon/tl)inpp.
0 F-ligibility criteria
Applications will have a maximum of $300,o00 per applicant, first -come first -served.
At least Rr/a must address mitigation needs in the CDBG-MIT most impacted and distressed (MID) areas Identified by the United states
Department of Housing and Urban Development (HUD),
€? Eligible Applicants
Units of local government (e.g., cities, counties, federally recognized tribes, and councils of governments) located In a CDBG-M1T eligble area
Entity must have tegat authority to adopt and enforce the bul[dfng code, zoning ordinance, land use pi in, and/or comprehensive plan
proposed In the RCP application.
Nanning Activities
Develop, update, adopt, and implement:
BUILDING cobE5 that meet or exceed International Resldenlial Code
(IRC) edition 2012;
FLOOD DAM&GE PREVENTION ORDINANCES
Must require now structure$ to be at least 2-feet above
base flood etevatlon;
3"I"IRRIONOari ►. WERM
based upon a land use plan or comprehensive plan; and
• Forward-loolOng LAND USE PLAM and/or COMPREHENSIVE PLANS
that integrate hazard mitigation planning.
u Technical Assistance
Public service Activities
Activities leading to an increase In community knowledge
and/or the National Flood Insurance Program's voluntary
Community Rating Systern's (CRS) incentive program.
Examples Include education and outreach campaigns that
atertcomrnunitfes and beneficiaries to mitigation opportonides
and best practices.
Public Service activities must meet a HUD national objective.
RCP staff Is Available to assist potential applicants with understanding how the program can best assist In meeting the needs of the:
community with regard to mitigation activities, such as modern building code adoption, that increase the resilience acid reduce the like/#food
of tosses of life and property from future disasters,
WNS RCP Contact Inf"ormtWon; (512) 770-4900 M rCb,g1o@recovarytoxas.gpy,
Texas General Land Office Commissioner Dawn Buckingham, M.D. •. recovery,texas.gov - 1,844,893.8937