PROCEDURES HANDBOOK |
SECTION 7: SPECIAL ACQUISITION
7.0 SPECIAL ACQUISITIONS
The procurement of certain commodities and services has limitations
or require special procedures.
7.1 Architectural and Engineering
7.1.1 Projects Exceeding
$250,000:
In the procurement of architectural and engineering services, including those
professional services of an architectural or engineering nature, for projects
estimated to exceed $250,000 (construction cost and architectural
fees), an Expression of Interest shall be requested of interested firms by the
Purchasing Division. Special procedures in the selection of architectural and
engineering services are required in accordance with Chapter 5G of the
West
Virginia Code. Agencies must use the standard EOI format for
projects expected to exceed $250,000.
The expression of interest shall include a statement of
qualifications and performance data and may include anticipated concepts and
proposed methods of approach to the project. The project must be announced by
public notice.
An evaluation committee shall consist of three (3) to five (5)
representatives of the agency.
The agency may invite individuals
to serve as advisors who are subject matter experts, knowledgeable in the area
of discussion. The advisors may assist the evaluation committee members
(referred to as evaluators) in the evaluation process. The agency will identify
and justify the evaluation committee members and advisors to the Purchasing
Division prior to the release of the EOI.
The agency procurement officer or a
member of the agency procurement staff, who is skilled in purchasing techniques
and procedures, shall be present at evaluation committee meetings and serve on
the evaluation committee as a full voting member unless the agency can provide
written justification detailing the reason(s) why this requirement cannot be
met. Such request must be approved by the Purchasing Division. (The Purchasing
Division reserves the right to accept or reject agency appointed committee
members and/or to appoint committee members directly to provide proper
representation. A non-state employee shall not serve as voting member of the
evaluation committee.) To ensure
there is no conflict or influence on the committee members' decision process,
the evaluation should take place with only the designated evaluators and
advisors present.
The committee shall:
(a) Evaluate the statements of qualifications and performance data
and other material submitted;
(b) Develop a “short list” (minimum of three [3] firms) which, in
their opinion, are best qualified to perform the desired service; and
(c) Interview each firm on the “short list” and discuss anticipated
concepts and proposed methods of approach to the assignment, including
clarification of qualifications and performance data, the scope of services
offered and needed time to complete project.
The committee will rank no less than three (3) firms deemed to be
the most highly qualified on the basis of the matters discussed during the
interview, in order of preference, and present such list to the state agency and
the Purchasing Division. The committee will forward its recommendation to the
Purchasing Division along with a written justification as to the selection of
the firm. The justification must provide a score sheet with complete explanation
of all points deducted to clearly indicate how the firms were ranked. The
committee will then commence negotiations as to scope of service and price with
the highest qualified firm.
If the agency fails to negotiate a satisfactory contract with the
highest qualified firm at a fee determined to be fair and reasonable,
negotiations as to scope of services and price with the firm of second choice
will commence. Failing that, negotiations as to scope of service and price will
be undertaken with the third most qualified firm. In no situation, after
negotiations have been terminated with a firm, will negotiations be reopened.
If the agency fails to negotiate a satisfactory contract with any of the
selected firms, in order of their competence and qualifications, they will
rebid.
7.1.2 Projects $250,000 or
Less:
In the procurement of architectural and engineering services for projects
estimated to cost less than $250,000 (which includes construction cost
and architectural fee), competition shall be sought by the agency.
The agency shall conduct discussions with three (3) or more firms
solicited on the basis of known or submitted qualifications for the assignment
and the scope of services prior to the awarding of any contract. The Purchasing
Master Terms and Conditions must be included with the negotiated contract that
is submitted to the Purchasing Division, so that all vendors are aware of the
requirements of the potential contract.
Price may not be discussed prior to selecting the highest rated firm.
The agency and the initially selected firm shall further develop
the scope of services and, at this time, discuss price. If negotiations fail to
result in a satisfactory contract, the agency may commence negotiations with the
next ranked firm in the same manner, continuing until a satisfactory contract is
negotiated.
Once negotiations conclude with the selected vendor, the agency
must send the negotiated contract to the Purchasing Division to be properly
executed.
If a judgment is made that special circumstances exist and that
seeking competition is not practical, the agency may, with the prior approval of
the Purchasing Director, select a firm on the basis of previous satisfactory
performance and knowledge of the facilities and agency’s needs.
Change order for projects estimated to cost less than $250,000
(which includes construction and architectural fee) that exceeds $250,000
may not be approved and may necessitate a rebid.
West Virginia Code § 5G-1-1, et seq. does not provide for a separate process for the
procurement of architectural or engineering services estimated to cost $25,000
or less. An EOI anticipated costing
$25,000 less would be processed in accordance with the laws, rules, and
procedures applicable to EOI’s under $250,000.
7.1.3
Non-Conflict Requirement for Expressions of Interest:
To ensure that there is no conflict of interest in evaluating Expressions of
Interest (EOIs), To ensure that there is no conflict of interest, the evaluators
and advisor(s) are required by the Purchasing Division to sign a
Certification of Non-Conflict of Interest, in accordance with the
West Virginia Code §5A-3-31 (see
Appendix B).
The Purchasing Division also
requires that the agency procurement officer sign this certification. By signing
this certification, the evaluator(s), advisor(s) and agency procurement officer
attest that: (1) his or her service on the evaluation committee is not in
violation of
West Virginia Code §5A-3-31, §6B-2-5, or any other relevant code
section; (2) his or her service on the evaluation committee does not create a
conflict of interest with any of the participating vendors; and (3) he or she
has not had or will not have contact
relating to the solicitation identified herein with any participating vendors
between the time of the bid opening and the award recommendation without prior
approval of the Purchasing Division.
Agency procurement officers should
discuss the non-conflict of interest issue with potential committee members to
ensure that individuals who may have a conflict are not chosen to participate as
evaluation committee members. State agencies must submit the signed
certification to the Purchasing Division prior to beginning the evaluation of an
RFP or EOI.
7.2 Capitol Improvements
7.2.1 State Capitol
Complex:
Pursuant to the
West Virginia
Code §4-8-5, “No contract or contracts which will
result in physical changes to the state Capitol or any approaches, structures or
facilities incidental thereto shall be let, nor shall any physical changes be
made not requiring a contract, until approval of the commission has been
obtained.”
The Code requires the Capitol Building Commission to review and
either approve or reject all plans recommending substantial physical changes
inside or outside the state Capitol or surrounding complex, including the public
meeting rooms, hallways and grounds which affect the appearance thereof. The
surrounding complex shall include the governor’s mansion and other buildings
used by the governor as part of his residence; the state science and cultural
center; all state office buildings located in the immediate vicinity of the
state Capitol and the roadways, structures and facilities which are incidental
to such buildings. Substantial physical change means any permanent physical
changes that alter the appearance of the public areas of the Capitol and
surrounding complex.
The approval of the Capitol Building Commission is mandatory before
any contract may be bid for work requiring a substantial physical change, or
before changes are initiated if the work is not done under a contract.
7.2.2 State-Owned Office
Buildings:
Pursuant to the
West Virginia Code §4-8-4, “The
Capitol Building Commission shall review and approve or reject all plans
recommending substantial physical changes inside or outside the state capitol
building or surrounding complex, including the public meeting rooms, hallways
and grounds, which affect the appearance thereof. The approval of the commission
is mandatory before a contract may be let for work which constitutes a
substantial physical change, or before changes are started if the work is not
done under a contract. As used in this article, the surrounding complex shall
include the governor's mansion and other buildings used by the governor as part
of his residence, the state science and cultural center, all state office
buildings located in the immediate vicinity of the state capitol, and the
roadways, structures and facilities which are incidental to such buildings.
As used in this article, substantial physical change shall include, but not be limited to, permanent physical changes that alter the appearance of the public areas of the capitol building and surrounding complex. The secretary of the department of administration shall promulgate rules and regulations, pursuant to the provisions of chapter twenty-nine-a of this code, which rules and regulations shall be subject to the approval of the capitol building commission, to implement the provisions of this article.” In addition, West Virginia Code §4-8-4 states that no contract or contracts which will result in physical changes to the capitol building or any approaches, structures or facilities incidental thereto shall be let, nor shall any physical changes be made not requiring a contract, until approval of the commission has been obtained.
7.3 Information Technology Equipment, Services, and Software
West Virginia Code
§5A-6-1,
et seq., provides that the Chief
Technology Officer (CTO) may
evaluate and make recommendations on the design and suitability of Information
Technology (IT) equipment and related services, and may review and make
recommendations on the purchase, lease or acquisition of information equipment
and contracts for related services, including temporary IT staffing by all state
spending units.
All infrastructure technology equipment
procurement requests, regardless of dollar value, that will connect to the state
network requires CTO approval prior to submission of a request to the Purchasing
Division, as the CTO may require changes by the agency. All state entities, with
the exception of Constitutional Officers, Higher Education and K-12, shall
request approval for, at a minimum, but not limited to, the purchase of servers,
storage devices, computers, tablets, routers, wireless access points (WAPS),
hubs, switches, firewalls, video conferencing and telephone equipment, including
PBX system. The applicable information technology purchases also include
software of all types, whether it is e-mail applications, anti-virus software or
any other interoperability application, if the software will be used in systems
that connect to the state network.
State agencies may
procure IT consulting services with an estimated value of less than $10,000
without CTO approval.
7.4 Design Services or Consultant:
Any individual, corporation, or firm
(except as provided by a statewide contract) paid to custom design or write
specifications for a modular office system, computer system, construction or any
other project or contract shall not be permitted to competitively bid to provide
the product or service that was designed. This removes the possibility of the
designer developing specifications that only the designer can meet or restrict
another vendor from meeting. This also prevents the appearance of any
impropriety, thereby protecting the integrity of the competitive bid process.
Agencies may call vendors for information or copies of
specifications for consideration of a particular brand or manufacturer without
jeopardizing the vendor's ability to compete in the bid process as long as the
vendor does not receive compensation or any form of favoritism.
7.5
Equipment
Leases:
A lease is
a method by which a state agency may obtain the right to use equipment and make
payments for that use over a period of time. In pure lease procurements,
ownership of the equipment remains with the vendor and the equipment is returned
to the vendor at the expiration of the lease term.
Equipment
leases will be obtained through requests for quotations.
An agency
that desires to Purchase leased equipment, without a provision in the original
solicitation to do so, either during or at the expiration of the lease term will
be required issue a sole source procurement for the used equipment.
7.6 Lease Purchases:
A
lease purchase contract is a contract that includes periodic lease payments, and
in some cases a final lump sum payment, with ownership of the equipment being
vested in the agency immediately or at the lease term expiration. The minimum
purchase cost to consider a lease-purchase as an
option is $500,000.00, unless the Director of the Purchasing Division grants an
exception to this minimum amount. A letter of justification must be
prepared, signed by the agency head, and submitted to the Purchasing Division
prior to any attempt to enter into a Lease Purchase.
The State has a statewide Master Lease Purchase Financing Agreement
issued by the Finance Division of the Department of Administration. Any
request to enter into a lease purchase agreement other than the Master Lease
Purchasing Financing Agreement must be approved in advance by the Purchasing
Division. The Master Lease Purchase Financing Agreement is administered as
described below.
If the agency is approved to utilize the Master Lease Purchase
Financing Agreement, the agency will solicit bids for the equipment to be
financed through normal procurement methods. The agency must provide a copy of
the approved
letter of justification with its Requisition and note
that the resulting purchase will be financed under the Master Lease Purchase
Financing Agreement. This requisition must also be routed through the Finance
Division. Please note that no financial document will be generated for the
purchase order.
After the
contract is prepared and approved as to form, by the Attorney General’s Office,
the contract is held in the Purchasing Division while the release order is
generated and approved. A copy of the unencumbered contract will be submitted to
the Finance Division in order to execute the Appendix to the Master Lease. The
agency will work directly with the Finance Division to facilitate the execution
of the Lease Appendix. As time schedules are very sensitive in the execution of
the Lease Appendix, the agency and the Finance Division should inform the
Purchasing Division Buyer of any deadlines with issuing the documents.
7.7 Cooperative Contracts:
Cooperative contracting is a
term utilized to describe an agency’s use of and/or adoption of an existing
contract of another public entity or entering into a joint solicitation with
other public entities. The
West Virginia Code provides authority for this in §5A-3-19
and
West Virginia Code of State Rules
Section 148-1-7.8 provides further guidance and restrictions on the use of this
procurement method.
The requirements contained in the Code and the Rules have
been compiled into the Cooperative Purchasing Request, Justification and
Approval form (WV-40). An agency desiring to utilize the
cooperative contracting process must submit the WV-40 form to the Purchasing Division prior
to entering into a binding contract. The WV-40 serves as a request that
the Purchasing Director consider granting the state agency permission to
purchase from one of the above contract categories. Contracts identified as
mandatory do not require submissions of the WV-40 for each purchase.
Failure to provide the information requested on the WV-40 form will result in
the request being rejected.
Should a state agency receive approval through the WV-40
process from the Purchasing Division to utilize cooperative contracting, the
agency must submit a Requisition, attaching the WV-40, indicating
a release to the approved contract. Please note that certain additional
Purchasing Division forms, such as the) Agreement Addendum (WV-96,
Purchasing Affidavit, Certificate of Non-Conflict,
may be applicable.
The ability
to utilize cooperative contracting as described in this subsection has not been delegated
to the agencies for procurements of $25,000 or less.
7.8 Printing and Printing Equipment:
All printing and binding services must be performed by Correctional Industries
or a letter of refusal must be attached to the Requisition (over
$25,000), or maintained with agency invoice or purchase order file ($25,000 or
less).
7.9 Professional Services:
Professional service contracts provide a mechanism to acquire
specific professional expertise. Unless specifically covered in Section 9,
professional services shall be competitively bid.
7.10 Rentals:
Rentals require an Agreement Addendum [WV-96]
and shall not exceed thirty (30) days.
7.11 Telecommunications Systems:
All
telephone systems with a total cost (purchase price or total of lease purchase
payments, including maintenance if selected by the agency at the time of award)
over $25,000 must be bid through the Purchasing Division. Upgrading of existing
systems may be considered a sole source purchase, if the displaced equipment
represents less than 50% of the present day dollar value of the existing
equipment, and the equipment remains under the terms and conditions of its
original maintenance agreement. Expansion of existing systems not
involving an upgrade and/or added features may be considered sole source
purchases if the equipment remains under the terms and conditions of its
original maintenance agreement.
All telecommunications systems, upgrades and expansions,
regardless of cost, must be approved prior to bidding by the Information
Services and Communications Division. All
telecommunications purchase orders greater than $25,000 must be approved by the
Chief Technology Officer of the Governor’s Office of Technology. Evaluation
of bids will include installation, training and post-warranty maintenance. This
policy is vitally important to maintain the integrity and compatibility of the
state’s massive voice and data telecommunications system.
7.12 Vehicles: Approval by the Fleet Management Office is required to purchase
vehicles, unless statutorily exempt. Any request under the authority of the
Fleet Management Office to increase an agency’s fleet size must be approved by
the Executive Director of the Fleet Management Office. Vehicles ordered from the
statewide contract, with options not included on the statewide contract, require
a written quote (dealer cost) from the vendor, written agency justification, and
approval of the Purchasing Director. All vehicle purchases, regardless of dollar
amount, must be processed through the Purchasing Division. Purchases of vehicles
from Surplus Property are exempt from Purchasing Division approval, but still
must obtain Fleet Management Office approval.
7.13 Used Property:
State agencies may purchase used property through the normal
competitive bid process after first checking the item availability with the West
Virginia State Agency for Surplus Property and documenting this contact in the
official file. In accordance with the West Virginia Code of State Rules,
148
7.14 Banking Goods and Services:
The Office of the State Treasurer must approve the acquisition of any kind of
banking goods or services, which includes accepting payments and receiving funds
via electronic commerce. Agencies must submit a request to the Office of the
State Treasurer before issuing any Request for Proposal (RFP) or Request for
Quotation (RFQ) or entering into any
contract with another entity for banking goods or services, in accordance with
West Virginia Code §12-1-7 and §12-3A-6.
7.15 Radios and Microwave Equipment:
In accordance with Governor’s Executive Order 2-11, any purchase by a state
spending unit or state agency, including purchases on behalf of state agencies,
of two-way radio, microwave or satellite equipment and related services, or
purchases that utilize state or federal funds distributed to local entities by
the state of West Virginia which are not listed on the Statewide
Interoperability Executive Committee’s State Interoperable Radio Network (SIRN)
Approved Compatibility Equipment List, shall obtain the prior written approval
of the Statewide Interoperability Coordinator (SWIC) for any proposed purchase
of goods and services. SWIC approval or verification that the equipment is on
the Approved Compatibility Equipment List must be submitted with the
Requisition to the Purchasing Division.
For a list of
approved radios for use on the Statewide Interoperable Radio Network, visit:
http://www.sirn.wv.gov/information/downloads/Pages/default.aspx
All
contractual documents for two-way radio, microwave or satellite equipment and
related services, including, but not limited to, land or tower leases,
memorandums of understanding/agreement, training contracts, agreements or
services, and purchasing or service contracts related to two-way radio,
microwave or satellite equipment and related services for any agency of the
state of West Virginia, and all local entities of the state of West Virginia
which utilize state or federal funds distributed by the state of West Virginia,
must be reviewed and approved by the SWIC to ensure compatibility with the SIRN,
to promote the best possible value in purchasing, and to ensure all agencies
participating in the SIRN and needing equipment and related services are covered
by contractual documents.
Questions may
be directed to the Statewide Interoperability
Coordinator at (304) 766-5899.