§ 2-208. Procurements with federal funds.

(a)

Applicability of this section. For projects or procurements of goods or services funded in whole or in part with federal funds, in addition to any other applicable procurement requirements contained in state law or this article, the county will follow the procurement standards set forth in this section. For such projects or procurements, in the event of a conflict between the provisions of this section and any other state or county procurement requirements, the provisions of this section will control. The procurement standards set forth in this section will not apply to procurements that are funded solely by funds other than federal funds, unless otherwise required by state or federal law, or unless otherwise applied to the applicable procurement by the county at the election of the county coordinator, procurement coordinator, or department seeking the goods or services to be procured.

(b)

Adoption of administrative policies. The county coordinator may include policies and procedures necessary and desirable for the administration of the provisions of this section in the county purchasing manual.

(c)

Suspension and debarment. The provisions of 2 CFR 200.213 regarding suspension and debarment, as the same may be amended, shall apply to all contractors and subcontractors providing goods or services to the county.

(d)

Time and materials contracts. The county may use a time and materials type contract for procurements 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 materials type contract means a contract whose cost to the county is the sum of:

(1)

The actual cost of materials; and

(2)

Direct labor hours charged at fixed hourly rates that reflect wages, general and administrative expenses, and profit.

Since the time and materials contract formula generates an open-ended contract price, a time and materials contract provides no positive profit incentive to a contractor for cost control or labor efficiency. Therefore, each contract must set a ceiling price that the contractor exceeds at its own risk. Further, the county will assert a high degree of oversight for a time and materials contract in order to obtain reasonable assurance that the contractor is using efficient methods and effective cost controls.

(e)

Limitation on local preference. The county will conduct procurements in a manner that prohibits the use of statutorily or administratively imposed local 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 services, geographic location may be a selection criterion, provided that the board has adopted local preference regulations by ordinance, and, provided further that the application of a geographic location criterion leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract.

(f)

The county and its contractors will comply with section 6002 of the federal Solid Waste Disposal Act, as amended by the federal Resource Conservation and Recovery Act, as either of the same may be amended. The requirements of such 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.

(g)

Contract cost and price.

(1)

The county will perform a cost or price analysis in connection with every procurement action in excess of the simplified acquisition threshold set by 2 CFR 200.88 and related federal regulations, as the same may be amended, 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 county will make independent estimates before receiving bids or proposals.

(2)

The county will negotiate 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 will 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 quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work.

(3)

Costs or prices based on estimated costs for contracts under a federal award are allowable only to the extent that costs incurred or cost estimates included in negotiated prices would be allowable for the county under 2 CFR Part 200, Subpart E-Cost Principles, as the same may be amended. The county will rely on 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 will not be used.

(h)

Federal awarding agency or pass-through entity review. The county will comply with all requests by federal awarding agencies or pass-through entities for documentation or other review of the county's procurement processes.

(i)

Bonding requirements. For construction or facility improvement contracts or subcontracts exceeding the simplified acquisition threshold set by 2 CFR 200.88 and other related federal regulations, as the same may be amended, the county will follow all of the bonding requirements set forth as follows:

(1)

A bid guarantee from each bidder equivalent to five percent of the bid price will be required. 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 bidder will, upon acceptance of the bid, execute such contractual documents as may be required within the time specified.

(2)

A performance bond on the part of the contractor for 100 percent of the contract price will be required. A performance bond is one executed in connection with a contract to secure fulfillment of all the contractor's obligations under such contract.

(3)

A payment bond on the part of the contractor for 100 percent of the contract price will be required. 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.

(j)

Contracts for procurements will contain the applicable provisions described in Appendix II to 2 CFR Part 200-Contract Provisions for non-Federal Entity Contracts Under Federal Awards, as the same may be amended.

(Ord. No. 2018-005 , § 2, 10-2-2018)