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ACCEPTANCE OF GOODS OR SERVICES:
Acceptance constitutes a determination
by an authorized government official that goods or services
conforming to the requirements of a contract have been
furnished by a contractor and that a contractor is entitled
to payment under the contract. With respect to goods,
acceptance is deemed to occur if, after a reasonable
opportunity to inspect the goods, an effective rejection is
not made within a commercially reasonable time. Acceptance
of goods may be revoked where: there is an acceptance on a
reasonable assumption that a non-conformity would be cured
and it is not later timely cured; or acceptance has taken
place without discovery of a non-conformity where the
acceptance was induced either by the difficulty of discovery
before acceptance of the non-conformity or by the
contractor's assurances with respect to conformity of the
goods. Revocation of acceptance must occur within a
reasonable time after the government official discovers or
should have discovered the grounds for it.
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ACCEPTANCE OF
OFFER
: A communication directed to an
offeror by an authorized contracting officer in response to
a specific offer. In order for this communication to become
binding on the County, a fully executed contract must be
delivered. The communication of acceptance of an offer must
be made within the time specified for acceptance in the
solicitation or authorized extension in order for the
acceptance to be binding on the offeror; however, a
communication of an acceptance of an offer made after the
time specified in the solicitation may be accepted by an
offeror.
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ADVANCE PAYMENT
: A payment to the contractor prior to
receipt by the County of contractor performance that is at
least equal in value to the amount of the
payment.
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ASSIGNMENT
: The transfer of a contract right or
obligation by a contractor to another party. A payment
assignment is the assignment of a right to payment under a
contract to a party designated by the contractor who has a
right to that payment. A performance assignment is the
assignment by a prime contractor to a third party of the
obligation to perform a prime contract in accordance with
its terms and conditions. Assignments must be made through a
contract modification and specifically accepted and approved
by the contracting officer in order to be effective. An
assignment, unless it specifically provides otherwise, does
not relieve the prime contractor of its obligations to the
County.
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AUTHORIZED GOVERNMENT
OFFICIAL
: A person granted specific authority to
do a particular act by law, by delegation of authority, by
official job description, by the law of agency or pursuant
to contract provisions.
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AWARD
: The release of a fully executed
contract to an offeror. This release may be accomplished by
a contracting officer by depositing the contract in the
mail, with a common carrier, delivering it to the offeror,
or notifying the contractor by phone, telegram or other
means which communicates acceptance of offer by the
County.
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BID
: An offer to furnish goods, services,
or construction in conformity with the specifications,
delivery terms and conditions, and other requirements
included in the invitation for bids; or, in the case of
disposition of County property, an offer to purchase.
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BID BOND
: An insurance agreement in which a
third party agrees to be liable to pay a certain amount of
money in the event a bidder fails to sign a contract as bid
or as mutually agreed upon presentation of that contract to
the bidder.
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BID DEPOSIT
: A cashier's check, certified check,
bank letter of credit, or bid bond, deposited with, and at
the request of, the County, to guarantee that the bidder
will, if selected, sign the contract as bid or mutually
agreed upon presentation of that contract to the bidder. If
the bidder does not sign the contract as bid or as mutually
agreed, the deposit may be retained by the County.
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BIDDER
: See Offeror.
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BIDDER'S LIST
: A current file of vendors and other
sources of supply for various categories of goods, services,
or construction purchased for County use maintained by the
Director.
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- CAO
: The Chief Administrative Officer for
Montgomery County.
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CERTIFICATION OF
FUNDS
: A written or electronic
certification by the Director of Finance that funds are
available to pay the cost of a specific contract or the cost
of the first term of a multi-term contract, as required by
Chapter 11B, Montgomery County Code.
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CHANGE ORDER
: An order authorized by the contracting
officer directing the contractor to make changes within the
scope of the contract, pursuant to contract provisions for
such changes, with or without the consent of the
contractor.
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: A demand or request for payment for
services or construction rendered or goods delivered,
outside of an appropriately encumbered contract with the
County, for which the contractor has a basis for payment,
reimbursement, or compensation from the County under Chapter
11B, Montgomery County Code. See also related definition in
Section 14.2.1.
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COMPETITION
: The process by which more than one
valid source of supply for goods, services, or construction
is solicited through the submission of offers which are to
be evaluated in a comparative way for the purpose of
selection of the source or sources most advantageous to the
needs of the County.
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COMPETITIVE
NEGOTIATION
: A process by which the County and one
or more prospective suppliers communicate successive
respective positions with respect to price, specifications,
and other relevant terms and conditions in order to arrive
at a contract for procurement of goods, services, or
construction. Competitive negotiation may occur after
required bidding or solicitation of proposals produces no
award because of a deficiency in: proposed specifications,
price, insufficiency of available funds, non-responsiveness,
adequate competition, or responsibility factors. The
Director must approve competitive negotiation before it can
be used.
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CONFIDENTIAL
INFORMATION
: Any information which is available to
an employee only because of the employee's status as an
employee of the County and is not a matter of public
knowledge or available to the public on request. For
purposes of this definition, an employee includes a
volunteer.
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CONSTRUCTION
: The erection, alteration, repair,
demolition or renovation (including dredging, excavating,
landscaping and painting) of roads, public buildings,
structures or other improvements to real property.
Construction does not include routine maintenance, operation
or repair of existing facilities.
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CONTRACT
: Any type of documented agreement or
order for the procurement or disposal of goods, services,
construction or any other item which is binding on the
contractor and the County. Unless specifically prohibited by
Chapter 11B, contract types include: fixed-price, cost,
cost-plus-a-fixed-fee, cost reimbursement or incentive;
contracts may provide for the issuance of job orders, task
orders, or task letters; contracts also include letter
contracts, grants, purchase orders and contract
modifications. All contracts must be in writing unless
otherwise authorized by these regulations. A contract must
include mandatory clauses.
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CONTRACT ADMINISTRATOR
:
An authorized government official charged with
responsibility for administering a contract with authority
as provided in the contract document.
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CONTRACT AMENDMENT
: A modification to a contract signed by
the contractor as well as the contracting officer which
provides for a change of contract provisions, including
additional work outside the scope of the original
contract.
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CONTRACT
MODIFICATION
: Any documented alteration in the
specification, delivery, contract period, price, quantity,
or other contract provisions of any existing contract,
whether accomplished by unilateral action in accordance with
a contract provision (change order), or by mutual action of
the parties to the contract (contract amendment). It also
includes administrative changes, notices of termination,
field orders, and notices of exercise of a contract option
and contract extensions. Unless expressly authorized by
contract and these regulations, a contract modification must
be written if the contract to be modified is written.
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CONTRACT REVIEW COMMITTEE
(CRC)
: A standing committee
established for such purposes as specified in law or these
regulations.
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CONTRACTING OFFICER
: The CAO, Director, others delegated by
these officials to act within their authority, and other
officials specifically authorized by these regulations to
enter into a contract on behalf of the County. Only
contracting officers may execute contracts or contract
modifications on behalf of the County.
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CONTRACTOR
: Any individual or organization doing
business with the County whether for services, construction
or for the sale of goods or services pursuant to a
contract.
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COOPERATIVE
PURCHASING
: The combining of requirements of two
or more public entities in order to obtain the benefits of
volume purchases, reduction in administrative expenses, or
some other public purpose.
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COST ANALYSIS
: The review and evaluation of the
separate cost elements and proposed profit of an offeror's
or contractor's cost or pricing data and an offeror's or
contractor's assumptions and judgments in estimating costs
from cost data.
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COST OR PRICING DATA
: All facts as of the time of price
agreement that buyers and sellers would reasonably expect to
affect price negotiations significantly. Cost or pricing
data are factual, not judgmental, and are independently
verifiable.
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COST REIMBURSEMENT
CONTRACT
: A contract which provides for
reimbursement of a contractor's costs associated with
performance of specified contract requirements.
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COUNTY
: Montgomery County government.
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COUNTY DEPARTMENT, OFFICE, AND/OR
AGENCY
: An officially designated unit
of the County (including the County Council) subject to the
procurement law and regulations of Montgomery County,
including certain entities established by State law such as
the County Board of Supervisors of Elections, the State
Attorney's Office, the Sheriff's Office, the County Board of
License Commissioners, and the Circuit Court (not including
the office of Clerk of the Court).
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CRC
: The Contract Review Committee.
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DEBARMENT
: An exclusion for cause by the Director
of firms or individuals from eligibility to participate in a
procurement action.
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DELIVERY ORDER
: A document or other action which
initiates a delivery of goods, services, or construction
authorized by a contracting officer or authorized government
official, under an existing contract which establishes
terms, price and source of supply.
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DEPARTMENT
: See Using Department.
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DETERMINATION AND
FINDING
: Documents prepared by an
authorized government official which delineates the facts
and reasons used for reaching a particular decision.
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DIRECT PURCHASE
: An informal procurement of goods,
services, or construction which is accomplished under the
direct authority of the Using Department Head and not by the
Director. Competition should be preserved with this method
to the extent practical. Contracting with MFD firms is
encouraged.
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DIRECTOR
: Director of the Office of
Procurement.
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DISPUTE
: A timely complaint filed by a
contractor disagreeing with a decision made by an authorized
government official regarding the contract.
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EMERGENCY
: Any dangerous condition or unforeseen
curtailment, diminution or termination of an essential
service which poses an immediate danger to health, life or
property.
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EMERGENCY
PROCUREMENT
: A procurement of goods, services or
construction necessitated by any threatened dangerous
condition or by a threatened imminent or unforeseen
curtailment of an essential service or supply which, if not
remedied by a procurement, will endanger or cause damage to
health, life or property and which remedy cannot be
accomplished through a timely procurement using normal
procedures.
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ENCUMBRANCE
: The recorded reservation of
appropriated funds to provide for payment of County contract
obligations, which reduces remaining spending authority
under an appropriation by that amount. A certification of
funds constitutes sufficient evidence from the Department of
Finance that there is a sufficient unencumbered balance in
an appropriation to cover the amount of a specified
contract, or the first term amount of a multi-term contract,
as required by Chapter 11B, Montgomery County Code.
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EQUAL ("OR EQUAL")
: A phrase used to indicate permission
to substitute products of similar or superior function,
purpose, design, and/or performance characteristics.
Substitutability is determined by conformance to salient
characteristics.
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EVALUATION CRITERIA
: Criteria set forth in a solicitation
document that specifies the basis for award of a
contract.
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FIELD ORDER
: A limited and specific written order
usually used in construction contract situations where the
authority to direct timely limited change to contract work
has been specifically delegated by the contract to the
authorized government official at the place of
performance.
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FIXED PRICE CONTRACT
: A contract which provides for a firm
price under which a contractor bears the full responsibility
for profit or loss.
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FORMAL SOLICITATIONS
: Invitation for Bids, Requests for
Proposals and Requests for Expressions of Interest.
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GOODS
: Supplies, materials, equipment, and
all other tangible commodities, except real property.
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GOVERNMENT
: Montgomery County Government.
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GRANT
: An action by a public or private
entity which directs funds on a non-competitive basis to a
specific entity. A grant must be implemented by a
contract.
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INFORMAL
SOLICITATION
: A procurement accomplished without an
invitation for bids, request for proposal, or request for
expressions of interest. An informal solicitation is not
subject to formal public notice.
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INSPECTION
: Examination and testing of goods,
services, and construction for materials, components,
intermediate assemblies, and end items, to determine whether
the goods, services, and construction conform to contract
requirements. Inspection does not constitute
acceptance.
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INVITATION FOR BID
(IFB)
: A formal solicitation in which
competitive sealed bids are invited through a public notice
procedure which requires that bids be received by a
specified time and opened publicly. Invitations for Bids are
evaluated solely in terms of bidder responsibility, bidder
responsiveness, and price.
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LABOR AND MATERIAL
BOND
: See Payment Bond
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LATE OFFER
: An offer which is received at the
place designated in the Invitation for Bids, Request for
Proposals or Request for Expressions of Interest after the
deadline established by the invitation or request. A late
offer may not be accepted and must be automatically
rejected.
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LIQUIDATED DAMAGES
: A sum agreed upon between the parties
to a contract, to be paid as ascertained damages by the
party who breaches the contract, and not as a penalty, where
actual damages due to breach may be difficult to determine
at the time of the breach.
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MFD
: An abbreviation used for minority,
female, or disabled owned businesses as defined in Chapter
11B of the County Code
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MANDATORY CLAUSES
: Clauses prepared by the Office of the
County Attorney which must be used in solicitations and
contracts unless explicitly waived by the Office of County
Attorney.
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MANDATORY IFB
REQUIREMENTS
: Specific substantive requirements or
specifications which may not be waived.
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MINI-CONTRACT
: A contract awarded through documented
informal competition for professional services.
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MINOR INFORMALITY OR
IRREGULARITY
: A requirement in a bid which is merely
a matter of form (not substance) or is an immaterial or
inconsequential provision in the solicitation. The Director
may determine the defect or variation in the bid to be
immaterial or inconsequential when the significance of the
defect or variation as to price, quantity, quality, or
delivery is trivial or negligible when contrasted with the
total cost or scope of the procurement.
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MINORITY OWNED
BUSINESS
: Any legal entity that engages in
commercial transactions which is at least 5l percent
owned, managed, and controlled by one or more minority
persons and certain non-profit entities organized to promote
the interests of persons with a disability, as defined in
Chapter 11B of the County Code.
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MINORITY CONTRACTING
: Montgomery County contracting policies
and procedures in accordance with the provisions of Chapter
11B of the County Code.
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MINORITY PERSON
: A member of a socially or economically
disadvantaged group which includes African Americans,
Hispanic Americans, Native Americans, Asian Americans,
women, and persons with a disability as defined in Chapter
11B of the County Code.
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MISTAKE IN BID
: A claim by an offeror with respect to
an IFB which asserts a mistake with respect to price or cost
factors contained in the offer.
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MULTIPLE AWARD
: The award of separate contracts to two
or more offerors for the same commodities or services in
situations where the award of a single contract would be
impractical or would not meet the total County
requirements.
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NOTICE TO PROCEED
: A written notice to the contractor
issued by an authorized government official directing
commencement of contract performance.
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OFFER
: A timely response to a solicitation
which is binding upon the offeror during the period of time
in which the offer is to remain open under the solicitation.
An offer is not binding on the County until the award of a
contract.
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OFFEROR
: A person or entity who makes an offer
in response to a solicitation or makes an unsolicited
offer.
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PAYMENT BOND
: A bond issued by a surety which
guarantees payment of suppliers and subcontractors of a
prime contractor.
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PERFORMANCE BOND
: A contract of guarantee submitted by a
successful offeror to protect the County from loss due to
the offeror's inability to perform or complete the contract
as agreed.
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PRE-BID/PRE-PROPOSAL
CONFERENCE
: An optional meeting held with
prospective offerors prior to submittal of bids or proposals
in response to a solicitation to discuss matters germane to
the solicitation.
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PRICE ANALYSIS
: An analysis used to determine that a
price submitted by an offeror is fair and reasonable. A
price analysis must be made by the Using Department to
support its recommendation for award.
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PROCUREMENT
: Buying, purchasing, or otherwise
acquiring any goods, services, or construction. It also
includes all functions that pertain to the obtaining of any
goods, service, or construction, including description of
requirements, selection and solicitation of sources,
evaluation of offers, preparation and award of contract,
dispute and claim resolution and all phases of contract
administration.
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PROFESSIONAL
SERVICES
: The services of attorneys, physicians,
architects, engineers, consultants, and other recognized
professional individuals, associations, corporations, and
groups whose services are customarily negotiated because of
the individuality of those services and level of expertise
involved.
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PROPOSAL
: An offer binding on the offeror, in
response to an RFP and a non-binding response to an
REOI.
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PROPOSED AWARD
: A decision of the Director that a
specific offeror is, after consideration of the
recommendations (if any) of the Using Department, the
successful offeror. This decision must be made in accordance
with these regulations and initiates the process by which an
award may be made to the offeror. A proposed award is not
binding on the County.
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PROPOSER
: See Offeror.
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PROTEST
: A timely complaint by an offeror in
connection with a perceived irregularity or impropriety with
a solicitation process or responses received to a
solicitation and administrative action with respect to the
responses. A protest must be filed, in writing, with the
Director.
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PUBLIC ENTITY
: A public entity is: (1) the federal,
state and local governments or their agencies; (2) boards,
commissions, or committees established by a federal, state,
or local law; (3) government organizations or associations
of the federal government, state governments, or political
subdivisions of state governments; or (4) any other entity
that both qualifies as a not-for-profit corporation under
the provisions of the United States Internal Revenue Code
and which is incorporated by one of the preceding entities
for the exclusive purpose of supporting or benefiting a
public entity. See Chapter 11B, Montgomery County
Code.
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PUBLIC NOTICE
: Posting information on a bulletin
board available for public inspection during regular
business hours. Public notice may, as determined by the
Director, also include other means reasonably calculated to
notify the public and promote adequate competition such as
advertisement, mailings, and placing notices in
newsletters.
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QUALIFICATION AND SELECTION COMMITTEE
(QSC)
: A committee established by a
Using Department for the purpose of evaluating responses
submitted by offerors in connection with an RFP or an REOI.
Each member of the QSC must be an employee of a public
entity, unless specific authorization is obtained from the
CAO for another to serve on the committee. The committee
must be composed of at least three members.
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REQUEST FOR EXPRESSIONS OF INTEREST
(REOI)
: A solicitation to prospective
offerors, the response to which is to be analyzed in
accordance with selection criteria set forth in the
solicitation. The REOI is used to develop a shortlist of
prospective offerors who are eligible to receive a
subsequent solicitation such as an RFP or an IFB. Requests
for Expressions of Interest are generally made where
specifications cannot be prepared or the availability of
vendors for the goods, services, or construction involved is
uncertain or unknown.
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REQUEST FOR PROPOSAL
(RFP)
: A solicitation to prospective
offerors, the response to which is analyzed in accordance
with selection criteria set forth in the solicitation for
the purpose of ranking the proposals received. A Request For
Proposal is generally utilized (instead of an REOI) when
specifications can be prepared.
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REQUIREMENTS
CONTRACT
: A contract for goods, services, or
construction covering long-term requirements (usually twelve
months or more), used when the total quantity required
cannot be definitely fixed, but may be stated as an estimate
or within maximum and minimum limits. Delivery of goods,
services, or construction are made upon issuance of a
delivery order. A requirements contract may be exclusive, in
which case all orders of goods, services, or construction
covered by the contract must be made pursuant to it during
its term. In the alternative, a requirements contract may be
non-exclusive, in which case the contract should be used
whenever possible, but is not the only source of goods,
services, or construction covered by it. Unless a
requirements contract, and the solicitation for it, states
that it is an exclusive contract, it is a non-exclusive
contract. A requirements contract may not be used to unduly
restrict competition and may not normally be used for large
construction contracts.
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RESPONSIBILITY
: A determination based on an offeror's
reputation, past performance, business and financial
capability and other factors that demonstrate the offeror is
capable of satisfying the County's needs and requirements
for a specific contract.
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RESPONSIVE OFFEROR
: An offeror who has submitted a bid
which conforms in all material respects to the requirements
of an IFB. The determination of whether a bid is responsive
is made by the Director after appropriate consultation with
the Office of County Attorney. The Director may solicit
comments from the Using Department.
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RESPONSIVENESS
: A determination that a bid complies
with the material requirements of an IFB. The Director
determines if a bid is responsive. See Responsive
Offeror.
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RETENTION
(RETAINAGE)
: The withholding of a part of the
payment due to the contractor until the time of final
acceptance according to the terms of the contract. The
amount retained (also known as retainage), as well as the
period of retention, is determined by the terms of the
contract. Retention, as a method of payment administration,
is usually associated with construction contracts.
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SALIENT
CHARACTERISTICS
: Characteristics of a particular
referenced good (product) or service necessary to meet the
minimum valid needs of government as determined by the
County.
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SCOPE (SCOPE OF
CONTRACT)
: The entire subject matter of a
contract in terms of goods to be delivered or services or
construction to be performed under the contract. Scope
includes all contract terms, conditions, and specifications.
The scope of a contract determines whether an alteration to
the contract work may be accomplished by change order or by
contract amendment. Scope also includes "scope of services",
if appropriate, which defines the work to be accomplished
under the contract.
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SERVICES
: The performance of an identifiable
task by furnishing labor, time or effort by a contractor,
not involving the delivery of a specific end product other
than reports which are merely incidental to the required
performance.
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SHORTLIST
: A limited number of offerors who,
through a pre-qualification process, are qualified (usually
through an REOI) to participate in a further evaluation
and/or negotiation process for award of one or more
contracts.
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SMALL PURCHASE
: An informal solicitation of goods,
construction or non-professional services valued below a
certain threshold.
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SOLE SOURCE
: A procurement in which goods,
services, or construction necessary to meet minimum valid
needs of the County are available from only one person or
firm as provided in Chapter 11B of the County Code including
those having the exclusive right to manufacture, sell or
otherwise market certain goods or services.
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SOLICITATION
: A process for requesting submittal of
offers through either a formal communication, which may
include an IFB, RFP or REOI, or an informal communication,
such as telephone communication and other forms of
communication with potential offerors as specifically
authorized under these regulations. A solicitation may only
be issued by a contracting officer or an authorized
government official.
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SPECIFICATION
: A concise statement of a set of
requirements to be satisfied by the goods, services, or
construction which the County wishes to acquire. A
specification must indicate, whenever appropriate, the
procedure by which requirements are determined to be
satisfied. As far as practicable, it is desirable that the
requirements be expressed in numerical or other objective
terms, together with their ranges or limits. A specification
may be a standard, a part of a standard, or independent of a
standard. It may also be expressed as an end result.
Specifications should be contained in solicitations as well
as contracts. Specifications should not be overly
restrictive or prejudicial to competition beyond that
justified by minimum valid requirements of the
County.
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STANDARDIZED
PROCUREMENTS
: A standardized procurement is a
purchase of equipment or parts for which the CAO determines
standardization and interchangeability of parts is necessary
or is in the public interest. A standardized procurement
should include competition when reasonably available.
Standardization approval must be for a stated period which
bears a reasonable relationship to the life of the equipment
and the specialized training or specialized equipment
necessary to maintain the standardized item. A
standardization decision includes the decision to procure
compatible parts, equipment, maintenance and
training.
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SUBCONTRACT
: An agreement entered into between a
third party (known as a subcontractor) and a contractor who
has a contract with the County (known as a prime
contractor). Although the County is not a party to the
subcontract, and the prime contractor is fully responsible
for the subcontractor, the County may have certain control
over the subcontract and subcontractor through the
provisions of the prime contract.
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TERMINATION FOR
CONVENIENCE
: A mandatory clause that provides for
termination of all or part of a contract by a contracting
officer if the contracting officer determines that
termination is in the best interest of the County. Upon such
termination, the Director may entertain contractors' claims
for work accomplished or costs incurred up to the date of
termination for convenience and process this claim in
accordance with law and regulations.
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TERMINATION FOR
DEFAULT
: A mandatory clause that
provides for the cancellation in whole or in part of a
contract, at the option of the County, because of the
contractor's failure to perform. A termination for default
may be accomplished by the Director in accordance with the
terms of the contract after consultation with the Office of
the County Attorney. A termination clause should provide for
liability of the contractor for additional costs to the
County in connection with procurement of substitute
performance from replacement contractors. A termination for
convenience may be added in the alternative to the notice of
termination for default to provide that in the event that
the termination for default is not sustained, the contract
is terminated for convenience as of the date specified in
the termination for default notice.
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TESTING
: A phase of inspection involving the
determination by technical means of the physical and
chemical properties of items, or components thereof,
requiring not so much the element of personal judgment as
the application of recognized and established scientific
principles and procedures. This process is part of the
determination of whether goods, services, or construction
should be accepted.
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UNSOLICITED PROPOSAL
: An offer from an offeror proposing to
render services or construction or deliver goods to the
County, outside of a solicitation by the County. Unsolicited
proposals should be evaluated by an appropriate Using
Department in terms of need, price, and funds available. If
funds are available and need is present, the Using
Department may initiate an appropriate solicitation as
provided by these regulations, based upon the unsolicited
proposal.
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USING DEPARTMENT
: Any County department, office or
agency subject to the procurement requirements imposed under
Chapter 11B, Montgomery County Code.
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WAIVER
: A variance from the requirements of
the procurement regulations that is authorized by the CAO. A
waiver may be granted for a single procurement or a class of
procurements. A waiver may be granted only after a written
determination and finding by the CAO.
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WARRANTY
: A representation that something is
true, created either by express words or actions or implied
either by the circumstances or commercial usages. It
includes any affirmation of fact or promise made by a
contractor or offeror which relates to goods, services, and
construction and becomes part of the basis of the bargain.
This may consist of a description of the goods made part of
the contract which indicates an express warranty that the
goods must conform to the description and samples or models;
such a description creates an express warranty that the
goods to be delivered must conform to the sample or model.
When goods, services, or construction fail to conform to the
terms of the express or implied warranty, a breach of
warranty, and thus a breach of contract, exists for which
the County has contractual remedies including termination
for default.
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