AGENDA ITEM #5A
February
4,
2014
Introduction
MEMORANDUM
January 31,2014
TO:
FROM:
SUBJECT:
County Council
IX1
~
Josh Hamlin, Legislative
Attome~
Introduction:
Bill 13-14, Contracts and Procurement - Formal Solicitation -
Local Preference
Bill 13-14, Contracts and Procurement - Formal Solicitation - Local Preference,
sponsored by Councilmembers Navarro, Berliner and Riemer, is scheduled to be introduced on
February
4,2014.
A public hearing is tentatively scheduled for February 25 at 1:30 p.m.
Bill 13-14 would define "County-based bidder or offeror" and would require that a
County-based bidder or offeror be given preference in the event of a tie bid or ranking in
contracts awarded by formal solicitation. County procurement regulations currently provide a
tie-breaking procedure which gives first preference to a bidder or offeror "who has its principal
place of business in Montgomery County." This bill would codify that preference, as well as
require a preference be given to a County-based offeror, in the event of identical price proposals,
when a contract award is made on price alone. This bill would also require that a formal
solicitation include an explanation of the procedure for resolving a tie bid or ranking.
This packet contains:
Bill 13-14
Legislative Request Report
Procurement Regulation IIB.00.01.04 (excerpts)
Circle #
1
6
7
F:\LAW\BILLS\1413 Contracts And Procurement - Formal Solicitation\Intro Memo.Doc
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Billl\Jo.
13-14
Concerning: Contracts and Procurement
Local
Formal Solicitation -
Preference
Revised: January 23. 2013 Draft No.
L
Introduced:
February 4.2014
Expires:
August 4.2015
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date:
---!...!.No~n.!!:e'____
_ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Councilmembers Navarro, Berliner and Riemer
AN
ACT to:
(1)
(2)
(3)
establish a preference for a County-based bidder in certain contracts awarded by
formal solicitation;
define a County-based bidder or offeror; and
generally amend the law governing the award of contracts by formal solicitation.
By amending
Montgomery County Code
Chapter lIB, Contracts and Procurement
Sections lIB-I, llB-9, and lIB-lO
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill.
Deletedjrom existing law by original bill.
Added by amendment.
Deletedjrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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BILL
No. 13-14
1
Sec.
llB-t. Definitions.
Unless the context indicates otherwise, the following terms have the following
meamngs:
[(a)]
2
3
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7
[(b)]
[(c)]
[(d)]
[(e)]
[(t)]
[(g)]
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County-based bidder or otforor
means
f!
person that:
has operated through an office, distribution point, or facility in
the County for at least
Q
months immediately prior to
submitting
f!
bid in response to
f!
formal solicitation issued
Qy
the County; and
14
15
16
(l)
owns tangible personal property subject to taxation
Qy
the
County.
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18
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[(h)]
[(0]
(0)]
[(k)]
20
21
22
23
[(1)]
[em)]
[en)]
[(0)]
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25
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[(P)]
[(q)]
27
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(0
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BILL
No.
13~14
28
29
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32
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34
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[(r)]
res)]
let)]
*
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Tie bid
means g low bid submitted
by
g responsible and responsive
bidder that is identical in price to g bid from another responsible and
responsive bidder under
g
formal solicitation.
leu)]
(
a)
*
*
*
Sec.
11B-9. Formal
solicitation - competitive sealed bidding.
Conditions for use.
Contracts must be awarded by competitive sealed
bidding except as otherwise authorized in this Chapter or regulations.
Competitive sealed bidding is initiated by issuing an invitation for bids.
(b)
Invitation for bids.
An invitation for bids must include specifications,
evaluation criteria including the procedure for resolving tie bids, and all
contractual provisions applicable to the procurement.
36
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*
ill
*
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Tie Bids.
If the Director makes an award, the Director must award g
contract to the County-based bidder when there is g tie bid between g
County-based bidder and g non County-based bidder.
IIB-IO. Formal
solicitation - competitive sealed proposals.
*
(d)
(1)
*
*
Evaluation and method ofaward.
A request for proposals must contain evaluation factors and an
explanation of how the rank of an offeror will be determined
j
50
51
52
53
including the procedure for resolving ties in ranking. Evaluation
factors must include factors related to the technical quality of the
proposal or the ability of the offeror, or both. Evaluation factors
{3-:J
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BILL NO.
13-14
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may include price. The evaluation process may involve one or
more steps.
(2)
If the Director determines that a sufficiently detailed scope of
services has been developed to allow for selection of a contractor
on the basis of price, the evaluation process may provide for the
selection of a proposed contractor by requiring all offerors who
meet pre-established levels of competency as reflected in scores
awarded by the qualification and selection committee to compete
for the contract award on the basis of price alone.
Price
submissions must be submitted in a sealed offer. If required in
the Request for Proposal, the price proposal must be binding on
the offeror. The price proposal may be submitted at any point
during the evaluation process as stated in the Request for
Proposals. If the Director decides to award g contract on price
alone, the Director must award
offeror when
~
~
contract to the County-based
qualified County-based offeror and g qualified
non County-based offeror have submitted identical price
proposals.
*
(f)
*
*
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Approval of contract awards. The Director must approve the proposed
ranking of offerors. If
~
County-based offeror and
non County-based
offeror each receive an identical ranking score, the Director must
consider the County-based offeror to be the higher ranked offeror.
*
*
*
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contracts and procurement - formal solicitation\bill3.doc
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BILL
No. 13-14
78
79
Approved:
Craig
L.
Rice, President, County Council
Date
80
81
Approved:
Isiah Leggett, County Executive
Date
82
83
This is a correct copy o/Council action.
Linda M. Lauer, Clerk of the Council
Date
( - 5­
(2
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"~'
contracts and procurement - formal solicitation\biIl3.doc
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LEGISLATIVE REQUEST REPORT
Bill 13-14
Contracts and Procurement Formal Solicitation Local Preference
DESCRIPTION:
Bill 13-14 would define "County-based bidder or offeror" and would
require that a County-based bidder or offeror be given preference in
the event of a tie bid or ranking in contracts awarded by formal
solicitation. The bill would also require that formal solicitations
include an explanation of the procedure for resolving a tie bid or
ranking.
The County wishes to support County-based businesses that are
seeking to do business with the County.
To establish a preference for a County-based bidder in the event of a
tie bid or ranking in certain contracts awarded by formal solicitation.
Office of Procurement
To be requested.
To be requested.
To be requested.
To be researched.
John Hamlin, 240-777-7892
Not applicable
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMP ACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIEN CE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENAL TIES:
Not applicable.
F:\LA W\BILLS\I4I3 Contracts And Procurement - Formal Solicitation\LEGISLATIVE REQUEST REPORT.Doc
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llB.OO.01.04 Source Selection Methods and Contract Types
4.1
Description of Source Selection Methods
4.1.1
Formal Solicitations - Invitation for Bid (IFB)
4.1.1.1 General
An IFB is a fonnal solicitation by which competitive sealed bids are invited
through a public notice procedure which results in an award to the lowest responsible, responsive offeror.
*
4.1.1.4 Procedure
(a)
Director.
*
*
*
IFBs are issued and public notice given under the direction ofthe
(b)
Responses to the IFB are received by the Director, as specified in the
solicitation, time-stamped, and publicly opened.
(c)
Bids are tabulated and forwarded to the Using Department for evaluation
when deemed appropriate by the Director or when specifically requested by the Using Department Head.
(d)
The Director may require the Using Department or other person to
evaluate the bids in accordance with the method of award criteria, and for responsiveness and
responsibility, and forward recommendations to the Director. These recommendations must include an
evaluation regarding the reasonableness of the proposed award prices. If retained by the Director, the
Director evaluates the bids in accordance with the method of award criteria, and for responsiveness and
responsibility.
In
the case of tie bids, the Director resolves a tie by application of the
(e)
following criteria in the order stated:
(1)
Making a proposed award of the contract to the bidder who has
its principal place of business in Montgomery County;
(2)
Making a proposed award of the contract to the bidder who is a
certified MFD business prior to submitting a bid;
(3)
invited to be present.
Drawing oflots with representatives of the finns involved
*
*
*
*
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4.1.2
Formal Solicitation - Best Value Procurement - Request for Proposals
(RFP)
4.1.2.1 General
An RFP is a formal solicitation for competitive sealed proposals. Proposals are
not publicly opened. An RFP is a procurement process in which quality and price are balanced to obtain
the best value for the County. Final costs and scope of work are subject to negotiation after the proposals
are received and before the contract is awarded unless otherwise stated in the RFP.
*
4.1.2.4 Procedure
(a)
Director.
*
*
*
RFPs are issued and public notice given under the direction of the
(b)
Without public opening, the Director forwards timely received proposals
to the Using Department for evaluation.
(c)
The Using Department establishes the QSC members, with the written
approval of the Director. 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 QSC. Unless otherwise provided in
these regulations, the committee must be composed of an odd number of members and must have at least
three members.
(d)
The Director may add members to the QSC when appropriate to enhance
the ability of the QSC to fairly and objectively evaluate the proposals. When the Director adds members
to the QSC, the composition of the QSC does not need to remain an odd number.
(e)
The QSC evaluates all proposals received from the Director, in
accordance with the evaluation criteria, and reviews offerors for responsibility.
*
*
*
*
(1)
In the case of a tie in the numerical QSC scored, the Director resolves the
tie by application ofthe following criteria in the order stated:
(I)
Montgomery County;
(2)
proposal;
(3)
invited to be present.
the offeror who has its principal place of business in
the offeror who is a certified MFD business prior to submitting a
Drawing of lots with representatives ofthe firms involved
*
*
*
*