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   City of Melbourne, Florida
                                                           Purchasing Manual             302
                                                           Issue Date    Revision/Date   Appd
           Table of Contents                               4/28/2009    D    5/11/2011   JMS



Foreword

Introduction – Section 1
   Mission (1.01)
   Purpose (1.02
   General Statement (1.03)
   Scope (1.04)
   General Policies (1.05)

Duties & Responsibilities – Section 2
   Purchasing Division Responsibilities (2.01)
   Function (2.02)
   Objectives (2.03)
   Relations with City Departments (2.04)
   Requesting Department’s Responsibilities (2.05)
   Ethics and the Procurement Process (2.06)
   Organizational Chart

Purchasing Methods – Section 3
   Petty Cash (3.01)
   Express Purchase Order (3.02)
   Procurement Card (3.03)
   Purchase Requisition (3.04)
   Purchase Order (3.05)
   Emergency Purchase (3.06)
   Internet Purchase (3.07)
   Price Quotes (3.08)
   Formal Quotes (3.09)
   Sealed Bid (ITB) (3.10)
   Sealed Proposal (RFP) (3.11)
   Consultant’s Competitive Negotiation Act (CCNA) (3.12)
   State Contract and Other Government Agency Contracts (3.13)
   Sole Source/Sole Provider Purchase (3.14)
   Check Request (3.15)

General Guidelines – Section 4
   Purchasing Categories (4.01)
   Unauthorized Purchases (4.02)
   Prohibition against Subdivision (4.03)
   Tax Exempt Status (4.04)

Purchase Req/Orders – Section 5
   Purchase Requisition (5.01)
   Standard Purchase Order (5.02)
   Blanket Purchase Order (5.03)
   Emergency Purchase Order (5.04)
   Purchase Order Changes or Cancellation (5.05)


                                            TOC - 1
   Receiving, Inspection, and Testing (5.06)
   Processing for Payment (5.07)

PO Maintenance – Section 6
   Review of a PO Maintenance Request (6.01)
   Processing PO Maintenance Requests (6.02)
   PO Maintenance Requiring City Manager or Council Approval (6.03)
   Construction Change Orders (6.04)

Bids and Proposals – Section 7
   Formal (Sealed) Bids (7.01)
   Local Vendor Preference (7.02)
   Formal (Sealed) Proposals (7.03)
   Bid/Proposal Documents (7.04)
   Bidder Protest (7.05)
   Waiver of Competitive Bids (7.06)

Specifications – Section 8
   Specifications (8.01)

Bonds and Insurance – Section 9
   Bonds (9.01)
   Insurance Terms and Conditions (9.02)
   General Insurance Requirements (9.03)
   Certificates of Insurance (9.04)
   Basic Insurance Coverages (9.05)
   Additional Insurance (9.06)
   Selection of Insurance Requirements (9.07)
   Insurance Selection Procedure (9.08)
   Special Procedures (9.09)

Professional Services – Section 10
   Definitions (10.01)
   Competitive Selection – Guidelines (10.02)
   Competitive Selection – Procedures (10.03)
   Competitive Negotiation (10.04)
   Less than Three (3) Firms (10.05)
   Prohibition against Contingent Fees (10.06)
   Small Contracts (10.07)
   Emergencies (10.08)
   Inconsistency with Section 287.055, Florida Statutes (10.09)

Construction Contracts – Section 11

Surplus Property – Section 12
   Definitions (12.01)
   Methods of Disposal (12.02)
   Procedure for Surplusing of Property (12.03)
   Procedure for Sale of Materials (12.04)
   Auction Sales (12.05)
   Scrap Sales (12.06)
   Donation (12.07)


                                          TOC - 2
   Destruction (12.08)
   Real Property (12.09)

Vendor Relations – Section 13
   Vendor Relations (13.01)
   Code of Ethics and Conduct (13.02)
   Complaints against Vendors (13.03)
   Debarment of Vendors (13.04)

Warehouse & Inventory – Section 14
   Warehouse Inventory (14.01)
   Warehouse Security (14.02)
   Inventory Removed after Normal Working Hours (14.03)
   Warehouse Receiving (14.04)

City of Melbourne Code – Section 15
   Article VI. Purchasing

Glossary – Section 16

Exhibits

Sample Forms

Subject Index/Sources

Revisions




                                        TOC - 3
             Foreword




It is a goal of the City of Melbourne to fairly, equally, and impartially administer its procurement
program. In that effort, the City of Melbourne Purchasing Manual has been developed to act as
a guide and to describe and explain the responsibilities of the City’s purchasing and contracting
program.

The Purchasing Manual contains instructions and describes the procedures to be utilized in the
daily administration and management of the procurement function. The manual has been
developed to serve as a framework whereby well-informed decisions can be made. Due to the
diversity of needs and requirements governing each type of purchase, not all possibilities can be
addressed in detail in this manual.

The guidelines set forth are for the guidance of all personnel who participate in the actions and
decisions relating to procurement to give them a more complete understanding of purchasing
policies, procedures, and practices.

Interpretation of the procedures outlined in this manual is the responsibility of the Purchasing
Manager, subject to the guidance and supervision of the Director of Finance and the City
Manager.

This manual is effective immediately upon issuance and supersedes all previously issued
purchasing manuals, instructions, or directives. The Purchasing Manual is subject to periodic
revision as an administrative policy subject to the final approval of the City Manager or designee.
The Purchasing staff encourages any suggestions to improve the effectiveness of the purchasing
process.

The Purchasing Division is grateful to the City of Port St Lucie, Florida for allowing use of their
Purchasing Policy and Procedure Manual as a model in the preparation of this manual.




                                      David N. McCue, C.P.M., A.P.P.
                                      Purchasing Manager
                                      April 2009
             Section 1                                               Purchasing Manual             302
                                                                     Issue Date    Revision/Date   Appd
             Introduction                                            4/28/2009    A    511/2011    JMS



Mission (1.01)
The mission of the Purchasing Division is to provide for fair and equitable treatment of all
persons involved in public purchasing by the City; to maximize the purchasing value of
public funds in procurement; and to provide safeguards for maintaining a procurement
system of quality and integrity.

Purpose (1.02)
The purpose of this manual is to set forth and establish the City’s policies and procedures to be used
in the procurement of goods and services required for the operation of all departments.

This manual is not intended to address every issue, exception, or contingency that may arise in
the course of purchasing activities. The basic standard that should always prevail is to exercise
good judgment in the use and stewardship of City resources.

Purchasing staff recommends the use of a loose-leaf binder so that procedural modifications
may be inserted as required. These modifications will be provided in writing from the Financial
Services Department. All new and revised sections will be numbered to properly conform to the
remainder of the manual and will bear a revision letter and effective date. Revisions and
additions are to be incorporated into the manual upon receipt and the superseded pages
removed and destroyed. This manual is also available on the City of Melbourne public web site
www.melbourneflorida.org and employee web site www.melbourneflorida.org/employee/.

General Statement (1.03)
It is a goal of the City of Melbourne to develop a comprehensive purchasing system. This
system should provide greater cost effectiveness and public accountability in the procurement
process.

Scope (1.04)
The policies and procedures outlined in this manual shall apply to all departments involved
with any procurement of goods and services for the City of Melbourne. Throughout this manual,
the word “City” may also be used to represent the City of Melbourne. The word “department(s)”
or “City department(s)” may, in many instances, also apply to City division(s).

General Policies (1.05)
A.   All elected and appointed officials of the City who participate in the solicitation and
     approval of purchases and contracts are personally responsible for becoming familiar with
     and abiding by all applicable State of Florida Statutes, City of Melbourne Code
     [Purchasing Manual Section 15], and Purchasing policies and procedures in this manual,
     governing such activities.

B.   City officials should endeavor to receive maximum value for the public dollar and to purchase
     in the best interest of the City.

C.   Per the authority as set in Section 3.18 of the City Charter (establishing a central purchasing
     program) and Section 2-232 of the City Code, the City Manager has designated the


                                         Section 1 - Page 1
     Purchasing Manager as the authorized purchasing agent for the City. It is his/her
     responsibility to provide leadership in all purchasing and contracting activities for the City.

D.   It is the Purchasing Manager’s responsibility to develop and maintain a purchasing manual
     which shall provide for rules, regulations, and procedures for the internal management and
     operation of the Purchasing Division. [City Code 2-232(b)]

E.   The Purchasing Manager shall supervise the procurement of all supplies, services, or other
     items as needed by the City; exercise supervision and control over inventories of supply
     belonging to the City; and sell, trade, donate, destroy, transfer, or otherwise dispose of
     surplus property. [City Code 2-232(c)]

F.   It is City policy to effect maximum feasible standardization of products used within and
     among departments in order to minimize stock levels and obtain better prices through large
     volume purchases. [City Code 2-232(c)]

G. All qualified bidders shall be afforded equal opportunities to quote and will compete on equal
   terms.

H.   Awards shall be made for bids and quotes that provide the best value to the City, taking into
     consideration the vendor’s skill, business judgment, experience, facilities to carry out the
     contract and previous work and pecuniary ability. The City reserves the right to waive minor
     irregularities, reject and/or accept any and all bids, in whole or in part, or take such other
     action as serves the best interests of the City.

I.   The City Council reserves unto itself the final approval of all purchases that exceed
     $25,000.00. The City Manager shall be the final approver for all purchases between
     $15,000.01 and $25,000.00. The City Manager also shall sign contracts relative to the
     expenditure of funds in excess of $25,000.00 The Mayor shall sign contracts relative to
     Inter-local Agreements.

J.   It is the intent of the City to buy only from suppliers who have adequate financial strength,
     high ethical standards and a record of adhering to specifications, maintaining shipping
     promises and giving maximum service. New sources of supply shall be given due
     consideration, as multiple sources of supply are necessary to ensure availability of
     materials.

K.   The City shall strive to maintain strong and enduring relationships with vendors of proven
     ability and with those who have a desire to meet the needs of the City. To accomplish this,
     purchasing activities shall be conducted so the vendors will value the City’s business and
     will make every effort to furnish its requirements on the basis of quality, service and price.

L.   Individuals engaged in purchasing shall promote constructive competition by constantly
     seeking new bidders, obtaining several bids on almost everything purchased and developing
     more than one active source of supply for various products and services.

M. Acceptance of gifts, other than items of nominal value such as advertising novelties, is
   prohibited. Officials and employees shall not become obligated to any vendor and must not
   conclude any City transaction from which they may personally benefit. Reference Section
   13 of this manual.




                                        Section 1 - Page 2
             Section 2                                             Purchasing Manual             302
                                                                   Issue Date    Revision/Date   Appd
             Duties & Responsibilities                             4/28/2009    A    511/2011    JMS



Purchasing Division Responsibilities (2.01)
The Purchasing Division staff of the Financial Services Department is responsible for
establishing purchasing policies and coordinating the purchasing procedures for the City. The
Purchasing staff also provides training to using departments.

The warehousing system is also part of the Purchasing function and responsibility. The Central
Warehouse is designed as a centralized receiving and issuing terminal for specific items.
Reference Section 14 of this manual for additional warehouse and inventory information.

Function (2.02)

A.   Develop purchasing objectives, policies, programs and procedures for the acquisition of
     materials, equipment, supplies, and services.

B.   Coordinate and provide assistance for purchasing procedures of user departments.

C.   Consolidate the purchase of like or common items or services.

D.   Review drafted specifications for formal bids.

E.   Provide contract administration.

F.   Provide administration for the City Procurement Card program.

G. Ensure all purchases are made as per State laws and City policy.

H.   Resolve, monitor and negotiate contract disputes regarding contract compliance.

I.   Request and/or assist with audit of departments for compliance of City procurement policies.

J.   Maintain adequate, on-hand inventory in the Central Warehouse for use by requesting
     departments.

Objectives (2.03)

A.   To know and become acquainted with the needs of all departments.

B.   To procure a product or service that will meet the department’s requirements and is the
     best value to the City.

C.   To know the sources and availability of needed products.

D.   To write manuals, provide training, and be a source of information to all
     departments in meeting their purchasing needs.

E.   To maintain good vendor relations.


                                          Section 2 - Page 1
F.   To inform department staffs of market changes, new products and other such factors.

G. To provide an understanding of sound purchasing policy and procedures throughout all
   departments of the City.

H.   To exchange ideas and information with other public purchasing agencies in an effort to
     solve common problems.

I.   To develop standardized specifications for use by all departments, improve the purchasing
     practices, and apply them when feasible.

J.   To understand legal procurement laws and ensure purchasing personnel comply.

Relations with City Departments (2.04)
The Purchasing Division shall establish and maintain communication with City departments in
order to meet their purchasing requirements.

Requesting Department’s Responsibilities (2.05)

A.   Initiate purchases, as outlined in this and/or other Purchasing manuals, allowing sufficient
     lead time for the Purchasing Division to process the order and the vendor to deliver goods or
     services.

B.   Follow the City’s purchasing policies outlined in the Purchasing and P-Card manuals.

C.   Prepare clear and unrestrictive technical specifications when needed for products or
     services.

D.   Review bid tabulation sheets and submitted proposals to inform the Purchasing Division of
     their department’s recommendations for award.

E.   Send complete and proper specifications for bid solicitation, or proper documentation to
     waive competitive bidding when exercising an option to “piggyback” or declaring
     sole/single source procurement.

F.   Promptly inform the Purchasing Division of any contract compliance issues.

Ethics and the Procurement Process (2.06)
The City of Melbourne and the Purchasing Division subscribe to the Florida State Statutes’ Code
of Ethics: 112.215, Section III to 112.363, Part IV. Furthermore, the Purchasing Division
promotes the published and established Code of Ethics as adopted by the National Institute of
Governmental Purchasing Officers (NIGP) and the Florida Association of Public Procurement
Officials, Inc (FAPPO). (See Exhibit 1, FAPPO Code of Ethics).

In accordance with Section 3.21 of the City Charter, no officer or employee of the City shall have
any personal, beneficial interest, either directly or indirectly, in any expenditure, purchase, sale
(not including items auctioned by the City) or contract for items, equipment, supplies,
commodities, or services made by the City. Additionally, they shall not have an interest in any
firm, corporation, or association furnishing or bidding on such purchase, sales contract, or
services.


                                        Section 2 - Page 2
No employee, City management, or official, acting as agent for the City, shall directly or
indirectly, purchase, rent, or lease any supply or service from a business entity in which he/she
or his/her immediate relative owns a material interest. A public officer or employee acting in a
private capacity may not rent, lease, or sell any supply or service to the City where he/she will
have a personal gain in any manner.

The City of Melbourne is also governed by the Government in the Sunshine, Florida Statute
286.119. Briefly, the records held by the Purchasing Division are viewed as public information
and as such, can be examined by the public upon proper request.

Additional Code of Ethics and conduct information is provided in Section 13 of this manual.




                                       Section 2 - Page 3
Section 2 - Page 4
            Section 3                                            Purchasing Manual             302
                                                                 Issue Date    Revision/Date   Appd
            Purchasing Methods                                   4/28/2009    A    511/2011    JMS



Petty Cash (3.01)
Petty cash is to be used for purchases of $20.00 or less but may be used for purchases up to
$50.00 when an Express Purchase Order is not accepted by a vendor. Petty cash policy is set
forth by the Financial Services Department. Petty Cash Receipt forms are available on the City
Employee Website under Financial Services Forms & Memos.

Express Purchase Order (3.02)
An Express Purchase Order (EPO) is a pre-numbered, multi-part form, in denomination of either
$50 or $250, for use by departments for the purchase of low-cost, routine supplies or services.
EPO forms are available from the Budget Office in the Management Services Department.

Procurement Card (3.03)
A Procurement Card (P-card) is intended for use by an employee that has a frequent and
recurring need to purchase small dollar supplies and services (up to $1,000 in total value). The
P-card program is designed to improve efficiency in processing purchases from any supplier that
accepts the Visa credit card. Purchases can be completed with suppliers over the phone, fax,
Internet, mail, or in person. All P-card purchases must follow the rules and procedures
prescribed in the Purchasing Card Program Cardholder Manual, available in the Purchasing
Division. The P-card program is administered by the Purchasing Manager.

The City Fuel Card program, also utilizing a Procurement Card, is designed to allow an
employee or driver to purchase fuel for a City vehicle. The fuel card, either assigned to an
individual employee or a vehicle, may be used for the purchase of fuel only at approved
merchant locations. All Fuel Card purchases must follow the rules and procedures as prescribed
in the Fuel Card Employee Guidebook or Fuel Card Driver Guidebook, available in the
Purchasing Division. The Fuel Card program, currently used only by Police and Fire
Departments, is administered by the Purchasing Manager.

Purchase Requisition (3.04)
A Purchase Requisition (PR) is a MUNIS-generated numbered form, required for the purchase of
all items not of an emergency nature and not covered under Petty Cash, Express Purchase
Order, or Procurement Card procedures. This, however, is not a document which can be used to
actually purchase goods or services. PRs are only requests for Purchase Orders. Reference
Section 5.01.

Purchase Order (3.05)
A Standard or Blanket Purchase Order (PO) is a MUNIS-generated numbered document
authorizing a supplier to issue goods or services. A PO is the result of an authorized and
approved PR. Reference Section 5 of this manual. (See Purchase Order - Sample Form 1).

Emergency Purchase (3.06)
An “Emergency” is defined as a situation brought about by a sudden unexpected turn of events
or any circumstance or cause beyond the control of the City in the normal conduct of its
business. An emergency purchase is made to alleviate a situation where there is a threat to
health, welfare, injury, or loss to the City that can only be rectified by immediate purchase of
equipment, supplies, materials, or services. [City Code 2-248]

                                      Section 3 - Page 1
An “emergency purchase” must fit the circumstances noted above and requires such
competition as is practicable under the circumstance. Poor planning and inadequate
management are not “emergencies” and cannot be treated as such. Purchases of this nature
may be expedited, but still do not justify “emergency” status. Reference Section 5.04.

Internet Purchase (3.07)
To protect the assets of the City, it is important to use caution when purchasing goods or
services over the Internet. The purchase should be made by providing the supplier a purchase
order number, obtained through the normal process, to ensure goods are received and meet
specifications before payment is made. If payment must be made by use of a Procurement
Card, extreme care is to be exercised to ensure the vendor is legitimate and the user
understands the return policy in case the goods do not meet their demand.

Price Quotes (3.08)
With the exceptions of purchases exempt from competitive bids, as detailed in Section 7.06,
all purchases between $1,000.01 and $7,500.00 (Category 3) require the opportunity for
competition be given by solicitation from vendors. [City Code 2-241]

Competitive quotations are to be obtained by the requisitioning department for Category 3
purchases.     A minimum of three (3) quotations should be obtained for all quotes.
Departments should use the DemandStar Electronic QuoteWire System whenever possible. If
less than three (3) quotes are received on the QuoteWire System then the user may proceed
with quote award unless they choose to revise quote and solicit a second time. A copy of each
competitive quotation should be attached to the submitted Purchase Requisition. The QuoteWire
number should be included in the vendor sourcing notes on the Purchase Requisition.

Formal Quotes (3.09)
With the exceptions of purchases exempt from competitive bids, as detailed in Section 7.05, all
purchases between $7,500.01 and $25,000.00 (Categories 4 and 5) require the opportunity for
competition, through formal quote solicitation conducted by the Purchasing Division. Purchasing
Division staff should use the DemandStar Electronic QuoteWire System whenever possible.

Sealed Bid (ITB) (3.10)
This method for purchases of goods and/or supplies that exceed $25,000 is the most
preferred formal bid method and is used when specifications are clear and pricing is the main
focus. [City Code 2-236] Reference Section 7.01 of this manual.

Sealed bids allow a maximum degree of competition among a number of suppliers offering
similar products. As a result, prices obtained are generally considerably lower than standard “list”
pricing. Sealed bids require considerable effort in the preparation of their terms, conditions,
and specifications.

Sealed Proposal (RFP) (3.11)
This formal method of procurement for purchases of goods and/or supplies that exceed $25,000
is used when competitive sealed bidding (ITB) is not practical. [City Code 2-238] Reference
Section 7.04.

Formal proposals differ from formal bids in the nature of their intent. Bids will usually supply,
in detail, the nature and specifications of the goods or services desired. The requesting


                                        Section 3 - Page 2
department has generally provided this data. Proposals, however, will specify the nature of a
requirement that needs to be met. Often, the means of satisfying this requirement is unknown
to the requesting department. Therefore, the Purchasing Division will request that vendors
submit their proposals for accomplishing a specific goal. These proposals will be diverse
relative to approach, means, and cost.

Formal proposals are best used when the objective is vague or lacking in details; or when the
vendor’s knowledge of his field may provide innovative and economical solutions. Evaluation
criteria must be included in the proposal.

Consultant’s Competitive Negotiation Act (CCNA) (3.12)
This requires a Request for a Proposal for Professional Services. “Professional Services”
means those services within the scope of the practice of architecture, professional engineering,
landscape architecture, or registered surveying and mapping, as defined by the laws of the State.
[FS 287.055] [City Code 2-233(c)] Reference Section 10 of this manual.

A Request for a Proposal for Professional Services that state and name the projects for a
specific time period may be used to set up CCNA Master Contracts. As per example, a Request
for architecture services that includes the 5 year Capital Improvement Plan. These Master
contract proposals are intended to be awarded to multiple firms that have equal qualifications for
the professional service requested. Selection of the firm by project is made by availability and
price negotiation following Florida Statues.

State Contracts and Other Government Agency Contracts (3.13)
State, Government Agency, and Organizations contracts have already been competitively bid;
therefore, the need to bid is satisfied for purchases of this nature. This method of purchase is
commonly known as piggybacking, and is particularly desirable if time is a constraint or if the
chances for obtaining better prices from other sources is poor. Utilization of these sources waives
the requirement for a formal competitive bid. [City Code 2-237(1)] Reference Section 7.06 of
this manual.

Documentation Requirements
The following documentation is the minimum requirements to use another political entity’s
awarded contract. Provide the required information to the Purchasing Division:

1.   Florida State Contract and Snaps Contracts Provide the current Florida State or SNAPS
     Contract Number. If the contract has fixed unit prices, no additional information is needed.
     If the contract is a percent discount from list, a copy of the original manufacturer’s list price is
     also required. This will usually be in the form of a published price list. If requesting only to
     utilize some of the items on the contract, only the pages with those prices are required.

2.   PRIDE and RESPECT
     Pride (inmate labor and correctional work programs) and Respect (purchase from the blind
     or other severely handicapped non-profit) have published unit prices. These documents are
     maintained in the Purchasing Division.

3.   Contracts from other Political Entities
     Provide the following:
     a.    Complete copy of the original solicitation.
     b.    Tabulation of all solicitation responses.
     c.    Copy of the award letter/memo/agenda item by the political entity to the awarded
           vendor


                                          Section 3 - Page 3
    d.     Complete copy of the vendor’s proposal

Sole Source/Sole Provider Purchase (3.14)
Sole source or a single source purchase is defined as being non-competitive in price or
availability and may be exempt from the competitive solicitation requirements. Examples might
be purchasing from a manufacturer’s sole sales agency or purchase of a particular brand of
computer equipment because it is exclusively compatible with the network computer.
[City Code 2-237(2)] Reference Section 7.06 of this manual.

Caution should be exercised when requesting “sole source” approval from City Council for a
purchase. In many cases, other sources do exist for a given item, and these must be
investigated by the using department and/or Purchasing Division before committing to “Sole
Source.” Purchasing staff will review all sole source requests prior to further processing.

The department must provide documentation from the manufacturer proving sole source
status. Providing a patent number or other information indicating they are the only suppliers in
the area may satisfy this requirement. See (Sole Source Explanation - Sample Form 2).

Check Request (3.15)
The Check Request is a standard form used to authorize Accounts Payable staff to make
payment for purchases of goods and/or services that is excluded from general purchasing
requirements. These exclusions include certain payments to vendors or reimbursements as
listed below:

        Travel and conferences
        Membership dues, subscriptions, licenses, or permits
        Educational and seminar fees
        Periodicals and publications
        Instructor fees
        Legal costs
        Refunds
        Other items as approved by the Financial Services Department

Before processing a Check Request, be sure to review other purchasing methods to ensure
Purchasing policies and procedures are followed. A Check Request may not be used to
circumvent established Purchasing policies and procedures. Such a request is an unauthorized
purchase and the City is not bound for payment. [City Code 2-234]

Use of a Check Request form is not designed to take the place of a Purchase Order or to
circumvent the normal bidding procedure. The Financial Services Department shall
inform Purchasing staff of any Check Request in excess of $1,000 that is in violation of
Purchasing policy. Additionally, Check Request purchase violations are subject to review
by the City’s Sr. Compliance & Management Analyst.

Contact the Financial Services Department if you have any questions regarding the types of
items that can be processed on a Check Request form.




                                      Section 3 - Page 4
            Section 4                                            Purchasing Manual             302
                                                                 Issue Date    Revision/Date   Appd
            General Guidelines                                   4/28/2009    E    5/11/2011   JMS



This section provides an introduction to the general policy, guidelines, and/or rules for the
purchasing process. Subsequent sections provide those procedures and methods to be
utilized to carry out this policy.

The City Manager, as authorized by the City Council, has delegated to the Purchasing Manager
the authority to procure materials and services for the City of Melbourne that are within the
guidelines set forth by the City Council. With the exception of major public works projects, all
other purchases must be processed through the Purchasing Division. Reference the Purchasing
Matrix Chart (Exhibit 2) and Purchasing Cycle Chart (Exhibit 3).

Purchasing Categories (4.01)
The purchase process is controlled by two components: (1) established policy dollar amount and
(2) approving authority. Dollar limit categories apply to the total amount to be purchased and/or
the total amount to be expended over an initial contract term. Purchase approval thresholds
apply to the established level of approving authority (i.e. Department Director, Purchasing
Manager, City Manager, or City Council). Purchase approval applies to all Financial Services
forms including Purchase Requisitions, Check Requests, Purchasing Cards, and all Petty Cash.
[City Code 2-242]

Category 1 - Purchases of $0.01 to $50.00
Types of Purchase: Petty Cash ($20.00 maximum), Express Purchase Order (EPO),
                   Procurement Card, or Purchase Order ($50.00 minimum)
Quote Requirement: Telephone, fax, Internet, or in-person quotation suggested
Approval:          Department Director or designee

Category 2 - Purchases of $50.00 to $1000.00
Types of Purchase: Express Purchase Order (up to $250.00 only), Procurement Card, or
                   Purchase Order
Quote Requirement: Telephone, fax, Internet, or in-person quotation suggested
Approval:          Department Director or designee

Category 3 – Purchases of $1000.01 to $7,500.00
Types of Purchase: Procurement Card (for designated employees only above $1,000) or
                   Purchase Order
Quote Requirement: Minimum of three (3) written quotes shall be obtained by the using
                   department or division, preferably utilizing the DemandStar
                   QuoteWire System
Approval:          Department Director and Purchasing Manager
Notes:             Quotations are to include delivery charges and time frame for that delivery.
                   Quote Wire Number should be referenced on the Purchase Requisition
                   and entered by the department in the vendor source notes or on the
                   receipt if a Procurement Card is used. Written quotations must be
                   submitted with Purchase Requisition.

The Purchasing Division reserves the right to verify quotations and pricing information, and
check to determine whether delivery charges have been included, and/or seek further
competition.


                                       Section 4 - Page 1
Category 4 – Purchases from $7,500.01 to $15,000.00
Types of Purchase: Purchase Order
Bid Requirement:   Formal quote solicitation by Purchasing staff utilizing the DemandStar
                   QuoteWire System or waiver of bidding from one of the authorized bid
                   deviations
Approval:          Department Director and Purchasing Manager

Category 5 – Purchases from $15,000.01 to $25,000.00
Types of Purchase: Purchase Order
Bid Requirement:   Formal quote solicitation by Purchasing staff utilizing the DemandStar
                   QuoteWire System
                   or waiver of bidding from one of the authorized bid deviations
Approval:          Department Director and City Manager

Category 6 – Purchases that exceed $25,000.00
Types of Purchase: Purchase Order
Bid Requirement:   Formal bid solicitation utilizing the DemandStar BidWire System
                   or waiver of bidding from one of the authorized bid deviations
Approval:          Department Director, City Manager, and City Council

Purchases over $15,000 must first be approved or awarded by either the City Manager
(Category 5 Purchase) or by the City Council (Category 6 Purchase). The requesting
department must submit either a Recommendation for Award (Sample Form 3) or
Recommendation for Approval form (Sample Form 4) to the Purchasing Division. Purchasing
staff will then prepare either a City Manager Action Item or City Council Consent Item
(Sample Form 5) and route for departmental approval. Note: Purchasing staff reserves the
right to process Category 4 and 5 acquisitions as a formal bid or proposal (rather than as a
formal quote) when it best serves the needs of the City.

Council award or approval takes place only during regular Council meetings on the second and
fourth Tuesday evenings of each month (unless otherwise cancelled). It is essential that the
Agenda Item recommendations be processed and submitted on a timely basis to avoid
unnecessary delays. To this end, all items to be placed on a subsequent Tuesday Council
Agenda must reach the Purchasing Division office by Friday, two weeks prior to the Council
meeting. A Council Meeting Agenda Preparation Schedule is issued by the City Manager’s office
for each calendar year and is available on the City employee’s website.

Unauthorized Purchases (4.02)
Except for emergencies or other authorized exemptions stated in these guidelines, no purchase
of supplies, services, or equipment shall be made without authorization as described within this
manual or in Section 2-234 of the Melbourne Municipal Code. No representative of the City shall
enter into a verbal agreement or make any arrangements until final approval is granted. In the
event than an unauthorized purchase is made, the following may apply: (1) such purchases are
void and not considered an obligation of the City, and (2) the person ordering the unauthorized
purchase may be held personally liable for the costs of the purchase or contract.

NOTE: No item or service is to be ordered, received, or paid for without use of a
Purchase Order (Regular, Blanket, Emergency, Express), Procurement Card, or Petty
Cash, with the exception of an authorized Check Request payment.




                                      Section 4 - Page 2
Unless specifically approved in writing by the Financial Services Director, no employee may
purchase City property for his/her own personal use unless it is purchased through the City’s
public auction or through the sealed bid procedures of the City. This includes new and used
equipment, materials, or supplies. Note: One exception is the ordering of shirts with City
logo displayed.

No employee may use the purchase power of the City of Melbourne to make private purchases;
in addition, employees should not have private purchases sent to the City C.O.D. to be paid for
by the employee.

Prohibition against Subdivision (4.03)
No contract or purchase shall be subdivided to avoid the requirements of the Purchasing Manual
or City Code. [City Code 2-243]

Delegated procurement authority is based on the total cost of goods and/or service. Splitting an
order so that the total cost is within one’s spending authority is prohibited.

Tax Exempt Status (4.04)
The City of Melbourne is exempt from Federal, State, and Local taxes except in certain
prescribed cases. An exemption certification is available from the Financial Services Department
or Purchasing Division and should be furnished to any of the City’s suppliers upon request.




                                      Section 4 - Page 3
              Section 5                                                 Purchasing Manual             302
                                                                        Issue Date    Revision/Date   Appd
              Purchase Req/Orders                                       4/28/2009    C    5/11/2011   JMS



Purchase Requisition (5.01)

A.   PURPOSE
     A role of the City’s Purchasing Division is to meet valid needs for materials, goods, services,
     construction, and equipment by providing the right products or services in the right quantity,
     at the right price, at the right time, and at the right place. To accomplish this, it is necessary for
     the various departments to inform the Purchasing Division of their requirements by the
     preparation of a Purchase Requisition (PR) submitted through the MUNIS purchasing
     software system.

     The Purchase Requisition serves to inform the Purchasing Division of the needs of a specific
     user department and to correctly define the material or service requested. The requisition is
     not an order, but merely the request for Purchasing to procure the item(s) or service(s) in
     accordance with established City purchasing policies and procedures.

     The procedures that are set forth in this manual have been established as a tool used by
     Purchasing for the processing of all requisitions. The Purchase Requisition will begin with
     the issuing department.

B.   WHEN PREPARED
     The requesting department should anticipate their requirements and submit requisitions
     allowing ample time for Purchasing to complete action to secure the items needed at the
     time required. Rush or emergency orders shall be authorized on a case-by-case basis to
     avoid additional costs affiliated with expediting delivery.

C.   WHO PREPARES
     A Purchase Requisition shall originate in the using department at the level where the
     purchase is to be used and proceed to the Purchasing Division after receiving approval of
     the Department Director or his/her designee.

     Department Directors may, at their discretion, designate certain other employees to approve
     purchase requisitions. Persons so authorized should complete a Signature Authorization
     Sheet in the Financial Services Department. The using department must update these
     sheets whenever personnel changes occur.

D.   DATA ENTRY OF REQUISITION
     A properly prepared requisition must, at a minimum, contain the information listed below. A
     detailed Munis Purchasing Handbook for Users is available from the Purchasing Division.
     Be sure to enter all data in UPPERCASE.

     1.   Department/Location – Fill in your department’s cost center (org and object
          account codes) or if it is for another department then enter their cost center.
          Selecting the 3-dot icon on the right of the cell will display a list of all cost centers.
     2.   Fiscal Year – Ensure that the fiscal year is correct.
     3.   Requisition # - This field will automatically populate with the next MUNIS number.
     4.   General Description – General description of purchase commodity and/or service.
     5.   Needed by Date – Indicates the date the items are to be delivered or needed. Selecting


                                           Section 5 - Page 1
           the calendar icon on the right side of the cell will display a calendar. Note: This date
           should be carefully considered and allow for internal processing of the PR and
           delivery time. Requesting an expedited delivery date could result in increased
           delivery charges, at the department’s expense, for an expedited delivery.
     6.    Vendor – Enter the correct vendor number from the current vendor list or a new number
           obtained from the Financial Services Department. Selecting the 3-dot icon on the right
           side of the cell will enable entry of vendor by Alpha sort. Note: Ensure that the
           proper vendor address is selected from the 3-dot icon pull down menu.
     7.    Ship to (Code #) – This code indicates the department location where the item is to
           be shipped. Selecting the 3-dot icon to the right of the cell will display a list of all codes
           and their assigned departments.
      8.   Method/Terms – Enter shipping FOB term. Reference FOB Terms (Exhibits 4a/4b).
      9.   Reference – Enter delivery contact name and/or other pertinent data.
     10.   Special Handling – N-None is default. Enter C-Confirmation for confirming Purchase
           Order (order placed previously by telephone, fax, or email message).
     11.   Type – N-Normal is default. Enter B-Blanket for Blanket Purchase Order.
     12.   Inventory – Central Warehouse inventory item only. Reference Section 14.01 of this
           manual.
     13.   Quantity and Unit – Indicate quantity for each item and unit (4-digit maximum) of
           measure such as: each, pair, doz (dozen), grs (gross), ctn (carton), case, gal (gallon), lb
           (pound), ton, day, mth (month), year, etc. If you are ordering by carton or case, indicate
           the carton or case count on the requisition. In some cases, each manufacturer has a
           different case count for their goods.
     14.   Unit Price – Include the unit price or extended price, which may be a “quote” price
           received.
     15.   Description – Give a precise description of the specifications of the item or service
           desired i.e. size, dimensions, type, weight, construction of item and/or equipment,
           and other pertinent information. If applicable, provide a manufacturer’s brand name
           and model for the purpose of establishing a standard of quality. If the purchase is of a
           technical nature, specifications should accompany the requisition. If the item cannot be
           described, except with a great amount of detail, a brief description should be given,
           followed by the trade name or model number of an acceptable item or “equal.”
           Indicate if the item is known to be on GSA (Federal), State or other contracts and
           note the contract number, or include the Quote Wire number if $1,000 or more.
     16.   Account Number – Indicate the expenditure code of your department. Particular attention
           should be given to coding the appropriate account. Where multiple account numbers are
           utilized, please provide Purchasing with a dollar allocation in lieu of percentage allocation.

E.   RELEASE OF REQUISITION
     Once the requisition has been completed it must be released. This allows the requisition
     to follow the workflow path for approval.

F.   APPROVAL AND ROUTING

     1.    After completion of data entry, release, and printing of the Purchasing Requisition, the
           requestor, or designee, will manually attach any documents and forward the requisition
           for review and approval by the designated approver for that department. Following
           that approval the requisition is then forwarded to the Purchasing Division for review.

     2.    Purchasing will review the requisition to determine if it is properly prepared, has
           the required account codes, budget, quotes, approvals, and adequate description. If
           information is incomplete the requisition will be rejected.



                                           Section 5 - Page 2
     3.   A Purchase Requisition may be corrected by the Purchasing staff or rejected and
          returned to the issuing department, along with a Purchase Requisition Discrepancy
          Notice (Sample Form 6) for any one of the following reasons:
          a. Lack of proper signature
          b. Lack of proper support documents (written quotes, sole source justification, or
               “piggyback” verification)
          c. Lack of approval when over $7,500 in total value
          d. Unauthorized purchase
          e. Date needed is not reasonable
          f. Incorrect account numbers have been used
          g. Improper vendor selected
          h. Insufficient account balance available
          i.   Insufficient budget approval for capital items
          j.   Contract number and/or start and end date not shown
          k. Vague or incomplete description
          l.   Unit price discrepancy
          m. Import notes not included
          n. Other reasons not stated above

     4.   Once review and authorizations are completed, the Purchasing Division will
          encumber the funds. The Purchase Requisition is then converted to a Purchase Order,
          printed, and copies distributed to the vendor, using department, and the Purchasing
          Division.

Standard Purchase Order (5.02)

A.   PURPOSE
     The Standard Purchase Order, a/k/a “Regular Purchase Order” or “Normal Purchase Order”
     is a legal document authorizing the purchase of and subsequent payment for materials,
     supplies, equipment, construction, repairs and services over $50 in value.

B.   WHEN ISSUED
     A Standard Purchase Order shall be issued by the Purchasing Division only against
     Purchase Requisitions approved by a Department Director or designee. The Purchasing
     Division will maintain an updated listing of all authorized signatures. Department
     Directors are responsible for advising Purchasing of additions and/or deletions when
     personnel changes occur. Reference Purchase Order Types chart (Exhibit 5).

C.   WHO ISSUES
     Only the Purchasing Division may issue Purchase Orders.

D.   HOW TO PREPARE
     The Standard Purchase Order is prepared from the requisition and shall be written so that it
     is concise and clear. This will prevent unnecessary misunderstandings and correspondence
     with vendors.

E.   ROUTING OF STANDARD PURCHASE ORDER
     The Purchase Order shall be printed and copies distributed as below:
     Copy 1 (White) – mailed directly to vendor.
     Copy 2 (Pink) – retained by the Purchasing Division and filed by vendor name.
     Copy 3 (Yellow) – sent to the using department via inter-office mail for their files.



                                         Section 5 - Page 3
Blanket Purchase Order (5.03)

A. PURPOSE
   Blanket Purchase Orders (BPOs) are used throughout the City for the purchase of small
   dollar and repetitive items. BPOs reduce the quantity of paperwork and decentralize the
   ordering of materials and/or services on a day-to-day basis.

B. WHEN USED
   A blanket purchase order is issued to a vendor, against which multiple purchases may be
   made for a specific period of time, often establishing fixed price, term, and other conditions.
   Similar to a Standard Purchase Order, City department funds are encumbered upon the
   establishment and issuance of the BPO.

     A Blanket Purchase Order is also useful for repeated purchases of the same type of
     commodity item or service by a department. This eliminates the need for department
     submittal of multiple Standard Purchase Orders - issuing a single Purchase Requisition for a
     Blanket Purchase Order. Reference Purchase Order Types chart (Exhibit 5).

C.   WHO ISSUES
     Only the Purchasing Division may issue Blanket Purchase Orders.

D.   HOW TO PREPARE

     1.   The Blanket Purchase Order is prepared from the requisition and shall be written so that
          it is concise and clear. This will prevent unnecessary misunderstandings and
          correspondence with vendors.

          At a minimum, the Purchase Requisition should contain:
          a.   items or types of items authorized for purchase
          b.   item prices (when available) or total purchase order amount
          c.   specified term
          d.   name of the user

     2.   If a using department plans to only issue one or two purchases from the BPO over a
          specified time period (term), then a Standard Purchase Order should be used for each
          purchase instead.

     3.   A single purchase transaction is the total cost for that transaction and includes all
          associated components (i.e. shipping, delivery, etc).

          A single transaction cannot exceed $1,000 unless:
          a.   pricing is based on bid or contract pricing from the City of Melbourne or another
               governmental entity – “piggyback” purchase
          b.   the purchase is sole source, waiving the competitive bid process.

          The rule of thumb is that a purchase exceeding $1,000, other than the above, requires,
          at a minimum, three (3) written quotes. Such a purchase should then be processed as
          a Standard Purchase Order instead.

     4.   A Blanket Purchase Requisition totaling between $15,000.01 and $25,000.00 requires
          City Manager approval and a Blanket Purchase Requisition that exceeds $25,000
          requires City Council approval. The issuance of a Blanket Purchase Requisition


                                        Section 5 - Page 4
          subsequent to an approved or awarded contract does not require additional approval;
          however, the blanket terms must be in accordance with the terms of the pre-approved
          or pre-awarded contract. Note: Multiple Blanket Purchase Requisitions shall not
          be issued to circumvent the approval process.

     5.   Users are encouraged to utilize QuoteWire to obtain quotations for goods and/or
          services. Purchasing staff can provide instructions on the use of QuoteWire.

E.   ROUTING OF BLANKET PURCHASE ORDER
     The Blanket Purchase Order shall be printed and distributed as below:
     Copy 1 (White) – mailed directly to vendor.
     Copy 2 (Pink) – retained by the Purchasing Division and filed by vendor name.
     Copy 3 (Yellow) – sent to the using department via inter-office mail for their files.

F.   HOW TO USE

     1.   Users shall not receive goods or services from a submitted BPO Requisition until
          approved by Purchasing and a BPO number is assigned by MUNIS.

     2.   Users and/or receivers are encouraged to utilize the MUNIS Purchase Order Receipt
          function (PO Receiving File Maintenance) to record the receipt of all purchases against
          a BPO, as soon as possible following receipt. Reference the MUNIS Purchasing
          Handbook for Users for details on how to receive goods and/or services into the MUNIS
          system.

     3.   Using departments should make timely and calculated preparations for completing BPO
          purchases at each fiscal year end, to avoid carrying BPOs forward into the next fiscal
          year. All BPOs should typically be closed at the end of the fiscal year and a Blanket
          Purchase Requisition entered and submitted to Purchasing for the next fiscal year.

     4.   Purchasing Division staff and/or the Sr Compliance & Management Analyst will conduct
          period reviews of the use of BPOs by the user departments to determine if the scope
          and intent of the BPO process is being followed. Note: Abuse of BPOs by a using
          department could result in Purchasing limiting their dollar threshold amount to
          $1,000 for each Blanket Purchase Order.

Emergency Purchase Order (5.04)

A.   PURPOSE
     An “Emergency” is defined as a situation brought about by a sudden unexpected turn of
     events or any circumstance or cause beyond the control of the City in the normal conduct
     of its business. An emergency purchase is made to alleviate a situation where there is a
     threat to health, welfare, injury, or loss to the City that can only be rectified by immediate
     purchase of equipment, supplies, materials, or services. [City Code 2-248]

B.   WHEN ISSUED
     An emergency purchase may be made without competitive bidding when time is of the
     essence, and only for the following reasons:

     1. To preserve or protect life, health, or property; or
     2. Upon natural disaster; or
     3. To forestall a shutdown of essential public services.


                                         Section 5 - Page 5
     Since emergency purchases do not normally provide the City an opportunity to obtain
     competitive quotes or properly encumber committed funds, sound judgment shall be used in
     keeping such orders to an absolute minimum.

C.   WHO ISSUES
     Only the Purchasing Division may issue Emergency Purchase Orders.

D.   HOW TO PREPARE
     An “emergency purchase” must fit the circumstances noted above and requires such
     competition as is practicable under the circumstance. The following requirements shall
     apply:

     1.    The Purchasing Division shall be contacted as soon as possible for an advanced
           Purchase Order number, which may be given verbally, to cover the emergency
           transaction.

     2.    A completed Purchase Requisition shall be submitted to the Purchasing Division
           within two (2) working days, or as soon as the information is available. All Purchase
           Requisitions for emergency purchases shall be signed by the appropriate Department
           Director.

     3.    A Department Director often makes true emergency purchases on weekends, holidays,
           or after hours. The director or his designee may make emergency purchases when
           he/she has determined circumstances require immediate requisition of goods or
           services. Documentation explaining the circumstances and nature of the emergency
           purchase shall be submitted by the appropriate Department Director as follows:

           a. Emergency purchases up to $1,000.00 (Category 1 or 2)
              Process as Purchase Requisition, referencing “Emergency” in the body of the PR
              and providing complete backup documents, including any obtained quotations.
           b. Emergency purchases between $1,000.01 and $15,000.00 (Category 3 or 4) -
              Process as Purchase Requisition, referencing “Emergency” in the body of the PR
              and providing complete backup documents, including Recommendation for
              Approval Form (Emergency block checked) and any obtained quotations. The
              Purchasing Manager shall approve.
           c. Emergency purchases between $15,000.01 and $25,000 (Category 5) - Process
              as Purchase Requisition, referencing “Emergency” in the body of the PR and
              providing complete backup documents, including Recommendation for Approval
              Form (Emergency block checked) and any obtained quotations. The City
              Manager shall approve.
           d. Emergency purchases that exceed $25,000.00 (Category 6) - Process as
              Purchase Requisition, referencing “Emergency” in the body of the PR and
              providing complete backup documents, including Recommendation for Approval
              Form (Emergency block checked) and any obtained quotations. The City
              Manager may approve or request City Council approval.

     4.    If the emergency purchase causes any budget line to exceed the approved budget, it
           shall be the responsibility of the requesting department to obtain subsequent approval
           for an additional appropriation or to make a transfer to cover the purchase.

E.   ROUTING OF EMERGENCY PURCHASE ORDER
     The Purchase Order shall be printed and copies distributed as below:
     Copy 1 (White) – mailed directly to vendor.

                                       Section 5 - Page 6
     Copy 2 (Pink) – retained by the Purchasing Division and filed by vendor name.
     Copy 3 (Yellow) – sent to the using department via inter-office mail for their files.

Purchase Order Changes or Cancellation (5.05)

A.   PO CHANGES
     Whenever a change of any kind on the original order is requested, the actual change is
     made by submitting a Purchase Order Maintenance Request Form (Sample Form 7) to
     Purchasing. This form should be filled out completely, approved by the originating
     department, and sent to the Purchasing Division for authorization and processing. After the
     change has been completed in MUNIS, the purchase order is reprinted with a notation of the
     change and the date completed under the description heading. The reprint has the same
     number of copies as the original and carries the same distribution routing. Reference
     Section 6 of this manual.

B.   CANCELLATION
     If the requisitioning department needs to cancel an order, they must notify the vendor, in
     writing as soon as possible. They also must send an approved Purchase Order
     Maintenance Request Form marked Cancel, with the reason for that cancellation properly
     noted, to the Purchasing Division. The Purchasing Division will process the cancellation in
     the MUNIS application system and distribute copies. Reference Section 6.

Receiving, Inspection, and Testing (5.06)
A.   RECEIVING AND INSPECTING
     The PO face identifies the location or department the materials and/or supplies are to be
     delivered. It is the responsibility of the using department to:

     1.   Receive product by checking the shipment upon delivery for possible shipping
          damage, matching quantity and description to the Purchase Order. The following are
          steps to take when receiving material:

          a.   Verify the count. If there is a shipping discrepancy, note shortage on both
               shipper’s and deliverer’s copies of the receipt.
          b.   Check for visible damage. Note on all receipts.
          c.   Check for concealed damage – make note of broken or crushed containers.
          d.   In signing a delivery receipt add “except for concealed damage, if any.”
          e.   Notify carrier in writing of any damage found and request an inspection.
          f.   If you do not have time to verify delivery immediately upon receipt, please sign
               delivery ticket and include “delivery not checked for accuracy or damage.”

     2.   After determining that there is no damage and the correct product and quantity have
          been received, sign the accompanying delivery slip, Bill of Lading, or invoice. Any
          discrepancies should be noted and the vendor should be contacted immediately and m
          e aware of the discrepancy.

     3.   Users and/or receivers are encouraged to utilize the MUNIS Purchase Order Receipt
          function (PO Receiving File Maintenance) to record the receipt of all purchases against
          a BPO, as soon as possible following receipt. Reference the MUNIS Purchasing
          Handbook for Users (available in Purchasing) for details on how to receive goods
          and/or services into the MUNIS system.


                                         Section 5 - Page 7
     4.   When partial deliveries are made at the convenience of the vendor, payment will not be
          made until complete delivery is made, unless partial shipment has been authorized
          when the purchase order was issued.

B.   TESTING
     Testing of certain materials and supplies is occasionally necessary. The using department
     (and the Purchasing Division as required) is responsible for all details in connection with
     any necessary testing. Testing requirements should be included in the written specifications
     on the Purchase Order.

Processing for Payment (5.07)
An Invoice is the vendor’s statement of their charges against the City for materials or services
rendered. The Invoice is based upon the Purchase Order and should contain the same basic
information. The prompt and proper processing of an Invoice is recommended.

Upon receipt of vendor Invoice and completion of delivery and acceptance of material or service,
the department will promptly process the Invoice and forward to the Accounts Payable Division of
Financial Services. Vendors are directed to mail invoices directly to Accounts Payable. Should
an invoice be received by the originating department, it must be forwarded to Accounts
Payable without delay. The City adheres to the State of Florida “Prompt Payment Act” as
required by Chapter 218, Part VII, Florida Statutes. Reference Financial Services
Department Prompt Payment Policy, No 301.

The Accounts Payable Division requires the use of a stamped block (in red ink) on the front
or back (if necessary) side of an invoice to be processed. Required data shall be
completed as follows:

1.   Invoice for PO payment: Enter receipt date, invoice number, entire PO number, line
     number(s), line amount(s), and authorized signature.

2.   Invoice for non-PO payment (Check Request): Enter receipt date, Invoice number,
     expenditure code (organization and object), and authorized signature. Accompany
     Invoice with completed Check Request (Sample Form 7). Reference Section 3.14 for
     processing of Check Request Form. The stamp signature must reflect an authorized
     signature that is currently on the signature approval list in Accounts Payable. Note:
     The red stamped block may be used instead of the Check Request Form when all
     vendor information is on the invoice.

3.   Partial Payment: Partial payment will not be made except when partial deliveries are made
     for the convenience of the City or when a discount is available.

4.   Credit Memo: An Invoice credit memo shall be processed and submitted with red stamped
     block, the same as Invoice for PO payment in 1. above. Credit memos must not be held at
     the department location.




                                       Section 5 - Page 8
             Section 6                                             Purchasing Manual             302
                                                                   Issue Date    Revision/Date   Appd
             PO Maintenance                                        4/28/2009    E    5/11/2011   JMS



Occasionally a Purchase Order requires change to alter, adjust, or revise the language; to add or
subtract lines, or to liquidate or cancel the Purchase Order in its entirety. A change order is a
written order amending a purchase contract to correct errors, omissions, or discrepancies in it; to
cover acceptable cost adjustment; to add freight cost; to incorporate requirements to expand or
reduce the scope of goods or services ordered; or to direct other changes in contract execution to
meet unforeseen field, emergency, climatic, regulatory, or market conditions.

Required changes are initiated by use of a Purchase Order Maintenance Request Form
(Sample Form 8) which details the Purchase Order to be changed, and all changed items such
as price, model number, freight allowances, etc. Purchase Order maintenance modifies the
original terms of the Purchase Order contract and applies to all changes after the initial PO
issuance.

Review of a PO Maintenance Request (6.01)
Requestors are reminded to enter all required information, including PO line numbers, org and
object codes, and justification for change. Upon receipt of a properly executed PO Maintenance
Request Form, Purchasing Division staff checks the request for accuracy and improprieties.
Purchase Order Maintenance Forms may not be processed if authorized signature is invalid or
missing or if PO maintenance will increase the total order to $15,000.01. These changes must
first be approved by City Manager or City Council (if exceeds $25,000) before processing.

If the actual invoice amount of a specific PO line item is less than the line amount stated on
the Purchase Order, Accounts Payable will pay the invoice amount. If the invoice amount of a
specific PO line item exceeds the PO line item stated amount by more the $50, submittal of a PO
Maintenance Request Form is required.

Processing PO Maintenance Requests (6.02)
After Purchasing review, PO maintenance requests are routed for approval, according to
approval thresholds, and then entered in the MUNIS system by the Purchasing staff. Specific
notes are added about the PO change to print on the Purchase Order when it is reprinted. The
reprint has the same number of copies as the original and carries the same distribution routing.

PO Maintenance Requiring City Manager or Council Approval (6.03)
PO maintenance that brings the total value of the Purchase Order over $15,000, must receive
City Manager approval before further processing. If the PO maintenance brings the total value of
the Purchase Order to over $25,000, the City Council must approve before further processing.

NOTE: PO maintenance that decreases the orders total, even though the original was
approved by Council, does not require additional Council approval.

PO maintenance requiring City Manager or City Council approval must be submitted to the
Purchasing Division with documentation explaining the need for the increase. Purchasing will
review and validate change as per contract. If Purchasing agrees that a PO maintenance
request is valid, then Purchasing will prepare and send, a Consent Agenda Item (Sample Form
5) through the using Department to the City Manager’s office for placement on the City
Council Agenda.


                                        Section 6 - Page 1
After Council approves the change, the requested PO maintenance will be processed. Each
change must reference the Council meeting date. A copy of each change and accompanying
documentation must be attached to the Purchasing Department’s file copy of the original
Purchase Order.

Construction Change Orders (6.04)
The award and maintenance of contracts involving public works or public construction and
improvements are administered by the City’s Engineering Department. Reference Section 11 of
this manual.




                                    Section 6 - Page 2
             Section 7                                                  Purchasing Manual             302
                                                                        Issue Date    Revision/Date   Appd
             Bids and Proposals                                         4/28/2009    D    5/11/2011   JMS



With the exceptions of purchases exempt from competitive bids or proposals, as detailed in
Section 7.06, all purchases that exceed $25,000 (Category 6) require the opportunity for
competition be given by bid or proposal solicitation from vendors.

Formal (Sealed) Bids [ITB] (7.01)
Formal (sealed) bids (Invitation to Bid – ITB) and proposals (Request for Proposal – RFP) are
the most effective procedures for soliciting competitive prices from vendors in the public
(governmental) purchasing sector. Each method has advantages and disadvantages. In this
section, the procedures for preparing and processing bids and proposals are addressed. [City
Code 2-236 and 2-238]

A.   PURPOSE OF BID
     Before proceeding with any bid, the Purchasing Division must determine the purpose that
     is to be served. Will the bid result in procuring goods, services, or a combination of both? Is
     there a necessity for special protection for the City through bonds and insurance? Will the
     contract provide a one-time purchase or an annual blanket agreement? All these
     questions and more must be answered before preparing the bid for issuance.

B.   VENDOR SELECTION
     A vendor list sufficient to generate at least three responses is required for all
     purchases over $25,000.

     Potential suppliers may be located by using the following resources:

     1.    DemandStar vendor list
     2.    City of Melbourne bidder database
     3.    State purchasing contracts
     4.    Product catalogs
     5.    Telephone directories
     6.    Purchasing records
     7.    Thomas Register
     8.    McRae’s Blue Book
     9.    Department Director recommendation
     10.   Trade journals
     11.   Salesperson

C.   ADVERTISEMENT OF BIDS

     Adequate public notice of the Invitation for Bid shall be given.

     Newspaper: The City will advertise a minimum of one time in newspaper(s) of general
     circulation in Brevard City. The City Code requires that the first advertisement should be at
     least five (5) calendar days before the bid opening date. The newspaper advertisement shall
     include the bid or proposal number, bid title, bid opening date and time, the location for
     delivery of bids, pre-bid information, bond requirements, and the information of how to
     obtain the bid specifications.
     [City Code 2-236(b)(1)]


                                         Section 7 - Page 1
     Bulletin Board: Purchasing staff will post bid notice (copy of submitted newspaper legal ad)
     on a public bulletin board in the City Hall (in Purchasing Division area).
     [City Code 2-236(b)(3)]

D.   DISTRIBUTION OF BIDS BY THE PURCHASING DIVISION
     Bids will be posted on DemandStar for downloading by prospective bidders. Supplemental
     bidders will be provided from the City of Melbourne bidder database. Placement on the
     bidders list does not guarantee receipt of an ITB or RFP. It is the vendor’s responsibility to
     check out bid notices posted by the Purchasing Division. If a vendor is currently subscribed
     with DemandStar, this will guarantee a notice of all ITBs and RFPs within their commodity
     category. [City Code 2-236(b)(2)]

E.   PRE-BID CONFERENCE
     A mandatory or non-mandatory pre-bid conference may be held with prospective
     bidders and concerned City staff on complex procurement projects.

     The primary objective of such a conference is to provide a clear understanding of
     instructions to bidders relative to drawings, specifications, local conditions, location of
     the work, and basic construction methods or work requirements. A site visit may be
     scheduled following the conference if the project personnel feel it would be beneficial for
     clarification of specifications.

     In addition to avoiding quality assurance problems and contingency items in quotations,
     other benefits that may be derived from conferences are:

     1.    The number of changes in specifications can be reduced.
     2.    Competition may be stimulated by interesting more prospective suppliers.
     3.    Conferences tend to insure that qualified suppliers will submit quotations and tend to
           discourage submission by suppliers who are not qualified to perform the work or
           supply the goods.
     4.    An opportunity is given to discuss schedules. This is particularly valuable when hard
           to get or special materials and equipment is involved.
     5.    An opportunity is given to explain policies and requirements with respect to
           procurement methods, competitive bidding and negotiation, quotation qualifications
           and conditions, price provisions in solicitations and any resulting contractual
           agreements, and the determining factors in making awards.

     The conference should be a formally announced meeting with bidders. An announcement of
     the conference shall be included with the Invitation to Bid. The announcement will state
     when and where the conference will be held. In order to derive the greatest benefit from
     a conference, adequate time should be provided for the prospective suppliers to
     review the plans and specifications prior to the conference. The conference should be
     attended by personnel qualified to answer completely and accurately all questions relating
     to matters such as contract provisions, design and specifications, and production
     techniques that are expected to be discussed. A formal record shall be made of persons
     attending and the organizations represented through the use of a sign-in sheet.

     During the pre-bid conference, the specifications are reviewed and discussed with all
     vendor representatives in attendance. Care shall be taken to clarify the specifications as
     requested so as to insure that a vendor is not written out, thereby, eliminating them from the
     bidding without due cause. Only in those instances where a vendor requests a change in
     the specifications that would result in compromising the intended use and quality of the
     equipment are such requests denied.


                                        Section 7 - Page 2
     It is important that persons attending be clearly informed that no oral statement from any
     person which modifies plans and specifications will in any manner or degree, be considered
     official until covered in an addendum to the Bid or Request for Proposal.

F.   ISSUING ADDENDA
     Once an invitation to bid has been issued, no changes in the specifications can be made
     unless an addendum is issued, clearly pointing out such changes.

     All addenda shall be issued at least seven (7) calendar days prior to bid opening date,
     unless waived by the Purchasing Manager. If there is not sufficient time, the bid date will be
     changed.

G. BID FORMAT
   To avoid duplication of effort in bid preparation, the Purchasing Division has created a bid
   format, which provides the “boilerplate” or general terms and conditions of the bid.

     Care is taken that appropriate protection is afforded the City through requirements for bid
     bonds, insurance, and/or performance and payment bonds. Deletion of these items may
     result in loss of any meaningful protection for the City in the event of a vendor default or
     non-compliance.

H.   BID CONDITIONS
     In addition to the general conditions or “boilerplate,” most bids require special conditions,
     which pertain specifically to the bid in question. Conditions differ from specifications in that
     conditions refer to requirements, which must be met by the bidder before specifications of
     his/her bid item are even considered. For example, a supplier of furniture who cannot meet
     the required condition of a 30-day delivery will be eliminated, even though his furniture may
     meet all physical specifications.

     Conditions allow the City a high level of protection by the inclusion of various clauses
     relative to renewal of contract, cancellation, settlement of disputes, payment terms, delivery
     schedules, etc.

I.   BID SPECIFICATIONS
     Except for some City-wide contracts and Central Warehouse requirements, specifications
     for all other departmental bids should be provided by the requesting department, preferably
     in Word format. Reference Section 8, Specifications.

     Reasons for this policy are as follows:

     1.    As prime user, the department is best aware of any special characteristics or
           problems.
     2.    Because they probably utilize the item daily to be bid on, the department is best
           aware of any new developments in that product field.
     3.    Scientific, engineering, or other technical descriptions must be provided by
           departmental staff that are qualified to do so.

     Purchasing staff may assist in writing technical specifications; however, they must be
     reviewed and approved by the using department.

     Specifications are the basis for a vendor’s bid. Realizing that his bid will be compared
     primarily on the basis of price, a vendor will seek to offer an item that only meets the


                                         Section 7 - Page 3
     specifications. Consequently, it is vital that specifications make no assumptions, but rather
     detail every important facet of the item in question. To do so invites delivery of items,
     which meet specifications, but fail to meet the department’s expectations.

     A specification is defined as “a concise statement of a set of requirements to be satisfied
     by a product, material, or a process indicating whenever appropriate, the procedure by means
     of which it may be determined whether the requirements given are satisfied.”

     An objective of the Purchasing Division is to arrive at “performance specifications” which
     satisfy the need while allowing the greatest number of competing firms to bid. Therefore, it
     is more desirable to describe an item by the job it is intended to do and the physical
     characteristics it must exhibit than merely to specify a given brand and model with no
     substitutions.

     Specifications may be by performance description, or brand name; or a combination of
     the above. In some cases, description by noting the brand name of an acceptable unit may
     be the preferred method. Purchasing staff recommends the use of more than one brand
     name as a reference. To assure competition when using brand names, the phrase “or
     equal” should, in most instances, follow the brand description. This allows vendors of similar
     products to bid thus promoting maximum competition and the best value for the City.
     Should proof of equivalency arise, the burden is on the substituting vendor to provide it.
     Final judgment of equivalency shall reside with the Department Director or his/her
     designee.

J.   BONDS AND INSURANCE
     Bonds offer tangible protection in the form of monetary assurances that the bidder will
     meet his obligations. Bonds must be secured by the bidder at his/her own cost, and
     generally may be classified as follows:

     Insurance is required to safeguard the City from any claims resulting from damage to
     property and/or injury to persons caused by the vendor or his actions. The vendor, at his
     own cost, must secure insurance policies that name the City of Melbourne as an “additional
     insured” party. Reference Section 9, Bonds and Insurance.

K.   BID RESPONSE
     Aside from any attachments such as plans or drawings, a separate document titled
     Bidder Response Sheet shall be provided by the Purchasing staff. This page provides
     blank spaces labeled for the vendor’s company name, address, phone number, signature,
     title, date, and email address. Vendors will be advised in the bid document to use only the
     provided Bidder Response Sheet. The Bidder Response Sheet also provides a Bidder’s
     Certification statement that the vendor, by submitting his bid, acknowledges that he/she
     will meet all bid terms, conditions, and specifications contained in the bid. The purpose
     of requiring the Bidder Response Sheet is to control the bid submittal documents so that
     vendors do not submit bids which include verbiage negating or modifying the terms of the
     bid. Any vendor that attempts to do so will be rejected.

     Additionally, a bid pricing sheet(s) will be included with the bid solicitation for the
     bidder’s price by unit and/or total, delivery data, freight charges, warranty data, and any
     other special information required by a specific bid. Occasionally an Excel document or
     diskette/CD may be required for bidder pricing response.




                                        Section 7 - Page 4
L.   RECEIPT OF BIDS
     Control of the bid document is essential. Bidders will submit their bid in a sealed envelope
     with the following information clearly marked on the outside: [City Code 2-236(d)(1)]

     1.    Vendor Name
     2.    Due Date (month, day, year)
     3.    Time Due (hour/ a.m. or p.m.)
     4.    Bid Number
     5.    Bid Title

     Each bid received will be date and time stamped in the Purchasing Division.

     On occasion an envelope will be received without proper information on the outside
     identifying it as a bid reply. On such occasions, after an actual bid envelope has been
     opened, the appropriate bid information will be written on the outside of the envelope, time
     stamped, reason it was opened prematurely, and resealed for reopening on bid closing
     date.

     All sealed bids shall be received at the Purchasing Division, 900 E Strawbridge Avenue;
     Melbourne, FL 32901. The Purchasing Division is located in the City Hall Building, Second
     Floor, Downtown Melbourne.

     Sealed bids will be received in the Purchasing Division until the closing date and time. It is
     the sole responsibility of the bidder to ensure that their bid reaches the Purchasing Division
     before the closing date and hour stated on the bid document.

M. LATE BIDS
   Any and all bids received in the Purchasing Division or specified receiving location, after the
   scheduled date and time for opening will be considered a late bid and will be rejected,
   unless it is determined by the Purchasing Manager that the late receipt was due primarily to
   City mishandling of the bid after receipt. A late bid will be identified as a “Late Bid” on the
   outside of the envelope or container and remain unopened in the applied bid file. The
   bidder will be notified of their late bid status and given an opportunity to pick up the bid or
   make arrangements for return, at their expense. [City Code 2-236(h)]

N.   BID OPENING
     A sealed bid opening is a formal, official event and should be carried out in a professional,
     business-like manner. Purchasing staff shall avoid making any frivolous or preferential
     statements, which might compromise the City’s position and the reputation of the
     Purchasing Division. [City Code 2-236(d)(2)]

     Unless conditions demand another site, bids are opened in the Purchasing Division or
     nearby conference room. Bid openings are open to the public and all interested bidders.
     The bid opening time must be strictly adhered to.

     As the bid opening starts, the Purchasing Manager, or designated official opening the bid
     will introduce his/her staff and any City officials present. An announcement that “no award
     will be made at this time” will precede the opening of the first bid.

     Bids will be opened by the Purchasing Manager or his/her designee and recorded by
     another member of the Purchasing Staff. As each bid is read aloud, the dollar amount will
     be repeated clearly twice.



                                        Section 7 - Page 5
     After the last bid is opened, attending vendors are advised that an award decision will be
     made after review of the submitted proposals, and thanked for attending the bid opening. To
     avoid possible tampering, bids are not to be distributed for general investigation by the
     bidders present. The bid analysis and monitoring system of the department will also be
     confidential as per Florida Statute 337.168. Under no circumstances will vendors or the
     general public be allowed to privately review bids.

O. PRELIMINARY SCREENING OF BIDS
   Unsigned bids shall not be considered. After a bid has been opened, no changes in bid
   prices or other provisions shall be permitted. Under no condition will a facsimile (fax)
   response be acceptable.

     Prior to opening of bids a vendor may correct or withdraw his bid. Following the bid
     opening, when a mistake is either detected by the Purchasing Division or alleged by the
     bidder, the bidder should be asked to verify his bid and produce supporting evidence of the
     mistake. If the bidder responds supporting the mistake, the Purchasing Division may
     correct the bid if the mistake was an obvious or apparent clerical error. Examples are:

     1.    Obvious errors in placing decimal points.
     2.    Obvious discount errors.
     3.    Error in extension of unit prices, however, unit prices always prevail.

     If the mistake is not an obvious or apparent mistake of a clerical nature, it must be referred
     to the City Attorney for action.

P.   WAIVER OF INFORMALITIES
     Bids may be defective in that they fail to give certain information requested by the invitation.
     For example, a bid may fail to furnish required catalogs or descriptive data. These
     “minor” informalities may be corrected by allowing the bidder to furnish the information
     prior to award, or by waiving them if time does not permit their correction.

     The difference between a minor informality and a failure to conform to the essential
     requirements of the invitation may be difficult to determine without legal advice.
     Nevertheless, the decision to allow the defect to be corrected will be judged according to
     the fundamental principle – Is it in the best interest of the City to do so and/or will it be
     prejudicial to the interests of the other bidders?

     The City reserves the right to waive any bid informalities when deemed in its best
     interest.

Q. ALTERNATE BIDS, APPROVED EQUIVALENTS
   The bidder may offer any brand for which he/she is an authorized representative that
   meets or exceeds the specifications as written. If the bid is based on an “approved
   equivalent or equal” item, supportive information in the form of the manufacturer’s printed
   literature or brochures, sketches, diagrams, and/or complete specifications must
   accompany the bid. The bidder must explain in detail the reasons why the proposed
   equivalent or equal will meet specifications and not be considered an exception
   thereto. The City of Melbourne reserves the right to determine acceptance of proposed
   equivalent or equal items.

     If an Invitation to Bid does not expressly permit the submission of alternate bids, a bid
     which qualifies the specifications should be rejected as unresponsive. However, if a bidder
     submits a bid conforming to the specification and also offers an alternate, the alternate


                                         Section 7 - Page 6
     may be accepted if the bidder is the best value on both bids. Therefore, no prejudice
     results to the other bidders.

R.   TABULATION OF BIDS
     The requirement for recording bids involves the preparation of a Bid Tabulation Sheet. The
     information which normally is transcribed on the bid tabulation includes the invitation
     number, opening time and date, item number, description of items and services, quantity,
     unit, unit price, bidder’s name and location, deliveries, remarks or any other information
     which will be helpful in making the evaluation.

     A formalized bid tabulation is posted on DemandStar immediately following
     preparation.

S.   BID REVIEW
     After the bid opening, copies of the Tabulation Sheet, Bidder Response Sheets, Bid
     submittals, and all pertinent documents such as warranties, brochures etc. are forwarded to
     the requesting department.

     The requesting department should promptly and thoroughly review each bid for compliance
     with specifications. Bid items not meeting minimum specifications should be rejected.
     In general, the lowest responsible, responsive bid meeting specifications should be
     awarded the contract.

T.   NO BID
     On occasion, the Invitation to Bid will receive no responses. In those cases, the
     following options should be evaluated:

     1.   Contact vendors on bid list to determine reason for lack of response.
     2.   Contact the user department to determine if rebid is desired, using information
          obtained from vendor response.
     3.   Review specifications if decision is made to rebid.
     4.   Revise bid documents where appropriate.
     5.   File the closed bid in the Purchasing Division if decision is made not to rebid.

U.   ONLY ONE BID RECEIVED
      When only one bid is received, the following options should be evaluated:

     1.   Inquire of those who did not bid to determine the reason for lack of response.
     2.   Accept or reject the bid based on information received and taking into consideration
          the City’s position favoring competition.
     3.   Accept the bid if time is crucial and cost is reasonable, as the opportunity for
          competition was afforded by initial competition.
     4.   Reject the bid if time permits for re-solicitation.
     5.   Review specifications, revise if necessary and rebid.
     6.   City staff may negotiate with the one bidder if the price is over the approved budget
          or the Purchasing Division feels it would be advantageous to the City. If the lowest
          responsive bid is considered to be too high, the Purchasing Manager shall have the
          authority to negotiate a lower price. [City Code 2-247]

V.   TIE BIDS
     In the event two or more bids are received which are equal with respect to price with no
     evidence of collusive bidding, preference shall be given in the award in the following order:
     [City Code 2-246]


                                       Section 7 - Page 7
     1.    Bidder has a drug free workplace program in conformance with Florida Statute
           Chapter 287.
     2.    Local bidder’s business office is located within the incorporated limits of the City of
           Melbourne.
     3.    Bidder’s business office is located within Brevard County.
     4.    Purchasing Manager drawing of lots in public.

W. GENERAL CRITERIA FOR AWARD
   Recommendations for award of bids are made and/or approved by the requesting
   Department Director to the lowest, responsive and responsible bidder. In determining
   the lowest responsive and responsible bidder, the following, in addition to price, shall
   be considered as a basis for award:
   [City Code 2-244]

     1.    The ability, capacity, and skill of the bidder to perform under the terms of the bid
           documents
     2.    Whether the bidder can perform the contract or provide the materials or service
           promptly, or within the time specified, without delay or interference
     3.    The character, integrity, reputation, judgment, experience, and efficiency of the bidder
     4.    The quality of performance of previous contracts and the providing of materials
           and/or services
     5.    The previous and existing compliance by the bidder with laws and ordinances relating
           to the contract, or the providing of materials or services
     6.    The sufficiency of the financial resources and ability of the bidder to perform the
           contract or provide the materials or services
     7.    The quality, availability, and adaptability of the supplies, equipment, or contractual
           services to the particular use required
     8.    The ability of the bidder to provide future maintenance and service for the use of the
           subject of the contract
     9     The number and scope of conditions attached to the bid

     Should there be reason not to recommend award to the lowest bidder; the decision must be
     fully explained in a memo from the requesting department for formal evaluation by
     Purchasing staff.

X.   RESPONSIVENESS VS. RESPONSIBILITY

     Responsiveness:
         A responsive bid conforms to the material elements of an Invitation to Bid (ITB).
         Bids must conform in all material respects to the criteria in the ITB.
         A responsive bid conforms substantially to specifications and does not contain a
           material variance.
         A nonresponsive bid is not valid and must be rejected – it cannot be cured after bids
           are opened.
         The determination of responsiveness is not discretionary (although it does require
           interpretation of the standard).
         A contract awarded to a nonresponsive bidder is void.

     Responsibility:
         Relates to the bidder’s qualifications
         Evidence of responsibility is sometimes obtained after the bid opening.



                                       Section 7 - Page 8
             Determining responsibility sometimes involves discretion and judgment by the
              awarding staff.

Y.   REJECTION OF BIDS
     City staff shall have the power to reject any or all bids. The following reasons may be
     considered causes for rejection:

     1.       All prices too high or unbalanced
     2.       Sufficient funds not budgeted or available
     3.       An error in the specifications sufficient to have caused confusion and
              misunderstanding among bidders
     4.       The item on which bids were requested is no longer needed
     5.       Lack of adequate competition
     6.       Noncompliance of specifications
     7.       Submission of more than one bid in response to a single invitation
     8.       Lack of adequate work history and/or work experience
     9.       Debarment of bidder (vendor) Reference Section 13.04.

     A bid must be rejected for any of the following reasons:

     1.       Does not comply with applicable law.
     2.       Does not provide what the City seeks to acquire (either too much, or too little).
     3.       Contains a material defect (waiver would give the bidder a competitive advantage
              over the other bidders.)

     Framework for analyzing responsiveness:

           Does the bid comply with legal requirements? If not – reject.
           Does the bid provide what the City seeks to acquire? If not – reject.
           Does the bid contain an error or defect? (Analyze whether the error or defect is
            material or waivable).

     In the event all bids have been rejected for one or more of the reasons above, the
     Purchasing Division will notify all of the participants and the City staff involved of the official
     reason(s) for the ruling and the next step the City may take to fulfill the bid requirement.
     The bid specifications should be reviewed and any changes made to reissue the bid
     solicitation.

Z.   BID AWARD
     It shall be the responsibility of the Purchasing Division, in conjunction with the requesting
     department, to determine the bid that is the best value for the City. If a recommendation is
     made to accept a bid other than the apparent low bid meeting specifications, the
     Recommendation for Award form must include adequate documentation to justify the
     rejection of the low bid.

     After their review, the requesting department must forward their signed Bid
     Recommendation for Award to Purchasing. Provided there is no disagreement, Purchasing
     will then process either a City Manager Action Item or City Council Consent Agenda Item
     (Sample Form 5) depending upon approval threshold. Reference Section 4 of this manual.

     1.       City Manager Approval (Threshold 5): Purchasing staff will prepare and route a City
              Manager Action Item to the Financial Services Director for review and signature.



                                          Section 7 - Page 9
          The Finance Director, once Action Item is approved, will forward to the City Manager
          for approval and signature.

    2.    City Council Approval (Threshold 6): Purchasing staff will prepare and route a City
          Council Agenda Item to the using Department Director for their review and signature.
          Following departmental review, Department Director’s signature, and return to
          Purchasing, any noted corrections will be made and the Council Agenda Item will be
          routed through the Financial Services Director for review and signature. Once the
          Agenda Item is approved, the Financial Services Director will return the item to the
          Purchasing Division for scanning and submittal to the City Manager’s Office to be
          placed on the next available meeting’s agenda.

          Following either City Manager or City Council approval or award, the original signed
          action or agenda item will be returned to the Purchasing Division for processing.
          Purchasing staff will post the award on DemandStar. The Purchasing Division
          and/or department will prepare a requisition or Purchasing Card order for the award.

    3     Local Business/Minority Preference: City Council, on August 11, 2009, adopted
          Ordinance 2009-30, and amended on May 11, 2011 (Ordinance 2011-15) providing
          for local vendor preference in the awarding of bids and contracts. The City currently
          has no minority preference in the award of a bid. Reference Section 7.02 of this
          manual. [City Code 2-249.1]

Local Vendor Preference (7.02)
A. PURPOSE OF PREFERENCE POLICY
   The purpose of the local vendor preference policy is to return dollars spent by the City in
   purchasing and contract awards back into the local community. This is important to sustain
   local businesses and to create and retain jobs.

B. LOCAL PREFERENCE
   The City extends preference to those vendors, contractors, or service providers, who
   maintain a valid Local Business Tax Receipt, issued by either the City of Melbourne or
   Brevard County, at least one (1) year prior to bid submission; and, whose business address
   is located within the city limits of the City of Melbourne, or boundaries of Brevard County,
   Florida. A post office box shall not be considered a physical business address.

   A five percent (5%) preference is given to City of Melbourne vendors/contractors and a two
   percent (2%) preference is given to Brevard County vendors/contractors, for bids which do
   not fall into one of the exception categories listed below:

   1.    Goods or services provided under a cooperative purchasing agreement or piggyback
         agreement.
   2.    Purchases or contracts which are funded, in whole or part, by a governmental entity
         and the laws, regulations, or policies governing such funding prohibit application of
         such a preference.
   3.    Purchases made or contracts approved under emergency or noncompetitive situations,
         or for litigation related legal services, as described in the City’s purchasing policies.
   4.    Purchases or contracts with an estimated cost of $7,500 or less.
   5.    Purchases or contracts where the difference between the amount of the low quote/bid
         submitted by a qualified and responsive non-local business and the lowest quote/bid
         submitted by a qualified and responsive local business is greater than $25,000.
   6.    Where all bids are rejected.

                                      Section 7 - Page 10
C. WAIVER OF LOCAL PREFERENCE

   Any request for a waiver of local preference to any particular purchase or contract must be
   approved by either the City Manager or the City Council, depending upon approval threshold,
   prior to advertisement and solicitation of quote/bid. The City Manager or City Council, as the
   respective awarding authority, may approve the waiver of local preference upon review and
   at their discretion.

D. DEFINITIONS

   1.    Local business means the vendor is either a local-city or local-count business.

   2     Local-city business means the vendor has:

         a.    a valid business tax receipt issued by the City of Melbourne at least one (1) year
               prior to the solicitation of a formal quote/bid for which the business may seek local
               vendor preference, and
         b.    a physical business address located within the City, in an area zoned for the
               conduct of such business from which the vendor is operating its business, and at
               which it maintains full-time employees.

   3.    Local-county business means the vendor has:

         a.    a valid business tax receipt, issued by Brevard County at least one (1) year prior
               to the solicitation of a formal quote/bid for which the business may seek local
               vendor preference, and
         b.    a physical business address located within Brevard County from which the vendor
               is operating or performing its business, and at which it maintains full-time
               employees.

   4.    Non-local business means the vendor does not meet either the definition of local-city
         business or local-county business in subsection 1. or 2. above.

   5.    Formal quote means a solicitation of supplies and/or services between $7,500.01 and
         $25,000, processed by the Purchasing Division.

   6.    Formal bid means a solicitation (Invitation to Bid (ITB)) of supplies and/or services in
         excess of $25,000.

E. ESTABLISHMENT AS LOCAL-CITY OR LOCAL-COUNTY BUSINESS
   To establish that a vendor is a local business, a vendor shall provide written documentation
   of compliance (Local Vendor Preference Affidavit of Eligibility statement) (Sample Form 11)
   at the time of submitting a formal quote/bid. Post office boxes are not verifiable and shall not
   be used for the purpose of establishing the required physical business address. A vendor
   that misrepresents the local preference status of its firm in a formal quote/bid submitted to the
   city will lose the privilege to claim local preference status for a period of two (2) years.

F. LOCAL PREFERENCE IN PURCHASING AND CONTRACTING
   The City shall give preference to a local business in the purchase of commodities, personal
   property, general services, professional services (except CCNA), and the purchase of or
   contract for construction or renovation of public works or other public improvements by
   means of formal quote or competitive bid in the following manner. (See Exhibit 7, Local


                                       Section 7 - Page 11
Preference Process.)


1. Competitive quote/bid – Each formal competitive quote/bid solicitation shall clearly
   identify how the price order of the quotes/bids received will be evaluated and determined.

2. Local award – If the initial lowest quote/bid is submitted by a qualified and responsive
   local business, there is no further local preference given.

3. Local-city preference - Under a competitive quote/bid solicitation, when a qualified
   responsive, responsible non-local business submits the lowest price quote/bid, and a
   quote/bid submitted by one or more responsive, responsible local-city businesses is
   within five percent (5%) of the price(s) submitted by the non-local business, then each of
   the responsive, responsible local businesses (within 5%) shall have the opportunity to
   submit an offer to match the price submitted by the lowest non-local bidder. A price
   match document must be received within five (5) business days after issuance.

   If the lowest-city business submits an offer that matches the lowest non-local quote/bid,
   and the two vendors are similarly qualified and responsive bidders, then the award shall
   be made to the local-city business.

   If the lowest local-city business bidder declines or is unable to match the lowest non-local
   quote/bid, then the option to do so moves to the next initial lowest local-city business, etc,
   who is a similarly qualified and responsive bidder.

4. Local-county preference - At such time that there is no local-city business within five
   percent (5%) of the lowest bid, or all eligible local-city bidders decline the option to match
   the lowest quote/bid, then the offer to match the lowest non-local quote/bid shall go to
   each of the similarly qualified and responsive local-county businesses whose submitted
   bid is within two percent (2%) of the lowest quote/bid. A price match document must be
   received within five (5) business days after issuance.

   If the initial lowest local-county business bidder submits an offer that matches the lowest
   non-local quote/bid, and the two vendors are similarly qualified and responsive bidders,
   then the award shall be made to the local-county business.

   If the lowest local-county business bidder declines or is unable to match the lowest non-
   local quote/bid, then the option to do so moves to the next initial lowest local-county
   business, etc, who is a similarly qualified and responsive bidder.

5. No local award – Should none of the local bidders be willing to price match the lowest
   non-local quote/bid, then the lowest non-local bid shall be awarded the purchase or
   contract.

6. Unit pricing – If a local business accepts the opportunity to match the lowest non-local
   quote/bid, and that quote/bid is based on unit pricing and estimated quantities, then the
   unit prices for each or all quote/bid item(s) must be matched against the non-local
   quote/bid pricing, in accordance with the quote/bid solicitation requirement.

7. Tie quotes/bids – In the event of a tie between the initial quote/bid of two or more local
   businesses, the local business with the greatest number of full-time employees working in
   the City of Melbourne or Brevard County, respectively, shall be awarded the purchase or
   contract. [City Code 2-249.1]


                                    Section 7 - Page 12
Formal (Sealed) Proposals – Request for Proposals (7.03)
A.   PURPOSE OF PROPOSAL
     As with bids, the primary action is to ascertain clearly the purpose to be served by the
     proposal. Proposals are by nature more general than bids; it is vital to provide the correct
     parameters within which the vendors are to operate. Proposals are used when the price
     is not the only element that requires evaluation and consideration. The proposal will
     contain customized criteria for evaluation and scoring of points used in the
     determination of an award.

B.   PROPOSAL FORMAT
     As in the case of bids, a prepared standard format is maintained in the Purchasing Division
     for proposals.

     Proposal Conditions and Specifications: Conditions and specifications for a formal
     proposal generally differ from the same items for a bid in the following ways:

     1.    Due to the general nature of a Request for Proposal, conditions and specifications
           may be intermingled rather than separate.
     2.    Both conditions and specifications will tend to be broad, allowing the vendors a
           wide range of options from which to arrive at a proposal which accomplishes the
           desired goal.
     3.    Conditions and specifications serve more as guidelines than strict standards. The
           objective is to allow the vendor’s own expertise to design a proposal which will fulfill
           the City’s ultimate specified result.

     Conditions and specifications need not be so broad as to promote uninhibited proposals. By
     establishing boundaries within which to operate, and pointing the vendor toward the direction
     of the City’s goal, the Request for Proposal seeks to elicit the best talents in the market
     place to fulfill its needs.

C.   FORMAL PROPOSAL
     The vendor’s complete formal proposal should be submitted with one original and a
     sufficient number to supply each member of the Selection Committee with one copy each.

     Proposals should be supplied directly by the vendor as directed in the solicitation using the
     format and forms available in the Request for Proposal (RFP) document.

D.   INSURANCE, BONDS, LETTER OF CREDIT
     As in the case of bids, the City may require letters of credit, insurance, and/or bonds to
     protect its interests. Generally, proposals do not require bid bonds. Reference Section 9,
     Bonds and Insurance.

E.   FORMAL PROPOSAL OPENING
     The opening of proposals should be carried out in a professional, business-like manner.
     Proposals arriving after the scheduled date and time for opening will be considered a
     late proposal and will be rejected. The disposition of a late proposal will be the same as
     for a late bid, as detailed in Section 7.01 M. above.

     As proposals are opened, the Purchasing Manager, or his/her designee shall announce
     the name of each vendor, their address, and then confirm the number of proposal copies


                                       Section 7 - Page 13
     submitted. This data shall be recorded by another member of the Purchasing staff. At this
     time, no attempt should be made to read or compare the proposals. Following the
     opening, proposal copies will be forwarded to the appropriate Department Director and/or
     or Selection Committee members, with the original of each proposal maintained in the
     Purchasing file.

F.   PROPOSAL REVIEW
     Proposals references, certifications, and all documents shall be reviewed by the
     requesting Department Director and/or Selection Committee members. The committee
     approach is usually chosen when dealing with complex projects requiring input from
     various departments. The committee members will be selected by the project manager
     and/or the using department. If the committee approach is selected, then a department staff
     member will act as Chair of the Selection Committee. The Committee Chair will: facilitate
     meetings, prepare recommendations for the top ranked firms, and negotiate and prepare
     final contract documents. All committee meetings will be advertised and open to the public.
     The Committee Chair or designee will record and document all committee meetings.

     When price is the primary consideration, the lowest bidder whose proposal meets the
     specifications and provides the best value to be City should be chosen. However, when
     price is not the primary consideration and design, quality, or other factors are paramount the
     decision must be formally documented by the department or committee. The City reserves
     the right to negotiate prices and scope of work.

G. RECOMMENDATION OF AWARD
   After department and/or Selection Committee review, the Department Director or
   Committee Chair through the Department Director, shall submit a completed Evaluation
   Committee Report to the Purchasing Division. Provided there is no disagreement,
   Purchasing will then process either a City Manager Action Item or City Council Consent
   Agenda Item, depending upon approval threshold. Reference Section 4 of this manual.
   The City currently has no local business or minority preference in the award of a proposal.

Bid/Proposal Documents (7.04)
A.   FILES
     Purchasing maintains a complete control file on all formal bids and proposals for the City
     processed by Purchasing staff. These exclude formal bids and proposals issued and
     processed by Engineering. The Purchasing files are maintained by bid number, with the
     files divided by calendar year.

     The folder for each bid will contain, at a minimum, copies of the following:

     1.    Vendor’s List
     2.    Bid Invitation
     3.    Specifications
     4.    Bids Received
     5.    Bid Tabulation
     6.    Agenda Item Request
     7.    Council Meeting Summary
     8.    Requisition and Purchase Order or Visa Order
     9.    Contract
     10.   Bonds




                                        Section 7 - Page 14
B.   PUBLIC DISCLOSURE
     Under Florida’s Public Records Act, any person has the right to review any document
     which is kept by the City in the course of regular business. However, Florida Statute
     Chapter 119.07,3(m) of this Act exempts the City from allowing interested parties to
     examine sealed bids or proposals as follows:

     Sealed bids or proposals received pursuant to invitations to bid or requests for proposals
     are sealed from the public or other bidders until such time as the City provides notice of a
     decision or intended decision or within ten (10) days after bid or proposal opening,
     whichever is earlier.

     If the City rejects all bids or proposals submitted in response to an invitation to bid or
     request for proposals and the City concurrently provides notice of its intent to reissue the
     invitation to bid or request for proposals, the rejected bids or proposals remain sealed
     from the public or other bidders until such time as the City provides notice of a decision
     or intended decision concerning the reissued invitation to bid or request for proposals or
     until the City withdraws the reissued invitation to bid or request for proposals.

     A competitive sealed reply in response to an invitation to negotiate, as defined in Florida
     Statute 287.012, is exempt from s. 119.07(1) and s. 24(a), Art. I of the State Constitution
     until such time as the City provides notice of a decision or intended decision or until 20
     days after the final competitive sealed replies are all opened, whichever occurs earlier.

     If the City rejects all competitive sealed replies in response to an invitation to negotiate
     and concurrently provides notice of its intent to reissue the invitation to negotiate and
     reissues the invitation to negotiate within ninety (90) days after the notice of intent to
     reissue the invitation to negotiate, the rejected replies remain sealed from the public or
     other bidders until such time as the City provides notice of a decision or intended
     decision concerning the reissued invitation to negotiate or until the City withdraws the
     reissued invitation to negotiate. A competitive sealed reply is not exempt for longer than
     12 months after the initial City notice rejecting all replies.

     The Purchasing Division will accommodate vendor telephone requests for bid results to
     the maximum extent feasible:

     1.    Provide web site to see bid tab.
     2.    Provide data management phone number to request tab.
     3.    Provide information over the phone.

Bidder Protest (7.05)
Right to Protest - Any actual or prospective bidder or proposer, who is aggrieved in connection
with a solicitation or award of a bid or contract may protest to the Purchasing Manager in
accordance with established procedures in the Purchasing Manual. [City Code 2-249(a)]

Remedy - The Purchasing Manager is authorized to settle any protest regarding the solicitation
or award of a City contract, any claim arising out of the performance of a City contract prior to an
appeal to the City Manager or City Council, or the commencement of an action in court of
competent jurisdiction. [City Code 2-249(b)]

Stay of Procurement - In the event of a timely and properly filed protest, the Purchasing
Manager shall not proceed further with the solicitation or award until all administrative remedies
have been exhausted, or until the City Manager or City Council, as appropriate, makes a

                                       Section 7 - Page 15
determination on the record that the award of a contract is necessary to protect substantial
interests of the City. [City Code 2-249(c)]

A.   DEFINITIONS

     Interested Party - A party that is an actual or prospective bidder or offeror whose direct
     economic interest would be affected by the award or failure to award the third party contract
     at issue. Note: A subcontractor does not qualify as an “interested party”.

     Protest – A formal declaration of disapproval or objection issued by a concerned person,
     group, or organization that arises during the procurement process. A protest is a potential
     bidder’s or contractor’s remedy for correcting a perceived wrong in the procurement
     process.

     Protestor – A person, group, or organization that files a formal declaration of disapproval or
     objection. A protestor must qualify as an “interested party”.

B.   TYPES OF PROTEST

     There are three basic types of protests, pursuant to this manual:

     1.    Pre-bid Solicitation – Protest is received prior to the bid opening or proposal due
           date. Pre-bid protests are those based on the content of the initial solicitation
           published by the City requesting bids from vendors or other interested parties.

     2.    Pre-award Protest – Protest following recommendation for award and is received
           after receipt of bids or proposals, but prior to award of a contract.

     3.    Post-award Protest – Protest received after award of a contract. A post-award
           generally alleges a violation of applicable federal or State law and/or City policy or
           procedures relative to the seeking, evaluating, and/or awarding of the contract.

C.   PROTEST OF SPECIFICATIONS (Prior to Bid Opening)

     1.    Any protestor (actual or prospective bidder, or contractor), who is aggrieved in
           connection with the solicitation of a contract or bid, may protest on the grounds of
           irregularities in specifications or bid procedure. Such protest must be filed within
           three (3) business days (excluding weekends and holidays) from the time the facts
           become known and, in any case, at least five (5) business days prior to the opening
           of the bid.

     2.    Protest must be made in writing to the Purchasing Manager and shall state the
           particular grounds on which it is based and shall include all pertinent documents and
           evidence. No bid protest shall be accepted unless it complies with the requirements
           of this manual Section. Failure to timely protest bid specifications, requirements;
           and/or terms is a waiver of the ability to protest.

     3.    Stay of Procurement: In the event of a timely protest prior to bid opening, the City
           may proceed further with the solicitation or with the award of the contract unless the
           Purchasing Manager makes a written determination that the protest should be
           sustained.




                                       Section 7 - Page 16
D.   PROTEST OF AWARD RECOMMENDATION (After Bid Opening)

     1.   Any protest after the bid opening, including challenges to actions of any evaluation of
          selection committee shall be submitted in writing to the Purchasing Manager.

     2.   The Notice of Intent to File a protest must be received by the Purchasing Division no
          later than 4:00 pm on the third business day (excluding weekends and holidays)
          following the day of the protestor’s receipt of the City’s notice of award
          recommendation.

     3.   The Notice of Intent to File a protest document shall state all grounds being claimed
          for the protest and clearly indicate, in their document, that they are intending to file a
          formal written protest.

     4.   The affected party must then file a Formal Written Protest within ten (10) calendar
          days after the time for the filing of the Notice of Intent to File a Protest has expired.
          The Formal Written Protest shall contain the following:

          a.   City bid/proposal identification number and title
          b.   Name and address of the affected party and the title or position of the person
               submitting the protest
          c.   A statement of all claimed disputed issues of material fact. If there are not
               disputed facts, the formal protest must so indicate
          d.   A concise statement of the facts alleged and the rules, regulations, statutes, or
               constitutional provisions which entitle the affected party to relief
          e.   All information, documents, other materials, calculations, and any statutory or
               case law authority in support of the grounds for the protest
          f.   A statement indicating the relief sought by the affected protesting party
          g.   Any other relevant information that the affected party deems to be material to the
               protest

     5.   Stay of Procurement: Upon receipt of timely filed Notice of Intent to File a Protest, the
          Purchasing Manager will abate the award process of the formal bid/proposal, as
          appropriate, until the protest is heard pursuant to the informal hearing process as
          outlined below, unless the City Manager shall find and set forth in writing particular
          facts and circumstances that would require an immediate award of the formal
          bid/proposal for the purpose of avoiding a danger to the public’s health, safety, or
          welfare. Upon such written finding by the City Manager, an expedited protest hearing
          may be authorized.

     6.   Protest Review Board: A Protest Review Board shall be comprised of: (1) the
          affected Department Director, (2) Financial Services Director, (3) Purchasing
          Manager, and (4) Sr Contract Administrator, or their authorized representatives. The
          Protest Review Board shall conduct an informal hearing within seven (7) business
          days (excluding weekends and holidays) from receipt of the Formal Written Protest
          with the protesting firm, to attempt to resolve the protest. The purpose of the informal
          hearing by the Protest Review Board is to provide an opportunity to review the basis of
          the protest and to evaluate the facts and merits of the protest. The posting of a Public
          Notice for this meeting is required.

     7.   Once a determination is made by the Protest Review Board, the Review Board Chair,
          or designee, shall forward to the City Manager, their recommendation, which shall
          include all background information related to the procurement.


                                       Section 7 - Page 17
     8.   Upon approval of the recommendation by the City Manager, a City Manager Action
          Item or City Council Consent Item (depending on approving Purchasing category)
          shall be submitted for final award. Reference Section 4.01 of this manual.

     9.   Notice of the final decision of the City Manager or City Council shall be furnished to
          the protesting party, in writing, by the Purchasing Manager.

E.   PROTEST OF AWARD (After Bid Award)

     1.   A post-award protest must be received within five (5) business days (excluding
          weekends and holidays) of the award date.           Depending on the Purchasing
          category and/or the awarding authority, the Purchasing Manager, City Manager, or
          City Council shall have the authority to settle and resolve a post-award protest
          concerning the award of a bid. Reference Section 4.01 of this manual.

     2.   If the bid protest is not resolved by mutual agreement, the City Manager and the City
          Attorney, or their respective designees, shall promptly issue a decision in writing. The
          decision shall specifically state the reasons for the action taken and inform the
          protestor of his/her right to challenge the decision.

     3.   Any person aggrieved by any action or decision of the City Manager, the City Attorney,
          or their respective designees, with regard to any decision rendered under this section
          may appeal said decision by filing an original action in the Circuit Court of the
          Eighteenth Judicial Circuit in and for Brevard County, Florida, in accordance with the
          applicable court rules. Any action not brought in good faith shall be subject to
          sanctions including damages suffered by the City and attorney’s fees incurred by the
          City in defense of such wrongful action.

F.   FILING FOR PROTEST
     All protests must be filed in writing with the City of Melbourne Purchasing Division,
     Purchasing Manager, 900 E Strawbridge Avenue, Melbourne, Florida 32901.

G. PREVENTION

There are four (4) opportunities for the prevention of Bid Protests:

1.   While developing solicitation document:
         Ensure specification quality
         Communicate with bidders (RFI and Q&A)
         Develop fair, non-restrictive specifications
         Translate subjective evaluation criteria into measurable, objective criteria
         Determine evaluation criteria; state the criteria and award standard in the solicitation
           document

2.   While bidders are developing their bids:
         Allow written questions (due by a specific date)
         Carefully consider the questions to determine if a change is needed
         Respond to the questions through addenda, and change the specifications if
           necessary
         Postpone the bid deadline if required



                                        Section 7 - Page 18
3.   While bids are being evaluated:
         Evaluate bids based solely on the criteria in the solicitation document
         If a key criteria is not expressed in the solicitation document, start over
         Document and support all considerations not related to price

4.   After determination of award:
          Post notice of award
          Debrief unsuccessful bidders regarding the evaluation process
          Once a contract is in place, monitor contract performance, and document problems

Waiver of Competitive Bids (7.06)
The following types of purchases and contracts are exempt from competitive quotes or bids:
[City Code 2-237]

1.   CCNA - Architectural, engineering, landscape, registered surveying, and mapping services
     are governed by the Competitive Negotiations Act (CCNA) per FS 287.055, for services of
     $15,000 and less. [City Code 2-233(c)]

2.   Purchase Contracts – State, Government Agency, and Organizations contracts have already
     been competitively bid; therefore, the need to bid is satisfied for purchases of this nature.
     This method of purchase is commonly known as piggybacking, and is particularly
     desirable if time is a constraint or if the chances for obtaining better prices from other sources
     is poor. Utilization of these sources waives the requirement for a formal competitive bid.
     [City Code 2-237(1)] Reference Section 3.12 of this manual.

3.   Sole/Single Source – Sole Source may be used as a procurement method for the purchase
     of products or services when available from only one source. Single Source (non-
     competitive) may be used (when approved by the Purchasing Manager) when there is only
     one practicable and reasonable source wherein competitive bidding is not feasible or not
     advantageous to the City.

     A Sole Source purchase exists when research has determined there is only one potential
     provider for an item. A Single Source purchase exists when it is advantageous to the City to
     declare a purchase non-competitive because it will result in verifiable financial savings to
     the City; is a trial program; or utilizing a competitive process will be detrimental to timely
     securing the goods or services. More than one potential supplier may exist for a good or
     service. The Purchasing Division, in conjunction with the requesting department, will
     document the advantages of declaring the purchase non-competitive.

     A Sole/Single Source Request Form (Sample Form 2) must be completed and submitted
     with each request for sole or single source procurement.

4.   Emergency Purchases – Emergency purchases are allowable when certified by a
     Department Director to the City Manager, that a delay incidental to competitive bidding
     would be detrimental to the interest of the City. An “Emergency” is defined as a situation
     brought about by a sudden unexpected turn of events or any circumstance or cause
     beyond the control of the City in the normal conduct of its business. An emergency
     purchase is made to alleviate a situation where there is a threat to health, welfare, injury,
     or loss to the City that can only be rectified by immediate purchase of equipment, supplies,
     materials, or services. [City Code 2-248]



                                         Section 7 - Page 19
     An “emergency purchase” must fit the circumstances noted above and requires such
     competition as is practicable under the circumstance. Reference Section 5.04. [City Code
     2-248]

5.   Specific Items - These items are exempt from price quotes:
           a. Dues and memberships in trades or professional organizations
           b. Subscriptions for periodicals
           c. Legal advertisements
           d. Postage
           e, Expert witnesses
           f. Abstracts of titles for real property
           g. Title insurance for real property
           h. Court reporter services
           i. Water, sewer, electrical, telephone, and other utility services where competition
                is not available
           j. Copyrighted materials not available from multiple sources
           k. Seasonal and recreational service providers
           l. Hospitality services and expenses
           m. Fees and costs of job related seminars and training
           n. Travel
           o. Artists, music ensembles (bands) and other entertainment providers and animals




                                      Section 7 - Page 20
             Section 8                                               Purchasing Manual            302
                                                                     Issue Date   Revision/Date   Appd
             Specifications                                          4/28/2009                    JMS



Specifications (8.01)
A properly written specification describes the commodity or service required in terms clearly
understandable to both the seller and the buyer.

A.   SPECIFICATION DEVELOPMENT
     In considering and developing specifications, it must always be remembered that
     expenditures of the City of Melbourne are derived from public sources and cannot be
     expected to provide for unwarranted levels of quality. Therefore, the general policy of
     purchasing good, standard grades of merchandise, which represent an optimum of quality and
     price and provide a satisfactory level of service, should be followed. A Guide to Writing
     Specifications pamphlet is available in the Purchasing Division.

B.   PURPOSE OF SPECIFICATIONS
     Bids and quotations will be based on concise but adequate specifications. A lengthy
     specification composed or designed solely for the purpose of eliminating competition other
     than those able to supply a particular brand name will not be used. Specifications shall be
     detailed only to the extent that they assist the purchaser in obtaining the best value, provide a
     basis for full and fair competitive bidding upon a common standard, and should be free from
     any restrictions which would have the effect of restricting competition.

C.   TYPES OF SPECIFICATIONS
     Below are the basic types of specifications used to describe what is to be purchased.

     1.   Performance – Specifications which describe the characteristics and capabilities that
          are pertinent to the intended use of the item. This specification is less concerned as
          how a product is made, and more concerned as to how well it performs, and at what
          cost.

     2.   Design – Specifications which employ dimensional and other physical requirements of
          the item being purchased. This type specification concentrates on how a product is to
          be fabricated or constructed and is used when a structure or product has to be
          specially made to meet the purchaser’s unique need.

     3.   Approved Products List – Specifications based on manufacturers’ names, brand
          names, and model or catalog numbers which have been tested or examined and
          approved, prior to seeking prices.

     4.   Sample - Specifications requiring the suppliers to furnish representative samples of
          products offered for the purchaser’s comparison and evaluation is determining the
          successful bidder.

     5,   Name Brand “Or Equal”- Specification wherein the exact product of one or more
          suppliers or typical workmanship is designated as the level of quality desired, and the
          purchaser reserves the right to approve any other as equal or acceptable.




                                         Section 8 - Page 1
D.   RECOMMENDED PRACTICES

     The following guidance is provided for the preparation of a specification.

     1.    State exactly what is wanted clearly, definitely and completely.

     2.    Provide the means or basis for testing deliveries for conformance with the
           specifications.

     3.    Avoid non-essential quality restrictions that add to cost and difficulty in procurement
           without adding to utility and value.

     4     Avoid definitions that unnecessarily restrict competition.

     5.    Conform, so far as possible, to establish commercial and industrial standards.

     6.    State what you want the good or service to do or provide.

     7.    State what the good or service will be used for.

     8.    State any particular concerns for the item or project.

     Remember:

     Shall is used to express a binding requirement – mandatory.
     Will is used to express a declaration of purpose on the part of.
     Should or may are used to express non-mandatory provisions. It is best to avoid them.

E.   SOURCES

     Standard assistance is available from many sources, including the City’s Purchasing
     Division. Others include:

     1.    The State of Florida

     2.    American National Standards Institute, Inc (ANSI)

     3.    American Society for Testing and Materials (ASTM)

     4.    Underwriter’s Laboratories (UL)

     5.    Department of Transportation (DOT)

     6.    National Institute of Governmental Purchasing (NIGP)

     7.    Florida Association of Public Purchasing Officers (FAPPO)




                                        Section 8 - Page 2
             Section 9                                              Purchasing Manual             302
                                                                    Issue Date    Revision/Date   Appd
             Bonds and Insurance                                    4/28/2009    A    5/11/2011   JMS



Bonds (9.01)
Bonds offer tangible protection in the form of monetary assurances that the bidder will meet
his/her obligations. Bonds must be secured by the bidder at his/her own cost, and generally
may be classified as follows: [City Code 2-236]

A.   BID BOND
     This is a document, usually in an amount of 5% of the bid, which guarantees that the
     bidder will enter into a contract with the City if he/she wins the award. Bid bonds protect
     the City from erroneous or deliberate low bids which the vendor has no intention of
     honoring. Should he/she fail to enter into a contract, the bid bond is forfeited. Bid bonds
     must be submitted with the bid. Bid Bonds may be required where the contract price
     exceeds $25,000. [City Code 2-236(c)]

B.   PERFORMANCE BOND
     This bond is a surety instrument guaranteeing that the vendor will perform according to
     the terms of the contract, and is generally in an amount of 100% of the bid. This bond
     affords protection from non-performance and/or non-completion of major contracts, the
     efforts of which could result in considerable injury to the City. Should the vendor default,
     the bond is cashed and the City may then utilize the funds to complete the contract with
     another vendor. Performance bonds are submitted upon award of the contract.

C.   PAYMENT BOND
     This bond guarantees payment of sub-contractors and suppliers providing goods and
     services to the general contractor, who is under contract to the City. The payment bond
     relieves the City of financial liens against a project should the general contractor fail to pay
     his/her suppliers and sub-contractors. These creditors will look to the bond for payment.
     Payment bonds are submitted upon award of the contract. Note: Safekeeping
     procedures for custody of bonds and bid deposits will be determined by the
     Finance and Purchasing staff.

D.   LABOR & MATERIAL BOND
     Same requirements as the Payment Bond. The bond guaranty may, at the discretion of the
     City, be in the form of a cashier’s check, bank money order, bank draft of any national or
     State bank, certified check, or surety bond, payable to the City. The surety on any bid
     bond shall be a company recognized to execute bid bonds for contracts of the Federal
     Government.

E.   LETTER OF CREDIT
     Preferred in the case of certain construction projects or multi-year contracts. Must be
     irrevocable.

Insurance Terms and Conditions (9.02)
Insurance is required to safeguard the City from any claims resulting from damage to
property and/or injury to persons caused by the vendor or his actions. The vendor, at his own
cost, must secure insurance policies that name the City of Melbourne as an “additional insured”
party. The insurance guidelines in this section are applicable to all agreements, contracts, and
leases.


                                        Section 9 – Page 1
Incorporation of the provisions of this section shall be adhered to as closely as possible and as
practical to the specific commodity, repair, service, construction, or lease. Insurance guidelines
include basic coverage requirements, one or more of which should be chosen for individual
agreements, contracts, or leases, on an as-needed basis.

Agreements, contracts, and leases shall contain risk management/insurance terms to protect the
City’s interests.

A.   CITY DEFINED
     The term City (wherever it may appear) is defined to mean the City itself, its Council,
     officers, employees, volunteers, representatives, and agents.

B.   OTHER PARTY DEFINED
     The term Other Party (wherever it may appear) is defined to mean the other person or entity
     which is party to an agreement, contract, or lease, any subsidiaries or affiliates, officers,
     employees, volunteers, representatives, agents, or contractors and subcontractors.

C.   HOLD HARMLESS
     The Other Party agrees to hold the City harmless against all claims for bodily injury,
     sickness, disease, death, or personal injury or damage to property or loss of use resulting
     there from, arising out of an agreement, contract, or lease unless such claims are a result of
     the City’s sole negligence.

     The City shall also be held harmless against all claims for financial loss with respect to the
     provision of or failure to provide professional or other services resulting in professional,
     malpractice, or errors or omissions liability arising out of performance of an agreement or
     contract, unless such claims are a result of the City’s sole negligence.

D.   PAYMENT ON BEHALF OF THE CITY
     The Other Party agrees to pay on behalf of the City, and to pay the cost of the City’s legal
     defense, as may be selected by the City, for all claims described in the Hold Harmless
     paragraph.

     Such payment on behalf of the City shall be in addition to any and all other legal
     remedies available to the City and shall not be considered to be the City’s exclusive
     remedy.

E.   LOSS CONTROL/SAFETY
     Precaution shall be exercised at all times by the Other Party for the protection of all
     persons, including employees and property. The Other Party shall be expected to comply
     with all laws, regulations, or ordinances related to safety and health, shall make special
     effort to detect hazardous conditions, and shall take prompt action where loss
     control/safety measures should reasonably be expected.

     The City may order work to be stopped if conditions exist that present immediate danger
     to persons or property. The Other Party acknowledges that such stoppage will not shift
     responsibility for any damages from the Other Party to the City.

General Insurance Requirements (9.03)
The Other Party shall procure and maintain the described insurance, except for coverages specifically
waived by the City, on policies and with insurers acceptable to the City.



                                        Section 9 – Page 2
These insurance requirements shall not limit the liability of the Other Party. The City does not represent
these types or amounts of insurance to be sufficient or adequate to protect the Other Party’s interests
or liabilities, but are merely minimums.

Except for workers compensation and professional liability, the Other Party’s insurance policies shall be
endorsed to name the City as an additional insured to the extent of the City’s interests arising from this
agreement, contract or lease.

Except for workers compensation, the Other Party waives its right of recovery against the City, to the
extent permitted by its insurance policies.

The Other Party’s deductibles/self-insured retentions shall be disclosed to the City and may be
disapproved by the City. They shall be reduced or eliminated at the option of the City. The Other Party
is responsible for the amount of any deductible or self-insured retention.

Insurance required of the Other Party or any other insurance of the Other Party shall be considered
primary, and insurance of the City shall be considered excess, as may be applicable to claims which
arise out of the Hold Harmless, Payment on Behalf of City, Insurance, Certificates of Insurance and any
Additional Insurance provisions of this agreement, contract or lease.

If requested by the City, the Other Party shall furnish complete copies of the Other Party’s insurance
policies, forms and endorsements.

For Commercial General Liability coverage the Other Party shall, at the option of the City, provide an
indication of the amount of claims payments or reserves chargeable to the aggregate amount of
liability coverage.

Certificates of Insurance (9.04)
The Contractor shall procure and maintain required insurance coverages documented on
Certificates of Insurance. Such policies shall be from insurers with a minimum financial size of VIII
according to the latest edition of the AM Best Rating Guide. An “A” or better Best Rating is
“preferred;” however, other ratings if “Secure Best Ratings” may be considered.

Required insurance shall be documented in Certificates of Insurance which provide that the City
shall be notified at least 30 days in advance of cancellation, nonrenewal or adverse change.

New Certificates of Insurance are to be provided to the City at least 15 days prior to coverage
renewals.

The City shall be named as certificate holder; and, except for workers compensation and
professional liability, the Certificates of Insurance shall document the City as additional insured to
the extent of the City’s interests arising from the agreement, contract, or lease.

Receipt of certificates or other documentation of insurance or policies or copies of policies by the
City, or by any of its representatives, which indicate less coverage than required does not
constitute a waiver of the Other Party’s obligation to fulfill the insurance requirements herein.

Basic Insurance Coverages Required (9.05)
A.   COMMERCIAL GENERAL LIABILITY
     Commercial General Liability for public liability during the lifetime of a contract shall have
     minimum limits of $1,000,000 per claim, $1,000,000 per occurrence for Personal Injury,


                                          Section 9 – Page 3
     Bodily Injury, and Property Damage Liability. Coverage shall include Premises and/or
     Operations, Independent Contractors, Products and/or Complete Operations, Contractual
     Liability and Broad Form Property Damage Endorsements. Coverage shall not contain an
     exclusion or limitation endorsement for Contractual Liability or Cross Liability. Coverage
     for the hazards of explosion, collapse and underground property damage (XCU) must
     also be included when applicable to the work to be performed. All insurance policies shall
     be issued from a company or companies with a Best’s rating of no less than A:VII. All
     policies shall be on an occurrence made basis; the City shall not accept claims made
     policies. Specific endorsements will be requested depending upon the type and scope of
     work to be performed.

B.   PROFESSIONAL LIABILITY
     The Other Party shall agree to maintain Professional Liability or equivalent Errors &
     Omissions Liability at a limit of liability not less than $1,000,000 Per Occurrence. When a
     Self-insured Retention (SIR) or deductible exceeds $10,000, the City reserves the right,
     but not the obligation, to review and request a copy of the Other Party’s most recent
     annual report or audited financial statement. For policies written on a “Claims Made”
     basis, the Other Party warrants the retroactive date equals or precedes the effective
     date of this contract. In the event the policy is canceled, non-renewed, switched to an
     Occurrence Form, retroactive date advanced; or any other event triggering the right to
     purchase a Supplemental Extended Reporting Period (SERP) during the life of a
     Contract, the Other Party shall agree to purchase a SERP with a minimum reporting
     period not less than three (3) years. Use with consultants or engineers only.

C.   BUSINESS AUTO POLICY
     The Other Party shall agree to maintain Business Automobile Liability at a limit of liability
     not less than $500,000 each occurrence for all owned, non-owned and hired
     automobiles. In the event the Other Party does not own any automobiles, the Business
     Auto Liability requirement shall be amended allowing the Other Party to agree to
     maintain only Hired & Non-Owned Auto Liability. This amended requirement may be
     satisfied by way of endorsement to the Commercial General Liability, or separate
     Business Auto Coverage form.

D.   WORKERS COMPENSATION COVERAGE
     The Other Party shall purchase and maintain workers compensation insurance for all workers
     compensation obligations imposed by state law and employers liability coverage with limits of at
     least $100,000 each accident, $100,000 each disease/employee and $500,000 per
     disease/policy limit. The Other Party shall also purchase any other coverages required by law for
     the benefit of employees.

E.   ADDITIONAL INSURED REQUIREMENTS
     Except as to Workers’ Compensation and Employers’ Liability, said Certificate(s) shall
     clearly state that coverage required by the contract has been endorsed to include the
     City of Melbourne, a political subdivision of the State of Florida, its officers, agents and
     employees as Additional Insured with a CG 2026-Designated Person or Organization
     endorsement, or similar endorsement, to its’ Commercial General Liability. The name for
     the Additional Insured endorsement issued by the insured shall read “City of Melbourne,”
     political subdivision of the State of Florida, its officers, employees and agents along with
     the Contract and Bid number. The Certificate of Insurance shall unequivocally provide
     thirty (30) days written notice to the City prior to any adverse changes, cancellation, or
     non-renewal of coverage there under. Said liability insurance must be acceptable by and
     approved by the City as to form and types of coverage. In the event that the statutory
     liability of the City is amended during the term of this agreement to exceed the above

                                        Section 9 – Page 4
     limits, the Other Party shall be required, upon thirty (30) days written notice by the
     City, to provide coverage at least equal to the amended statutory limit of liability of the
     City.

F.   INDEMNIFICATION
     The Other Party shall indemnify, defend and hold harmless the City, its representatives,
     employees and elected and appointed officials, from and against all claims, costs, demands,
     legal fees, costs of action, losses, damages or other expenses arising as a result of any
     negligent act, conduct, error or omission by the City, its agents, employees in the
     performance of this contract or occasioned wholly or in part by any negligent act, conduct,
     error or omission by the Other Party, or its agents, employees or subcontractors, in the
     performance of this contract.

G. CONSTRUCTION TYPE CONTRACTS

     1.    Subcontractors: It shall be the responsibility of the Other Party to ensure that all
           subcontractors comply with the same insurance requirements referenced above.
     2.    Deductible Amounts: All deductible amounts shall be paid for and be the
           responsibility of the Other Party for any and all claims under this contract.
     3.    Umbrella or Excess Liability: The Other Party may satisfy the minimum limits
           required above for Commercial General Liability, Business Auto Liability, or
           Employer’s Liability coverage under Umbrella or Excess Liability. The Umbrella or
           Excess Liability shall have an Aggregate limit not less than the highest “Each
           Occurrence” limit for Commercial General Liability, Business Auto Liability, or
           Employer’s Liability. When required by the insurer, or when Umbrella or Excess
           Liability is written on “Non-Follow Form,” the City shall be endorsed as an
           “Additional Insured.”

           Coverage limits will be set at the advice of the Risk Management Department and
           should not be changed without their approval. The City, by and through its Risk
           Management Division, reserves the right, but not the obligation, to review and
           reject any insurer providing coverage. The above referenced Insurance
           Requirements are for use when a contract is utilized or any work will be done on
           City property.

Additional Insurance (9.06)
The following types of insurance may be determined relevant to an agreement, contract, or
lease by the City and will be required of the Other Party when so stipulated.

A.   PROPERTY COVERAGE FOR LEASES
     The Other Party shall procure and maintain for the life of the lease, all risk/special perils (including
     sinkhole) property insurance (or its equivalent) to cover loss resulting from damage to or
     destruction of the building and personal property/contents. The policy shall cover 100%
     replacement cost and shall include an agreed value endorsement to waive coinsurance.
     Coverage shall also include continued full payment of rents to the City for up to one year after
     damage or destruction of the property.

B.   LIQUOR LIABILITY
     In anticipation of alcohol being sold, the Other Party shall provide evidence of coverage for liquor
     liability in an amount equal to the general/umbrella/excess liability coverage. If the general liability
     insurance covers liquor liability (e.g. host or other coverage), the Other Party’s agent or insurer
     should provide written documentation to confirm that coverage already applies to this
     agreement, contract or lease. If needed coverage is not included in the general/umbrella/excess

                                           Section 9 – Page 5
     liability policy(ies) must be endorsed to extend coverage for liquor liability, or a separate policy must
     be purchased to provide liquor liability coverage in the amount required.

C.   OWNERS PROTECTIVE LIABILITY COVERAGE
     For renovation or construction contracts the Other Party shall provide for the City, an owner’s
     protective liability insurance policy (preferably through the Other Party’s insurer) in the name
     of the City.

D.   CONTRACTOR’S EQUIPMENT COVERAGE
     Contractor’s Equipment insurance is to be purchased to cover loss of equipment and
     machinery utilized in the performance of work by the Other Party. All risks coverage is
     preferred.

Selection of Insurance Requirements (9.07)
Although the City enters into a wide variety of agreements, contracts and leases each year, the majority
of these are grouped into four general types for risk management purposes.

A.   TYPE 1 - REPAIR, SERVICE, OR SUPPLY
     Equipment repair, janitorial services, electrical, plumbing, roofing, services, chemical supply,
     etc.

B.   TYPE 2 – CONSTRUCTION PROJECTS
     Building construction or renovation, road, sewers, etc.

C.   TYPE 3 – PROFESSIONAL SERVICES
     Architects, engineers, or other consultants providing professional services

D.   TYPE 4 – PROPERTY LEASES
     Buildings, office space, etc.

The Selection of Insurance Requirements (Exhibit 6) is intended to provide guidance for
determination of the necessary type and amount of coverage for each agreement, contract, or
lease.

Insurance Selection Procedure (9.08)
A.   The Purchasing Division shall assist the user department by interfacing with the City Risk Manager
     in determining the Risk Management guidelines (verbiage and insurance coverages) to include in
     agreements, contracts and leases. Such Risk Management concerns are usually launched in
     the solicitation process.
B.   The user department shall supply to the Purchasing Division a brief narrative of the project scope,
     general work activities and any special/possible Risk Management concerns peculiar to the
     project.
C.   The Purchasing Division shall create an inquiry to the City Risk Manager using the project
     narrative provided by the user department; and may include samples of Risk Management
     guidelines established from similar previous projects. Included in such inquiries shall be the Risk
     Management verbiage and Insurance Sections from Special Terms and Conditions or Standard
     Forms of Contracts as they relate and a blank sample Certificate of Insurance.
D.   The City Risk Manager shall review and advise the Purchasing Division by marking up the
     insurance sections sent to determine what the final verbiage, insurance types and coverages should
     be for the project; and graphically display such coverages on sample Certificate(s) of Insurance.

                                            Section 9 – Page 6
     Risk Management shall return the entire section with or without changes to assure
     completeness of intention.

E.   The Purchasing Division will assure the inclusion of these project specific guidelines from the City Risk
     Manager in the solicitation and/or in preparation of agreements, contracts and leases.

F.   Post-award Compliance will be provided by the Purchasing Division. The awardee will be notified
     of the award and the compliance requirements to manifest itself in Certificate(s) of Insurance. Any
     deficiencies are to be discussed with the contractor by the Purchasing Division and the
     contractor shall take measures to have such deficiencies corrected; and, new Certificate(s) of
     Insurance will be sent to the Purchasing Division who will provide final sign-off when fully
     compliant.

Special Procedures (9.09)
FAST TRACT (EMERGENCY) PROCESSING
Typically for small purchases, where service is needed on a Fast Track (Emergency) basis, the
Purchasing Division shall secure from the contractor certificate(s) of insurance on the coverages they
currently carry.

Acceptable certificates shall show the City as certificate holder, additional insured, and a 30-day
cancellation notice. Such policies shall be from insurers with a minimum financial size of VIII according to
the latest edition of the AM Best Rating Guide. An “A” or better Best Rating is “preferred;” however,
other ratings if “Secure Best Ratings” may be considered.

Ideally, the City Risk Manager should review and advise the Purchasing Division the level of acceptability
demonstrated by the certificates as applicable to the needs of the project. Deficiencies, if any, shall be
discussed by the Purchasing Division with the Contractor and revised certificates should be provided.
Review of the revised certificates should be made by the City Risk Manager until they are acceptable.

In cases where time will not permit the City Risk Manager a review of the certificates provided, then the
Buyer shall discuss with the Purchasing Manager the circumstances and their decision may provide
for the City Risk Manager or the Purchasing Division performing the review in keeping with Section 9.07,
Selection of Insurance Requirements, including the Matrix as approved by the City Risk Manager.
Corrective action on noted deficiencies shall be made by the Contractor until acceptable.

The Purchasing Manager shall, on a case-by-case basis, determine which of the above methods for
review, revisions if necessary, and final acceptance of insurance certificates should occur.




                                            Section 9 – Page 7
             Section 10                                            Purchasing Manual             302
                                                                   Issue Date    Revision/Date   Appd
             Professional Services                                 4/28/2009    A    5/11/2011   JMS



In order to comply fully with the requirements of Section 287.055, Florida Statutes, Consultants
Competitive Negotiation Act (CCNA), the following procedures shall be followed in selecting firms
to provide professional services, and in negotiating contracts for professional services. [City
Code 2-237(c)] [City Code 2-239]

Definitions (10.01)

A.   Professional Services - Services within the scope of the practice of architecture, professional
     engineering, landscape architecture, or registered surveying and mapping as defined by
     the laws of the State, or those performed by any architect, professional engineer,
     landscape architect, or registered surveyor in connection with his professional employment
     or practice

B.   City - City of Melbourne

C.   Firm - Any individual, firm, partnership, corporation, association, or other legal entity
     permitted by law to practice architecture, engineering or surveying in the State

D.   Compensation - Total amount paid by the agency for professional services

Competitive Selection – Guidelines (10.02)
A.   All RFP’s for Professional Services shall be processed through the Purchasing Division.

B.   Formal RFP’s must be issued to secure professional services, when the fee for a planning or
     study activity is estimated to exceed $25,000 or for a project the basic construction cost of
     which is estimated to exceed $250,000.

C.   All contracts for professional services which exceed $25,000 must be approved by City Council
     unless the firm is established using the Master Contracts.

D.   Contracts for services must be accompanied by a Purchase Order. Payments shall be issued
     against said order with proper authorization.

Competitive Selection – Procedures (10.03)

A.   A Selection Committee shall be formed to evaluate all proposals. The Purchasing Division and
     the City’s Project Manager should propose the names of three to five City employees to serve
     on the Selection Committee based on their expertise in relation to the scope and execution of
     the project to be awarded. At least one of the employees should be from the using department.
     The remaining members should consist of employees chosen from departments which would
     enhance the committee’s makeup. A Purchasing Division representative shall be an actual or
     ex-officio member of all Selection Committees, and shall monitor all Committee activities and
     act as the committee Chair.




                                       Section 10 – Page 1
B.   A Conflict of Interest Form should be filled out by each Committee member at the first meeting.

C.   Minutes of each Committee meeting, Conflict of Interest Forms, and scoring sheets are to be
     completed by the Purchasing Division. The Purchasing Division will facilitate the meeting and
     make sure all legal requirements are met. The Purchasing Division is responsible for preparing
     recommendations of the top ranked firm and of the preparation of the final contract documents.
     All originals are to be sent to the City Clerk with Agenda award recommendation.

D.   The Selection Committee should develop general guidelines for interview procedures for the
     short listed firms. Interviews and/or presentations shall be optional, as determined by the
     Selection Committee.

E.   Each member of the Selection Committee will assign preliminary scores to each firm after
     review of proposals and interviews, as per the established criteria in the bid specifications.

F.   The Selection Committee shall discuss their general impressions of the firms and finalize their
     scores.

G. Recommended criteria for evaluation of proposals include:

     1.    Prior experience with projects of similar size and complexity
           a. Number of similar projects
           b. Complexity of similar projects
           c. Three references (Contact name & telephone number)
     2.    Past record of performance for the City
           a. Project name, dates, cost
           b. City personnel assigned to the project
     3.    Qualifications of personnel including sub consultants
           a. Number of technical staff
           b. Qualifications of technical staff
           c. Number of licensed staff
           d. Education of staff
           e, Experience of staff
     4.    Availability of personnel
           a. Current work load/staff participation
           b. Organization of the team
     5.    Proximity of the nearest office to the project location
           a. Location
           b. Number of staff at the nearest office
     6.    Financial Statements
     7.    Technical approach to perform the tasks described in the Scope of Services
           a. Level of effort
           b. Effectiveness of the technical approach to complete each phase of the
               project, maintain time schedules and cost control
     8.    Whether the firm is a certified minority business enterprise as defined by the
           Florida Small and Minority Business Assistance Act of 1985

Competitive Negotiation (10.04)

A.   After finalists’ ranking, the Purchasing Division, Project Manager, and other designated City
     staff (if required), shall negotiate a contract for professional services with the firm which has
     been determined to be most qualified by the Competitive Selection Committee, at
     compensation within a range which has been determined to be fair, competitive, reasonable,
                                        Section 10 – Page 2
     and within budget. For any lump sum or cost-plus-a-fixed-fee contract over $150,000, the
     City shall require the firm receiving the award to execute a truth in negotiation certificate as
     required in Section 287.055 (5) (a), Florida Statutes.

B.   Should the Purchasing Division be unable to negotiate a satisfactory contract with the firm
     considered to be the most qualified, at a price the City determines to be fair, competitive,
     and within budget, negotiations with that firm shall be formally terminated. After negotiations
     have been terminated with a firm, negotiations cannot be reopened at a later date. The
     Purchasing Division shall then undertake negotiations with the second most qualified firm.
     Failing accord with the second most qualified firm, the Purchasing Division shall cancel
     negotiations. The Purchasing Division shall then undertake negotiations with higher ranked
     firms should they express flexibility in the negotiated price.

C.   Should the Purchasing Division be unable to negotiate a satisfactory contract with any of the
     selected firms, additional firms shall be selected in accordance with procedures noted
     above. Negotiations shall continue in accordance with these procedures until agreement is
     reached.

D.   Unless otherwise required, a lump sum contract shall be designated as the preferred form of
     contract for professional services contracts.

Less Than Three (3) Firms (10.05)
In the event less than three (3) firms express an interest in a project or less than three (3) firms are
deemed qualified by the Competitive Selection Committee, then the City Manager shall make a
determination as to whether to proceed with the lesser number of firms. If the decision is to
re-advertise, and after subsequent advertisement, three (3) firms still cannot be qualified, then the
City shall proceed hereunder with the firms qualified.

Prohibition against Contingent Fees (10.06)
Each contract for professional services shall contain the prohibition against contingent fees
required by and set forth in Section 287.055 (6) (a), Florida Statutes.

Small Contracts (10.07)

A.   The foregoing procedures shall apply in all cases except those in which the fee for
     professional services is estimated to be $25,000 or less for planning or study activity, or
     when the construction cost of the project is estimated to be $250,000 or less (Section
     287.055 (4) (c), Florida Statutes.)

B.   When this occurs, the procedure shall be:

     The Project Manager shall select a known responsible firm and request that they
     submit a proposal.

     Should the proposal appear to be excessive, another firm shall be requested to
     submit a proposal. The procedure shall continue until a proposal is received that is
     acceptable.

Emergencies (10.08)
In the event of bona fide public emergencies declared by the City Council, compliance with some
or all of the provisions of this procedure or Section 287.055, Florida Statutes, may be waived by
the City Manager.
                                         Section 10 – Page 3
Inconsistency with Section 287.055, Florida Statutes (10.09)
To the extent of any inconsistency between these regulations and Section 287.055, Florida
Statutes, the provisions of the Florida Statutes shall prevail.




                                   Section 10 – Page 4
            Section 11                                          Purchasing Manual         302
                                                                Issue Date   Amendment    Appr
            Construction Contracts                              4/28/2009                 JMS



In accordance with Section 2.233 of the Melbourne City Code, the solicitation and award of
contracts involving public works or public construction and improvements shall be administered
by the City’s Engineering Department.




                                     Section 11 – Page 1
             Section 12                                            Purchasing Manual        302
                                                                   Issue Date   Amendment   Appr
             Surplus Property                                      4/28/2009                JMS



Surplus property is used generically to describe any City property that is no longer needed or
useable by a using department of the City.     The disposition of surplus property is under the
authority of the Purchasing Manager. [City Code 2-250(a)]

The disposition of confiscated and lost and found property is under the authority of the Police
Department.

Definitions (12.01)
A.   Surplus Property – City owned property which has reached the end of its useful life or has
     become obsolete in City service to a using department.

B.   Confiscated Property (Forfeiture) – Private property seized by the Police Department and
     subsequently titled over to the City.

C.   Lost & Found Property – Private property located by or turned in to the Police Department
     for custodial safekeeping until the owner is located or until a time deadline expires.

D.   Real Property – Land, such as an easement, titled in the name of the City.

E.   Scrap – Damaged, spent, or otherwise unusable equipment, parts, or materials whose only
     value lies in recycling of its component parts or materials.

F.   Salvage – Property, which is so worn, damaged, or obsolete that it has no value for the
     purpose for which it was originally intended.

Methods of Disposal (12.02)

A.   Transfer – The preferred method of disposition whereby a surplus item is transferred to
     another using City department or to another governmental entity.

B.   Trade-in – Property declared as surplus may be offered as a trade-in for credit toward the
     acquisition of new property.

C.   Direct Sale to Public – Direct sale to the public via, but not limited to, public auction,
     internet auction, or competitive bids.

D.   Donation – Surplus property of value given to a civic or charitable organization.

E.   Destruction – Surplus or salvage property, which is unusable and determined to have no
     commercial value or property for which the cost of sale would exceed expected return, may
     be destroyed or abandoned.

Procedure for Surplusing of Property (12.03)
A.   Each department will report its surplus or obsolete stock, equipment, or commodities to the
     Purchasing Division by completing a multi-part Property Transfer/Disposition Form.
     (Sample Form 8)
                                       Section 12 – Page 1
B.   The Purchasing Division, at the Central Warehouse, will add the item(s) to the Surplus
     Property database, which can be made available to all divisions and departments.

C.   The Purchasing Division will take necessary action to determine if there is a need for the
     surplus item(s), which have not been requested by City departments or divisions, or by
     other governmental entities.

D.   Upon receipt of completed forms in the Purchasing Division, the property listed will be
     assessed to determine where storage should take place. Generally, vehicles will be
     surrendered to the Fleet Division, while all other surplus may be delivered to the Central
     Warehouse by the requesting department or picked up by Facilities and delivered to the
     Warehouse or other designated location.

Procedure for Sale of Materials (12.04)
A.   Generally, all surplus items are disposed of via public auction, either through use of an
     Internet auction site, solicited bid, or through a contracted auctioneer. Confiscated, and
     lost and found property may also be disposed of via public auction, either through Police
     Department action (Law Enforcement Trust Fund (LETF) only) or through the Purchasing
     Division. Note: City employees who desire to purchase surplus item(s) must do so
     via one of the public auction methods.

B.   Unless otherwise requested by City authorities, surplus items will be sold “as is where is” to
     the highest bidder.

C.   All sales by public auction will be processed and supervised by the Purchasing Division.
     The City will contract with a professional auctioneer, who will conduct auctions and collect
     all proceeds. All sales by public auction shall be final at time of sale. Sealed bid sales are
     final upon acceptance by the Purchasing Manager, City Manager, or City Council.

D.   Auctions shall be advertised twice prior to the actual sale date in a newspaper of general
     circulation in the Melbourne area. In addition, advertising may take place via auctioneer’s
     mailing list, other newspapers, National Auction Bulletin, or other means at the discretion of
     the Purchasing Division.

E.   Should attempts to sell surplus or scrap items fail, the Purchasing Manager may (at his
     discretion), declare the items as salvage and authorize their discard or destruction.

F.   Documentation of items for salvage status must be prepared by Purchasing staff and
     signed by the Purchasing Manager, and attached to the Property Transfer/Disposition Form
     for each item or lot of items.

G. Purchasing staff will complete a Surplus or Obsolete City Property Disposal Form and send
   to awarded buyer. Buyer pays a cashier in the Revenue Division of City Hall by cash,
   certified check, money order, or a company check with bank letter guaranteeing funds.
   Buyer will present cash register receipt and Surplus or Obsolete City Property Disposal
   Form to designated individual at surplus site for pickup of item(s).

Auction Sales (12.05)
A.   USING DEPARTMENT
     The using department is responsible to notify the Purchasing Division, in advance, of the
     surplus equipment to be transferred. The using department is also responsible to:

                                       Section 12 – Page 2
     1.   Transport or arrange for transportation of item(s) to the Central Warehouse or other
          designated auction site.
     2.   Prepare Property Transfer/Disposition Form for all transferred items.

B.   PURCHASING
     The Purchasing Division shall have overall responsibility for coordinating the efforts of City
     staff and the contract auctioneer during the preparation and conduct of the auction sale.
     Purchasing staff shall:

     1.   Maintain an inventory database listing of surplus equipment.
     2.   Advise all departments of the availability of the surplus equipment.
     3.   Release the equipment to any user department based on the greatest need.
     4.   Schedule an auction, coordinating with the auctioneer and overseeing the sale.
     5.   Supply list of items to be auctioned to auctioneer.
     6.   Collect the revenue for the sale.
     7.   Provide auction report.

C.   FACILITIES MAINTENANCE
     Provide or arrange for pickup of departmental item(s) to Central Warehouse, or other
     designated site.

D.   FLEET MANAGEMENT
     The Fleet Management Division is responsible to:

     1.   Submit a preliminary list of vehicles and equipment (having clear title and ready
          for sale at auction) to the Purchasing Division at least six (6) weeks prior to the
          sale.
     2.   Submit a final list to the Purchasing Division one (1) week prior to sale, including:
          year, make, model, vehicle identification number, color, odometer reading, etc. – a
          complete description of the vehicle(s).
     3.   Remove any decals, peripheral equipment, or tax exempt license tags from the
          auction vehicles.
     4.   Transport the vehicle(s) to the auction site, leave all applicable keys, and note any
          known mechanical deficiencies. Transport shall include towing for all vehicles not
          able to move under their own power (ex. inoperable cars, trailers, boats, etc.)
     5.   Complete, sign, and submit to Purchasing, a Property Transfer/Disposition Form
          for each vehicle (titled to the City of Melbourne) to be surplused for sale. NOTE:
          Vehicles must be titled to be sold.
     6.   Provide the Purchasing Division with the appropriate title, odometer statement (when
          appropriate) and application for transfer of title form for the vehicle(s) to be sold.
     7.   Provide qualified personnel with jumper cables to assist with startup of vehicles
          and equipment on day of auction. The person(s) chosen for this responsibility will
          also assist buyers with loading of their purchases onto or into their vehicles.
     8.   Lock up the Public Works compound at the completion of the auction.

E.   PUBLIC WORKS
     Provide sheltered and parking lot display area for auction.

F.   POLICE DEPARTMENT

     1.   Provide general interior/exterior cleanup of vehicle prior to release to Fleet
          Management or the Central Warehouse.



                                       Section 12 – Page 3
    2.    Contact the appropriate wrecker service to transport confiscated or lost and found
          vehicles or equipment to either the Fleet Management or Central Warehouse
          storage area.
    3.    Complete, sign, and submit to Purchasing, a Property Transfer/Disposition Form
          and either a Summary Final Judgment or Default Final Order of Forfeiture for each
          vehicle (titled to the City of Melbourne) to be surplused for sale. NOTE: Vehicles
          must be titled to be sold.
    4.    Provide security on auction day.

G. AUCTIONEER
   Auctioneer shall be responsible for conducting actual auction sale, including receipt of all
   payments and issuance of “paid” receipts for release of items sold. (Titles and keys for
   vehicles shall be released by Purchasing upon submittal of “paid” receipt).

    At a minimum, the contracted auctioneer shall:

    1.     Prepare, print, and mail Auction fliers to their “mailing list” of interested parties.
    2.     Provide to Purchasing Division a draft of the “Sale Catalog” prior to preparing
           copies for buyers, so that Purchasing staff can review for correctness and advise
           auctioneer of any necessary changes. One day prior to auction date, a minimum
           of two (2) copies of the finalized “Sale Catalog” should be given to Purchasing staff.
    3.     Mark all items for sale and verify VIN numbers on titles and vehicles to ensure they
           match.
    4.     Employ sufficient staff to prepare and conduct each auction in an orderly fashion.
    5.     Furnish reliable portable audio amplification equipment with low distortion and clear
           audio output.
    6.     Conduct auction in a manner befitting an authorized representative of the City and
           make every reasonable and prudent effort to maximize the value of the property
           being sold.
    7.     Provide the City with a certified check for the proceeds due the City within three (3)
           business days following the auction.

Scrap Sales (12.06)
Purchasing staff will contact the current vendor and arrange for pickup of scrap (metal, tires,
etc.). A Purchasing employee may accompany the vendor to the scrap area and monitor the
pickup. Following disposal at a scrap site, the vendor will provide a receipt ticket with scrap
weight, unit cost, and yield cost, along with payment check. Pickups are to be made Monday
through Friday during normal work hours.

Donation (12.07)
Occasionally, it may be practical to donate rather than sell an item(s) to another using agency or
non-profit organization. The City Manager shall have the authority to approve donations of
miscellaneous surplus property to such organizations. [City Code 2-250(b)] No Department
Director shall donate City property to any individual or agency, either public or private,
without City Manager approval.

Destruction (12.08)
Property which is unusable and determined to have no commercial value or property, for which
the cost of sale would exceed expected returns, may be destroyed or abandoned. A Property
Transfer/Disposition Form is required for destruction with adequate documentation.




                                      Section 12 – Page 4
Real Property (12.09)
Real property inventory shall be maintained by the Financial Services Department.           [COM
Administrative Policies and Procedures Manual No. 310]

Interest in real property that is titled in the name of the City may be authorized to be conveyed,
leased, or transferred by the City Council, upon the adoption of a resolution. [City Code 2-252]

All dispositions of real property shall be coordinated with the City Attorney, City Clerk, and the
Financial Services Department to ensure adequate legal review and proper recording and
accounting for the transaction. [City Code 2-252]

Real property may be declared as surplus and offered for sale by competitive bid if over $5,000
in value. Following Department Director review and City Council approval for sale of said
property, the Purchasing Manager shall:

1.   Obtain an appraisal.
2.   Obtain a survey and/or title search (when authorized).
3.   Prepare formal bid solicitation.
4.   Evaluate bids and make recommendation for sale to the highest bidder.

The City Attorney will provide the resolution approving the sale and authorizing the City
Manager to execute the necessary documents and take the necessary action to complete the
sale.

Upon award of the bid by the City Council, City staff shall take the necessary steps to complete
the sale transaction.

Once the sale is complete, the City Attorney or his designee shall provide the sale proceeds and
the closing documents directly to the Financial Services Department to properly deposit the
funds and record the transaction.




                                      Section 12 – Page 5
             Section 13                                             Purchasing Manual             302
                                                                    Issue Date    Revision/Date   Appd
             Vendor Relations                                       4/28/2009    A    5/11/2011   JMS



Vendor Relations (13.01)

A.   INTRODUCTION
     The City of Melbourne strives to develop effective relationships with vendors and
     encourages full and open competition wherever possible.         The City also endeavors to
     maintain strong enduring relationships with vendors of proven ability and desire to meet our
     needs. To accomplish this, our purchasing activities will be conducted so that vendors will
     value our business and make every effort to furnish our requirements on the basis of quality,
     service and price. The relationship between the purchaser and seller is one of mutuality.

     The City will buy only from suppliers who have adequate financial strength, high ethical
     standards, and a record of adhering to specifications, maintaining shipping promises and giving
     full measure of services. New sources of supply will be given due consideration as multiple
     sources of supply are necessary to ensure availability to materials and promote competition.

     It is essential to develop and maintain goodwill between the City of Melbourne and its
     suppliers. The reputation of the City can be promoted by:

     1.   Giving all salespersons a full, fair, prompt and courteous hearing.
     2.   Keeping competition open and fair.
     3.   Keeping specifications fair and clear.
     4.   Cooperating with the seller and considering their difficulties in providing the service or
          products.
     5.   Having consistent buying policies and principles.
     6.   Observing strict truthfulness in all transactions and in correspondence.
     7.   Respecting the confidence of the salespersons or their company as to confidential
          information.
     8.   Keeping free from obligation to any vendor.

B.   DEPARTMENT CONTACT WITH VENDORS
     In the day-to-day conduct of their duties, departmental employees are often in contact with
     potential vendors and suppliers. While it is sometimes desirable for employees to be in a
     position to recommend certain products, no department shall attempt to place orders with
     vendors, except as described in this manual.

C.   INITIAL VENDOR CONTACT
     It is suggested that all vendors desiring to sell goods and services to the City complete
     and submit a Bidder Mailing List Application Form (Sample Form 9) and a Vendor
     Registration (Sample Form 10). Vendors may make application by accessing the City’s web
     page @ www.melbourneflorida.org.

     The Bidder Mailing list is an internal database, maintained by the City’s Purchasing Division.
     Data is maintained to include:

     1.    Name and address of vendor.
     2.    Fax, email address and telephone number of vendor.
     3.    Class/Item number of commodities sold and/or services provided.



                                        Section 13 – Page 1
     A Vendor’s Guide to Purchasing pamphlet is available in the Purchasing Division providing
     basic procurement, bidding, and business information for doing business with the City of
     Melbourne.

     Additionally, a vendor list is maintained by the Financial Services Department and is used
     for disbursement of funds and is not associated with the Bidder’s List maintained by the
     Purchasing Division.

Code of Ethics and Conduct (13.02)
It is the policy of the Purchasing Division to promote the City’s reputation for courtesy, fairness, and
impartiality. The responsibility for achieving this goal rests with each individual who participates in
the procurement process. This includes the using agencies, the vendors, as well as the
Purchasing staff. The Purchasing Division adheres to a high standard of ethics and conduct as set
forth by the State of Florida Statutes, the National Institute of Governmental Purchasing (NIGP),
and the Florida Association of Public Procurement Officials (FAPPO).

Public purchasing officers are required to maintain complete independence and impartiality in
dealings with vendors, both in fact and in appearance, in order to preserve the integrity of the
competitive process and to ensure there is public confidence that contracts are awarded equitably
and economically.

The following are excerpts from Chapter 112, Part III, Florida Statutes, Code of Ethics for Public
Officers and Employees:

A.   SOLICITATION OR ACCEPTANCE OF GIFTS - Section 112.31(2)
     No public officer, employee of an agency, or candidate for nomination or election, shall solicit
     or accept anything of value to the recipient, including a gift, loan, reward, promise of future
     employment, favor, or service, based upon any understanding that the vote, official action, or
     judgment of the public officer, employee, or candidate would be influenced thereby.

B.   DOING BUSINESS WITH ONE’S AGENCY – Section 112.313(2)
     No employee of an agency acting in his official capacity as a purchasing agent, or public
     officer acting in his official capacity, shall either directly or indirectly purchase, rent, or lease
     any realty, goods, or services for his own agency from any business entity of which he or
     his spouse or child is an officer, partner, director, or proprietor or in which such officer or
     employee or his spouse or child, or any combination of them, has a material interest, or
     shall a public officer or employee, acting in a private capacity, rent, lease, or sell any
     realty, goods, or services to his own agency, if he is a state officer or employee, or to any
     political subdivision or any agency thereof, if he is serving as an officer or employee of that
     political subdivision.

C.   UNAUTHORIZED COMPENSATION - Section 112.313(4)
     No public officer or employee of an agency or his spouse or minor child shall, at any time,
     accept any compensation, payment, or thing of value when such public officer or employee
     knows, or with the exercise of reasonable care, should know, that it was given to influence a
     vote or other action in which the officer or employee was expected to participate in his official
     capacity.
D.   CONFLICTING EMPLOYMENT OR CONTRACTUAL RELATIONSHIP –
     Section 112.313(7)
     No public officer or employee of an agency shall have or hold any employment or contractual
     relationship with any business entity or any agency which is subject to the regulation of, or
     is doing business with, an agency of which he is an officer or employee, excluding those
     organizations and their officers who, when acting in their official capacity, enter into or


                                         Section 13 – Page 2
     negotiate a collective bargaining contract with the State or any municipality, City, or other
     political subdivision of the State; nor shall an officer or employee of an agency have or hold
     any employment or contractual relationship that will create a continuing or frequently
     recurring conflict between his private interests and the performance of his public duties or
     that would impede the full and faithful discharge of his public duties.

     In order to avoid the possibility of any misunderstandings regarding compliance with the
     law and regarding any appearance of impropriety relative to the competitive process for
     awarding contracts, it is respectfully requested that purchasing staff not accept anything of
     value offered from vendors.

E.   CONFLICT OF INTEREST
     State Statute, Chapter 38-305 defines conflict of interest as:
     Any public officer or employee of a public agency who has, or whose relative has, a substantial
     interest in any contract, sale, purchase or service to such public agency shall make known
     that interest in the official records of such public agency and shall refrain from voting upon or
     otherwise participating in any manner as an officer or employee in such contract, sale or
     purchase.

     The mere employment of an individual simultaneously by the City and an outside company
     that has a direct or indirect business relationship with the City, in itself established no conflict
     of interest. A conflict of interest would arise if actions by such an individual as a City employee
     conferred a direct or indirect benefit on the private business by which he was also employed
     or in which the employee has a financial interest.

     The law provides that when a potential for a conflict of interest arises, the City employee with the
     potential conflict make his interest known to the City and refrain from taking any actions on the
     matter creating the potential for a conflict of interest.

     When a potential for a conflict of interest arises, the City employee must either (a) provide
     written notification to the City Clerk identifying what relationship exists that could be classified as
     a potential for a conflict of interest; or (b) provide the same information during a City Council
     meeting so it can be recorded in the official minutes of the meeting.

B.   ETHICAL CONSIDERATIONS
     In any consideration of public responsibilities, there must be understanding and agreement
     with reference to the ethics of public purchasing. These concepts are expressed by the
     Florida Association of Public Purchasing Officers, Inc., Code of Ethics, which obligates
     every procurement official to an unquestionable standard of ethics and conduct (See Exhibit
     1).

Complaints against Vendors (13.03)
All complaints concerning vendor performance shall be directed to the Sr. Contract
Administrator in the Purchasing Division. The Administrator will investigate any charges
against a vendor and shall take whatever action is warranted to correct the problem. An
example of a performance complaint is failure to deliver goods and/or services as outlined in
an Invitation to Bid. Appropriate action might be cancellation of bid award, liquidated damages,
or some other punitive damages.




                                          Section 13 – Page 3
Debarment of Vendors (13.04)
Florida Statute 287.42 allows for the removal from a vendor list, any source of supply which fails
to fulfill any of its duties specified in a contract. A source of supply may be reinstated when the
entity is satisfied that further instances of default will not occur.

A.   DEBARMENT PROCEDURE
     After reasonable notice to a vendor of continued performance issues or other
     uncorrected problem areas, the Purchasing Manager, after consulting with the City
     Attorney, is authorized to debar a vendor for cause from consideration for award of
     contracts, for a period of not more than three (3) years. Causes for debarment
     include:

     1.   Conviction of a criminal offense as an incident to obtaining or attempting to
          obtain a public or private contract.

     2.   Conviction under State or federal statutes of any offense indicating a lack of
          business integrity or business honesty. Examples include: embezzlement,
          theft, forgery, bribery, collusion, and other public entity crimes as stated in
          Florida Statute 287.133.

     3.   Conviction under State or federal antitrust statutes arising out of the submission
          of bids or proposals.

     4.   Violation of contract provision of sufficient seriousness that the Purchasing
          Manager, with approval of the Financial Services Director and City Attorney,
          considers debarment appropriate. This would include failure to perform or
          unsatisfactory performance of a contract or bid.

     5.   Any other cause that the Purchasing Manager determines to be so serious as to
          affect responsibility as a contractor to the City.

     Any vendor being debarred will be notified in writing by the Purchasing Manager. All
     reasons for the action being taken will be explained. The decision to debar the
     vendor is final unless otherwise overridden by the City Manager.

B.   REINSTATEMENT
     A person or corporation may be reinstated to do business with the City under the
     following conditions:

     1.    Discovery of new and material evidence not previously available

     2.    Dismissal of indictment or reversal of conviction, or

     3.    Bonafide change in ownership or management sufficient to justify a finding of
           present responsibility.

     The request of reinstatement shall be forwarded in writing to the Purchasing
     Manager. The City Manager shall determine whether to reinstate based on written
     submission of evidence to one or more of the above conditions.




                                       Section 13 – Page 4
             Section 14                                             Purchasing Manual             302
                                                                    Issue Date    Revision/Date   Appd
             Warehouse & Inventory                                  4/28/2009    A    5/11/2011   JMS



The City of Melbourne maintains a Central Warehouse to stock commodities and supplies, for
use by departments, which are repeatedly used and/or can be more economically purchased in
volume.

Warehouse Inventory (14.01)
The basic inventory line at the Central Warehouse shall be only those items necessary to support
the various City departments on a daily basis. All procurements for established stocked parts
must be made through use of the MUNIS Purchase Requisition process as detailed in Section 5.
Unit pricing for inventory items is based on the average pricing for all on-hand inventories for
each inventory part number. A catalog of all stocked inventory items is available from the
Warehouse. Purchasing staff is responsible for the replenishment of inventory stock.

Accounting of inventory will be completed through a complete physical count to be conducted
each year. In addition to the physical inventory count, cycle counts will be conducted at the end
of each month.

Warehouse staff is responsible for maintaining a Master Parts List of all inventoried parts under
their control. This list will be maintained on a daily basis to include both active and inactive part
numbers. Part numbers will follow the part number scheme that has been established by the
City.

Warehouse staff is responsible to complete an ending inventory report, following inventory, at the
end of each fiscal year.

Warehouse Security (14.02)
The normal Warehouse hours of operation are 7:00 am to 3:30 pm, Monday through Friday, with
the exception of City holidays. Warehouse staff is responsible for insuring that all entrances and
exits to the Warehouse are secured at all times from unauthorized use.

Inventory Removed after Normal Working Hours (14.03)
Items should not be removed from the Warehouse or fenced area after normal hours unless an
emergency exists that requires immediate access to the inventory. Keys will be issued to
Department Directors that utilize the Warehouse with instructions that the keys are to be used
only in the case of an emergency. Departments should maintain an inventory of items outside of
the Warehouse for items that will be needed for non-emergencies and for weekend work. If an
emergency exists and withdrawal of inventory is necessary, the department employee taking the
inventory will be responsible for notifying the Warehouse, in writing, of the item(s) taken.

Warehouse Receiving (14.04)
Receiving at the Central Warehouse, 2893 Harper Road, will be conducted between the
hours of 7:30 am to 11:30 am and 1:00 pm to 3:15 pm, Monday through Friday, excluding
City holidays.




                                        Section 14 – Page 1
             Section 15                                              Purchasing Manual             302
                                                                     Issue Date    Revision/Date   Appd
             City of Melbourne Code                                  4/28/2009    B    5/11/2011   JMS



ARTICLE VI. PURCHASING

Sec. 2-231. Definitions.
The following terms, phrases, words, and their derivations shall have the meaning given
herein, when not inconsistent with the context.

Professional services shall mean any service performed by a professional. A professional is one
performing any vocation requiring a four-year college degree as a prerequisite to licensing by the
State of Florida. The four-year degree is not required to be in the field of study specifically
related to the vocation in question. A professional service includes, but is not limited to,
services performed by a certified public accountant, an attorney, or a doctor. The positions of
city manager, financial advisor or consultant, or bond underwriter shall also be included within
this definition.

Purchasing manager shall mean the purchasing agent as provided for in the Charter.

Services shall mean the furnishing of labor, time, or effort by a contractor.

Supplies shall mean and include all supplies, materials and equipment.

Using agency shall mean any department or division, agency, commission, board, bureau,
committee, institution, authority; or other establishment or official of this city, which utilizes any
supplies, services, or any other item procured under this Code. (Ord. No. 2000-32, § 1, 5-9-00)

Sec. 2-232. Establishment of a division of central purchasing; general purpose.

(a)   In accordance with the Charter, there is hereby established a central purchasing
      program to be located in the division of purchasing. The central purchasing program shall
      be administered by a purchasing manager who shall function as the city's purchasing
      agent. The purpose of the division of purchasing is to promote efficiency and economy; to
      effect coordination in the purchase of commodities for the city; and to provide overall direction
      of contractual services, procurement policies, rules, and procedures.

(b)   The purchasing manager shall develop and maintain a purchasing manual which shall
      provide for rules, regulations, and procedures for the internal management and operation
      of the division of purchasing and such rules and regulations as shall be prescribed by the
      city manager and the city council.

(c)   Except as otherwise provided in the Code, the purchasing manager shall supervise the
      procurement of all supplies, services, or other items as needed by the city; exercise
      supervision and control over inventories of supply belonging to the city; sell, trade, donate,
      destroy, transfer or otherwise dispose of surplus property belonging to the city; establish
      and maintain programs for the inspection, testing, and acceptance of supplies services;
      establish and maintain programs for the development and usage of standard
      specifications for supplies and services; and determine the lowest or highest responsible and
      responsive bidder/proposer, as the case may be. (Ord. No. 2000-32, § 1, 5-9-00)



                                        Section 15 – Page 1
Sec. 2-233. Jurisdiction on public improvement or professional service contracts.

(a)   The solicitation and award of contracts involving public works or public construction and
      improvements shall be administered by the engineering department. Public works and
      public construction and improvement contract solicitation and award shall be specifically
      subject to the procedures set forth in sections 2-235, 2-236, 2-237, 2-238, 2-239, 2-
      240, 2-241, 2-242, 2-243, 2-244, 2-245, 2-246, 2-247, 2-248, and 2-249, and subject to
      section 255.20, Florida Statutes, as amended from time to time and to the extent that the
      public work or construction and improvement meets the cost thresholds in those statutes.
      The solicitation and award of contracts involving public works or public construction and
      improvements are otherwise exempt from this article. Notwithstanding that the foregoing
      city code provisions make reference to certain tasks being accomplished by the purchasing
      division, in the case of the solicitation and award of contracts involving public works or public
      construction and improvements, said tasks shall be accomplished by the engineering
      department.

(b)   The solicitation and consummation of contracts involving leases by the city for all grounds,
      buildings, or other space required by using city agencies shall be administered by the city
      manager or his designee. Contract consummation of leases by the city for all grounds,
      buildings, or other space required by using city agencies shall be specifically subject to
      the procedures set forth in sections 2-235, 2-239, 2-241, 2-242, and 2-243. The solicitation
      and consummation of contracts involving leases by the city for all grounds, buildings, or
      other space required by using city agencies shall be otherwise exempt from this article.
      Notwithstanding that the foregoing provisions may make reference to certain tasks being
      accomplished by the purchasing division, said tasks shall be accomplished by the city
      manager or his designee.

(c)   Contracts for professional services shall be exempt from this article relating to purchasing.
      The purchase of professional services subject to the Consultants' Competitive Negotiation
      Act, section 287.055, provisions of that enactment, as amended from time to time. The
      purchase of professional services subject to section 11.45, Florida Statutes, shall be awarded
      pursuant to the provisions of that enactment, as amended from time to time. Except as
      otherwise provided in this subsection, the purchase of professional services up to and
      including fifteen thousand dollars ($15,000.00) may be awarded by the city manager. Except
      as otherwise provided in this subsection, the purchase of professional services for in excess
      of fifteen thousand dollars ($15,000.00) shall be awarded by city council.
      (Ord. No. 2000-32, § 1, 5-9-00)

Sec. 2-234. Unauthorized purchases.
Except as herein provided, it shall be unlawful for any using agency to order the purchase of any
services, supplies, or commodities within the purview of this article other than through the
purchasing division. The city shall not approve and shall not be bound by any purchase order or
contract made contrary to the provisions of this article. (Ord. No. 2000-32, § 1, 5-9-00)

Sec. 2-235. Encumbrance of funds.
Except in cases of emergency, neither the purchasing manager nor a using agency shall issue
any purchase order for delivery if it has been determined that there is an insufficient unencum-
bered appropriation balance, in excess of unpaid obligations, to defray the amount of such order
in the account of the using agency. (Ord. No. 2000-32, § 1, 5-9-00)




                                        Section 15 – Page 2
Sec. 2-236. Formal bids.

(a)    Generally. All supplies and services, except as otherwise provided herein, when the
       estimated cost shall exceed twenty five thousand dollars ($25,000), shall be purchased after
       competitive formal bidding (sealed bids) and award to the lowest and best responsible and
       responsive bidder. City council shall have authority to waive formal bid procedures in cases
       where it deems it advisable to do so, under the terms and conditions provided for in this
       article.

(b)   Notice inviting bids. Invitations to bid shall be subject to the following:

      (1)   Newspaper. The notice inviting bids shall be published once in the legal section of a
            newspaper of general circulation in the city and at least five (5) calendar days
            preceding the last day set for the receipt of proposals. The notice shall include a
            general description of the supplies to be purchased or sold or services to be per-
            formed and shall state where bid invitations and specifications may be secured and the
            time and place for opening bids.

      (2)   Bidders' list. Sealed bids shall also be solicited from responsible prospective suppliers
            from a bidders' list maintained in the purchasing division. Invitations sent to the
            vendors on the bidders' list shall be limited to commodities that are similar in character
            and ordinarily handled by the trade group to which the invitations are sent.

      (3)   Bulletin board. All pending purchases or sales shall also be advertised by a notice
            posted on a public bulletin board in city hall.

(c)   Bid deposits. When deemed necessary by the purchasing division, a bid deposit
      (surety) and/or performance bond may be prescribed in an invitation to bid; however, a
      performance bond may be required by the city council in any case where the contract price
      exceeds twenty-five thousand dollars ($25,000.00). Unsuccessful bidders shall be entitled to
      a return of surety where the city has required such. A successful bidder shall forfeit any
      required surety upon failure on his part to enter into a contract after city approval or to meet
      other requirements as set forth in the invitation to bid.

(d)   Bid-opening.

      (1)     Sealed. Bids shall be submitted sealed to the purchasing division and shall be
              identified as a bid on the envelope.

      (2)     Opening. Bids shall be opened in public at the time and place stated in the public
              notice.

      (3)     Tabulation. A tabulation of all bids received shall be available for public inspection.

(e)   Award. The provisions of section 2-244 shall apply.

(f)   Rejection of bids. The city shall reserve the right to reject all bids or parts of all bids for one or
      more supplies or services included in the proposed specifications. A statement of the reason for
      the rejection shall be prepared and made a part of the record.




                                          Section 15 – Page 3
 (g) Correction or withdrawal of bids; cancellation of awards. Correction before bid opening or
     withdrawal of inadvertently erroneous bids before or after bid opening or cancellation of
     awards or contracts based on bid mistakes may be permitted. Mistakes discovered before
     bid opening may be modified or withdrawn by written notice from the bidder and received in
     the office designated in the invitation to bid prior to the time set for bid opening. After bid
     opening, corrections or clarifications in bids shall be permitted only to the extent that the
     corrections do not materially affect the terms, conditions and specifications and may be
     subject to the approval of the city attorney.

(h)   Late bids. Bids received and clocked in after the hour and date specified in the proposal
      form will not be opened.

(i)   Contracts. Supplies and services to be provided over a period of time may be a subject of a
      formal contract signed by the successful bidder, the purchasing manager, and/or the city
      manager.
      (Ord. No. 2011-15, § 1, 5-10-11)

Sec. 2-237. Waiver of formal bid requirements.
When the estimated cost of supplies and/or services exceeds twenty five thousand dollars
($25,000), a contract for same may be awarded to the lowest and best responsible bidder without
formal contract and without formal bidding, as specifically provided below:

(1)    Purchase from governmental entity. The city may buy from another governmental entity
       contracts or bids whereby such contract or formal bid followed formal bid procedures of
       sealed written bids, public opening, and legal advertising.

(2)    Sole source procurement. A contract may be made without competition when the using
       agency certifies to the purchasing manager in writing that after conducting a good faith
       review of available sources, that there is only one source for the required item or service, or
       by negotiation where the procurement by competitive procedure is not feasible or
       practicable.

(3)    Surplus property. The city manager may authorize the purchasing manager to purchase
       surplus property as donated by the State Department of General Services, Division of
       Surplus Property, as authorized by Florida Statutes.
       (Ord. No. 2011-15, § 1, 5-10-11)

Sec. 2-238. Formal proposals.
When the city manager determines that the use of competitive sealed bidding is either not
practicable or advantageous to the city, an award or a contract may be entered into by use of
the competitive sealed proposals method.

(1)    Request for proposals. Proposals shall be solicited through a request for proposals (RFP).

(2)    Public notice. Adequate public notice of the request for proposals shall be given in the
       same manner as provided in this article.

(3)    Quotation of fees. The city shall require interested persons to submit a quotation of their
       proposed fees or prices for the performance or delivery of their proposed services or goods,
       unless such interested persons are prohibited by law.

(4)    Evaluation factors. The request for proposals shall state the relative importance of price
       and other evaluation factors.

                                       Section 15 – Page 4
(5)   Discussion with responsible offerors; revisions to proposals. For the purpose of clarification
      and to assure a full understanding of and conformance to the solicitation requirements,
      discussions shall be conducted with at least three (3) of the best qualified responsible
      offerors, who submit proposals, who are determined to be reasonably successful in being
      selected for award. Offerors shall be provided an opportunity to discuss and revise propos-
      als. Revisions may be permitted through negotiations after submission and prior to award
      for the purpose of obtaining the best and final offer.

(6)   Award. Award shall be made to the responsible offeror whose proposal is determined in
      writing to be the most advantageous to the city taking into consideration price and the
      evaluation factors set forth in the request for proposals. Approval of final award will be
      governed by the total estimated cost and provisions set forth in this article. No other factors
      or criteria shall be used in the evaluation.
      (Ord. No. 2000-32, § 1, 5-9-00)

Sec. 2-239. Contracts.
All contracts for purchase of commodities or performance of services for the city which exceed
twenty five thousand dollars ($25,000), except for contracts governed by the Consultant's
Competitive Negotiations Act (CCNA), shall be awarded in accordance with the provisions of the
formal bids and formal proposals. All contracts which do not exceed twenty five thousand dollars
($25,000) may be approved by the purchasing manager without competitive bidding or negotiation.
If the city has an existing contract for the performance of such services, the contract may be
renewed annually, provided that the services rendered have been satisfactory.

Contracts in the amount of $7,500.01 to $15,000 shall be approved by the appropriate
department director and the purchasing manager. Contracts in the amount of $15,000.01 to
$25,000 shall be approved by the appropriate department director and city manager.
(Ord. No. 2011-15, § 1, 5-10-11)

Sec. 2-240. Cooperative purchasing.
The purchasing manager shall have the authority to join with other units of government in
cooperative purchasing plans when the best interest of the city would be served.
(Ord. No. 2000-32, § 1, 5-9-00)

Sec. 2-241. Open market (informal) purchases.
Purchases of supplies and/or services with a value of twenty five thousand dollars ($25,000) or
less shall be made without observing the provisions prescribed for formal bids or formal
proposals. Competitive informal bids (quotes) shall be obtained as provided below:

(1)   Small purchases. Purchases which do not exceed one thousand dollars ($1,000.00) may
      be procured without competitive bids, when it best serves the interests of the city.

(2)   Purchases between one thousand dollars ($1,000.00) and seven thousand five hundred
      dollars ($7,500.00). Purchases of supplies and/or services, except in case of emergency or
      as otherwise provided herein, between one thousand dollars ($1,000.00) and seven thousand
      five hundred dollars ($7,500.00) shall require a minimum of three (3) competitive written
      quotes.

(3)   Purchases between seven thousand five hundred dollars and one cent ($7,500.01) and
      twenty five thousand dollars ($25,000). Purchases of supplies and/or services, except in
      case of emergency or as otherwise provided herein, between seven thousand five hundred


                                       Section 15 – Page 5
       dollars and one cent (7,500.01) and twenty five thousand dollars ($25,000) shall require
       formal quotation processing by the purchasing division.
(Ord. No. 2011-15, § 1, 5-10-11)

Sec. 2-242. Purchasing awards thresholds.
Except as otherwise provided in this article, the authority for awards of contracts or purchases
shall be made as follows:

(1)   Purchasing manager. Amounts up to and including fifteen thousand dollars ($15,000.00).

(2)   City manager. Amounts exceeding fifteen thousand dollars ($15,000.00) up to and
      including twenty five thousand dollars ($25,000.00).

(3)    City council. Amounts in excess of twenty five thousand dollars ($25,000.00).
(Ord. No. 2011-15 § 1, 5-10-11)

Sec. 2-243. Prohibition against subdivision.
No contract or purchase shall be subdivided to avoid the requirements of this article.
(Ord. No. 2000-32, § 1, 5-9-00)

Sec. 2-244. Awards generally.
Awards of contracts or purchases shall be to the lowest most responsible bidder. In determining
the lowest responsible bidder, the following, in addition to price, shall be considered:

(1)    The ability, capacity, and skill of the bidder to perform under the terms of the bid
       documents.

(2)    Whether the bidder can perform the contract or provide the materials or service promptly,
       or within the time specified, without delay or interference.

(3)    The character, integrity, reputation, judgment, experience, and efficiency of the bidder.

(4)   The quality of performance of previous contracts and the providing of materials and/or
      services.

(5)   The previous and existing compliance by the bidder with laws and ordinances relating to the
      contract, or the providing of materials or services.

(6)   The sufficiency of the financial resources and ability of the bidder to perform the contract or
      provide the materials or services.

(7)   The quality, availability and adaptability of the supplies, equipment, or contractual services
      to the particular use required.

(8)   The ability of the bidder to provide future maintenance and service for the use of the subject of
      the contract.

(9)    The number and scope of conditions attached to the bid.
(Ord. No. 2000-32, § 1, 5-9-00)




                                        Section 15 – Page 6
Sec. 2-245. Award to other than lowest responsible bidder.
When the award is not given to the lowest responsible bidder, a statement of the reason for placing
the order elsewhere shall be prepared and made a part of the record when bids are taken by formal
method. (Ord. No. 2000-32, § 1, 5-9-00)

Sec. 2-246. Tie bids.
Whenever identical bids are received, preference shall be given to the bid certifying a drug-free
workplace has been implemented. If two (2) or more, or none, of the equal responses are
received certifying that a drug-free workplace has been implemented, the contract shall be
awarded to a local responsible bidder. Local bidder is defined to be a bidder whose business
office is located within the incorporated limits of the city. If there are no local bidders, then the
contract shall be awarded to a bidder whose business office is located within the County. Should
all or none of the bidders meet the preferences stated above, the purchasing manager shall
award the contract to one of the bidders by drawing lots in public. (Ord. No. 2000-32, § 1, 5-9-
00)

Sec. 2-247. Negotiations.
When only one bid is received under competitive bidding, negotiation is permitted in order to obtain
a fair and reasonable price, or if the low responsive bid is considered by the purchasing manager to
be high, he shall have the authority to negotiate a lower price with the lowest responsible bidder.

The purchasing manager may negotiate for used equipment when deemed to be in the best
interest of the city. (Ord. No. 2000-32, § 1, 5-9-00)

Sec. 2-248. Emergency purchases.
Notwithstanding any other provisions of this article, the city manager may make or authorize the
purchasing manager or others to make emergency procurement of supplies or services when there
exists a threat to public health, safety, or welfare; provided that such emergency procurement
shall be made with such competition as is practicable under the circumstances. A written
determination of the basis for the emergency and for the selection of the particular contractor shall
be submitted to the purchasing manager by the using agency and shall be included as part of the
contract and filed with the city manager.
(Ord. No. 2000-32, § 1, 5-9-00)

Sec. 2-249. Appeals and remedies.

(a)    Right to protest. Any actual or prospective bidder or proposer who is aggrieved in connection
       with a solicitation or award of a bid or contract may protest to the purchasing manager in
       accordance with established procedures detailed in the purchasing manual.

(b)    Remedy. The purchasing manager is authorized to settle any protest regarding the
       solicitation or award of a city contract any claim arising out of the performance of a city
       contract, prior to an appeal to the city manager or city council, or the commencement of an
       action in a court of competent jurisdiction.

(c)    Stay of procurement. In the event of a timely protest properly filed, the purchasing man-
       ager shall not proceed further with the solicitation or award of the contract until all
       administrative remedies have been exhausted or until the city manager or city council,
       as appropriate, makes a determination on the record that the award of a contract without
       delay is necessary to protect substantial interests of the city.
(Ord. No. 2000-32, § 1, 5-9-00)



                                       Section 15 – Page 7
Sec. 2-249.1. Local vendor preference policy.

(a)   Definitions.

      (1)    Local business means the vendor is either a local-city or local county business.

      (2)    Local-city business means the vendor has:

             (a)     A valid business tax receipt issued by the City of Melbourne at least one
                     year prior to the solicitation of a formal quote/bid for which the business
                     may seek local vendor preference, and
             (b)     A physical business address located within the city, in an area zoned for
                     the conduct of such business, from which the vendor is operating or
                     performing its business, and at which it maintains full-time
                     employees.

      (2)    Local-county business means the vendor has:

             (a)     A valid business tax receipt, issued by Brevard County, at least one (1)
                     year prior to the solicitation of a formal quote/bid for which the business
                     may seek local vendor preference, and
             (b)     A physical business address located within Brevard County from which the
                     vendor is operating or performing its business, and at which it maintains
                     full-time employees.

      (3)    Non-local business means any vendor that does not meet either the definition
             of local-city business or local-county business as defined in this section.

      (4)    Formal quote means a solicitation of supplies and/or services between seven
             thousand five hundred dollars and one cent ($7,500.01) and twenty-five thousand
             dollars ($25,000.00), processed by the purchasing division.

      (5)    Formal bid means a solicitation (Invitation to Bid (ITB)) of supplies and/or services
             in excess of twenty-five thousand dollars ($25,000.00).

(b)    Establishment as local business. To establish that a vendor is a local business, a vendor
       shall provide written documentation of compliance with the definitions for each such local
       business as defined in subsection (a) herein, at the time of submitting a formal quote/bid.
       Post office boxes are not verifiable and shall not be used for the purpose of establishing
       the required physical business address. A vendor that misrepresents the local preference
       status of its firm in a formal quote/bid submitted to the city shall lose the privilege to claim
       local preference status for a period of two (2) years.

(c)    Local preference in purchasing and contracting. The City of Melbourne shall give
       award preference to a local business in the purchase of commodities, personal property,
       general services, professional services, and the purchase of or contract for construction
       or renovation of public works or other public improvements by means of formal
       quote or competitive bid in the following manner:

       (1)   Competitive quote/bid. Each formal competitive quote/bid solicitation
             shall clearly identify how the price order of the quotes/bids received will be
             evaluated and determined.

                                       Section 15 – Page 8
(2)   Local award. If the initial lowest quote/bid is submitted by a qualified and
      responsive local business, there is no further local preference given.

(3)   Local-city preference. Under a competitive quote/bid solicitation, when a qualified
      responsive, responsible non-local business submits the lowest price quote/bid,
      and a quote/bid submitted by one or more responsive, responsible local-city
      businesses is within five percent (5%) of the price submitted by the non-local
      business, then each of the responsive, responsible local businesses within five
      percent (5%) shall have the opportunity to submit an offer to match the price
      submitted by the non-local bidder. A price match document must be received
      within five (5) business days after issuance.

      If the initial lowest local-city business submits an offer that matches the lowest
      non-local quote/bid, and the two vendors are similarly qualified and responsive
      bidders, then the award shall be made to the local-city business.

      If the initial lowest local-city business declines or is unable to match the lowest
      non-local quote/bid, then the option to do so moves to the next initial lowest local-
      city business, and so on, that is a similarly qualified and responsive bidder.

(4)   Local-county preference. At such time that there is no local-city business within
      five percent (5%) of the lowest bid, or all eligible local-city bidders decline the
      option to match the lowest quote/bid, then the offer to match the lowest non-local
      bid shall go to each of the similarly qualified and responsive local-county
      businesses whose submitted bid is within two percent (2%) of the lowest bid. A
      price match document must be received within five (5) business days after
      issuance.

      If the initial lowest local-county business submits an offer that matches the lowest
      non-local quote/bid, and the two vendors are similarly qualified and responsive
      bidders, then the award shall be made to the local-county business.

      If the initial lowest local-county business declines or is unable to match the lowest
      non-local quote/bid, then the option to do so moves to the next initial lowest local-
      county business, and so on, that is a similarly qualified and responsive bidder.

(5)   No local award. Should none of the local bidders be willing to price match the
      lowest non-local quote/bid, then the lowest non-local bid shall be awarded the
      purchase or contract.

(6)   Unit pricing. If a local business accepts the opportunity to match the lowest non-
      local quote/bid, and that quote/bid is based on unit pricing and estimated
      quantities, then the unit prices for each or all quote/bid items must be matched
      against the non-local quote/bid pricing, in accordance with the quote/bid
      solicitation requirement.

7.    Tie quotes/bids. In the event of a tie between the initial quote/bid of two (2)
      or more local businesses, the local business with the greatest number of
      full-time employees working in the City of Melbourne or Brevard County
      respectively shall be awarded the purchase or contract.




                              Section 15 – Page 9
(d)   Exception to local vendor preference policy. The local preference policy set forth herein
      shall not apply to any of the following purchases or contracts:

      (1)    Goods or services provided under a cooperative purchasing agreement or
             piggyback agreement; or

      (2)    Purchases or contracts which are funded, in whole or part, by a
             governmental entity and the laws, regulations, or policies governing such funding
             prohibit application of that preference; or

      (3)    Purchases made or contracts approved under emergency or noncompetitive
             situations, or for litigation related legal services, as described in the city's
             purchasing policies.

      (4)    Purchases or contracts with an estimated cost of $7,500.00 or less.

      (5)    Purchases or contracts where the difference between the amount of the low
             quote/bid submitted by a qualified and responsive non-local business and the
             lowest quote/bid submitted by a qualified and responsive local business is
             greater than twenty five thousand dollars ($25,000.00).

      (6)    Where all bids are rejected.

(e)   Waiver of the application for local vendor preference policy. Any request for the waiver of
      local preference to any particular purchase or contract must be approved by either the
      city manager or the city council, depending upon approval threshold, prior to
      advertising the quote/bid. The city manager or city council, as the respective awarding
      authority, may approve the waiver of local preference upon review and at their
      discretion.

(f)   Comparison and review of qualifications. The preferences established herein in no
      way prohibit the right of the City of Melbourne to compare and review the quality of
      materials proposed for purchase, and to compare and review the qualifications,
      character, responsibility, and fitness of all persons, firms or corporations submitting
      quotes/bids. Furthermore, the local preference established herein shall not prohibit the
      city from giving any other preference permitted by law in addition to the local preference
      contained herein.

(g)   Administration of local preference policy. This policy shall apply to a ll
      departments under the purview of the city council. The engineering department shall
      be responsible for the administration of the local preference policy for bids involving
      public works or public construction and improvements. The purchasing division of the
      financial services department shall be responsible for administration of the local
      preference policy for all other quotes/bids.
      (Ord. No. 2011-15, § 1, 5-10-11)

Sec. 2-250. Disposition of property.

(a)   Reports. All using agencies shall submit to the purchasing manager, at such times and
      in such forms as prescribed, reports showing stocks of all supplies, material, and
      equipment which are no longer used, or which have become obsolete, worn out, or
      scrapped.


                                    Section 15 – Page 10
(b)     Transfer. The purchasing manager, subject to approval of the city manager, shall have the
        authority to transfer surplus stock to other using agencies.

(c)     Sale. The purchasing manager shall have the authority to sell all surplus supplies which
        have become unsuitable for public use, or to exchange the same for or trade in the same
        on new supplies. (Ord. No. 2000-32, § 1,5-9-00)




Note:   This section is copied verbatim from the City of Melbourne Code. The use of capitalization is not
        consistent with other sections in the Purchasing Manual.




                                        Section 15 – Page 11
              Section 16                                                  Purchasing Manual             302
                                                                          Issue Date    Amendment       Appr
              Glossary                                                    4/28/2009                     JMS

This glossary lists terms often used in contracting; it is not intended to apply to the entire field of public
procurement. Additional terms can be found in the publications listed at the end of the Subject Index, and
other sources.

Acceptance – The assumption of a legal obligation by a party to a contract and the terms and
conditions of that contract.

Acknowledgement – A form used by a vendor to advise a purchaser that an order has been
received, and usually implies acceptance.

Addendum – A change, addition, alteration, correction, or revision to a bid document.

Advertising – A form of public notice of an intended purchase. See “Public Notice.”

Agreement – A duly executed and legally binding contract.

Alternate Bid – A bid submitted in knowing variance from the specifications, terms,
condition, or provisions of the solicitation. The City reserves the right to determine acceptance
of proposed equivalent or equal items.

Amendment – A revision or change to a document, often used to correct a contract or to add
additional scope of work to change an existing contact.

Appropriation – A legislative authorization to expend public funds for a specific purpose.
Money set apart for specific use.

As Is – Term indicating that goods offered for sale are without warranty or guarantee and that
the purchaser takes the goods at his own risk without recourse against the seller for the condition
or performance of the goods.

Assignment – The legal transfer of a claim, right, interest, or property.

Assignee – The grantee, or recipient, of an assignment.

Assignor – A person who makes an assignment.

Award – Purchasing Manager, City Manager, or City Council’s approval of a bid or a proposal.

Best and Final Offer – The rationale granting a purchasing official discretion in taking action to
allow all qualified bidders participating in a competitive bid process to provide a sealed best and
final offer.

Best Interest of the City – The rationale granting a purchasing official discretion in taking action
most advantageous to the City when it is impossible to interpret adequately a specific response
by law or regulation.

Bid – A competitive price offer made by an intended seller, normally by written notice, offered
as a result of a formal invitation to prospective vendors.




                                           Section 16 – Page 1
Bid Acceptance – The unconditional receipt of the bid at the designated bid location within the
time frame and conditions set in the bid document. Any alterations to the bidder’s offer after the
close of the bid or any deviations from the conditions set in the bid document may result in the
rejection and removal of the bid.

Bid Bond – An insurance agreement in which a third party agrees to be liable to pay a certain
amount of money in the event that a selected bidder fails to accept the contract as bid.

Bid Deposit – Certified check, cashier’s check, bank money order, bank draft of any national or
State bank, surety bond or cash deposited with and as instructed by the prospective purchaser to
guarantee the bidder will, if selected, accept the contract in accordance with the bid. If the
bidder does not accept the contract, he forfeits the amount of deposit.

Bid Evaluation – The approach for selection of the bid award, which shall be based on the
requirements set forth in the bid documents. The evaluation may include criteria to determine
acceptability such as inspections, testing, quality, workmanship, delivery and suitability for a
particular purpose and to existing systems and equipment. It may also be based on total and life
cycle costs as well as freight, set-up, or installation charges.

Bid Opening – The process of opening and reading bids conducted at the time and place
specified in the Invitation for Bid, and/or advertisement, and in the presence of all who wish to
attend.

Bid Sample – A sample required of a bidder for examination, comparison, testing, and
evaluation by the perspective purchaser.

Bid Security – Any form of guarantee submitted with a bid to ensure that the bidder will enter
into a contract if awarded. Synonymous with Bid Bond and Bid Deposit.

Bidder – Any person submitting a competitive bid in response to a solicitation.

Bidders List – A vendors list maintained by data management software setting out the
names and addresses of suppliers from whom bids, proposals and quotations can be solicited.

Blanket Order – A type of purchase order under which a purchaser contracts with a vendor to
provide the purchaser’s requirements for an item(s) or service on an as-required and over-the-
counter basis. Properly prepared, such an arrangement sets a limit on the period of time it is
valid and the maximum amount of money that can be spent at one time or within a specified
period of time.

Boilerplate – Colloquial designation for standard terms and conditions, usually preprinted,
incorporated in all Invitation for Bids, Request for Proposals or a contract or purchase order.

Brand Name – A product name that serves to identify a product of a particular manufacturer, a
trade name.

Brand Name Specification – A specification that cites the brand name, model number or
some other designation that identifies a specific product to be offered exclusive of others.

Brand Name or Equal Specification – A specification that cites brand names, model numbers,
or other identifications as representing quality and performance called for, and inviting bids on
comparable items or products of any manufacturer.




                                      Section 16 – Page 2
Breach of Contract – A failure without legal excuse, to perform any promise that forms a whole
or part of a contract.

Breach of Warranty – An infraction of an expressed or implied agreement as to the title,
quality, content, or condition of a product sold.

Bulk Purchasing – Purchasing in large quantities to seek a lower price per unit i.e., volume
purchasing.

Buyer – A purchaser who buys goods or services from a vendor in a transaction.

Calendar Day – Every day shown on the calendar, Saturdays, Sundays, and holidays included.

Cash Discount – A discount from a bill if payment is made within a designated period.

Caveat Emptor – “Let the buyer beware.” A maxim stating the buyer should be careful in
making a purchase because the burden of defective goods rests with him. In contracts, the
seller can be held responsible for certain defects by means of suitable specifications, warranties
and contractual terms and conditions.

Centralization of Purchasing – A system of purchasing in which authority, responsibility, and
control of activities is concentrated in one administrative unit. (See Decentralized Purchasing)

Certificate of Non-collusion – A statement signed by a bidder and submitted with his bid
affirming that his bid is made freely, independently and without consultation with any other
bidder.

Change Order – A written order that affects a change to the original contract or purchase order
related to increase or decrease in quantities or additional materials.

Code of Ethics – The rules or standards governing the conduct of the members of a
profession. (See Exhibit 1)

Collusion – A secret agreement or cooperation between two or more persons to accomplish a
fraudulent, deceitful or unlawful purpose.

Collusive Bidding – The response to bid invitations by two or more vendors who have secretly
agreed to circumvent laws and rules regarding independent and competitive bidding.

Commodity – An article of trade, a movable article of value, something that is bought or
sold; any movable or tangible thing that is produced or used as the subject of barter or sale.

Commodity Code – A system of words and numbers designed to identify and list commodities
or services by classes and sub-classes.

Compensation - The amount paid by the agency for goods or services regardless of whether stated
as compensation or stated as hourly rates, overhead rates, or other figures or formulas
from which compensation can be calculated.

Competition – The process by which two or more vendors vie to secure the business of a
purchaser by offering the most favorable terms as to price, quality, delivery and /or service.

Competitive Bidding – The submission of prices by individuals or firms competing for a
contract, privilege, or right to supply merchandise or services.

                                      Section 16 – Page 3
Competitive Sealed Bid - A bid submitted in a sealed envelope to prevent disclosure of its
contents before the deadline for the receipt of all bids.
Competitive Sealed Proposal – A proposal submitted in a sealed envelope to prevent
disclosure of its contents before the deadline for the receipt of proposals.

Competitive Solicitation or Solicitation - An Invitation to bid (ITB), a Request for Proposals
(RFP), or an Invitation to Negotiate (ITN).

Conflict of Interest – A situation where the personal interests of a contractor, public official or
classified employee are, or appear to be, at odds with the best interests of the jurisdiction.

Consultants Competitive Negotiation Act (CCNA) – A procedure established by Florida
Statutes setting the requirements for acquisition of professional architectural, engineering,
landscaping architectural or land surveying services.

Consultants Continuing Contract - A contract for professional services entered into in
accordance with all the procedures of the CCNA whereby the firm provides professional services
for projects in which construction costs do not exceed $1 million, for study activity when the fee
for such professional service does not exceed $50,000, or for work of a specified nature as
outlined in the contract, with no time limitation except that the contract must provide a termination
clause. Firms providing professional services under continuing contracts shall not be required to
bid against one another.

Continuing Contract - A contract for services or materials entered into in accordance with all
the City’s bid procedures whereby the firm provides goods & services for projects or work of a
specified nature as outlined in the bid and contract. The contract must provide a termination
clause.

Contract – Contractual instrument, including, but not limited to contracts, leases, interlocal
agreements, grants, sales agreements, service agreements, joint participation agreements,
maintenance agreements, attachments, change orders, addendum, bonds, fee schedules, and
any other related documents for incorporation into the contractual agreement.

Contract Administration – The management of all actions that must be taken to assure
compliance with the terms of the contract after the award of the contract.

Contract Execution – The act of overseeing the signing of a legally binding document that shall
include signatures of the Contractor, City Manager or Mayor, City Attorney and City Clerk with
appropriate notaries and seals. The City Clerk’s office shall be responsible for the proper
execution of formal contracts to include distribution of signed contracts and maintenance of the
official record.

Contractor - A person who contracts to sell commodities or contractual services.

Contractual Service - The rendering by a contractor of its time and effort rather than the
furnishing of specific commodities. The term applies only to those services rendered by individuals
and firms who are independent contractors and such services may include, but are not limited to,
evaluations; consultations; maintenance; accounting; security; management systems;
management consulting; educational training programs; research and development studies or
reports on the findings of consultants engaged there under; and professional, technical, and
social services.




                                        Section 16 – Page 4
Contractual Services Contract – Basic services provided to the City under contract or
Purchase Order in which charges, effective periods, and extent of work are defined. Examples of
contractual services are janitorial services, maintenance services, mechanical services and
construction services.

Davis-Bacon Act (1931) – A Federal law requiring all contractors performing federally funded
Public Works construction projects to pay their workers, at a minimum, the prevailing wage rate
paid in the area for similar work, as set by the Secretary of Labor.

Debarment – The exclusion of a person or company from participating in a procurement activity
for an extended period of time, as specified by law, because of previous illegal or irresponsible
action.

Decentralized Purchasing – A system of purchasing in which there is a (varying) degree of
delegation of authority, responsibility, and control of purchasing activities to the using agencies.

Default – Failure by either party to a contract with material requirements of the contract.

Delivery Schedule – A required or agreed upon time, or rate, for delivery of goods or services.

Discount – Vendor’s deduction from the selling price, usually contingent upon some cost
reducing condition such as prompt payment.

Disposal – The act of surrendering ownership of excess or surplus property.

Dispute – Disagreement between parties to a contract over performance or other contract term
requiring administrative action to resolve.

Escalator Clause – A clause that allows the contract price to be periodically adjusted up or
down in direct relationship to an objective market indicator identified in the solicitation and
contract (e.g., Consumer Price Index).

Emergency Purchase – A purchase made without following the normal purchasing procedures
in order to obtain goods or services quickly to meet an urgent and unexpected requirement
where health and public safety or the conservation of public resources is at risk. The City Manager
shall have the authority to make emergency purchases of no more than the current formal bid
threshold without competitive bids, provided that all such purchases shall be reported to the City
Council at its next regularly scheduled meeting.

Equal, or Equivalent – A phrase used to indicate the acceptability of a product of similar or
superior function, purpose, design, and/or performance. (See Brand Name)

Evaluation Criteria – Factors, usually weighted, relating to management capability, technical
capability, and manner of meeting performance requirements, price and other important
considerations used to evaluate which proposer in a competitive negotiation has made the most
advantageous offer.

Expedite – Effort to assure delivery of goods purchased in accordance with a time
schedule, or to accelerate delivery.

Extension - An increase in the time allowed for the contract period due to circumstances which,
without fault of either party, make performance impracticable or impossible, or which prevent
a new contract from being executed, with or without a proportional increase in the total dollar
amount, with any increase to be based on the method and rate previously established in the

                                       Section 16 – Page 5
contract. A contract may not be extended past the original term of the proposed contract for new or
additional scopes of work that were not advertised in the original solicitation.

Fee – A fixed or variable amount of money to be paid to a contractor as profit, as in a cost
plus fixed fee contract; compensation for services rendered.

Fiscal Year – A period of twelve consecutive months selected as a basis for annual financial
reporting, planning or budgeting. The fiscal year for the City of Melbourne is October 1st through
September 30.

Fixed Asset – An asset of a long-term character having a useful life of more than one year and a
value of at least $1,000, stands alone and functions by itself.

Fixed Price Contract – A contract that provides for a firm price, subject to any contractual
conditions allowing price adjustment, under which the contractor bears the full responsibility for
profit or loss.

Formal Advertising – The placement of a notice in a newspaper of general circulation according
to legal requirements to inform the public that the City is requesting bids on a specific purchase it
intends to make.

Free on Board (FOB) – Determines the point at which title for the shipment passes from
vendor to purchaser. (See Exhibit 4a and 4b)

FOB Destination – The title changes from vendor to purchaser when the shipment
reaches its destination.

Functional Specifications – A type or manner of writing a purchase description characterized
by what results are required rather than a generic description of the product or service.

General Terms and Conditions - The section of a solicitation that contains clauses that deal with
the contractual obligations of the parties to a contract; a part of the boilerplate of a bid or contract
document.

Guarantee – An assurance for the fulfillment of a condition, quality of, or the length of use to be
expected from a product offered for sale.

GSA (General Service Administration) - Pursuant to Section 211 of the e-Gov Act of 2002,
Cooperative Purchasing provides authorized State and local government entities access to
information technology items offered through GSA's Schedule 70 (IT) and the Consolidated Products
and Services Schedule contracts for associated special item numbers 1120 program (Law
enforcement & drug).

Hold Harmless Clause – Contractual clause requiring the contractor to assume sole liability in any
actions brought against the contract and absolving the jurisdiction from any responsibility.

Identical Bid – A bid that is the same in all salient respects with another bid. Identical Tie Bids,
in accordance with Section 287.087, Florida Statutes, and preference shall be given to
businesses with drug-free workplace programs. Whenever two or more bids which are equal
with respect to price, quality, and service, are received by the City for the procurement of
commodities or contractual services, the bid received from a business that certifies that it has
implemented a drug free workplace program, shall be given preference in the award process.




                                         Section 16 – Page 6
Ineligible Bidder – A bidder who does not meet the stated qualifications for submitting a bid
response or who has been suspended or debarred.

Informal Bid – A competitive bid or price quotation for supplies or services that is conveyed by
letter, telephone, or other means and does not require a sealed bid, public opening, or public
reading of bids.

Informalities and Irregularities – Minor defects or variations of a bid from the exact
requirements of the solicitation that do not affect the price, quality, quantity, or delivery schedule
of the goods or services being procured.

Instructions to Bidders – The section of a solicitation that contains clauses that provide
primarily information on bid opening, general qualifications, and conditions for bid submission.

Inventory – Goods in stock or an itemized list of the goods on hand at a particular time showing
quantity, volume and values.

Indemnify – To protect against hurt or loss, to exempt from incurred penalties or
liabilities. To compensate or pay for damage.

Invitation to Bid (ITB) – All documents, whether attached or incorporated by reference, used to
solicit competitive or multistep sealed bids.

Invitation to Negotiate - A written solicitation for competitive sealed replies to select one or more
vendors with which to commence negotiations for the procurement of commodities or contractual
services. The invitation to negotiate is used when the City determines that negotiations may be
necessary to receive the best value. A written solicitation includes a solicitation that is
electronically posted.

Invoice – Seller’s itemized bill stating prices and quantities of goods and/or services delivered,
and sent to Accounts Payable for payment.

Late Bid or Offer – A bid or offer received at the place specified in the solicitation after
the time designated for all bids or proposals to be received.

Lead Time – The period of time from date of ordering to date of delivery. This includes the time
required for the vendor to manufacture or prepare the goods for shipment, and may include the
time needed by the procurement function to process the purchase request, issue a
solicitation, evaluate bids and award a contract.

Lease – A contract conveying from one person to another real estate or property for a term in
return for a specified rent or other compensation.

Lease Purchase Agreement – A lease contract containing a purchase option in which the lessee’s
periodic payments or parts thereof may be applied to serve both as the rental obligation and as
installments for acquiring ownership of the property upon lessee exercising the purchase
option; a conditional sales contract.

Legal Notice – Notice of a proposed purchase as required by law.

Line Item – A procurement item specified in an Invitation to Bid, for which the bidder is asked
to tender an individual price and which, under the terms of the invitation, is usually susceptible to a
separate contract award.


                                        Section 16 – Page 7
List Price – The price published in a catalogue or otherwise available at which a seller offers an
item for sale.

Lowest Responsible Bidder – A responsive bidder whose bid is lower than those received from
other bidders and whose reputation, past performance, and business and financial capabilities
have been determined by the City to satisfy the requirements of the a bid.

Liquidated Damages – An amount of money, designated in the solicitation and as part of a
contract, to be calculated on a per diem or other basis and paid upon default of a contract.

Lump Sum – The total price of a group of items that are put together and priced as a whole,
aggregate. A price not based on unit cost or quantities.

Mandatory – Obligatory; said of a contract condition or provision that cannot be waived.

Material Safety Data Sheets (MSDS) – Documentation concerning a hazardous chemical.
They identify the chemical, the common names of the ingredients, the physical and chemical
characteristics, and the hazards of the chemical. They also include emergency and first aid
procedures to be considered when working with that chemical.

Multiple Award – The award of contracts to two or more vendors or contractors to furnish the
same or similar supplies or services, where more than one vendor is needed to meet the
contract requirements for quality, delivery, or service.

Multi-step Bidding – A source selection method involving at least two competitive steps,
combining the elements of both competitive sealed bids and competitive sealed proposals. The
first step requires the submission of (unpriced) technical proposals. In the second step,
bidders with acceptable technical proposals are asked to submit sealed bid prices.

Negligence – Under a given set of circumstances, failing to do what a reasonable and prudent
person would do or doing what a reasonable and prudent person would not do.

Negotiate - To conduct legitimate, arms length discussions and conferences to reach an
agreement on a term or price. Negotiation provides contracting through the use of proposals
and discussions to obtain best and final offers that result in the best value to the City.

Net Price – Price after all discounts, rebates, etc., have been allowed.

No Bid – A response to an Invitation for Bid stating that the respondent does not wish to submit
a bid.

Non-responsive Bid – A bid that does not conform to the mandatory or essential
requirements of the Invitation for Bid.

Notice of Award – A written notification from the jurisdiction to the successful bidder, stating that
there is an award of a contract in accordance with a bid or proposal previously submitted.
Electronic notice by fax or internet is considered written notification.

Offer – To submit a response (an offer) to a Request for Proposal.

Offeror – A person making an offer.

Option to Renew – A contract clause that allows a party to reinstate the contract for an
additional term, in accordance with contract terms.

                                        Section 16 – Page 8
Order (Purchase) – A request or command issued to a supplier for goods or services at a
specified price or agreed basis for payment.

Partial Payments – The payment authorized in a contract upon delivery of one or more
complete units called for under the contract, or upon completion of one or more distinct items
of service called for there under.

Payment Bond – A bond which assures payments, as required by law, to all persons
supplying labor or material for the completion of work under the contract. Also called labor and
materials bond.

Performance Bond – A contract of guaranty executed subsequent to award by a successful
bidder to protect the City from loss due to contractor’s inability to complete the contract as
agreed.

Performance Record – A record to indicate a supplier’s ability to keep delivery promises and
reliability, together with consistency of quality of the products.

Performance Specification – A specification describing the performance characteristics
sought in a product or service, a purchase description accenting performance over design, a
functional rather than a generic or physical specification.

Piggyback Method – A form of intergovernmental cooperative purchasing in which an entity
requests competitive sealed bids, enters into a contract, and arranges, as part of the contract,
for other public purchasing units to purchase from the selected vendor under the same terms
and conditions as itself.

Pre-Bid (or Pre-Proposal) Conference – A meeting that is scheduled in a solicitation for the
purpose of providing clarification as needed. Substantive questions raised at a pre-bid
conference are answered in writing and may modify the solicitation.

Pre-Performance Conference – A meeting between the contractor and the City convened to
review the responsibilities and expectations of the contractor and the City under the contract.

Prequalification of Bidders – The screening of potential vendors in which such factors as
financial capability, reputation, and management are considered in order to develop a list of
qualified vendors.

Pre-Solicitation Conference – An informal meeting inviting comments and suggestions from
selected vendors on the draft of a proposed solicitation. Used for technical and complex service
transactions.

Price – The amount of money that will purchase a definite quantity, weight, or other
measure of a commodity or service.

Price Adjustment Clause – A condition in a solicitation and resultant contract that allows the
price under the contract to decrease or increase under defined conditions; the condition
should provide for the purchaser to cancel any individual item affected, or the contract, if a
request for increase is not acceptable.

Privatization – The divestiture of a government program including control and management as
well as real and personal property to private entrepreneurs.


                                      Section 16 – Page 9
Procurement – The procedures for obtaining goods or services, including all activities from the
planning steps and preparation and processing of a requisition, through receipt and acceptance of
delivery and processing of a final invoice for payment. The acts of preparing specifications,
evaluating bids or proposals, making awards and administering contracts are involved; in
some contexts, property management is implied.

Professional Services – Services rendered by members of a recognized profession or
possessing a special skill. Such services are generally acquired to obtain information, advice,
training, or direct assistance.

Professional Services as per CCNA – Services within the scope of the practice of
architecture, professional engineering, landscape architecture, or registered surveying and
mapping, as defined by the laws of the State, or those performed by any architect,
professional engineer, landscape architect, or registered surveyor and mapped in connection
with his or her professional employment or practice.

Proper invoice - An invoice which conforms to all contract and bid requirements that has been
specified by the City.

Proposal – An offer made by one party to another as a basis for negotiations for entering into a
contract.

Protest – A written objective to a solicitation by a prospective bidder, a bidder, a contractor
or other interested party with the intention of achieving a remedial result.

Public Notice – The distribution or dissemination of information to interested parties using
methods that are reasonably available. Such methods include publication in newspapers of
general circulation, electronic or paper mailing lists, and web site(s) designated and maintained
for that purpose.

Public Record – Information contained in City files that is available for public inspection

Purchase Description – The words used in a solicitation to describe the supplies, services or
construction to be purchased, including any performance, physical or technical requirements. Unless
the context requires otherwise, the terms “purchase description,” “purchase specification,” and
“specification” may be used interchangeably.

Purchase Order – A purchaser’s written document to a supplier formally stating all terms and
conditions of a proposed transaction. A PO commits the City financially, by encumbering funds.

Purchasing Manual – A document that describes the rules and procedures to be followed by
the using agencies.

Purchasing Policy – A course of action adopted in purchasing affairs.

Purchasing Procedure – A mode of conducting purchasing activities.

Quotation – A statement of price, terms of sale, and description of goods or services offered
by a prospective seller to a prospective purchaser, usually for purchases below the amount
requiring formal bidding. May be non-binding if solicited to obtain market information for planning
purposes.

Renewal - Contracting with the same contractor for an additional contract period after the initial
contract period, only if pursuant to contract terms specifically providing for such renewal.

                                       Section 16 – Page 10
Request for Information (RFI) - The document used to obtain comments or reactions from vendors
that precedes the issuing of a solicitation. Price is not requested.

Request for Proposal (RFP) – The document used to solicit proposals from vendors. The RFP
usually provides for evaluation of criteria, including price, prior to award.

Request for Qualifications (RFQ) – The document used to obtain statements of qualifications
from bidders prior to issuing the final solicitation.

Requisition – An internal document completed by the using department listing details of
materials and services needed.

Responsible Bidder or Proposer (Offeror) – A person who has the capability in all respects
to perform in full the contract requirements, along with the integrity and reliability that will assure
good faith performance.

Responsive Bidder or Proposer (Offeror) – (1) A person who has submitted a bid which
conforms in all material respects to the Invitation to Bid. (2) One whose bid conforms in all
material respects to the terms, conditions, specifications and other requirements of the Invitation
to Bid.

Sealed Bid – A bid that has been submitted in a sealed envelope to prevent its contents being
revealed or known before the deadline for the submission of all bids.

Service – The furnishing of labor, time, or effort by a contractor.

Service Contract – A contract that calls for a contractor’s labor, time, and effort to perform a
service in which the provision of goods is incidental to the main purpose.

Site Inspection – The requirement in a solicitation that the potential bidders or offerors visit the
physical location where the contract is to be performed to become familiar with site conditions.

Sole Source Procurement – An award for a commodity or service to the only known capable
supplier, occasioned by the unique nature of the requirement, the supplier, or market conditions.

Solicitation – A request for bids to provide supplies, services or construction.

Specification – A description of what the purchaser seeks to buy, and consequently, what a bidder
must be responsive to in order to be considered for award of a contract. A specification may be a
description of the physical or functional characteristics, or the nature of a supply or service. It
may include a description of any requirements for inspecting, testing, or preparing a supply or
service item for delivery. A purchase description.

Standard – A characteristic or set of characteristics for an item that, for reasons of performance
level, compatibility or interchangeability with other products, etc., is generally accepted by
producers and by users of the item as a required characteristic of all items for the designed
purpose.

Subcontractor – Any person undertaking part of the work of a contract under the control of
the principal contractor.

Surplus Property – Inventory not needed by the owning agency or by other agencies at the
present time or in the foreseeable future.

                                        Section 16 – Page 11
Tabulation of Bids – A recording of bidders and abstract of their bids listing items offered,
prices, deliveries, etc., in response to a specific solicitation, made for purposes of comparison
and record-keeping will be true.

Term Contracting – A technique by which a source of supply is established for a specific period
of time.

Termination for Convenience – Cancellation, at the City’s discretion, of a contract in whole or
in part; permitted only if the contract contains a clause permitting such an action.

Termination for Default – The cancellation, in whole or in part; by the City of a contract
because of the contractor’s failure to perform satisfactorily.

Vendor – Any individual, firm, corporation, etc., offering for sale, trade, exchange or otherwise
supply items, goods, or services to the City in exchange for compensation.

Waiver of Bid(s) – A process authorized by law or rule whereby a government purchasing office
may procure items without competitive bidding procedures because of unique circumstances
related to a particular need or procurement.

Waiver of Mistake or Informality – The act of disregarding errors or technical nonconformities
in bids which do not change the substance of the bid and will not adversely affect the competition
between bidders.

Warranty – A representation either expressed or implied that a certain fact regarding the
subject matter of a contract is presently true or will be true.




                                      Section 16 – Page 12
                                                           Purchasing Manual             302
                                                           Issue Date    Revision/Date   Appd
             Exhibits                                      4/28/2009    D    5/11/2011   JMS




Exhibit 1    FAPPO Code of Ethics

Exhibit 2    Purchase Authorization, Processing, and Award/Approval Matrix
             Download from Employee Website – Forms and Memos – Purchasing – pdf

Exhibit 3    Purchasing Cycle
             Download from Employee Website – Forms and Memos – Purchasing – pdf

Exhibit 4a   Freight/Shipping and Handling Issues

Exhibit 4b   FOB Terms of Sale

Exhibit 5    Purchase Order Types

Exhibit 6    Selection of Insurance Requirements

Exhibit 7    Local Preference Process
Code of Ethics
1.    Members regard public service as a trust and support the professional principles of
      public purchasing.

2.    Members believe in the dignity of their office, the importance of the purchasing
      profession to their public agencies, and give first consideration and loyalty to their
      respective agencies.

3.    Members are always guided in their actions by integrity and honor to merit the respect and
      inspire the confidence of the agency and the public which they serve.

4.    Members accept full responsibility and accountability for their actions related to the purchase
      and supply functions.

5.    Members believe that character is the greatest asset in their profession and, therefore, will not
      accept gifts or other things of value from vendors, where the intent is to influence the
      purchaser. Members shall comply with all current laws and statutes pertaining to
      acceptance of gifts and gratuities.

6.    Members keep their agency fully informed of purchasing issues and progress toward
      resolving such issues through appropriate channels by emphasizing the facts without
      personal aggrandizement (exaggeration or enlargement).

7.    Members do not allow political considerations or other conflicting outside influences to enter
      their relationships with vendors or with employees. Personnel administration is based
      upon a merit basis without regard to political, religious, gender, or racial considerations.

8.    Members shall not engage in unscrupulous pract ices and misrepresentations;
      recognizing that mutually profitable business relations are based upon honesty and fair
      dealings.

9.    Members will be courteous, considerate, prompt, and businesslike with those whom they
      deal, including their employers, employees, vendors, the media, and the public.

10.   Members subscribe to and support the Mission, Vision, Core Values, and Strategic
      Priorities of the Association.

11.   Members shall endeavor to increase their knowledge of the profession through
      education, organizational memberships, and participation with professional associations
      where possible.

12.   Members shall strive to continually increase competition in vendor selection and shall
      endeavor to prevent any collusive activities among vendors.



                                              Exhibit 1
                             FREIGHT/SHIPPING AND HANDLING ISSUES

Transportation of a product to the required delivery site is an additional expense to be
considered. When obtaining quotes, using departments should request the price be quoted
including delivery (preferred), or delivery costs should be quoted as a separate line item.

Free on Board (FOB) is a transportation term that indicates that the price for goods includes
delivery at the seller’s expense to a specified point and no further. The FOB term is used with
an identified physical location to determine: (1) the responsibility and basis for payment of
freight charges, and (2) the point at which title for the shipment passes from seller to buyer
(City).

The FOB location terms, Origin and Destination are the most common.

FOB Shipping Point (Origin)
Title/ownership passes to the buyer (the City) when the goods leave the seller's dock and the City
pays all transportation costs. If anything happens to the goods in transit, the City must still pay the
seller and must file claims and settle with the transportation company for damages. If this method
is chosen, the bid or quote should specify the transportation carrier and the terms and conditions.
This method is very disadvantageous to the City and can be very expensive to administer.

FOB Destination
Title/ownership passes to the City when the goods are accepted by the City and the seller
normally pays all transportation costs. If anything happens to the goods in transit, the City does
not have to pay the seller and the seller must file any claims and settle with the transportation
company for damages. This is the best method for the City.

FOB terms may be qualified by modifiers. The modifier determines the payment of the
transportation charges. Modifiers denote nothing about the title of the goods or filing of claims. The
four most common modifiers are: Collect; Prepaid & Add; Collect & Allow; and Estimated,
Prepaid & Add.

Collect
The carrier collects the transportation charges form the City.

FOB Destination, Freight Prepaid and Add
The seller will pay all delivery charges but will pass those costs along to the City. However, title will
not pass to the City until it has accepted the goods.

FOB Destination, Freight Collect & Allow
City pays freight charges and deducts the amount from the Seller’s invoice.

FOB Destination, Freight Estimated, Prepaid and Add
The Seller will quote only an estimated cost of delivery and will pass along the actual cost to the
City upon invoicing.

Note: Staff responsible for processing invoices should be aware of FOB arrangements and
carefully check delivery charges before authorizing their payment.




                                              Exhibit 4a
                                   FOB TERMS OF SALE


FOB Term                                   Party    Responsibility
                                                    Pays freight charges
                                                    Bears freight charges
FOB Origin                                 City
                                                    Owns goods in transit
                                                    Files claims (if any)
                                                    Pays freight charges
                                                    Bears freight charges
FOB Origin, Freight Collect                City
                                                    Owns goods in transit
                                                    Files claims (if any)
                                                    Pays freight charges
                                           Seller
                                                    Bears freight charges
FOB Origin, Freight Prepaid
                                                    Owns goods in transit
                                           City
                                                    Files claims (if any)
                                                    Pays freight charges
                                           Seller
                                                    (collects from City)
FOB Origin, Freight Prepaid & Add
                                                    Bears freight charges
(charged back to City on invoice)
                                           City     Owns goods in transit
                                                    Files claims (if any)
                                                    Pays freight charges
                                                    Bears freight charges
FOB Destination                            Seller
                                                    Owns goods in transit
                                                    Files claims (if any)
                                                    Pays freight charges
                                           City
                                                    Bears freight charges
FOB Destination, Freight Collect
                                                    Owns goods in transit
                                           Seller
                                                    Files claims (if any)
                                                    Pays freight charges
                                           City
FOB Destination, Freight Collect & Allow            (charges back to Seller)
(charged back to Seller by deducting                Bears freight charges
amount from invoice)                       Seller   Owns goods in transit
                                                    Files claims (if any)
                                                    Pays freight charges
                                                    Bears freight charges
FOB Destination, Freight Prepaid           Seller
                                                    Owns goods in transit
                                                    Files claims (if any)
                                                    Pays freight charges
                                                    (collects from City)
FOB Destination, Freight Prepaid & Add
                                           Seller   Bears freight charges
(charged back to City on invoice)
                                                    Owns goods in transit
                                                    Files claims (if any)




                                       Exhibit 4b
Exhibit 7
                                                                 Purchasing Manual             302
                                                                 Issue Date    Revision/Date   Appd
           Sample Forms                                          4/28/2009    D    5/11/2011   JMS




Form 1    Purchase Order
          Generated by Purchasing Division

Form 2    Single Source Explanation
          Download from Employee Website – Forms and Memos – Purchasing – pdf

Form 3    Recommendation for Award (Formal Bid)
          Download from Employee Website – Forms and Memos – Purchasing – pdf or Word

Form 4    Recommendation for Approval
          Download from Employee Website – Forms and Memos – Purchasing – pdf or Word

Form 5    Council Agenda Item
          Issued by Purchasing Division

Form 6    Purchase Requisition Discrepancy Notice
          Issued by Purchasing Division

Form 7    Purchase Order Maintenance
          Download from Employee Website – Forms and Memos – Purchasing – pdf or Word

Form 8    Property Transfer Disposition Form
          Multi-part form available in the Financial Services Department

Form 9    Bidder Mailing List Application Form
          Available in Purchasing Division

Form 10   Vendor Registration
          Download from Employee Website – Forms and Memos – Finance – pdf or Word

Form 11   Local Preference Affidavit of Eligibility
          Issued by Purchasing Division
Sample Form 1a (3/09)
Sample Form 1b (3/09)
Sample Form 2a (3/09)
Sample Form 2b (3/09)
Sample Form 3 (5/11)
Sample Form 4 (5/11)
Sample Form 5 (3/09)
Sample Form 6 (5/11)
Sample Form 7 (4/10)
Sample Form 8 (3/09)
Sample Form 9 (3/09)
Sample Form (3/10)
Sample Form 11 (3/10)
                                                                Purchasing Manual             302
                                                                Issue Date    Revision/Date   Appd
              Subject Index/Sources                             4/28/2009    D    5/11/2011   JMS



SUBJECT                 SECTION LOCATION
Addenda                 7.01F, 7.05G2
Advertising             1.05M, 12.04D, 15(2-237), 16
Award                   1.05H, 2.05D, 3.8, 3.11, 3.12, 4.01, 6.04, 7.01, 7.02, 7.03, 7.05, 9.01,
                        10.03, 11, 12.04G, 12.09, 13.02, 13.03, 13.04, 15(2-233, 236, 237, 238,
                        239, 242, 244, 245, 246, 249), 16, Exh 2, Form 3
Bid Bond                7.01G, 7.03D, 9.01A, 9.01D, 16
Bid Security            16
Bidders List            7.01D, 16
Blanket Purchase        3.05, 5.01, 5.03
Order
CCNA                    3.12, 7.02, 10, 15(2-239)
Change Order            16
Check Request           3.15, 4.01, 4.02, 5.07
Competitive Sealed      3.10, 15(2-238), 16
Bid
Competitive Sealed      15(2-238), 16
Proposals
Confirming Purchase     5.01D10
Conflict of Interest    10.03B, 10.03C, 13.02E, 16
Construction            5.01, 5.02, 6.04, 7.01E, 9.01E, 9.02, 9.05G, 9.06C, 9.07B, 10.02B,
                        10.07A, 11, 15(2-233), 16, Exh 6
Consultant              10.03G
Credit Card             3.03
Debarment               13.04, 16
Emergency Purchase      3.06, 5.04, 7.06, 15(2.248),16
Ethics                  2.06, 13.02, 16, Exh 1
Express Purchase        3.02, 3.04, 4.01
Order
Extension               7.01O
FOB                     5.01D8, 16, Exh 4a, Exh 4b
Formal Bid              2.02D, 3.10, 3.11, 4.01, 7.02, 7.04A, 12.09, 15(2-236, 2-237, 239, 241)
                        16, Form 3
Formal Proposal         3.11, 7.03, 15(2-238, 239, 241)
Formal Quote            3.09, 4.01, 7.02, 15(2-249.1)
Hold Harmless           9.02, 9.03, 9.05F, 16
Indemnification         9.05F
ITB                     3.10, 3.11, 7.01, 15(2-249.1)16
ITN                     16
Labor & Material Bond   9.01D
Late Bid                7.01M, 7.03E, 15(2-236H), 16
Letter of Credit        7.03D, 9.01E
Local Preference        7.02, 15(2-249.1), Exh 8, Form 11
No Bid                  16
Payment                 3.07, 3.14, 4.02, 5.07, 7.03, 9.01, 9.03, 9.06A, 10.02D, 12.05G, 12.06,
                        13.02C, 16, Exh 4a
SUBJECT                  SECTION LOCATION
Payment Bond             7.01G, 9.01C, 9.01D, 16
Performance Bond         9.01B, 15(2-236), 16
Petty Cash               3.01, 3.04, 4.01, 4.02
Pre-bid                  7.01C, 7.05B1
Procurement Card         2.02, 3.03, 3.04, 3.07, 4.01, 4.02
Professional Service     3.11, 9.07C, 10.01, 10.02, 10,04, 10.06, 10.07, 15(2-231, 233), 16
Protest                  7.05, 15(2-249), 16
Public Disclosure        7.04B
Public Notice            7.01, 15(2-236, 238), 16
Purchase Order           3.02, 3.04, 3.05, 3.07, 3.14, 4.01, 4.02, 5.01, 5.02, 5.03, 5.04, 5.05,
                         5.06, 5.07,
                         6.03, 7.04, 10.02, 15(2-234, 235), 16, Exh5
Purchase Order           5.05, 6,6.01, Form 7
Maintenance
Purchase Requisition     3.04, 3.08, 4.01, 5.01, 5.02, 5.03, 5.04, 14.01
Purchase Requisition     3.04, 3.08, 4.01, 5.01, 5.02, 5.04, 14.01
Quote                    1.04GH, 3.08, 4.01, 5.01, 5.03, 5.04, 7.06(5), 15(2-241), Exh 4
Renewal                  7.01H, 9.04, 9.05E, 16
RFP                      3.10, 7.01D, 7.03C, 10.02, 15(2-238(1), 16
Sealed Bid               3.09, 16
Sealed Proposal          3.10, 15(2.238), 16
Single Source            2.05E, 3.13, 7.06
Sole Source              3.13, 16, Form 2
Specifications           8.01, 16
State Contract           3.12
Surplus Property         12.02, 16
Tie Bid                  7.01V, 7.01Z3, 15(2-246), 16
Unauthorized             4.02, 15(2-234)
Purchase
Waiver                   4.01, 7.01P, 7.01Y, 7.05C2, 7.06, 9.04, 15(2-237), 16




Sources
City of Port St Lucie Purchasing Policy and Procedure Manual, Port St Lucie, Florida
Service Contracting, A Local Government Guide, ICMA, Donald F. Harney
Florida Association of Public Purchasing Officers (FAPPO)
Multiple city and county purchasing manuals
                                                               Purchasing Manual             302
                                                               Issue Date    Revision/Date   Appd
        Revisions                                              4/28/2009    E    5/11/2011   JMS



REV   DATE        SECTIONS REVISED
 A    9/23/2009   TOC, Section 7, Section 15, Subject Index
 B    9/23/2009   Section 5
 C    3/18/2010   TOC, Section 7, Exhibits, Sample Forms, Subject Index
 D    4/12/2010   Section 4, Section 6, Sample Forms
 E    5/11/2011   TOC, Section 1, Section 2, Section 3, Section 4, Section 5, Section 6,
                  Section 7, Section 9, Section 10, Section 13, Section 14, Section 15, Exhibits
                  Page, Exhibit 2, Exhibit 3, Exhibit 5, Exhibit 7, Sample Forms, Form 3, Form 4,
                  Form 6, Subject Index

				
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posted:10/14/2011
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