KDOT Procurement Guidelines for STP/CMAQ Funded Planning, Education, and Outreach Projects Effective 10/1/12

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1 KDOT Procurement Guidelines for STP/CMAQ Funded Planning, Education, and Outreach Projects Effective 10/1/12 Purpose These guidelines are intended to guide the procurement of goods and consultant services in relation to STP/CMAQ funded planning, education, and outreach projects in accordance with all applicable federal and state rules and regulations. Procurement of Goods and Consultant Services in General Outlined below are KDOT s procurement standards and processes for the solicitation of goods and consultant services that are utilizing the above referenced federal aid funds. It is important to note before moving forward, that in most cases, the local project sponsor or their fiscal agent s procurement standards are more stringent than KDOT s. If this is the case, then the local project sponsor should follow the set of standards that are the most strict. KDOT will review the procurement standards of the local project sponsor in order to ensure consistency with state and federal rules prior to the start of the procurement process. If the local procurement procedures change, it is the responsibility of the local project sponsor to provide KDOT the new policy for review. Prior to the procurement of any consultant services or goods related to a project, the STP/CMAQ funds must be included in an approved TIP. The project must be programmed at KDOT with an assigned project number, agreements executed, other necessary documentation completed, and the federal funds obligated. It is important to note that STP funded planning projects must be included in an approved Unified Planning Work Program (UPWP) prior to obligation of funds. The local project sponsor will receive a notice to proceed letter signifying that work can begin on the project. It is also important to note that the expected cost of the good or consultant service will determine what type of bid will be required and the proper processes and procedures to follow. For projects requiring consultant services the appropriateness of a DBE goal will also play a factor in the type of bid that will be required in addition to the expected cost. Notes on Request for Proposals/Qualifications The local project sponsor will develop a Request for Proposal (RFP) or a Request for Qualifications (RFQ) for the project or activity that includes, but is not limited to, the goals, objectives, and general scope of desired consultant services. The RFP/RFQ must identify all evaluation factors and their relative importance as per 49 CFR If a DBE goal has been placed on the project, the RFP/RFQs must include a statement encouraging the use of Disadvantaged Business Enterprise (DBE) firms and explicitly state the DBE participation goal amount. If no goal has been set, the local project sponsor is encouraged to include a statement promoting the utilization of DBE firms. For additional details regarding the DBE program as it pertains to this procurement process, please see KDOT DBE Program Guidance for STP/CMAQ Funded Planning, Education, and Outreach Projects and KDOT s DBE Program Manual. 1

2 Procurement of Consultant Services Please see Appendix A for a table outlines KDOT s expectations for procurement of consultant services. Consultant Services Procurement Procedures These procedures shall be followed in order to ensure proper procurement of consultant services. These procedures are applicable regardless of the placement of a DBE goal on the project. Copies of the Notices are in Appendices C-E. Reference 49 CFR Procurement Process Notice to Proceed with RFP/RFQ The local project sponsor will submit to the KDOT Project Manager a Notice to Proceed with RFP/RFQ at least 10 business days before the RFP/RFQ is expected to be issued along with a draft of the RFP/RFQ and any appropriate attachments. Upon KDOT s review of the Notice to Proceed with RFP/RFQ, the draft RFP/RFQ will be forwarded to KDOT s Office of Civil Rights for review and placement of a DBE participation goal as appropriate. Please note that the local project sponsor may be called upon for consultation and to provide additional information as to specific activities within the RFP/RFQ that could be broken out as potential DBE consulting opportunities. Within 10 business days, KDOT staff will return the Notice to Proceed with RFP/RFQ to the local project sponsor approving or requesting changes be made to the RFP/RFQ. The Notice to Proceed with RFP/RFQ will indicate the amount to be placed as the DBE goal. If changes are requested to be made, KDOT must receive these revisions before the local project sponsor moves forward with the procurement process. The local project sponsor will receive the approved Notice to Proceed with RFP/RFP once all requested changes and issues are resolved. Upon receipt of the approved Notice the local project sponsor may issue the RFP/RFQ. The RFP/RFQ must be advertised for a minimum of 14 days. Once proposals are received, the local project sponsor may conduct any short-listing that needs to occur and then proceed with the next step in this process. Notice to Proceed with Interviews At least 10 business days before consultant interviews are to be held, the local project sponsor will submit to KDOT the Notice to Proceed with Interviews form. This Notice includes a list of all firms submitting proposals and indicates if the DBE goal will be met or that good faith documentation has been submitted. A copy of DBE Provision R12 for each firm submitting a proposal must be included with this Notice. This form will serve to as a review of meeting the DBE goal or good faith effort documentation (If issues arise, the KDOT will work with the local project sponsor to address those issues before interviewing begins). If the DBE goal is not proposed to be met by a bidding consultant firm or team, good faith effort documentation must be provided and will be reviewed and approved as appropriate by KDOT. Please see KDOT DBE Program Guidance for STP/CMAQ Funded Planning, Education, and Outreach Projects for more information on good faith effort documentation. KDOT will return the Notice to Proceed with Interviews to the local project sponsor within 10 2

3 business days upon receipt. Upon return receipt of an approved Notice to Proceed with Interviews the local project sponsor will be able to proceed with the interview/consultant selection process. Notice to Award Once interviews are held and a firm is selected, the local project sponsor will submit to KDOT the Notice to Award, a draft scope of work and contracts, along with any other required attachments at least 5 business days before awarding the contract to the consultant. KDOT will return the Notice to Award within 5 business days to the local project sponsor either approving the award or recommending further changes to the draft scope or work and contract. If changes are requested to be made, KDOT must review these revisions before the local project sponsor is sent an approved Notice to Award the project. Once the local project sponsor receives the approved Notice to Award, they may formally award the project and proceed with finalization of the scope of work and associated contracts. The local project sponsor shall provide KDOT with a copy of the finalized Scope of Work and contracts, along with any required attachments within 10 business days after the contract is signed. This will include copies of any and all contracts between the local project sponsor and prime consultant and any sub consultants. Note: This procurement process does not preclude KDOT s involvement and participation in the short listing and interview processes. KDOT will make every effort to adhere to the timeframes above unless extenuating circumstances develop. Procurement of Goods Prior to the purchase of goods associated with a project, the funds must be included in an approved TIP. The project must be programmed at KDOT with an assigned project number, agreements and other necessary documents in place, and the federal funds obligated. Examples of goods that could be purchased under these types of projects are: air quality education materials, small promotional items, software equipment, bike/ped counters. The expected cost of the item(s) will determine what type of bid will be required and the proper processes/procedures to follow. Please see Appendix B for a table outlines KDOT s expectations for procurement of goods. PROMPT PAYMENT REQUIREMENTS KDOT payments to Local Project Sponsor and Local Project Sponsor payments to Prime Consultant(s) The local project sponsor is required to reimburse any Prime Consultant engaged by contract no later than thirty (30) calendar days from receipt of any properly completed and undisputed invoice of a Prime Consultant. The local project sponsor may not wait until it receives payment from KDOT to pay its Prime Consultant(s) because programs supported by federal funding are reimbursable to the local project sponsor by KDOT only after the local project sponsor has made payment to its Prime Consultants (if any). Requests by the local project sponsor to KDOT for reimbursement may be made no more frequently than once a month for at least $1,000.00, and such requests shall include supporting documentation evidencing payment by the local project sponsor for any Prime Consultant invoice claimed for 3

4 reimbursement as well as supporting documentation furnished to the local project sponsor by the Prime Consultant(s) (if any), as described below in Prompt Payment by Prime Consultants. If the local project sponsor does not or cannot furnish supporting documentation to demonstrate that it has promptly paid each properly completed and undisputed invoice submitted by each Prime Consultant (if any) and that each such Prime Consultant has, in turn, promptly paid its sub-consultants (if any), then KDOT may withhold reimbursement to the local project sponsor until satisfactory evidence or supporting documentation is furnished to KDOT. Prompt Payment by Prime Consultants The local project sponsor shall require, in its contract with any Prime Consultant, that the Prime Consultant shall include the following or equivalent clauses obligating the Prime Consultant to make prompt payments to each sub-consultant and subcontractor (DBE and non-dbe), and to provide supporting documentation of prompt payments by properly completing the form entitled Prompt Payment by Prime Consultant found in Appendix D. Upon receipt of each payment, [ Insert name of Prime Consultant ] shall (1) within ten (10) calendar days pay any sub-consultant or subcontractor engaged by it for satisfactory performance of their contract obligations and (2) within fifteen (15) calendar days submit a completed Prompt Payment by Prime Consultant Form together with supporting documentation to [ insert name of local project sponsor] as verification that [Prime Consultant] has, in fact, promptly paid each sub-consultant or subcontractor. For any delay or postponement of payments to its sub-consultants or subcontractors hereunder, [Prime Consultant] shall justify the delay or postponement by showing good cause for it, or rectify the failure to pay. If [Prime Consultant], within fifteen (15) day period specified in (2) above, either (a) cannot verify prompt payment or (b) cannot show good cause for any delay or postponement of payment, then [local project sponsor] may withhold further payment to [Prime Consultant] until such time the delay in payment is rectified. [Prime Consultant] shall include in its contracts with sub-consultants and subcontractors (if any) the following or equivalent clause regarding prompt payment: Within ten (10) calendar days of [Prime Consultant s] receipt of payment from [local project sponsor] for satisfactory performance of its contract obligations, [Prime Consultant] shall pay [insert name of sub-consultant or subcontractor] for satisfactory performance of its subcontract obligations. Additional Attachments Please include a copy of Special Attachment No. 1 (located in Appendix F) in agreements with the prime consultants and any sub consultants to contracts for consultant services. 4

5 KDOT Procurement Standards for STP/CMAQ Funded Planning, Education, and Outreach Projects Consultant Services < $5,000 Type of Bid Local project sponsors are encouraged to solicit consultant services with estimated costs of less than $5,000 by obtaining comparative pricing via telephone, fax, letter, or bids. Notes Procurement of services under this $5,000 threshold are not required to go through KDOT's STP/CMAQ Procurement Process, but the task or activity must be eligible and programmed as part of an approved scope of the project prior to the start of any solicitation efforts. Formal advertising is not required. It is recommended that a general scope of the work activity be developed for the purposes of any solicitation efforts made. KDOT considers it a best practice to keep on file documentation in support of any solicitation efforts made and so that this information may be made available to KDOT and/or USDOT upon request for review. Documentation includes, but is not limited to, bid tabs, telephone bid sheets, or fax quotations. The setting of DBE goals will not apply for services procured under this threshold; however, the local project sponsor is strongly encouraged to include contacts with DBE firms in any solicitation efforts that are made. >$5,000 but < $25,000 The minimum expectation for the procurement of consultant services is detailed to the left. The local project sponsor shall actively solicit written proposals for consultant services within this range. Depending on the scope and nature of the work activity, however, the procurement of consultant services within this range may require a formal bidding and procurement process for the purposes of reviewing for and the establishment of a DBE goal. The local project sponsor is expected to contact KDOT prior to the initiation of the solicitation process in order to determine the appropriate The solicitation of consultant services with procurement method and process. This is largely dependent upon the potential DBE consulting opportunities expected in the work activity. estimated costs of greater than $5,000 but less The local project sponsor is expected to advertise the work activity for a minimum of 14 days through appropriate means and actively solicit potential than $25,000 shall be made by obtaining written firms. The local project sponsor must advertise a scope of the work activity along with the evaluation criteria that will be used to select the firm. project proposals. KDOT's STP/CMAQ Procurement Documentation of the solicitation efforts are required and must be kept on file so that they may be made available to KDOT and/or USDOT upon Process may be required depending on the request for review. Acceptable forms of documentation include, but are not limited to, submitted project proposals, procurement summaries, evidence appropriateness of a DBE goal. of advertisement efforts, and all associated letters, s or faxes. Documentation must include an evaluation of the proposals based on a set of evaluation criteria and justification for the selection of the consultant based upon qualifications. The setting of DBE goals may or may not apply for services procured within this range as previously stated. If no goal is formally set for the work activity, the local project sponsor is strongly encouraged to include contacts with DBE firms in their solicitation efforts. >$25,000 KDOT STP/CMAQ Procurement Process is required, formal competitive bidding process, and advertising is mandatory Procurement of services greater than the $25,000 threshold must go through the KDOT STP/CMAQ Procurement Process and DBE Goal Setting process. Documentation of the solicitation process is required and must be kept on file so that it may be made available to KDOT and/or USDOT upon request for review. All other additional requirements as to the procurement of consultant services as prescribed by state and federal rules and regulations apply. 1. Please note that if the procurement procedures of the local project sponsor or the local project sponsor's fiscal agent are more strict than these standards, then the most stringent of the standards will apply. If the local project sponsor's procedures require formal bidding, then the KDOT STP/CMAQ Procurement Process shall be followed. 2. KDOT reserves the right to require the procurement process when the scope and nature of the work could present subcontracting opportunities upon which DBE goals may be placed. 3. Work that is estimated to be just at or near a particular threshold may require a higher type of bidding process. Alternatively, flexibility exists to conduct a bidding process at a lower level depending on the scope and nature of the work to be performed. KDOT strongly encourages discussing the type of bid required with KDOT staff in advance of the expected procurement process. 4. Under any solicitation efforts, the local project sponsor must demonstrate diversity in the firms from whom they are soliciting bids. Diversity includes both the active solicitation of DBE and non-dbe firms as well as the active solicitation of a variety of different firms amongst all procurement processes conducted by the local project sponsor. 5. The project or activity for which consultant services are being procured must be eligible and included in an approved scope of the project. The KDOT Project Manager must be aware of the purchase of such services through approval of the project and reimbursement is subject to review for eligibility and allowability. revised 7/1/2012

6 KDOT Procurement Standards for STP/CMAQ Funded Planning, Education, and Outreach Projects Purchase of Goods < $5,000 Local project sponsors are encouraged to solicit goods with estimated costs of less than $5,000 by obtaining comparative pricing via telephone, fax, letter, or bids. Notes For the procurement of goods under this $5,000 threshold the local project sponsor is encouraged to solicit bids from an appropriate number of bidders. KDOT considers it best practice to keep on file documentation in support of any solicitation efforts made and retain this information so that it be made available to KDOT and/or USDOT upon request for review. Documentation includes, but is not limited to, bid tabs, telephone bid sheets, or fax quotations. Formal advertising is not required. It is recommended that a general bid specifications for the good to be purchased be developed for the purposes of any solicitation efforts made. >$5,000 but < $25,000 For the procurement of goods within this range there must be efforts made to solicit bids from an appropriate number of bidders and a public posting of the bid item must be made. A minimum 3 day public posting of this solicitation is required and shall be publicized in a manner that reaches many potential bidders. Bids should be The solicitation of goods with estimated costs of greater received via sealed bid, fax, , or similar written format. than $5,000 but less than $25,000 shall be made by Specifications for the bid item shall be detailed in the public posting. obtaining comparative pricing via letter, fax, or bids. Documentation of the solicitation efforts and public posting must be on file and made available to KDOT/USDOT A minimum of three written bids are required to be upon request. obtained. The lowest bid meeting the local project sponsors specifications should be selected, and if not, justifications for doing otherwise must be documented in the file. > $25,000 Formal competitive solicitation of bids and advertising is mandatory The local project sponsor may follow the procurement procedures of their own agency or fiscal agent provided they are at least as stringent as the State. Alternatively, the local project sponsor may defer the KDOT Procurement Procedures if no such local procedures exist. The local project sponsor is encouraged to consult with KDOT in advance in order to ensure competitive solicitation and advertising. Advertising for a minimum of 14 days is expected. For purchases at or above this threshold the local project sponsor must contact the KDOT project manager to determine if any additional oversight to the project is required. The lowest bid meeting the local project sponsors specifications should be selected, and if not, justifications for doing otherwise must be documented in the file. 1. Please note that if the the procurement procedures of the local project sponsor or the local project sponsors's fiscal agent are more strict than these standards, then the most stringent of the standards will apply. KDOT must approve the procurement procedures of the Local Project Sponsor prior to initiation of the bidding process. 2. The type of bid required is also dependent on the nature of the goods to be purchased. Purchases that are estimated to be just at or near a particular threshold may require a higher type of bidding process. Alternatively, flexibility exists to conduct a bidding process at a lower level depending upon the nature of the good to be purchased. KDOT strongly encourages discussing the type of bid required with KDOT staff well in advance of the procurement process. 3. The goods to be purchased must be eligible and included in the approved scope of the project. The KDOT Project Manager must be aware of the purchase of such goods through approval of project scope and reimbursement is subject to review for eligibility and allowability. 4. DBE goals typically are not placed on the purchase of goods. revised 7/1/2012

7 Notice to Proceed with RFP/RFQ TO: FROM: DATE: CLICK TO SELECT DATE Project Name: The following are attached: RFP RFQ KDOT use Only Approved Comments: Changes Needed DBE Goal: % Signature: Date:

8 Notice to Proceed with Interviews Staff Contact Person : KDOT Contact Person: DATE: CLICK TO SELECT DATE Project Name : Name of Firms Selected for Interview (check box if proposal meets the DBE Goal): KDOT use Only Approved Changes Needed Comments: Signature: Date:

9 In the space provided below, please include all firms/consultants whom submitted proposals on the project. Please check the box located to the right of the firm s name if the DBE goal is met in the proposal. Please attach DBE provision R12 for each of the firms listed above. In the event the DBE goal is not met in the proposal, good faith effort documentation shall be provided.

10 Notice to Award TO: FROM: DATE: CLICK TO SELECT DATE Project Name: Name of Selected Firm(s): Please attach draft Scope of Work and Contract. Note: A finalized Scope of Work and Contract with required attachments must be sent to KDOT within 7 days after the contract is signed. KDOT use Only Approved Changes Needed Comments: Signature: Date:

11 KANSAS DEPARTMENT OF TRANSPORATION Special Attachment To Contracts or Agreements Entered Into By the Secretary of Transportation of the State of Kansas Special Attachment No. 1 Page 1 of 2 NOTE: Whenever this Special Attachment conflicts with provisions of the Document to which it is attached, this Special Attachment shall govern. THE CIVIL RIGHTS ACT OF 1964, and any amendments thereto, REHABILITATION ACT OF 1973, and any amendments thereto, AMERICANS WITH DISABILITIES ACT OF 1990, and any amendments thereto, AGE DISCRIMINATION ACT OF 1975, and any amendments thereto, EXECUTIVE ORDER 12898, FEDERAL ACTIONS TO ADDRESS ENVIRONMENTAL JUSTICE IN MINORITY POPULATIONS AND LOW INCOME POPULATIONS 1994, and any amendments thereto, 49 C.F.R. Part 26.1 (DBE Program), and any amendments thereto NOTIFICATION The Secretary of Transportation for the State of Kansas, in accordance with the provisions of Title VI and Title VII of the Civil Rights Act of 1964 (78 Stat. 252), 504 of the Rehabilitation Act of 1973 (87 Stat. 355) and the Americans with Disabilities Act of 1990 (42 USC 12101), the Age Discrimination Act of 1975 (42 USC 6101), the Regulations of the U.S. Department of Transportation (49 C.F.R., Part 21, 23, and 27), issued pursuant to such ACT, Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low Income Populations (1994), and the DBE Program (49 C.F.R., Part 26.1), hereby notifies all contracting parties that, the contracting parties will affirmatively ensure that this contract will be implemented without discrimination on the grounds of race, religion, color, gender, age, disability, national origin, or minority populations and low income populations as more specifically set out in the following Nondiscrimination Clauses. CLARIFICATION Where the term consultant appears in the following Nondiscrimination Clauses, the term consultant is understood to include all parties to contracts or agreements with the Secretary of Transportation of the State of Kansas. Nondiscrimination Clauses During the performance of this contract, the consultant, or the consultant s assignees and successors in interest (hereinafter referred to as the Consultant ), agrees as follows: 1) Compliance with Regulations: The consultant will comply with the Regulations of the U.S. Department of Transportation relative to nondiscrimination in federally-assisted programs of the U.S. Department of Transportation (Title 49, Code of Federal Regulations, Parts 21, 23 and 27, hereinafter referred to as the Regulations), which are herein incorporated by reference and made a part of this contract. 2) Nondiscrimination: The consultant, with regard to the work performed by the consultant after award and prior to the completion of the contract work, will not discriminate on the grounds of race, religion, color, gender, age, disability, national origin or minority populations and low income populations in the selection and retention of subcontractors, including procurements of materials and leases of equipment. The consultant will not participate either directly or indirectly in the discrimination prohibited by Section 21.5 of the Regulations, including employment practices when the contract covers a program set forth in Appendix B of the Regulations. 3) Solicitations for Subcontractors, including Procurements of Material and Equipment: In all solicitations, either competitive bidding or negotiation made by the consultant for work to be performed under a subcontract including procurements of materials and equipment, each potential subcontractor or supplier shall be notified by the consultant of the consultant s obligation under this contract and the Regulations relative to nondiscrimination on the grounds of race, religion, color, gender, age, disability, national origin or minority populations and low income populations. (Revised 7/29/99)

12 Special Attachment No. 1 Page 2 of 2 4) Information and Reports: The consultant will provide all information and reports required by the Regulations, or orders and instructions issued pursuant thereto, and the Secretary of the Transportation of the State of Kansas will be permitted access to the consultant s books, records, accounts, other sources of information, and facilities as may be determined by the Secretary of Transportation of the State of Kansas to be pertinent to ascertain compliance with such Regulations, orders and instructions. Where any information required of a consultant is in the exclusive possession of another who fails or refuses to furnish this information, the consultant shall so certify to the Secretary of Transportation of the State of Kansas and shall set forth what efforts it has made to obtain the information. 5) Employment: The consultant will not discriminate against any employee or applicant for employment because of race, religion, color, gender, age, disability, or natural origin. 6) Sanctions for Noncompliance: In the event of the consultant s noncompliance with the nondiscrimination provisions of this contract, the Secretary of Transportation of the State of Kansas shall impose such contract sanctions as the Secretary of Transportation of the State of Kansas may determine to be appropriate, including, but not limited to, (a) withholding of payments to the consultant under the contract until the contractor complies, and/or (b) cancellation, termination or suspension of the contract, in whole or in part. 7) Disadvantaged Business Obligation (a) Disadvantaged Business as defined in the Regulations shall have a level playing field to compete for contracts financed in whole or in part with federal funds under this contract. (b) All necessary and reasonable steps shall be taken in accordance with the Regulations to ensure that Disadvantaged Businesses have equal opportunity to compete for and perform contracts. No person(s) shall be discriminated against on the basis of race, color, gender, or national origin in the award and performance of federally-assisted contracts. (c) The contractor, sub recipient or subcontractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. The contractor shall carry out applicable requirements of 49 C.F.R. Part 26 in the award and administration of Federally-assisted contracts. Failure by the contractor to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy, as the recipient deems appropriate. 8) Executive Order (a) To the extent permitted by existing law, and whenever practical and appropriate, all necessary and reasonable steps shall be taken in accordance with Executive Order to collect, maintain, and analyze information on the race, color, national origin and income level of persons affected by programs, policies and activities of the Secretary of Transportation of the State of Kansas and use such information in complying with this Order. 9) Incorporation of Provisions: The consultant will include the provisions of paragraphs (1) through (8) in every subcontract, including procurements of materials and equipment, unless exempt by the Regulations, order, or instructions issued pursuant thereto. The consultant will take such action with respect to any subcontract or procurement as the Secretary of Transportation of the State of Kansas may direct as a means of enforcing such provisions including sanctions for noncompliance: PROVIDED, however, that, in the event a consultant becomes involved in, or is threatened with, litigation with a subcontractor or supplier as a result of such direction, the consultant may request the State to enter into such litigation to protect the interests of the State. (Revised 7/29/99)

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