Metropolitan Government of Nashville

And Davidson County

Department of Finance

Procurement Manual

Kevin Crumbo, Finance Director

Talia Lomax-O’dneal, Chair, Procurement Standards Board

Division of Purchases

Michelle A. Hernandez Lane, Purchasing Agent and Chief Procurement Officer

Historic Lindsley Hall on the Fulton Complex

730 2nd Avenue North

Nashville, TN 37201

Nashville.gov

Published May 2019

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Table of Contents

Chapter One General Information & Organization.......................................................... 2

Chapter Two Division of Purchases ................................................................................. 3

Chapter Three Purchasing Agent ..................................................................................... 6

Chapter Four Delegated Purchasing Authority ................................................................ 7

Chapter Five Terms and Titles ........................................................................................ 8

Chapter Six Purchasing Cycle .................................................................................... 11

Chapter Seven Source Selection ..................................................................................... 13

Chapter Eight Specifications Regulation 4.16 ................................................................ 17

Chapter Nine Contract Administration .......................................................................... 20

Chapter Ten Special Programs .................................................................................... 20

Chapter Eleven Legal and Contractual Remedies ........................................................... 21

Section Twelve Ethics and Code of Conduct .................................................................. 24

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Chapter One General Information & Organization Section 1.00 General Information and Organization—Chart

Purchasing & BAOFY19 Budgeted FTEs (21)

Procurement Resource Grp Procurement/BuyersAdministrative BAO

Judy Cantlon Admin Services Officer 3

OR03

Jerval WatsonProcurement Business Devlopement Officer

OR05

PROCUREMENT RESOURCE GROUP

Terri TroupFinance Administrator

OR07

BUYER GROUPGenario Pittman

Finance AdministratorOR07

BUSINESS ASSISTANCE OFFICE

Christopher S. WoodFinance Manager

OR09

VacantProcurement Officer 2

OR03

Marissa ConklinProcurement Officer1

OR01

Matthew TaylorProcurement Officer 2

OR05

Daniel DrumwrightProcurement Officer 2

OR03

Joe Ann CarrProcurement Officer 2

OR03

Jeremy Frye Procurement Officer 3

OR03

Tina Burt Procurement Officer 3

OR05

Karen DavisProcurement Officer 2

OR03

Kathryn NicolProcurement Officer 2

OR03

Christina AlexanderProcurement Officer 3

OR05

Vada BrownProcurement Officer 2

OR03

Bradley WallProcurement Officer3

OR05

John Shire Procurement Officer 2

OR03

Business Development

Jamie HunterProcurement Officer 2

OR03

BUYER GROUPSandra Walker

Finance AdministratorOR07

Michelle Hernandez Lane

Purchasing Agent

OR11

Section 1.01 General Information and Organization—Vision and Mission The division of purchases subscribes to the overall vision and mission of the department of finance: Vision: Excellence in the management of public resources.

Mission: To provide financial management, information, and business products to policy makers, departments, agencies, investors, and the Nashville community so they can have confidence in Metro Government, make informed decisions, and achieve their results.

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Section 1.02 General Information and Organization—Values

Values: Service 1. Providing efficient service to departments, agencies and the community.

Stewardship 2. Safeguarding public trust and funds by seeking the best value in all purchases.

Professionalism 3. Upholding the highest ethical and professional standards in the serve of Metro.

Equity 4. Being intentional about diversity, equity and economic inclusion in everything we do.

Chapter Two Division of Purchases Section 2.01 Division of Purchases—Authority Article 8, Section 8.108 of the Charter of the Metropolitan Government of Nashville and Davidson County (the “Charter”) establishes the division of purchases within the department of finance. Section 2.02 Division of Purchases—Role The division of purchases serves as the central procurement authority for the Metropolitan Government of Nashville and Davidson County (“Metro”). (See 4.08.070 of the Metropolitan Code of Laws (the “Metro Code”)) Pursuant to Section 4.04.020(C) of the Metro Code, the following agencies are exempted from compliance with this code:

• Metro Nashville Public Schools

• WeGo Public Transit (formerly Metro Transit Authority)

• Metro Nashville Airport Authority

• Hospital Authority

• Metro Sports Authority

• Convention Center Authority

• Metropolitan Development and Housing Authority

• Nashville Electric Service

Section 2.03 Division of Purchases—Regulations In addition to the Charter, the division of purchases and the procurement process are governed by two regulatory bodies:

• The Metropolitan Council

• The Procurement Standards Board

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Rules and regulations put forward by the Metropolitan Council are found in Title 4 of the Metro Code. Rules and regulations promulgated by the procurement standards board are found in the Regulations to the 1992 Procurement Code. (See procurement regulations) Section 2.04 Division of Purchases—Our Responsibilities The Division of Purchases is responsible for securing the necessary supplies, materials, equipment, contractual services, and other such items as may be appropriate for the 51 departments, agencies, and commissions that comprise the Metropolitan Government of Nashville and Davidson County. Specifically, the division of purchases is responsible for: 1) Understanding the particular need(s) of procuring departments/agencies and

helping meet those needs at the lowest cost to the Metro Government.

2) Reviewing source selection, specifications/scopes of work or service—provided by

procuring departments/agencies—to ensure compliance with applicable rules and

regulations.

3) Issuing solicitations, locating sources, identifying availability, and awarding

contracts on behalf of procuring departments/agencies.

4) Processing all requisitions and purchases in a timely manner, consistent with

established and understandable procedures.

5) Managing the overall purchasing process, including completing purchases via

contract execution and follow-up as requested by the procuring department/agency.

6) Maintaining high ethical standards, both internally and externally, including

purchasing staff, contractors, suppliers and departments/agencies engaged in

procurement activity on behalf of Metro government.

TIP: It may be assumed that, unless otherwise provided for in a subsequent section, those duties not specifically reserved for the Division of Purchases are the responsibility of the procuring department/agency. Section 2.05 Division of Purchases—Your Responsibilities In the procurement process, the Division of Purchases and the procuring department/agency each play an important part. The procuring department/agency identifies requirements of a particular purchase, while the division of purchases is charged with determining quality and compliance.

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Specifically, the procuring department/agency is responsible for: 1) Utilizing iProcurement for all purchasing activity and in accordance with the

directives of Metro internal audit report.

2) Allowing ample time for the Division of Purchases to process requisitions, issue the

purchase order/contract, and allowing the supplier time to deliver the needed items

or services.

3) Initiating purchases via a requisition a minimum of 90-days in advance of need or

contract expiration to prevent avoidable urgent or emergency situations.

4) Preparing complete and accurate descriptions—including any specifications

necessary to issue a solicitation—for goods or services being procured. Details for

technical equipment, design work, or planning should originate with the procuring

department/agency. (See chapter eight)

5) Acquiring appropriate approvals prior to committing Metro to a purchase.

6) Ensuring maximum competition by avoiding overly restrictive specifications and

using commercially available off the shelf products when possible.

7) Including the Division of Purchases in all discussions and/or negotiations for bids

and proposals.

8) Ensuring that each sale receipt/ticket is clear, legible, and includes the following:

• Date of purchase

• Release number

• Quantity

• Unit price

• Total amount

• Vendor employee who made sale

• Date of delivery

• Item description

• Unit of measure

• Extended amount for each line

item

• Terms of payment

• Dept./agency employee receiving

9) Reviewing quantity and quality of goods or services delivered to ensure bid amount

is consistent with the ticket.

10) Receiving items requisitioned against purchase orders and releases.

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11) Advising the Division of Purchases, in writing, of defective merchandise or vendor

non-performance, provided that the procuring department will first attempt to resolve

by mutual agreement any issues that may arise with any vendor.

12) Entering, within five days of receiving a compliant invoice, receipts in the

iProcurement system that evidence the acceptable delivery of goods or services. An

appropriate invoice must be included with the receipt as authority to pay.

13) Ensuring that federal grants, State Pass Through or other grant conditions that

impose requirements accompany the requisitions and specifications. Mandatory pre-

bid conferences are not required under normal circumstances unless a federal or

state agency has it in their specific guidelines. The guidelines stating these grant

conditions shall be sent with the requisition.

TIP: “As soon as possible (ASAP)” and “Immediately” are not acceptable designated delivery dates because they are misleading and indefinite. Please provide definitive delivery dates. Bona-fide emergency situations or sole-source requests should be so noted with detailed justification and realistic delivery dates stated.

Chapter Three Purchasing Agent Section 3.01 Purchasing Agent—Appointment and Qualification Article 8, Section 8.108 of the Charter establishes the position of Purchasing Agent, within the Department of Finance, as the procurement authority for the Metropolitan Government of Nashville and Davidson County. The position, also commonly referred to as the chief procurement officer, is appointed by the Mayor, for an indefinite term, and subject to civil service provisions. The purchasing agent must have at least five years of experience in private business or governmental purchases and property management, control and accountability. Section 3.02 Purchasing Agent—Role The purchasing agent manages and controls the operations of the division of purchases, thereby serving as head of the central procurement authority for the Metropolitan Government of Nashville and Davidson County. Section 3.03 Purchasing Agent—Responsibilities Article 8, Section 8.110 of the Charter and Title 4, Sections 4.08.040 and 4.08.050 list specific powers and duties of the Purchasing Agent. These powers and duties include, but are not limited to: 1) Final authority to establish and enforce contract specifications.

2) Establish timelines for purchasing items, as well as duration of contracts.

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3) Inspect items and services to ensure compliance with specifications.

4) Supervise storerooms, mailing, and printing facilities for Metro agencies.

5) Oversee interagency transfer or sale of surplus items. 6) Report monthly activities to the Director of Finance.

7) Manage, accept, and/or reject competitive bid process to ensure compliance

Chapter Four Delegated Purchasing Authority Section 4.01 Delegated Purchasing Authority—Appointment Title 4, Section 4.08.060 of the Metro Code allows the Purchasing Agent to delegate authority to officers and employees of the Division of Purchases or any department, agency or official. In practical terms, this means the Purchasing Agent may designate another qualified procurement professional to exercise certain duties normally reserved for the Purchasing Agent. The rules governing delegated purchasing authority are subject to regulation by the procurement standards board. Section 4.02 Delegated Purchasing Authority—Role Regulation 4.08.060 of the procurement regulations (R4.08.060) lists specific roles, normally executed by the Purchasing Agent, which may be otherwise assigned under delegated purchasing authority.

1. The authority to issue contract releases and purchase orders against existing

state and metro contracts.

2. The authority to make small purchases.

Section 4.03 Delegated Purchasing Authority—Standards Regulation 4.08.060 of the procurement regulations (R4.08.060.01) lists specific conditions for the delegation of authority. They include, but are not limited to:

1. Annual compliance audits.

2. Verification standards for contract compliance.

3. Mandatory training for staff.

Regarding the issuance of purchase orders as releases against existing state and metro contracts, as well as the authority to make small purchases, the procurement regulations (R4.08.060.02) set out a specific format for such delegation which includes qualifications and responsibilities for the delegation of authority.

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Chapter Five Terms and Titles Section 5.01 Terms and Titles—General Definitions

a) Active Solicitation is the period of time that begins with the issuance of a solicitation by the

division of purchases and ends with the filing of a resulting contract with the metropolitan

clerk.

b) Adequate Price Competition means at least two responsible offerors independently

compete for a contract.

c) Award is the presentation by the metropolitan government of a purchase order or contract

to an offeror.

d) Bidder see offeror.

e) Brand Name or Equal Specification means a specification that uses one or more

manufacturer's names or catalogue numbers to describe the standard of quality and

performance necessary to meet metro requirements.

f) Brand Name Specification means a specification limited to one or more items by

manufacturers' names or catalogue numbers.

g) Capability means the ability of the offeror to perform at the time of award of the contract.

h) Capital Improvements Architecture/Engineering Review Board is a panel, appointed by

the director of finance upon recommendation of the purchasing agent that makes

recommendations to the mayor as to which architecture and engineering firms should be

selected for department/agency projects.

i) Contract Administration means the post-award administration of the contract by the

procuring department/agency to ensure compliance with the terms of the contract.

j) Cost Analysis is the evaluation of cost data in an attempt to project reasonable estimated

contract costs.

k) Cost Data are information concerning the actual or estimated cost of labor, material,

overhead, and other cost elements which have been actually incurred or which are expected

to be incurred by the contractor in performing the contract.

l) Discussions are an exchange of information during which the offeror and the metropolitan

government may alter or otherwise change the conditions, terms, and price of the proposed

contract.

a. Discussions are allowed for competitive sealed proposals, sole source, and

emergency procurement.

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b. Discussions are not allowed for competitive sealed bidding (except to the extent

permissible during the first phase of multi-step sealed bidding).

m) Emergency Conditions means a threat to public health, welfare, or safety that creates an

immediate and serious need that cannot be met through normal procurement methods.

n) Evaluation Team is the group of individuals selected by the purchasing agent to review and

score aspects of a competitive solicitation.

o) iProcurement is a web-based, self-servicing system that allows departments/agencies to

create, manage, and track aspects of the purchasing cycle while the division of purchases

retains central control.

p) ITB is the acronym for invitation to bid. An Invitation to Bid is used to initiate a competitive

sealed bid procurement.

See also: chapter seven-source selection

q) Late Bid means any document(s) received by the division of purchases, withdrawn or

modified by the offeror, after the time and date set for receipt of bids and proposals.

May also be referred to as late withdrawal or late modification.

r) Low Tie Bids means an invitation to bid (ITB) has received responsive bids from

responsible bidders that are identical in price.

s) Multistep Sealed Bidding Multi-step sealed bidding is a two-phase process consisting of a

technical first phase composed of one or more steps in which bidders submit unpriced

technical offers to be evaluated by Metro and a second phase in which those bidders whose

technical offers are determined to be acceptable during the first phase have their price bids

considered. It is designed to obtain the benefits of competitive sealed bidding by award of a

contract to the lowest responsive, responsible bidder and at the same time obtain the

benefits of the competitive sealed proposals procedure through the solicitation of technical

offers and the conduct of discussions to evaluate and determine the acceptability of

technical offers.

t) Offeror means any responsive and responsible bidder, proposer to a solicitation or sole

source request.

u) Prequalification means determining that a prospective bidder or offeror satisfies the criteria

established for being included on bidders/proposers list.

v) Price Analysis is the evaluation of price data with reasonable benchmarks, without analysis

of the separate cost components and profit as in cost analysis, which may assist in arriving

at prices to be paid and costs to be reimbursed.

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w) Price Data are factual information concerning prices, including profit, for supplies, services,

or construction substantially similar to those being procured. In this definition, "prices" refer

to offered or proposed selling prices, historical selling prices, and current selling prices of

such items. This definition refers to data relevant to both prime and subcontract prices.

x) Procurement Appeals Board is an oversight body established by the metro charter to

review and determine de novo any appeal by an aggrieved party from a decision by the

purchasing agent or designee.

y) Procurement Regulations are the policies put forward by the procurement standards board

to guide implementation of the procurement code.

z) Procurement Standards Board is the oversight body established by the metro charter that

establishes goals and performance expectations for the division of purchases.

aa) Protest Letter means a document sent from a supplier to the purchasing detailing an

action, process, specification, and/or ambiguity that serves as the basis for a claim of

impropriety in either a solicitation or an award. The document must provide the remedy

sought by the supplier for the claim at issue.

bb) Purchase Order is the method/form used to order authorize a vendor to ship and invoice

the goods or services as specified. Clear, concise and complete—a PO will generally

indicate types, quantities, and agreed upon prices between a vendor and Metro.

cc) Qualified Products List is a list of supplies, services, or construction items which the

purchasing agent has determined meets certain specification requirements.

dd) Requisition is a formal request from a department/agency to the division of purchases

identifying a good or service to be procured. Requisitions are submitted through the

iProcurement system.

ee) Responsible Bid is any bid, proposal or initial offer that demonstrates the offeror is legally

qualified to contract with the metropolitan government and has the appropriate resources, or

the ability to obtain said resources, to meet all contractual requirements of the solicitation.

May also be referred to as a responsible offer or responsible proposal.

ff) Responsive Bidder is an offeror that submits a bid which conforms in all material respects

to the Invitation to Bid.

gg) RFP is the acronym for request for proposal, a type of solicitation that evaluates price and

additional criteria to make an award.

See also: chapter seven-source selection

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hh) RFQ is the acronym for request for qualification, a type of solicitation that evaluates aptitude

and experience, but does not consider price, to make an award.

See also: chapter seven-source selection

ii) Responsible Offer see responsible bid.

jj) Responsible Proposal see responsible bid.

kk) SBE is an acronym for small business enterprise which is defined, generally, as an

individual, sole proprietorship, partnership, joint venture, or corporation independently

owned and operated in the United States, and which is not dominant in its field of operation,

and also meets certain revenue and employee criteria defined by the procurement

regulations.

ll) SDV is an acronym for service disabled veteran-owned enterprise which is defined,

generally, as any individual, sole proprietorship, partnership, joint venture, or corporation

with at least 51 percent ownership held by an individual who served honorably in active duty

in the armed forces of the United States and who sustained at least a twenty percent (20%)

disability that was incurred or aggravated in the line of duty.

mm) Specifications mean any description of the physical, functional, or performance

characteristics, or of the nature of a supply, service, or construction item. A specification

includes, as appropriate, requirements for inspecting, testing, or preparing a supply,

service, or construction item for delivery.

nn) Specification for a Common or General Use Item is a specification that has been

developed and approved for repeated use in procurements

oo) Sole Source Sole source defines a condition for making a purchase when a product or

service is available from only a single supplier.

See also: chapter seven-source selection.

pp) Solicitation means an Invitation to Bid, a Request for Proposals, a Request for Quotations,

or any other document issued by Metro for the purpose of soliciting bids or proposals to

perform a Metro contract.

qq) Supplier is a prospective bidder or offeror. May also be referred to as a ‘vendor.’

Chapter Six Purchasing Cycle Section 6.01 Purchasing Cycle—General Overview A purchasing cycle is a series of recurring actions taken to secure goods and services. For the Metropolitan Government, this cycle takes two (2) basic forms:

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1. Standard

2. Delegated Purchasing Authority

Generally, goods or services in excess of $10,000 should be procured through the Division of Purchases. The procuring department/agency will initiate the process by submitting a requisition, discussed further in chapter eight, that defines their need and identifies the source of funding. The Division of Purchases will, in consultation with the requesting department/agency, select the appropriate source for soliciting the good or service, at the completion of which an award will be issued. The Division of Purchases will enter into contract negotiations with the successful bidder on behalf of the procuring department/agency. The vendor should provide a performance bond, payment bond, and certificate of insurance to the division of purchases within 14-days. After the contract is executed, the procuring department/agency may then issue a purchase order authorizing the contractor to deliver the good or service at the agreed upon terms. To ensure payment by the Division of Accounts, departments/agencies should issue purchase orders through the iProcurement system. Departments/agencies should, within five days of acceptance, promptly enter receipts in the iProcurement that demonstrate the acceptable delivery of goods or services. The appropriate invoice should accompany said receipt as authority to pay. Subsequent monitoring of the contract is discussed further in chapter nine of this manual. Section 6.02 Purchasing Cycle—Standard

Request

Procure

Purchase

OrderSupply

Pay

Monitor1. Request is made by department/agency for good or

service via iProcurement.

2. Procurement identifies existing contract or solicits

new contract to obtain good or service.

3. Purchase order issued against contract by

department/agency for good or service.

4. Supplier provides good or service.

5. Payment is provided upon submission of receipt and

appropriate invoice to the division of purchases.

6. Department/agency monitors vendor compliance for

the duration of contract term.

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Section 6.03 Purchasing Cycle—Delegated Purchasing Authority

Chapter Seven Source Selection Section 7.01 Source Selection—Guidelines Source selection is the method by which goods and services are purchased. Guidelines for source selection are set by the procurement regulations. Below you will find a brief description of each source selection category; the methods used for solicitation, and tips on how to choose the right method for your purchase. Section 7.02 Source Selection—Competitive Sealed Bidding Competitive sealed bidding (CSB) is the process used to purchase goods and services when specifications are complete and there is little to no room for substitution. The most common CSB method is an invitation to bid (ITB). ITBs are competitively solicited for a minimum of ten (10) business days unless a shorter time is deemed necessary for a particular procurement as determined in writing by the Purchasing Agent. (See Regulation 4.12.030.04) Pre-bid conferences may be conducted to explain the procurement requirements. Bids are sealed and shall be opened publicly at the time and place indicated in the initial solicitation. (See Regulation 4.12.030.12) If a funding condition requires a mandatory pre-offer meeting, the department/agency should notify the Division of Purchases in writing. The contract is to be awarded to the lowest responsible and responsive bidder whose bid meets the requirements and criteria set forth in the invitation for bids. (See Regulation 4.12.030.14.1)

Quotes

Purchase

Order

Supply

Payment

Monitor

1. Department/agency solicits quotes for good or

service.

2. Purchase order issued for the good or service.

3. Supplier provides good or service.

4. Payment is provided upon submission of receipt

and appropriate invoice to the division of

purchases.

5. Department/agency monitors compliance for the

duration of contract term.

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TIP: elect to use this method when price is the only distinguishing characteristic for the good or service being procured. Section 7.03 Source Selection—Multi-Step Sealed Bidding The multi-step sealed bidding method may be used when it is not practical to prepare initially a definitive purchase description that will be suitable to permit an award based on price. Multi-step sealed bidding may thus be used when it is considered desirable:

a) to invite and evaluate technical offers to determine their acceptability to fulfill the

purchase description requirements;

b) to conduct discussions for the purposes of facilitating understanding of the technical

offer and purchase description requirements and, where appropriate, obtain

supplemental information, permit amendments of technical offers, or amend the

purchase description;

c) to accomplish Subsections R4.12.030.19.2(a) and R4.12.030.19.2(b) of this Section

prior to soliciting priced bids; and

d) to award the contract to the lowest responsive and responsible bidder in accordance

with the competitive sealed bidding procedures.

TIP: elect to use this method when you want to consider price as your primary criteria, but only for qualified firms. Section 7.04 Source Selection—Competitive Sealed Proposals Competitive sealed proposal (CSP) is a process used to purchase goods and services when the purchasing agent determines that the use of competitive sealed bidding is either not practicable or not advantageous to Metro. The key element in determining advantageousness is the need for flexibility. The competitive sealed proposals method differs from competitive sealed bidding in two important ways:

a) it permits discussions with competing offerors and changes in their proposals including

price; and

b) it allows comparative judgmental evaluations to be made when selecting among

acceptable proposals for award of the contract.

The most common CSP method is a request for proposal (RFP). RFPs are competitively solicited for a minimum of fourteen (14) calendar days. Pre-proposal conferences may be conducted to explain the procurement requirements. Proposals remain sealed until the time and date indicated in the initial solicitation, when they are opened only to the evaluation team. RFPs are evaluated on the factors stated in the solicitation, which generally include:

• Team experience

• Approach

• Firm experience

• Cost

RFPs are awarded to the bidder deemed most advantageous based upon the factors set forth in the solicitation.

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TIP: elect to use this method when you need a professional, consulting, artistic, or construction service that requires varying degrees of experience or expertise. Section 7.05 Source Selection—Small Purchases A small purchase is the process used to purchase goods and less than $1,000 in value. If Metro has an existing contract for the good or service needed, then the small purchase should be procured under such agreements in accordance with the terms of such contracts. If Metro does not have an existing contract for the good or service needed, then written quotes should be solicited for the small purchase as follows:

• $0-399.99→a minimum of one (1) quote should be solicited;

• $400-$1,000→a minimum of three (3) quotes should be solicited.

Written documentation of any solicited quotes should be retained by the department/agency and reported monthly to the Division of Purchases. No requirements may be split to keep the value of goods or services between $400 or $1,000. TIP: generally, small purchases are made under delegated purchasing authority. Therefore the responsibility for soliciting quotes lies with the requesting department or agency. Section 7.06 Source Selection—Sole Source Sole source is the process used to purchase goods and services with specifications only available from a single supplier. The determination as to whether a sole source is appropriate can only be made by the purchasing agent. A department or agency wishing to use this method must make the request in writing with adequate and detailed justification. Adequate justification for a sole source, which should accompany a department or agency request, may include:

• Comparable department/agency

purchases

• Past contracts and purchase orders

• Project estimates

• Consultant’s estimates

No sole source contract for the purchase of goods or services, excluding contracts for economic development initiatives and services, with a total contract amount in excess of two hundred fifty thousand dollars may be entered into unless and until such contract has been approved by resolution duly adopted by the council. Excepting those items included in R4.12.060.05 of the procurement regulations, departments must maintain certain information relative to sole source procurements and

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report to the division of purchases by the 5th of each month. Details for what to include in this report may be found on the sole source request form. TIP: Request to use this method if you are a public utility service, need an item for testing or where compatibility of equipment is an issue. Section 7.07 Source Selection—Emergency Procurement Emergency procurement is the process used to purchase goods and services when there exists a threat to public health, welfare or safety under emergency conditions. Emergency procurements should first be attempted through normal purchasing procedures. If these are not practical, departments and agencies may utilize their delegated purchasing authority to secure necessary goods and services. Section 7.08 Source Selection—Professional Services (Non-A&E) Professional services, other than those for architecture and engineering, may be sourced at the discretion of the Purchasing Agent, provided that the Purchasing Agent will seek to obtain the maximum practical competition. Departments/agencies procuring non-architecture and engineering professional services should make the request to the purchasing agent or designee. The request should include a written proposed scope of work. Professional services contracts for financial services are, generally, reserved to the discretion of the director of finance. However, this does not include investment management services, for which the Purchasing Agent will make an award upon receiving recommendations from the investment committee. TIP: The Procurement Code specifies in 4.08.080 that contracts for Professional Services shall be awarded on the basis of recognized competence and integrity rather than on competitive sealed bids or just cost. Section 7.09 Source Selection—Professional Services (A&E) Departments/agencies procuring architectural and engineering services should make the request to the Purchasing Agent or designee. The request should include:

• A description of the project;

• The specific professional service(s) needed;

• Details of the project scope;

• Time frame for procuring the good or service.

Professional services relative to architecture and engineering are awarded by recommendation of the capital improvements architectural/engineering review board. Final recommendations from the review board, as well as associated contracts negotiated by the Purchasing Agent, will be presented to the Mayor for review, selection, and execution.

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TIP: The Procurement Code specifies in 4.08.080 that contracts for Professional Services shall be awarded on the basis of recognized competence and integrity rather than on competitive sealed bids or just cost.

Chapter Eight Specifications Regulation 4.16 Section 8.00 Specifications—General Guidance The purpose of a specification is to serve as a basis for obtaining a supply, service, or construction item adequate and suitable for Metro's needs in a cost-effective manner, taking into account, to the extent practicable, the costs of ownership and operation as well as initial acquisition costs. It is the policy of Metro that specifications permit maximum practicable competition consistent with this purpose. Specifications shall be drafted with the objective of clearly describing Metro's requirements. Generally, it is advisable that specifications be limited to function and performance, rather design and physical detail.

Ex: If procuring a dump truck, specifications should include cargo capacity and engine capability, not exterior aesthetics and color.

The exception to the above rule is construction projects relative to non-supply items. In these instances, it is acceptable to include both design and physical detail in specifications.

Ex: If procuring construction services for a new library building, specifications may include exterior elevations or requirements for other design elements.

To save both time and money, specifications should follow accepted commercial standards, when possible using commercially available products. Only in exceptional circumstances should a sole source or unique requirements exception be sought from the purchasing agent. While specifications may be prepared by non-Metro employees, they remain subject to the same rules and regulations as those prepared by the division of purchases or other Metro employees. TIP: Non-metro employees/vendors that prepare or help prepare specifications for a project are not permitted to participate in the resulting solicitation. For example, a firm that helped develop specifications for a new walking bridge would not then be able to participate in any solicitation for design, build, or other service on said walking bridge. MCL 4.16.070 Section 8.01 Specifications—Submission Generally, specifications are submitted to the division of purchases via a requisition. Requisitions are submitted electronically by the procuring department/agency via iProcurement. Departments/agencies should observe the following when submitting a requisition:

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• Include a complete and sufficient description of the good or service being

procured.

• Complete all required line items in the iProcurement system.

• Include the specific business unit to be charged.

• Include word descriptions, not just part or model numbers.

• Check, re-check, and verify associated address and telephone numbers.

• Take care to be specific, but not restrictive with specifications.

Goods or services that require competitive bidding (refer to chapter five) should also complete a solicitation request form, which may be found on the Inside Metro site. The division of purchases reserves the right to reject all requisitions deemed insufficient or improperly completed. The average purchasing cycle is 30 business days. This clock does not start until the division of purchases is in receipt of a sufficient and properly completed requisition. TIP: A common error found in requisitions is an improper commodity code. Always check to make sure you have entered the correct number. This causes confusion when iProcurement does not have all. Section 8.02 Specifications—Qualified Products List If it is necessary to test a supply or construction item prior to issuing a solicitation, a request may be made to the purchasing agent that a qualified products list be developed.

The request should contain requirements of the test/examination to be conducted for inclusion on the qualified products list.

The Purchasing Agent or designee will prepare the necessary test/examination for inclusion on the list and provide the draft to the requesting department/agency for comment. Upon final approval, the purchasing agent or designee will solicit a representative group of suppliers to submit their product(s) for testing and examination. Suppliers not solicited by the purchasing agent may also submit their products.

Section 8.03 Specifications—Common or General Use Specifications If a good or service is used repeatedly or by multiple departments/agencies, a request may be made to the Purchasing Agent that specifications for common or general use be established. The Purchasing Agent or designee will prepare the requested specifications and provide the draft to a reasonable number of potential offers. These suppliers will provide comment to the Purchasing Agent or designee, who will then give final approval.

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Section 8.04 Specifications—Brand Name or Equal Specifications The use of brand name or equal specifications for the purpose of describing the standard of quality, performance, and characteristics desired in a good or service may be appropriate if:

• Neither a specification for a common or general use or qualified products list

good or service is available.

• Time does not permit the preparation of another form of specifications.

In such an instance, a request may be submitted to the purchasing agent. Upon written approval, where practicable, the purchasing agent or designee will select a minimum of three brands for the specification.

Generally, unless the essential characteristics of the designated brands are commonly known in the trade or industry, a description of the particular design, functional, or performance characteristics should accompany the request to use brand name or equal specifications.

Section 8.05 Specifications—Brand Name Specifications The use of brand name specifications is inherently restrictive and should be used only when other methods are deemed impractical.

In such an instance, a request may be submitted to the purchasing agent, along with documentation explaining why only one brand or item is sufficient to meet the needs of the department/agency.

To achieve the maximum amount of competition, the purchasing agent or designee will solicit the designated brand name good or service from a sufficient number of sources. If only one source is available, the requesting department/agency will be advised to resubmit their request as a sole source.

Buyers and the heads of departments/agencies with delegated purchasing authority must submit monthly reports to the division of purchases relative to any brand name specifications made under said authority. This report should include:

• Brand name specifications used.

• Name and total number of suppliers solicited for each.

• Supplier awarded the contract.

• Contract price.

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Chapter Nine Contract Administration Section 9.00 Contract Administration—Overview Contract administration is the process by which procuring departments/agencies

maintain oversight to ensure that contractors perform in accordance with the terms,

conditions, and specifications of their contracts or purchase orders.

While the Division of Purchases may resolve disputes (further discussed in chapter

eleven) and provide general guidance, this function primarily belongs to procuring

departments/agencies.

Effective contract administration ensures compliance with contract requirements, provides easy access to contract information, and builds mutually beneficial relationships with vendors. To assist in this endeavor, the following section aims to provide guidance on the best

practices of contract administration for procuring departments/agencies.

Section 9.01 Contract Administration—Department/Agency Role Effective contract administration requires ongoing interaction between the procuring department/agency and the contractor. To that end, it is advisable for a contract management plan to be established prior to a contracts execution. Guidance on creating an effective contract management plan can be found at NASPO.

Chapter Ten Special Programs Section 10.00 Special Programs—Overview The Equal Business Opportunity (EBO) Program is a procurement based approach to increasing the opportunities for small, minority, and women-owned firms to do business with Metro. Approved in January of 2018, more information on the implementation of this ordinance is forthcoming and this manual will be updated accordingly. Section 10.00 Special Programs—Small and Service Disabled Veteran

Business Assistance Programs Metro operates a small (SBE) and service disabled veteran (SDV)-owned business program to help develop these enterprises and enhance their participation in public procurement activity. The Metro Code and regulations allow for two primary forms of assistance: 1) Goals or set-asides for purchases made by Metro.

2) Incentives included in solicitations issued by Metro.

For goals and set-asides of purchases, the procurement standards board annually sets a target for government purchases to come from SBE/SDVs. For goods and services where at least three SBE/SDVs are available, the Purchasing Agent will include a set-aside for SBE/SDVs.

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For incentives included in solicitations, the Purchasing Agent may use objectively measurable criteria to maximize the participation of SBE/SDVs. Such incentives may include discounts for offers submitted by SBE/SDVs. Specific information may be found in R4.44.020.04 of the procurement regulations.

Chapter Eleven Legal and Contractual Remedies Section 11.00 Legal and Contractual Remedies—Overview A supplier’s administrative rights are available through a process of protest and appeal. Any potential contractor may protest either a solicitation or an award on procedural grounds. The initial protest is made to the purchasing agent. An overview of the initial protest process can be found on the Department of Finance website. Any contractor or potential contractor believing a decision of the Purchasing Agent relative to the protest of a solicitation, an award, a suspension, or a debarment to be in error may make an appeal to the procurement appeals board. An overview of that process can be found on the Department of Finance website. Section 11.01 Legal and Contractual Remedies—Protest Procedure

(Solicitations and Awards) Any potential contractor wishing to initiate a protest may do so relative to a solicitation or an award:

1. Write a protest letter to the Purchasing Agent detailing the action, process,

specification, and/or ambiguity in dispute. The desired remedy to rectify the

claim at issue.

2. Deliver said protest letter to the Division of Purchases within ten (10) days of

the either the perceived impropriety or issuance of the award.

• The protest letter may be delivered via email

(michelle.lane@nashville.gov) or certified mail (Division of Purchases,

Attn: Purchasing Agent, Lindsley Hall, 730 Second Avenue South,

Suite 112, Nashville, TN 37210).

TIP: Protests are limited to procedural issues such as failure to comply with the solicitation process as outlined in the RFQ, the procurement regulations, or the Metro Code. Issues of broader concern, i.e.—should the solicitation be issued at all?—are outside the scope of the purchasing process. Section 11.02 Legal and Contractual Remedies—Protest Response

(Solicitations and Awards) Once the protest letter is received, the Purchasing Agent will review relevant documentation and consult, as necessary, with Division of Purchases, metro departmental and legal staff.

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Generally, the Division of Purchases will not proceed further with a solicitation or an award that is the subject of a protest letter. However, if a substantial interest exists which merits proceeding during pendency of a protest, the head of the procuring department/agency should consult with the purchasing agent, who may effectuate such a decision and notify the interested parties in writing. If it is ultimately determined that the protest cannot be resolved by mutual agreement, the purchasing agent will issue a written decision relative to the matters raised by the protest letter. A copy of the decision will be provided to the protestant with an addendum advising as to the right of appeal. Section 11.03 Legal and Contractual Remedies—Procurement Appeals

Board Any contractor or potential contractor wishing to appeal the decision of the Purchasing Agent relative to the protest of a solicitation or an award, a suspension, or a debarment may do so as follows via the procurement appeals board:

1. Prepare a notice of appeal that includes the following:

• Solicitation/award/suspension/debarment that is the subject of the

appeal.

• Identity of and contact information for the appellant.

• Legal counsel for the appellant (if applicable).

• Brief summary of why the decision is being appealed.

2. Attach a copy of any decision made by the purchasing agent relative to the

subject of the appeal.

• Make sure to the documentation includes the date of receipt for any

decision.

3. Deliver notice of appeal and attachments to the director of finance.

• Within seven (7) days of receipt of a decision for a solicitation or an

award.

• Within thirty (30) days of receipt of a decision for suspension or

debarment.

• The notice of appeal may be either hand delivered or sent via U.S. mail

(Department of Finance, Attn: Director of Finance, Metropolitan

Courthouse, One Public Square, Suite 106, Nashville, TN 37201).

4. Attend the procurement appeals board hearing.

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• Should the appellant fail to appear, good cause must be shown in

writing within ten (10) days to the director of finance via hand delivered

letter (insert address) or sent via U.S. mail (insert address)

More information concerning the appellate process may be found in the procurement appeals board rules of procedure. TIP: For appeals relative to solicitations and awards, the board will consider compliance with the constitution, relevant statutes, Metro Code, procurement regulations, and the terms and conditions outlined in the solicitation. For appeals relative to suspension or debarment, the board will consider fairness, compliance with the constitution, relevant statutes, Metro Code, procurement regulations, and the best interest of Metro. Issues of appeal in either case should be confined to the appropriate scope. Section 11.05 Legal and Contractual Remedies—Procurement Appeals

Board Procedures Once a timely filed notice of appeal is received, a notice of hearing will be sent to all interested parties with the date, time and location of the hearing. The hearing will be noticed and open to the public. The rules for the hearing are set by the procurement appeals board rules of procedure. Generally, both the purchasing agent and the appellant will be recognized twice for equal amounts of time; first for initial remarks and subsequently for rebuttal. Members of the board may ask questions of all those present. Three of the five members of the board are needed to make a determination on an appeal. Decisions will be issued in writing with copies provided to all interested parties. Section 11.06 Legal and Contractual Remedies—Dispute Resolution During the performance of a contract, it is possible that disagreements may arise between a contractor and a procuring department/agency. Generally, all parties should make a reasonable effort to informally resolve, among themselves, disputes in a timely, professional and non-adversarial manner. If a resolution is reached, an amendment—initiated by the procuring department/agency—should be executed to that effect. If a resolution cannot be reached between the contractor and the procuring department/agency, the department may then notify the Division of Purchases in writing explaining the issue(s), the steps taken for resolution, and providing supporting documentation.

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TIP: In an effort to limit any disputes, the procuring department/agency and the contractor should agree at the beginning of the contract period to evaluation criteria and regularly scheduled meetings for performance reviews.

Section Twelve Ethics and Code of Conduct Section 12.01 Ethics and Code of Conduct: Professional Standards As a condition of membership, the division of purchases adheres to the National Institute of Government Procurement (NIGP) Code of Ethics as the professional standard which governs the conduct of persons engaged in public sector procurement activity on behalf of the Metropolitan Government of Nashville and Davidson County. Section 12.02 Ethics and Code of Conduct: Employee Responsibility Employees engaged in procurement activity on behalf of Metro are advised as follows:

• Follow the lawful instructions, Executive Orders, and laws of Metro.

• Understand the authority granted by the Metro Code, procurement regulations.

• Avoid activities, which would compromise or give the perception of compromising the best interest of Metro.

• Reduce the potential for any charges of preferential treatment by actively promoting the concept of competition.

• Obtain the maximum benefit for funds spent as agents for Metro.

• Avoid any private or professional activity that would create a conflict between your personal interest and the interests Metro. If a conflict or potential conflict exists, disclose it immediately.

• Avoid using your position for personal benefit.

• Avoid the appearance of unethical or compromising practices in relationships, actions and communications.

• Avoid business relationships with personal friends and family.

• When holding business meetings with suppliers outside the office, the meeting location should be carefully chosen so as not to be perceived as inappropriate by other persons in the business community or your peers.

Section 12.05 Ethics and Code of Conduct Employees engaged in procurement activity on behalf of Metro should be familiar with Chapters 2.222 and 4.48 of the Metro Code.

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• Never solicit or accept cash or anything of value if it is in any way directly or indirectly related to the employee’s position.

• Never solicit gratuities in any form for yourself or Metro.

• Never accept meals, beverages, food, promotional items, or hand-produced items of value in excess of twenty-five dollars received from a single source in any calendar year.

Section 12.06 Ethics and Code of Conduct: Confidentiality and

Communication Regarding confidentiality and communication, individuals engaged in public sector procurement activity on behalf of Metro are advised as follows:

• During an active solicitation, communication between bidders and the procuring department/agency regarding the solicitation should be facilitated by the division of purchases.

• Refrain from discussion with those not part of the evaluation process, the number, identity, or any other information about the offeror(s) regarding or acquired during inspections, interviews, oral presentations, demonstrations, negotiations, and any exchanges pursuant to any procurement until such time as an award is issued by the division of purchases.

• Do not divulge, publish, reproduce, or reveal by word, conduct, or any other means any proposal or source selection information, except as necessary to perform your official duties related to any procurement as assigned by the purchasing agent or designee.

• Take all reasonable precautions to secure all proposals and source selection information you receive against unlawful disclosure and forward or refer all requests for information regarding any procurement or procurement activity to the purchasing agent or designee.

• To disclose the time, place, manner, content, and originator of any attempted communications concerning any active procurement to the purchasing agent or designee.

Section 12.05 Ethics and Code of Conduct—Suspension/Debarment The purchasing agent may suspend an individual from consideration for award of contracts for up to three months if there is probable cause for debarment. The purchasing agent may debar an individual from consideration for award of contracts for up to three years if, upon consultation with the department of law and the procuring

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department/agency, it is determined that one or more of the following situations has occurred:

• Conviction under criminal statutes associated with contracting.

• Conviction under antitrust statutes associated with the submission of bids or proposals.

• Conviction of any offense indicating a lack of business integrity or business honesty.

• Violation by the individual of contract provisions of a character.

• Violation by the individual of the ethical purchasing standards.

• Violation by the individual of the covenant of nondiscrimination.

• Any other cause determined to be in conflict with the integrity of the procurement process.