procurement procedures manual...revision # description date 1.0 procurement procedures manual...

Procurement Procedures Manual

Washington Metropolitan Area Transit Authority

Date: August 2017 Version: 7.9

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PREFACE

This Procurement Procedures Manual (“PPM”) consolidates all Washington Metropolitan Area Transit Authority (“Authority” or “WMATA” or “Metro”) procurement procedures into a single volume. The PPM along with the Procurement Policy Statement adopted by the Authority’s Board of Directors (“Board”) and implementing procedures issued by the General Manager/Chief Executive Officer (“GM/CEO”) and Chief Procurement Officer (“CPRO”) are intended to function as a complete guide to the Authority’s procurement process for procurement staff and interested Authority personnel. The PPM is a supplement to sound business judgment in procurement and contracting.

The PPM is issued in accordance with Policy Instruction 8.4/5 which authorizes a Procurement Manual and Policy Instruction 1.1/0 which authorizes Departmental manuals to deal with matters affecting the entire Authority, but in areas of responsibility clearly within the authority of an Assistant General Manager or GMGR Staff Office Director.

CHANGES TO THE PROCUREMENT PROCEDURES MANUAL

Only the Board may make changes to the Authority’s Procurement Policy. Only the GM/CEO and/or CPRO may make changes to the implementing procedures. Changes in Federal and/or local laws, the Federal Transit Administration’s (“FTA”) Master Agreement, Circulars 4220.1 and 5010.1 or other governing regulations and best practices may require changes, corrections, or additions to this PPM. Other proposed changes, corrections, or additions to the PPM should be sent to the CPRO. The CPRO will assign or coordinate as necessary the proposed changes or additions with the appropriate individuals or offices. If substantive changes are made to this PPM resulting from any of the above referenced actions, the proposed changes will be submitted for review to Counsel (“COUN”), Office of the Inspector General (“OIG”), Safety (“SAFE”), and Authority Transit Police (“MTPD”) as appropriate.

A record of all changes to this PPM will be maintained in the Version History on the following page(s).

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VERSION HISTORY

Revision # Description Date 1.0 Procurement Procedures Manual Updated per Resolution 2011-30

Passed June 23, 2011 PPM revised to update procedures to match current practices.

December 2012

2.0 PPM revised to reflect changes in Revision 4 to Circular 4220.1F dated March 15, 2013 as follows:

1. Adequate Third Party Contract Provisions - Sections 3-10; 9-26; 10-5; and 12-6 were modified to require that the “Basis for Award” clause include a provision allowing for the right to request additional information or clarification from a bidder or proposer to resolve ambiguities in bids or proposal prior to award.

2. Record Keeping/Access to Records – Section 6-11 was modified to comply with record access requirements of 49 U.S.C. Section 5325(g) in contracts financed with Federal assistance.

3. System for Award Management – Section 15-10 and the definition of this system was changed to add information concerning how to access information from the web site.

4. Period of Performance and Rolling Stock Special Requirements – Section 3-9(b) was revised to add additional description concerning the change in the limit of rail rolling stock and replacement parts contracts from five to seven years.

5. Intelligent Transportation Systems – A new Section 6-8 was added to reflect these requirements.

6. State or Local Government Purchasing Schedules or Purchasing Contracts – Section 3-6(c) was revised to reflect the guidance that FTA only recognizes joint procurement s to be the only type of intergovernmental agreement suitable for use by grantees and subgrantees.

May 2013

3.0 PPM revised for Non-Competitive Contracts-Public Interest, Chapter 11-2(a)3

June 2013/August 2013

4.0 PPM revised for Advanced Procurement Planning-General, Chapter 3.3(a) and Cost or Price Analyses – Reserving Audit Rights, Chapter 16-1(a) and Audit Assistance, Chapter 16-11(a)

July 2013

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5.0 PPM updated per Board Resolution 2014-19 passed April 7, 2014. The resolution has modified and/or replaced portions of resolution 2011-30 as noted. in addition, sections

• 2.1 purpose and scope; • 2.3 controls and limitations; • 2.4 integrated procurement management; • 2.5 procurement procedures manual and annual training; • 2-9 organizational conflicts of interest; • 2-10 standards of conduct; • 2-16 procurement record and checklists; • 2-20 accountability standards; • 2-21 review of procurements by the office of general counsel; • 3-5 independent cost estimate; • 3-6 competition; • 3-7 procurement action: determination and findings; • 3-10 methods of procurement; • 3-15 stock replenishment procurement guidelines; • 4-12 indefinite-delivery contracts; • 4-13 indefinite-quantity and requirements contracts; • 6-3 contractor labor requirements; • 7-1 socioeconomic programs – purpose and scope; • 7-2 disadvantaged business enterprise requirements; • 7-3 small business and local preference program; • 8-6 non-competitive simplified acquisition procedures; • 8-9 documentation and records; • 9-31 contract file assembly and documentation; • 10-27 unsolicited proposals; • 10-30 contract file assembly and documentation; • 11-1 sole source and other less than full and open competition

procurements – purpose and scope; • 11-2 general; • 11-3 sole source procurement; • 11-4 sole source justification and approval; • 11-7 emergency justification and approval; • 11-9 contract file assembly and documentation • 11-10 federal supply schedules; • 12-16 contract file assembly and documentation; • 13-9 design-build turnkey; • 13-11 design-bid-build construction; • 13-13 specifications; • 13-22 contract file assembly and documentation; • 14-4 bid bonds or other security; • 18-6 contract execution by the authority; • 18-10 contract modifications; • 18-11 change order requirements; • 18-13 ordering procedures; • 19-2 claims and litigation actions – general; • 19-7 litigation actions; • 20-4 real property acquisitions; and • 20-9 assurance for use of real property

have been updated to reflect the requirements of Resolution 2014-19 and to be consistent with FTA requirements and updated procedures. Appendix A has been added to include procurement checklists.

August 2014

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Revision # Description Date

6.0 PPM revised to reflect changes in Revision 5 dated October 15, 2013 as follows:

• 2-15 contractor employee criminal background check • 2-16 procurement record and checklists; • 10-30 contract file assembly and documentation; • 11-9 contract file assembly and documentation; • 12-16 contract file assembly and documentation; • 13-22 contract file assembly and documentation; • 18-13 ordering procedures; • Appendix A Procurement Requirements Review Checklists

have been updated to reflect updated procedures in accordance with the

October 2014

7.0 PPM revised to reflect changes in Revision 6 dated July 2015 as follows: • 2-8A purpose • 2-8B scope • 2-8C definitions • 2-8D policies and procedures • 2-8E responsibility • 2-8F enforcement • 2-8G related policies, regulation & resolutions • 2-8H list of appendices, attachments or forms

o attachment A-Delegation of Authority to Ratify Unauthorized Procurements

o attachment B-Determination to Ratify Unauthorized Procurement Commitment

• 2-10 standards of conduct • 4-16 time-and-materials contracts • 7-2-6 solicitation requirements • 8-3 simplified acquisition threshold • 8-5 competitive simplified acquisition procedures • 8-6 non-competitive simplified acquisition procedures • 11-2 general • 11-6 competition exemptions • 18-11.1 changes clause in solicitations and contracts • 18-11.2 equitable adjustment negotiations • 18.11.3 change order process

o C-35A wmata form for work authorization o C-35B pending change order

July 2015

7.1 PPM revised to reflect changes in Revision 7.0 dated July 2015 as follows:

• Increases to WMATA micro-purchase threshold

December 2015

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Revision # Description Date 7.2 PPM revised to reflect changes in Revision 7.1 dated December 2015 as

follows:

• Chapter 1, Board Approval, Delegation & Reprogramming Requirements

• 2-4 Integrated Procurement Management • 2-8 Unauthorized Procurements • 2-8B Scope • Definitions • 5-5 Progress Payments • 9-23 (c) Cancellation of an Invitation for Bid After Opening • 11-4 (d) Justification and Approval • Appendix A

April 2016

7.3 PPM revised to reflect changes in Revision 7.2 dated April 2016 as follows:

• Replaced “Justification and Approval” with “Determination and Findings”

• 11-6 Competition Exemptions • 19-4 Contract Disputes • 19-5 Appeals to the ASBCA

October 2016

7.4 PPM revised to reflect changes in Revision 7.3 dated October 2016 as follows:

• Deleted paragraph 7-3-3(b) Small Business Participation in Simplified Acquisitions, “Contracts Above the Simplified Acquisition Threshold”

August 2017

7.5 PPM revised to reflect changes in Revision 7.4 dated August 2017 as follows:

• Section 7-1(b) Purpose and Scope • Section 7-2-1 Definitions • Section 7-2-3 Small Business Participation in the DBE Program

September 2018

7.6 PPM revised to reflect changes in Revision 7.5 dated September 2018 as follows:

• 19-4 Contract Disputes

September 2018

7.7 PPM revised to reflect changes in Revision 7.6 dated September 2018 as follows:

• 2-16 Procurement Record and Checklists • 5-4 Advance Payment • 10-25 Contract Award • 10-29 Design Build Selection Procedures • 18-12 Out of Scope Changes • 23-5 Incorporating Provisions and Clauses

September 2019

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7.8 PPM revised to reflect changes in Revision 7.7 dated September 2019 as follows: Removed the following references to Policy Instruction (P/I) 8.7 because the P/I has been rescinded:

• 2-16 Procurement Record and Checklists • 8-9 Documentation and Records • 9-29 (b) Contract Award • 9-31 (c) Contract File Assembly and Documentation • 10-30 (c) Contract File Assembly and Documentation • 11-10 (c) Contract File Assembly and Documentation • 12-16 (c) Contract File Assembly and Documentation • 13-22 (c) Contract File Assembly and Documentation • 18-3 (a) Contract Award Approval • 18-10 (f) Contract Modifications • 193 (b) FTA Authority Requirements • Appendix A

December 2019

7.9 PPM revised to reflect changes in Revision 7.8 dated December 2019 as follows:

• Removed the acquisition threshold limitation on DBE procurement actions at section 7-1

January 2020

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VALUES AND GUIDING PRINCIPLES OF AUTHORITY PROCUREMENT

Accountability Taking ownership and being responsible to the Authority and our customers for our actions is essential to preserve the public trust and protect the public interest.

• Apply sound business judgment; • Be knowledgeable of and abide by all applicable laws and regulations; • Be responsible stewards of Authority funds; • Maximize competition to the greatest extent practicable; • Promote effective, economic, and efficient acquisition; and • Use procurement strategies to optimize value to the Authority and our customers.

Ethics Acting in a manner true to these values is essential to preserve the public’s trust.

• Act and conduct business with honesty and integrity, avoiding even the appearance of impropriety; and

• Maintain consistency in all processes and actions. Impartiality Unbiased decision making and actions are essential to fairness.

• Be open, fair, impartial, and non-discriminatory in all procurements; and • Treat vendors equitably, and without imposing unnecessary constraints.

Professionalism Maintain high standards of job performance and ethical behavior.

• Continually contribute value to the organization; • Continually develop as a professional through education, mentorship, innovation and,

partnerships; and • Develop, support and promote the highest professional standards in all procurements.

Service Always seek to assist our customers.

• Be a resource and partner to our customers; • Develop and maintain relationships with customers; and • Maintain a customer service focus while meeting the needs of the Authority.

Transparency Policies and procedures that are accessible and understandable to demonstrate the responsible use of public funds.

• Be discrete in the release of confidential information; • Maintain current and complete policies, procedures and records; and • Provide timely access to procurement policies, procedures and records.

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CONTENTS PREFACE ......................................................................................................................................................... i

CHANGES TO THE PROCUREMENT PROCEDURES MANUAL .......................................................................... i

VERSION HISTORY ......................................................................................................................................... ii

VALUES AND GUIDING PRINCIPLES OF AUTHORITY PROCUREMENT ......................................................... vii

1 – BOARD APPROVAL, DELEGATION & REPROGRAMMING REQUIREMENTS ............................................. 1

2 – PROCUREMENT INTEGRITY AND CONTROL ............................................................................................ 4

2-1 PURPOSE AND SCOPE ......................................................................................................................... 4

2-2 REQUIREMENT OF GOOD FAITH ......................................................................................................... 4

2-3 CONTROLS AND LIMITATIONS ............................................................................................................ 5

2-4 INTEGRATED PROCUREMENT MANAGEMENT ................................................................................... 5

2-5 PROCUREMENT PROCEDURES MANUAL AND ANNUAL TRAINING .................................................... 7

2-6 AUTHORITY AND RESPONSIBILITIES OF CONTRACTING OFFICERS ..................................................... 8

2-7 DELEGATION AND REVOCATION OF CONTRACTING OFFICER AUTHORITY ........................................ 9

2-8 UNAUTHORIZED PROCUREMENTS .............................................................................................. 10

2-8A PURPOSE ..................................................................................................................................... 10

2-8B SCOPE .......................................................................................................................................... 10

2-8C DEFINITIONS ................................................................................................................................ 11

2-8D POLICIES AND PROCEDURES ....................................................................................................... 11

2-8E RESPONSIBILITY ........................................................................................................................... 12

2-8F ENFORCEMENT ........................................................................................................................... 13

2-8G RELATED POLICIES, REGULATIONS & RESOLUTIONS .................................................................. 14

2-8H LIST OF APPENDICES, ATTACHMENTS OR FORMS ...................................................................... 14

2-9 ORGANIZATIONAL CONFLICTS OF INTEREST ..................................................................................... 34

2-10 STANDARDS OF CONDUCT .............................................................................................................. 35

2-11 REPORTING OF SUSPECTED IMPROPER OR UNLAWFUL CONDUCT ............................................... 37

2-12 PROHIBITION AGAINST CONTINGENT FEES .................................................................................... 37

2-13 REVOLVING DOOR RESTRICTION .................................................................................................... 38

2-14 TECHNOLOGY PROCUREMENTS ...................................................................................................... 39

2-15 CONTRACTOR EMPLOYEE CRIMINAL BACKGROUND CHECK .......................................................... 39

2-16 PROCUREMENT RECORD AND CHECKLISTS .................................................................................... 41

2-17 ACCESS TO PEOPLESOFT PROCUREMENT APPLICATIONS .............................................................. 42

2-18 PLAN OF CONTRACTS ...................................................................................................................... 43

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2-19 MAINTAINING THE PLAN OF CONTRACTS DATABASE .................................................................... 45

2-20 ACCOUNTABILITY STANDARDS ....................................................................................................... 56

2-21 REVIEW OF PROCUREMENTS BY THE OFFICE OF GENERAL COUNSEL ....................................... 56

3 – PROCUREMENT PLANNING AND METHODS ......................................................................................... 59

3-1 PURPOSE AND SCOPE ....................................................................................................................... 59

3-2 RESPONSIBILITIES .............................................................................................................................. 59

3-3 ADVANCE PROCUREMENT PLANNING .............................................................................................. 59

3-4 SPECIFICATION, PURCHASE DESCRIPTION AND STATEMENT OF WORK .......................................... 60

3-5 INDEPENDENT COST ESTIMATE ........................................................................................................ 62

3-6 COMPETITION ................................................................................................................................... 63

3-7 PROCUREMENT ACTION: DETERMINATION AND FINDINGS (D&F) .................................................. 66

3-8 CONTRACT TYPES AND RISK .............................................................................................................. 67

3-9 ESTABLISHMENT OF CONTRACT TERM/PERIOD OF PERFORMANCE ................................................ 68

3-10 AUTHORIZED METHODS OF PROCUREMENT .................................................................................. 69

3-11 PUBLICIZING CONTRACT ACTIONS .................................................................................................. 69

3-12 ELECTRONIC COMMERCE ................................................................................................................ 70

3-13 CONTACTS WITH PROSPECTIVE CONTRACTORS ............................................................................. 71

3-14 PREQUALIFICATION CRITERIA ......................................................................................................... 71

3-15 STOCK REPLENISHMENT PROCUREMENT GUIDELINES .................................................................. 71

4 - TYPES OF CONTRACTS ............................................................................................................................ 73


4-2 GENERAL PROVISIONS ...................................................................................................................... 73

4-3 SELECTING CONTRACT TYPES ........................................................................................................... 73

4-4 FACTORS IN SELECTING CONTRACT TYPES ....................................................................................... 73

4-5 FIRM-FIXED-PRICE CONTRACTS ........................................................................................................ 74

4-6 FIXED-PRICE CONTRACTS WITH ECONOMIC PRICE ADJUSTMENTS .................................................. 74

4-7 FIXED-PRICE INCENTIVE CONTRACTS ................................................................................................ 75

4-8 COST-REIMBURSEMENT CONTRACTS ............................................................................................... 75

4-9 INCENTIVE CONTRACTS .................................................................................................................... 76

4-10 TYPES OF INCENTIVES ..................................................................................................................... 76

4-11 FIXED-PRICE INCENTIVE CONTRACTS .............................................................................................. 77

4-12 INDEFINITE-DELIVERY CONTRACTS ................................................................................................. 77

4-13 INDEFINITE-QUANTITY AND REQUIREMENTS CONTRACTS ............................................................ 78

4-14 DEFINITE-QUANTITY CONTRACTS ................................................................................................... 80

4-15 ORDERING ....................................................................................................................................... 80

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4-16 TIME-AND-MATERIALS CONTRACTS ............................................................................................... 80

4-17 LABOR-HOUR CONTRACTS .............................................................................................................. 81

4-18 LETTER CONTRACTS ........................................................................................................................ 82

4-19 REVENUE CONTRACTS .................................................................................................................... 83

4-20 MULTI-YEAR CONTRACTS ................................................................................................................ 83

4-21 USE OF OPTIONS ............................................................................................................................. 85

4-22 SOLICITATION OF CONTRACTS WITH OPTIONS .............................................................................. 86

4-23 EXERCISE OF OPTIONS .................................................................................................................... 86

5 - CONTRACT FINANCING, FUNDING AND PAYMENT ............................................................................... 88


5-2 PROVISION AND USES OF CONTRACT FINANCING ........................................................................... 88

5-3 CONTRACT FINANCING PAYMENT METHODS .................................................................................. 88

5-4 ADVANCE PAYMENT ......................................................................................................................... 89

5-5 PROGRESS PAYMENTS ...................................................................................................................... 89

5-6 PROGRESS PAYMENTS BASED ON A PERCENTAGE OR STAGE OF COMPLETION.............................. 90

5-7 CONSIDERATION FOR PROGRESS PAYMENTS ................................................................................... 91

5-8 SUPERVISION AND APPROVAL OF PROGRESS PAYMENTS................................................................ 91

5-9 REVIEW OR AUDIT OF PROGRESS PAYMENTS .................................................................................. 92

5-10 SUSPENSION OR REDUCTION OF PROGRESS PAYMENTS ............................................................... 92

5-11 PROTECTION OF AUTHORITY TITLE ................................................................................................. 92

5-12 RISK OF LOSS ................................................................................................................................... 93

5-13 PROGRESS PAYMENTS TO SUBCONTRACTORS ............................................................................... 93

5-14 CONTRACT DEBT DETERMINATION AND COLLECTION ................................................................... 93

5-15 DEMAND FOR PAYMENT OF CONTRACT DEBT ............................................................................... 93

5-16 NEGOTIATION OF REFUND TO RESOLVE CONTRACT ...................................................................... 94

5-17 TYPES OF FORM FOR REPAYMENT .................................................................................................. 94

5-18 DEFERRED PAYMENT AGREEMENTS ............................................................................................... 94

5-19 CONTRACT DEBT INTEREST CHARGES AND CREDITS ...................................................................... 95

5-20 CONTRACT FUNDING ...................................................................................................................... 95

5-21 LIMITATION OF COST OR FUNDS .................................................................................................... 95

5-22 ASSIGNMENT OF CONTRACT PAYMENTS BY CONTRACTORS ......................................................... 96

5-23 PROCEDURES FOR ASSIGNMENT OF CONTRACT PAYMENTS ......................................................... 96

5-24 AUTHORITY PAYMENT PROCESS ..................................................................................................... 97

6 - SPECIAL FEDERAL AND GRANTEE REQUIREMENTS ................................................................................ 98


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6-2 RESPONSIBILITY ................................................................................................................................. 98

6-3 CONTRACTOR LABOR REQUIREMENTS ............................................................................................. 98

6-4 LABOR SURPLUS .............................................................................................................................. 100

6-5 FEDERAL POLICIES FOR ELDERLY AND DISABLED ............................................................................ 100

6-6 FEDERAL FOREIGN TRADE REQUIREMENTS .................................................................................... 101

6-7 ENVIRONMENTAL AND CONSERVATION REQUIREMENTS ............................................................. 101

6-8 INTELLIGENT TRANSPORTATION SYSTEMS ..................................................................................... 102

6-9 RESTRICTION ON LOBBYING ........................................................................................................... 102

6-10 AUDITS OF ROLLING STOCK PURCHASES ...................................................................................... 103

6-11 PRIVACY ACT REGARDING FEDERAL RECORDS ............................................................................. 104

6-12 ADDITIONAL FEDERAL INTEGRITY PROVISIONS ............................................................................ 104

6-13 DRUG AND ALCOHOL TESTING ..................................................................................................... 104

6-14 FTA REQUIRED CLAUSES ............................................................................................................... 105

7 - SOCIOECONOMIC PROGRAMS ............................................................................................................. 106

7-1 PURPOSE AND SCOPE ..................................................................................................................... 106

7-2 DISADVANTAGED BUSINESS ENTERPRISE REQUIREMENTS ............................................................ 106

7-2-1 DEFINITIONS .................................................................................................................................... 106

7-2-2 DBE POLICIES ................................................................................................................................... 108

7-2-3 SMALL BUSINESS PARTICIPATION IN THE DBE PROGRAM .............................................................. 110

7-2-4 DBE GOAL-SETTING PROCEDURES ................................................................................................... 110

7-2-5 GOAL WAIVER/SUBSTITUTION PROCEDURES ................................................................................. 111

7-2-6 SOLICITATION REQUIREMENTS ....................................................................................................... 111

7-2-7 BID AND PROPOSAL REQUIREMENTS .............................................................................................. 113

7-2-8 CONTRACT ADMINISTRATION REQUIREMENTS .............................................................................. 114

7-2-9 DBE/SBE ACTIONS MONITORING STEPS BY DEPARTMENT ............................................................. 115

7-2-10 CONTRACT FILES ............................................................................................................................ 116

7-3 SMALL BUSINESS AND LOCAL PREFERENCE PROGRAM.................................................................. 117

7-3-1 DEFINITIONS .................................................................................................................................... 117

7-3-2 SMALL BUSINESS AND LOCAL PREFERENCE POLICY ........................................................................ 117

7-3-3 SMALL LOCAL BUSINESS PARTICIPATION IN SIMPLIFIED ACQUISITIONS ........................................ 117

7-3-4 MAXIMIZING SMALL LOCAL BUSINESS PARTICIPATION .................................................................. 117

7-3-5 EVALUATION REQUIREMENTS ......................................................................................................... 118

7-3-6 DOCUMENTATION ........................................................................................................................... 118

7-3-7 DATA COLLECTION AND REPORTING ............................................................................................... 118

8 - SIMPLIFIED ACQUISITION PROCEDURES .............................................................................................. 120

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8-2 SIMPLIFIED ACQUISITION AUTHORITY ............................................................................................ 120

8-3 SIMPLIFIED ACQUISITION THRESHOLD ........................................................................................... 120

8-4 USE OF SIMPLIFIED ACQUISITION PROCEDURES ............................................................................ 120

8-5 COMPETITIVE SIMPLIFIED ACQUISITIONS PROCEDURES ................................................................ 121

8-6 NON-COMPETITIVE SIMPLIFIED ACQUISITION PROCEDURES ......................................................... 122

8-7 EVALUATION OF QUOTATIONS OR OFFERS .................................................................................... 123

8-8 BASIS FOR AWARD .......................................................................................................................... 123

8-9 DOCUMENTATION AND RECORDS .................................................................................................. 124

8-10 SIMPLIFIED ACQUISITION METHODS ............................................................................................ 125

8-11 AUTHORITY PURCHASE CARD ....................................................................................................... 125

8-12 PURCHASE ORDERS ....................................................................................................................... 126

8-13 BLANKET PURCHASE AGREEMENTS .............................................................................................. 127

8-14 PETTY CASH FUND ......................................................................................................................... 128

9 – PROCUREMENT BY COMPETITIVE SEALED BIDDING ........................................................................... 129


9-2 INVITATION FOR BIDS ..................................................................................................................... 129

9-3 LIVING WAGE POLICY ...................................................................................................................... 130

9-4 IFB PREPARATION ........................................................................................................................... 130

9-5 BID PREPARATION INSTRUCTIONS .................................................................................................. 131

9-6 TIME FOR THE SUBMISSION OF BIDS .............................................................................................. 131

9-7 ELECTRONIC BIDS ............................................................................................................................ 131

9-8 BID SAMPLES ................................................................................................................................... 132

9-9 DESCRIPTIVE LITERATURE ............................................................................................................... 132

9-10 SOURCE LISTS ................................................................................................................................ 133

9-11 PUBLIC NOTICE .............................................................................................................................. 133

9-12 SOLICITATION RECORD ................................................................................................................. 133

9-13 PRE-BID CONFERENCES ................................................................................................................. 134

9-14 AMENDMENT OF INVITATIONS FOR BIDS..................................................................................... 134

9-15 CANCELLATION OF A BID PRIOR TO OPENING .............................................................................. 135

9-16 SUBMISSION OF BIDS: GENERAL PROVISIONS .............................................................................. 135

9-17 MODIFICATION OR WITHDRAWAL OF BIDS PRIOR TO OPENING ................................................. 136

9-18 LATE BIDS, LATE MODIFICATION, AND LATE WITHDRAWALS ...................................................... 136

9-19 NOTICE TO BIDDERS OF LATE ACTIONS ........................................................................................ 137

9-20 RECEIPT AND SAFEGUARDING OF BIDS ........................................................................................ 137

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9-21 BID OPENING................................................................................................................................. 138

9-22 POSTPONEMENT OF THE BID OPENING ....................................................................................... 138

9-23 CANCELLATION OF AN INVITATION FOR BIDS AFTER OPENING ................................................... 139

9-24 RECEIPT OF A SINGLE BID .............................................................................................................. 139

9-25 UNREADABLE ELECTRONIC BIDS ................................................................................................... 139

9-26 BID EVALUATION ........................................................................................................................... 140

9-27 BID MISTAKES ............................................................................................................................... 142

9-28 EXTENSION OF THE BID ACCEPTANCE PERIOD ............................................................................. 145

9-29 CONTRACT AWARD ....................................................................................................................... 146

9-30 TWO-STEP SEALED BIDDING ......................................................................................................... 146

9-31 CONTRACT FILE ASSEMBLY AND DOCUMENTATION .................................................................... 149

10 – PROCUREMENT BY COMPETITIVE PROPOSALS ................................................................................. 151

10-1 PURPOSE AND SCOPE ................................................................................................................... 151

10-2 AUTHORITY TO NEGOTIATE .......................................................................................................... 151

10-3 RESPONSIBILITIES .......................................................................................................................... 152

10-4 LIVING WAGE POLICY .................................................................................................................... 152

10-5 EVALUATION FACTORS ................................................................................................................. 152

10-6 SUBMITTAL REQUIREMENTS ........................................................................................................ 155

10-7 PRESOLICITATION NOTICES AND CONFERENCES .......................................................................... 156

10-8 REQUIREMENTS FOR REQUESTS FOR PROPOSALS ....................................................................... 156

10-9 PRE-PROPOSAL CONFERENCES ..................................................................................................... 157

10-10 AMENDMENT OF SOLICITATIONS ............................................................................................... 158

10-11 CANCELLATION OF A REQUEST FOR PROPOSALS ....................................................................... 158

10-12 RECEIPT, REGISTRATION AND DISCLOSURE OF PROPOSALS ...................................................... 159

10-13 MODIFICATION OR WITHDRAWAL OF PROPOSALS .................................................................... 159

10-14 LATE PROPOSALS, MODIFICATIONS AND WITHDRAWALS ......................................................... 159

10-15 HANDLING PROPOSALS AND INFORMATION ............................................................................. 160

10-16 ADEQUACY OF PROPOSALS......................................................................................................... 161

10-17 SOURCE SELECTION PROCESS ..................................................................................................... 161

10-18 COMPETITIVE RANGE .................................................................................................................. 162

10-19 CLARIFICATIONS WITH PROPOSERS ............................................................................................ 162

10-20 ORAL PRESENTATIONS ................................................................................................................ 162

10-21 PRE-DISCUSSION OBJECTIVES ..................................................................................................... 163

10-22 DISCUSSIONS ............................................................................................................................... 163

10-23 BEST AND FINAL OFFERS (“BAFOS”) ........................................................................................... 165

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10-24 SUMMARY DISCUSSION MEMORANDUM .................................................................................. 165

10-25 CONTRACT AWARD ..................................................................................................................... 166

10-26 DEBRIEFING ................................................................................................................................. 166

10-27 UNSOLICITED PROPOSALS .......................................................................................................... 167

10-28 EVALUATION OF UNSOLICITED PROPOSALS ............................................................................... 168

10-29 DESIGN BUILD SELECTION PROCEDURES .................................................................................... 168

10-30 CONTRACT FILE ASSEMBLY AND DOCUMENTATION .................................................................. 170

11 - SOLE SOURCE AND OTHER LESS THAN FULL AND OPEN COMPETITION PROCUREMENTS ............... 172


11-2 GENERAL ....................................................................................................................................... 172

11-3 SOLE SOURCE PROCUREMENT ...................................................................................................... 174

11-4 SOLE SOURCE DETERMINATION AND FINDINGS .......................................................................... 174

11-5 SOLE SOURCE PROCUREMENT PROCEDURES ............................................................................... 176

11-6 COMPETITION EXEMPTIONS ......................................................................................................... 176

11-7 EMERGENCY PROCUREMENTS...................................................................................................... 177

11-8 EMERGENCY DETERMINATION AND FINDINGS ............................................................................ 177

11-9 EMERGENCY PROCUREMENT PROCEDURES ................................................................................. 178


11-11 FEDERAL SUPPLY SCHEDULES ..................................................................................................... 180

11-11-1 ORDERING PROCEDURES FOR FEDERAL SUPPLY SCHEDULES ..................................................... 181

11-11-2 ORDERING SUPPLIES AND SERVICES NOT REQUIRING A STATEMENT OF WORK ....................... 181

11-11-3 ORDERING SERVICES REQUIRING A STATEMENT OF WORK ....................................................... 183

11-11-4 BLANKET PURCHASE AGREEMENTS (“BPA”) ............................................................................... 184

11-11-5 PRICE REDUCTIONS ...................................................................................................................... 185

11-11-6 SMALL LOCAL BUSINESS .............................................................................................................. 185

11-11-7 LIMITED SOURCES DETERMINATION AND FINDINGS .................................................................. 186

11-11-8 DOCUMENTING AWARD DECISION AND ORDERS ....................................................................... 187

11-11-9 ORDER PLACEMENT ..................................................................................................................... 187

11-11-10 INSPECTION AND ACCEPTANCE ................................................................................................. 188

11-11-11 REMEDIES FOR NONCONFORMANCE ........................................................................................ 189

11-11-12 TERMINATION FOR DEFAULT .................................................................................................... 189

11-11-13 TERMINATION FOR CONVENIENCE ........................................................................................... 190

11-11-14 DISPUTES ................................................................................................................................... 190

12 - ARCHITECT-ENGINEER AND RELATED SERVICES ................................................................................ 191


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12-2 DEFINITION ................................................................................................................................... 191

12-3 PUBLIC ANNOUNCEMENT ............................................................................................................. 191

12-4 COMPETITION ............................................................................................................................... 192

12-5 SELECTION CRITERIA OF FIRMS FOR A-E CONTRACTS .................................................................. 192

12-6 TECHNICAL EVALUATION TEAM (“TET”) ....................................................................................... 193

12-7 NEGOTIATIONS ............................................................................................................................. 194

12-8 ARCHITECT-ENGINEER SIMPLIFIED PROCEDURES......................................................................... 194

12-9 CONTRACTOR PERFORMANCE EVALUATIONS .............................................................................. 195

12-10 COST ESTIMATE FOR ARCHITECT-ENGINEER WORK ................................................................... 195

12-11 COST AND PRICE ANALYSIS ......................................................................................................... 196

12-12 RELEASE OF INFORMATION ON FIRM SELECTION ...................................................................... 196

12-13 ERRORS AND OMMISIONS INSURANCE ...................................................................................... 196

12-14 A-E CONTRACT REQUIREMENTS AND PROVISIONS .................................................................... 196

12-15 RETENTION OF A-E RECORDS ...................................................................................................... 197


13 - CONSTRUCTION CONTRACTS ............................................................................................................. 199


13-2 GENERAL POLICY ........................................................................................................................... 199

13-3 METHODS OF CONTRACTING ....................................................................................................... 199

13-4 CRITERIA FOR METHOD SELECTION .............................................................................................. 200

13-5 LEASE, BUY, OR BUILD ................................................................................................................... 200

13-6 GENERAL DESCRIPTIONS ............................................................................................................... 201

13-7 SINGLE PRIME CONTRACTOR ........................................................................................................ 202

13-8 MULTIPLE PRIME CONTRACTORS ................................................................................................. 202

13-9 DESIGN-BUILD TURNKEY ............................................................................................................... 203

13-10 CONSTRUCTION MANAGER ........................................................................................................ 204

13-11 DESIGN-BID-BUILD CONSTRUCTION ........................................................................................... 205

13-12 PHASED DESIGN AND CONSTRUCTION ....................................................................................... 205

13-13 SPECIFICATIONS .......................................................................................................................... 206

13-14 ESTIMATE OF CONSTRUCTION COSTS ........................................................................................ 206

13-15 DISCLOSURE OF MAGNITUDE OF CONSTRUCTION PROJECT ...................................................... 207

13-16 LIQUIDATED DAMAGES ............................................................................................................... 207

13-17 FIXED-PRICE CONSTRUCTION CONTRACTS ................................................................................. 207

13-18 CONSTRUCTION LABOR STANDARDS .......................................................................................... 208

13-19 LIVING WAGE POLICY .................................................................................................................. 209

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13-20 VALUE ENGINEERING .................................................................................................................. 210

13-21 TWO-PHASE DESIGN-BUILD SELECTION PROCEDURES ............................................................... 211


14 - BONDS, OTHER SECURITY AND INSURANCE ...................................................................................... 213


14-2 DEFINITIONS.................................................................................................................................. 213

14-3 GENERAL PROVISIONS .................................................................................................................. 214

14-4 BID BONDS OR OTHER SECURITY .................................................................................................. 214

14-5 PERFORMANCE AND PAYMENT BONDS ....................................................................................... 215

14-6 ACCEPTABLE TYPES OF SECURITY ................................................................................................. 216

14-7 SURETY BONDS AND OTHER SECURITY ......................................................................................... 217

14-8 SURETIES ....................................................................................................................................... 217

14-9 INSURANCE REQUIREMENTS ........................................................................................................ 218

15 - CONTRACTOR RESPONSIBILITY AND DEBARMENT ............................................................................ 219


15-2 RESPONSIBLE PROSPECTIVE CONTRACTORS ................................................................................ 219

15-3 SPECIAL STANDARD OF RESPONSIBILITY ...................................................................................... 219

15-4 APPLICATION OF WALSH-HEALEY ACT .......................................................................................... 220

15-5 APPLICATION OF OTHER RESPONSIBILITY STANDARDS ................................................................ 221

15-6 SUBCONTRACTOR RESPONSIBILITY .............................................................................................. 221

15-7 OBTAINING INFORMATION FOR DETERMINING RESPONSIBILITY ................................................ 222

15-8 DETERMINATIONS AND DOCUMENTATION ................................................................................. 222

15-9 PRE-AWARD SURVEYS ................................................................................................................... 223

15-10 LIST OF EXCLUDED PARTIES ........................................................................................................ 223

15-11 DEBARMENT AND SUSPENSION ................................................................................................. 223

15-12 DEBARMENT AND SUSPENSION DEFINITIONS ............................................................................ 224

15-13 EFFECT OF LISTING ...................................................................................................................... 225

15-14 CONTINUATION OF CURRENT CONTRACTS ................................................................................ 225

15-15 RESTRICTIONS ON SUBCONTRACTING ........................................................................................ 225

15-16 DEBARMENT ............................................................................................................................... 226

15-17 DEBARMENT PROCEDURES ......................................................................................................... 226

15-18 PERIOD OF DEBARMENT ............................................................................................................. 227

15-19 SCOPE OF DEBARMENT............................................................................................................... 228

15-20 SUSPENSION ............................................................................................................................... 228

15-21 SUSPENSION PROCEDURES ......................................................................................................... 229

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15-22 PERIOD OF SUSPENSION ............................................................................................................. 230

15-23 SCOPE OF SUSPENSION ............................................................................................................... 231

15-24 CERTIFICATION REGARDING DEBARMENT OR INELIGIBILITY ..................................................... 231

16 - COST AND PRICE ANALYSIS ................................................................................................................ 232


16-2 DEFINITIONS.................................................................................................................................. 233

16-3 PRICE ANALYSIS ............................................................................................................................. 233

16-4 COST ANALYSIS ............................................................................................................................. 236

16-4-1 COST REALISM ANALYSIS ............................................................................................................... 237

16-4-2 COST PROPOSALS .......................................................................................................................... 238

16-4-3 TECHNICAL ANALYSIS .................................................................................................................... 238

16-5 TOTAL COSTS ................................................................................................................................. 239

16-6 DETERMINING COST REASONABLENESS ....................................................................................... 239

16-7 DIRECT COSTS ............................................................................................................................... 239

16-8 INDIRECT COSTS ............................................................................................................................ 240

16-9 COST ANALYSIS TECHNIQUES ....................................................................................................... 241

16-10 PROFIT/FEE ................................................................................................................................. 243

16-10-1 WEIGHTED GUIDELINES FOR PROFIT MARGIN CALCULATIONS .................................................. 243

16-10-1-1 RISK FACTOR MATRIX ............................................................................................................... 243

16-10-2 DEGREE OF RISK ........................................................................................................................... 244

16-10-3 DEGREE OF DIFFICULTY OF THE WORK ....................................................................................... 245

16-10-4 MAGNITUDE OF THE WORK ........................................................................................................ 246

16-10-5 PERFORMANCE PERIOD ............................................................................................................... 246

16-10-6 CONTRACTOR’S INVESTMENT ..................................................................................................... 246

16-10-7 AUTHORITY ASSISTANCE ............................................................................................................. 246

16-10-8 AMOUNT OF SUBCONTRACTING ................................................................................................. 246

16-11 AUDIT ASSISTANCE ..................................................................................................................... 247

16-12 ANALYSIS TEMPLATES ................................................................................................................. 253

16-12-1 VERIFICATION OF LABOR BILLING RATES .................................................................................... 253

16-12-2 COST ANALYSIS FOR PROFESSIONAL LABOR RATES .................................................................... 253

16-12-3 COST ANALYSIS FOR MATERIAL OR EQUIPMENT ........................................................................ 254

16-12-4 SUBCONTRACTOR/SUBCONSULTANT COST ANALYSIS ................................................................ 254

16-12-5 OTHER DIRECT COSTS .................................................................................................................. 254

17 - PROTESTS ........................................................................................................................................... 255


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17-2 WRITTEN SUBMISSION ................................................................................................................. 255

17-3 TIME FOR FILING ........................................................................................................................... 256

17-4 AUTHORITY RESPONSE TO PROTESTS ........................................................................................... 256

17-5 AUTHORITY REVIEW OF PROTESTS ............................................................................................... 257

17-6 DECISIONS BY THE AUTHORITY ..................................................................................................... 257

17-7 REMEDY ........................................................................................................................................ 258

17-8 PROTESTS FILED WITH FTA ........................................................................................................... 258

17-9 AUTHORITY ADMINISTRATION OF PROTESTS ............................................................................... 258

17-10 NOTICE OF PROTEST POLICY REQUIREMENT .............................................................................. 259

18 - CONTRACT COMPLIANCE AND ADMINISTRATION............................................................................. 260


18-2 AUTHORITY AND RESPONSIBILITY ................................................................................................ 260

18-3 CONTRACT AWARD APPROVAL .................................................................................................... 260

18-4 PRE-AWARD ORIENTATION........................................................................................................... 261

18-5 POST-AWARD CONFERENCE ......................................................................................................... 261

18-6 CONTRACT EXECUTION BY THE AUTHORITY ................................................................................. 262

18-7 CONTRACT EXECUTION BY CONTRACTORS .................................................................................. 262

18-8 CONTRACT DISTRIBUTION ............................................................................................................ 263

18-9 AUTHORITY CONTRACT FILES ....................................................................................................... 263

18-10 CONTRACT MODIFICATIONS ....................................................................................................... 263

18-11 CHANGE ORDER REQUIREMENTS ............................................................................................... 265

18-11.1 CHANGES CLAUSE IN SOLICITATIONS AND CONTRACTS ......................................................... 265

18-11.2 EQUITABLE ADJUSTMENT NEGOTIATIONS .............................................................................. 265

18.11.3 CHANGE ORDER PROCESS ........................................................................................................ 266

18-12 OUT OF SCOPE CHANGES (“TAG-ON”) ........................................................................................ 267

18-13 ORDERING PROCEDURES ............................................................................................................ 268

18-14 SUSPENSION OF WORK/STOP ORDER ........................................................................................ 269

18-15 CONTRACT TERMINATION .......................................................................................................... 270

18-16 LIQUIDATED DAMAGES ............................................................................................................... 271

18-17 DELIVERY AND PERFORMANCE SCHEDULES ............................................................................... 271

18-18 CLOSEOUT OF CONTRACT FILES .................................................................................................. 272

18-19 CONTRACT CLOSEOUT TIME PERIODS ........................................................................................ 273

18-20 AUTHORITY PROPERTY................................................................................................................ 273

18-21 DELEGATION OF APPOINTMENT TO COTR/COR ......................................................................... 274

19 - CLAIMS AND LITIGATION ACTIONS .................................................................................................... 276

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19-2 GENERAL ....................................................................................................................................... 276

19-3 FTA AND AUTHORITY REQUIREMENTS ......................................................................................... 276

19-4 CONTRACT DISPUTES .................................................................................................................... 276

19-5 APPEALS TO THE ASBCA ................................................................................................................ 277

19-6 AUTHORITY CLAIMS AGAINST THE CONTRACTOR ........................................................................ 278

19-7 LITIGATION ACTIONS .................................................................................................................... 278

19-8 COST OR PRICE ANALYSIS.............................................................................................................. 278

20 - SPECIAL AGREEMENTS ....................................................................................................................... 279


20-2 MASTER AGREEMENTS ................................................................................................................. 279

20-3 MASTER AGREEMENT: WORK AUTHORIZATIONS AND INVOICES ................................................ 280

20-4 REAL PROPERTY ACQUISITIONS .................................................................................................... 280

20-5 REAL PROPERTY DISPOSAL ............................................................................................................ 281

20-6 PERMITS AND EASEMENTS ........................................................................................................... 281

20-7 BUS CHARTER SERVICE AGREEMENTS .......................................................................................... 281

20-8 OTHER CONTRACTS AND AGREEMENTS ....................................................................................... 282

20-9 ASSURANCE FOR USE OF REAL PROPERTY .................................................................................... 282

20-10 JOINT DEVELOPMENT PROCUREMENT REGULATIONS ............................................................... 282

21 - QUALITY ASSURANCE AND WARRANTIES .......................................................................................... 283


21-2 AUTHORITY RESPONSIBILITIES ...................................................................................................... 283

21-3 CONTRACTOR RESPONSIBILITIES .................................................................................................. 283

21-4 CONTRACT QUALITY REQUIREMENTS .......................................................................................... 284

21-5 TYPES OF CONTRACT QUALITY REQUIREMENTS .......................................................................... 284

21-6 QUALITY ASSURANCE REQUIREMENTS ......................................................................................... 285

21-7 CONTRACT QUALITY ASSURANCE AT SOURCE .............................................................................. 285

21-8 CONTRACT QUALITY ASSURANCE AT DESTINATION ..................................................................... 285

21-9 CONTRACT QUALITY ASSURANCE FOR SIMPLIFIED ACQUISITONS ............................................... 286

21-10 CONTRACT QUALITY ASSURANCE OF SUBCONTRACTS .............................................................. 286

21-11 NONCONFORMING SUPPLIES, SERVICES, OR CONSTRUCTION .................................................. 286

21-12 ACCEPTANCE ............................................................................................................................... 287

21-13 RESPONSIBILITY FOR ACCEPTANCE ............................................................................................. 287

21-14 PLACE OF ACCEPTANCE .............................................................................................................. 288

21-15 CERTIFICATION OF CONFORMANCE ........................................................................................... 288

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21-16 TRANSFER OF TITLE AND RISK OR LOSS ...................................................................................... 288

21-17 WARRANTIES............................................................................................................................... 289

22 - PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION ............................................................. 290


22-2 GENERAL PROVISIONS .................................................................................................................. 290

22-3 PATENT AND COPYRIGHT INFRINGEMENT ................................................................................... 290

22-4 INDEMNIFICATION ........................................................................................................................ 291

22-5 LICENSING AND ROYALTIES........................................................................................................... 291

22-6 PATENT RIGHTS UNDER AUTHORITY CONTRACTS ........................................................................ 294

22-7 PATENT RIGHTS ............................................................................................................................. 295

22-8 RIGHTS IN DATA AND COPYRIGHTS .............................................................................................. 295

22-9 PROPRIETARY OR CONFIDENTIAL DATA IN BIDS AND PROPOSALS .............................................. 296

22-10 PROVISIONS AND CLAUSES ......................................................................................................... 297

23 - PROCUREMENT FORMS AND PROVISIONS ........................................................................................ 298


23-2 RESPONSIBILITY ............................................................................................................................. 298

23-3 LIMITATIONS ................................................................................................................................. 298

23-4 PROVISIONS AND CLAUSES: NUMBERING SYSTEM ...................................................................... 298

23-5 INCORPORATING PROVISIONS AND CLAUSES .............................................................................. 298

23-6 IDENTIFICATION OF PROVISIONS AND CLAUSES .......................................................................... 299

23-7 MODIFYING AND COMPLETING PROVISIONS AND CLAUSES ........................................................ 299

23-8 FORMS: CURRENT EDITIONS AND NUMBERING SYSTEM ............................................................. 299

23-9 TYPES OF FORMS .......................................................................................................................... 299

23-10 DISTRIBUTION OF FORMS, CLAUSES, AND PROVISIONS ............................................................. 300

24 - DEFINITIONS ....................................................................................................................................... 301


24-2 DEFINITIONS.................................................................................................................................. 301

APPENDIX A ............................................................................................................................................... 317

APPENDIX B ............................................................................................................................................... 334

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Washington Metropolitan Area Transit Authority Board Approval, Delegation & Reprogramming Requirements

Adopted By the Authority Board of Directors September 24, 1992

Revised: July 24, 1997, September 27, 2007, June 25, 2009, July 16, 2009, June 23, 2011, April 7, 2014, November 19, 2015

________________________________________________________________________________

1 – BOARD APPROVAL, DELEGATION & REPROGRAMMING REQUIREMENTS

SECTION 100 – GENERAL 101. Purpose. This Chapter 1 sets forth the Policy guidance and requirements that will govern the

Washington Metropolitan Area Transit Authority (“Authority”) procurement activities, budget reprogramming activities, non-procurement activities, and conduct of personnel engaged in those activities. This chapter augments the Authority Compact, Section 73, as amended, which sets forth the general policy guidance and requirements that affect Authority procurements and approvals.

102. Procurement Regulations Background. The Authority’s Procurement Policy, as defined in

this Chapter 1, establishes the broad framework for its Procurement Regulations. The Regulations consist of the Procurement Policy approved by the Authority Board of Directors (“Board”), and procedures that are developed and issued by the Chief Procurement Officer (CPRO) and approved by the General Manager/Chief Executive Officer (GM/CEO).

103. Certification of Procurement System. The Authority Procurement System is fully certified

by the U.S. Department of Transportation (DOT), Federal Transit Administration (FTA), to carry out the Authority’s procurement functions, in accordance with federal guidelines and Authority policy. However, certain functions identified in DOT/FTA Circulars 4220.1F and 5010.1D, as amended, may require approval or concurrence by the FTA Administrator.

104. Reference to Statutes or Regulations. Reference in the Authority’s Procurement Policy to

any federal state, or local statute, regulation, or circular or other guidance, shall be deemed to include any revision, amendment, or replacement therein, effective after the date of the adoption of this Policy by the Board.

SECTION 200 – RESPONSIBILITY AND AUTHORITY 201. Responsibility. With respect to this Policy, the following responsibilities apply:

(a) Board of Directors. The Board is responsible for approving procurement policies; approving deviations from procurement policy; authorizing the GM/CEO to initiate, award and modify procurements consistent with the approved Authority operating and multi-year capital budgets; delegating contracting officer authority to the GM/CEO; authorizing the GM/CEO to delegate contracting officer authority and authority to approve procurement initiation and award activities to subordinate officials of the Authority.

(b) General Manager/Chief Executive Officer. The GM/CEO is delegated unlimited

contracting authority. The GM/CEO is authorized to initiate, award and modify procurements consistent with the approved Authority operating and multi-year capital budgets and is responsible for delegating contracting officer authority to qualified

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employees of the Authority and authorizing the re-delegation of authority to other qualified employees of the Authority; approving employee standards of conduct; approving Authority procurement and related policies and procedures that augment Board procurement policy’ approving, only as authorized by the Board or this Procurement Policy, the initiation of procurement actions and awarding contracts in emergency situations; and reporting sole source and emergency contracts to the Board. The GM/CEO is also responsible for establishing a system for the timely review and approval of procurement actions, establishing policies and procedures for special agreements, and implementing procurement policies and procedures.

(c) Chief Procurement Officer. The Chief Procurement Officer (CPRO) shall be a full

participatory member of the Executive Leadership Team. The CPRO, with approval by the GM/CEO, is responsible for developing and issuing procurement procedures to implement Board procurement policies; establishing a system to select, recommend, appoint, and delegate Contracting Officer authority; preparing quarterly reports for presentation by the GM/CEO to the Board; acting in appointed capacity as Contracting Officer. The Chief Procurement Officer may appoint authorized representatives for the purpose of assisting the Contracting Officers in providing technical guidance to the Contractor or otherwise assisting in the administration of the contract. In limited circumstances, authority representatives may be delegated restricted contracting authority.

(d) General Counsel. The General Counsel shall have responsibility for: providing legal

counsel regarding procurement matters within WMATA, including to the Chief Procurement Officer, contracting officers and others, involved in the procurement process; assigning a cognizant attorney in the Office of General Counsel (COUN) for each WMATA procurement; reviewing and approving procurement policies and procedures within WMATA, and ensuring they are consistent with all applicable laws and regulations and effectively fulfill the needs and purposes of WMATA; and ensuring appropriate legal review at all appropriate steps of a procurement. The General Counsel may delegate within COUN any or all of the foregoing authorities and responsibilities. At least one attorney within the Office of the General Counsel shall have experience in procurement of information technology products and services.

202. Delegation of Authority. On June 28, 1991, the GM/CEO delegated contracting officer

authority to the Director, Office of Procurement (subsequently designated as Chief Procurement Officer), and thereby separated procurement from other functional responsibilities.

203. General Manager/Chief Executive Officer Authority (Emergency Situations).

Notwithstanding the approval requirements in § 600 of this Procurement Policy, the GM/CEO has the authority to incur obligations in emergency situations, and will report back to the Board on all emergency procurements within 60 days of the action. “Emergency” is defined as a situation (such as a flood, epidemic, riot, equipment failure, or other reasons declared by the GM/CEO) that creates an immediate threat to the public health, welfare, or safety. The existence of an emergency condition creates an immediate need for supplies, services, or construction which cannot be met through normal procurement methods, and the lack of which would seriously threaten either the health or safety of any person, the preservation or protection of property, or the continuation of necessary Authority functions.

204. General Manager/Chief Executive Officer Authority (Special Agreements). The GM/CEO has the authority to develop policies and procedures for special agreements which include but are not limited to: utility contracts, marketing agreements, employee benefits contracts, contracts for the purchase, sale or lease of real property, and insurance contracts.

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SECTION 300 – COMPETITION REQUIRMENTS 301. Commitment to Full and Open Competition. WMATA shall conduct procurements using full

and open competition consistent with the standards set forth herein and in applicable statutes and regulations. WMATA shall take into account and give effect to competition requirements that are contained in any statute, regulation or guidance that applies to grant funds used in the procurement - including but not limited to the following, as applicable:

(a) Section 73 of the WMATA Compact;

(b) Federal Transit Administration (“FTA”) enabling legislation, 49 U.S.C. § 5325(a) (FTA grant recipients to conduct all procurements financed under 49 U.S.C. Chapter 53 in a manner that provides full and open competition);

(c) Common Grant Rule (49 C.F.R. § 18.1 et seq.); (d) FTA Circular 4220.1 (as may be am3ended and revised by the FTA); (e) American Reinvestment and Recovery Act, Pub. L. 111-5 (Feb. 17, 2009) (“ARRA”)

(“To the maximum extent possible, contract awarded under this Act shall be awarded…through the use of competitive procedures.”)

In conducting procurements that use non-federal funds, WMATA shall use procedures pertaining to full and open competition (and pertaining to restrictions on procurements not using full and open competition or excluding sources) that are consistent with competition procedures used in procurements using federal funds. WMATA’s procedures for procurements using non-federal funds also shall provide, as authorized by the Compact, for WMATA to: (i) made purchases using state and local sources; and (ii) make purchases using the GSA schedule.

302. Restrictions on Procurements Not Using Full and Open Competition or Excluding Sources. Under certain circumstances, it may be appropriate to conduct a procurement using: (a) full and open competition after exclusion of sources; or (b) other than full and open competition. Procurements not using full and open competition will be reported to the Board on a quarterly basis. Such approaches may be used only after written approval of both the General Counsel and the Chief Procurement Officer of an appropriate Determination and Findings (“D&F”) – who shall approve such approaches only upon a determination that the procurement cannot reasonably be accomplished using full and open competition without exclusion of sources. WMATA procurement personnel and counsel shall comply strictly with WMATA restrictions and, to the extent applicable, federal restrictions on procurements conducted not using full and open competition or excluding sources.

303. Prohibition Against Organizational Conflicts of Interest. WMATA shall analyze each

planned acquisition in order to identify and evaluate potential organizational conflicts of interest as early in the acquisition process as possible, and avoid, neutralize, or mitigate potential conflicts before contract award. In any instance in which WMATA first becomes aware of an organizational conflict of interest after contract award, it shall conduct a review to determine whether the organizational conflict of interest was reasonably foreseeable and should have been identified by the contractor prior to ward. In an instance where WMATA first becomes aware of an organizational conflict of interest after award, the Chief Procurement Officer may in his/her discretion terminate the contract or if reasonable possible, take appropriate steps to avoid, neutralize or mitigate such organizational conflict of interest.

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(a) Definition. An “organizational conflict of interest” means that because of other activities

or relationships with other persons, a person is unable or potentially unable to render impartial assistance or advice to WMATA, or the person‘s objectivity in performing the contract work is or might be otherwise impaired, or a person has an unfair competitive advantage. An organizational conflict of interest occurs when any of the following circumstances arise:

i. Lack of Impartiality or Impaired Objectivity. When the contractor is unable, or

potentially unable, to provide impartial and objective assistance or advice to the recipient due to other activities, relationships, contracts, or circumstances. Such an OCI would occur, for example, if the service the contractor is to perform under a contract with WMATA might involve that contractor in evaluating its own performance or the performance of an affiliate under another WMATA contract.

ii. Unequal Access to Information. The contractor has an unfair competitive

advantage through obtaining access to nonpublic information during the performance of an earlier contract. Such an OCI would occur, for example, if the contractor’s service under a prior contractor gave it access to non-public, proprietary information of a company competing with it for a subsequent contract. It merits note that relevant case law makes clear that no unfair competitive advantage is created by an offeror’s prior performance of particular requirement. WMATA is under no obligation to equalize other offerors with an incumbent by providing information in the hands of the incumbent due to prior performance of the requirement.

iii. Biased Ground Rules. During the conduct of an earlier procurement, the

contractor has establi

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