Header:
CODE OF RHODE ISLAND RULES
AGENCY 20. RHODE ISLAND TURNPIKE AND BRIDGE AUTHORITY
SUB-AGENCY 000. GENERAL
CHAPTER 001. PROCUREMENT RULES
Date:
08/31/2009
Document:
20 000 001 PROCUREMENT RULES
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SECTION 10 - EXCEPTIONS TO COMPETITIVE BIDDING REQUIREMENTS
10.1 AUTHORITY TO MAKE EXCEPTIONS TO THE REQUIREMENT FOR COMPETITION
In certain circumstances competitive bidding for purchases may not be the most cost-effective approach to procurement. The RITBA Purchasing Agent may, with the approval of the RITBA Executive Director, waive requirements for competitive sealed bidding in accordance with Section 37-2-54 of the General Laws of Rhode Island, including without limitation in the following circumstances:
10.1.1 Contractual services where no competition exists, such as telephone service, electrical energy, and other public utility services;
10.1.2 Where rates are fixed by law or ordinance;
10.1.3 All other commodities, equipment and services which, in the reasonable discretion of the RITBA Executive Director, are available from only one source;
10.1.4 Interests in real property;
provided, however, the RITBA Executive Director may require competitive bidding in any circumstances where he deems that competition may enhance RITBA's ability to attain cost savings.
10.2 GOODS OR SERVICES OBTAINED BY RITBA FROM A STATE AGENCY
Goods or services obtained by RITBA from a state agency, such as printing from Prison Industries or use of Central Service Accounts, shall be exempt from competition. However, internal service fund purchases shall be made in accordance with all policies and procedures for competitive procurements. NOTE: Purchases of services from state higher educational institutions are subject to competitive review and require the submission of Purchase Requisitions.
10.3 SMALL PURCHASES NOT EXCEEDING $ 250
Competitive bids shall not be required for purchase orders up to $ 250 in value if the prices are considered to be reasonable; however, RITBA officials shall be encouraged to obtain informal quotes.
10.3.1 Fair and Reasonable Price. It shall be the responsibility of RITBA personnel to exercise good judgment as to what is a fair and reasonable price.
10.3.2 Verification When Doubt as to Reasonableness. Specific action to verify the reasonableness of a price shall be taken when it is suspected that the price may not be reasonable, e.g., comparison to previous price paid or personal knowledge of the item involved.
10.3.3 Equitable Distribution. When practicable, an effort shall be made so that purchase orders up to $ 250 in value shall be distributed equitably among suppliers. Quotations should be solicited from the previous supplier and other bidders prior to placing a repeat order so as to ensure equitable distribution and enhance competition. Additional bidders should be different from previously unsuccessful bidders. When practicable, effort shall be made to solicit small disadvantaged minority or women-owned businesses.
10.3.4 Artificial Division of Larger Purchases Prohibited. Under no circumstance shall purchases exceeding $ 250 be artificially divided into component parts to circumvent the competitive process. Abuses of this limitation will be reported to the RITBA Executive Director who will hold the responsible party accountable for violations.
10.4 SOLE SOURCE
[37-2-21(a)] A contract may be awarded for a supply, service, or construction item without competition when the RITBA Executive Director determines, in writing, that there is only one source for the required supply, service, or construction item.
10.4.1 Delegation to Purchasing Agent. The RITBA Executive Director may delegate the authority for determination of sole source to the RITBA Purchasing Agent.
10.4.2 Sole Source Categories. Sole source categories may include:
10.4.2.1 items of a unique nature which are unavailable from other sources due to patents or proprietary processes;
10.4.2.2 books, maps, periodicals, and technical pamphlets, films, video and audio cassettes obtained from publishers;
10.4.2.3 certain computer software;
10.4.2.4 licenses - computer software, electronic transmittal;
10.4.2.5 specialized replacement/repair parts or expansion parts necessary to maintain the integrity of system or function, e.g. scientific research;
10.4.2.6 works of art for museum or public display;
10.4.2.7 specialized services for which there is only one documented accepted source, such as transactions involving unique professional services and/or educational institutions, e.g., visiting speakers or professors, and performing artists; repair/maintenance agreements with manufacturers;
10.4.2.8 advertisements, public notices in magazines, trade journals, newspapers, television;
NOTE: Purchase of advertising and public relations campaign services must be established through a competitive selection process.
10.4.3 Continuing Responsibility to Evaluate Market. This provision excepting sole source procurements from competitive bidding shall not be interpreted to reduce the responsibility of RITBA to evaluate the market continuously to research product alternatives and develop additional sources (distributors).
10.4.4 Alternative Distributors and Manufacturers. In attempting to achieve the goal of maximizing competition to the greatest extent possible, alternative distributors and manufacturers shall be pursued to sole source items by using compatible replacement parts as long as warranties are not affected by substitution.
10.4.5 Maintenance Contracts. Maintenance contracts based upon sole source determination shall be subject to the following:
10.4.5.1 Annual maintenance contracts in excess of $ 1,000 shall require approval by the RITBA Executive Director.
10.4.5.2 All multi-year contracts shall require approval by the RITBA Executive Director.
10.4.5.3 To achieve better pricing, when the total amount for all contracts with the same supplier exceeds one thousand dollars ($ 1,000), RITBA shall consolidate such requirements.
10.4.6 Nonprofit Providers. The RITBA Executive Director or his designee may, at his initiation or upon the review of a justified request and/or recommendation from the RITBA Executive Director, make a determination that a category of nonprofit providers constitutes sole source suppliers for certain types of service.
10.5 EMERGENCIES
[37-2-21(b)] Notwithstanding any other provision of the State Purchases Act or these procurement rules, the RITBA Executive Director may make or authorize others to make emergency procurements when there exists a threat to public health, welfare or safety under emergency conditions as defined in regulations; provided, that such emergency procurements shall be made with such competition as is practicable under the circumstances. A written determination of the basis for the emergency and for the selection of the contractor shall be included in the contract file.
10.5.1 Remedy or Repair Exceeding $ 250. In accordance with procedures established by the RITBA Purchasing Agent, authorized officials of RITBA shall be permitted to react quickly to critical situations when the cost for a remedy or repair is in excess of $ 250 and there is not sufficient time to undertake a public, formal, or informal bidding process.
10.5.2 What Constitutes an Emergency. An emergency shall mean a situation to which an urgent response is required. Immediate dangers to health and safety, threats to property and necessary functions, and failures of critical equipment constitute emergencies.
10.5.3 Inadequate Anticipation. Inadequate anticipation of need shall not be considered justification for "emergency" purchases.
10.5.4 Commitments Beyond Emergency. Commitments which extend beyond the immediate response to the emergency shall be prohibited, i.e., prevention of future problems by corrective measures other than the immediate restoration of function must be pursued through the competitive purchasing process.
10.5.5 State Emergency Response List. The State Office of Purchases shall establish, through competitive bidding, a list of emergency response vendors and shall make such list available to RITBA.
10.5.5.1 When possible, RITBA shall obtain services from a list of vendors selected by competitive process to provide specialized trade in emergencies.
10.5.5.2 If an emergency cannot be addressed by a designated vendor, the Office of Purchases shall assist in obtaining names and telephone numbers of responsible vendors.
10.5.6 Emergency Response Officer. Upon determination of the existence of an emergency, RITBA's designated emergency response officer shall consult with the RITBA Purchasing Agent before committing to a particular vendor. The RITBA Purchasing Agent shall maintain logs of all oral confirmations of authorization to proceed.
10.5.7 Emergency Outside of Business Hours. If the emergency occurs outside of business hours for the RITBA division of purchases, RITBA shall be authorized to proceed in accordance with the principles and policies of sound procurement practices outlined herein.
10.5.8 Documentation. All emergency purchases shall be documented in accordance with procedures established by the RITBA Purchasing Agent. RITBA shall maintain documentation for the emergency situation and response action in writing. All emergency documentation forms shall be signed by either the RITBA Executive Director or the designated emergency response official.
10.6 STANDARD OR ESTABLISHED CATALOGUE ITEMS
Standard or established catalogue items may be identified by the RITBA Executive Director as exceptions to competitive bidding. RITBA officials may submit requests and justification for Delegated Purchase Authority for the acquisition of such items to the RITBA Purchasing Agent, who shall recommend an appropriate course of action to the RITBA Executive Director.
10.7 EXPENDITURES WHICH ARE NOT PROCUREMENTS
10.7.1 Grants, Benefits, Entitlements, Subsidies and Reimbursements. Grants, benefits, entitlements, subsidies and reimbursements shall not be considered procurements. The following types of expenditures shall not be subject to the provisions of the State Purchases Act for competitive procurement:
10.7.1.1 Reimbursement to local governments.
10.7.1.2 Reimbursements of third parties for client-demand services shall be considered benefits for which competitive solicitation is not required.
10.7.1.3 Entitlements for specific recipients or categories of recipients as prescribed by legislative mandate (including federal programs).
10.7.1.4 Grants, subsidies, entitlements or benefits purchased on behalf of, or paid directly to, individuals.
10.7.1.5 Employee expenses, subsidies and benefits. Examples include but shall not be limited to:
(a) travel, meals, parking, mileage;
(b) allowances (e.g., tools, clothing) per union contract;
(c) fees - dues/membership, tuition costs, conference registration; and
(e) tests/examinations/certifications.
10.7.2 Responsibility of RITBA to Promote State Competition
10.7.2.1 RITBA may obtain services or provide programs on behalf of clients through grants to nonprofit or other entities; however, the purchase of services and programs for which recipients can be defined as suppliers/vendors shall be obtained by a request for proposal procedure to obtain the advantages of competition.
10.7.2.2 Nonprofit status shall not automatically exempt organizations from being subject to competitive purchasing principles.
10.7.3 Special Provisions for Grants
10.7.3.1 Grants in the form of subsidies or general assistance shall be administered by RITBA in accordance with legal mandates restricting or defining the use of such funds.
10.7.3.2 All grant transactions shall be approved in accordance with requirements established by the RITBA budget office.
10.7.3.3 Grants for the provision of programs, services, and facility improvements shall not be provided without agreements or contracts which:
10.7.3.3.1 specify the purpose for the grant;
10.7.3.3.2 specify method and terms of payment;
10.7.3.3.3 define service or product, if required;
10.7.3.3.4 outline any legal limitations on the funding;
10.7.3.3.5 set a time limit for distribution of funds;
10.7.3.3.6 require maintenance of records for a specified period of time;
10.7.3.3.7 provide for auditing; and
10.7.3.3.8 provide for termination of agreement/contract.
**Note: Only the section analyzed by the PHASYS team is included here as the entire regulation exceeded ~100 pages.
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