Procurement Policy Manual

Invitation for Bids (IFB)

is a solicitation method used when discussions with bidders are not required (mainly when the specifications of a product or service are already known) and when price is the main or only factor in selecting the successful bidder. This is a sealed bid process.

Purpose of the blanket authority

is granted for use within the established monetary limits when the use of such blanket authorities will reduce administrative expenses associated with small purchases and more effectively meet LADWP needs without impairing cost-effective purchasing practices.

Blanket Authorities (Blankets) are issued by

the Director of Supply Chain Services (SCS) under Board Resolution No. 236, adopted April 12, 1984. Each authority is a Purchase Order issued to Business Unit Managers upon which they or their designees may issue subpurchase orders (SPO) for miscellaneous repairs, repair parts for equipment, and miscellaneous supplies not carried in inventory, or not on a current price and time contract.

RFP Solicitation Process: REQUESTOR:

1. "Creates a requisition in the electronic-Request-Solicit-Procure (eRSP) system and forwards requisition to appropriate management for approval prior to submission to SCS. Requisition must include completed forms SCS 101, SCS 102 , Contract Insurance Requirements nsurance requirements, NOC or a copy of the Request for NOC submitted to Labor Relations 2. Obtains final NOC Completes and submits FSO Review and Analysis Form for Contracts over $5 Million to FSO for approval before RFP advertisement 3. Signs Approval to Advertise (SCS Form 103) following quality assurance review of draft RFP that attests to the inclusion of a clear, accurate and complete scope of services or statement of work 4. Participates in pre-proposal meeting to give a project overview and answer any questions related to the scope of services 5. Responds to proposers' questions forwarded by Buyer in a thorough and timely manner

RFP Evaluation Process

1. Attends mandatory pre-evaluation committee meeting with all evaluation committee members to sign Confidentiality and Conflict of Interest forms, receive Request for Proposal (RFP) Evaluation Process - Instructions, and receive proposal copies. 2. Participates in evaluation of proposals and provides detailed comments for each score provided. 3. Prepares evaluation score summary and submits individual score sheets and summary score sheet to Buyer for review. Determines if interviews will be necessary, and coordinates scheduling with the Buyer. 4. If interviews or BAFO are required, finalize evaluation score summary and individual score sheets for review by the Buyer. 5. "Prepares recommendation of award and submits to the Director of Supply Chain Services.

How to Create a NEW Personal Purchase Order (PPO)

1. Complete the Request for 46900 Series Blanket Authority for Personal Purchase Order. Click here for the PPO template. 2. Submit the request for all necessary approvals including General Manager's. If the requester inherits the duties and responsibilities of his predecessor who was assigned a PPO at the same dollar limit and for the same purposes, only the AGM's approval is required. Please include the predecessor's name and previous PPO number on the new request. 3. Send the approved request to Director of Supply Chain Services. 4. Director of Supply Chain Services approves the request and forwards it to Price and Time (P&T) Manager. 5. P&T Manager assigns the request to Buyer. 6. P&T Buyer processes the request for typing. 7. P&T Buyer reviews the Personal Purchase Order (PPO). 8. P&T Buyer signs or submits the PPO for appropriate signatures. 9. PPO is returned to clerical support for distribution. 10. Copy of PPO will be sent to Accounts Payable, Requestor's organization, and Purchasing File.

How to Change or Cancel Personal Purchase Orders

1. Complete the Request for 46900 Series Blanket Authority. Click 46900 here for template. 2. Submit the Request for all necessary approvals including General Manager. 3. Send the approved request to Director of Supply Chain Services. 4. Director of Supply Chain Services approves the request and forwards it to Price and Time (P&T) Manager. 5. P&T Manager assigns the request to Buyer. 6. P&T Buyer processes the request for typing. 7. P&T Buyer reviews the Purchase Order Adjustment (POA). 8. P&T Buyer signs or submits the POA for appropriate signatures. 9. POA is returned to clerical support for distribution. 10. Copy of POA will be sent to Accounts Payable, Requestor's organization, and Purchasing File.

How to Purchase with an Existing Blanket PO

1. Determine need for purchase using balnket authority upon receipt of Request for Materials/Services a. Verify item/service is not covered by contract b. Verify item is not available from existing stock c. Determine if purchase will exceed $500 2. Develop list of Bidders and Obtain Bids a. Obtain Bid Recap Worksheet and Request for Bids templates b. Review user recommended bidders, if any c. Review Certified Small, Local Businesses list d. List potential bidders on Bid Recap Worksheet e. Obtain and record at least three bids f. Communicate any special condition at time of contact with each bidder such as required delivery date 3. Evaluate Bids a. Evaluate bids using applicable considerations, including but not limited to: Responsiveness, i.e. complete bid Price per item (Be aware of unit of measure) Total price for all items bid Cash discount at or more than LADWP standard days (currently 25) Certified Small, Local Business preference Sole source (verified, approved, and documented) Delivery charge b. Determine lowest, responsible, responsive bidder and prepare documentation, including: Vendor name Vendor Code Number Contact person (who provided quote) Designate phone, fax or email bid Discount payment terms, if any F.O.B. destination point Delivery charge, if any Prices quoted per item Quantity Delivery date c. Any award away from lowest bidder must be justified and documented 4. Award Bids a. Notify awardee b. Notify user c. Prepare Sub-Purchase Order (SPO) d. Finalize the Bid Recap Worksheet including the SPO number and Vendor Business Tax Registration Certificate Number or Vendor Registration Number 5. Documentation a. Attach all pertinent documentation to the SPO b. Notify user c. Retain all documentation in accordance with the Records Retention Schedule

RFP Award Process

1. Prepares Memorandum of Negotiation (SCS Form 106) signed by the Contract Administrator and vendor. 2. Prepares draft Board Letter for submittal to the Board of Commissioners, or recommendation of award letter for submittal to the SCS Director for contracts under $150k. 3. Completes and submits FSO Review and Analysis Form for Contracts over $5 Million to FSO for approval before Board package is finalized for GM Board Agenda Review. 4. In the case where City Council approval is required, coordinates with the Department's City Council liaison to obtain a City Administrative Officer (CAO) Report after the Board Letter is finalized and before being scheduled for a GM Board Agenda Review meeting. The CAO Report must be attached to the Board Letter when City Council approval is required. 5. Coordinates with System Executive Office on scheduling the recommendation of award on a GM Board Agenda Review meeting agenda. 6. Compiles the final Board package for System Executive Office in preparation of GM Board Agenda Review.

The following guidelines are to be observed whenever using a blanket authority.

1. SPO order item descriptions shall be described in such a way to enable Accounts Payable to match the SPO against invoices. 2. Vendor Code Identification and Business Tax Registration Certificate (BTRC) numbers are required and are to be shown on all orders. 3. All charges, including freight and taxes, shall be included in the individual SPO limit. (Do not include freight carrier's name on SPO.) When possible items should be ordered F.O.B. delivered. 4. Use of multiple orders to exceed individual limits is prohibited. Additionally, the $20,000 monthly limit of . 5. The blanket authority shall not be exceeded. 6. Items that are repetitively purchased on blanket authority orders should be brought to SCS Procurement attention for inclusion on price-and-time contracts. 7. Items on active price-and-time contracts must not be purchased on blanket authorities. 8. Blanket authorities cannot be used to purchase material that is maintained in an LADWP Store. 9. Blanket authorities cannot be used to purchase material that is maintained in an LADWP Store. 10. Purchases of safety items and hazardous materials shall comply with applicable Department safety and hazardous materials policy. 11. Boiled drinking water shall not be purchased under a blanket authority. (A price-and-time contract is available for laboratory or emergency purchases.) 12. Blanket authorities shall not be used in any manner to circumvent competitive bidding requirements or any LADWP or City purchasing policy. 13. It is the responsibility of each Business Unit to establish internal procedures for processing releases against blanket authorities, and to submit them to the Director of Corporate Purchasing for review and approval. Procedures shall include necessary steps to ensure receipt of goods, certification/certification of invoices, and method to review usage and compliance with policy and guidelines.

Guidelines on Using Store and Government Blanket Authorities

1. SPO order item descriptions shall be described in such a way to enable Accounts Payable to match the SPO against invoices. 2. Vendor Code Identification and Business Tax Registration Certificate (BTRC) numbers are required and are to be shown on all orders. 3. All charges, including freight and taxes, shall be included in the individual SPO limit. (Do not include freight carrier's name on SPO.) When possible items should be ordered F.O.B. delivered. 4. Use of multiple orders to exceed individual limits is prohibited. Additionally, the $20,000 monthly limit of the blanket authority shall not be exceeded. 5. Items that are repetitively purchased on blanket authority orders should be brought to Supply Chain Services's attention for inclusion on price-and-time contracts. 6. Items on active price-and-time contracts must not be purchased on blanket authorities. 7. Blanket authorities cannot be used to pruchase material that is maintained in an LADWP Store. 8. Computer hardware and software should be requisitioned from (Information Technology Services (ITS)), or through approval received from ITS for a purchase under a blanket authority. 9. Purchases of safety items and hazardous materials shall comply with applicable Department safety and hazardous materials policy. 10. Boiled drinking water shall not be purchased under a blanket authority. (A price-and-time contract is available for laboratory or emergency purhcases.) 11. Blanket authorities shall not be used in any manner to circumvent competitive bidding requirements or any LADWP or City purchasing policy. 12. It is the responsibility of each Business Unit to establish internal procedures for processing releases against blanket authorities, and to submit them to the Director of SCS for review and approval. Procedures shall include necessary steps to ensure receipt of goods, certification/certification of invoices, and method to review usage and compliance with policy and guidelines. 13. Blanket authorities shall be used to the fullest extent possible where practical and competitive to fullfill the goals and objectives fo LADWP's Women/Minority Business Enterprise and Small, Local Business Programs. 14. Except for the Stationery Stores Section, printing, stationery and office supplies shall not be purchased on blanket authorities. 15. No equipment is to be rented on blanket authorities.

Procedures for New Blanket Purchase Order (Blanket PO)

1. Submit an interdepartmental memo from System AGM to the Director of Supply Chain Services. 2. Supply Services Manager approves the request and forward it to the appropriate buying Manager. 3. Buying Manager assigned the request to Buyer. 4. Buyer processes the request. 5. Buyer reviews the blanket purchase order. 6. Buyer signs or submits the blanket PO for appropriate signatures. 7. Blanket PO is returned to clerical support for distribution. 8. Copy of Blanket PO will be sent to Accounts Payable, Requestor's organization, and Purchasing File.

How to Renew an Existing Personal Purchase Order

1. User will receive a Contract Renewal Notice (CRN) from Purchasing sometimes in February as a reminder along with the 46900 template. 2. Complete the Request for 46900 Series Blanket Authority. 3. Submit the Request for all necessary approvals including Assistant General Managers. All AGM renewal will no longer require GM approval. 4. Send the approved request to Director of Supply Chain Services. 5. Director of Supply Chain Services approves the request and forwards it to Price and Time (P&T) Manager. 6. P&T Manager assigns the request to Buyer. 7. P&T Buyer processes the request for typing. 8. P&T Buyer reviews the Personal Purchase Order (PPO). 9. P&T Buyer signs or submits the PPO for appropriate signatures. 10. PPO is returned to clerical support for distribution. 11. Copy of PPO will be sent to Accounts Payable, Requestor's organization, and Purchasing File. All renewals need to be submitted to Purchasing by May 30 to ensure timely processing of their replacements.

W/MBE Participation for Blanket Authorities

All Business Unit Managers shall encourage personnel to purchase from Women/Minority Business Enterprise (W/MBE), and Small Local Business suppliers when using blanket authorities. This increases the Department's W /MBE participation and enhances the local business economy.

Memberships and Sponsorships

All requests for memberships and sponsorships must be submitted in writing to the General Manager on a Membership or Sponsorship Request Form. Supply Chain Services will not process any requisitions for memberships or sponsorships without proper approval. Requests for memberships or sponsorships should be processed as a Sole Source Purchase. Memberships and Sponsorships All requests for memberships and sponsorships must be submitted in writing to the General Manager on a Membership or Sponsorship Request Form. Supply Chain Services will not process any requisitions for memberships or sponsorships without proper approval. Requests for memberships or sponsorships should be processed as a Sole Source Purchase. Supply Chain Services will process requisitions and contract renewal notices only for those memberships and sponsorship that have been approved. All future requests for memberships by a Business Unit, or the renewal of any membership must be approved pursuant to the above procedure.

1. How to Get Reimbursed Through a Personal Purchase Order

Any amounts being reimbursed under a manager's P.O. must be submitted directly to Dinah Jackson in Accounts Payable. 2. The Employee Expense Statement form must be completed, approved and submitted with all original receipts along with the online voucher form. The invoice number used in the online voucher will be ESXX-XX-XX. (X -date of expense statement). Note: The Employee Expense Statement form must be completed, approved and submitted with all original receipts along with the online voucher form. The invoice number used in the online voucher will be ESXX-XX-XX. (X -date of expense statement). 3. Amounts submitted for reimbursement under a Personal P.O. will reduce the amount available from the PPO for the remainder of the fiscal year. 4. The automated Expense Report, (ER) will not be used to reimburse employees for personal expenses through a manager's P.P.O. #. The Personal P.O. and automated ER have no relationship.

What is a Blanket Authority?

Blanket authorities are issued to department divisions, public utility companies, and government agencies, and employees for the purpose of making small purchases not practical to be processed through the regular purchasing process. They are generally known as the Store Blanket, Public Utility Blanket, Government Blanket, and Personal Blanket purchase order. Each of these blankets has its own designated series. Some blankets require the issuance of a sub-purchase order while others do not.

Preparing for a Sole/Single Source Procurement for a Materials or Non-Professional Service

Prior to preparing the requisition: a. Complete the GM Contract Information Sheet in its entirety and develop the sole source justification as described in the "Sole Source Documentation Guideline" attached. The Contract Administrator or Requester must sign the form. b. Have City Attorney in Legal Department to approve sole/single source justification (email approval is acceptable). c. Upload completed and signed GM Contract Information Sheet, sole/single source justification, and Attorney's approval of such to the requisition. d. Management will approve through the eRSP workflow.

Blanket Authorities (Blankets) purchase limits

Individual purchases may not exceed $1,000 with a ceiling of $20,000 per month per blanket. For any purchase of $500 or more, three oral or written quotations shall be obtained and documented in the purchase record.

What is a Personal Purchase Order (PPO)?

Personal Purchase Orders (PPO) are issued to DWP managers for reimbursement of all purchases made while conducting department business. Each transaction is limited to $500 with annual limit set by the appropriate authority. These need to be renewed at the end of each fiscal year and be approved by the appropriate authority.

RFP Preparing for a Sole/Single Source Procurement for Professional Services

Prior to preparing the requisition: a. Refer to the Request for Proposal Standard Operating Procedures, and become familiar with roles and responsibilities. Forms are also located on RFP Toolkit under Forms -S. b. Complete the SCS100 form-"Request for Approval to Solicit for Professional/Personal Services" in its entirety. Attach the Statement of Work and the Sole Source Justification to the SCS100 form. c. Have all required signatories sign SCS100 document in sections "B", "C", and "D" d. After appropriate Supply Chain Section signs SCS100 (Section D of form) attach a PDF of the signed SCS100 form to requisition. e. Management including GM will approve through eRSP workflow.

Government Blankets:

Some of these blanket purchase orders are issued to government agencies under this series for the purchase of controlling releases against the blanket. These blankets may have an annual dollar limit and are automatically renewed every fiscal year

Request for Proposal

The Request for Proposal (RFP) is a solicitation strategy used to obtain goods and services which include factors other than price and is composed of the description of the product or service, contract clauses, instructions for submitting proposals, and information about how the proposals will be evaluated. The RFP should be used when purchases of non-standard items, technology applications, and complex services are required to meet the needs of the Los Angeles Department of Water and Power (Department). The competitive negotiation, or RFP process, involves the presentation of the Department's requirements and a request for the best solution for services, or services and equipment, from interested contractors. A successful RFP process will support the principles of fair, open and transparent procurement, satisfy the business requirements of the Department, and comply with applicable rules, laws and regulations.

Basis of Justification for Sole/Single Source

The circumstances permitting non- competitive procurements are described in LA Administrative Code 10.15 (a): (2) Contracts, as determined by the contracting authority, for the performance of professional, scientific, expert, technical, or other special services of a temporary and occasional character for which the contracting authority finds that competitive bidding is not practicable or advantageous. (3) Contracts for the furnishing of articles covered by letters patent granted by the government of the United States. (5) Contracts for repairs, alterations, work or improvements declared in writing by the contracting officer or board, or its designee, to be of urgent necessity for the preservation of life, health or property. The declaration shall give the reasons for the urgent necessity and must be approved by the Council or its designee. Approval may be conditioned upon compliance with one or more of the requirements of this section. (7) Contracts for equipment repairs or parts obtained from the manufacturer of the equipment (OEM) or its exclusive agent. (8) Contracts for cooperative arrangement with other governmental agencies for the utilization of the purchasing contracts and professional, scientific, expert or technical services contracts of those agencies and any implementing agreements, even though the contracts and implementing agreements were not entered into through a competitive bid process.

Guidelines for Using a Personal Purchase Order

The following guidelines are being established regarding when an employee can use a personal purchase order versus when an employee must have a purchase order from the Purchasing Division. Employees may generally use their personal purchase order for items which cost less than $500. Examples include the following: 1. Necessary and reasonable to efficiently conduct Department business. 2. Purchases that are impractical or not cost effective when processed through the Purchasing Division. 3. Emergency payments for services and materials which cannot be obtained from Stores in a timely manner or cannot be obtained on a purchase order without loss to the Department. 4. Reimbursement of travel and personal expenses authorized by an Attendance Authority (not by a Travel Authority). 5. Non-recurring mileage. 6. Reimbursements of Petty Cash funds in various Department locations. 7. Payment of meals for group meetings with Department employees and/or outside business guests. 8. Memberships in professional and civic organizations.

Store Blankets:

They are issued to various department divisions and users such as storekeepers. This authority to buy has been delegated to department users to make small purchases that are not in stock nor on contract. Each purchase is limited to $1,000 per transaction and $20,000 per month maximum. A sub-purchase order (SPO) is issued to the lowest bidder against this blanket authority. These blankets are renewed automatically at the end of each fiscal year.

Sole/Single Source Purchases

Under exceptional and limited circumstances, the competitive bidding requirement may be waived for procurement when the product or services sought is only availabe from one responsible supplier, as a sole source or single source. A sole source purchase is one where there is only one vendor capable of providing an item or service, due to unique expertise or the ownership of a proprietary system or approach, and therefore not possible to obtain competitive bids. A single source purchase is one where there are multiple sources of supply, but for specific reasons the item or service must be purchased from a specified vendor.

Utility Blankets

are issued utility companies, requiring automatic services furnished on existing installations, changes, disconnections, or new installations. This is also used as a vehicle to pay for other services rendered by utilities such as electricity, gas, phone, water, etc. Utility invoices are paid through the A/P Manual Voucher System. Please contact your Division's clerical group or your Accounts Payable (A/P) representative for more information. Some of these blanket purchase orders are issued to government agencies under this series for the purchase of controlling releases against the blanket. These blankets do not have dollar limit and are automatically renewed every fiscal year. To request for a new Utility Blanket, a memo is required from your AGM to the Director of Supply Chain Services