Procurement Policy - Chapter 3: §3-501 to §3-504

§3-501 Types of Contracts

Subject to the limitations of this Section, any type of contract which will promote the best interests of the County may be used; provided that the use of a cost-plus-a-percentage-of-cost contract is prohibited. A cost-reimbursement contract may be used only when a determination is made in writing by the Director of Procurement that such contract is likely to be less costly to the County than any other type or that it is impracticable to obtain the supplies, services, or construction required except under such a contract.

§3-503 Multi-Year Contracts

(1) Specified Period
Unless otherwise provided by law, a contract for supplies or services may be entered into for any period of time deemed to be in the best interests of the County provided the term of the contract and conditions of renewal or extension, if any, are included in the solicitation and funds are available for the first fiscal period at the time of contracting. Payment and performance obligations for succeeding fiscal periods shall be subject to the availability and appropriation of funds. If deemed to be in the best interests of the County, multi-year contracts may also be used for Sole Source Procurements (§3-205), Special Procurements (§3-207), and Other Noncompetitive Procurements (§3-208).

(2) Use
A multi-year contract is authorized when:

• (a) Estimated requirements cover the period of the contract and are reasonably firm and continuing; and
• (b) Such a contract will serve the best interests of the County by encouraging effective competition or otherwise promoting economies in County procurement to maximize value.

(3) Cancellation Due to Unavailability of Funds in Succeeding Fiscal Periods
When funds are not appropriated or otherwise made available to support continuation of performance in a subsequent fiscal period, the contract shall be cancelled and the contractor shall be reimbursed for the reasonable value of any non-recurring costs incurred but not amortized in the price of the supplies or services delivered under the contract. The cost of cancellation may be paid from any appropriations available for such purposes.

§3-504 Multiple Source Contracting

(1) Incremental Awards

• (a) General. An incremental award is an award of portions of a definite quantity requirement to more than one contractor. Each portion is for a definite quantity and the sum of the portions is the total definite quantity required. An incremental award may be used only when awards to more than one bidder or offeror for different amounts of the same item are necessary to obtain the total quantity or the required delivery.
• (b) Intent to Use. If an incremental award is anticipated prior to issuing a solicitation, the County shall reserve the right to make such an award and the criteria for award shall be stated in the solicitation.
• (c) Determination Required. The Procurement Staff shall make a written recommendation setting forth the reasons for a multiple award, which requires approval by the Director of Procurement and such approval shall be made a part of the procurement file.

(2) Multiple Awards

• (a) General. A multiple award is an award of an indefinite quantity contract for one or more similar supplies or services to more than one bidder or offeror when the County is obligated to order all of its actual requirements for the specified supplies or services from those contractors.
• (b) Limitations on Use. A multiple award may be made when an award to two or more bidders or offerors for similar products is necessary for adequate delivery, service, or product compatibility. Any multiple award shall be made in accordance with the provisions of §3-202 (Competitive Sealed Bidding), §3-203 (Competitive Sealed Proposals), §3-204 (Small Purchases), and §3-206 (Emergency Procurements), as applicable. Multiple awards shall not be made when a single award will meet the County’s needs without sacrifice of economy and/or service.
• (c) Contract and Solicitation Provisions. All eligible users of the contract shall be named in the solicitation, and it shall be mandatory that the actual requirements of such users that can be met under the contract be obtained in accordance with the contract, provided, that one or more of the following conditions exists:
• (i) the County shall reserve the right to take bids separately if a particular quantity requirement arises which exceeds an amount specified in the contract.
• (ii) the County shall reserve the right to take bids separately if the Director of Procurement determines that the supply or service available under the contract will not meet a nonrecurring special need of the County.
• (iii) the contract shall allow the County to procure supplies produced, or services performed, incidental to the County’s own programs, when such supplies or services satisfy the need.
• (d) Intent to Use. If a multiple award is anticipated prior to issuing a solicitation, the County shall reserve the right to make such an award and the criteria for award shall be stated in the solicitation.
• (e) Determination Required. The Procurement Staff shall make a written recommendation setting forth the reasons for a multiple award, which requires approval by the Director of Procurement and such approval shall be made a part of the procurement file.