Department of Property and Procurement Division of Procurement Property & Procurement Economic Development Seminar Friday & Saturday, May 6 & 7, 2016

Presented By: Latisha Blyden, Deputy Commissioner of Procurement Lloyd Bough, Chief of Procurement & Contracts DPP - Slide 1

Topics of Discussion Division of Procurement Functions Requisitions and Purchase Orders Procurement of Contracts Flowchart Advertisements Invitation for Bid, Request for Proposal, Request for Qualification Evaluation Process Professional Service Contracting Construction Contracting Bonding Preferred Bidder Status Changes in the law Question & Answer DPP - Slide 2

Procurement Division Functions The Division of Procurement is responsible for:  Advertising of Bids  Processing of Requisitions/Purchase Orders  Evaluation of Bids and Proposals  Contract Administration  Construction Contract Payments processing DPP - Slide 3

Requisitions and Purchase Orders  Purchases under $5K requires one (1) quotation for the vendor of choice  Between $5K and $50K requires three (3) quotation and purchase be made from the best value  Quotes must include substantially equivalent line items  Certifying officer and/or authorized representative of the User Agency must print name, sign and approve the quotation that is being accepted DPP - Slide 4

Procurement of Contracts Flowchart DPP - Slide 5 Maintains and Updates Contract file based on documentation provided from user agency Evaluation Process User Agency requests Advertisement for IFB, RFP or RFQ Awarding of Contract Contract Execution User Agency Determines Need

Advertisements The initial step in the procurement process is the issuance of an advertisement pursuant to Title 31 Virgin Islands Code Section 235 and 236. There are three types of Advertisements that can be issued: 1. INVITATION FOR BIDS (IFB) 2. REQUEST FOR PROPOSALS (RFP) 3. REQUEST FOR QUALIFICATION (RFQ) DPP - Slide 6

Advertisements  Department (User Agency) submits a letter to the Department of Property and Procurement requesting formal advertisement of a project.  Advertised online at the VI Source, VI Consortium, and on Department of Property and Procurement website(  Advertisements are for a minimum of 15 calendar days when procuring services obtainable within the territory and not less than 30 calendar days when procuring services outside the territory. DPP - Slide 7

Invitation For Bids (IFB)  Invitation for Bids (IFB) is a request to provide goods at a certain price, quantity, and timeframe as specified.  IFBs are awarded to the lowest responsive and responsible bidder. In other words, Best Value.  Responsive Bid is a bid that conforms to the scope of work that was issued and advertised.  Responsible Bid is a bid that supplies all the information that is requested from the contractor such as business documents.  Theses bids are also opened publicly. DPP - Slide 8

Request For Proposal (RFP) Request for Proposal(RFP): is a solicitation in response to a scope of service that is desired or needed by the government, but does not specify in detail every aspect of how to accomplish or perform the required services. The Selection Criteria examples for an RFP are: 1. Professional Qualification, registration and general reputation of the principles of the firm or person. 2. The extent to which the firm or person specializes in or has designed projects of a type and scope similar to the hereunder. 3. Familiarity with the area in which the project is to be located. 4. Capability of meeting design schedules. 5. Quality of performance on similar other projects. Selection Criteria may change according to the User Agencies requirements. DPP - Slide 9

Request for Qualifications (RFQ)  Request for Qualifications are advertisements that request the bidder to submit their qualifications or specialized expertise in response to a scope of services that are needed but the government specifically is seeking an experienced and qualified vendor in the field. DPP - Slide 10

IFB v. RFP v. RFQ DPP - Slide 11 Invitation for Bids(IFB) - generally used for commodities (goods-supplies, furniture, equipment) and Construction projects.  Food Service Equipment  Construction  Furniture  School Supplies  Janitorial Services Request for Proposal (RFP) – RFP’s are generally used for Professional or Consulting services.  Consultant Services  Audit Services  Architectural & Engineering Services Request for Qualifications(RFQ) - RFQ’s are generally used to pre- qualify a pool of vendors for use on future projects.  Fine arts Consultants  Performing Art Consultants  Trade Contracting Services  Band and Sports Uniforms

Evaluation Process DPP - Slide 12 Evaluation Committee  No less than five (5) members.  Appointed by respective Commissioner or his/her designee.  Invitation For Bid Lowest Responsive and Responsible Bidder (Best Value)  Request For Proposal Two phase process: (1) Technical (2) Cost Negotiations.

Professional Service Contract Professional Service Contracts can be initiated through the RFP process or on the Open Market.  The RFP process is where the formal advertisement orders are issued pursuant to 31V.I.C §§ 235 and 236.  This process seeks a wide range of competition both locally and off island. Open Market purchase are enumerated in 31 V.I.C. §239.  These are commonly referred to as the exceptions, because you can procure certain goods and services on the open market without utilizing the competitive bidding process.  Traditionally, this is where an agency can negotiate competitively with a specific vendor based on the specificity of the procurement or the inability to achieve competition through formal advertisement. DPP - Slide 13

Professional Service Contract Continued  All professional service contracts are drafted by the agency seeking the services.  Request for payments on professional service contracts are submitted to the user agency and is the sole responsibility of that agency to effectuate payment.  Additionally, these services unlike a construction contract do not have the oversight of another agency, such as DPW; therefore, the onus is on the user agency to monitor that the services desired were received prior to payment. DPP - Slide 14

Construction Contracts  To initiate a construction project, the user agency must submit a letter to be advertised as an IFB, proof of funding, an engineer’s estimate and the scope of work.  All bid packages can be picked up at the Department of Property and Procurement 8201 Subbase, Suite 4 St. Thomas, VI Estate Richmond Christiansted, VI DPP - Slide 15

Construction Contract Continued  Construction Contracts are drafted by the Department and sent to the Contractors for execution.  Bonding is required on construction contracts $50K and over.  Construction Contract payments  All payment and change order requests are submitted by the Contractor to the User Agency for approval.  The User Agency submits the documents to the Department of Public Works as the government’s engineer for verification of the work performed. DPP - Slide 16

Construction Contract Continued  Department of Public Works. Public Works upon approval then submits the document to Property & Procurement for approval.  It is important to note that each agency with a construction project must commit to moving payment request or change order document in an expeditious manner. DPP - Slide 17

Bonding  Construction contracts require payment and performance bonds which provides a guarantee for the government.  If the contractor defaults the project can be completed by calling the performance bond to have the project completed by the bonding company through the selection of another contractor.  Or in the alternative, calling the payment bond to guarantee payment to complete the project when a default occurs.  A Letter of Credit is also accepted in lieu of a payment and performance bond. DPP - Slide 18

Preferred Bidder Status  The Preferred Bidder Statute provides local contractors that qualify under 31 V.I.C 236a with reduced bonding capacity.  An individual must be a bona fide resident of the U.S.V.I for eight (8) years or born in the Virgin Islands  To qualify as firm or corporation, 51% of the entity must be owned by a bona fide resident of the U.S.V.I for eight (8) years or born in the Virgin Islands  Preferred bidders are also encouraged to join the department’s preferred bidders mailing list for opportunities that may arise for specialized procurements. DPP - Slide 19

Changes in the Procurement Law  Bill No was approved to amend the open market purchases for agencies, departments and semi-autonomous agencies by increasing the spending limit to $50, provided that at least three quotations be sought from several vendors and the purchase be made from the best value.  Act No amends T31 V.I. C23 §236a and was approved in December The Preferred Bidders Act is now applicable to all government entities and the act also provides alternative methods of surety for performance bonds.  Governor Mapp Executive Order No available at DPP - Slide 20

Thank You Q&A DPP - Slide 21