Doing Business With Union Sanitary District The Materials Management Team (Purchasing and Stores) 1

Introduction The Purchasing Department is part of the Materials Management Team (MMT). MMT reports to the Business Services Group along with Information Management, Financial Internal Support and Organizational Support Teams. MMT members include: John Stiggins, Purchasing Agent Kathy Martin, Buyer II Audrey Villanueva, Office Assistant III Scott Martin, Storekeeper Paul Johnson, Stock Clerk 2

Goals To educate our suppliers and potential suppliers by outlining the District’s purchasing policies and procedures To explain how a Supplier may participate in the District’s business To make doing business with Union Sanitary District as clear and easy as possible for everyone involved 3

Union Sanitary District: Founded May 27, 1918 Serves the cities of Fremont, Newark and Union City for a total of 60.2 sq. mi. Maintains 777 miles of sewers Treats an average 30 million gallons of wastewater each day Currently employs 131 employees The FY09 Operating Budget = $25,245,523 4

Independent Special District Special Districts are voted into existence by the citizens they serve and are sanctioned under California law to perform specific local government functions within certain boundaries. 5 Who We Are

How to get started 6 Suppliers should go to Click on “doing business with USD”. Click on “Purchasing”.

Ethics It is the policy and practice of the Union Sanitary District to: Maintain the highest ethical standards consistent with professional public procurement practices; and Assure zero tolerance for unethical behavior in its dealings with providers of goods and services. 7

Ethics, Cont. Prospective suppliers are afforded equal opportunity to submit a quote, bid or proposal for goods and services needed by the District. Gifts, meals, event tickets, personal services, or any other gratuities cannot be accepted from suppliers. 8

How we handle solicitations A request to purchase an item or service comes to Purchasing from the District’s Operating Groups. Purchasing fills requests for goods and services other than Capital Improvement Projects: e.g., printing, automobiles, office supplies, furniture, heavy equipment, copy machines, computers, chemicals, etc. 9

How we handle solicitations Purchasing determines the proper procurement approach for handling the request based on the item or service complexity, dollar value and market place competitiveness. A request for quotations (RFQ), request for proposal (RFP) or an invitation to bid (IFB) will be assembled. Request for information (RFI) may be issued in order for the District to gain more information on goods or services whose characteristics are not well defined. 10

How we handle solicitations Once the solicitation documents have been finalized, Purchasing searches for potential suppliers through our current vendor files, supplier application data base, and by references from other agencies. The solicitation is then sent to those suppliers either via mail, fax, or other means such as UPS. 11

How we handle solicitations Important! Note the due date for submitting your response. Late responses are usually not accepted and may bar your firm from receiving other District requests. Most solicitations contain a quote form which must be completed to evaluate your response. Please read the “Instruction” section of the solicitation package carefully. 12

How we handle solicitations Once the responses are returned to the District, they will be evaluated for accuracy, price and responsiveness to the solicitation requirements by a team of subject matter experts. In addition to item or service pricing, other value-added elements may be considered: 13

For example: record of prompt responsiveness and delivery of orders quality assurance program and documented product reliability enhanced or extended warranties offered projected item operating and maintenance costs experience in their respective industry; and, sustainability components used in their products 14

How we handle solicitations The subject matter experts will make a technical recommendation for award to Purchasing. All who submit responses will be notified as of the District’s award determination. Purchasing will then issue a Purchase Order or other form of agreement which completes the contract between the District and the Supplier. 15

How we handle solicitations Important! The District must have all required insurance documents on file before work commences. Time is of the essence in performance under the contract, once a contract has been awarded. Purchasing may source cooperative-type contracts first (State or other agencies have already established the “low bidder”). 16

Capital Improvement Projects (CIP) Any construction, reconstruction, alteration, enlargement, renewal, or replacement of sewer facilities which the District is authorized to do, including, but not limited to, the furnishing of materials for any such work (Article 52, §20801) California Public Contract Code. Handled separately from Purchasing by the District’s Engineering Department 17

Capital Improvement Projects (CIP) All CIP projects greater than $15, are solicited by a formal invitation for bids (IFB) and are publicly advertised. The District utilizes a third party website called “Construction Bid Board” for posting of these solicitations. A link can be found on the District’s web page or by going to Purchasing conducts the opening of all bids. The public is encouraged to attend. 18

Capital Improvement Projects (CIP) The evaluation of bids received for CIP Projects and award recommendations are generally handled the same as Purchasing with two exceptions. If the award is over $100,000, the District’s Board must approve it. A project number and Notice to Proceed are given in lieu of a Purchase Order. 19

Capital Improvement Projects (CIP) Information regarding CIP projects can be found by going to  Click on “Doing Business with USD”, then “USD Construction Projects Bid Board”. 20

How we pay you Payment terms = net 30 days. All invoices, with the exception of CIP projects, must reference a Purchase Order Number. Our PO’s are 5 digits beginning with the number “4”. Invoice quantity, unit price, and total price must match the Purchase Order to be processed in a timely manner. Checks are cut on Thursday each week. 21

How we pay you Invoices are processed in accordance with the PO terms. To avoid delays, ensure you have a Purchase Order number before you ship or provide any services. Verbal orders are not accepted. Freight terms are FOB, destination. If freight charges are required we ask that you prepay them and charge us on your invoice. Do not have the carrier bill us directly. 22

Questions? Contact: Kathy Martin, Buyer Phone no John Stiggins, Purchasing Agent Phone no