PAP.2.5.030 Method Specifications

(a) Purchases that are Less than $3,000:

(1) For purchase of less than three thousand dollars ($3,000), the TGB shall set the guideline allowing the tribe the ability to purchase without soliciting competitive quotations if the CPO or designee considers the price to be reasonable.

(2) A Requisition Request must be used for all purchases less than three thousand dollars ($3,000). The CPO or designee must determine reasonableness based on prior purchase of a similar nature or other source of information. When the purchase order is signed, it signifies that the cost has been determined to be reasonable.

(3) For purchase of less than three thousand dollars ($3,000), only one bid is required, provided it is determined to be reasonable. Estimates may be based upon recent purchases of similar items, obtained from catalogs, the internet, emails, fax or verbally but must be documented. If the purchase is made for reasons other than price, the file must clearly describe the reason for the purchase. Under no circumstances will a purchase be broken down into more than one action in order to meet the less than three thousand dollars ($3,000) purchase threshold. The purchase must be documented by the CPO or designee.

(b) Requisition Purchase:

(1) Requisition Purchase Procurement: For purchases of three thousand and one dollars ($3,001) but less than one hundred and fifty thousand ($150,000) dollars, also known as Requisition Purchases, supporting documentation documenting at least three price quotations is required. Under no circumstance may a purchase be broken down into more than one action in order to meet the Requisition Purchase threshold. The Requisition Purchase must be documented by an authorized Requisition Form. During the Requisition sign off review the CPO may request additional quotes. The CPO at their discretion may audit any purchase by requesting additional quotes.

(2) Purchases utilizing the Requisition Request form shall be restricted to staff designated by the CPO or his/her designee.

(A) All purchases/acquisitions exceeding $3,000 must utilize the Requisition Request form which shall be reviewed by the Tribal Legal Department upon the discretion of the CPO or CPO Representative.

(B) Procurement activities for HUD housing projects should be coordinated with the performance objectives described in the Tribe's Indian Housing Plan (IHP) to assure efficient and economical purchasing.

(C) Contracts and modifications shall be in writing, clearly specifying the desired supplies, services, or construction, and are supported by sufficient documentation regarding the history of the procurement, including, at a minimum, the method of procurement chosen, the selection of the contract type, the rationale for selecting or rejecting offers, and the basis for the contract price.

(D) For procurement other than small purchases, a minimum of thirty (30) days for major construction contracts and fifteen (15) days for other contract types are provided for the preparation and submission of bids or proposals.

(E) Solicitation procedures are conducted in full compliance with federal standards including the Indian preference requirements.

(F) An independent cost estimate is prepared before solicitation issuance and is appropriately safeguarded for each procurement above the small purchase limitation; and a cost or price analysis shall be conducted for each of the responses received for all procurement.

(G) A Contract award shall be made to the responsive and responsible bidder offering the lowest price, consistent with Indian preference requirements; or contract award is made to the offeror whose proposal offers the greatest value to the Tribe, considering price, technical qualifications, and other factors as specified in the solicitation, including Indian preference; unsuccessful firms are notified within ten days after contract award.

(H) There are sufficient unencumbered funds available to cover the anticipated cost of each procurement before contract award or modification (including change orders); work is inspected before payment; and payment is made promptly for contract work performed and accepted.

(I) Effective contract administration is performed.

(J) Effective monitoring of contractor's performance is conducted.

(c) Purchase Order:

(1) Any Purchase Procurement valued at three thousand and one dollars ($3,001) up to the small purchase threshold may be conducted in accordance with the Purchase Order purchase procedures authorized in this section. Contract requirements shall not be artificially divided so as to constitute a purchase order under this section.

(A) Obtaining Quotes. The Department wishing to make the procurement shall solicit price quotations by phone, letter or other informal procedures that allows participants by reasonable number of competitive sources. When soliciting quotations the Department shall inform the sources solicited of the specific item being procured, the time by which quotations must be submitted, and the information required to be submitted with each quotation. The Department shall obtain written quotation such as a letter or email; however the written quotation may be a confirmation of a previous oral quotation only if it is submitted within ten (10) days of the oral quotation or by the date for submitting quotation. The names, addresses, and/or telephone numbers of the offerors and person contacted, and the date and amount of each quotation shall be recorded and maintained as a public record.

(B) Competition. The Department wishing to make the procurement shall attempt to obtain quotations from a minimum of three qualified sources and document the procurement file with a justification whenever it has been unable to obtain at least three quotations. Solicitation of fewer than three sources is acceptable only if the Department has attempted but has been unable to obtain a sufficient number of quotations. The sole quotation received may be accepted only in unusual circumstances (such as an emergency, threatening public health and safety) and must be certified and documented as such by the CPO

(C) Award.

(i) Award based on price. For purchases awarded based on price and fixed specifications (i.e., not subject to negotiation) the Tribe shall make an award to the qualified Indian, Indian Organization or Indian-Owned economic enterprise when the quotation received is within 15% of the lowest responsive quotation from any qualified source, then award shall be made to the source with the lowest responsive quotation from any qualified source, then award shall be made to the source with the lowest quotation.

(ii) Award based on Factors other than price. For purchases to be awarded based on factors other than price, formal solicitation (request for proposals or request for quotations) shall be issued, including evaluation factors and a rating system to evaluate each proposal or quotation. The solicitation shall identify all evaluation factors, including cost or price. The solicitation shall reserve 15% of the total evaluation points for providing Indian preference. Award shall be made to the best proposal or quotation in accordance with the state rating system.

(D) Soliciting Proposals. For the purpose of soliciting written proposals for small purchases under the $150,000 threshold, one or more of the following methods may be used:

(i) Advertisement placed in a newspaper and/or newsletter of general circulation;

(ii) A written notice to potential vendors by CPO and/or TGB;

(iii) Telephone or fax contact; or

(iv) E-mail and/or Internet postings.

(2) All purchase order procurement shall be processed in accordance with procedures issued by the CPO pursuant to Section PAP.2.1.020.